Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-39162 | ||
Entity Registrant Name | ARCONIC CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-2745636 | ||
Entity Address, Address Line One | 201 Isabella Street | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15212-5872 | ||
City Area Code | 412 | ||
Local Phone Number | 992-2500 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ARNC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.9 | ||
Entity Common Stock, Shares Outstanding | 105,024,907 | ||
Documents Incorporated by Reference [Text Block] | Part III of this Form 10-K incorporates by reference certain information from the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A (2022 Proxy Statement). | ||
Entity Central Index Key | 0001790982 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Auditor Firm ID | 238 |
Statement of Consolidated Opera
Statement of Consolidated Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total sales | $ 7,504 | $ 5,675 | $ 7,277 |
Cost of goods sold (exclusive of expenses below) | 6,573 | 4,862 | 6,332 |
Selling, general administrative, and other expenses | 247 | 258 | 346 |
Research and development expenses | 34 | 36 | 45 |
Provision for depreciation and amortization | 253 | 251 | 252 |
Goodwill and Intangible Asset Impairment | 65 | 0 | 0 |
Restructuring and other charges | 624 | 188 | 87 |
Operating (loss) income | (292) | 80 | 215 |
Interest expense | 100 | 118 | 115 |
Other expenses (income), net | 67 | 70 | (15) |
(Loss) Income before income taxes | (459) | (108) | 115 |
(Benefit) Provision for income taxes | (62) | 1 | (62) |
Net (loss) income | (397) | (109) | 177 |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 |
Net (loss) income attributable to Arconic Corporation | $ (397) | $ (109) | $ 177 |
Earnings Per Share Attributable to Arconic Corporation Common Stockholders | |||
Basic (in dollars per share) | $ (3.65) | $ (1) | $ 1.63 |
Diluted (in dollars per share) | $ (3.65) | $ (1) | $ 1.63 |
Sales | |||
Total sales | $ 7,504 | $ 5,675 | $ 7,277 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net (loss) income | $ (397) | $ (109) | $ 177 |
Other comprehensive income, net of tax | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 670 | 54 | (11) |
Foreign currency translation adjustments | (4) | 87 | 56 |
Net change in unrecognized losses on cash flow hedges | (16) | 5 | |
Total Other comprehensive income, net of tax | 650 | 146 | 45 |
Comprehensive income | 253 | 37 | 222 |
Arconic Corporation | |||
Net (loss) income | (397) | (109) | 177 |
Other comprehensive income, net of tax | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 670 | 54 | (11) |
Foreign currency translation adjustments | (4) | 87 | 56 |
Net change in unrecognized losses on cash flow hedges | (16) | 5 | |
Total Other comprehensive income, net of tax | 650 | 146 | 45 |
Comprehensive income | 253 | 37 | 222 |
Noncontrolling interest | |||
Net (loss) income | 0 | 0 | 0 |
Other comprehensive income, net of tax | |||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 0 | 0 | 0 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Net change in unrecognized losses on cash flow hedges | 0 | ||
Total Other comprehensive income, net of tax | 0 | 0 | 0 |
Comprehensive income | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 335 | $ 787 |
Receivables from customers, less allowances of $1 in both 2021 and 2020 | 922 | 631 |
Other receivables | 226 | 128 |
Inventories | 1,630 | 1,043 |
Prepaid expenses and other current assets | 55 | 53 |
Total current assets | 3,168 | 2,642 |
Properties, plants, and equipment, net | 2,651 | 2,712 |
Goodwill | 322 | 390 |
Operating lease right-of-use assets | 122 | 144 |
Deferred income taxes | 229 | 329 |
Other noncurrent assets | 88 | 97 |
Total assets | 6,580 | 6,314 |
Current liabilities: | ||
Accounts payable, trade | 1,718 | 1,106 |
Accrued compensation and retirement costs | 116 | 118 |
Taxes, including income taxes | 61 | 33 |
Environmental remediation | 15 | 90 |
Operating lease liabilities | 35 | 36 |
Other current liabilities | 118 | 90 |
Total current liabilities | 2,063 | 1,473 |
Long-term debt | 1,594 | 1,278 |
Accrued pension benefits | 717 | 1,343 |
Accrued other postretirement benefits | 411 | 479 |
Environmental remediation | 49 | 66 |
Operating lease liabilities | 90 | 111 |
Deferred income taxes | 12 | 15 |
Other noncurrent liabilities | 85 | 102 |
Total liabilities | 5,021 | 4,867 |
Contingencies and commitments | ||
Arconic Corporation stockholders’ equity: | ||
Common stock | 1 | 1 |
Additional capital | 3,368 | 3,348 |
Accumulated deficit | (552) | (155) |
Accumulated other comprehensive loss | (1,111) | (1,761) |
Total Arconic Corporation stockholders’ equity | 1,545 | 1,433 |
Noncontrolling interest | 14 | 14 |
Total equity | 1,559 | 1,447 |
Total liabilities and equity | 6,580 | 6,314 |
Treasury Stock, Value | $ (161) | $ 0 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) $ in Millions | Dec. 31, 2021USD ($) |
Statement of Financial Position [Abstract] | |
Accounts receivable, allowances | $ 1 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net (loss) income | $ (397) | $ (109) | $ 177 |
Adjustments to reconcile net (loss) income to cash (used for) provided from operations: | |||
Depreciation and amortization | 253 | 251 | 252 |
Goodwill, Impairment Loss | 65 | 0 | 0 |
Deferred income taxes | (100) | (16) | (81) |
Restructuring and other charges | 624 | 188 | 87 |
Net periodic pension benefit cost | 68 | 82 | 5 |
Stock-based compensation | 22 | 23 | 40 |
Amortization of debt issuance costs | 0 | 25 | 0 |
Other | 21 | (1) | 10 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | |||
(Increase) Decrease in receivables | (381) | (235) | 2 |
(Increase) Decrease in inventories | (596) | 65 | 57 |
(Increase) Decrease in prepaid expenses and other current assets | (1) | (16) | 10 |
Increase (Decrease) in accounts payable, trade | 581 | 82 | (100) |
(Decrease) in accrued expenses | (129) | (217) | (67) |
Increase in taxes, including income taxes | 21 | 99 | 41 |
Pension contributions | (458) | (271) | (3) |
(Increase) Decrease in noncurrent assets | (8) | 35 | 5 |
Increase in noncurrent liabilities | 8 | 21 | 22 |
Cash (used for) provided from operations | (407) | 6 | 457 |
Financing Activities | |||
Net transfers from (to) former parent company | 0 | 216 | (296) |
Separation payment to former parent company | (728) | 0 | |
Additions to debt (original maturities greater than three months) | 319 | 2,400 | 0 |
Debt issuance costs | (5) | (57) | 0 |
Payments on debt (original maturities greater than three months) | 0 | (1,100) | 0 |
Other | (18) | 13 | 1 |
Cash provided from (used for) financing activities | 135 | 744 | (295) |
Investing Activities | |||
Capital expenditures | (184) | (163) | (201) |
Proceeds from the sale of assets and businesses | (1) | (125) | (31) |
Payments for (Proceeds from) Other Investing Activities | 4 | 0 | 0 |
Cash used for investing activities | (181) | (38) | (170) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1 | 3 | (1) |
Net change in cash and cash equivalents and restricted cash | (452) | 715 | (9) |
Cash and cash equivalents and restricted cash at beginning of year | 787 | 72 | 81 |
Cash and cash equivalents and restricted cash at end of year | 335 | 787 | 72 |
Payments for Repurchase of Common Stock | $ (161) | $ 0 | $ 0 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Common stock | Adoption of accounting standard | Parent Company net investment | Parent Company net investmentAdoption of accounting standard | Common stock | Additional capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling interest | Treasury Stock |
Balance at beginning of period at Dec. 31, 2018 | $ 2,969 | $ 73 | $ 2,707 | $ 73 | $ 0 | $ 0 | $ 0 | $ 250 | $ 12 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net (loss) income | 177 | 177 | 0 | ||||||||
Other comprehensive (loss) income (L) | 45 | 45 | 0 | ||||||||
Balance at end of period at Dec. 31, 2019 | 2,973 | $ 73 | 2,664 | 0 | 0 | 0 | 295 | 14 | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stockholders' Equity Note, Spinoff Transaction | (294) | (294) | |||||||||
Other | (3) | (1) | (2) | ||||||||
Net (loss) income | (109) | 46 | (155) | 0 | |||||||
Other comprehensive (loss) income (L) | 146 | 146 | 0 | ||||||||
Establishment of additional defined benefit plans | (1,403) | 349 | (1,752) | ||||||||
Separation payment to former parent company | (728) | (728) | |||||||||
Separation-related adjustments | 336 | (2,548) | 3,334 | (450) | |||||||
Stock Issued During Period, Shares, New Issues | 109,021,376 | ||||||||||
Issuance of common stock | 0 | (1) | (1) | ||||||||
Stock-based compensation | 15 | 15 | |||||||||
Balance at end of period at Dec. 31, 2020 | 1,447 | 0 | 1 | 3,348 | (155) | (1,761) | 14 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stockholders' Equity Note, Spinoff Transaction | $ 217 | 217 | |||||||||
Common stock, shares outstanding | 109,205,226 | 109,205,226 | |||||||||
Net (loss) income | $ (397) | (397) | 0 | ||||||||
Other comprehensive (loss) income (L) | 650 | 650 | 0 | ||||||||
Treasury Stock, Shares, Acquired | 4,912,505 | ||||||||||
Shares of common stock issued under employee stock-based compensation plan | 1,034,164 | ||||||||||
Stock-based compensation | 22 | 22 | |||||||||
Balance at end of period at Dec. 31, 2021 | 1,559 | $ 0 | $ 1 | 3,368 | $ (552) | $ (1,111) | $ 14 | (161) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Treasury Stock, Value, Acquired, Cost Method | (161) | $ 161 | |||||||||
Other | $ (2) | $ (2) | |||||||||
Common stock, shares outstanding | 105,326,885 | 105,326,885 |
The Separation and Basis of Pre
The Separation and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Separation and Basis of Presentation | The Separation and Basis of Presentation Arconic Corporation (“Arconic” or the “Company”) is a manufacturer of fabricated aluminum products, including sheet and plate, extrusions, and architectural products and systems, with a primary focus on the ground transportation, aerospace, building and construction, industrial products, and packaging end markets. The Company has 21 primary operating locations in 8 countries around the world, situated in the United States, Canada, China, France, Germany, Hungary, Russia, and the United Kingdom. References in these Notes to (i) “ParentCo” refer to Arconic Inc., a Delaware corporation, and its consolidated subsidiaries (through March 31, 2020, at which time it was renamed Howmet Aerospace Inc.), and (ii) “2016 Separation Transaction” refer to the November 1, 2016 separation of Alcoa Inc., a Pennsylvania corporation, into two standalone, publicly-traded companies, Arconic Inc. and Alcoa Corporation. Coronavirus. Our operations and financial results have been, and may continue to be, adversely affected by the coronavirus (COVID-19) pandemic. As a result of the COVID-19 pandemic, several of our automotive and aerospace customers temporarily suspended operations at different points throughout 2020. While many of our customers have resumed operations as it relates to the COVID-19 pandemic, we are unable to estimate with certainty at this time the status, frequency, or duration of any potential reoccurrences of customer shutdowns, or the duration or extent of resumed operations. Due to the impacts of the COVID-19 pandemic on our customers, we are experiencing, and expect to continue experiencing, lower demand and volume for our products. These trends may lead to charges, impairments, and other adverse financial impacts over time, including but not limited to the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. The impact on our business, results of operations, financial condition, liquidity, and/or cash flows will be magnified if the disruption from the COVID-19 pandemic continues for an extended period. As a result, Arconic implemented several measures starting in April 2020 to mitigate the impacts of the COVID-19 pandemic on the Company’s business, results of operations, financial condition, liquidity, and cash flows: • deferred initiating a dividend on common stock; • reduced the CEO’s salary and the Board of Directors’ cash compensation by 30% (see below); • reduced salaries for senior-level management by 20% and for all other salaried employees by 10% (see below); • restructuring of the salaried workforce, reduction of 10%; • idling of various production facilities based on market conditions within the regions where the Company operates; • decreasing production and operating with a reduced labor force through shortened work weeks, shift reductions, layoffs, and the elimination of temporary workers and contractors at U.S.-based rolling and extrusion facilities; • implementing a combination of modified schedules, adjusted work hours, lower costs, and/or delayed raises at all rolling mill facilities in Europe, China, and Russia; • suspended the 401(k) match program for U.S. salaried employees (see below); and • reducing capital expenditures by approximately $50, or approximately 30%. Effective September 1, 2020, the Company restored both the salaries of all salaried employees and the 401(k) match of all salaried U.S. employees, including executive officers, to the levels in effect prior to the actions described above. Also effective September 1, 2020, the Company restored the annual cash retainers payable to the non-employee members of the Company’s Board of Directors to the levels in effect prior to the previous reduction described above. The Separation. On February 8, 2019, ParentCo announced that its Board of Directors approved a plan to separate into two standalone, publicly-traded companies (the “Separation”). The spin-off company, later named Arconic Corporation, was to include the rolled aluminum products, aluminum extrusions, and architectural products operations of ParentCo, as well as the Latin America extrusions operations sold in April 2018, (collectively, the “Arconic Corporation Businesses”). The existing publicly traded company, ParentCo, was to continue to own the engine products, engineered structures, fastening systems, and forged wheels operations (collectively, the “Howmet Aerospace Businesses”). The Separation was subject to a number of conditions, including, but not limited to: final approval by ParentCo’s Board of Directors (see below); receipt of an opinion of legal counsel (received on March 31, 2020) regarding the qualification of the distribution, together with certain related transactions, as a “reorganization” within the meaning of Sections 335 and 368(a)(1)(D) of the U.S. Internal Revenue Code (i.e., a transaction that is generally tax-free for U.S. federal income tax purposes); and the U.S. Securities and Exchange Commission (the “SEC”) declaring effective a Registration Statement on Form 10, as amended, filed with the SEC on February 13, 2020 (effectiveness was declared by the SEC on February 13, 2020). On February 5, 2020, ParentCo’s Board of Directors approved the completion of the Separation by means of a pro rata distribution by ParentCo of all of the outstanding shares of common stock of Arconic to ParentCo common stockholders of record as of the close of business on March 19, 2020 (the “Record Date”). At the time of the Separation, ParentCo common stockholders were to receive one share of Arconic common stock for every four shares of ParentCo common stock (the “Separation Ratio”) held as of the Record Date (ParentCo common stockholders were to receive cash in lieu of fractional shares). In connection with the Separation, as of March 31, 2020, Arconic and Howmet Aerospace entered into several agreements to implement the legal and structural separation between the two companies; govern the relationship between Arconic and Howmet Aerospace after the completion of the Separation; and allocate between Arconic and Howmet Aerospace various assets, liabilities, and obligations, including, among other things, employee benefits, environmental liabilities, intellectual property, and tax-related assets and liabilities. These agreements included a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, and certain Patent, Know-How, Trade Secret License and Trademark License Agreements. The Separation and Distribution Agreement identified the assets to be transferred, the liabilities to be assumed, and the contracts to be transferred to each of Arconic and Howmet Aerospace as part of the Separation, and provided for when and how these transfers and assumptions were to occur. On April 1, 2020 (the “Separation Date”), the Separation was completed and became effective at 12:01 a.m. Eastern Daylight Time. To effect the Separation, ParentCo undertook a series of transactions to separate the net assets and certain legal entities of ParentCo, resulting in a cash payment of $728 to ParentCo by Arconic from a portion of the aggregate net proceeds of previously executed financing arrangements (see Note Q ). In connection with the Separation, 109,021,376 shares of Arconic common stock were distributed to ParentCo stockholders. This was determined by applying the Separation Ratio to the 436,085,504 shares of ParentCo’s outstanding common stock as of the Record Date. “Regular-way” trading of Arconic’s common stock began with the opening of the New York Stock Exchange on April 1, 2020 under the ticker symbol “ARNC.” Arconic’s common stock has a par value of $0.01 per share. ParentCo incurred costs to evaluate, plan, and execute the Separation, and Arconic was allocated a pro rata portion of these costs based on segment revenue (see Cost Allocations below). ParentCo recognized $38 from January 2020 through March 2020 and $78 in 2019 for such costs, of which $18 and $40, respectively, was allocated to Arconic. The allocated amounts were included in Selling, general administrative, and other expenses on the accompanying Statement of Consolidated Operations. Basis of Presentation. The Consolidated Financial Statements of Arconic are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates upon subsequent resolution of identified matters. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations related to the COVID-19 pandemic. Management has made its best estimates using all relevant information available at the time, but it is possible that these estimates will differ from actual results and affect the Consolidated Financial Statements in future periods and potentially require adverse adjustments to the recoverability of goodwill and long-lived assets, the realizability of deferred tax assets and other judgments and estimations and assumptions that may be impacted by the COVID-19 pandemic. Principles of Consolidation. The Consolidated Financial Statements of Arconic include the accounts of Arconic and companies in which Arconic has a controlling interest. Intercompany transactions have been eliminated. Management evaluates whether an Arconic entity or interest is a variable interest entity and whether Arconic is the primary beneficiary. Consolidation is required if both of these criteria are met. Arconic does not have any variable interest entities requiring consolidation. Prior to the Separation Date, Arconic did not operate as a separate, standalone entity. Arconic’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if the Arconic Corporation Businesses had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise the Arconic Corporation Businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Arconic. ParentCo’s net investment in these operations was reflected as Parent Company net investment on the accompanying Consolidated Financial Statements. All significant transactions and accounts within Arconic were eliminated. All significant intercompany transactions between ParentCo and Arconic were included within Parent Company net investment on the accompanying Consolidated Financial Statements. Cost Allocations. The description and information on cost allocations is applicable for all periods included in the Consolidated Financial Statements prior to the Separation Date. The Consolidated Financial Statements of Arconic include general corporate expenses of ParentCo that were not historically charged to the Arconic Corporation Businesses for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. These general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Arconic on the basis of direct usage when identifiable, with the remainder allocated based on the Arconic Corporation Businesses’ segment revenue as a percentage of ParentCo’s total segment revenue, as reported in the respective periods. All external debt not directly attributable to Arconic was excluded from the accompanying Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Arconic based on the ratio of capital invested by ParentCo in the Arconic Corporation Businesses to the total capital invested by ParentCo in both the Arconic Corporation Businesses and the Howmet Aerospace Businesses, and were included on the accompanying Statement of Consolidated Operations within Interest expense. The following table reflects the allocations described above: 2020 2019 Cost of goods sold (1) $ — $ 14 Selling, general administrative, and other expenses (2) 25 115 Research and development expenses — 11 Provision for depreciation and amortization 1 10 Restructuring and other charges ( E ) 2 7 Interest expense ( F ) 28 115 Other (income), net (5) (6) _________________ (1) For all periods presented, amount principally relates to an allocation of expenses for ParentCo’s retained pension and other postretirement benefit obligations associated with closed and sold operations. (2) In 2020 (January through March) and 2019, amount includes an allocation of $18 and $40, respectively, for costs incurred by ParentCo associated with the Separation (see above). Management believes the assumptions regarding the allocation of ParentCo’s general corporate expenses and financing costs were reasonable. Nevertheless, the Consolidated Financial Statements of Arconic may not include all of the actual expenses that would have been incurred and may not reflect Arconic’s consolidated results of operations, financial position, and cash flows had it been a standalone company during the periods prior to the Separation Date. Actual costs that would have been incurred if Arconic had been a standalone company would depend on multiple factors, including organizational structure, capital structure, and strategic decisions made in various areas, including information technology and infrastructure. Transactions between Arconic and ParentCo, including sales to the Howmet Aerospace Businesses, were presented as related party transactions in these Consolidated Financial Statements and were considered to be effectively settled for cash at the time the transaction was recorded. The total net effect of the settlement of these transactions was reflected on the accompanying Statement of Consolidated Cash Flows as a financing activity and on the accompanying Consolidated Balance Sheet as Parent Company net investment. Cash Management. The description and information on cash management is applicable for all periods included in the Consolidated Financial Statements prior to the Separation Date. Cash was managed centrally with certain net earnings reinvested locally and working capital requirements met from existing liquid funds. Accordingly, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Arconic for any of the periods presented prior to the Separation Date. Only cash amounts specifically attributable to Arconic were reflected in the accompanying Consolidated Balance Sheet. Transfers of cash, both to and from ParentCo’s centralized cash management system, were reflected as a component of Parent Company net investment on the accompanying Consolidated Balance Sheet and as a financing activity on the accompanying Statement of Consolidated Cash Flows. ParentCo had an arrangement with several financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables was completed through the use of a bankruptcy-remote special-purpose entity, which was a consolidated subsidiary of ParentCo. In connection with this arrangement, in all periods prior to January 1, 2020, certain of Arconic’s customer receivables were sold on a revolving basis to this bankruptcy-remote subsidiary of ParentCo; these sales were reflected as a component of Parent Company net investment on Arconic’s Consolidated Balance Sheet. As of December 31, 2019, the amount of Arconic’s outstanding customer receivables sold to ParentCo’s subsidiary was $281. Effective January 2, 2020, in preparation for the Separation, ParentCo’s arrangement was amended to no longer include customer receivables associated with the Arconic Corporation Businesses, as well as to remove previously included customer receivables related to the Arconic Corporation Businesses not yet collected as of January 2, 2020. Accordingly, uncollected customer receivables of $281 related to the Arconic Corporation Businesses were removed from the program and the right to collect and receive the cash from the customer was returned to Arconic. ParentCo participated in several accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provided that, at the vendor’s request, the third-party intermediary advance the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date and ParentCo make payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. In connection with these arrangements, certain of Arconic’s accounts payable were settled, at the vendor’s request, before the scheduled payment date; these settlements were reflected as a component of Parent Company net investment on Arconic’s Consolidated Balance Sheet. As of December 31, 2019, the amount of Arconic’s accounts payables settled under such arrangements that had yet to be extinguished between ParentCo and third-party intermediaries was $1. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. For all periods prior to the Separation Date, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Arconic. Only cash amounts specifically attributable to Arconic were reflected on the Company's Consolidated Financial Statements. Inventory Valuation. Inventories are carried at the lower of cost and net realizable value, with cost for most inventories determined under the average cost method. The cost of certain non-U.S. inventories is determined under the first in, first out (FIFO) method. Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Also, interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded on the straight-line method at rates based on the estimated useful lives of the assets. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery Rolled Products 33 22 Building and Construction Systems 25 18 Extrusions 32 20 Repairs and maintenance are charged to expense as incurred. Generally, gains or losses from the sale of asset groups are recorded in Restructuring and other charges while gains and losses from the sale of individual assets are recorded in Other expenses (income), net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the related operations (asset group) to the carrying value of the associated assets. An impairment loss would be recognized when the carrying value of the assets exceeds the estimated undiscounted net cash flows of the asset group. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of the assets also require significant judgments. Goodwill. Goodwill is not amortized; it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell, exit, or realign a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods. The fair value that could be realized in an actual transaction may differ from that used to evaluate goodwill for impairment. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Arconic has three reporting units—the Rolled Products segment, the Building and Construction Systems segment, and the Extrusions segment—all of which contained goodwill at the time of the Company’s annual 2021 review of goodwill for impairment. Immediately preceding this review, the carrying value of goodwill for Rolled Products, Building and Construction Systems, and Extrusions was $254, $70, and $65, respectively. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Arconic determines annually, based on facts and circumstances, which of its reporting units will be subject to the qualitative assessment. For those reporting units where a qualitative assessment is either not performed or for which the conclusion is that an impairment is more likely than not, a quantitative impairment test will be performed. Arconic’s policy is that a quantitative impairment test be performed for each reporting unit at least once during every three-year period. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. Under the quantitative impairment test, the evaluation of the recoverability of goodwill involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Arconic uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. Several significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales growth (volumes and pricing), production costs, capital spending, working capital levels, and discount rate. Certain of these assumptions may vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The WACC rate for the individual reporting units is estimated by management with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, Arconic would recognize an impairment charge equal to the excess of the reporting unit’s carrying value over its fair value without exceeding the total amount of goodwill applicable to that reporting unit. During the 2021 annual review of goodwill for impairment, management proceeded directly to the quantitative impairment test for all three of the Company’s reporting units. The result of this review indicated the estimated fair value for both the Rolled Products and Building and Construction Systems reporting units was substantially in excess of the respective carrying value, resulting in no impairment. Conversely, the estimated fair value for the Extrusions reporting unit was lower than the associated carrying value by an amount greater than the carrying value of the Extrusions reporting unit’s goodwill. Accordingly, Arconic recorded an impairment charge of $65 in the fourth quarter of 2021. As a result, the Extrusions reporting unit no longer contains any goodwill. The impairment of the Extrusion reporting unit’s goodwill resulted from a combination of market-based factors, including continued delays in aerospace market improvement, the expectation that significant cost inflation will extend beyond 2021 resulting in increasingly limited ability for management to drive margin expansion, and a longer than previously anticipated shift in product mix to lower margin industrial products to replace most of the lost aerospace volume. Further, current market factors also resulted in a 150-basis point increase in the WACC compared to the fourth quarter of 2020. Accordingly, given the factors noted above, the estimated fair value of the Extrusions reporting unit was less than the carrying value resulting in a full impairment of its goodwill. The annual review in 2020 and 2019 indicated that goodwill was not impaired for any of Arconic’s reporting units and there were no triggering events since that time that necessitated an interim quantitative impairment test for any of the Company’s reporting units. That said, in light of the economic impact of the COVID-19 pandemic (i.e., stock market volatility, customer demand disruption, etc.), the Company did perform periodic qualitative assessments throughout 2020 in which management concluded that no impairment existed and, therefore, no further analysis was required. Other Intangible Assets. Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other Rolled Products 7 15 Building and Construction Systems 4 20 Extrusions 4 10 Leases. Arconic determines whether a contract contains a lease at inception. The Company leases certain land and buildings, plant equipment, vehicles, and computer equipment, which have been classified as operating leases. Certain real estate leases include one or more options to renew; the exercise of lease renewal options is at the Company’s discretion. Arconic includes renewal option periods in the lease term when it is determined that the options are reasonably certain to be exercised. Certain of the Company’s real estate lease agreements include rental payments that either have fixed contractual increases over time or adjust periodically for inflation. Also, certain of the Company’s lease agreements include variable lease payments. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and is recorded as lease cost in the period incurred. Operating lease right-of-use assets and lease liabilities with an initial term greater than 12 months are recorded on the balance sheet at the present value of the future minimum lease payments over the lease term calculated at the lease commencement date and are recognized as lease expense on a straight-line basis over the lease term. Arconic uses an incremental collateralized borrowing rate based on the information available at the lease commencement date in determining the present value of future payments, as most of the Company’s leases do not provide an implicit rate. The operating lease right-of-use assets also include any lease prepayments made and are reduced by lease incentives and accrued exit costs. Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery, which are recognized when probable and as agreements are reached with third parties. The estimates may also include costs related to other potentially responsible parties to the extent that Arconic has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as, among others, the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters. Once an unfavorable outcome is deemed probable, management weighs the probability of estimated losses, and the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed to be reasonably possible, the matter is disclosed and no liability is recorded. With respect to unasserted claims or assessments, management must first determine the probability an assertion will be made is likely; then a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Revenue Recognition. Arconic’s contracts with customers are comprised of acknowledged purchase orders incorporating the Company’s standard terms and conditions, or for larger customers, may also generally include terms under negotiated multi-year agreements. These customer contracts typically consist of the manufacture of products, which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. Arconic produces aluminum sheet and plate; extruded and machined parts; integrated aluminum architectural systems; and architectural extrusions. Transfer of control is assessed based on alternative use of the products produced and Arconic’s enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership, and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). In certain circumstances, Arconic receives advanced payments from its customers for product to be delivered in future periods. These advanced payments are recorded as deferred revenue until the product is delivered and title and risk of loss have passed to the customer in accordance with the terms of the contract. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities on the Consolidated Balance Sheet. Pension and Other Postretirement Benefits. For all periods prior to January 1, 2020 (see below), certain employees attributable to the Arconic Corporation Businesses participated in defined benefit pension and other postretirement benefit plans sponsored by ParentCo (the “Shared Plans”), which also included participants attributable to non-Arconic Corporation Businesses. Arconic accounted for the portion of the Shared Plans related to its employees as multiemployer benefit plans. Accordingly, Arconic did not record an asset or liability to recognize any portion of the funded status of the Shared Plans. However, the related expense recorded by the Company was based primarily on pensionable compensation and estimated interest costs related to participants attributable to the Arconic Corporation Businesses. Prior to the Separation Date, certain other ParentCo plans that were entirely attributable to employees of the Arconic Corporation Businesses (“Direct Plans”) were accounted for as defined benefit pension and other postretirement benefit plans. Accordingly, the funded and unfunded position of each Direct Plan was recorded in the Consolidated Balance Sheet. Actuarial gains and losses that have not yet been recognized in earnings were recorded in accumulated other comprehensive income, net of taxes, until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to the Direct Plans is dependent on various assumptions, including discount rates, long-term expected rates of return on plan assets, and future compensation increases. ParentCo’s management developed each assumption using relevant company experience in conjunction with market-related data for each individual location in which such plans exist. In preparation for the Separation, effective January 1, 2020, certain of the Shared Plans were separated into standalone plans for both Arconic (“New Direct Plans”) and ParentCo (see Note H ). Additionally, effective April 1, 2020, certain of the other remaining Shared Plans were assumed by Arconic (“Additional New Direct Plans”) (See Note H ). Accordingly, beginning on the respective effective dates, the New Direct Plans and the Additional New Direct Plans are accounted for as defined benefit pension and other postretirement plans. Additionally, the Direct Plans continue to be accounted for as defined benefit pension and other postretirement plans. Stock-Based Compensation. For all periods prior to the Separation Date, eligible employees attributable to the Arconic Corporation Businesses participated in ParentCo’s stock-based compensation plan. The compensation expense recorded by Arconic included the expense associated with these employees, as well as the expense associated with an allocation of stock-based compensation expense for ParentCo’s corporate employees (see Cost Allocations in Note A ). For all periods after the Separation Date, Arconic recorded stock-based compensation expense for all of the Company's employees eligible to participate in Arconic’s stock-based compensation plan. The following describes the manner in which stock-based compensation expense was initially determined for both Arconic and ParentCo. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. The fair value of stock options is estimated on the date of grant using a lattice-pricing model. The fair value of performance stock units containing a market condition is valued using a Monte Carlo valuation model. Determining the fair value at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Arconic’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. For all periods prior to the Separation Date, the Arconic Corporation Businesses were included in the income tax filings of ParentCo. The provision for income taxes was determined in the same manner described above, but on a on a separate return methodology as if Arconic was a standalone taxpayer filing hypothetical income tax returns where applicable. Any additional accrued tax liability or refund arising as a result of this approach was assumed to be immediately settled with ParentCo as a component of Parent Company net investment. Deferred taxes were also determined in the same manner described above and were reflected in the Consolidated Balance Sheet for net operating losses, credits or other attributes to the extent that such attributes were expected to transfer to Arconic upon the Separation. Any difference from attributes generated in a hypothetical return on a separate return basis was adjusted as a component of Parent Company net investment. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Arconic’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the grant and lapse of tax holidays. Arconic applies a tax law ordering approach when considering the need for a valuation allowance on net operating losses expected to offset Global Intangible Low Taxed Income (GILTI) income inclusions. Under this approach, reductions in cash tax savings are not considered as part of the valuation allowance assessment. Instead, future GILTI inclusions are considered a source of taxable income that support the realizability of deferred tax assets. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed its examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Foreign Currency. The local currency is the functional currency for Arconic’s significant operations outside the United States, except for operations in Russia, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Arconic’s operations is made based on the appropriate economic and management indicators. Recently Adopted Accounting Guidance. On January 1, 2021, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to accounting for income taxes. The FASB issued this guidance to simplify various aspects related to the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. These changes include the removal of certain exceptions and the simplification of several provisions, including: requiring an entity to recognize tax that is partially based on income, such as franchise tax, as income-based tax and account for additional amounts incurred as non-income based tax; requiring an entity to evaluate when a step up in tax basis of goodwill should be considered part of the original business combination or a separate transaction; and requiring an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. The Company will need to continue to consider this guidance in future periods. On January 1, 2020, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to credit losses. This guidance added a new impairment model (known as the current expected credit loss (CECL) model), which is based on expected losses rather than incurred losses. Under this model, an entity is required to recognize an allowance equivalent to its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. This model does not have a minimum threshold for recognition of impairment losses and requires the measurement of expected credit losses on assets that have a low risk of loss. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. This guidance will need to be considered in future assessments of credit losses. Effective December 31, 2020, Arconic adopted changes issued by the FASB that modify disclosures for defined benefit pension plans and other postretirement benefit plans. These modifications consist of the elimination, addition, and clarification of several disclosures aimed at improving the effectiveness of such disclosure. Changes that impact Arconic’s disclosure include the following: (i) elimination of presenting the amounts in accumulated other comprehensive income expected to be recognized (i.e., amortization of net actuarial losses and prior service costs) as non-service components of net periodic benefit cost over the next fiscal year; (ii) for postretirement health care benefits, elimination of the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit cost and (b) benefit obligation; and (iii) addition of an explanation of the reasons for significant gains and losses related to the changes in benefit obligations for the reporting period. The remaining changes under this guidance either do not represent a change to the Company’s previous disclosures or are not applicable. Other than applying the disclosure changes (see Note H ), the adoption of this guidance did not have an impact on the Consolidated Financial Statements. On January 1, 2019, Arconic adopted changes issued by the FASB to the accounting and presentation of leases. These changes require lessees to recognize a right-of-use asset and lease liability on the balance sheet, initially measured at the present value of the future lease payments for all operating leases with a term greater than 12 months. These changes were applied using the modified retrospective approach as of the date of adoption, under which leases existing at, or entered into after, January 1, 2019 were required to be measured and recognized on the Consolidated Balance Sheet. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed, among other things, the Company to carry forward the historical lease classification. The Company also elected to separate lease components from non-lease components for all classes of assets. The adoption of this new guidance resulted in the Company recording operating lease right-of-use assets and lease liabilities of $150 on the Consolidated Balance Sheet as of January 1, 2019. Also, the Company reclassified a net $73 to Parent Company net investment comprised of $119 from Other noncurrent liabilities and deferred credits, $24 from Properties, plants, and equipment, net, and $22 from Deferred income tax assets reflecting the cumulative effect of an accounting change related to the sale-leaseback of Arconic’s Texarkana (Texas) cast house (see Note S ). The adoption of the standard had no impact on the Statement of Consolidated Operations or Statement of Consolidated Cash Flows. See Note P for disclosures related to the Company’s operating leases. Recently Issued Accounting Guidance. In March 2020, the FASB issued guidance that provides optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. These expedients and exceptions may be used when applying GAAP, if certain criteria are met, to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of such reform. The purpose of this guidance is to provide relief to entities from experiencing unintended accounting and/or financial reporting outcomes or consequences due to reference rate reform. This guidance became effective immediately on March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022, after which time the expedients and exceptions expire. In January 2021, the FASB issued clarifying guidance to specify that certain of the optional expedients and exceptions apply to derivatives that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This additional guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively in the manner previously described for the guidance issued on March 12, 2020. As of December 31, 2021, Arconic has not experienced any unintended outcomes or consequences of reference rate reform that would necessitate the adoption of this guidance. Additionally, the Company will not need to consider the application of this guidance related to its credit agreement, which is scheduled to mature on May 13, 2025 and provides a credit facility that is referenced to LIBOR in certain borrowing situations, as the terms of such agreement currently provide for a replacement rate if LIBOR is discontinued by the end of 2021 as expected. That said, management will continue to closely monitor all potential instances of reference rate reform to determine if adoption of this guidance becomes necessary in the future. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with CustomersThe following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. For the year ended December 31, Rolled Building and Extrusions Total 2021 Ground Transportation $ 2,697 $ — $ 102 $ 2,799 Building and Construction 244 1,011 — 1,255 Packaging 1,217 — — 1,217 Aerospace 512 — 119 631 Industrial Products and Other 1,517 — 85 1,602 Total end-market revenue $ 6,187 $ 1,011 $ 306 $ 7,504 2020 Ground Transportation $ 1,761 $ — $ 88 $ 1,849 Building and Construction 154 963 — 1,117 Packaging 773 — — 773 Aerospace 598 — 222 820 Industrial Products and Other 1,049 — 71 1,120 Total end-market revenue $ 4,335 $ 963 $ 381 $ 5,679 2019 Ground Transportation $ 2,428 $ — $ 117 $ 2,545 Building and Construction 182 1,118 — 1,300 Packaging 885 — — 885 Aerospace 1,016 — 291 1,307 Industrial Products and Other 1,098 — 142 1,240 Total end-market revenue $ 5,609 $ 1,118 $ 550 $ 7,277 |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information Segment Information Arconic has three operating and reportable segments, which are organized by product on a global basis: Rolled Products, Building and Construction Systems, and Extrusions (see segment descriptions below). The Company determined the chief operating decision maker to be the CEO, who regularly reviews the financial information of these three segments to assess performance and allocate resources. Arconic’s profit or loss measure for its reportable segments is Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization). The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus each of (i) Cost of goods sold, (ii) Selling, general administrative, and other expenses, and (iii) Research and development expenses, plus Stock-based compensation expense and Metal price lag. Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments. Segment assets are comprised of customer receivables; inventories; properties, plants, and equipment, net; and goodwill. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note B ). Transactions among segments are established based on negotiation among the parties. The following are detailed descriptions of Arconic’s reportable segments: Rolled Products. This segment produces aluminum sheet and plate for a variety of end markets. Sheet and plate are sold directly to customers and through distributors related to the aerospace, ground transportation, packaging, building and construction, and industrial products (mainly used in the production of machinery and equipment and consumer durables) end markets. A small portion of this segment also produced aseptic foil for the packaging end market prior to February 1, 2020 (see Note S ). While the customer base for flat-rolled products is large, a significant amount of sales of sheet and plate is to a relatively small number of customers. Prices for these products are generally based on the price of metal plus a premium for adding value to the aluminum to produce a semi-finished product, resulting in a business model in which the underlying price of metal is contractually passed-through to customers. Our subsidiaries that own and operate our facility located in Samara, Russia are, and have been since the Separation, subject to proceedings initiated by Russian regulatory authorities (see Note T ). Building and Construction Systems. This segment manufactures products that are used primarily in the non-residential building and construction end market. These products include integrated aluminum architectural systems and architectural extrusions, which are sold directly to customers and through distributors. Extrusions. This segment produces a range of extruded and machined parts for the aerospace, ground transportation, and industrial products end markets. These products are sold directly to customers and through distributors. Prices for these products are generally based on the price of metal plus a premium for adding value to the aluminum to produce a semi-finished product, resulting in a business model in which the underlying price of metal is contractually passed-through to customers. The operating results and assets of Arconic’s reportable segments were as follows (differences between segment totals and Arconic’s consolidated totals for line items not reconciled are in Corporate): Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 6,187 $ 1,011 $ 306 $ 7,504 Intersegment sales 33 — 1 34 Total sales $ 6,220 $ 1,011 $ 307 $ 7,538 Segment Adjusted EBITDA (1) $ 655 $ 130 $ (28) $ 757 Provision for depreciation and amortization $ 197 $ 17 $ 23 $ 237 2020 Sales: Third-party sales $ 4,335 $ 963 $ 381 $ 5,679 Intersegment sales 19 — 2 21 Total sales $ 4,354 $ 963 $ 383 $ 5,700 Segment Adjusted EBITDA (1),(2) $ 527 $ 137 $ (16) $ 648 Provision for depreciation and amortization $ 192 $ 18 $ 25 $ 235 2019 Sales: Third-party sales $ 5,609 $ 1,118 $ 550 $ 7,277 Intersegment sales 25 — 3 28 Total sales $ 5,634 $ 1,118 $ 553 $ 7,305 Segment Adjusted EBITDA (1),(2) $ 640 $ 126 $ (9) $ 757 Provision for depreciation and amortization $ 185 $ 18 $ 29 $ 232 Rolled Building and Extrusions Total 2021 Assets: Segment assets* $ 4,766 $ 416 $ 381 $ 5,563 Supplemental information: Capital expenditures 147 11 14 172 Goodwill 253 69 — 322 2020 Assets: Segment assets $ 3,895 $ 381 $ 420 $ 4,696 Supplemental information: Capital expenditures 134 7 11 152 Goodwill 254 71 65 390 _____________________ * In the 2021 fourth quarter, the Rolled Products segment recorded a net adjustment of $10 (approximately $7 of which relates to prior quarters in 2021) related to write-downs of scrap inventory. The out-of-period amounts were not material to any interim or annual period. The following tables reconcile certain segment information to consolidated totals: For the year ended December 31, 2021 2020 2019 Sales: Total segment sales $ 7,538 $ 5,700 $ 7,305 Elimination of intersegment sales (34) (21) (28) Other — (4) — Consolidated sales $ 7,504 $ 5,675 $ 7,277 The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Arconic Corporation: For the year ended December 31, 2021 2020 2019 Total Segment Adjusted EBITDA (1) $ 757 $ 648 $ 757 Unallocated amounts: Corporate expenses (1),(2) (33) (24) (53) Stock-based compensation expense ( K ) (22) (23) (40) Metal price lag (3) (16) (27) (39) Provision for depreciation and amortization (253) (251) (252) Impairment of goodwill ( B & O ) (65) — — Restructuring and other charges (4) ( E ) (624) (188) (87) Other (1),(5) (36) (55) (71) Operating (loss) income (292) 80 215 Interest expense ( F ) (100) (118) (115) Other (expenses) income, net (1) ( G ) (67) (70) 15 Benefit (Provision) for income taxes ( I ) 62 (1) 62 Net income attributable to noncontrolling interest — — — Consolidated net (loss) income attributable to Arconic (2) $ (397) $ (109) $ 177 (1) In preparation for the Separation, effective January 1, 2020, certain U.S. defined benefit pension and other postretirement plans previously sponsored by ParentCo were separated into standalone plans for both Arconic and Howmet Aerospace. Additionally, effective April 1, 2020, Arconic assumed a portion of the obligations associated with certain non-U.S. defined benefit pension plans that included participants related to both the Arconic Businesses and the Howmet Aerospace Businesses, as well as legacy defined benefit pension plans assigned to the Company as a result of the Separation. As a result, beginning in the first quarter of 2020 for these U.S. plans and in the second quarter of 2020 for these non-U.S. plans, Arconic applied defined benefit plan accounting resulting in benefit plan expense being recorded in operating income (service cost) and nonoperating income (nonservice cost). In all historical periods prior to these respective timeframes, Arconic was considered a participating employer in ParentCo’s defined benefit plans and, therefore, applied multiemployer plan accounting resulting in the Company’s share of benefit plan expense being recorded entirely in operating income. Also, Arconic is the plan sponsor of certain other non-U.S. defined benefit plans that contain participants related only to the Arconic Businesses and, therefore, the related benefit plan expense was recorded in accordance with defined benefit plan accounting in all periods presented. The following table presents the total benefit plan expense (excluding settlements and curtailments) recorded by Arconic based on the foregoing in each period presented: For the year ended December 31, 2021 2020 2019 Segment Adjusted EBITDA: Rolled Products $ (18) $ (17) $ (62) Building and Construction Systems (2) (2) (5) Extrusions (7) (7) (18) Segment total (27) (26) (85) Unallocated amounts: Corporate expenses — — (15) Other — 1 (9) Subtotal — 1 (24) Other expenses, net (60) (78) (2) Total $ (87) $ (103) $ (111) (2) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amounts presented for all periods prior to second quarter 2020 include an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A ). (3) Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions. (4) In 2021 and 2020, Restructuring and other charges include a $584 and $199, respectively, charge for the settlement of certain employee retirement benefits virtually all of which were within the United States and the United Kingdom (see Note H ). (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA. December 31, 2021 2020 Assets: Total segment assets $ 5,563 $ 4,696 Unallocated amounts: Cash and cash equivalents 335 787 Prepaid expenses and other current assets 55 53 Corporate fixed assets, net 153 187 Operating lease right-of-use assets 122 144 Deferred income taxes ( I ) 229 329 Other noncurrent assets 88 97 Other 35 21 Consolidated assets $ 6,580 $ 6,314 Customer Information In 2021, 2020, and 2019 Arconic generated more than 10% of its consolidated sales from one customer, Ford Motor Company. These sales amounted to $761, $647, and $942 in 2021, 2020, and 2019 respectively, and were included in the Rolled Products segment. Geographic Area Information Geographic information for sales was as follows (based upon the country where the point of sale occurred): For the year ended December 31, 2021 2020 2019 Sales: United States $ 4,753 $ 3,697 $ 4,760 Russia* 793 535 512 China 696 429 486 Hungary* 625 462 614 France 260 207 277 United Kingdom 169 144 230 Other 208 201 398 $ 7,504 $ 5,675 $ 7,277 _____________________ * In all periods presented, sales of a portion of aluminum products from Arconic’s plant in Russia were completed through the Company’s international selling company located in Hungary. Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2021 2020 Long-lived assets: United States $ 1,998 $ 2,019 China 242 252 Russia 200 213 Hungary 98 108 United Kingdom 79 82 France 15 18 Other 19 20 $ 2,651 $ 2,712 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges for each year in the three-year period ended December 31, 2021 were comprised of the following: 2021 2020 2019 Settlements related to employee retirement benefit plans ( H ) $ 584 $ 199 $ — Asset impairments 34 15 68 Layoff costs 3 23 30 Net loss (gain) on divestitures of assets and businesses ( S ) 1 (49) (20) Other* 6 14 9 Reversals of previously recorded layoff and other costs (4) (14) — Restructuring and other charges $ 624 $ 188 $ 87 __________________ * In 2020 and 2019, Other includes $2 and $7, respectively, related to the allocation of ParentCo’s corporate restructuring activity to Arconic (see Cost Allocations in Note A ). Layoff costs were recorded based on approved detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts or statutory requirements, and the expected timetable for completion of the plans. 2021 Actions. In 2021, Arconic recorded Restructuring and other charges of $624, which were comprised of the following components: a $584 charge for the settlement of certain employee retirement benefits (see Note H ); a $34 charge for the impairment of several buildings and equipment due to management’s decision to abandon these assets located at the Company’s primary research and development facility; a $7 charge related to idling certain operations in the Extrusions segment, including layoff costs associated with approximately 115 employees; a $4 net benefit for legacy tax and legal matters related to Brazil; a $4 charge related to several legal matters, including the assumption of a related environmental remediation obligation (see Environmental Matters in Note T ); a $4 credit for the reversal of reserves established in prior periods (see 2020 Actions below); a $1 additional loss on the sale of an aluminum rolling mill in Brazil (see Itapissuma in Note S ); and a $2 net charge for other items. As of September 30, 2021, the employee separations associated with 2021 restructuring programs were essentially complete. In 2021, the Company made cash payments of $2 against layoff reserves related to the 2021 restructuring programs. 2020 Actions. In 2020, Arconic recorded a net charge of $188 in Restructuring and other charges, which were comprised of the following components: a $199 charge for the settlement of certain employee retirement benefits, virtually all within the United States and the United Kingdom (see Note H ); a $25 benefit for contingent consideration received related to the 2018 sale of the Texarkana (Texas) rolling mill (see Note S ); a $25 net gain related to the sales of an extrusions plant in South Korea and an aluminum rolling mill in Brazil (see Note S ); a $21 charge for costs, of which $5 is for layoff costs associated with approximately 90 employees, related to the planned closure and related reorganizations of several small facilities in the Building and Construction Systems and Extrusions segments; an $18 charge for layoff costs associated with the separation of approximately 460 employees across the Company in response to the impact of the COVID 19 pandemic (see Note A ); a $14 credit for the reversal of reserves established in prior periods, including $5 related to an environmental matter (see Note T ); a $4 charge for legacy non-income tax matters in Brazil; a $2 charge for an allocation of ParentCo’s corporate restructuring activity (see Cost Allocations in Note A ); and an $8 net charge for other items. In 2021, the total number of employees to be separated was updated to 500 from 550 to reflect employees initially identified for separation accepting other positions within the Company and natural attrition. As of December 31, 2021, the employee separations associated with 2020 restructuring programs were essentially complete. In 2021 and 2020, the Company made cash payments of $5 and $15, respectively, against layoff reserves related to the 2020 restructuring programs. 2019 Actions. In 2019, Arconic recorded Restructuring and other charges of $87, which were comprised of the following components: a $53 impairment charge for the assets associated with an aluminum rolling mill in Brazil as a result of signing a definitive sale agreement (see Note S ); a $30 charge for layoff costs, including the separation of approximately 480 employees (240 in the Rolled Products segment, 190 in the Building and Construction Systems segment, and 50 in the Extrusions segment); a $20 benefit for contingent consideration received related to the sale of the Texarkana (Texas) rolling mill (see Note S ); a $10 charge for the impairment of the carrying value of a trade name intangible asset; a $7 charge for an allocation of ParentCo’s corporate restructuring activity (see Cost Allocations in Note A ); and a $7 net charge for other items. In 2020, the total number of employees to be separated was updated to 370 from 480 to reflect the reversal of a program initiated by ParentCo in 2019, natural attrition, and employees initially identified for separation accepting other positions within the Company. As of September 30, 2021, the employee separations associated with 2019 restructuring programs were essentially complete. In 2021, 2020, and 2019, the Company made cash payments of $3, $9, and $11, respectively, against layoff reserves related to the 2019 restructuring programs. Segment Information. The Company does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: For the year ended December 31, 2021 2020 2019 Rolled Products $ 1 $ (15) $ 47 Building and Construction Systems (2) 5 33 Extrusions 7 (14) 1 Segment total 6 (24) 81 Corporate 618 212 6 $ 624 $ 188 $ 87 Reserve Activity. Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2018 $ 1 $ 3 $ 4 Cash payments (12) (3) (15) Restructuring charges 30 2 32 Other (1) 1 (1) — Reserve balances at December 31, 2019 20 1 21 Separation-related adjustments (2) 2 — 2 Cash payments (24) (3) (27) Restructuring charges 23 4 27 Other (1) (8) (1) (9) Reserve balances at December 31, 2020 13 1 14 Cash payments (10) (5) (15) Restructuring charges 3 6 9 Other (1) (4) (1) (5) Reserve balances at December 31, 2021 (3) $ 2 $ 1 $ 3 _____________________ (1) Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. (2) Represents liabilities transferred from ParentCo on April 1, 2020 in connection with the Separation (see Note A ). (3) The remaining reserves are expected to be paid in cash during 2022. |
Interest Cost Components
Interest Cost Components | 12 Months Ended |
Dec. 31, 2021 | |
Interest Cost Components [Abstract] | |
Interest Cost Disclosure | Interest Cost Components For the year ended December 31, 2021 2020 2019 Amount charged to expense $ 100 $ 118 $ 115 Amount capitalized 4 6 12 $ 104 $ 124 $ 127 In 2020 (January through March) and 2019, total interest costs include an allocation of ParentCo’s financing costs of $28 and $115, respectively (see Cost Allocations in Note A ). Also, in 2020, total interest costs include $19 for the write-off and immediate expensing of certain debt issuance costs related to a debt refinancing (see Note Q ). Typically, such costs are deferred and amortized to interest expense over the term of the related financing arrangement. |
Other Expenses (Income), Net
Other Expenses (Income), Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expenses (Income), Net | Other Expenses (Income), Net For the year ended December 31, 2021 2020 2019 Non-service costs — Pension and OPEB ( H ) $ 60 $ 78 $ 2 Foreign currency losses (gains), net 5 11 (17) Net loss from asset sales — — 2 Interest income (1) (4) (13) Other, net 3 (15) 11 $ 67 $ 70 $ (15) In 2020, Other, net includes a $20 benefit for the reversal of a liability previously established at the Separation Date related to a potential indemnification to Howmet Aerospace by Arconic for an outstanding income tax matter in Spain. Under the terms of the Tax Matters Agreement (see Note A |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Defined Benefit Plans Arconic sponsors several defined benefit pension and other postretirement plans covering eligible employees and retirees in U.S. and foreign locations, as well as certain legacy plans previously sponsored by ParentCo. Prior to January 1, 2020 for U.S. plans and prior to April 1, 2020 for certain non-U.S. plans, eligible employees and retirees related to the Arconic Businesses participated in ParentCo-sponsored defined benefit pension and other postretirement plans (the “Shared Plans”), which included participants related to the Howmet Aerospace Businesses and ParentCo corporate participants, as well as eligible retirees from previously closed or sold operations. Also, prior to the Separation Date, other eligible employees and retirees related to the Arconic Businesses participated in certain non-U.S. defined benefit pension and other postretirement plans (the “Direct Plans”). The Company accounted for the portion of the Shared Plans related to its employees as multiemployer benefit plans. Accordingly, Arconic did not record an asset or liability to recognize the funded status of the Shared Plans. However, the related pension and other postretirement benefit expenses attributable to Arconic were based primarily on pensionable compensation of active Arconic participants and estimated interest costs, respectively. The Company also recorded an allocation of pension and other postretirement benefit expenses for the Shared Plans attributable to ParentCo corporate participants, as well as to participants related to closed and sold operations (see Cost Allocations in Note A ). The Direct Plans were accounted for as defined benefit pension and other postretirement plans. Accordingly, the funded status of each Direct Plan was recorded in the Company’s Consolidated Balance Sheet. Actuarial gains and losses that had not yet been recognized in earnings were recorded in Accumulated other comprehensive loss until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to Direct Plans were dependent on various assumptions, including discount rates, long-term expected rates of return on plan assets, and future compensation increases. Management developed each assumption using relevant company experience in conjunction with market-related data for each of the plans. In preparation for the Separation, effective January 1, 2020, certain U.S. pension and other postretirement benefit plans previously sponsored by ParentCo (the “U.S. Shared Plans” – see above) were separated into standalone plans for both Arconic (the “New Direct Plans”) and Howmet Aerospace. Accordingly, on January 1, 2020, Arconic recognized an aggregate liability of $1,920, of which $60 was current, reflecting the combined net unfunded status of the New Direct Plans, comprised of a benefit obligation of $4,255 and plan assets of $2,335, as well as $1,752 (net of tax impact) in Accumulated other comprehensive loss representing a net actuarial loss. Additionally, effective on the Separation Date, certain other Shared Plans (the “Additional New Direct Plans,” and, collectively with the Direct Plans and New Direct Plans, the “Cumulative Direct Plans”) were assumed by Arconic. Accordingly, on April 1, 2020, Arconic recognized a noncurrent asset of $65 and a noncurrent liability of $15, reflecting the combined net funded status of the Additional New Direct Plans, as well as $50 (net of tax impact) in Accumulated other comprehensive loss representing a net actuarial loss. U.S. Pension Plan Annuitizations— In April 2021, Arconic purchased a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 8,400 participants in two U.S. defined benefit pension plans to an insurance company. In connection with this transaction, the Company contributed a total of $250 to the two plans to maintain the funding level of the remaining plan obligations not transferred. This contribution was funded with the net proceeds from a March 2021 debt offering (see 2021 Activity in Note Q ). Prior to this action, these two plans had an aggregate of approximately 23,000 participants. This transaction represents a significant settlement event, and, as a result, the Company was required to complete a remeasurement of these two plans (generally completed on an annual basis as of December 31, 2020), including an interim actuarial valuation of the plan obligations. Accordingly, the weighted-average discount rate used in calculating the plan obligations increased to 3.10% as of April 30, 2021 from 2.54% as of December 31, 2020. The remeasurement resulted in a combined projected benefit obligation and fair value of plan assets of $3,337 and $2,790, respectively, as of April 30, 2021. From these amounts, the group annuity transaction resulted in the settlement of $995 in plan obligations and the transfer of $1,007 in plan assets. The remeasurement of these two plans, together with the annuitization, resulted in a $152 net decrease to Accrued pension benefits and a $117 (after-tax) net decrease to Accumulated other comprehensive loss (see Note L ). Additionally, the annuitization resulted in the accelerated amortization of a portion of the existing net actuarial loss associated with these two plans in the amount of $549 ($423 after-tax). This amount was reclassified to earnings through Restructuring and other charges (see Note E ) from Accumulated other comprehensive loss (see Note L ). In December 2020, Arconic purchased a group annuity contract to transfer the obligation to pay the remaining retirement benefits of approximately 7,000 participants from two U.S. defined benefit pension plans to an insurance company. On a combined basis, this transaction resulted in the settlement of approximately $240 in plan obligations and the transfer of approximately $245 in plan assets. Prior to this action, these two plans had approximately 30,000 participants combined. The Company recognized a $140 ($108 after-tax) settlement charge, which represents the accelerated amortization of a portion of the existing net actuarial loss associated with these plans. This amount was reclassified to earnings through Restructuring and other charges (see Note E ) from Accumulated other comprehensive loss (see Note L ). U.S. OPEB Plan Amendments— In August 2021, Arconic modified the medical benefit coverage offered to certain Medicare-eligible participants under the Company's U.S. other postretirement benefit plan. Effective January 1, 2022, this modification results in lower premiums and increased benefits to the participants. This change qualifies as a significant plan amendment to the Company's U.S. other postretirement benefit plan. Accordingly, this plan was required to be remeasured, and through this process, the discount rate was updated to 2.78% at August 31, 2021 from 2.61% at December 31, 2020. The amendment, together with the remeasurement of this plan, resulted in a $34 net decrease to the Company's other postretirement benefits liability and a $26 (after-tax) net decrease to Accumulated other comprehensive loss (see Note L ) on the accompanying Consolidated Balance Sheet. The impact of this change on the Company's annual net periodic benefit cost is not material. The Company's estimated annual benefit payments will decrease by approximately $4 beginning in 2022. In July 2020, Arconic and the United Steelworkers agreed to modify the medical benefit coverage offered to certain Medicare-eligible participants under the Company's U.S. other postretirement benefit plan, as provided for in the current master collective bargaining agreement between the parties. Effective January 1, 2021, this modification results in lower premiums and increased benefits to the participants. This change qualifies as a significant plan amendment to the Company's U.S. other postretirement benefit plan. Accordingly, this plan was required to be remeasured, and through this process, the discount rate was updated to 2.54% at July 31, 2020 from 3.17% at December 31, 2019. The amendment, together with the remeasurement of this plan, resulted in a net decrease to both the Company's other postretirement benefits liability of $7 and Accumulated other comprehensive loss of $5 (after-tax). The impact of this change on the Company's annual net periodic benefit cost is not material. The Company's estimated annual benefit payments decreased by approximately $20 beginning in 2021. U.K. Pension Plan Annuitization— In June 2020, Arconic and Howmet Aerospace, together, executed several liability management actions related to approximately 1,800 participants in a U.K. defined benefit pension plan. The primary action was the purchase of a group annuity contract to transfer the obligation to pay the remaining retirement benefits of certain plan participants to an insurance company. On a combined basis, these actions resulted in the settlement of approximately $400 in plan obligations and the transfer of approximately $460 in plan assets. In the 2020 second quarter, the Company contributed $10 to the plan to facilitate these actions and maintain the funding level of the remaining plan obligations. Prior to these actions, this plan had approximately 3,350 participants combined. Accordingly, this plan was required to be remeasured, and through this process, the discount rate was updated to 1.55% at June 30, 2020 from 2.05% at December 31, 2019. The settlement events, together with the remeasurement of the plan, resulted in an approximately $250 net reduction to the Company’s remaining plan obligation and both a decrease to the Company’s pension benefit asset and a settlement charge of $58 ($48 after-tax) in 2020. The settlement charge represents the accelerated amortization of a portion of the existing net actuarial loss associated with this plan. This amount was reclassified to earnings through Restructuring and other charges (see Note E ) from Accumulated other comprehensive loss. Subsequent to this remeasurement, the remaining respective plan obligations and plan assets attributable to Arconic and Howmet Aerospace were transferred into separate plans and the existing U.K. plan was terminated. Immediately following the completion of the transfer, the Company’s remaining plan obligation was approximately $240 and the plan assets were approximately $260 related to 1,050 plan participants. The following table summarizes the total expenses (excluding settlements and curtailments) recognized by Arconic related to the pension and other postretirement benefits described above: Pension benefits Other postretirement benefits For the year ended December 31, For the year ended December 31, Type of Plan Type of Expense 2021 2020 2019 2021 2020 2019 Cumulative Direct Plans Net periodic benefit cost $ 68 $ 82 $ 5 $ 19 $ 22 $ — Shared Plans Multiemployer contribution expense — — 61 — — 21 Shared Plans Cost allocation — (1) 20 — — 4 $ 68 $ 81 $ 86 $ 19 $ 22 $ 25 The funded status of Arconic’s Cumulative Direct Plans is measured as of December 31 each calendar year. All the information that follows for pension and other postretirement benefit plans is only applicable to the Cumulative Direct Plans, as appropriate. As of and for the year ended December 31, 2019, the Company’s other postretirement benefit plans were not material. Obligations and Funded Status Pension benefits Other postretirement benefits December 31, 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 4,081 $ 142 $ 514 $ 1 Establishment of additional defined benefit plans - New Direct Plans — 3,688 — 567 Separation-related adjustments - Additional New Direct Plans — 550 — — Service cost 21 21 6 5 Interest cost 63 108 11 13 Amendments — — (30) (52) Actuarial (gains) losses (1) (105) 382 (23) 33 Benefits paid (183) (273) (38) (55) Settlements (1,051) (542) — — Foreign currency translation impact (9) 10 — — Divestitures — (5) — — Medicare part D subsidy receipts — — — 2 Benefit obligation at end of year (2) $ 2,817 $ 4,081 $ 440 $ 514 Change in plan assets Fair value of plan assets at beginning of year $ 2,754 $ 79 $ — $ — Establishment of additional defined benefit plans - New Direct Plans — 2,335 — — Separation-related adjustments - Additional New Direct Plans — 600 — — Actual return on plan assets 177 350 — — Employer contributions 458 271 — — Benefits paid (176) (266) — — Settlements (1,069) (595) — — Foreign currency translation impact (3) 3 — — Divestitures — (4) — — Administrative expenses (17) (19) — — Fair value of plan assets at end of year (2) $ 2,124 $ 2,754 $ — $ — Funded status (2) $ (693) $ (1,327) $ (440) $ (514) Amounts recognized on the Consolidated Balance Sheet: Noncurrent assets $ 32 $ 24 $ — $ — Current liabilities (8) (8) (29) (35) Noncurrent liabilities (717) (1,343) (411) (479) Net amount recognized $ (693) $ (1,327) $ (440) $ (514) Amounts recognized in Accumulated Other Comprehensive Loss (pretax): Net actuarial loss $ 1,389 $ 2,204 $ 166 $ 197 Prior service benefit — — (85) (61) Net amount recognized $ 1,389 $ 2,204 $ 81 $ 136 Other changes in plan assets and benefit obligations recognized in Net actuarial loss $ (137) $ 276 $ (23) $ 35 Amortization of net actuarial loss (678) (322) (8) (8) Prior service benefit — — (30) (52) Amortization of prior service benefit — — 6 4 Total $ (815) $ (46) $ (55) $ (21) _____________________ (1) At December 31, 2021 and 2020, actuarial (gains) losses for pension benefits includes approximately $(130) and $370, respectively, attributable to the change in the discount rate used to determine the benefit obligation (see “Assumptions” below). (2) At December 31, 2021, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,398, $1,744, and $654, respectively. At December 31, 2020, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $3,646, $2,379, and $1,267, respectively. Pension Plan Benefit Obligations Pension benefits December 31, 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit Projected benefit obligation $ 2,817 $ 4,081 Accumulated benefit obligation 2,807 4,068 The aggregate projected benefit obligation and fair value of plan assets for defined benefit Projected benefit obligation 2,472 3,795 Fair value of plan assets 1,747 2,444 The aggregate accumulated benefit obligation and fair value of plan assets for defined Accumulated benefit obligation 2,464 3,784 Fair value of plan assets 1,747 2,444 Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits For the year ended December 31, 2021 2020 2019 2021 2020 Service cost $ 21 $ 21 $ 3 $ 6 $ 5 Interest cost 63 108 4 11 13 Expected return on plan assets (110) (170) (5) — — Amortization of net actuarial loss 94 123 3 8 8 Amortization of prior service benefit — — — (6) (4) Settlements (2) 584 199 — — — Net periodic benefit cost (3) $ 652 $ 281 $ 5 $ 19 $ 22 _____________________ (1) In 2021 and 2020, net periodic benefit cost for U.S pension plans was $653 and $220, respectively. (2) In 2021, Settlements were due to the purchase of a group annuity contract ($549 - see U.S. Pension Plan Annuitizations above) and the payment of lump-sum benefits ($35). In 2020, Settlements were due to two separate purchases of a group annuity contract (see U.S. Pension Plan Annuitizations and U.K. Pension Plan Annuitization above). (3) Service cost was included within Cost of goods sold, Settlements were included within Restructuring and other charges, and all other components were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations. Assumptions Weighted average assumptions used to determine benefit obligations and net periodic benefit cost for pension and other postretirement benefit plans were as follows: Benefit obligations Net periodic benefit cost December 31, For the year ended December 31, 2021 2020 2021 2020 2019 Discount rate—pension plans 2.76 % 2.45 % 2.27 % 2.86 % 3.12 % Discount rate—other postretirement benefit plans 2.90 2.61 2.19 2.49 * Rate of compensation increase—pension plans 2.66 2.55 2.54 3.20 3.42 Expected long-term rate of return on plan assets—pension plans — — 4.91 6.09 6.73 ______________________ * In 2019 the Company's other postretirement benefit plans were not material. The discount rate is determined using a Company-specific yield curve model (above-median) developed with the assistance of an external actuary. The cash flows of the projected benefit obligations are discounted using a single equivalent rate derived from yields on high quality corporate bonds, which represent a broad diversification of issuers in various sectors. The yield curve model parallels the projected plan cash flows, which have a weighted average duration of 13 years, and the underlying cash flows of the bonds included in the model exceed the cash flows needed to satisfy the plan obligations multiple times. If a deep market of high quality corporate bonds does not exist in a country, then the yield on government bonds is used. The expected long-term rate of return on plan assets is generally applied to a five-year market-related value of plan assets (the fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on forward-looking investment returns by asset class. Management incorporates expected future investment returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment. For 2021 and 2020, the expected long-term rate of return used by management was based on the prevailing and planned strategic asset allocations, as well as estimates of future returns by asset class. For 2022, management anticipates that the weighted-average expected long-term rate of return will be in the range of 5.00% to 6.00%. Weighted-average assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2021 2020 Health care cost trend rate assumed for next year 4.5 % 7.7 % Rate to which the cost trend rate gradually declines 4.7 % 4.6 % Year that the rate reaches the rate at which it is assumed to remain 2027 2026 The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by the Company’s other postretirement benefit plans. For 2022, a 4.5% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. Plan Assets Arconic’s pension plan investment policy and weighted average asset allocations at December 31, 2021 and 2020, by asset class, were as follows: Plan assets at December 31, Asset class Policy maximum 2021 2020 Equities 40% 31 % 20 % Fixed income 100% 56 51 Other investments 30% 13 29 Total 100 % 100 % The principal objectives underlying the investment of the pension plan assets are to ensure that Arconic can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within various asset classes to protect asset values against adverse movements. The use of derivative instruments is permitted where appropriate and necessary for achieving diversification across the balance of the asset portfolio. Investment practices comply with the requirements of applicable country laws and regulations. The following section describes the valuation methodologies used by the trustees to measure the fair value of pension plan assets. For plan assets measured at net asset value, this refers to the net asset value of the investment on a per share basis (or its equivalent) as a practical expedient. Otherwise, an indication of the level in the fair value hierarchy in which each type of asset is generally classified is provided (see Note U for the definition of fair value and a description of the fair value hierarchy). Equities —These securities consist of: (i) direct investments in the stock of publicly traded U.S. and non-U.S. companies and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (ii) the plans’ share of commingled funds that are invested in the stock of publicly traded companies and are valued at net asset value; and (iii) direct investments in long/short equity hedge funds and private equity (limited partnerships and venture capital partnerships) and are valued at net asset value. Fixed income —These securities consist of: (i) U.S. government debt and are generally valued using quoted prices (included in Level 1); and (ii) publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds and debentures) and are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data (included in Level 2). Other investments —These investments include, among others: (i) real estate investment trusts valued based on the closing price reported in an active market on which the investments are traded (included in Level 1); (ii) the plans’ share of commingled funds that are invested in real estate partnerships and are valued at net asset value; (iii) direct investments in discretionary and systematic macro hedge funds and private real estate (includes limited partnerships) and are valued at net asset value; and (iv) absolute return strategy funds and are valued at net asset value. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Arconic believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2021 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 12 $ — $ — $ 392 $ 404 Long/short equity hedge funds — — — 24 24 Private equity — — — 224 224 $ 12 $ — $ — $ 640 $ 652 Fixed Income: Intermediate and long duration government/credit $ 95 $ 412 $ — $ 612 $ 1,119 Other 23 — — 50 73 $ 118 $ 412 $ — $ 662 $ 1,192 Other investments: Real estate $ — $ — $ — $ 108 $ 108 Discretionary and systematic macro hedge funds — — — 99 99 Other — — — 77 77 $ — $ — $ — $ 284 $ 284 Total* $ 130 $ 412 $ — $ 1,586 $ 2,128 December 31, 2020 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 1 $ — $ — $ 276 $ 277 Long/short equity hedge funds — — — 107 107 Private equity — — — 143 143 $ 1 $ — $ — $ 526 $ 527 Fixed Income: Intermediate and long duration government/credit $ 117 $ 602 $ — $ 606 $ 1,325 Other 1 — — 44 45 $ 118 $ 602 $ — $ 650 $ 1,370 Other investments: Real estate $ 39 $ — $ — $ 93 $ 132 Discretionary and systematic macro hedge funds — — — 531 531 Other — — — 94 94 $ 39 $ — $ — $ 718 $ 757 Total* $ 158 $ 602 $ — $ 1,894 $ 2,654 ______________________ * As of December 31, 2021 and 2020, the total fair value of pension plan assets excludes a net payable of $4 and net receivable of $100, respectively, which represents securities not yet settled plus interest and dividends earned on various investments. Funding and Cash Flows It is Arconic’s policy to contribute amounts to funded defined benefit pension plans sufficient to meet the minimum requirements set forth in applicable country employee benefit and tax regulations, including ERISA for U.S. plans. From time to time, Arconic may contribute additional amounts as deemed appropriate. In 2021 and 2020, cash contributions to Arconic’s funded defined benefit pension plans were $458 and $271, respectively. The 2021 cash contributions include a total of $250 made by the Company in April 2021 to its two funded U.S. defined benefit pension plans to maintain the funding level of the remaining plan obligations not transferred under a group annuity contract (see U.S. Pension Plan Annuitizations above). The minimum required contributions to Arconic’s funded defined benefit pension plans in 2022 are estimated to be $32, of which $22 is for U.S. plans. Benefit payments expected to be paid to pension (funded and unfunded) and other postretirement benefit plan participants are as follows: For the year ended December 31, Pension benefits Other postretirement benefits 2022 $ 164 $ 29 2023 162 28 2024 160 27 2025 158 27 2026 158 27 2027 through 2031 763 128 $ 1,565 $ 266 Defined Contribution Plans Arconic sponsors savings and investment plans in the United States and certain other countries. Prior to the Separation Date, employees attributable to the Arconic Businesses participated in ParentCo-sponsored plans. In the United States, employees may contribute a portion of their compensation to the plans, and Arconic (ParentCo prior to the Separation Date) matches a specified percentage of these contributions in equivalent form of the investments elected by the employee. Also, Arconic (ParentCo prior to the Separation Date) makes contributions to a retirement savings account based on a percentage of eligible compensation for certain U.S. employees. Arconic’s expenses (contributions) related to all defined contribution plans were $39 in 2021, $35 in 2020, and $38 in 2019. |
Income Taxes_
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Benefit) Provision for income taxes. The components of (loss) income before income taxes were as follows: For the year ended December 31, 2021 2020 2019 Domestic - United States $ (611) $ (126) $ 64 Foreign 152 18 51 $ (459) $ (108) $ 115 (Benefit) Provision for income taxes consisted of the following: For the year ended December 31, 2021 2020 2019 Current: Foreign $ 36 $ 13 $ 16 U.S. state and local 2 4 3 38 17 19 Deferred: U.S. federal* (86) (12) (83) Foreign (2) 4 11 U.S. state and local (12) (8) (9) (100) (16) (81) Total $ (62) $ 1 $ (62) __________________ * Includes U.S. income taxes related to foreign income. Also, in 2020, the Deferred amount includes a $21 charge related to income generated by the Company prior to the Separation Date that was included in ParentCo’s 2020 tax return. A reconciliation of the U.S. federal statutory rate to Arconic’s effective tax rate was as follows (the effective tax rate was a benefit on loss in 2021, a provision on loss in 2020, and a benefit on income in 2019): For the year ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Taxes on foreign operations - rate differential 0.1 (4.8) (6.0) Other taxes related to foreign operations (1) (5.0) (9.4) 23.5 U.S. state and local taxes, including federal benefit 2.6 3.3 (2.6) Statutory tax rate and law changes (0.3) (2.1) — Changes in valuation allowances (0.9) (7.3) 30.4 Non-taxable income - indemnification liability (2) 0.4 3.8 — Subsidiary recapitalizations and reorganizations (3) (1.1) (3.9) (121.8) Impairment of goodwill (3.0) — — Non-deductible costs related to the Separation ( A ) — (2.2) 3.5 Other (0.3) 0.7 (1.9) Effective tax rate 13.5 % (0.9) % (53.9) % _____________________ (1) In 2021 and 2019, this line item includes the impact of incremental income tax expense of $11 and $35, respectively, related to foreign operations that generated income subject to the global intangible low-taxed income inclusion under the U.S. Internal Revenue Code. (2) In 2020, this line item reflects the impact of the absence of income tax expense for non-taxable income generated by the reversal of a liability previously established at the Separation Date related to a potential indemnification to Howmet Aerospace by Arconic for an outstanding income tax matter in Spain (see Note G ). (3) In 2019, this line item represents the impact of a $140 net tax benefit related to a U.S. tax election that resulted in the deemed liquidation of a foreign subsidiary's assets into its U.S. tax parent. Deferred income taxes. The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2021 2020 December 31, Deferred Deferred Deferred Deferred Employee benefits $ 331 $ — $ 503 $ 3 Tax loss carryforwards 206 — 167 — Deferred income/expense* 47 — 6 80 Interest 44 — 15 — Operating lease right-of-use assets and liabilities 30 30 37 37 Loss provisions 24 — 42 — Inventory accounting method change* — 97 — — Depreciation 13 267 13 256 Other 17 11 2 4 $ 712 $ 405 $ 785 $ 380 Valuation allowance (90) — (91) — $ 622 $ 405 $ 694 $ 380 _____________________ * In 2021, an accounting method change was filed to revoke the U.S. tax LIFO election. In 2020, the deferred tax liability associated with the U.S. tax LIFO election was presented as Deferred Income/expense. The following table details the expiration periods of the deferred tax assets presented above: December 31, 2021 Expires Expires No expiration (1) Other (2) Total Tax loss carryforwards $ 34 $ 30 $ 142 $ — $ 206 Employee benefits — — — 331 331 Other — 2 44 129 175 Valuation allowance (32) (6) (5) (47) (90) $ 2 $ 26 $ 181 $ 413 $ 622 ____________________ (1) Deferred tax assets with no expiration may still have annual limitations on utilization. (2) Employee benefits will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to participants. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences (65%) and taxable temporary differences that reverse within the carryforward period (35%). The following table details the changes in the valuation allowance: December 31, 2021 2020 2019 Balance at beginning of year $ 91 $ 113 $ 107 Establishment of new allowances (1) 3 — — Net change to existing allowances (2) (3) (16) 18 Separation-related adjustments — 22 — Acquisitions and divestitures — (31) — Release of allowances — — (11) Foreign currency translation (1) 3 (1) Balance at end of year $ 90 $ 91 $ 113 ____________________ (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgement regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax assets. Undistributed net earnings. Foreign undistributed net earnings that have not otherwise previously been subject to U.S. tax are generally exempt from U.S. tax if repatriated in the future. Such future distributions, as well as distributions of previously taxed foreign earnings, may be subject to U.S. state and/or foreign withholding taxes in certain jurisdictions. Also, foreign currency gains/losses related to the translation of previously taxed foreign earnings from the functional currency to the U.S. dollar may be subject to U.S. tax if such earnings were to be distributed in the future. At this time, Management has no plans to repatriate such earnings in the foreseeable future, as the Company has several commitments and obligations related to its operations in various foreign jurisdictions. Management continuously evaluates the Company’s local and global cash needs for future business operations and anticipated debt facilities, which may influence future repatriation decisions. If such earnings were to be distributed in the future, management does not expect the potential U.S. state and/or foreign withholding taxes to be material to the Company’s Consolidated Financial Statements. Uncertain tax positions. Arconic and its subsidiaries file income tax returns in various U.S. federal, U.S. state, and foreign jurisdictions. For U.S. federal income tax purposes, Arconic’s U.S. operations were included in the income tax filings of ParentCo’s U.S. consolidated tax group through March 31, 2020. ParentCo’s U.S. federal income tax filings have been examined for all periods through 2020. In 2021, the Company’s U.S. consolidated tax group filed a nine-month (April 1, 2020 through December 31, 2020) U.S. federal income tax return which is subject to income tax examination. For U.S. state and foreign income tax purposes, Arconic and its subsidiaries remain subject to income tax examinations for the 2014 tax year and forward. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2021 2020 2019 Balance at beginning of year $ 23 $ 21 $ 18 Additions for tax positions of prior years 1 — 4 Foreign currency translation (2) 2 (1) Balance at end of year $ 22 $ 23 $ 21 Unrecognized tax benefits, if recognized, would not impact the annual effective tax rate for 2021, 2020, and 2019. Management does not anticipate that changes in the Company's unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2022. It is Arconic’s policy to recognize interest and penalties related to income taxes as a component of the Benefit (Provision) for income taxes on the accompanying Statement of Consolidated Operations. In 2021, 2020, and 2019, Arconic did not recognize any interest or penalties. As of December 31, 2021 and 2020, no interest and penalties were accrued. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing Net (loss) income attributable to Arconic by the weighted-average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. Specific to Arconic, such share equivalents consist of outstanding employee stock awards (excluding out-of-the-money stock options – see below). For periods in which the Company generates net income, the diluted weighted-average number of shares include common share equivalents associated with outstanding employee stock awards. For periods in which the Company generates a net loss, common share equivalents are excluded from the diluted weighted-average number of shares as their effect is anti-dilutive. The share information used to compute basic and diluted EPS attributable to Arconic common stockholders was as follows (shares in millions): 2021 2020 2019 Weighted-average shares outstanding – basic 109 109 109 Effect of dilutive share equivalents: Stock options — — — Stock units — — — Weighted-average shares outstanding – diluted 109 109 109 Anti-dilutive share equivalents: Stock units 3.3 2.6 — Stock options*: In-the-money 0.1 — — Out-of-the-money — — — 3.4 2.6 — ________________ * Stock options are in-the-money when the respective exercise price of each such option is less than the average market price of the Company’s common stock during the applicable period presented. Conversely, stock options are out-of-the-money when the respective exercise price of each such option is more than the average market price of the Company’s common stock during the applicable period presented. Out-of-the-money stock options never result in common share equivalents for purposes of diluted EPS regardless of whether a company generates net income or a net loss. As of December 31, 2020 there were 0.5 million out-of-the money stock options outstanding with a weighted average exercise price of $33.32. Prior to the Separation Date, Arconic did not have any publicly-traded issued and outstanding common stock or any common share equivalents. Accordingly, in 2019 the EPS included on the accompanying Statement of Consolidated Operations was calculated based on the 109,021,376 shares of Arconic common stock distributed on the Separation Date in connection with the completion of the Separation (see Note A ). |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Preferred and Common Stock | Preferred and Common Stock Preferred Stock. Arconic is authorized to issue 10,000,000 shares of preferred stock at a par value of $0.01 per share. At December 31, 2021 and 2020, the Company had no issued preferred stock. Common Stock. Arconic is authorized to issue 150,000,000 shares of common stock at a par value of $0.01 per share. On April 1, 2020, in connection with the Separation, the Company distributed 109,021,376 shares of its common stock to ParentCo’s stockholders (see Note A ). As of December 31, 2021 and 2020, Arconic had 110,239,390 and 109,205,226, respectively, issued and 105,326,885 and 109,205,226, respectively, outstanding shares of common stock. In 2021 and from April 1, 2020 through December 31, 2020, the Company issued 1,034,164 and 183,850, respectively, shares of common stock under its employee stock-based compensation plan (see below). On May 4, 2021, Arconic announced that its Board of Directors approved a share repurchase program authorizing the Company to repurchase shares of its outstanding common stock up to an aggregate transactional value of $300 over a two The Company issues new shares of common stock to satisfy the exercise of stock options and the conversion of stock units granted under its employee stock-based compensation plan. On May 20, 2021, the Company’s shareholders approved an amendment to the plan to increase the shares of common stock authorized for issuance by 3,000,000 to 11,500,000 shares and to eliminate the plan’s fungible share accounting, with the result that shares issued pursuant to full value stock awards, on or after the date of amendment, will be counted against the share reserve as one share issued under each such award, rather than as one and one-half shares. Shares returned to the plan, on or after the date of amendment, will be counted as one share, regardless of whether such shares were counted as one and one-half shares upon grant based on the prior fungible share accounting convention. In 2021 and from April 1, 2020 through December 31, 2020, there were 251,919 and 84,959, respectively, stock options exercised and 1,125,983 and 157,230, respectively, stock units converted (see table below). Additionally, as of December 31, 2021 and 2020, there were 590,906 and 1,026,808, respectively, stock options and 3,913,337 and 4,544,063, respectively, stock units outstanding (i.e., unexercised and/or unvested) under this plan (see table below). Accordingly, as of December 31, 2021 and 2020, there were 4,749,255 and 336,293, respectively, shares of common stock available for issuance under the plan. Dividends on common stock are subject to authorization by the Company’s Board of Directors. Arconic did not declare any dividends in 2021 and from April 1, 2020 through December 31, 2020. Stock-based Compensation For all periods prior to the Separation Date, eligible employees attributable to the Arconic Businesses participated in ParentCo’s stock-based compensation plan. In 2021 and from the Separation Date through December 31, 2020, eligible Arconic employees participated in the Company’s stock-based compensation plan. Effective April 1, 2020, all outstanding stock options (vested and non-vested) and non-vested stock units originally granted under ParentCo’s stock-based compensation plan related to employees of the Arconic Businesses, as well as the ParentCo corporate employees that became Arconic employees at Separation, were replaced with similar stock options and stock units under Arconic’s stock-based compensation plan. In order to preserve the intrinsic value of these awards, the referenced employees received replacement stock options and stock units under Arconic’s stock-based compensation plan at a ratio of 1.07 and 2.18, respectively, compared to the number of stock options and stock units originally granted under ParentCo’s stock-based compensation plan. The ratio for stock options was developed by dividing the March 31, 2020 closing market price ($16.06) of ParentCo’s common stock by the April 1, 2020 opening market price ($15.00) of Arconic’s common stock (the Company’s common stock did not trade on a “when issued” basis prior to April 1, 2020). Additionally, the exercise price of stock options was decreased by a ratio of 0.93 developed by dividing $15.00 by $16.06. The ratio for stock units was developed by dividing the March 31, 2020 closing market price of ParentCo’s common stock by the volume weighted average trading price ($7.37) of Arconic’s common stock during the first five trading days subsequent to March 31, 2020. This resulted in a beginning balance of outstanding stock options and stock units under Arconic’s stock-based compensation plan of 1,173,492 and 3,062,013, respectively, as of April 1, 2020. The respective fair values of these stock options and units were adjusted accordingly. Arconic did not recognize any immediate incremental stock-based compensation expense as a result of this adjustment. The following description of Arconic’s stock-based compensation plan is not materially different from the description of ParentCo’s stock-based compensation plan prior to the Separation. Stock awards are generally granted in the first quarter of each calendar year to eligible employees at the closing market price of Arconic’s common stock on the date of grant. Stock options typically grade-vest over a three-year service period (1/3 each year) with a ten-year contractual term; stock units typically cliff-vest on the third anniversary of the award grant date. As a condition of Arconic’s stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. In 2021, certain of the stock unit grants also contain both performance and market conditions (the “performance stock units”) and were granted to a limited number of eligible employees, including the Company’s executive officers. The final number of performance stock units earned is dependent on Arconic’s achievement of certain targets (performance condition) and by a total stockholder return (“TSR”) (market condition) over a three-year measurement period. Specifically, determination of the initial number of stock units earned is based on the Company’s achievement of an adjusted EBITDA target (50%), a return on invested capital (25%) and TSR (25%). In 2021, TSR was added as a stand-alone metric rather than a post-performance period multiplier (see below) to further align executive compensation with the creation of shareholder value as compared to Arconic’s peers. For the 2021 performance stock units, cumulative three-year performance goals (including for the TSR) were established for the performance period. In 2020, certain of the stock unit grants also contain both performance and market conditions (the “performance stock units”) and were granted to a limited number of eligible employees, including the Company’s executive officers. The final number of performance stock units earned is dependent on Arconic’s achievement of certain targets (performance condition) modified by a TSR multiplier (market condition) over a three-year measurement period. Specifically, determination of the initial number of stock units earned is based on the Company’s achievement of an adjusted EBITDA target (25%), a controllable free cash flow target (25%), and a pretax return on net assets target (50%). For the 2020 performance stock units, the Compensation Committee of the Company's Board of Directors established three one-year financial targets to address the lack of visibility and challenge in setting long-term financial goals at the outset of the COVID-19 pandemic, while aligning executive compensation to long-term results. This result is then scaled by the TSR multiplier, which is based on the Company’s relative three-year (January 1 of the grant year through December 31 of the third year in the service period) performance against the TSRs of a group of peer companies. Similar grants were made by ParentCo in 2019 and 2018 but these awards were subsequently converted by ParentCo management prior to 2020 at 100% and 97.5%, respectively, of target to stock units with no such conditions for the remainder of the service period in consideration of the Separation. In 2021, 2020, and 2019, Arconic recognized stock-based compensation expense of $22 ($17 after-tax), $23 ($18 after-tax), and $38 ($30 after-tax), respectively, of which a minimum of approximately 85% was related to stock units in each period. No stock-based compensation expense was capitalized in 2021, 2020, or 2019. For periods prior to the Separation, the stock-based compensation expense recorded by Arconic was comprised of two components: (i) the expense associated with employees attributable to the Arconic Businesses, and (ii) an allocation of expense related to ParentCo corporate employees (see Cost Allocations in Note A ). In 2020 (January through March) and 2019, this allocation was $5 and $30, respectively, of Arconic’s recognized stock-based compensation expense. Also, in 2019, Arconic’s recognized stock-based compensation expense includes a benefit of $2 (through allocation) for certain executive pre-vest stock award cancellations. This benefit was recorded in Restructuring and other charges (see Note E ) on the accompanying Statement of Consolidated Operations. Stock-based compensation expense is based on the grant date fair value of the applicable equity grant. For stock units with no market condition, the fair value is equivalent to the closing market price of Arconic’s or ParentCo’s common stock on the date of grant in the respective periods. For stock units granted with a market condition, the fair value is estimated on the date of grant using a Monte Carlo simulation model, which generated a result of $46.17, $10.02, and $11.93 per unit in 2021, 2020, and 2019 respectively. There were no stock options granted in 2021, 2020, or 2019. As previously mentioned, the estimated fair values for stock units (granted in 2019 and 2018) and stock options (granted in 2018) outstanding at March 31, 2020 were adjusted in order to maintain the intrinsic value of these awards in connection with the Separation. To estimate the fair value of a stock unit with a market condition, the Monte Carlo simulation model uses certain assumptions, including a risk-free interest rate and volatility, to estimate the probability of satisfying market conditions. The risk-free interest rate (0.3% in 2021, 0.2% in 2020, and 1.6% in 2019) was based on a yield curve of interest rates at the time of the grant based on the remaining performance period. Volatility was estimated using implied and historical volatility (50.1% in 2021, 35.4% in 2020, and 33.4% in 2019). The activity for stock options and stock units, including performance stock units granted to the Company's executive officers, from January 1, 2021 through December 31, 2021 was as follows: Stock options Stock units Number of Weighted Number of Weighted Outstanding, January 1, 2021 1,026,808 $ 26.64 4,544,063 $ 10.36 Granted — — 919,170 35.21 Exercised (251,919) 23.69 — — Converted (1) — — (1,125,983) 12.84 Expired or forfeited (183,983) 34.11 (197,177) 17.56 Performance share adjustment (2) — — (226,736) 10.02 Outstanding, December 31, 2021 590,906 25.56 3,913,337 15.14 (1) The number of converted units includes 343,738 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. (2) In 2021, the Company adjusted the target payout of those performance stock awards granted in 2020. Since the grant date, these awards have been accounted for based on a payout at 100% of target. However, in 2021 the payout for these awards was estimated to be at 8.3% of target. Accordingly, the shares outstanding for these awards from grant date through the date of adjustment were adjusted to reflect the probable payout percentage. As of December 31, 2021, the 590,906 outstanding stock options had a weighted average remaining contractual life of 2.6 years and a total intrinsic value of $4. Additionally, as of December 31, 2021 all of the total outstanding stock options were fully vested and exercisable. In 2021 and from April 1, 2020 through December 31, 2020, cash received from stock option exercises was $6 and the total intrinsic value of stock options exercised was $2. At December 31, 2021, there was $15 (pre-tax) of combined unrecognized compensation expense related to non-vested grants of both stock options and stock units. This expense is expected to be recognized over a weighted average period of 2 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table details the activity of the three components that comprise Accumulated other comprehensive (loss) income for Arconic (such activity for Noncontrolling interest was immaterial for all periods presented): 2021 2020 2019 Pension and other postretirement benefits ( H ) Balance at beginning of period $ (1,791) $ (43) $ (32) Establishment of additional defined benefit plans — (1,752) — Separation-related adjustments ( A ) — (50) — Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 190 (259) (16) Tax (expense) benefit (43) 62 3 Total Other comprehensive income (loss) before reclassifications, net of tax 147 (197) (13) Amortization of net actuarial loss and prior service cost/benefit (1) 680 326 3 Tax expense (2) (157) (75) (1) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 523 251 2 Total Other comprehensive income (loss) 670 54 (11) Balance at end of period $ (1,121) $ (1,791) $ (43) Foreign currency translation Balance at beginning of period $ 29 $ 338 $ 282 Separation-related adjustments ( A ) — (396) — Other comprehensive (loss) income: Foreign currency translation (3) (4) 65 56 Net amount reclassified to earnings from Accumulated other comprehensive income (3),(5) — 22 — Total Other comprehensive (loss) income (4) 87 56 Balance at end of period $ 25 $ 29 $ 338 Cash flow hedges Balance at beginning of period $ 1 $ — $ — Separation-related adjustments ( A ) — (4) — Other comprehensive (loss) income: Net change from periodic revaluations (161) (2) — Tax benefit 37 1 — Total Other comprehensive loss before reclassifications, net of tax (124) (1) — Net amount reclassified to earnings (4) 140 8 — Tax expense (2) (32) (2) — Total amount reclassified from Accumulated other comprehensive income, net of tax (5) 108 6 — Total Other comprehensive (loss) income (16) 5 — Balance at end of period $ (15) $ 1 $ — Accumulated other comprehensive (loss) income $ (1,111) $ (1,761) $ 295 _____________________ (1) These amounts were included in the non-service component of net periodic benefit cost for pension and other postretirement benefits (see Note H ). In 2021 and 2020, this amount includes $584 and $199 related to the settlement of certain employee retirement benefits (see Note H ). (2) These amounts were reported in (Benefit) Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes. In 2020, the net amount reclassified to earnings was reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations related to the sale of certain foreign subsidiaries. (4) These amounts relate to aluminum contracts, a portion of which were reported in both Sales and Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, 2021 2020 Finished goods $ 350 $ 282 Work-in-process 1,105 635 Purchased raw materials 109 59 Operating supplies 66 67 $ 1,630 $ 1,043 |
Properties, Plants, and Equipme
Properties, Plants, and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants, and Equipment, Net | Properties, Plants, and Equipment, Net December 31, 2021 2020 Land and land rights $ 22 $ 23 Structures: Rolled Products 1,107 1,095 Building and Construction Systems 96 95 Extrusions 150 150 Other 152 153 1,505 1,493 Machinery and equipment: Rolled Products 4,816 4,787 Building and Construction Systems 203 205 Extrusions 523 520 Other 291 279 5,833 5,791 7,360 7,307 Less: accumulated depreciation and amortization 4,878 4,697 2,482 2,610 Construction work-in-progress 169 102 $ 2,651 $ 2,712 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table details the changes in the carrying value of Goodwill: Rolled Building and Extrusions Total Balances at December 31, 2019: Goodwill $ 246 $ 97 $ 71 $ 414 Accumulated impairment losses — (28) — (28) Goodwill, net 246 69 71 386 Divestitures ( S ) (1) — (6) (7) Translation 9 2 — 11 Balances at December 31, 2020: Goodwill 254 99 65 418 Accumulated impairment losses — (28) — (28) Goodwill, net 254 71 65 390 Impairment ( B ) — — (65) (65) Translation (1) (2) — (3) Balances at December 31, 2021: Goodwill 253 97 65 415 Accumulated impairment losses — (28) (65) (93) Goodwill, net $ 253 $ 69 $ — $ 322 In 2021, Arconic recognized an impairment charge of $65 for the Extrusions reporting unit based on the result of the annual review of goodwill for impairment (see Goodwill in Note B ). Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: December 31, 2021 Gross Accumulated Net carrying Computer software $ 555 $ (523) $ 32 Patents and licenses 27 (27) — Other 21 (15) 6 Total other intangible assets $ 603 $ (565) $ 38 December 31, 2020 Gross Accumulated Net carrying Computer software $ 550 $ (510) $ 40 Patents and licenses 28 (28) — Other 21 (14) 7 Total other intangible assets $ 599 $ (552) $ 47 Computer software consists primarily of software costs associated with an enterprise business solution within Arconic to drive common systems among all businesses. Amortization expense related to the intangible assets in the tables above for the years ended December 31, 2021, 2020, and 2019 was $17, $17, and $10, respectively. During the next five years, amortization expense related to these intangible assets is expected to decrease from $16 in 2022 to $2 in 2026. |
Leases_
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Arconic leases certain land and buildings, plant equipment, vehicles, and computer equipment, which have been classified as operating leases. Operating lease cost, which includes short-term leases and variable lease payments and approximates cash paid, was $59, $62, and $63 in 2021, 2020, and 2019, respectively. Right-of-use assets obtained in exchange for operating lease obligations in 2021 and 2020 were $17 and $46, respectively. Future minimum contractual operating lease obligations were as follows: December 31, 2021 2022 40 2023 30 2024 23 2025 17 2026 12 Thereafter 28 Total lease payments $ 150 Less: imputed interest 25 Present value of lease liabilities $ 125 The weighted-average remaining lease term and weighted-average discount rate for Arconic's operating leases at December 31, 2021 and 2020 was 6.1 and 6.6 years, respectively, and 5.8% and 5.9%, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2021 2020 6.00% Notes, due 2025 $ 700 $ 700 6.125% Notes, due 2028 900 600 Unamortized discounts and deferred financing costs (6) (22) $ 1,594 $ 1,278 2021 Activity —On March 3, 2021, the Company completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for an additional $300 aggregate principal amount of 6.125% Senior Secured Second-Lien Notes due 2028 (the “Additional 2028 Notes”). The Additional 2028 Notes were issued under the indenture governing Arconic’s existing 6.125% Senior Secured Second-Lien Notes due 2028 (see 2020 Activity below). Other than with respect to the date of issuance and issue price, the Additional 2028 Notes are treated as a single series with and have the same terms as the referenced existing notes. The Additional 2028 Notes were sold at 106.25% of par (i.e., a premium) and, after reflecting a discount to the initial purchasers of the Additional 2028 Notes, the Company received $315 in net proceeds from the debt offering. Arconic used the net proceeds of this issuance to fund an annuitization of certain U.S. defined benefit pension plan obligations (see Note H ). The premium ($19) and costs to complete the financing ($5) were deferred and are being amortized to interest expense over the term of the Additional 2028 Notes. The amortization of the premium is reflected as a reduction to interest expense and the amortization of the costs to complete the financing is reflected as an addition to interest expense. Interest on the Additional 2028 Notes is paid semi-annually in February and August and commenced August 15, 2021. 2020 Activity —In connection with the capital structure to be established at the time of the Separation, Arconic secured $1,200 in third-party indebtedness. On February 7, 2020, Arconic completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $600 of 6.125% Senior Secured Second-Lien Notes due 2028 (the “2028 Notes”). The Company received $593 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2028 Notes. Also, on March 25, 2020, Arconic entered into a credit agreement, which provided a $600 Senior Secured First-Lien Term Loan B Facility (variable rate and seven-year term) (the “Term Loan”) and a $1,000 Senior Secured First-Lien Revolving Credit Facility (variable rate and five-year term) (the “Credit Facility”), with a syndicate of lenders and issuers named therein (the “Credit Agreement”). The Company received $575 in net proceeds from the Term Loan reflecting upfront fees and costs to enter into the financing arrangement. The Company used a portion of the $1,168 in net proceeds from the aggregate indebtedness to make a $728 payment to ParentCo on April 1, 2020 to fund the transfer of certain net assets from ParentCo to Arconic in connection with the completion of the Separation (see Note A ). The payment to ParentCo was calculated as the difference between (i) the $1,168 of net proceeds from the aggregate indebtedness and (ii) the difference between a beginning cash balance at the Separation Date of $500, as provided for in the Separation and Distribution Agreement, and the amount of cash held by Arconic Businesses at March 31, 2020 ($60 – the sum of this amount and the aggregate indebtedness in (i) equals the sum of Cash and cash equivalents and Restricted cash on the Company’s Combined Balance Sheet as of March 31, 2020). On April 2, 2020, Arconic borrowed $500, which was subject to an interest rate equal to the sum of the three-month LIBOR plus a 2.0% applicable margin, under the Credit Facility. This borrowing was a proactive measure taken by the Company to bolster its liquidity and preserve financial flexibility in light of uncertainties resulting from the COVID-19 pandemic (see Note A ). On May 13, 2020, Arconic executed a refinancing of its existing Credit Agreement in order to provide improved financial flexibility. Arconic completed a Rule 144A (U.S. Securities Act of 1933, as amended) debt offering for $700 of 6.0% Senior Secured First-Lien Notes due 2025 (the “2025 Notes”). The Company received $691 in net proceeds from the debt offering reflecting a discount to the initial purchasers of the 2025 Notes. Additionally, Arconic entered into a credit agreement with a syndicate of lenders named therein and Deutsche Bank AG New York Branch, as administrative agent (the “ABL Credit Agreement”). The ABL Credit Agreement provides for a senior secured asset-based revolving credit facility in an aggregate principal amount of $800 (see Note V ), including a letter of credit sub-facility and a swingline loan sub-facility (the “ABL Credit Facility”). In addition, the ABL Credit Facility includes an accordion feature allowing the Company to request one or more increases to the revolving commitments in an aggregate principal amount up to $350 (see Note V ). Arconic used the net proceeds from the new indebtedness, together with cash on hand, to prepay in full the obligations outstanding under both the Term Loan ($600) and Credit Facility ($500) and to terminate in full the commitments under the Credit Agreement. Descriptions of the 2028 Notes, 2025 Notes, and ABL Credit Agreement are set forth below. In connection with the issuance of the 2028 Notes and the execution of the Credit Agreement, the Company paid $42 in discounts to the initial purchasers and/or upfront fees and costs (the “debt issuance costs”), of which $30 was attributable to the Term Loan and the Credit Facility. The debt issuance costs were initially deferred and were being amortized to interest expense over the respective terms of the 2028 Notes, the Term Loan, and the Credit Facility. In connection with the issuance of the 2025 Notes and the execution of the ABL Credit Agreement, the Company paid $15 in discounts to the initial purchasers and/or upfront fees and costs (the “new debt issuance costs”). As a result of applying both debt modification and debt extinguishment accounting, as appropriate based on the lender mix for each debt instrument, to the debt refinancing, the Company was required to write off $16 of the $30 in debt issuance costs and immediately expense $3 of the $15 in new debt issuance costs. This $19 was reported within Interest expense on the Company’s Statement of Consolidated Operations. The remaining $14 in debt issuance costs continued to be deferred and the remaining $12 in new debt issuance costs were deferred; both are being amortized to interest expense over the respective terms of the 2025 Notes and the ABL Credit Agreement. Separately, in August 2012, ParentCo and the Iowa Finance Authority entered into a loan agreement for the proceeds from the issuance of $250 in Midwestern Disaster Area Revenue Bonds Series 2012 due 2042 (the “Bonds”). The Bonds were issued by the Iowa Finance Authority pursuant to the Heartland Disaster Tax Relief Act of 2008 for the purpose of financing all or part of the cost of acquiring, constructing, reconstructing, and renovating certain facilities (the “Project”) at Arconic’s rolling mill plant in Davenport, IA. The loan proceeds could only be used for this purpose and, therefore, were included on the Company’s Combined Balance Sheet for all periods prior to the Separation Date. In accordance with the Separation and Distribution Agreement, as well as a Second Supplemental Tax and Project Certificate and Agreement, dated March 31, 2020, to the Tax Exemption Certificate and Agreement, dated August 14, 2012, (collectively, the “Tax Agreement”), ParentCo remained the borrower associated with the Bonds and Arconic is the legal owner of the Davenport facility, including the Project. The Company has no financial obligations related to the future debt service of the Bonds but is required to continue to operate, and maintain the location of, the Project in accordance with the Tax Agreement. Accordingly, the $250 carrying value of the Bonds, as well as related accrued interest, was removed from Arconic’s Consolidated Balance Sheet in connection with the Separation. 2028 Notes —Interest on the 2028 Notes is paid semi-annually in February and August and commenced August 15, 2020. Arconic has the option to redeem the 2028 Notes on at least 10 days, but not more than 60 days, prior notice to the holders of the 2028 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after February 14, 2023 at a redemption price specified in the indenture (up to 103.063% of the principal amount plus any accrued and unpaid interest in each case). At any time prior to February 15, 2023, the Company may redeem all or a part of the notes at a redemption price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” redemption price determined as the greater of (1) 1.0% of the principal amount of such notes and (2) the excess, if any, of (a) the present value at the date of redemption of (i) 103.063% of the principal amount of such notes plus (ii) all required interest payments due on such notes (excluding accrued but unpaid interest to the date of redemption) through February 15, 2023, computed using a discount rate equal to, generally, the yield to maturity of United States Treasury securities with a constant maturity as of the date of redemption plus 50 basis points, over (b) the principal amount of such notes, as of, and accrued and unpaid interest, if any, to, but excluding, the date of redemption. Also, at any time prior to February 15, 2023, Arconic may, on one or more occasions, redeem up to 40% of the aggregate principal amount of the notes at a redemption price equal to 106.125% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, with the net cash proceeds of certain equity offerings, if at least 60% of the original aggregate principal amount of the notes remains outstanding immediately after such redemption and the redemption occurs within 120 days of the date of such equity offering. Additionally, the 2028 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus any accrued and unpaid interest on the 2028 Notes repurchased. The 2028 Notes are senior secured obligations of Arconic and do not entitle the holders to any registration rights pursuant to a registration rights agreement. The Company does not intend to file a registration statement with respect to resales of or an exchange offer for the 2028 Notes. The 2028 Notes are guaranteed on a senior secured basis by Arconic and its subsidiaries that are guarantors (the “subsidiary guarantors” and, together with Arconic, the “guarantors”) under the ABL Credit Agreement (see below). Each of the subsidiary guarantors will be released from their 2028 Notes guarantees upon the occurrence of certain events, including the release of such guarantor from its obligations as a guarantor under the ABL Credit Agreement. The 2028 Notes indenture includes several customary affirmative covenants. Additionally, the 2028 Notes indenture contains several negative covenants, that, subject to certain exceptions, limit the Company’s ability to, among other things, (i) make investments, loans, advances, guarantees, and acquisitions, (ii) pay dividends on or make other distributions in respect of capital stock and make other restricted payments and investments (as defined in the 2028 Notes), (iii) sell or transfer certain assets, and (iv) create liens on assets to secure debt. The 2028 Notes rank equally in right of payment with all of Arconic’s existing and future senior indebtedness, including the facility under the ABL Credit Agreement (see below); rank senior in right of payment to any future subordinated obligations of Arconic; and are effectively subordinated to Arconic’s existing and future secured indebtedness that is secured on a first priority basis, including the 2025 Notes and the facility under the ABL Credit Agreement, to the extent of the value of property and assets securing such indebtedness. 2025 Notes— Interest on the 2025 Notes is paid semi-annually in May and November and commenced November 15, 2020. Arconic has the option to redeem the 2025 Notes on at least 10 days, but not more than 60 days, prior notice to the holders of the 2025 Notes under multiple scenarios, including, in whole or in part, at any time or from time to time after May 14, 2022 at a redemption price specified in the indenture (up to 103.0% of the principal amount plus any accrued and unpaid interest in each case). At any time prior to May 15, 2022, the Company may redeem all or a part of the notes at a redemption price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” redemption price determined as the greater of (1) 1.0% of the principal amount of such notes and (2) the excess, if any, of (a) the present value at the date of redemption of (i) 103.0% of the principal amount of such notes plus (ii) all required interest payments due on such notes (excluding accrued but unpaid interest to the date of redemption) through May 15, 2022, computed using a discount rate equal to, generally, the yield to maturity of United States Treasury securities with a constant maturity as of the date of redemption plus 50 basis points, over (b) the principal amount of such notes, as of, and accrued and unpaid interest, if any, to, but excluding, the date of redemption. Also, at any time prior to May 15, 2022, Arconic may, on one or more occasions, redeem up to 40% of the aggregate principal amount of the notes at a redemption price equal to 106.0% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, with the net cash proceeds of certain equity offerings, if at least 60% of the original aggregate principal amount of the notes remains outstanding immediately after such redemption and the redemption occurs within 120 days of the date of such equity offering. Additionally, the 2025 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the indenture) at a repurchase price in cash equal to 101% of the aggregate principal amount of the 2025 Notes repurchased, plus any accrued and unpaid interest on the 2025 Notes repurchased. The 2025 Notes are senior secured obligations of Arconic and do not entitle the holders to any registration rights pursuant to a registration rights agreement. The Company does not intend to file a registration statement with respect to resales of or an exchange offer for the 2025 Notes. The 2025 Notes are guaranteed on a senior secured basis by Arconic and its subsidiaries that are guarantors (the “subsidiary guarantors” and, together with Arconic, the “guarantors”) under the ABL Credit Agreement (see below). Each of the subsidiary guarantors will be released from their 2025 Notes guarantees upon the occurrence of certain events, including the release of such guarantor from its obligations as a guarantor under the ABL Credit Agreement. The 2025 Notes indenture includes several customary affirmative covenants. Additionally, the 2025 Notes indenture contains several negative covenants, that, subject to certain exceptions, limit the Company’s ability to, among other things, (i) pay dividends on or make other distributions in respect of capital stock and make other restricted payments and investments (as defined in the 2025 Notes), (ii) sell or transfer certain assets, (iii) incur indebtedness, and (iv) create liens on assets to secure debt. The 2025 Notes are secured on a first priority basis by certain defined collateral (generally consisting of the Company’s and the Guarantors’ equipment, material owned U.S. real property, intellectual property, certain stock, and other tangible and intangible personal property, in each case, subject to certain exceptions) and on a second priority basis by certain other assets (generally consisting of substantially all of the accounts receivable, inventory, deposit accounts, securities accounts, commodities accounts, and cash assets of the Company and the Guarantors, and the proceeds thereof). ABL Credit Agreement— Availability under the ABL Credit Facility is subject to a monthly borrowing base calculation, which, in general, is determined by applying a predetermined percentage to the amount of eligible accounts receivable and inventory, less customary reserves. As of December 31, 2021, the available balance was $790. The ABL Credit Facility is scheduled to mature on May 13, 2025, unless extended or earlier terminated in accordance with the ABL Credit Agreement. Under the provision of the ABL Credit Agreement, Arconic will pay a quarterly commitment fee ranging from 0.250% to 0.375% (based on Arconic’s leverage ratio) per annum on the unused portion of the ABL Credit Facility, which will be determined based on the Company’s average daily utilization. The ABL Credit Facility was undrawn as of both December 31, 2021 and 2020 and no amounts were borrowed since inception. The ABL Credit Facility is subject to an interest rate for U.S. dollar borrowings equal to an applicable margin plus, at the Company’s option, of either (a) base rate (“ABR”) determined by reference to the highest of (1) Deutsche Bank AG New York Branch’s “prime rate,” (2) the greater of the federal funds effective rate and the overnight bank funding rate, plus 0.5%, and (3) the one month adjusted LIBO Rate, plus 1% per annum or (b) an adjusted LIBO Rate (which will not be less than 0.75% per annum) (“LIBOR”). The applicable margin for the ABL Credit Facility through June 30, 2021 was (a) 1.25% for ABR loans and (b) 2.25% for LIBOR loans. Thereafter, the applicable margin for the ABL Credit Facility is (a) 0.75% to 1.25% per annum for ABR loans and (b) 1.75% per annum to 2.25% per annum for LIBOR loans based on the average daily excess availability (as defined under the ABL Credit Agreement). Accordingly, the interest rates for the ABL Credit Facility will fluctuate based on changes in the ABR, LIBOR, and/or future changes in the average daily excess availability. All obligations under the ABL Credit Facility are unconditionally guaranteed, jointly and severally, by substantially all of the direct and indirect wholly-owned material subsidiaries of the Company that are organized under the laws of the United States, any state thereof or the District of Columbia, subject to certain exceptions (collectively, the “Guarantors”). The Company and the Guarantors entered into a guarantee under the ABL Credit Agreement concurrently with the effectiveness of the ABL Credit Agreement. Subject to certain limitations, the ABL Credit Facility is secured on a first priority basis by certain defined collateral (generally consisting of substantially all of the accounts receivable, inventory, deposit accounts, securities accounts, commodities accounts, and cash assets of the Company and the Guarantors, and the proceeds thereof) and on a second-priority basis by certain defined collateral under the 2025 Notes (generally consisting of the Company and the Guarantors’ equipment, material owned U.S. real property, intellectual property, certain stock, and other tangible and intangible personal property, in each case, subject to exceptions as defined in the 2025 Notes). The Company and the Guarantors entered into collateral agreements concurrently with the effectiveness of the ABL Credit Agreement. The ABL Credit Facility contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit the Company’s and its subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to enter into restrictive agreements, to make certain investments, loans, advances, guarantees and acquisitions, to prepay certain indebtedness and to pay dividends, to make other distributions or redemptions/repurchases, in respect of the Company’s and its subsidiaries’ equity interests, to engage in transactions with affiliates and to amend certain material documents. In addition, the ABL Credit Facility contains a financial maintenance covenant applicable to any fiscal quarter in which the excess availability is less than the greater of (a) 10% of the lesser of (x) the aggregate amount of the commitments under the ABL Credit Facility and (y) the borrowing base and (b) $50. In such circumstances, until such time as excess availability shall have exceeded such threshold for at least 30 consecutive days, the Company would be required to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00. The ABL Credit Facility also requires the Company and its subsidiaries to maintain substantially all of the Company’s cash in accounts that are subject to the control of the agent, which control becomes applicable when (a) an event of default under the facility occurs and is continuing until the first day thereafter on which no event of default shall exist or (b) excess availability is less than the greater of (i) 12.5% of the lesser of (x) the aggregate amount of the commitments under the ABL Credit Facility and (y) the borrowing base or (ii) $62.5 for five The ABL Credit Facility contains customary events of default, including with respect to a failure to make payments thereunder, cross-default and cross-acceleration, certain bankruptcy and insolvency events, and customary change of control events. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | Cash Flow Information Cash paid for interest and income taxes was as follows: 2021 2020 2019 Interest, net of amount capitalized* $ 87 $ 48 $ 107 Income taxes, net of amount refunded 26 27 29 __________________ * In 2019, amount includes cash paid by ParentCo related to interest expense allocated to Arconic (see Cost Allocations in Note A ). For all periods presented, both Cash and cash equivalents and restricted cash at beginning of year and Cash and cash equivalents and restricted cash at end of year includes Restricted cash of less than $0.03. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Divestitures Itapissuma. On February 1, 2020, Arconic completed the sale of its aluminum rolling mill (aseptic foil and sheet products) in Itapissuma, Brazil to Companhia Brasileira de Alumínio for a net $46 in cash. In December 2020, the Company paid $4 in cash to Companhia Brasileira de Alumínio to settle certain working capital and other post-closing adjustments. Additionally, in June 2021, the Company paid $2 in cash to Companhia Brasileira de Alumínio to settle the remaining working capital and other post-closing adjustments. Arconic has recognized a cumulative loss of $60 (pretax) on this transaction, composed of the following: a charge of $53 in 2019 for the non-cash impairment of the carrying value (i.e., write-down to fair value) of the rolling mill’s net assets, primarily properties, plants, and equipment, as a result of entering into an agreement in August 2019 to sell this rolling mill; a charge of $6 in February 2020 for further necessary adjustments upon completion of the divestiture; and a charge of $1 in March 2021 for a then-proposed final settlement of the remaining post-closing adjustments and other items. Each of these amounts were recorded in Restructuring and other charges (see Note E ) on the accompanying Statement of Consolidated Operations in the respective reporting periods. This transaction is no longer subject to post-closing adjustments. Prior to the divestiture, this rolling mill’s operating results and assets and liabilities were reported in Arconic’s Rolled Products segment. The rolling mill generated third-party sales of $143 in 2019 and, at the time of divestiture, had approximately 500 employees. Changwon. On March 1, 2020, Arconic completed the sale of its hard alloy extrusions plant in South Korea to SeAH Besteel Corporation for a net $55 in cash, resulting in a gain of $31 (pretax), which was recorded in Restructuring and other charges (see Note E ) on the accompanying Statement of Consolidated Operations. The gain is net of a $6 write-off of related goodwill. In May 2020, the Company received an additional $1 in cash as a result of a post-closing adjustment, which was previously contemplated in the aforementioned gain. This transaction is no longer subject to post-closing adjustments. Prior to the divestiture, this plant’s operating results and assets and liabilities were reported in Arconic’s Extrusions segment. The extrusions plant generated third-party sales of $51 in 2019 and, at the time of divestiture, had approximately 160 employees. Texarkana. In October 2018, Arconic sold its Texarkana (Texas) rolling mill and cast house, which had a combined net book value of $63, to Ta Chen International, Inc. for $302 in cash, subject to post-closing adjustments, plus additional contingent consideration of up to $50. The contingent consideration related to the achievement of various milestones associated with operationalizing the rolling mill equipment within 36 months of the transaction closing date. The Texarkana rolling mill facility had previously been idle since late 2009. In early 2016, the Company restarted the Texarkana cast house to meet demand for aluminum slab. While owned by Arconic, the operating results and assets and liabilities of the business were included in the Company’s Rolled Products segment. As part of the sale agreement, Arconic continued to produce aluminum slab at the facility for a period of 18 months through a lease back of the cast house building and equipment, after which time Ta Chen performed toll processing of metal for the Company for a period of six months. Arconic supplied Ta Chen with cold-rolled aluminum coil during this 24-month period. The sale of the rolling mill and cast house was accounted for separately. In 2018, a gain on the sale of the rolling mill of $154, including fair value of contingent consideration of $5, was recorded in Restructuring and other charges on the Company’s Statement of Consolidated Operations. In 2020 and 2019, Arconic received additional contingent consideration of $25 and $20, respectively, which was recorded as a gain in Restructuring and other charges (see Note E ) on the accompanying Statement of Consolidated Operations in the respective reporting periods. As of December 31, 2020, there was no remaining contingent consideration associated with this transaction. The Company had continuing involvement related to the lease back of the cast house. As a result, Arconic continued to recognize as assets, as well as depreciate, the cast house building and equipment that it sold to Ta Chen, and recorded the portion of the cash proceeds associated with the sale of the cast house assets as a noncurrent liability, including a deferred gain of $95. As of December 31, 2018, the Company’s Consolidated Balance Sheet included $24 in Properties, plants, and equipment, net, $22 in Deferred income taxes (noncurrent asset), and $119 in Other noncurrent liabilities and deferred credits. On January 1, 2019, Arconic adopted the lease accounting guidance (see Recently Adopted Accounting Guidance in Note B ), under which the Company’s continuing involvement no longer required deferral of the recognition of the sale of the cast house. Accordingly, the carrying value of these assets and liabilities were reclassified to equity reflecting a net $73 cumulative effect of an accounting change on the date of adoption. |
Contingencies and Commitments_
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Unless specifically described to the contrary, all matters within Note T are the full responsibility of Arconic pursuant to the Separation and Distribution Agreement (see Note A ). Additionally, the Separation and Distribution Agreement provides for cross-indemnities between the Company and Howmet for claims subject to indemnification. Contingencies Environmental Matters. Arconic participates in environmental assessments and cleanups at several locations. These include owned or operating facilities and adjoining properties, previously owned or operating facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as, among others, the nature and extent of contamination, changes in remedial requirements, and technological changes. The Company’s remediation reserve balance was $64 and $156 (of which $15 and $90, respectively, was classified as a current liability) at December 31, 2021 and 2020, respectively, and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. In 2021, the remediation reserve was reduced by $5 due to a reversal of an $11 liability (a credit was recorded in Cost of goods sold) previously established for the Massena West location (see below) and a charge of $2 (recorded in Restructuring and other charges – see Note E ) for the assumption of a remediation obligation related to a legal settlement associated with a former operating site. Additionally, the change to the remediation reserve includes a charge of $4 for other items including incremental estimated expenditures associated with active remediation systems and/or monitoring and inspection programs at several sites. In 2020, the remediation reserve was reduced by $2 due to the reversal of a $5 liability (a credit was recorded in Restructuring and other charges – see Note E ) previously established by ParentCo, as the underlying obligation no longer exists based on an assessment completed by Arconic management; a charge of $1 (recorded in Restructuring and other charges – see Note E ) to establish a liability related to the divestiture of a rolling mill in Brazil (see Note S ); and a charge of $2 (recorded in Cost of goods sold) for incremental estimated expenditures associated with active remediation systems and/or monitoring and inspection programs at several sites. In 2019, the remediation reserve was increased by $25 (recorded in Cost of goods sold) related to the Grasse River project (see Massena West, NY below). Payments related to remediation expenses applied against the reserve were $84, $82, and $56 in 2021, 2020, and 2019, respectively, which include expenditures currently mandated, as well as those not required by any regulatory authority or third party. The change in the reserve in 2021 reflects a decrease of $3 for other items and the change in the reserve in 2020 reflects both an increase of $13 for obligations transferred from ParentCo on April 1, 2020 in connection with the Separation (see below) and a decrease of $3 for other items. The Separation and Distribution Agreement includes provisions for the assignment or allocation of environmental liabilities between Arconic and Howmet Aerospace, including certain remediation obligations associated with environmental matters. In general, the respective parties are responsible for the environmental matters associated with their operations, and with the properties and other assets assigned to each. Additionally, the Separation and Distribution Agreement lists environmental matters with a shared responsibility between the two companies with an allocation of responsibility and the lead party responsible for management of each matter. For matters assigned to Arconic and Howmet Aerospace under the Separation and Distribution Agreement, the companies have agreed to indemnify each other in whole or in part for environmental liabilities arising from operations prior to the Separation Date. The following description provides details regarding the Company’s largest reserve (next largest is $5), which relates to one of Arconic’s current operating locations. Massena West, NY — Arconic has an ongoing remediation project related to the Grasse River, which is adjacent to the Company’s Massena plant site. Many years ago, it was determined that sediments and fish in the river contain varying levels of polychlorinated biphenyls (PCBs). The project, which was selected by the U.S. Environmental Protection Agency (EPA) in a Record of Decision issued in April 2013, is aimed at capping PCB contaminated sediments with concentration in excess of one part per million in the main channel of the river and dredging PCB contaminated sediments in the near-shore areas where total PCBs exceed one part per million. Arconic completed the final design phase of the project, which was approved by the EPA in March 2019. Following the EPA’s approval, the actual remediation fieldwork commenced. In June 2019, the Company increased the reserve balance by $25 due to changes required in the EPA-approved remedial design and post-construction monitoring. These changes were necessary due to several items, the majority of which related to navigation issues identified by a local seaway development company. Accordingly, the EPA requested an addendum to the final remedial design be submitted to address these issues. The proposed remedy is to dredge certain of the sediments originally identified for capping in the affected areas of the Grasse River, resulting in incremental project costs. The EPA approved the proposal in April 2020. In 2021, following substantial completion of remedial construction activities on the Grasse River and an assessment of anticipated remaining future costs, primarily for post-construction monitoring, the reserve was reduced by $11. As the project progresses, further changes to the reserve may be required due to factors such as, among others, additional changes in remedial requirements, increased site restoration costs, and incremental ongoing operation and maintenance costs. At December 31, 2021 and 2020, the reserve balance associated with this matter was $30 and $115, respectively. Approximately $5 of the remaining expenditures represent costs that are expected to be paid in 2022. The other $25 in remaining expenditures, most of which relates to operations, maintenance, and monitoring work, are expected to occur between 2023 and 2027. Litigation. All references to ParentCo in the matters described under this section Litigation refer to Arconic Inc. only and do not include its subsidiaries, except as otherwise stated. Airbus Matters —In 2017, Airbus and various of its affiliates (“Airbus”) filed three separate confidential requests for arbitration against ParentCo and various of its then affiliates, one of which is Arconic Manufacturing (GB) Limited, an Arconic Corporation subsidiary, with the International Chamber of Commerce. Airbus specifically alleged that a defect existed in certain of our products sold to Airbus under various separate contracts. Airbus’s claims included claims of breach of certain alleged express and implied warranties and negligence. On June 12, 2020, Airbus filed its Second Memorial in the arbitration in which it claimed damages attributed specifically to our products. In two of the three arbitrations, Airbus was seeking damages in excess of $200 and an order of indemnification with respect to conditional future losses; in the third of the arbitrations, Airbus was seeking an order of indemnification with respect to contingent future losses. A private and confidential arbitration hearing occurred in late October 2020 on two of the three requests for arbitration and on March 26, 2021, the Arbitral Panel issued final awards in those two arbitrations in favor of the Respondents (including Arconic Manufacturing (GB) Limited), rejecting Airbus’s claims and denying Airbus the relief sought. The hearing on the third request for arbitration was stayed. On June 1, 2021, the parties entered into a confidential agreement in settlement of all claims related to the matter. These proceedings are now fully resolved and closed. Federal Antimonopoly Service Of The Russian Federation Litigation —The Federal Antimonopoly Service of the Russian Federation (“FAS”) filed a lawsuit on March 17, 2020 with the Arbitrazh (State Commercial) Court of Samara Region against two of the Company’s subsidiaries, Arconic Rus Investment Holdings LLC (“LLC ARIH”) and AlTi Forge Holding Sarl (the “Arconic Russian Holding Companies”), naming Elliott Associates L.P., Elliott International L.P., and Elliot International Capital Advisors Inc. (“Elliott”) as third parties. Also named as interested parties are: Parent Co. and certain of its foreign subsidiaries; and Arconic Netherland B.V., the Company’s subsidiary that directly and indirectly owns LLC ARIH, Arconic SMZ JSC and JSC AlTi Forge (the “Arconic Russian Subsidiaries”). FAS alleges that Elliott indirectly acquired control over the Arconic Russian Subsidiaries when, in May 2019, directors who had previously been nominated by Elliott and appointed or elected to Parent Co.’s board of directors pursuant to certain settlement agreements among Parent Co. and Elliott constituted a majority of that board as a result of a reduction in the size of the board. FAS claims alleged non-compliance with Russian Federal Law No. 57-FZ, which governs foreign ownership of certain Russian companies and requires certain governmental approvals for a foreign investor to acquire control over strategically important Russian companies. On April 6, 2020, the Samara Court granted injunctions against the Arconic Russian Holding Companies prohibiting the taking of certain corporate governance actions, including with respect to: (i) the disposal of shares in the Arconic Russian Subsidiaries; and (ii) the making of certain decisions with respect to the Arconic Russian Subsidiaries, including decisions regarding the payment of dividends, placement of bonds, amendment of bylaws and internal documents, the appointment, change and compensation of the Arconic Russian Subsidiaries’ CEO, and the election of the Arconic Russian Subsidiaries’ board of directors. On April 29, 2020, the Arconic Russian Holding Companies simultaneously filed an appeal and motion to revoke the previously issued injunctions. Both the appeal and motion to revoke were denied. A hearing on the merits of the claim was scheduled for June 8, 2021 but was postponed until August 19, 2021, again postponed until December 21, 2021, and most recently further postponed until February 22, 2022. As a consequence of the alleged violation, FAS is seeking removal and exclusion of the Arconic Russian Holding Companies from the affairs of the Arconic Russian Subsidiaries, resulting in the deprivation of the benefits of their ownership interests in the Arconic Russian Subsidiaries, including the rights currently restricted in the injunctions granted on April 6, 2020. We continue to operate the Samara location without restrictions other than as disclosed above, and we maintain a renewable intercompany loan facility that could be, but has not as yet been, utilized. Approximately $79, or 24%, of Arconic’s Cash and cash equivalents at December 31, 2021 is currently held in Russia and is not available for dividends. Cash and cash equivalents held in Russia represented 7% of Arconic’s liquidity (comprised of Cash and cash equivalents of $335 and undrawn availability of $790 under Arconic’s ABL Credit Agreement) at December 31, 2021. In addition, approximately $968, or 16% of third-party sales (including packaging, industrial, aerospace, and defense), and approximately $87, or 13% of Segment Adjusted EBITDA, for the Rolled Products segment for the year ended December 31, 2021 were generated by our Samara, Russia facility. We cannot at this time reasonably estimate the likelihood or timing of any resolution of the regulatory proceedings or underlying claims, whether such resolution would include the removal of the injunctions or the imposition of additional restrictions, or whether we would divest assets related to the Samara facility. The potential impacts of an unfavorable resolution of the proceedings and underlying claims include: • continued unavailability of funds for the payment of dividends to Arconic Corporation; • decreases in or loss of third-party sales and Segment Adjusted EBITDA generated by our Samara facility; • restrictions on capital investments in the facility; • losses on any potential divestiture; • the inability of other Arconic facilities to assume capacity to offset decreases in sales or Segment Adjusted EBIDTA or to assume potential divested capacity; and • increased expenses related to relocation of capacity to other facilities. Any of the foregoing could have a significant indirect impact on the performance of our other locations. In addition, any impact on our ability to fulfill delivery obligations could subject us to reputational harm and potential litigation involving customers and suppliers. Continued restrictions on our operation of the Samara facility would have a material adverse effect on our financial condition, results of operations or cash flows. Given the preliminary nature of this matter and the uncertainty of litigation and of efforts to resolve this matter with FAS, we cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Reynobond PE— On June 13, 2017, the Grenfell Tower in London, U.K. caught fire resulting in fatalities, injuries, and damage. A French subsidiary of Arconic Corporation (of ParentCo at that time), Arconic Architectural Products SAS (AAP SAS), supplied a product, Reynobond PE, to its customer, a cladding system fabricator, which used the product as one component of the overall cladding system on Grenfell Tower. The fabricator supplied its portion of the cladding system to the facade installer, who then completed and installed the system under the direction of the general contractor. Neither ParentCo nor AAP SAS was involved in the design or installation of the system used at the Grenfell Tower, nor did it have a role in any other aspect of the building’s refurbishment or original design. Regulatory investigations into the overall Grenfell Tower matter are being conducted, including a criminal investigation by the London Metropolitan Police Service (the “Police”), a Public Inquiry by the British government, and a consumer protection inquiry by a French public authority. The Public Inquiry was announced by the U.K. Prime Minister on June 15, 2017 and subsequently was authorized to examine the circumstances leading up to and surrounding the Grenfell Tower fire in order to make findings of fact and recommendations to the U.K. Government on matters such as the design, construction, and modification of the building, the role of relevant public authorities and contractors, the implications of the fire for the adequacy and enforcement of relevant regulations, arrangements in place for handling emergencies, and the handling of concerns from residents, among other things. Hearings for Phase 1 of the Public Inquiry began on May 21, 2018 and concluded on December 12, 2018. Phase 2 hearings of the Public Inquiry began in early 2020, following which a final report will be written and subsequently published. As Phase 2 of the public inquiry continues, the testimony has supported AAP SAS’s position that the choice of materials and the responsibility of ensuring compliance of the cladding system with relevant U.K. building code and regulations was with those individuals or entities who designed and installed the cladding system such as the architects, fabricators, contractors and building owners. The ongoing hearings in the U.K. have revealed serious doubts about whether these third parties had the necessary qualifications or expertise to carry out the refurbishment work at Grenfell Tower, adequately oversaw the process, conducted the required fire safety testing or analysis, or otherwise complied with their obligations under U.K. regulations. AAP SAS is participating as a Core Participant in the Public Inquiry and is also cooperating with the ongoing parallel investigation by the Police. Arconic Corporation does not sell and ParentCo previously stopped selling the PE product for architectural use on buildings. Given the preliminary nature of these investigations and the uncertainty of potential future litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. United Kingdom Litigation. Multiple claimant groups comprised of survivors and estates of decedents of the Grenfell Tower fire have filed claims in the U.K. arising from that fire, including as follows: • On June 12, 2020, four claimants represented by Birnberg Peirce Ltd filed suit against AAP SAS. • On June 12, 2020, two claimants represented by Howe & Co Solicitors filed suit against AAP SAS. • On June 26, 2020, three claimants represented by Russell-Cooke LLP filed suit against AAP SAS. • On December 23, 2020, several additional suits were filed by claimant groups comprised of survivors and estates of decedents. These suits were all filed against the same group of 23 defendants: AAP SAS, Arconic Corporation, Howmet Aerospace Inc., the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, the London Fire Commissioner, the UK Home Office, The Ministry of Housing, Communities and Local Government, Rydon Maintenance Ltd, Celotex Ltd, Saint-Gobain Construction Products UK Limited, Kingspan Insulation Limited, Kingspan Group PLC (suits have since been discontinued), Studio E Architects Ltd (In liquidation), Harley Facades Ltd, Harley Curtain Wall Limited (In liquidation), CEP Architectural Facades Ltd, Exova (U.K.) Ltd, CS Stokes & Associates Ltd, Artelia Projects UK Limited (suits have since been discontinued), Whirlpool UK Appliances Limited, Whirlpool Company Polska Sp.z.o.o. and Whirlpool Corporation. These suits include as follows (represent preliminary best estimates of claimants in each suit): ◦ Seven claimants represented by Deighton Pierce Glynn; ◦ Six (previously five) claimants represented by SMQ Legal Services; ◦ Three (previously four) claimants represented by Scott Moncrieff; ◦ Twenty-seven (previously thirty-one) claimants represented by Saunders Law; ◦ Thirty-three (previously thirty-four) claimants represented by Russell Cooke LLP; ◦ Forty-seven (previously forty) claimants represented by Imran Khan & Partners; ◦ Fifty-eight (previously sixty-one) claimants represented by Howe & Co.; ◦ One hundred fourteen claimants represented by Hodge Jones and Allen Solicitor; ◦ Twenty-three (previously nineteen) claimants represented by Hickman & Rose; ◦ Ten (previously five) claimants represented by Duncan Lewis Solicitors; ◦ One hundred thirteen (previously one hundred eighteen) claimants represented by Birnberg Peirce; ◦ Three hundred forty-one claimants represented by Bindmans LLP; ◦ Seventy-six (previously eighty-two) claimants represented by Bhatt Murphy Ltd; and ◦ Twenty-four (previously twenty-seven) claimants represented by Slater & Gordon. Multiple claimant groups comprised of emergency responders who attended the Grenfell Tower fire have also filed claims against AAP SAS arising from that fire, including as follows: • On June 11, 2020, 98 (previously 80) firefighters represented by Thompsons Solicitors filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, and the London Fire Commissioner. Since then, another 10 (previously 7) firefighters have sought to be added to the suit. • On June 12, 2020, 36 (previously 27) police officers represented by Penningtons Manches Cooper LLP filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, London Fire Commissioner, and the Commissioner of the Police of the Metropolis. Since then, some claimants have withdrawn and others have sought to be added to the suit. • On June 12, 2020, two firefighters represented by Pattinson and Brewer filed suit against AAP SAS, as well as the Royal Borough of Kensington and Chelsea, the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd, Celotex Ltd, Exova (U.K.) Ltd, Rydon Maintenance Ltd, Studio E Architects Ltd, Harley Facades Ltd, CEP Architectural Facades Ltd, CS Stokes & Associates Ltd, and the London Fire Commissioner. A third firefighter, also represented by Pattinson and Brewer, brought a claim against the same defendants on June 15, 2020. One of the original firefighter claimants has now withdrawn from the suit. On December 17, 2020, a claim was issued by the Royal Borough of Kensington and Chelsea and the Royal Borough of Kensington and Chelsea Tenant Management Organisation Ltd against: (1) Whirlpool Company Polska Spolka z Organiczona; and (2) AAP SAS. The Claimants seek damages in respect of their own losses and/or a contribution to the extent that they are found to be liable by the London High Court for any losses arising out of the Grenfell Tower fire on June 14, 2017. All of these claims were filed in the High Court in London. On October 2, 2020, the High Court ordered that: (a) the suits of the survivors and estates of decedents that were issued in June 2020 be stayed until a hearing scheduled by the High Court for June 9-10, 2021; and (b) that the suits of emergency responders be stayed until a hearing scheduled by the High Court for July 7-8, 2021. The hearing scheduled for June 9-10, 2021 was subsequently vacated by the Court. The above-mentioned suits brought by: (1) the survivors and estates of decedents; (2) the emergency responders; and (3) the Royal Borough of Kensington and Chelsea for contributions, were heard together at a procedural hearing on July 7-8, 2021, before Senior Master Fontaine. At the hearing, the Senior Master made several directions for the future management of the Grenfell Tower litigation, including staying all suits against Arconic Corporation and its affiliates until a directions hearing to be held on the first available date after April 4, 2022. The duration of the stay is intended to allow Arconic Corporation, along with several other co-defendants to the above-mentioned litigations, to engage in preliminary discussions with the claimants' legal representatives in an attempt to reach a mutually agreeable settlement. The parties have now agreed to overarching terms as to the form of Alternative Dispute Resolution that they are willing to participate in. Those discussions are ongoing. Given the preliminary nature of these matters and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome in any of the above-referenced disputes. Behrens et al. v. Arconic Inc. et al. On June 6, 2019, 247 plaintiffs comprised of survivors and estates of decedents of the Grenfell Tower fire filed a complaint against “Arconic Inc., Alcoa Inc., and Arconic Architectural Products, LLC” (collectively, for purposes of the description of such proceeding, the “ParentCo Defendants”), as well as Saint-Gobain Corporation, d/b/a Celotex and Whirlpool Corporation, in the Court of Common Pleas of Philadelphia County. The complaint alleges claims under Pennsylvania state law for products liability and wrongful death related to the fire. In particular, the plaintiffs allege that the ParentCo Defendants knowingly supplied a dangerous product (Reynobond PE) for installation on the Grenfell Tower despite knowing that Reynobond PE was unfit for use above a certain height. The ParentCo Defendants removed the case to the United States District Court for the Eastern District of Pennsylvania on June 19, 2019. On August 29, 2019, the ParentCo Defendants moved to dismiss the complaint on the bases, among other things, that: (i) the case should be heard in the United Kingdom, not the United States; (ii) there is no jurisdiction over necessary parties; and (iii) Pennsylvania product liability law does not apply to manufacture and sale of product overseas. On December 23, 2019, the Court issued an order denying the motion to dismiss the complaint on bases (ii) and (iii) suggesting a procedure for limited discovery followed by further briefing on those subjects. On September 16, 2020, the Court issued an order granting Defendants’ motion to dismiss on forum non conveniens grounds, subject to certain conditions, determining that the United Kingdom, and not the United States, is the appropriate place for plaintiffs to bring their case. Plaintiffs subsequently filed a motion for reconsideration, which the Court denied on November 23, 2020. Plaintiffs are appealing this judgment; ParentCo Defendants are cross-appealing one of the conditions. The briefing has now been completed and the parties are awaiting an oral argument date. Given the preliminary nature of this matter and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Howard v. Arconic Inc. et al. A purported class action complaint related to the Grenfell Tower fire was filed on August 11, 2017 in the United States District Court for the Western District of Pennsylvania against ParentCo and Klaus Kleinfeld. A related purported class action complaint was filed in the United States District Court for the Western District of Pennsylvania on September 15, 2017, under the caption Sullivan v. Arconic Inc. et al. , against ParentCo, three former ParentCo executives, several current and former ParentCo directors, and banks that acted as underwriters for ParentCo’s September 18, 2014 preferred stock offering (the “Preferred Offering”). The plaintiff in Sullivan had previously filed a purported class action against the same defendants on July 18, 2017 in the Southern District of New York and, on August 25, 2017, voluntarily dismissed that action without prejudice. On February 7, 2018, on motion from certain putative class members, the court consolidated Howard and Sullivan , closed Sullivan , and appointed lead plaintiffs in the consolidated case. On April 9, 2018, the lead plaintiffs in the consolidated purported class action filed a consolidated amended complaint. The consolidated amended complaint alleged that the registration statement for the Preferred Offering contained false and misleading statements and omitted to state material information, including by allegedly failing to disclose material uncertainties and trends resulting from sales of Reynobond PE for unsafe uses and by allegedly expressing a belief that appropriate risk management and compliance programs had been adopted while concealing the risks posed by Reynobond PE sales. The consolidated amended complaint also alleged that between November 4, 2013 and June 23, 2017 ParentCo and Kleinfeld made false and misleading statements and failed to disclose material information about ParentCo’s commitment to safety, business and financial prospects, and the risks of the Reynobond PE product, including in ParentCo’s Form 10-Ks for the fiscal years ended December 31, 2013, 2014, 2015, and 2016, its Form 10-Qs and quarterly financial press releases from the fourth quarter of 2013 through the first quarter of 2017, its 2013, 2014, 2015, and 2016 Annual Reports, its 2016 Annual Highlights Report, and on its official website. The consolidated amended complaint sought, among other things, unspecified compensatory damages and an award of attorney and expert fees and expenses. On June 8, 2018, all defendants moved to dismiss the consolidated amended complaint for failure to state a claim. On June 21, 2019, the Court granted the defendants’ motion to dismiss in full, dismissing the consolidated amended complaint in its entirety without prejudice. On July 23, 2019, the lead plaintiffs filed a second amended complaint. The second amended complaint alleges generally the same claims as the consolidated amended complaint with certain additional allegations, as well as claims that the risk factors set forth in the registration statement for the Preferred Offering were inadequate and that certain additional statements in the sources identified above were misleading. The second amended complaint seeks, among other things, unspecified compensatory damages and an award of attorney and expert fees and expenses. On September 11, 2019, all defendants moved to dismiss the second amended complaint. Plaintiffs’ opposition to that motion was filed on November 1, 2019 and all defendants filed a reply brief on November 26, 2019. On June 22, 2020, counsel for Arconic Corporation and the individual defendants filed a letter apprising the Court of a recent decision by the Third Circuit and discussing its relevance to the pending motion to dismiss. Pursuant to an Order by the Court directing the plaintiffs to respond to this letter, the plaintiffs filed a letter response on July 9, 2020. On June 23, 2021, the Court granted in part and denied in part the defendants’ motion to dismiss the second amended complaint. The Court dismissed with prejudice plaintiffs’ claim against ParentCo, certain officers and directors and the underwriters based on the registration statement for the Preferred Offering, with the exception of one statement and only as to purchases made before October 23, 2015. In addition, plaintiffs’ claim based on ParentCo’s statements in other SEC filings, in product brochures, and on websites was dismissed in its entirety as to Kleinfeld and dismissed in part and allowed in part as to ParentCo. The Court also dismissed the control-person liability claims in their entirety. On August 11, 2021, ParentCo filed a motion with the district court for certification of an interlocutory appeal and a stay pending appeal. The motion seeks to appeal the aspect of the court’s June 23, 2021 opinion concerning the complaint’s pleading of ParentCo’s alleged scienter. Plaintiffs filed an opposition to the motion on August 17, 2021, and ParentCo filed a reply brief on August 24, 2021. On August 12, 2021, defendants filed an answer to the second amended complaint. A status conference was held before the Court on January 11, 2022 during which the Court heard argument from both parties on the pending motion for certification of an interlocutory appeal. The motion remains pending before the district court. Given the preliminary nature of this matter and the uncertainty of litigation, Arconic Corporation cannot reasonably estimate at this time the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. Raul v. Albaugh, et al. On June 22, 2018, a derivative complaint was filed nominally on behalf of ParentCo by a purported ParentCo stockholder against the then members of ParentCo’s Board of Directors and Klaus Kleinfeld and Ken Giacobbe, naming ParentCo as a nominal defendant, in the United States District Court for the District of Delaware. The complaint raises similar allegations as the consolidated amended complaint and second amended complaint in Howard , as well as allegations that the defendants improperly authorized the sale of Reynobond PE for unsafe uses, and asserts claims under Section 14(a) of the Securities Exchange Act of 1934, as amended, and Delaware state law. On Ju |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Disclosure | Financial Instruments Fair Value— Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3—Inputs that are both significant to the fair value measurement and unobservable. The respective carrying value and fair value of Arconic’s financial instruments were as follows: 2021 2020 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 335 $ 335 $ 787 $ 787 Derivative instruments - assets 1 1 3 3 Short-term borrowings — — 14 14 Derivatives instruments - liabilities 23 23 2 2 Long-term debt 1,594 1,692 1,278 1,399 The following methods were used to estimate the fair value of financial instruments: Cash and cash equivalents and Short-term borrowings. The carrying amounts approximate fair value because of the short maturity of the instruments. The fair value amounts for Cash and cash equivalents were classified in Level 1 of the fair value hierarchy and Short-term borrowings were classified in Level 2 of the fair value hierarchy. Derivative instruments. The fair value of financial instruments that hedge forward sale commitments for aluminum and forward purchase commitments for aluminum, natural gas, and certain alloying materials was based on quoted market prices (e.g., aluminum prices on the 10-year London Metal Exchange forward curve) or other significant observable inputs (e.g., regional premiums for aluminum contracts) and were classified in Level 1 or Level 2 of the fair value hierarchy. Long-term debt. The fair value was based on quoted market prices for public debt and were classified in Level 2 of the fair value hierarchy. |
Subsequent Events_
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management evaluated all activity of Arconic and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements, except as described below. On January 5, 2022, Arconic entered into a one-year arrangement with a financial institution to sell certain customer receivables outright without recourse on a continuous basis. Under this arrangement, the Company will serve in an administrative capacity, including collection of the receivables from the respective customers and remittance of these cash collections to the financial institution. At no time can the outstanding balance due to the financial institution exceed $100. In January 2022, Arconic sold $113 in customer receivables, of which $77 were included in Receivables from customers on the accompanying Consolidated Balance Sheet as of December 31, 2021, and remitted $28 in cash collections to the financial institution. On February 16, 2022, the Company’s ABL Credit Agreement was amended to increase the capacity of the ABL Credit Facility to $1,200 from $800 (see Note Q ). Additionally, the accordion feature of the ABL Credit Facility has been revised to provide for the Company to request a further increase to the revolving commitments in an aggregate principal amount equal to the greater of $350 and the excess of the borrowing base over the ABL Credit facility commitments. Arconic paid approximately $1 in upfront costs associated with this amendment. The ABL Credit Facility remains undrawn at February 18, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements of Arconic are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). In accordance with GAAP, certain situations require management to make estimates based on judgments and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates upon subsequent resolution of identified matters. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations related to the COVID-19 pandemic. Management has made its best estimates using all relevant information available at the time, but it is possible that these estimates will differ from actual results and affect the Consolidated Financial Statements in future periods and potentially require adverse adjustments to the recoverability of goodwill and long-lived assets, the realizability of deferred tax assets and other judgments and estimations and assumptions that may be impacted by the COVID-19 pandemic. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements of Arconic include the accounts of Arconic and companies in which Arconic has a controlling interest. Intercompany transactions have been eliminated. Management evaluates whether an Arconic entity or interest is a variable interest entity and whether Arconic is the primary beneficiary. Consolidation is required if both of these criteria are met. Arconic does not have any variable interest entities requiring consolidation. Prior to the Separation Date, Arconic did not operate as a separate, standalone entity. Arconic’s operations were included in ParentCo’s financial results. Accordingly, for all periods prior to the Separation Date, the accompanying Consolidated Financial Statements were prepared from ParentCo’s historical accounting records and were presented on a standalone basis as if the Arconic Corporation Businesses had been conducted independently from ParentCo. Such Consolidated Financial Statements include the historical operations that were considered to comprise the Arconic Corporation Businesses, as well as certain assets and liabilities that were historically held at ParentCo’s corporate level but were specifically identifiable or otherwise attributable to Arconic. ParentCo’s net investment in these operations was reflected as Parent Company net investment on the accompanying Consolidated Financial Statements. All significant transactions and accounts within Arconic were eliminated. All significant intercompany transactions between ParentCo and Arconic were included within Parent Company net investment on the accompanying Consolidated Financial Statements. |
Cost Allocations | Cost Allocations. The description and information on cost allocations is applicable for all periods included in the Consolidated Financial Statements prior to the Separation Date. The Consolidated Financial Statements of Arconic include general corporate expenses of ParentCo that were not historically charged to the Arconic Corporation Businesses for certain support functions that were provided on a centralized basis, such as expenses related to finance, audit, legal, information technology, human resources, communications, compliance, facilities, employee benefits and compensation, and research and development activities. These general corporate expenses were included on the accompanying Statement of Consolidated Operations within Cost of goods sold, Selling, general administrative and other expenses, and Research and development expenses. These expenses were allocated to Arconic on the basis of direct usage when identifiable, with the remainder allocated based on the Arconic Corporation Businesses’ segment revenue as a percentage of ParentCo’s total segment revenue, as reported in the respective periods. All external debt not directly attributable to Arconic was excluded from the accompanying Consolidated Balance Sheet. Financing costs related to these debt obligations were allocated to Arconic based on the ratio of capital invested by ParentCo in the Arconic Corporation Businesses to the total capital invested by ParentCo in both the Arconic Corporation Businesses and the Howmet Aerospace Businesses, and were included on the accompanying Statement of Consolidated Operations within Interest expense. |
Cash Equivalents | Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. For all periods prior to the Separation Date, the cash and cash equivalents held by ParentCo at the corporate level were not attributed to Arconic. Only cash amounts specifically attributable to Arconic were reflected on the Company's Consolidated Financial Statements. |
Inventory Valuation | Inventory Valuation. Inventories are carried at the lower of cost and net realizable value, with cost for most inventories determined under the average cost method. The cost of certain non-U.S. inventories is determined under the first in, first out (FIFO) method. |
Properties, Plants, and Equipment | Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Also, interest related to the construction of qualifying assets is capitalized as part of the construction costs. Depreciation is recorded on the straight-line method at rates based on the estimated useful lives of the assets. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery Rolled Products 33 22 Building and Construction Systems 25 18 Extrusions 32 20 Repairs and maintenance are charged to expense as incurred. Generally, gains or losses from the sale of asset groups are recorded in Restructuring and other charges while gains and losses from the sale of individual assets are recorded in Other expenses (income), net. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the related operations (asset group) to the carrying value of the associated assets. An impairment loss would be recognized when the carrying value of the assets exceeds the estimated undiscounted net cash flows of the asset group. The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of the assets also require significant judgments. |
Goodwill | Goodwill. Goodwill is not amortized; it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell, exit, or realign a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods. The fair value that could be realized in an actual transaction may differ from that used to evaluate goodwill for impairment. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Arconic has three reporting units—the Rolled Products segment, the Building and Construction Systems segment, and the Extrusions segment—all of which contained goodwill at the time of the Company’s annual 2021 review of goodwill for impairment. Immediately preceding this review, the carrying value of goodwill for Rolled Products, Building and Construction Systems, and Extrusions was $254, $70, and $65, respectively. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Arconic determines annually, based on facts and circumstances, which of its reporting units will be subject to the qualitative assessment. For those reporting units where a qualitative assessment is either not performed or for which the conclusion is that an impairment is more likely than not, a quantitative impairment test will be performed. Arconic’s policy is that a quantitative impairment test be performed for each reporting unit at least once during every three-year period. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). These factors are then classified by the type of impact they would have on the estimated fair value using positive, neutral, and adverse categories based on current business conditions. Additionally, an assessment of the level of impact that a particular factor would have on the estimated fair value is determined using high, medium, and low weighting. Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (WACC) between the current and prior years for each reporting unit. Under the quantitative impairment test, the evaluation of the recoverability of goodwill involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Arconic uses a DCF model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. Several significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales growth (volumes and pricing), production costs, capital spending, working capital levels, and discount rate. Certain of these assumptions may vary significantly among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The WACC rate for the individual reporting units is estimated by management with the assistance of valuation experts. In the event the estimated fair value of a reporting unit per the DCF model is less than the carrying value, Arconic would recognize an impairment charge equal to the excess of the reporting unit’s carrying value over its fair value without exceeding the total amount of goodwill applicable to that reporting unit. During the 2021 annual review of goodwill for impairment, management proceeded directly to the quantitative impairment test for all three of the Company’s reporting units. The result of this review indicated the estimated fair value for both the Rolled Products and Building and Construction Systems reporting units was substantially in excess of the respective carrying value, resulting in no impairment. Conversely, the estimated fair value for the Extrusions reporting unit was lower than the associated carrying value by an amount greater than the carrying value of the Extrusions reporting unit’s goodwill. Accordingly, Arconic recorded an impairment charge of $65 in the fourth quarter of 2021. As a result, the Extrusions reporting unit no longer contains any goodwill. The impairment of the Extrusion reporting unit’s goodwill resulted from a combination of market-based factors, including continued delays in aerospace market improvement, the expectation that significant cost inflation will extend beyond 2021 resulting in increasingly limited ability for management to drive margin expansion, and a longer than previously anticipated shift in product mix to lower margin industrial products to replace most of the lost aerospace volume. Further, current market factors also resulted in a 150-basis point increase in the WACC compared to the fourth quarter of 2020. Accordingly, given the factors noted above, the estimated fair value of the Extrusions reporting unit was less than the carrying value resulting in a full impairment of its goodwill. |
Other Intangible Assets | Other Intangible Assets. Intangible assets with finite useful lives are amortized on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other Rolled Products 7 15 Building and Construction Systems 4 20 Extrusions 4 10 |
Leases | Leases. Arconic determines whether a contract contains a lease at inception. The Company leases certain land and buildings, plant equipment, vehicles, and computer equipment, which have been classified as operating leases. Certain real estate leases include one or more options to renew; the exercise of lease renewal options is at the Company’s discretion. Arconic includes renewal option periods in the lease term when it is determined that the options are reasonably certain to be exercised. Certain of the Company’s real estate lease agreements include rental payments that either have fixed contractual increases over time or adjust periodically for inflation. Also, certain of the Company’s lease agreements include variable lease payments. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and is recorded as lease cost in the period incurred. Operating lease right-of-use assets and lease liabilities with an initial term greater than 12 months are recorded on the balance sheet at the present value of the future minimum lease payments over the lease term calculated at the lease commencement date and are recognized as lease expense on a straight-line basis over the lease term. Arconic uses an incremental collateralized borrowing rate based on the information available at the lease commencement date in determining the present value of future payments, as most of the Company’s leases do not provide an implicit rate. The operating lease right-of-use assets also include any lease prepayments made and are reduced by lease incentives and accrued exit costs. |
Environmental Matters | Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery, which are recognized when probable and as agreements are reached with third parties. The estimates may also include costs related to other potentially responsible parties to the extent that Arconic has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. |
Litigation Matters | Litigation Matters. For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is deemed to be probable and the loss is reasonably estimable. Management determines the likelihood of an unfavorable outcome based on many factors such as, among others, the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters. Once an unfavorable outcome is deemed probable, management weighs the probability of estimated losses, and the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed to be reasonably possible, the matter is disclosed and no liability is recorded. With respect to unasserted claims or assessments, management must first determine the probability an assertion will be made is likely; then a determination as to the likelihood of an unfavorable outcome and the ability to reasonably estimate the potential loss is made. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. |
Revenue Recognition | Revenue Recognition. Arconic’s contracts with customers are comprised of acknowledged purchase orders incorporating the Company’s standard terms and conditions, or for larger customers, may also generally include terms under negotiated multi-year agreements. These customer contracts typically consist of the manufacture of products, which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. Arconic produces aluminum sheet and plate; extruded and machined parts; integrated aluminum architectural systems; and architectural extrusions. Transfer of control is assessed based on alternative use of the products produced and Arconic’s enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership, and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). In certain circumstances, Arconic receives advanced payments from its customers for product to be delivered in future periods. These advanced payments are recorded as deferred revenue until the product is delivered and title and risk of loss have passed to the customer in accordance with the terms of the contract. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities on the Consolidated Balance Sheet. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits. For all periods prior to January 1, 2020 (see below), certain employees attributable to the Arconic Corporation Businesses participated in defined benefit pension and other postretirement benefit plans sponsored by ParentCo (the “Shared Plans”), which also included participants attributable to non-Arconic Corporation Businesses. Arconic accounted for the portion of the Shared Plans related to its employees as multiemployer benefit plans. Accordingly, Arconic did not record an asset or liability to recognize any portion of the funded status of the Shared Plans. However, the related expense recorded by the Company was based primarily on pensionable compensation and estimated interest costs related to participants attributable to the Arconic Corporation Businesses. Prior to the Separation Date, certain other ParentCo plans that were entirely attributable to employees of the Arconic Corporation Businesses (“Direct Plans”) were accounted for as defined benefit pension and other postretirement benefit plans. Accordingly, the funded and unfunded position of each Direct Plan was recorded in the Consolidated Balance Sheet. Actuarial gains and losses that have not yet been recognized in earnings were recorded in accumulated other comprehensive income, net of taxes, until they were amortized as a component of net periodic benefit cost. The determination of benefit obligations and recognition of expenses related to the Direct Plans is dependent on various assumptions, including discount rates, long-term expected rates of return on plan assets, and future compensation increases. ParentCo’s management developed each assumption using relevant company experience in conjunction with market-related data for each individual location in which such plans exist. In preparation for the Separation, effective January 1, 2020, certain of the Shared Plans were separated into standalone plans for both Arconic (“New Direct Plans”) and ParentCo (see Note H ). Additionally, effective April 1, 2020, certain of the other remaining Shared Plans were assumed by Arconic (“Additional New Direct Plans”) (See Note H ). Accordingly, beginning on the respective effective dates, the New Direct Plans and the Additional New Direct Plans are accounted for as defined benefit pension and other postretirement plans. Additionally, the Direct Plans continue to be accounted for as defined benefit pension and other postretirement plans. |
Stock-Based Compensation | Stock-Based Compensation. For all periods prior to the Separation Date, eligible employees attributable to the Arconic Corporation Businesses participated in ParentCo’s stock-based compensation plan. The compensation expense recorded by Arconic included the expense associated with these employees, as well as the expense associated with an allocation of stock-based compensation expense for ParentCo’s corporate employees (see Cost Allocations in Note A ). For all periods after the Separation Date, Arconic recorded stock-based compensation expense for all of the Company's employees eligible to participate in Arconic’s stock-based compensation plan. The following describes the manner in which stock-based compensation expense was initially determined for both Arconic and ParentCo. Compensation expense for employee equity grants is recognized using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. The fair value of stock options is estimated on the date of grant using a lattice-pricing model. The fair value of performance stock units containing a market condition is valued using a Monte Carlo valuation model. Determining the fair value at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. |
Income Taxes | Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Arconic’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. For all periods prior to the Separation Date, the Arconic Corporation Businesses were included in the income tax filings of ParentCo. The provision for income taxes was determined in the same manner described above, but on a on a separate return methodology as if Arconic was a standalone taxpayer filing hypothetical income tax returns where applicable. Any additional accrued tax liability or refund arising as a result of this approach was assumed to be immediately settled with ParentCo as a component of Parent Company net investment. Deferred taxes were also determined in the same manner described above and were reflected in the Consolidated Balance Sheet for net operating losses, credits or other attributes to the extent that such attributes were expected to transfer to Arconic upon the Separation. Any difference from attributes generated in a hypothetical return on a separate return basis was adjusted as a component of Parent Company net investment. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Arconic’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also re-measured to reflect changes in underlying tax rates due to law changes and the grant and lapse of tax holidays. Arconic applies a tax law ordering approach when considering the need for a valuation allowance on net operating losses expected to offset Global Intangible Low Taxed Income (GILTI) income inclusions. Under this approach, reductions in cash tax savings are not considered as part of the valuation allowance assessment. Instead, future GILTI inclusions are considered a source of taxable income that support the realizability of deferred tax assets. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed its examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. |
Foreign Currency | Foreign Currency. The local currency is the functional currency for Arconic’s significant operations outside the United States, except for operations in Russia, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Arconic’s operations is made based on the appropriate economic and management indicators. |
Recently Adopted and Issued Accounting Guidance | Recently Adopted Accounting Guidance. On January 1, 2021, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to accounting for income taxes. The FASB issued this guidance to simplify various aspects related to the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. These changes include the removal of certain exceptions and the simplification of several provisions, including: requiring an entity to recognize tax that is partially based on income, such as franchise tax, as income-based tax and account for additional amounts incurred as non-income based tax; requiring an entity to evaluate when a step up in tax basis of goodwill should be considered part of the original business combination or a separate transaction; and requiring an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. The Company will need to continue to consider this guidance in future periods. On January 1, 2020, Arconic adopted changes issued by the Financial Accounting Standards Board (FASB) to credit losses. This guidance added a new impairment model (known as the current expected credit loss (CECL) model), which is based on expected losses rather than incurred losses. Under this model, an entity is required to recognize an allowance equivalent to its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. This model does not have a minimum threshold for recognition of impairment losses and requires the measurement of expected credit losses on assets that have a low risk of loss. The adoption of this guidance did not have a material impact on the Consolidated Financial Statements. This guidance will need to be considered in future assessments of credit losses. Effective December 31, 2020, Arconic adopted changes issued by the FASB that modify disclosures for defined benefit pension plans and other postretirement benefit plans. These modifications consist of the elimination, addition, and clarification of several disclosures aimed at improving the effectiveness of such disclosure. Changes that impact Arconic’s disclosure include the following: (i) elimination of presenting the amounts in accumulated other comprehensive income expected to be recognized (i.e., amortization of net actuarial losses and prior service costs) as non-service components of net periodic benefit cost over the next fiscal year; (ii) for postretirement health care benefits, elimination of the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit cost and (b) benefit obligation; and (iii) addition of an explanation of the reasons for significant gains and losses related to the changes in benefit obligations for the reporting period. The remaining changes under this guidance either do not represent a change to the Company’s previous disclosures or are not applicable. Other than applying the disclosure changes (see Note H ), the adoption of this guidance did not have an impact on the Consolidated Financial Statements. On January 1, 2019, Arconic adopted changes issued by the FASB to the accounting and presentation of leases. These changes require lessees to recognize a right-of-use asset and lease liability on the balance sheet, initially measured at the present value of the future lease payments for all operating leases with a term greater than 12 months. These changes were applied using the modified retrospective approach as of the date of adoption, under which leases existing at, or entered into after, January 1, 2019 were required to be measured and recognized on the Consolidated Balance Sheet. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed, among other things, the Company to carry forward the historical lease classification. The Company also elected to separate lease components from non-lease components for all classes of assets. The adoption of this new guidance resulted in the Company recording operating lease right-of-use assets and lease liabilities of $150 on the Consolidated Balance Sheet as of January 1, 2019. Also, the Company reclassified a net $73 to Parent Company net investment comprised of $119 from Other noncurrent liabilities and deferred credits, $24 from Properties, plants, and equipment, net, and $22 from Deferred income tax assets reflecting the cumulative effect of an accounting change related to the sale-leaseback of Arconic’s Texarkana (Texas) cast house (see Note S ). The adoption of the standard had no impact on the Statement of Consolidated Operations or Statement of Consolidated Cash Flows. See Note P for disclosures related to the Company’s operating leases. Recently Issued Accounting Guidance. In March 2020, the FASB issued guidance that provides optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. These expedients and exceptions may be used when applying GAAP, if certain criteria are met, to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of such reform. The purpose of this guidance is to provide relief to entities from experiencing unintended accounting and/or financial reporting outcomes or consequences due to reference rate reform. This guidance became effective immediately on March 12, 2020 and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022, after which time the expedients and exceptions expire. In January 2021, the FASB issued clarifying guidance to specify that certain of the optional expedients and exceptions apply to derivatives that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This additional guidance may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively in the manner previously described for the guidance issued on March 12, 2020. As of December 31, 2021, Arconic has not experienced any unintended outcomes or consequences of reference rate reform that would necessitate the adoption of this guidance. Additionally, the Company will not need to consider the application of this guidance related to its credit agreement, which is scheduled to mature on May 13, 2025 and provides a credit facility that is referenced to LIBOR in certain borrowing situations, as the terms of such agreement currently provide for a replacement rate if LIBOR is discontinued by the end of 2021 as expected. That said, management will continue to closely monitor all potential instances of reference rate reform to determine if adoption of this guidance becomes necessary in the future. |
The Separation and Basis of P_2
The Separation and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Costs Allocations | The following table reflects the allocations described above: 2020 2019 Cost of goods sold (1) $ — $ 14 Selling, general administrative, and other expenses (2) 25 115 Research and development expenses — 11 Provision for depreciation and amortization 1 10 Restructuring and other charges ( E ) 2 7 Interest expense ( F ) 28 115 Other (income), net (5) (6) _________________ (1) For all periods presented, amount principally relates to an allocation of expenses for ParentCo’s retained pension and other postretirement benefit obligations associated with closed and sold operations. (2) In 2020 (January through March) and 2019, amount includes an allocation of $18 and $40, respectively, for costs incurred by ParentCo associated with the Separation (see above). |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Weighed-Average Useful Lives of Properties, Plants, and Equipment | The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery Rolled Products 33 22 Building and Construction Systems 25 18 Extrusions 32 20 December 31, 2021 2020 Land and land rights $ 22 $ 23 Structures: Rolled Products 1,107 1,095 Building and Construction Systems 96 95 Extrusions 150 150 Other 152 153 1,505 1,493 Machinery and equipment: Rolled Products 4,816 4,787 Building and Construction Systems 203 205 Extrusions 523 520 Other 291 279 5,833 5,791 7,360 7,307 Less: accumulated depreciation and amortization 4,878 4,697 2,482 2,610 Construction work-in-progress 169 102 $ 2,651 $ 2,712 |
Schedule of Weighted-Average Useful Lives of Software and Other Intangible Assets by Reportable Segment | The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other Rolled Products 7 15 Building and Construction Systems 4 20 Extrusions 4 10 Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: December 31, 2021 Gross Accumulated Net carrying Computer software $ 555 $ (523) $ 32 Patents and licenses 27 (27) — Other 21 (15) 6 Total other intangible assets $ 603 $ (565) $ 38 December 31, 2020 Gross Accumulated Net carrying Computer software $ 550 $ (510) $ 40 Patents and licenses 28 (28) — Other 21 (14) 7 Total other intangible assets $ 599 $ (552) $ 47 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Major End Market Served | The following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. For the year ended December 31, Rolled Building and Extrusions Total 2021 Ground Transportation $ 2,697 $ — $ 102 $ 2,799 Building and Construction 244 1,011 — 1,255 Packaging 1,217 — — 1,217 Aerospace 512 — 119 631 Industrial Products and Other 1,517 — 85 1,602 Total end-market revenue $ 6,187 $ 1,011 $ 306 $ 7,504 2020 Ground Transportation $ 1,761 $ — $ 88 $ 1,849 Building and Construction 154 963 — 1,117 Packaging 773 — — 773 Aerospace 598 — 222 820 Industrial Products and Other 1,049 — 71 1,120 Total end-market revenue $ 4,335 $ 963 $ 381 $ 5,679 2019 Ground Transportation $ 2,428 $ — $ 117 $ 2,545 Building and Construction 182 1,118 — 1,300 Packaging 885 — — 885 Aerospace 1,016 — 291 1,307 Industrial Products and Other 1,098 — 142 1,240 Total end-market revenue $ 5,609 $ 1,118 $ 550 $ 7,277 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The operating results and assets of Arconic’s reportable segments were as follows (differences between segment totals and Arconic’s consolidated totals for line items not reconciled are in Corporate): Rolled Building and Extrusions Total 2021 Sales: Third-party sales $ 6,187 $ 1,011 $ 306 $ 7,504 Intersegment sales 33 — 1 34 Total sales $ 6,220 $ 1,011 $ 307 $ 7,538 Segment Adjusted EBITDA (1) $ 655 $ 130 $ (28) $ 757 Provision for depreciation and amortization $ 197 $ 17 $ 23 $ 237 2020 Sales: Third-party sales $ 4,335 $ 963 $ 381 $ 5,679 Intersegment sales 19 — 2 21 Total sales $ 4,354 $ 963 $ 383 $ 5,700 Segment Adjusted EBITDA (1),(2) $ 527 $ 137 $ (16) $ 648 Provision for depreciation and amortization $ 192 $ 18 $ 25 $ 235 2019 Sales: Third-party sales $ 5,609 $ 1,118 $ 550 $ 7,277 Intersegment sales 25 — 3 28 Total sales $ 5,634 $ 1,118 $ 553 $ 7,305 Segment Adjusted EBITDA (1),(2) $ 640 $ 126 $ (9) $ 757 Provision for depreciation and amortization $ 185 $ 18 $ 29 $ 232 Rolled Building and Extrusions Total 2021 Assets: Segment assets* $ 4,766 $ 416 $ 381 $ 5,563 Supplemental information: Capital expenditures 147 11 14 172 Goodwill 253 69 — 322 2020 Assets: Segment assets $ 3,895 $ 381 $ 420 $ 4,696 Supplemental information: Capital expenditures 134 7 11 152 Goodwill 254 71 65 390 _____________________ * In the 2021 fourth quarter, the Rolled Products segment recorded a net adjustment of $10 (approximately $7 of which relates to prior quarters in 2021) related to write-downs of scrap inventory. The out-of-period amounts were not material to any interim or annual period. The following tables reconcile certain segment information to consolidated totals: For the year ended December 31, 2021 2020 2019 Sales: Total segment sales $ 7,538 $ 5,700 $ 7,305 Elimination of intersegment sales (34) (21) (28) Other — (4) — Consolidated sales $ 7,504 $ 5,675 $ 7,277 The following table reconciles total Segment Adjusted EBITDA to consolidated net (loss) income attributable to Arconic Corporation: For the year ended December 31, 2021 2020 2019 Total Segment Adjusted EBITDA (1) $ 757 $ 648 $ 757 Unallocated amounts: Corporate expenses (1),(2) (33) (24) (53) Stock-based compensation expense ( K ) (22) (23) (40) Metal price lag (3) (16) (27) (39) Provision for depreciation and amortization (253) (251) (252) Impairment of goodwill ( B & O ) (65) — — Restructuring and other charges (4) ( E ) (624) (188) (87) Other (1),(5) (36) (55) (71) Operating (loss) income (292) 80 215 Interest expense ( F ) (100) (118) (115) Other (expenses) income, net (1) ( G ) (67) (70) 15 Benefit (Provision) for income taxes ( I ) 62 (1) 62 Net income attributable to noncontrolling interest — — — Consolidated net (loss) income attributable to Arconic (2) $ (397) $ (109) $ 177 (1) In preparation for the Separation, effective January 1, 2020, certain U.S. defined benefit pension and other postretirement plans previously sponsored by ParentCo were separated into standalone plans for both Arconic and Howmet Aerospace. Additionally, effective April 1, 2020, Arconic assumed a portion of the obligations associated with certain non-U.S. defined benefit pension plans that included participants related to both the Arconic Businesses and the Howmet Aerospace Businesses, as well as legacy defined benefit pension plans assigned to the Company as a result of the Separation. As a result, beginning in the first quarter of 2020 for these U.S. plans and in the second quarter of 2020 for these non-U.S. plans, Arconic applied defined benefit plan accounting resulting in benefit plan expense being recorded in operating income (service cost) and nonoperating income (nonservice cost). In all historical periods prior to these respective timeframes, Arconic was considered a participating employer in ParentCo’s defined benefit plans and, therefore, applied multiemployer plan accounting resulting in the Company’s share of benefit plan expense being recorded entirely in operating income. Also, Arconic is the plan sponsor of certain other non-U.S. defined benefit plans that contain participants related only to the Arconic Businesses and, therefore, the related benefit plan expense was recorded in accordance with defined benefit plan accounting in all periods presented. The following table presents the total benefit plan expense (excluding settlements and curtailments) recorded by Arconic based on the foregoing in each period presented: For the year ended December 31, 2021 2020 2019 Segment Adjusted EBITDA: Rolled Products $ (18) $ (17) $ (62) Building and Construction Systems (2) (2) (5) Extrusions (7) (7) (18) Segment total (27) (26) (85) Unallocated amounts: Corporate expenses — — (15) Other — 1 (9) Subtotal — 1 (24) Other expenses, net (60) (78) (2) Total $ (87) $ (103) $ (111) (2) Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amounts presented for all periods prior to second quarter 2020 include an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A ). (3) Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions. (4) In 2021 and 2020, Restructuring and other charges include a $584 and $199, respectively, charge for the settlement of certain employee retirement benefits virtually all of which were within the United States and the United Kingdom (see Note H ). (5) Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA. December 31, 2021 2020 Assets: Total segment assets $ 5,563 $ 4,696 Unallocated amounts: Cash and cash equivalents 335 787 Prepaid expenses and other current assets 55 53 Corporate fixed assets, net 153 187 Operating lease right-of-use assets 122 144 Deferred income taxes ( I ) 229 329 Other noncurrent assets 88 97 Other 35 21 Consolidated assets $ 6,580 $ 6,314 |
Schedule of Geographic Area Information | Geographic information for sales was as follows (based upon the country where the point of sale occurred): For the year ended December 31, 2021 2020 2019 Sales: United States $ 4,753 $ 3,697 $ 4,760 Russia* 793 535 512 China 696 429 486 Hungary* 625 462 614 France 260 207 277 United Kingdom 169 144 230 Other 208 201 398 $ 7,504 $ 5,675 $ 7,277 _____________________ * In all periods presented, sales of a portion of aluminum products from Arconic’s plant in Russia were completed through the Company’s international selling company located in Hungary. Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2021 2020 Long-lived assets: United States $ 1,998 $ 2,019 China 242 252 Russia 200 213 Hungary 98 108 United Kingdom 79 82 France 15 18 Other 19 20 $ 2,651 $ 2,712 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges | Restructuring and other charges for each year in the three-year period ended December 31, 2021 were comprised of the following: 2021 2020 2019 Settlements related to employee retirement benefit plans ( H ) $ 584 $ 199 $ — Asset impairments 34 15 68 Layoff costs 3 23 30 Net loss (gain) on divestitures of assets and businesses ( S ) 1 (49) (20) Other* 6 14 9 Reversals of previously recorded layoff and other costs (4) (14) — Restructuring and other charges $ 624 $ 188 $ 87 __________________ * In 2020 and 2019, Other includes $2 and $7, respectively, related to the allocation of ParentCo’s corporate restructuring activity to Arconic (see Cost Allocations in Note A ). |
Schedule of Restructuring Reserve | Activity and reserve balances for restructuring charges were as follows: Layoff costs Other costs Total Reserve balances at December 31, 2018 $ 1 $ 3 $ 4 Cash payments (12) (3) (15) Restructuring charges 30 2 32 Other (1) 1 (1) — Reserve balances at December 31, 2019 20 1 21 Separation-related adjustments (2) 2 — 2 Cash payments (24) (3) (27) Restructuring charges 23 4 27 Other (1) (8) (1) (9) Reserve balances at December 31, 2020 13 1 14 Cash payments (10) (5) (15) Restructuring charges 3 6 9 Other (1) (4) (1) (5) Reserve balances at December 31, 2021 (3) $ 2 $ 1 $ 3 _____________________ (1) Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. (2) Represents liabilities transferred from ParentCo on April 1, 2020 in connection with the Separation (see Note A ). (3) The remaining reserves are expected to be paid in cash during 2022. |
Restructuring And Related Costs By Segment | The Company does not include Restructuring and other charges in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows: For the year ended December 31, 2021 2020 2019 Rolled Products $ 1 $ (15) $ 47 Building and Construction Systems (2) 5 33 Extrusions 7 (14) 1 Segment total 6 (24) 81 Corporate 618 212 6 $ 624 $ 188 $ 87 |
Interest Cost Components (Table
Interest Cost Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest Cost Components [Abstract] | |
Interest Cost Components | For the year ended December 31, 2021 2020 2019 Amount charged to expense $ 100 $ 118 $ 115 Amount capitalized 4 6 12 $ 104 $ 124 $ 127 |
Other Expenses (Income), Net (T
Other Expenses (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expenses (Income), Net | For the year ended December 31, 2021 2020 2019 Non-service costs — Pension and OPEB ( H ) $ 60 $ 78 $ 2 Foreign currency losses (gains), net 5 11 (17) Net loss from asset sales — — 2 Interest income (1) (4) (13) Other, net 3 (15) 11 $ 67 $ 70 $ (15) |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Expenses Related to Pension and Other Postretirement Benefits | The following table summarizes the total expenses (excluding settlements and curtailments) recognized by Arconic related to the pension and other postretirement benefits described above: Pension benefits Other postretirement benefits For the year ended December 31, For the year ended December 31, Type of Plan Type of Expense 2021 2020 2019 2021 2020 2019 Cumulative Direct Plans Net periodic benefit cost $ 68 $ 82 $ 5 $ 19 $ 22 $ — Shared Plans Multiemployer contribution expense — — 61 — — 21 Shared Plans Cost allocation — (1) 20 — — 4 $ 68 $ 81 $ 86 $ 19 $ 22 $ 25 |
Schedule of Obligations and Funded Status | Pension benefits Other postretirement benefits December 31, 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 4,081 $ 142 $ 514 $ 1 Establishment of additional defined benefit plans - New Direct Plans — 3,688 — 567 Separation-related adjustments - Additional New Direct Plans — 550 — — Service cost 21 21 6 5 Interest cost 63 108 11 13 Amendments — — (30) (52) Actuarial (gains) losses (1) (105) 382 (23) 33 Benefits paid (183) (273) (38) (55) Settlements (1,051) (542) — — Foreign currency translation impact (9) 10 — — Divestitures — (5) — — Medicare part D subsidy receipts — — — 2 Benefit obligation at end of year (2) $ 2,817 $ 4,081 $ 440 $ 514 Change in plan assets Fair value of plan assets at beginning of year $ 2,754 $ 79 $ — $ — Establishment of additional defined benefit plans - New Direct Plans — 2,335 — — Separation-related adjustments - Additional New Direct Plans — 600 — — Actual return on plan assets 177 350 — — Employer contributions 458 271 — — Benefits paid (176) (266) — — Settlements (1,069) (595) — — Foreign currency translation impact (3) 3 — — Divestitures — (4) — — Administrative expenses (17) (19) — — Fair value of plan assets at end of year (2) $ 2,124 $ 2,754 $ — $ — Funded status (2) $ (693) $ (1,327) $ (440) $ (514) Amounts recognized on the Consolidated Balance Sheet: Noncurrent assets $ 32 $ 24 $ — $ — Current liabilities (8) (8) (29) (35) Noncurrent liabilities (717) (1,343) (411) (479) Net amount recognized $ (693) $ (1,327) $ (440) $ (514) Amounts recognized in Accumulated Other Comprehensive Loss (pretax): Net actuarial loss $ 1,389 $ 2,204 $ 166 $ 197 Prior service benefit — — (85) (61) Net amount recognized $ 1,389 $ 2,204 $ 81 $ 136 Other changes in plan assets and benefit obligations recognized in Net actuarial loss $ (137) $ 276 $ (23) $ 35 Amortization of net actuarial loss (678) (322) (8) (8) Prior service benefit — — (30) (52) Amortization of prior service benefit — — 6 4 Total $ (815) $ (46) $ (55) $ (21) _____________________ (1) At December 31, 2021 and 2020, actuarial (gains) losses for pension benefits includes approximately $(130) and $370, respectively, attributable to the change in the discount rate used to determine the benefit obligation (see “Assumptions” below). (2) At December 31, 2021, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,398, $1,744, and $654, respectively. At December 31, 2020, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $3,646, $2,379, and $1,267, respectively. |
Schedule of Pension Plan Benefit Obligations | Pension benefits December 31, 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit Projected benefit obligation $ 2,817 $ 4,081 Accumulated benefit obligation 2,807 4,068 The aggregate projected benefit obligation and fair value of plan assets for defined benefit Projected benefit obligation 2,472 3,795 Fair value of plan assets 1,747 2,444 The aggregate accumulated benefit obligation and fair value of plan assets for defined Accumulated benefit obligation 2,464 3,784 Fair value of plan assets 1,747 2,444 |
Schedule of Components of Net Periodic Benefit Cost | Pension benefits (1) Other postretirement benefits For the year ended December 31, 2021 2020 2019 2021 2020 Service cost $ 21 $ 21 $ 3 $ 6 $ 5 Interest cost 63 108 4 11 13 Expected return on plan assets (110) (170) (5) — — Amortization of net actuarial loss 94 123 3 8 8 Amortization of prior service benefit — — — (6) (4) Settlements (2) 584 199 — — — Net periodic benefit cost (3) $ 652 $ 281 $ 5 $ 19 $ 22 _____________________ (1) In 2021 and 2020, net periodic benefit cost for U.S pension plans was $653 and $220, respectively. (2) In 2021, Settlements were due to the purchase of a group annuity contract ($549 - see U.S. Pension Plan Annuitizations above) and the payment of lump-sum benefits ($35). In 2020, Settlements were due to two separate purchases of a group annuity contract (see U.S. Pension Plan Annuitizations and U.K. Pension Plan Annuitization above). (3) Service cost was included within Cost of goods sold, Settlements were included within Restructuring and other charges, and all other components were included in Other expenses (income), net on the accompanying Statement of Consolidated Operations. |
Schedule of Assumptions | Weighted average assumptions used to determine benefit obligations and net periodic benefit cost for pension and other postretirement benefit plans were as follows: Benefit obligations Net periodic benefit cost December 31, For the year ended December 31, 2021 2020 2021 2020 2019 Discount rate—pension plans 2.76 % 2.45 % 2.27 % 2.86 % 3.12 % Discount rate—other postretirement benefit plans 2.90 2.61 2.19 2.49 * Rate of compensation increase—pension plans 2.66 2.55 2.54 3.20 3.42 Expected long-term rate of return on plan assets—pension plans — — 4.91 6.09 6.73 ______________________ * In 2019 the Company's other postretirement benefit plans were not material. |
Schedule of Health Care Cost Trend Rates | Weighted-average assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows (non-U.S. plans are not material): 2021 2020 Health care cost trend rate assumed for next year 4.5 % 7.7 % Rate to which the cost trend rate gradually declines 4.7 % 4.6 % Year that the rate reaches the rate at which it is assumed to remain 2027 2026 |
Schedule of Plan Assets | Arconic’s pension plan investment policy and weighted average asset allocations at December 31, 2021 and 2020, by asset class, were as follows: Plan assets at December 31, Asset class Policy maximum 2021 2020 Equities 40% 31 % 20 % Fixed income 100% 56 51 Other investments 30% 13 29 Total 100 % 100 % The following table presents the fair value of pension plan assets classified under either the appropriate level of the fair value hierarchy or net asset value: December 31, 2021 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 12 $ — $ — $ 392 $ 404 Long/short equity hedge funds — — — 24 24 Private equity — — — 224 224 $ 12 $ — $ — $ 640 $ 652 Fixed Income: Intermediate and long duration government/credit $ 95 $ 412 $ — $ 612 $ 1,119 Other 23 — — 50 73 $ 118 $ 412 $ — $ 662 $ 1,192 Other investments: Real estate $ — $ — $ — $ 108 $ 108 Discretionary and systematic macro hedge funds — — — 99 99 Other — — — 77 77 $ — $ — $ — $ 284 $ 284 Total* $ 130 $ 412 $ — $ 1,586 $ 2,128 December 31, 2020 Level 1 Level 2 Level 3 Net Asset Value Total Equities: Equity securities $ 1 $ — $ — $ 276 $ 277 Long/short equity hedge funds — — — 107 107 Private equity — — — 143 143 $ 1 $ — $ — $ 526 $ 527 Fixed Income: Intermediate and long duration government/credit $ 117 $ 602 $ — $ 606 $ 1,325 Other 1 — — 44 45 $ 118 $ 602 $ — $ 650 $ 1,370 Other investments: Real estate $ 39 $ — $ — $ 93 $ 132 Discretionary and systematic macro hedge funds — — — 531 531 Other — — — 94 94 $ 39 $ — $ — $ 718 $ 757 Total* $ 158 $ 602 $ — $ 1,894 $ 2,654 ______________________ * As of December 31, 2021 and 2020, the total fair value of pension plan assets excludes a net payable of $4 and net receivable of $100, respectively, which represents securities not yet settled plus interest and dividends earned on various investments. |
Schedule of Expected Benefit Payments | Benefit payments expected to be paid to pension (funded and unfunded) and other postretirement benefit plan participants are as follows: For the year ended December 31, Pension benefits Other postretirement benefits 2022 $ 164 $ 29 2023 162 28 2024 160 27 2025 158 27 2026 158 27 2027 through 2031 763 128 $ 1,565 $ 266 |
Income Taxes_ (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income Before Income Taxes | The components of (loss) income before income taxes were as follows: For the year ended December 31, 2021 2020 2019 Domestic - United States $ (611) $ (126) $ 64 Foreign 152 18 51 $ (459) $ (108) $ 115 |
Components of Provision (Benefit) for Income Taxes | (Benefit) Provision for income taxes consisted of the following: For the year ended December 31, 2021 2020 2019 Current: Foreign $ 36 $ 13 $ 16 U.S. state and local 2 4 3 38 17 19 Deferred: U.S. federal* (86) (12) (83) Foreign (2) 4 11 U.S. state and local (12) (8) (9) (100) (16) (81) Total $ (62) $ 1 $ (62) __________________ |
Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to Arconic’s effective tax rate was as follows (the effective tax rate was a benefit on loss in 2021, a provision on loss in 2020, and a benefit on income in 2019): For the year ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Taxes on foreign operations - rate differential 0.1 (4.8) (6.0) Other taxes related to foreign operations (1) (5.0) (9.4) 23.5 U.S. state and local taxes, including federal benefit 2.6 3.3 (2.6) Statutory tax rate and law changes (0.3) (2.1) — Changes in valuation allowances (0.9) (7.3) 30.4 Non-taxable income - indemnification liability (2) 0.4 3.8 — Subsidiary recapitalizations and reorganizations (3) (1.1) (3.9) (121.8) Impairment of goodwill (3.0) — — Non-deductible costs related to the Separation ( A ) — (2.2) 3.5 Other (0.3) 0.7 (1.9) Effective tax rate 13.5 % (0.9) % (53.9) % _____________________ (1) In 2021 and 2019, this line item includes the impact of incremental income tax expense of $11 and $35, respectively, related to foreign operations that generated income subject to the global intangible low-taxed income inclusion under the U.S. Internal Revenue Code. (2) In 2020, this line item reflects the impact of the absence of income tax expense for non-taxable income generated by the reversal of a liability previously established at the Separation Date related to a potential indemnification to Howmet Aerospace by Arconic for an outstanding income tax matter in Spain (see Note G ). (3) In 2019, this line item represents the impact of a $140 net tax benefit related to a U.S. tax election that resulted in the deemed liquidation of a foreign subsidiary's assets into its U.S. tax parent. |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities based on the underlying attributes without regard to jurisdiction were as follows: 2021 2020 December 31, Deferred Deferred Deferred Deferred Employee benefits $ 331 $ — $ 503 $ 3 Tax loss carryforwards 206 — 167 — Deferred income/expense* 47 — 6 80 Interest 44 — 15 — Operating lease right-of-use assets and liabilities 30 30 37 37 Loss provisions 24 — 42 — Inventory accounting method change* — 97 — — Depreciation 13 267 13 256 Other 17 11 2 4 $ 712 $ 405 $ 785 $ 380 Valuation allowance (90) — (91) — $ 622 $ 405 $ 694 $ 380 _____________________ * In 2021, an accounting method change was filed to revoke the U.S. tax LIFO election. In 2020, the deferred tax liability associated with the U.S. tax LIFO election was presented as Deferred Income/expense. The following table details the expiration periods of the deferred tax assets presented above: December 31, 2021 Expires Expires No expiration (1) Other (2) Total Tax loss carryforwards $ 34 $ 30 $ 142 $ — $ 206 Employee benefits — — — 331 331 Other — 2 44 129 175 Valuation allowance (32) (6) (5) (47) (90) $ 2 $ 26 $ 181 $ 413 $ 622 ____________________ (1) Deferred tax assets with no expiration may still have annual limitations on utilization. (2) Employee benefits will become deductible for tax purposes over an extended period of time as contributions are made to employee benefit plans and payments are made to participants. Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. |
Changes in Valuation Allowance | The following table details the changes in the valuation allowance: December 31, 2021 2020 2019 Balance at beginning of year $ 91 $ 113 $ 107 Establishment of new allowances (1) 3 — — Net change to existing allowances (2) (3) (16) 18 Separation-related adjustments — 22 — Acquisitions and divestitures — (31) — Release of allowances — — (11) Foreign currency translation (1) 3 (1) Balance at end of year $ 90 $ 91 $ 113 ____________________ (1) This line item reflects valuation allowances initially established as a result of a change in management’s judgement regarding the realizability of deferred tax assets. (2) This line item reflects movements in previously established valuation allowances, which increase or decrease as the related deferred tax assets increase or decrease. Such movements occur as a result of remeasurement due to a tax rate change and changes in the underlying attributes of the deferred tax assets, including expiration of the attribute and reversal of the temporary difference that gave rise to the deferred tax assets. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2021 2020 2019 Balance at beginning of year $ 23 $ 21 $ 18 Additions for tax positions of prior years 1 — 4 Foreign currency translation (2) 2 (1) Balance at end of year $ 22 $ 23 $ 21 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Information Used to Compute Basic and Diluted EPS | The share information used to compute basic and diluted EPS attributable to Arconic common stockholders was as follows (shares in millions): 2021 2020 2019 Weighted-average shares outstanding – basic 109 109 109 Effect of dilutive share equivalents: Stock options — — — Stock units — — — Weighted-average shares outstanding – diluted 109 109 109 Anti-dilutive share equivalents: Stock units 3.3 2.6 — Stock options*: In-the-money 0.1 — — Out-of-the-money — — — 3.4 2.6 — ________________ * Stock options are in-the-money when the respective exercise price of each such option is less than the average market price of the Company’s common stock during the applicable period presented. Conversely, stock options are out-of-the-money when the respective exercise price of each such option is more than the average market price of the Company’s common stock during the applicable period presented. Out-of-the-money stock options never result in common share equivalents for purposes of diluted EPS regardless of whether a company generates net income or a net loss. As of December 31, 2020 there were 0.5 million out-of-the money stock options outstanding with a weighted average exercise price of $33.32. |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Activity for Stock Options and Stock Units | The activity for stock options and stock units, including performance stock units granted to the Company's executive officers, from January 1, 2021 through December 31, 2021 was as follows: Stock options Stock units Number of Weighted Number of Weighted Outstanding, January 1, 2021 1,026,808 $ 26.64 4,544,063 $ 10.36 Granted — — 919,170 35.21 Exercised (251,919) 23.69 — — Converted (1) — — (1,125,983) 12.84 Expired or forfeited (183,983) 34.11 (197,177) 17.56 Performance share adjustment (2) — — (226,736) 10.02 Outstanding, December 31, 2021 590,906 25.56 3,913,337 15.14 (1) The number of converted units includes 343,738 shares “withheld” to meet the Company’s statutory tax withholding requirements related to the income earned by the employees as a result of vesting in the units. (2) In 2021, the Company adjusted the target payout of those performance stock awards granted in 2020. Since the grant date, these awards have been accounted for based on a payout at 100% of target. However, in 2021 the payout for these awards was estimated to be at 8.3% of target. Accordingly, the shares outstanding for these awards from grant date through the date of adjustment were adjusted to reflect the probable payout percentage. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following table details the activity of the three components that comprise Accumulated other comprehensive (loss) income for Arconic (such activity for Noncontrolling interest was immaterial for all periods presented): 2021 2020 2019 Pension and other postretirement benefits ( H ) Balance at beginning of period $ (1,791) $ (43) $ (32) Establishment of additional defined benefit plans — (1,752) — Separation-related adjustments ( A ) — (50) — Other comprehensive income (loss): Unrecognized net actuarial loss and prior service cost/benefit 190 (259) (16) Tax (expense) benefit (43) 62 3 Total Other comprehensive income (loss) before reclassifications, net of tax 147 (197) (13) Amortization of net actuarial loss and prior service cost/benefit (1) 680 326 3 Tax expense (2) (157) (75) (1) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 523 251 2 Total Other comprehensive income (loss) 670 54 (11) Balance at end of period $ (1,121) $ (1,791) $ (43) Foreign currency translation Balance at beginning of period $ 29 $ 338 $ 282 Separation-related adjustments ( A ) — (396) — Other comprehensive (loss) income: Foreign currency translation (3) (4) 65 56 Net amount reclassified to earnings from Accumulated other comprehensive income (3),(5) — 22 — Total Other comprehensive (loss) income (4) 87 56 Balance at end of period $ 25 $ 29 $ 338 Cash flow hedges Balance at beginning of period $ 1 $ — $ — Separation-related adjustments ( A ) — (4) — Other comprehensive (loss) income: Net change from periodic revaluations (161) (2) — Tax benefit 37 1 — Total Other comprehensive loss before reclassifications, net of tax (124) (1) — Net amount reclassified to earnings (4) 140 8 — Tax expense (2) (32) (2) — Total amount reclassified from Accumulated other comprehensive income, net of tax (5) 108 6 — Total Other comprehensive (loss) income (16) 5 — Balance at end of period $ (15) $ 1 $ — Accumulated other comprehensive (loss) income $ (1,111) $ (1,761) $ 295 _____________________ (1) These amounts were included in the non-service component of net periodic benefit cost for pension and other postretirement benefits (see Note H ). In 2021 and 2020, this amount includes $584 and $199 related to the settlement of certain employee retirement benefits (see Note H ). (2) These amounts were reported in (Benefit) Provision for income taxes on the accompanying Statement of Consolidated Operations. (3) In all periods presented, there were no tax impacts related to rate changes. In 2020, the net amount reclassified to earnings was reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations related to the sale of certain foreign subsidiaries. (4) These amounts relate to aluminum contracts, a portion of which were reported in both Sales and Cost of goods sold on the accompanying Statement of Consolidated Operations. (5) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2021 2020 Finished goods $ 350 $ 282 Work-in-process 1,105 635 Purchased raw materials 109 59 Operating supplies 66 67 $ 1,630 $ 1,043 |
Properties, Plants, and Equip_2
Properties, Plants, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties, Plants, and Equipment, Net | The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery Rolled Products 33 22 Building and Construction Systems 25 18 Extrusions 32 20 December 31, 2021 2020 Land and land rights $ 22 $ 23 Structures: Rolled Products 1,107 1,095 Building and Construction Systems 96 95 Extrusions 150 150 Other 152 153 1,505 1,493 Machinery and equipment: Rolled Products 4,816 4,787 Building and Construction Systems 203 205 Extrusions 523 520 Other 291 279 5,833 5,791 7,360 7,307 Less: accumulated depreciation and amortization 4,878 4,697 2,482 2,610 Construction work-in-progress 169 102 $ 2,651 $ 2,712 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Rolled Building and Extrusions Total Balances at December 31, 2019: Goodwill $ 246 $ 97 $ 71 $ 414 Accumulated impairment losses — (28) — (28) Goodwill, net 246 69 71 386 Divestitures ( S ) (1) — (6) (7) Translation 9 2 — 11 Balances at December 31, 2020: Goodwill 254 99 65 418 Accumulated impairment losses — (28) — (28) Goodwill, net 254 71 65 390 Impairment ( B ) — — (65) (65) Translation (1) (2) — (3) Balances at December 31, 2021: Goodwill 253 97 65 415 Accumulated impairment losses — (28) (65) (93) Goodwill, net $ 253 $ 69 $ — $ 322 In 2021, Arconic recognized an impairment charge of $65 for the Extrusions reporting unit based on the result of the annual review of goodwill for impairment (see Goodwill in Note B ). |
Schedule of Other Intangible Assets | The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other Rolled Products 7 15 Building and Construction Systems 4 20 Extrusions 4 10 Other intangible assets, which are included in Other noncurrent assets on the accompanying Consolidated Balance Sheet, were as follows: December 31, 2021 Gross Accumulated Net carrying Computer software $ 555 $ (523) $ 32 Patents and licenses 27 (27) — Other 21 (15) 6 Total other intangible assets $ 603 $ (565) $ 38 December 31, 2020 Gross Accumulated Net carrying Computer software $ 550 $ (510) $ 40 Patents and licenses 28 (28) — Other 21 (14) 7 Total other intangible assets $ 599 $ (552) $ 47 |
Leases_ (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturity | Future minimum contractual operating lease obligations were as follows: December 31, 2021 2022 40 2023 30 2024 23 2025 17 2026 12 Thereafter 28 Total lease payments $ 150 Less: imputed interest 25 Present value of lease liabilities $ 125 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2021 2020 6.00% Notes, due 2025 $ 700 $ 700 6.125% Notes, due 2028 900 600 Unamortized discounts and deferred financing costs (6) (22) $ 1,594 $ 1,278 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Paid for Interest and Income Taxes | Cash paid for interest and income taxes was as follows: 2021 2020 2019 Interest, net of amount capitalized* $ 87 $ 48 $ 107 Income taxes, net of amount refunded 26 27 29 __________________ * In 2019, amount includes cash paid by ParentCo related to interest expense allocated to Arconic (see Cost Allocations in Note A ). |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantees, Letters of Credit, and Surety Bonds | Guarantees (1) Letters of Credit (2) Surety Bonds (3) Issuer Beneficiary Amount Expiration Date Amount Expiration Date Amount Expiration Date Arconic Third-parties $ 2 2022 - 2029 $ 10 2022 $ 43 2022-2023 Howmet Aerospace Arconic $ — — $ 27 2022 $ 4 2022 Alcoa Corporation Arconic $ 16 Open term $ — — $ 5 2022-2024 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The respective carrying value and fair value of Arconic’s financial instruments were as follows: 2021 2020 December 31, Carrying value Fair value Carrying value Fair value Cash and cash equivalents $ 335 $ 335 $ 787 $ 787 Derivative instruments - assets 1 1 3 3 Short-term borrowings — — 14 14 Derivatives instruments - liabilities 23 23 2 2 Long-term debt 1,594 1,692 1,278 1,399 |
The Separation and Basis of P_3
The Separation and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Millions | Apr. 01, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Sep. 01, 2020USD ($) | Dec. 31, 2021USD ($)locationcountry$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Feb. 05, 2020 | Jan. 02, 2020USD ($) | Feb. 08, 2019company | Nov. 01, 2016company |
Related Party Transaction [Line Items] | ||||||||||
Number of primary operating locations | location | 21 | |||||||||
Number of countries with primary operating locations | country | 8 | |||||||||
Number of publicly traded companies | company | 2 | 2 | ||||||||
Reduction of planned capital expenditures | $ 50 | |||||||||
Reduction of planned capital expenditures, percentage | 30.00% | |||||||||
Separation transaction, share conversion ratio | 0.25 | |||||||||
Separation transaction, payment to parent | $ 728 | $ 728 | $ 0 | |||||||
Separation transaction, shares issued to parent | shares | 109,021,376 | 109,021,376 | ||||||||
Common stock, shares outstanding | shares | 105,326,885 | 109,205,226 | ||||||||
Common stock, par value per share | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Separation transaction, costs incurred | $ 18 | $ 40 | ||||||||
Receivables from customers | $ 922 | $ 631 | $ 281 | |||||||
Accounts payable, settlement arrangements | 1 | |||||||||
Total sales | $ 7,504 | $ 5,675 | 7,277 | |||||||
ParentCo | Sale of customer receivables | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Transaction with related party, amount | 281 | |||||||||
ParentCo | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common stock, shares outstanding | shares | 436,085,504 | |||||||||
Separation transaction, costs incurred | $ 38 | $ 78 | ||||||||
CEO | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Salary reduction, percentage | 30.00% | |||||||||
Board of Directors | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Salary reduction, percentage | 30.00% | |||||||||
Senior-level management | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Salary reduction, percentage | 20.00% | |||||||||
Salaried employees | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Salary reduction, percentage | 10.00% | |||||||||
Salaried workforce | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Salary reduction, percentage | 10.00% |
The Separation and Basis of P_4
The Separation and Basis of Presentation - Cost Allocations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cost of goods sold (exclusive of expenses below) | $ 6,573 | $ 4,862 | $ 6,332 | |
Selling, general administrative, and other expenses | 247 | 258 | 346 | |
Research and development expenses | 34 | 36 | 45 | |
Provision for depreciation and amortization | 253 | 251 | 252 | |
Restructuring and other charges | 624 | 188 | 87 | |
Interest expense | 100 | 118 | 115 | |
Other (income), net | $ 67 | 70 | (15) | |
Separation transaction, costs incurred | $ 18 | 40 | ||
Spin-off | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost of goods sold (exclusive of expenses below) | 0 | 14 | ||
Selling, general administrative, and other expenses | 25 | 115 | ||
Research and development expenses | 0 | 11 | ||
Provision for depreciation and amortization | 1 | 10 | ||
Restructuring and other charges | 2 | 7 | ||
Interest expense | 28 | 115 | ||
Other (income), net | $ (5) | $ (6) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Schedule of Weighted-Average Useful Lives of Properties, Plants, and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Structures | Rolled Products | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 33 years |
Structures | Building and Construction Systems | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 25 years |
Structures | Extrusions | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 32 years |
Machinery and equipment | Rolled Products | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 22 years |
Machinery and equipment | Building and Construction Systems | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 18 years |
Machinery and equipment | Extrusions | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives | 20 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)reporting_unit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Jan. 01, 2019USD ($) | |
Goodwill [Line Items] | ||||||
Number of reporting units | reporting_unit | 3 | |||||
Carrying value of goodwill | $ 322,000,000 | $ 322,000,000 | $ 390,000,000 | $ 386,000,000 | ||
Maximum period between quantitative goodwill impairment tests | 3 years | |||||
Goodwill impairment | $ 65,000,000 | 0 | 0 | |||
Accumulated impairment losses | $ 93,000,000 | 93,000,000 | 28,000,000 | 28,000,000 | ||
Goodwill and Intangible Asset Impairment | 65,000,000 | 0 | 0 | |||
Weighted Average Cost of Capital, Basis Points | 15000.00% | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets | $ 122,000,000 | 122,000,000 | 144,000,000 | $ 150,000,000 | ||
Operating lease liabilities | 125,000,000 | 125,000,000 | $ 150,000,000 | |||
Reclassification from other noncurrent liabilities and deferred credits | (85,000,000) | (85,000,000) | (102,000,000) | |||
Reclassification from properties, plants, and equipment, net | (2,651,000,000) | (2,651,000,000) | (2,712,000,000) | |||
Reclassification from deferred income tax assets | (229,000,000) | (229,000,000) | (329,000,000) | |||
Rolled Products | ||||||
Goodwill [Line Items] | ||||||
Carrying value of goodwill | 253,000,000 | 253,000,000 | 254,000,000 | 246,000,000 | $ 254,000,000 | |
Goodwill impairment | 0 | |||||
Accumulated impairment losses | 0 | 0 | 0 | 0 | ||
Building and Construction Systems | ||||||
Goodwill [Line Items] | ||||||
Carrying value of goodwill | 69,000,000 | 69,000,000 | 71,000,000 | 69,000,000 | 70,000,000 | |
Goodwill impairment | 0 | |||||
Accumulated impairment losses | 28,000,000 | 28,000,000 | 28,000,000 | 28,000,000 | ||
Extrusions | ||||||
Goodwill [Line Items] | ||||||
Carrying value of goodwill | 0 | 0 | 65,000,000 | 71,000,000 | $ 65,000,000 | |
Goodwill impairment | 65,000,000 | |||||
Accumulated impairment losses | $ 65,000,000 | 65,000,000 | $ 0 | 0 | ||
Rolled Products and Building and Construction Systems | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 0 | |||||
Adoption of accounting standard | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification to Parent Company net investment | 73,000,000 | |||||
Reclassification from other noncurrent liabilities and deferred credits | 119,000,000 | |||||
Reclassification from properties, plants, and equipment, net | 24,000,000 | |||||
Reclassification from deferred income tax assets | $ 22,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Weighted-Average Useful Lives of Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software | Rolled Products | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 7 years |
Software | Building and Construction Systems | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 4 years |
Software | Extrusions | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 4 years |
Other intangible assets | Rolled Products | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 15 years |
Other intangible assets | Building and Construction Systems | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 20 years |
Other intangible assets | Extrusions | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives | 10 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | $ 7,504 | $ 5,675 | $ 7,277 |
Segment Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | (4) | 0 |
External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 7,504 | 5,679 | 7,277 |
Ground Transportation | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 2,799 | 1,849 | 2,545 |
Building and Construction | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,255 | 1,117 | 1,300 |
Aerospace | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 631 | 820 | 1,307 |
Industrial Products and Other | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,602 | 1,120 | 1,240 |
Packaging | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,217 | 773 | 885 |
Rolled Products | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 6,187 | 4,335 | 5,609 |
Rolled Products | Ground Transportation | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 2,697 | 1,761 | 2,428 |
Rolled Products | Building and Construction | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 244 | 154 | 182 |
Rolled Products | Aerospace | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 512 | 598 | 1,016 |
Rolled Products | Industrial Products and Other | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,517 | 1,049 | 1,098 |
Rolled Products | Packaging | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,217 | 773 | 885 |
Building and Construction Systems | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,011 | 963 | 1,118 |
Building and Construction Systems | Ground Transportation | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | 0 | 0 |
Building and Construction Systems | Building and Construction | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 1,011 | 963 | 1,118 |
Building and Construction Systems | Aerospace | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | 0 | 0 |
Building and Construction Systems | Industrial Products and Other | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | 0 | 0 |
Building and Construction Systems | Packaging | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | 0 | 0 |
Extrusions | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 306 | 381 | 550 |
Extrusions | Ground Transportation | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 102 | 88 | 117 |
Extrusions | Building and Construction | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 0 | 0 | 0 |
Extrusions | Aerospace | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 119 | 222 | 291 |
Extrusions | Industrial Products and Other | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | 85 | 71 | 142 |
Extrusions | Packaging | External Sales Including Reconciling Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total end-market revenue | $ 0 | $ 0 | $ 0 |
Segment and Related Informati_3
Segment and Related Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Number of reportable segments | segment | 3 | ||
Concentration Risk [Line Items] | |||
Total sales | $ | $ 7,504 | $ 5,675 | $ 7,277 |
Ford Motor Company | Rolled Products | Revenue | Customer | |||
Concentration Risk [Line Items] | |||
Total sales | $ | $ 761 | $ 647 | $ 942 |
Segment and Related Informati_4
Segment and Related Information - Operating Results and Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Total sales | $ 7,504 | $ 5,675 | $ 7,277 | ||
Provision for depreciation and amortization | 253 | 251 | 252 | ||
Assets | $ 6,580 | 6,580 | 6,314 | ||
Capital expenditures | 2,651 | 2,651 | 2,712 | ||
Goodwill | 322 | 322 | 390 | 386 | |
Rolled Products | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 253 | $ 254 | 253 | 254 | 246 |
Inventory Write-down | 10 | 7 | |||
Building and Construction Systems | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 69 | 70 | 69 | 71 | 69 |
Extrusions | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill | 0 | $ 65 | 0 | 65 | 71 |
External Sales Including Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 7,504 | 5,679 | 7,277 | ||
External Sales Including Reconciling Items | Rolled Products | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 6,187 | 4,335 | 5,609 | ||
External Sales Including Reconciling Items | Building and Construction Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 1,011 | 963 | 1,118 | ||
External Sales Including Reconciling Items | Extrusions | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 306 | 381 | 550 | ||
Elimination of intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | (34) | (21) | (28) | ||
Elimination of intersegment sales | Rolled Products | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | (33) | (19) | (25) | ||
Elimination of intersegment sales | Building and Construction Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 0 | 0 | 0 | ||
Elimination of intersegment sales | Extrusions | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | (1) | (2) | (3) | ||
Segment total | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 7,538 | 5,700 | 7,305 | ||
Segment Adjusted EBITDA | 757 | 648 | 757 | ||
Provision for depreciation and amortization | 237 | 235 | 232 | ||
Assets | 5,563 | 5,563 | 4,696 | ||
Segment total | Rolled Products | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 6,220 | 4,354 | 5,634 | ||
Segment Adjusted EBITDA | 655 | 527 | 640 | ||
Provision for depreciation and amortization | 197 | 192 | 185 | ||
Assets | 4,766 | 4,766 | 3,895 | ||
Segment total | Building and Construction Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 1,011 | 963 | 1,118 | ||
Segment Adjusted EBITDA | 130 | 137 | 126 | ||
Provision for depreciation and amortization | 17 | 18 | 18 | ||
Assets | 416 | 416 | 381 | ||
Segment total | Extrusions | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 307 | 383 | 553 | ||
Segment Adjusted EBITDA | (28) | (16) | (9) | ||
Provision for depreciation and amortization | 23 | 25 | 29 | ||
Assets | 381 | 381 | 420 | ||
Supplemental Information | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 0 | (4) | $ 0 | ||
Capital expenditures | 172 | 172 | 152 | ||
Goodwill | 322 | 322 | 390 | ||
Supplemental Information | Rolled Products | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | 147 | 147 | 134 | ||
Goodwill | 253 | 253 | 254 | ||
Supplemental Information | Building and Construction Systems | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | 11 | 11 | 7 | ||
Goodwill | 69 | 69 | 71 | ||
Supplemental Information | Extrusions | |||||
Segment Reporting Information [Line Items] | |||||
Capital expenditures | 14 | 14 | 11 | ||
Goodwill | $ 0 | $ 0 | $ 65 |
Segment and Related Informati_5
Segment and Related Information - Reconciliation of Certain Segment Information to Consolidated Totals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Consolidated sales | $ 7,504 | $ 5,675 | $ 7,277 |
Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Consolidated sales | 7,538 | 5,700 | 7,305 |
Elimination of intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Consolidated sales | (34) | (21) | (28) |
Other | |||
Segment Reporting Information [Line Items] | |||
Consolidated sales | $ 0 | $ (4) | $ 0 |
Segment and Related Informati_6
Segment and Related Information - Reconciliation of Segment Adjusted EBITDA to Consolidated Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate expenses | $ (33) | $ (24) | $ (53) | |
Stock-based compensation expense | (22) | (23) | (40) | |
Metal price lag | (16) | (27) | (39) | |
Provision for depreciation and amortization | (253) | (251) | (252) | |
Goodwill and Intangible Asset Impairment | (65) | 0 | 0 | |
Restructuring and other charges (E) | (624) | (188) | (87) | |
Other | (36) | (55) | (71) | |
Operating (loss) income | (292) | 80 | 215 | |
Interest expense | (100) | (118) | (115) | |
Other (expenses) income, net (G) | (67) | (70) | 15 | |
(Provision) Benefit for income taxes (I) | 62 | (1) | 62 | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | |
Consolidated net (loss) income attributable to Arconic Corporation | (397) | (109) | 177 | |
Other expenses, net | (60) | (78) | (2) | |
Total benefit plan expense (excluding settlements and curtailments) | (87) | (103) | (111) | |
Assets | 6,580 | 6,314 | ||
Cash and cash equivalents | 335 | 787 | ||
Prepaid expenses and other current assets | 55 | 53 | ||
Corporate fixed assets, net | 153 | 187 | ||
Operating lease right-of-use assets | 122 | 144 | $ 150 | |
Deferred income taxes | 229 | 329 | ||
Other noncurrent assets | 88 | 97 | ||
Other | 35 | 21 | ||
2020 Restructuring Programs | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring and other charges (E) | (188) | |||
Settlement of Certain Employee Retirement Benefits | 2020 Restructuring Programs | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring and other charges (E) | (584) | (199) | ||
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 757 | 648 | 757 | |
Provision for depreciation and amortization | (237) | (235) | (232) | |
Restructuring and other charges (E) | (6) | 24 | (81) | |
Segment Adjusted EBITDA and Unallocated amounts | 27 | 26 | 85 | |
Assets | 5,563 | 4,696 | ||
Operating Segments | Rolled Products | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 655 | 527 | 640 | |
Provision for depreciation and amortization | (197) | (192) | (185) | |
Restructuring and other charges (E) | (1) | 15 | (47) | |
Segment Adjusted EBITDA and Unallocated amounts | 18 | 17 | 62 | |
Assets | 4,766 | 3,895 | ||
Operating Segments | Building and Construction Systems | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | 130 | 137 | 126 | |
Provision for depreciation and amortization | (17) | (18) | (18) | |
Restructuring and other charges (E) | 2 | (5) | (33) | |
Segment Adjusted EBITDA and Unallocated amounts | 2 | 2 | 5 | |
Assets | 416 | 381 | ||
Operating Segments | Extrusions | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | (28) | (16) | (9) | |
Provision for depreciation and amortization | (23) | (25) | (29) | |
Restructuring and other charges (E) | (7) | 14 | (1) | |
Segment Adjusted EBITDA and Unallocated amounts | 7 | 7 | 18 | |
Assets | 381 | 420 | ||
Subtotal | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA and Unallocated amounts | 0 | 1 | 24 | |
Corporate expenses | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring and other charges (E) | (618) | (212) | (6) | |
Segment Adjusted EBITDA and Unallocated amounts | 0 | 0 | 15 | |
Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA and Unallocated amounts | $ 0 | $ (1) | $ 9 |
Segment and Related Informati_7
Segment and Related Information - Geographic Information for Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | $ 7,504 | $ 5,675 | $ 7,277 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 4,753 | 3,697 | 4,760 |
Russia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 793 | 535 | 512 |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 625 | 462 | 614 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 696 | 429 | 486 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 260 | 207 | 277 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | 169 | 144 | 230 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total sales | $ 208 | $ 201 | $ 398 |
Segment and Related Informati_8
Segment and Related Information - Geographic Information for Long-Lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,651 | $ 2,712 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,998 | 2,019 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 242 | 252 |
Russia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 200 | 213 |
Hungary | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 98 | 108 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 79 | 82 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 15 | 18 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 19 | $ 20 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Settlements related to employee retirement benefit plans | $ 584 | $ 199 | $ 0 |
Net loss (gain) on divestitures of assets and businesses | 1 | (49) | (20) |
Layoff costs | 3 | 23 | 30 |
Asset impairments | 34 | 15 | 68 |
Other | 6 | 14 | 9 |
Reversals of previously recorded layoff and other costs | (4) | (14) | 0 |
Restructuring and other charges | 624 | 188 | 87 |
Payments for Restructuring | $ 15 | 27 | 15 |
2020 Restructuring Programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 188 | ||
Expected number of employees separated | segment | 500 | 550 | |
Spin-off | |||
Restructuring Cost and Reserve [Line Items] | |||
Other | $ 2 | 7 | |
Restructuring and other charges | 2 | 7 | |
Spin-off | 2020 Restructuring Programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 2 | ||
Layoff costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ 10 | 24 | $ 12 |
Layoff costs | 2020 Restructuring Programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Payments for Restructuring | $ 5 | $ 15 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($)employeesegment | Dec. 31, 2019USD ($) | Dec. 31, 2019segment | Dec. 31, 2019employee | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 624 | $ 188 | $ 87 | ||
Cash payments, restructuring | 15 | 27 | 15 | ||
Layoff costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments, restructuring | 10 | 24 | 12 | ||
Allocated costs, ParentCo | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 2 | 7 | |||
Other Items | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments, restructuring | 5 | $ 3 | 3 | ||
2019 Restructuring Programs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 87 | ||||
Expected number of employees separated | 370 | 480 | 480 | ||
2019 Restructuring Programs | Rolled Products | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of employees separated | employee | 240 | ||||
2019 Restructuring Programs | Building and Construction Systems | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of employees separated | employee | 190 | ||||
2019 Restructuring Programs | Extrusions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of employees separated | employee | 50 | ||||
2019 Restructuring Programs | Disposals | Texarkana Rolling Mill and Cast House | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | (20) | ||||
2019 Restructuring Programs | Layoff costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 30 | ||||
Cash payments, restructuring | $ 3 | $ 9 | 11 | ||
2019 Restructuring Programs | Allocated costs, ParentCo | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 7 | ||||
2019 Restructuring Programs | Other Items | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 7 | ||||
2019 Restructuring Programs | Asset Impairments | Aluminum Rolling Mill in Brazil | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 53 | ||||
2019 Restructuring Programs | Impairment of Carrying Value of Tradename | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 10 | ||||
2020 Restructuring Programs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 188 | ||||
Expected number of employees separated | segment | 500 | 550 | |||
2020 Restructuring Programs | Building and Construction System and Extrustions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of employees separated | employee | 90 | ||||
2020 Restructuring Programs | COVID-19 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of employees separated | employee | 460 | ||||
2020 Restructuring Programs | Settlement of Certain Employee Retirement Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 584 | $ 199 | |||
2020 Restructuring Programs | Contingent Consideration Related to Disposal | Texarkana Rolling Mill and Cast House | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | (25) | ||||
2020 Restructuring Programs | Disposals | Extrusions Plant in South Korea and Aluminum Rolling Mill in Brazil | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | (25) | ||||
2020 Restructuring Programs | Costs Related to Planned Closures and Related Organizations | Building and Construction System and Extrustions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 21 | ||||
2020 Restructuring Programs | Layoff costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments, restructuring | 5 | 15 | |||
2020 Restructuring Programs | Layoff costs | Building and Construction System and Extrustions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 5 | ||||
2020 Restructuring Programs | Layoff costs | COVID-19 | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 18 | ||||
2020 Restructuring Programs | Reversal of Reserve | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | (14) | ||||
2020 Restructuring Programs | Reversal of Reserve, Environmental Matter | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | (5) | ||||
2020 Restructuring Programs | Legacy Non-Income Tax Matters in Brazil | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 4 | ||||
2020 Restructuring Programs | Allocated costs, ParentCo | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 2 | ||||
2020 Restructuring Programs | Other Items | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 8 | ||||
2021 Restructuring Programs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 624 | ||||
2021 Restructuring Programs | Extrusions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees separated | segment | 115 | ||||
2021 Restructuring Programs | Settlement of Certain Employee Retirement Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 584 | ||||
2021 Restructuring Programs | Disposals | Aluminum Rolling Mill in Itapissuma, Brazil | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 1 | ||||
2021 Restructuring Programs | Costs Related to Planned Closures and Related Organizations | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 34 | ||||
2021 Restructuring Programs | Layoff costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments, restructuring | 2 | ||||
2021 Restructuring Programs | Reversal of Reserve | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 4 | ||||
2021 Restructuring Programs | Other Items | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 2 | ||||
2021 Restructuring Programs | Idling of Operations | Extrusions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 7 | ||||
2021 Restructuring Programs | Legacy Tax Matters | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 4 | ||||
2021 Restructuring Programs | Legal Matters, Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 4 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Restructuring and Other Charges by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 624 | $ 188 | $ 87 |
Segment total | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 6 | (24) | 81 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 618 | 212 | 6 |
Rolled Products | Segment total | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 1 | (15) | 47 |
Building and Construction Systems | Segment total | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | (2) | 5 | 33 |
Extrusions | Segment total | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 7 | $ (14) | $ 1 |
Restructuring and Other Charg_6
Restructuring and Other Charges - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 14 | $ 21 | $ 4 |
Separation-related adjustments | 2 | ||
Cash payments | (15) | (27) | (15) |
Restructuring Charges | 9 | 27 | 32 |
Other | (5) | (9) | 0 |
Ending balance | 3 | 14 | 21 |
Layoff costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 13 | 20 | 1 |
Separation-related adjustments | 2 | ||
Cash payments | (10) | (24) | (12) |
Restructuring Charges | 3 | 23 | 30 |
Other | (4) | (8) | 1 |
Ending balance | 2 | 13 | 20 |
Other costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1 | 1 | 3 |
Separation-related adjustments | 0 | ||
Cash payments | (5) | (3) | (3) |
Restructuring Charges | 6 | 4 | 2 |
Other | (1) | (1) | (1) |
Ending balance | $ 1 | $ 1 | $ 1 |
Interest Cost Components - Sche
Interest Cost Components - Schedule of Interest Cost Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Cost Components [Abstract] | |||
Amount charged to expense | $ 100 | $ 118 | $ 115 |
Amount capitalized | 4 | 6 | 12 |
Interest cost | $ 104 | $ 124 | $ 127 |
Interest Cost Components - Narr
Interest Cost Components - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Allocation of ParentCo's financing costs | $ 100 | $ 118 | $ 115 |
Write off from debt issuance costs | 19 | ||
Spin-off | |||
Restructuring Cost and Reserve [Line Items] | |||
Allocation of ParentCo's financing costs | $ 28 | $ 115 |
Other Expenses (Income), Net -
Other Expenses (Income), Net - Schedule of Other Expenses (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Net periodic pension benefit cost | $ 60 | $ 78 | $ 2 |
Foreign currency losses (gains), net | 5 | 11 | (17) |
Net loss from asset sales | 0 | 0 | 2 |
Interest income | (1) | (4) | (13) |
Other, net | 3 | (15) | 11 |
Other (income) expenses, net | $ 67 | $ 70 | $ (15) |
Other Expenses (Income), Net _2
Other Expenses (Income), Net - Narrative (Details) - Tax Matters Agreement $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Reversal of liability previously established | $ 20 |
Percentage of potential loss responsible for in event of unfavorable ruling | 34.00% |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) | Nov. 30, 2020participant | Jul. 01, 2020USD ($)participant | May 31, 2020participant | Apr. 30, 2021USD ($)planparticipant | Dec. 31, 2020USD ($)segmentparticipant | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)participant | Jun. 30, 2021USD ($)planparticipant | Sep. 30, 2021USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2021USD ($) | Apr. 01, 2020USD ($) | Jan. 01, 2020USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Retirement plans, accumulated other comprehensive loss | $ 50,000,000 | |||||||||||||||
Noncurrent assets | 65,000,000 | |||||||||||||||
Noncurrent liability | $ 15,000,000 | |||||||||||||||
Weighted average duration of projected plan cash flows under yield curve model | 13 years | |||||||||||||||
Cash contributions to pension plans | $ 458,000,000 | $ 271,000,000 | $ 3,000,000 | |||||||||||||
Defined contribution plan, cost | 39,000,000 | 35,000,000 | 38,000,000 | |||||||||||||
Accrued pension benefits | $ 1,343,000,000 | 717,000,000 | 1,343,000,000 | |||||||||||||
Settlements related to employee retirement benefit plans | (584,000,000) | (199,000,000) | 0 | |||||||||||||
Forecast | Minimum | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Expected long-term rate of return on plan assets | 5.00% | |||||||||||||||
Forecast | Maximum | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Expected long-term rate of return on plan assets | 6.00% | |||||||||||||||
Funded | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Cash contributions to pension plans | 458,000,000 | 271,000,000 | ||||||||||||||
U.S. | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Retirement plans, liability | $ 1,920,000,000 | |||||||||||||||
Retirement plan, current liability | 60,000,000 | |||||||||||||||
Projected benefit obligation | 4,255,000,000 | |||||||||||||||
Retirement plans, plan asset | 2,335,000,000 | |||||||||||||||
Retirement plans, accumulated other comprehensive loss | $ 1,752,000,000 | |||||||||||||||
Pension benefits | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Retirement plan, current liability | 8,000,000 | 8,000,000 | 8,000,000 | |||||||||||||
Projected benefit obligation | 4,081,000,000 | 2,817,000,000 | 4,081,000,000 | 142,000,000 | ||||||||||||
Retirement plans, plan asset | 2,754,000,000 | 2,124,000,000 | 2,754,000,000 | $ 79,000,000 | ||||||||||||
Noncurrent assets | 24,000,000 | 32,000,000 | 24,000,000 | |||||||||||||
Noncurrent liability | $ 1,343,000,000 | 717,000,000 | 1,343,000,000 | |||||||||||||
Settlement of plan obligations | (1,051,000,000) | (542,000,000) | ||||||||||||||
Contributions by employer | $ 458,000,000 | $ 271,000,000 | ||||||||||||||
Defined benefit plan, discount rate | 2.45% | 2.76% | 2.45% | |||||||||||||
Expected long-term rate of return on plan assets | 4.91% | 6.09% | 6.73% | |||||||||||||
Settlements related to employee retirement benefit plans | $ (584,000,000) | $ (199,000,000) | $ 0 | |||||||||||||
Pension benefits | Funded | Forecast | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Minimum required contribution to pension plans in 2021 | $ 32,000,000 | |||||||||||||||
Pension benefits | U.S. | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Projected benefit obligation | $ 3,337,000,000 | $ 3,646,000,000 | 2,398,000,000 | 3,646,000,000 | ||||||||||||
Retirement plans, plan asset | 2,790,000,000 | $ 2,379,000,000 | $ 1,744,000,000 | $ 2,379,000,000 | ||||||||||||
Retirement plans, accumulated other comprehensive loss | $ (117,000,000) | |||||||||||||||
Defined benefit plan, number of participants | participant | 30,000 | 8,400 | 7,000 | 23,000 | ||||||||||||
Settlement of plan obligations | $ 995,000,000 | $ 240,000,000 | ||||||||||||||
Defined benefit plan, plan assets, transfer of plan assets | 1,007,000,000 | 245,000,000 | ||||||||||||||
Contributions by employer | $ 250,000,000 | |||||||||||||||
Defined benefit plan, discount rate | 3.10% | 2.54% | ||||||||||||||
Settlement charge | (140,000,000) | $ 549,000,000 | ||||||||||||||
Settlement charge, after-tax | $ 108,000,000 | 423,000,000 | ||||||||||||||
Number of plans with obligations transferred to insurance company | segment | 2 | |||||||||||||||
Number of defined benefit pension plans | plan | 2 | 2 | ||||||||||||||
Accrued pension benefits | $ 152,000,000 | |||||||||||||||
Settlements related to employee retirement benefit plans | 549,000,000 | |||||||||||||||
Pension benefits | U.S. | Funded | Forecast | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Minimum required contribution to pension plans in 2021 | $ 22,000,000 | |||||||||||||||
Pension benefits | U.K. | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Projected benefit obligation | $ 240,000,000 | |||||||||||||||
Retirement plans, plan asset | $ 260,000,000 | |||||||||||||||
Defined benefit plan, number of participants | participant | 1,050 | 3,350 | 1,800 | |||||||||||||
Settlement of plan obligations | $ 400,000,000 | |||||||||||||||
Defined benefit plan, plan assets, transfer of plan assets | $ 460,000,000 | 58,000,000 | ||||||||||||||
Contributions by employer | $ 10,000,000 | |||||||||||||||
Defined benefit plan, discount rate | 2.05% | 1.55% | 2.05% | |||||||||||||
Net reduction to remaining plan obligations due to remeasurement of plan | $ 250,000,000 | |||||||||||||||
Settlement charge | (58,000,000) | |||||||||||||||
Settlement charge, after-tax | 48,000,000 | |||||||||||||||
Other postretirement benefits | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Retirement plan, current liability | $ 35,000,000 | 29,000,000 | $ 35,000,000 | |||||||||||||
Projected benefit obligation | 514,000,000 | 440,000,000 | 514,000,000 | 1,000,000 | ||||||||||||
Retirement plans, plan asset | 0 | 0 | 0 | $ 0 | ||||||||||||
Noncurrent assets | 0 | 0 | 0 | |||||||||||||
Noncurrent liability | $ 479,000,000 | 411,000,000 | 479,000,000 | |||||||||||||
Settlement of plan obligations | 0 | 0 | ||||||||||||||
Contributions by employer | $ 0 | $ 0 | ||||||||||||||
Defined benefit plan, discount rate | 2.61% | 2.90% | 2.61% | |||||||||||||
Settlements related to employee retirement benefit plans | $ 0 | $ 0 | ||||||||||||||
Other postretirement benefits | U.S. | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Defined benefit plan, discount rate | 2.61% | 2.54% | 2.61% | 3.17% | 2.78% | |||||||||||
Net decrease to postretirement benefits liability | $ 7,000,000 | $ 34,000,000 | ||||||||||||||
Net decrease to Accumulated other comprehensive loss (after-tax) | 5,000,000 | |||||||||||||||
Decrease in estimated annual benefit payments beginning in 2021 | $ 20,000,000 | $ (4,000,000) | ||||||||||||||
Health care cost trend rate assumed for next year | 7.70% | 4.50% | 7.70% | |||||||||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | $ 26,000,000 | |||||||||||||||
Other postretirement benefits | U.S. | Forecast | ||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||
Health care cost trend rate assumed for next year | 4.50% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension and other postretirement benefits cost | $ 87 | $ 103 | $ 111 |
Pension benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | 68 | 82 | 5 |
Multiemployer contribution expense | 0 | 0 | 61 |
Cost allocation | 0 | (1) | 20 |
Pension and other postretirement benefits cost | 68 | 81 | 86 |
Actuarial loss attributable to change in discount rate used to determine benefit obligation | (130) | 370 | |
Other postretirement benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | 19 | 22 | 0 |
Multiemployer contribution expense | 0 | 0 | 21 |
Cost allocation | 0 | 0 | 4 |
Pension and other postretirement benefits cost | $ 19 | $ 22 | $ 25 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Benefit Obligation and Funded Status (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 01, 2020 | Jan. 01, 2020 | |
Amounts recognized on the Consolidated Balance Sheet: | |||||||
Noncurrent assets | $ 65,000,000 | ||||||
Noncurrent liabilities | $ (15,000,000) | ||||||
United States | |||||||
Amounts recognized on the Consolidated Balance Sheet: | |||||||
Current liabilities | $ (60,000,000) | ||||||
Pension benefits | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | $ 4,081,000,000 | $ 142,000,000 | |||||
Establishment of additional defined benefit plans - New Direct Plans | 0 | 3,688,000,000 | |||||
Separation-related adjustments - Additional New Direct Plans | 0 | 550,000,000 | |||||
Service cost | 21,000,000 | 21,000,000 | $ 3,000,000 | ||||
Interest cost | 63,000,000 | 108,000,000 | 4,000,000 | ||||
Amendments | 0 | 0 | |||||
Actuarial losses | (105,000,000) | 382,000,000 | |||||
Benefits paid | (183,000,000) | (273,000,000) | |||||
Settlements | (1,051,000,000) | (542,000,000) | |||||
Foreign currency translation impact | (9,000,000) | 10,000,000 | |||||
Divestitures | 0 | (5,000,000) | |||||
Medicare part D subsidy receipts | 0 | 0 | |||||
Benefit obligation at end of year | $ 4,081,000,000 | 2,817,000,000 | 4,081,000,000 | 142,000,000 | |||
Change in plan assets | |||||||
Fair value of plan assets at beginning of year | 2,754,000,000 | 79,000,000 | |||||
Establishment of additional defined benefit plans - New Direct Plans | 0 | 2,335,000,000 | |||||
Separation-related adjustments - Additional New Direct Plans | 0 | 600,000,000 | |||||
Actual return on plan assets | 177,000,000 | 350,000,000 | |||||
Employer contributions | 458,000,000 | 271,000,000 | |||||
Benefits paid | (176,000,000) | (266,000,000) | |||||
Settlements | (1,069,000,000) | (595,000,000) | |||||
Foreign currency translation impact | (3,000,000) | 3,000,000 | |||||
Divestitures | 0 | (4,000,000) | |||||
Administrative expenses | (17,000,000) | (19,000,000) | |||||
Fair value of plan assets at end of year | 2,754,000,000 | 2,124,000,000 | 2,754,000,000 | 79,000,000 | |||
Funded status | 1,327,000,000 | 693,000,000 | 1,327,000,000 | ||||
Amounts recognized on the Consolidated Balance Sheet: | |||||||
Noncurrent assets | 24,000,000 | 32,000,000 | 24,000,000 | ||||
Current liabilities | (8,000,000) | (8,000,000) | (8,000,000) | ||||
Noncurrent liabilities | (1,343,000,000) | (717,000,000) | (1,343,000,000) | ||||
Net amount recognized | (1,327,000,000) | (693,000,000) | (1,327,000,000) | ||||
Amounts recognized in Accumulated Other Comprehensive Loss (pretax): | |||||||
Net actuarial loss | 2,204,000,000 | 1,389,000,000 | 2,204,000,000 | ||||
Prior service benefit | 0 | 0 | |||||
Net amount recognized | 2,204,000,000 | 1,389,000,000 | 2,204,000,000 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (pretax): | |||||||
Net actuarial loss | (137,000,000) | 276,000,000 | |||||
Prior service benefit | 0 | 0 | |||||
Amortization of prior service benefit | 0 | 0 | |||||
Amortization of net actuarial loss | (678,000,000) | (322,000,000) | |||||
Total | (815,000,000) | (46,000,000) | |||||
Actuarial loss attributable to change in discount rate used to determine benefit obligation | (130,000,000) | 370,000,000 | |||||
Pension benefits | United States | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | 3,646,000,000 | ||||||
Settlements | $ 995,000,000 | 240,000,000 | |||||
Benefit obligation at end of year | 3,337,000,000 | 3,646,000,000 | 2,398,000,000 | 3,646,000,000 | |||
Change in plan assets | |||||||
Fair value of plan assets at beginning of year | 2,379,000,000 | ||||||
Employer contributions | 250,000,000 | ||||||
Fair value of plan assets at end of year | $ 2,790,000,000 | 2,379,000,000 | 1,744,000,000 | 2,379,000,000 | |||
Funded status | 1,267,000,000 | 654,000,000 | 1,267,000,000 | ||||
Other postretirement benefits | |||||||
Change in benefit obligation | |||||||
Benefit obligation at beginning of year | 514,000,000 | 1,000,000 | |||||
Establishment of additional defined benefit plans - New Direct Plans | 0 | 567,000,000 | |||||
Separation-related adjustments - Additional New Direct Plans | 0 | 0 | |||||
Service cost | 6,000,000 | 5,000,000 | |||||
Interest cost | 11,000,000 | 13,000,000 | |||||
Amendments | (30,000,000) | (52,000,000) | |||||
Actuarial losses | (23,000,000) | 33,000,000 | |||||
Benefits paid | (38,000,000) | (55,000,000) | |||||
Settlements | 0 | 0 | |||||
Foreign currency translation impact | 0 | 0 | |||||
Divestitures | 0 | 0 | |||||
Medicare part D subsidy receipts | 0 | 2,000,000 | |||||
Benefit obligation at end of year | 514,000,000 | 440,000,000 | 514,000,000 | 1,000,000 | |||
Change in plan assets | |||||||
Fair value of plan assets at beginning of year | 0 | 0 | |||||
Establishment of additional defined benefit plans - New Direct Plans | 0 | 0 | |||||
Separation-related adjustments - Additional New Direct Plans | 0 | 0 | |||||
Actual return on plan assets | 0 | 0 | |||||
Employer contributions | 0 | 0 | |||||
Benefits paid | 0 | 0 | |||||
Settlements | 0 | 0 | |||||
Foreign currency translation impact | 0 | 0 | |||||
Divestitures | 0 | 0 | |||||
Administrative expenses | 0 | 0 | |||||
Fair value of plan assets at end of year | 0 | 0 | 0 | $ 0 | |||
Funded status | 514,000,000 | 440,000,000 | 514,000,000 | ||||
Amounts recognized on the Consolidated Balance Sheet: | |||||||
Noncurrent assets | 0 | 0 | 0 | ||||
Current liabilities | (35,000,000) | (29,000,000) | (35,000,000) | ||||
Noncurrent liabilities | (479,000,000) | (411,000,000) | (479,000,000) | ||||
Net amount recognized | (514,000,000) | (440,000,000) | (514,000,000) | ||||
Amounts recognized in Accumulated Other Comprehensive Loss (pretax): | |||||||
Net actuarial loss | 197,000,000 | 166,000,000 | 197,000,000 | ||||
Prior service benefit | (61,000,000) | (85,000,000) | (61,000,000) | ||||
Net amount recognized | $ 136,000,000 | 81,000,000 | 136,000,000 | ||||
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (pretax): | |||||||
Net actuarial loss | (23,000,000) | 35,000,000 | |||||
Prior service benefit | (30,000,000) | (52,000,000) | |||||
Amortization of prior service benefit | 6,000,000 | 4,000,000 | |||||
Amortization of net actuarial loss | (8,000,000) | (8,000,000) | |||||
Total | $ (55,000,000) | $ (21,000,000) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Pension Plan Benefit Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
The aggregate projected benefit obligation and fair value of plan assets for defined benefit pension plans with projected benefit obligations in excess of plan assets was as follows: | |||
Projected benefit obligation | $ 2,472 | $ 3,795 | |
Fair value of plan assets | 1,747 | 2,444 | |
Pension benefits | |||
The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans was as follows: | |||
Projected benefit obligation | 2,817 | 4,081 | $ 142 |
Accumulated benefit obligation | 2,807 | 4,068 | |
The aggregate accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with accumulated benefit obligations in excess of plan assets was as follows: | |||
Accumulated benefit obligation | 2,464 | 3,784 | |
Fair value of plan assets | $ 1,747 | $ 2,444 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Settlements | $ 584 | $ 199 | $ 0 | ||
Pension benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 21 | 21 | 3 | ||
Interest cost | 63 | 108 | 4 | ||
Expected return on plan assets | (110) | (170) | (5) | ||
Amortization of net actuarial loss | 94 | 123 | 3 | ||
Amortization of prior service benefit | 0 | 0 | 0 | ||
Settlements | 584 | 199 | 0 | ||
Net periodic benefit cost | 652 | 281 | $ 5 | ||
Settlements | 1,051 | 542 | |||
Pension benefits | United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Settlements | (549) | ||||
Net periodic benefit cost | 653 | 220 | |||
Settlements | $ (995) | $ (240) | |||
Defined benefit plan, plan assets, transfer of plan assets | $ (1,007) | $ (245) | |||
Defined Benefit Plan, Net Periodic Benefit Cost Lump Sum Benefits | 35 | ||||
Other postretirement benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 6 | 5 | |||
Interest cost | 11 | 13 | |||
Expected return on plan assets | 0 | 0 | |||
Amortization of net actuarial loss | 8 | 8 | |||
Amortization of prior service benefit | (6) | (4) | |||
Settlements | 0 | 0 | |||
Net periodic benefit cost | 19 | 22 | |||
Settlements | $ 0 | $ 0 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit obligations | |||
Rate of compensation increase | 2.66% | 2.55% | |
Net periodic benefit cost | |||
Rate of compensation increase | 2.54% | 3.20% | 3.42% |
Pension benefits | |||
Benefit obligations | |||
Discount rate | 2.76% | 2.45% | |
Net periodic benefit cost | |||
Discount rate | 2.27% | 2.86% | 3.12% |
Weighted-average expected long-term rate of return | 4.91% | 6.09% | 6.73% |
Other postretirement benefits | |||
Benefit obligations | |||
Discount rate | 2.90% | 2.61% | |
Net periodic benefit cost | |||
Discount rate | 2.19% | 2.49% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Assumed Health Care Cost Trend Rates (Details) - Other postretirement benefits - United States | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 4.50% | 7.70% |
Rate to which the cost trend rate gradually declines | 4.70% | 4.60% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Plan Asset Allocations (Details) - Pension benefits | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset, weighted average asset allocations | 100.00% | 100.00% |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset, weighted average asset allocations | 31.00% | 20.00% |
Equities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy maximum | 40.00% | |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset, weighted average asset allocations | 56.00% | 51.00% |
Fixed income | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy maximum | 100.00% | |
Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset, weighted average asset allocations | 13.00% | 29.00% |
Other investments | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy maximum | 30.00% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Fair Value of Plan Assets (Details) - Pension benefits - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 2,124 | $ 2,754 | $ 79 |
Plan Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,128 | 2,654 | |
Plan Assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 130 | 158 | |
Plan Assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 412 | 602 | |
Plan Assets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Plan Assets | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,586 | 1,894 | |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 652 | 527 | |
Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 12 | 1 | |
Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equities | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 640 | 526 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 404 | 277 | |
Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 12 | 1 | |
Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equity securities | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 392 | 276 | |
Long/short equity hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 24 | 107 | |
Long/short equity hedge funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Long/short equity hedge funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Long/short equity hedge funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Long/short equity hedge funds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 24 | 107 | |
Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 224 | 143 | |
Private equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Private equity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Private equity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Private equity | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 224 | 143 | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,192 | 1,370 | |
Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 118 | 118 | |
Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 412 | 602 | |
Fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Fixed income | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 662 | 650 | |
Intermediate and long duration government/credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,119 | 1,325 | |
Intermediate and long duration government/credit | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 95 | 117 | |
Intermediate and long duration government/credit | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 412 | 602 | |
Intermediate and long duration government/credit | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Intermediate and long duration government/credit | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 612 | 606 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 73 | 45 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 23 | 1 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 50 | 44 | |
Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 284 | 757 | |
Other investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 39 | |
Other investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other investments | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 284 | 718 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 108 | 132 | |
Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 39 | |
Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Real estate | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 108 | 93 | |
Discretionary and systematic macro hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 531 | ||
Discretionary and systematic macro hedge funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Discretionary and systematic macro hedge funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Discretionary and systematic macro hedge funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Discretionary and systematic macro hedge funds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 531 | ||
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 77 | 94 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Other | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 77 | 94 | |
Net receivable | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 100 | ||
Defined Benefit Plan, Net Payable | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ (4) |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Expected Benefit Payments (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2021USD ($)plan | Jun. 30, 2021plan | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Pension benefits | ||||
Pension benefits and Net other postretirement benefits | ||||
2022 | $ 164 | |||
2023 | 162 | |||
2024 | 160 | |||
2025 | 158 | |||
2026 | 158 | |||
2027 through 2031 | 763 | |||
Expected benefit payments | 1,565 | |||
Other postretirement benefits | ||||
Contributions by employer | 458 | $ 271 | ||
Pension benefits | United States | ||||
Other postretirement benefits | ||||
Contributions by employer | $ 250 | |||
Number of defined benefit pension plans | plan | 2 | 2 | ||
Other postretirement benefits | ||||
Other postretirement benefits | ||||
2022 | 29 | |||
2023 | 28 | |||
2024 | 27 | |||
2025 | 27 | |||
2026 | 27 | |||
2027 through 2031 | 128 | |||
Expected benefit payments | 266 | |||
Contributions by employer | $ 0 | $ 0 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic - United States | $ (611) | $ (126) | $ 64 |
Foreign | 152 | 18 | 51 |
(Loss) Income before income taxes | $ (459) | $ (108) | $ 115 |
Income Taxes_ - Components of P
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Foreign | $ 36 | $ 13 | $ 16 |
U.S. state and local | 2 | 4 | 3 |
Current provision (benefit) | 38 | 17 | 19 |
Deferred: | |||
U.S. federal | (86) | (12) | (83) |
Foreign | (2) | 4 | 11 |
U.S. state and local | (12) | (8) | (9) |
Deferred provision (benefit) | (100) | (16) | (81) |
Provision (benefit) for income taxes | $ (62) | 1 | $ (62) |
Charge related to income generated by the Company prior to Separation Date | $ 21 |
Income Taxes_ - Reconciliation
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Taxes on foreign operations - rate differential | 0.10% | (4.80%) | (6.00%) |
Other taxes related to foreign operations | (5.00%) | (9.40%) | 23.50% |
U.S. state and local taxes, including federal benefit | 2.60% | 3.30% | (2.60%) |
Statutory tax rate and law changes | (0.30%) | (2.10%) | 0.00% |
Changes in valuation allowances | (0.90%) | (7.30%) | 30.40% |
Non-taxable income - indemnification liability | 0.40% | 3.80% | 0.00% |
Subsidiary recapitalizations and reorganizations | (1.10%) | (3.90%) | (121.80%) |
Non-deductible costs related to the Separation | 0.00% | (2.20%) | 3.50% |
Other | (0.30%) | 0.70% | (1.90%) |
Effective tax rate | 13.50% | (0.90%) | (53.90%) |
Tax expense related to foreign operations that generated income subject to the global intangible low-taxed income inclusion under the U.S. Internal Revenue Code | $ 11 | $ 35 | |
Net tax benefit related to U.S. tax election that resulted in deemed liquidation of foreign subsidiary's assets into U.S. tax parent | $ 140 | ||
Effective Income Tax Rate Reconciliation, Impairment of Goodwill, Percent | (3.00%) | 0.00% | 0.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Employee benefits | $ 331 | $ 503 | ||
Tax loss carryforwards | 206 | 167 | ||
Deferred income | 47 | 6 | ||
Deferred Tax Asset, Interest Carryforward | 44 | 15 | ||
Operating lease right-of-use asset | 30 | 37 | ||
Loss provisions | 24 | 42 | ||
Depreciation | 13 | 13 | ||
Other | 17 | 2 | ||
Deferred tax assets, gross | 712 | 785 | ||
Valuation allowance | (90) | (91) | $ (113) | $ (107) |
Deferred tax assets, net | 622 | 694 | ||
Deferred tax liabilities | ||||
Deferred Tax Liabilities, Accounting Method Change | 97 | |||
Employee benefits | 0 | 3 | ||
Operating lease liabilities | 30 | 37 | ||
Depreciation | 267 | 256 | ||
Deferred expense | 0 | 80 | ||
Other | 11 | 4 | ||
Deferred tax liabilities | $ 405 | $ 380 |
Income Taxes - Narrative_ (Deta
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Future taxable income projections, reversing temporary differences, percentage of excluded amount | 65.00% | ||
Future taxable income projections, taxable temporary differences that reverse within carryforward period, percentage of excluded amount | 35.00% | ||
Interest and penalties recognized | $ 0 | $ 0 | $ 0 |
Interest and penalties accrued | $ 0 | $ 0 |
Income Taxes - Expiration Perio
Income Taxes - Expiration Periods of Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Asset Expiration [Line Items] | ||||
Tax loss carryforwards | $ 206 | $ 167 | ||
Employee benefits | 331 | 503 | ||
Other | 175 | |||
Valuation allowance | (90) | (91) | $ (113) | $ (107) |
Deferred tax assets, net | 622 | $ 694 | ||
Expires within 10 years | ||||
Deferred Tax Asset Expiration [Line Items] | ||||
Tax loss carryforwards | 34 | |||
Employee benefits | 0 | |||
Other | 0 | |||
Valuation allowance | (32) | |||
Deferred tax assets, net | 2 | |||
Expires within 11-20 years | ||||
Deferred Tax Asset Expiration [Line Items] | ||||
Tax loss carryforwards | 30 | |||
Employee benefits | 0 | |||
Other | 2 | |||
Valuation allowance | (6) | |||
Deferred tax assets, net | 26 | |||
No Expiration | ||||
Deferred Tax Asset Expiration [Line Items] | ||||
Tax loss carryforwards | 142 | |||
Employee benefits | 0 | |||
Other | 44 | |||
Valuation allowance | (5) | |||
Deferred tax assets, net | 181 | |||
Other | ||||
Deferred Tax Asset Expiration [Line Items] | ||||
Tax loss carryforwards | 0 | |||
Employee benefits | 331 | |||
Other | 129 | |||
Valuation allowance | (47) | |||
Deferred tax assets, net | $ 413 |
Income Taxes_ - Change in Valua
Income Taxes - Change in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance, Deferred Tax Asset, Change [Roll Forward] | |||
Balance at beginning of year | $ 91 | $ 113 | $ 107 |
Establishment of new allowances | 0 | 22 | 0 |
Net change to existing allowances | (3) | (16) | 18 |
Release of allowances | 0 | 0 | (11) |
Acquisitions and divestitures | 0 | (31) | 0 |
Foreign currency translation | (1) | 3 | (1) |
Balance at end of year | 90 | 91 | 113 |
Valuation Allowance, Deferred Tax Asset, Establishment Of New Allowance | $ 3 | $ 0 | $ 0 |
Income Taxes_ - Reconciliatio_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 23 | $ 21 | $ 18 |
Additions for tax positions of prior years | 1 | 0 | 4 |
Foreign currency translation | (2) | ||
Foreign currency translation | 2 | 1 | |
Balance at end of year | $ 22 | $ 23 | $ 21 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Information Used to Compute Basic and Diluted EPS (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Weighted-average shares outstanding - basic (in shares) | 109 | 109 | 109 |
Weighted-average shares outstanding - diluted (in shares) | 109 | 109 | 109 |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 3,400,000 | $ 2,600,000 | $ 0 |
Exercise Price Greater Than Average Market Price | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Stock options outstanding (in shares) | 0.5 | ||
Weighted average exercise price of stock options outstanding (in dollars per share) | $ 33.32 | ||
Stock options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Effect of dilutive share equivalents (in shares) | 0 | 0 | 0 |
Stock options | In-the-money Stock Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 100,000 | $ 0 | $ 0 |
Stock options | Out-of-the-money Stock Options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 0 | $ 0 | $ 0 |
Stock units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Effect of dilutive share equivalents (in shares) | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount | $ 3,300,000 | $ 2,600,000 | $ 0 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Dec. 31, 2020 | Apr. 01, 2020 | Dec. 31, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Separation transaction, shares issued to parent | 109,021,376 | 109,021,376 | |
Exercise Price Greater Than Average Market Price | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options outstanding (in shares) | 500,000 | ||
Weighted average exercise price of stock options outstanding (in dollars per share) | $ 33.32 |
Preferred and Common Stock (Det
Preferred and Common Stock (Details) | Apr. 01, 2020trading_day$ / sharesshares | Mar. 31, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)segment$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018 | Jan. 05, 2022USD ($) | May 20, 2021shares | May 04, 2021USD ($) | Jan. 02, 2020USD ($) |
Equity [Abstract] | ||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||||||||||
Preferred stock, par value per share | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, shares issued | 0 | 0 | ||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||||||||||
Common stock, par value per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Separation transaction, shares issued to parent | 109,021,376 | 109,021,376 | ||||||||||
Common stock, shares issued | 110,239,390 | 109,205,226 | 110,239,390 | 109,205,226 | ||||||||
Common stock, shares outstanding | 105,326,885 | 109,205,226 | 105,326,885 | 109,205,226 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Authorization for issuance for exercise of stock options and conversion of stock units granted under employee stock-based compensation plan (in shares) | 11,500,000 | |||||||||||
Exercised (in shares) | 84,959 | 251,919 | ||||||||||
Stock options outstanding (in shares) | 1,173,492 | 590,906 | 1,026,808 | 590,906 | 1,026,808 | |||||||
Shares available for issuance under stock-based compensation plan | 4,749,255 | 336,293 | 4,749,255 | 336,293 | ||||||||
Stock-based compensation expense, net of benefit for certain executive pre-vest stock award cancellations | $ | $ 22,000,000 | $ 23,000,000 | $ 38,000,000 | |||||||||
Stock-based compensation expense, after tax | $ | 17,000,000 | 18,000,000 | 30,000,000 | |||||||||
Stock-based compensation expense capitalized | $ | 0 | 0 | 0 | |||||||||
Stock-based compensation expense | $ | $ 22,000,000 | 23,000,000 | $ 40,000,000 | |||||||||
Benefit for certain executive pre-vest stock award cancellations | $ | $ 2,000,000 | |||||||||||
Stock options granted (in shares) | 0 | |||||||||||
Outstanding options, weighted average remaining contractual life | 2 years 7 months 6 days | |||||||||||
Outstanding options, total intrinsic value | $ | $ 4,000,000 | $ 4,000,000 | ||||||||||
Cash received from stock option exercises | $ | $ 6,000,000 | |||||||||||
Total intrinsic value of stock options exercised | $ | $ 2,000,000 | |||||||||||
Combined unrecognized compensation expense related to non-vested grants of both stock options and stock units | $ | $ 15,000,000 | $ 15,000,000 | ||||||||||
Weighted average expected recognition period for unrecognized compensation expense | 2 years | |||||||||||
Common stock, shares issued | 110,239,390 | 109,205,226 | 110,239,390 | 109,205,226 | ||||||||
Common stock, shares outstanding | 105,326,885 | 109,205,226 | 105,326,885 | 109,205,226 | ||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 300,000,000 | |||||||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 161,000,000 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3,000,000 | |||||||||||
Receivables from customers, less allowances of $1 in both 2021 and 2020 | $ | $ 922,000,000 | $ 631,000,000 | $ 922,000,000 | $ 631,000,000 | $ 281,000,000 | |||||||
Receivables Purchase Agreement | Subsequent events | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Receivables from customers, less allowances of $1 in both 2021 and 2020 | $ | $ 77,000,000 | |||||||||||
ParentCo | ||||||||||||
Equity [Abstract] | ||||||||||||
Common stock, shares outstanding | 436,085,504 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, shares outstanding | 436,085,504 | |||||||||||
Allocated costs, ParentCo | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation expense | $ | $ 5,000,000 | $ 30,000,000 | ||||||||||
Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Replacement award ratio | 1.07 | |||||||||||
Market price (in dollars per share) | $ / shares | $ 15 | $ 16.06 | ||||||||||
Exercise price decrease ratio | 0.93 | |||||||||||
Volume weighted average trading price (in dollars per share) | $ / shares | $ 7.37 | |||||||||||
Measurement period for volume weighted average trading price in trading days | trading_day | 5 | |||||||||||
Vesting service period | 3 years | |||||||||||
Contractual term | 10 years | |||||||||||
Stock options | Vesting Year One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 33.33% | |||||||||||
Stock options | Vesting Year Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 33.33% | |||||||||||
Stock options | Vesting Year Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 33.33% | |||||||||||
Stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Converted (in shares) | 157,230 | 1,125,983 | ||||||||||
Stock units outstanding (in shares) | 3,062,013 | 3,913,337 | 4,544,063 | 3,913,337 | 4,544,063 | |||||||
Number of shares counted for each award in determining number of shares remaining for authorization | 1.5 | 1.5 | 1 | |||||||||
Replacement award ratio | 2.18 | |||||||||||
Percent of stock-based compensation expense related to stock units (minimum) | 85.00% | 85.00% | 85.00% | |||||||||
Estimated grant date fair value, stock units with market condition (in dollars per share) | $ / shares | $ 15.14 | $ 10.36 | $ 15.14 | $ 10.36 | ||||||||
Performance stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance measurement period | 3 years | 3 years | ||||||||||
Number of financial targets established | segment | 3 | |||||||||||
Duration of each financial target | 1 year | |||||||||||
Performance stock units | ParentCo | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Awards subsequently converted to stock units with no performance condition, percentage of target | 100.00% | 97.50% | ||||||||||
EBITDA Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance target percentage | 50.00% | 25.00% | ||||||||||
Free Cash Flow Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance target percentage | 25.00% | |||||||||||
Pretax Return on Net Assets Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Performance target percentage | 50.00% | |||||||||||
Stock units with market condition | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Estimated grant date fair value, stock units with market condition (in dollars per share) | $ / shares | $ 46.17 | $ 10.02 | $ 46.17 | $ 10.02 | $ 11.93 | |||||||
Risk-free interest rate | 0.30% | 0.20% | 1.60% | |||||||||
Estimated volatility rate | 50.10% | 35.40% | 33.40% |
Preferred and Common Stock - Ac
Preferred and Common Stock - Activity for Stock Options and Stock Units (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | 17 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | |
Number of options | |||||||
Outstanding, beginning of period (in shares) | 1,026,808 | ||||||
Granted (in shares) | 0 | ||||||
Exercised (in shares) | (84,959) | (251,919) | |||||
Expired or forfeited (in shares) | (183,983) | ||||||
Outstanding, end of period (in shares) | 590,906 | 1,026,808 | 590,906 | 1,026,808 | |||
Weighted average exercise price | |||||||
Outstanding, beginning of period (in dollars per share) | $ 26.64 | ||||||
Granted (in dollars per share) | 0 | ||||||
Exercised (in dollars per share) | 23.69 | ||||||
Expired or forfeited (in dollars per share) | 34.11 | ||||||
Outstanding, end of period (in dollars per share) | $ 25.56 | $ 26.64 | $ 25.56 | $ 26.64 | |||
Weighted average FMV per unit | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Percentage of Target | 8.30% | 100.00% | |||||
Stock units | |||||||
Number of units | |||||||
Outstanding, beginning of period (in shares) | 4,544,063 | ||||||
Granted (in shares) | 919,170 | ||||||
Converted (in shares) | (157,230) | (1,125,983) | |||||
Expired or forfeited (in shares) | (197,177) | ||||||
Performance share adjustment (in shares) | (226,736) | ||||||
Outstanding, end of period (in shares) | 3,913,337 | 4,544,063 | 3,913,337 | 4,544,063 | |||
Weighted average FMV per unit | |||||||
Outstanding, beginning of period (in dollars per share) | $ 10.36 | ||||||
Granted (in dollars per share) | 35.21 | ||||||
Converted (in dollars per share) | 12.84 | ||||||
Expired or forfeited (in dollars per share) | 17.56 | ||||||
Performance share adjustment (in dollars per share) | 10.02 | ||||||
Outstanding, end of period (in dollars per share) | $ 15.14 | $ 10.36 | $ 15.14 | $ 10.36 | |||
Shares withheld to meet statutory tax withholding requirements | 343,738 | ||||||
EBITDA Target | |||||||
Weighted average FMV per unit | |||||||
Performance target percentage | 50.00% | 25.00% | |||||
Performance Shares, Return on Invested Capital Target | |||||||
Weighted average FMV per unit | |||||||
Performance target percentage | 25.00% | ||||||
Performance Shares, Total Shareholder Return Target | |||||||
Weighted average FMV per unit | |||||||
Performance target percentage | 25.00% | ||||||
Performance stock units | |||||||
Weighted average FMV per unit | |||||||
Performance measurement period | 3 years | 3 years | |||||
Performance stock units | ParentCo | |||||||
Weighted average FMV per unit | |||||||
Awards subsequently converted to stock units with no performance condition, percentage of target | 100.00% | 97.50% | |||||
Stock units with market condition | |||||||
Weighted average FMV per unit | |||||||
Outstanding, beginning of period (in dollars per share) | $ 10.02 | $ 11.93 | |||||
Outstanding, end of period (in dollars per share) | $ 46.17 | $ 10.02 | $ 46.17 | $ 10.02 | $ 11.93 | ||
Estimated volatility rate | 50.10% | 35.40% | 33.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent [Abstract] | |||
Balance at beginning of period | $ 1,447 | $ 2,973 | $ 2,969 |
Other comprehensive income (loss): | |||
Total Other comprehensive income, net of tax | 650 | 146 | 45 |
Balance at end of period | 1,559 | 1,447 | 2,973 |
Amount related to settlement of certain employee retirement benefits | 584 | 199 | 0 |
Accumulated other comprehensive (loss) income | |||
AOCI Attributable to Parent [Abstract] | |||
Balance at beginning of period | (1,761) | 295 | 250 |
Other comprehensive income (loss): | |||
Total Other comprehensive income, net of tax | 650 | 146 | 45 |
Balance at end of period | (1,111) | (1,761) | 295 |
Pension and other postretirement benefits | |||
AOCI Attributable to Parent [Abstract] | |||
Balance at beginning of period | (1,791) | (43) | (32) |
Establishment of additional defined benefit plans | 0 | (1,752) | 0 |
Separation-related adjustments | 0 | (50) | 0 |
Other comprehensive income (loss): | |||
Unrecognized net actuarial loss and prior service benefit / Net change from periodic revaluations | 190 | (259) | (16) |
Tax (expense) benefit | (43) | 62 | 3 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 147 | (197) | (13) |
Amortization of net actuarial loss and prior service benefit / Net amount reclassified to earnings | 680 | 326 | 3 |
Tax expense | (157) | (75) | (1) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 523 | 251 | 2 |
Total Other comprehensive income, net of tax | 670 | 54 | (11) |
Balance at end of period | (1,121) | (1,791) | (43) |
Foreign currency translation | |||
AOCI Attributable to Parent [Abstract] | |||
Balance at beginning of period | 29 | 338 | 282 |
Separation-related adjustments | 0 | (396) | 0 |
Other comprehensive income (loss): | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | (4) | 65 | 56 |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 0 | 22 | 0 |
Total Other comprehensive income, net of tax | (4) | 87 | 56 |
Balance at end of period | 25 | 29 | 338 |
Cash flow hedges | |||
AOCI Attributable to Parent [Abstract] | |||
Balance at beginning of period | 1 | 0 | |
Separation-related adjustments | 0 | (4) | |
Other comprehensive income (loss): | |||
Unrecognized net actuarial loss and prior service benefit / Net change from periodic revaluations | (161) | (2) | |
Tax (expense) benefit | 37 | 1 | |
Total Other comprehensive income (loss) before reclassifications, net of tax | (124) | (1) | |
Amortization of net actuarial loss and prior service benefit / Net amount reclassified to earnings | 140 | 8 | |
Tax expense | (32) | (2) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 108 | 6 | |
Total Other comprehensive income, net of tax | (16) | 5 | |
Balance at end of period | $ (15) | $ 1 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 350 | $ 282 |
Work-in-process | 1,105 | 635 |
Purchased raw materials | 109 | 59 |
Operating supplies | 66 | 67 |
Inventories | $ 1,630 | $ 1,043 |
Properties, Plants, and Equip_3
Properties, Plants, and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, net | $ 2,651 | $ 2,712 |
Properties, plants, and equipment, excluding construction work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 7,360 | 7,307 |
Less: accumulated depreciation and amortization | 4,878 | 4,697 |
Properties, plants, and equipment, net | 2,482 | 2,610 |
Land and land rights | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 22 | 23 |
Structures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,505 | 1,493 |
Structures | Operating Segments | Rolled Products | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,107 | 1,095 |
Structures | Operating Segments | Building and Construction Systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 96 | 95 |
Structures | Operating Segments | Extrusions | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 150 | 150 |
Structures | Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 152 | 153 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,833 | 5,791 |
Machinery and equipment | Operating Segments | Rolled Products | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,816 | 4,787 |
Machinery and equipment | Operating Segments | Building and Construction Systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 203 | 205 |
Machinery and equipment | Operating Segments | Extrusions | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 523 | 520 |
Machinery and equipment | Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 291 | 279 |
Construction work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, net | $ 169 | $ 102 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||||
Goodwill | $ 415 | $ 418 | $ 414 | |
Accumulated impairment losses | (93) | (28) | (28) | |
Goodwill [Roll Forward] | ||||
Goodwill, net - beginning balance | 390 | 386 | ||
Goodwill, Written off Related to Sale of Business Unit | 7 | |||
Translation | (3) | 11 | ||
Goodwill, Total | 322 | 390 | 386 | |
Write-off of goodwill | (65) | 0 | 0 | |
Goodwill and Intangible Asset Impairment | 65 | 0 | 0 | |
Rolled Products | ||||
Goodwill [Line Items] | ||||
Goodwill | 253 | 254 | 246 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Goodwill [Roll Forward] | ||||
Goodwill, net - beginning balance | 254 | 246 | ||
Goodwill, Written off Related to Sale of Business Unit | 1 | |||
Translation | (1) | 9 | ||
Goodwill, Total | 253 | 254 | 246 | $ 254 |
Write-off of goodwill | 0 | |||
Building and Construction Systems | ||||
Goodwill [Line Items] | ||||
Goodwill | 97 | 99 | 97 | |
Accumulated impairment losses | (28) | (28) | (28) | |
Goodwill [Roll Forward] | ||||
Goodwill, net - beginning balance | 71 | 69 | ||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Translation | (2) | 2 | ||
Goodwill, Total | 69 | 71 | 69 | 70 |
Write-off of goodwill | 0 | |||
Extrusions | ||||
Goodwill [Line Items] | ||||
Goodwill | 65 | 65 | 71 | |
Accumulated impairment losses | (65) | 0 | 0 | |
Goodwill [Roll Forward] | ||||
Goodwill, net - beginning balance | 65 | 71 | ||
Goodwill, Written off Related to Sale of Business Unit | 6 | |||
Translation | 0 | 0 | ||
Goodwill, Total | 0 | $ 65 | $ 71 | $ 65 |
Write-off of goodwill | $ (65) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 603 | $ 599 |
Accumulated amortization | (565) | (552) |
Net carrying amount | 38 | 47 |
Computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 555 | 550 |
Accumulated amortization | (523) | (510) |
Net carrying amount | 32 | 40 |
Patents and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 27 | 28 |
Accumulated amortization | (27) | (28) |
Net carrying amount | 0 | 0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 21 | 21 |
Accumulated amortization | (15) | (14) |
Net carrying amount | $ 6 | $ 7 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 17 | $ 17 | $ 10 |
Expected amortization expense, 2021 | 16 | ||
Expected amortization expense, 2025 | $ 2 |
Leases_ (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||||
Lease cost | $ 59 | $ 62 | $ 63 | |
Right-of-use asset obtained in exchange for operating lease liability | 17 | $ 46 | ||
Operating Lease Obligation | ||||
Year one | 40 | |||
Year two | 30 | |||
Year three | 23 | |||
Year four | 17 | |||
Year five | 12 | |||
Thereafter | 28 | |||
Total lease payments | 150 | |||
Less: imputed interest | 25 | |||
Present value of lease liabilities | $ 125 | $ 150 | ||
Weighted-average remaining lease term | 6 years 1 month 6 days | 6 years 7 months 6 days | ||
Weighted-average discount rate | 5.80% | 5.90% |
Debt (Details)
Debt (Details) - USD ($) | Mar. 03, 2021 | May 13, 2020 | Apr. 02, 2020 | Apr. 01, 2020 | Mar. 25, 2020 | Feb. 07, 2020 | Feb. 05, 2020 | Mar. 25, 2020 | May 13, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Aug. 31, 2012 |
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | $ 700,000,000 | $ 700,000,000 | |||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (6,000,000) | (22,000,000) | ||||||||||||
Carrying value of long-term debt | 1,594,000,000 | 1,278,000,000 | ||||||||||||
Net proceeds | 1,168,000,000 | 319,000,000 | 2,400,000,000 | $ 0 | ||||||||||
Separation transaction, payment to parent | $ 728,000,000 | 728,000,000 | 0 | |||||||||||
Cash | $ 500,000,000 | $ 60,000,000 | ||||||||||||
Repayments of long-term debt | 0 | 1,100,000,000 | 0 | |||||||||||
Payment in discounts | 5,000,000 | 57,000,000 | $ 0 | |||||||||||
Write off from debt issuance costs | 19,000,000 | |||||||||||||
Term Loan, Credit Facility, 2025 Notes, and ABL Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Write off from debt issuance costs | $ 19,000,000 | |||||||||||||
Term Loan and Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs | $ 30,000,000 | $ 30,000,000 | 14,000,000 | |||||||||||
Write off from debt issuance costs | 16,000,000 | |||||||||||||
2025 Notes and ABL Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs | $ 15,000,000 | 15,000,000 | 12,000,000 | |||||||||||
Write off from debt issuance costs | 3,000,000 | |||||||||||||
ABL Credit Agreement | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 800,000,000 | 800,000,000 | ||||||||||||
Accordion feature increase limit (up to) | $ 350,000,000 | 350,000,000 | ||||||||||||
ABL Credit Agreement | Revolving Credit Facility | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, commitment fee | 0.25% | |||||||||||||
ABL Credit Agreement | Revolving Credit Facility | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, commitment fee | 0.375% | |||||||||||||
2028 Notes and Credit Agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs | $ 42,000,000 | 42,000,000 | ||||||||||||
Senior Secured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 6.125% | |||||||||||||
Senior Secured Notes | 2028 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 300,000,000 | $ 600,000,000 | 900,000,000 | $ 600,000,000 | ||||||||||
Fixed interest rate | 6.125% | |||||||||||||
Net proceeds | $ 593,000,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 106.25% | |||||||||||||
Senior Secured Notes | 2028 Notes | Redemption after February 14, 2023 / May 14, 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 103.063% | |||||||||||||
Senior Secured Notes | 2028 Notes | Redemption prior to February 15, 2023 / May 15, 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||
Debt redemption, additional make-whole charge | 1.00% | |||||||||||||
Basis spread on discount rate | 0.50% | |||||||||||||
Senior Secured Notes | 2028 Notes | Redemption prior to February 15, 2023 / May 15, 2022; limited to 40% of aggregate principal | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 106.125% | |||||||||||||
Redemption limitation based on aggregate principal | 40.00% | |||||||||||||
Minimum aggregate principal following redemption | 60.00% | |||||||||||||
Maximum term allowed for redemption following offering | 120 days | |||||||||||||
Senior Secured Notes | 2028 Notes | Redemption upon change in control | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||
Senior Secured Notes | 2028 Notes | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Required prior notice for debt redemption, term | 10 days | |||||||||||||
Senior Secured Notes | 2028 Notes | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Required prior notice for debt redemption, term | 60 days | |||||||||||||
Senior Secured Notes | 2025 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||||||||||
Fixed interest rate | 6.00% | 6.00% | ||||||||||||
Net proceeds | $ 691,000,000 | |||||||||||||
Senior Secured Notes | 2025 Notes | Redemption after February 14, 2023 / May 14, 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 103.00% | |||||||||||||
Senior Secured Notes | 2025 Notes | Redemption prior to February 15, 2023 / May 15, 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 100.00% | |||||||||||||
Debt redemption, additional make-whole charge | 1.00% | |||||||||||||
Basis spread on discount rate | 0.50% | |||||||||||||
Senior Secured Notes | 2025 Notes | Redemption prior to February 15, 2023 / May 15, 2022; limited to 40% of aggregate principal | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 106.00% | |||||||||||||
Redemption limitation based on aggregate principal | 40.00% | |||||||||||||
Minimum aggregate principal following redemption | 60.00% | |||||||||||||
Maximum term allowed for redemption following offering | 120 days | |||||||||||||
Senior Secured Notes | 2025 Notes | Redemption upon change in control | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt redemption percentage | 101.00% | |||||||||||||
Senior Secured Notes | 2025 Notes | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Required prior notice for debt redemption, term | 10 days | |||||||||||||
Senior Secured Notes | 2025 Notes | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Required prior notice for debt redemption, term | 60 days | |||||||||||||
Term Loan | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||||||||||||||
Debt Instrument, Unamortized Premium | $ 19,000,000 | |||||||||||||
Remaining debt issuance costs | 5,000,000 | |||||||||||||
Term Loan | 2028 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Net proceeds | $ 315,000,000 | |||||||||||||
Term Loan | Term Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | 600,000,000 | 600,000,000 | ||||||||||||
Net proceeds | $ 575,000,000 | |||||||||||||
Debt term (in years) | 7 years | |||||||||||||
Repayments of long-term debt | $ 600,000,000 | |||||||||||||
Credit Facility | Credit Facility | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||||
Debt term (in years) | 5 years | |||||||||||||
Proceeds from revolving credit facility | $ 500,000,000 | |||||||||||||
Repayments of long-term debt | $ 500,000,000 | |||||||||||||
Credit Facility | Credit Facility | Revolving Credit Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Financial maintenance covenant, percentage of aggregate commitments | 10.00% | |||||||||||||
Financial maintenance covenant, percentage of borrowing base | 10.00% | |||||||||||||
Financial maintenance covenant, minimum base amount | $ 50,000,000 | |||||||||||||
Financial maintenance covenant, term excess availability exceeds threshold | 30 days | |||||||||||||
Required fixed charge coverage ratio | 1 | |||||||||||||
Agent control of cash, percentage of aggregate commitments | 12.50% | |||||||||||||
Agent control of cash, percentage of borrowing base | 12.50% | |||||||||||||
Agent control of cash, minimum base amount | $ 62,500,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage [Abstract] | ||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 790,000,000 | |||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Agent control of cash, term excess availability exceeds threshold | 5 days | |||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Agent control of cash, term excess availability exceeds threshold | 30 days | |||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Fed funds effective rate and overnight bank funding rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||||
Applicable margin | 2.25% | 2.25% | ||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fixed interest rate | 0.75% | 0.75% | ||||||||||||
Applicable margin | 1.75% | 1.75% | ||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 2.25% | 2.25% | ||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 1.25% | 1.25% | ||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 0.75% | 0.75% | ||||||||||||
Credit Facility | ABL Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 1.25% | 1.25% | ||||||||||||
Bonds | Midwestern Disaster Area Revenue Bonds Series 2012 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 250,000,000 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Cash Paid for Interest and Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of amount capitalized | $ 87 | $ 48 | $ 107 |
Income taxes, net of amount refunded | $ 26 | $ 27 | $ 29 |
Cash Flow Information - Narrati
Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Cash Flow Information [Abstract] | |||
Restricted cash (less than) | $ 30 | $ 30 | $ 30 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | Mar. 01, 2020USD ($)employee | Feb. 01, 2020USD ($)employee | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Oct. 31, 2018USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Cash payments to settle working capital and other adjustments | $ 2 | |||||||||||
Goodwill, Impairment Loss | $ 65 | $ 0 | $ 0 | |||||||||
Total sales | 7,504 | 5,675 | 7,277 | |||||||||
Reclassification from properties, plants, and equipment, net | $ (2,712) | (2,651) | (2,712) | |||||||||
Reclassification from deferred income tax assets | (329) | (229) | (329) | |||||||||
Reclassification from other noncurrent liabilities and deferred credits | (102) | (85) | (102) | |||||||||
Cumulative effect of accounting change | 1,447 | $ 2,969 | 1,559 | 1,447 | 2,973 | |||||||
Adoption of accounting standard | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Reclassification from properties, plants, and equipment, net | 24 | |||||||||||
Reclassification from deferred income tax assets | 22 | |||||||||||
Reclassification from other noncurrent liabilities and deferred credits | 119 | |||||||||||
Cumulative effect of accounting change | 73 | 73 | ||||||||||
Disposed of by sale | Aluminum Rolling Mill in Itapissuma, Brazil | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Consideration received | $ 46 | |||||||||||
Gain (loss) on sale | $ (60) | |||||||||||
Charges (credits) associated with sale | $ 6 | 53 | ||||||||||
Cash payments to settle working capital and other adjustments | 4 | |||||||||||
Additional cash received as a post-closing adjustment | $ 1 | |||||||||||
Total sales | 143 | |||||||||||
Number of employees | employee | 500 | |||||||||||
Disposed of by sale | Hard Alloy Extrusions Plant in South Korea | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Consideration received | $ 55 | |||||||||||
Gain (loss) on sale | 31 | |||||||||||
Goodwill, Impairment Loss | $ 6 | |||||||||||
Additional cash received as a post-closing adjustment | $ 1 | |||||||||||
Total sales | 51 | |||||||||||
Number of employees | employee | 160 | |||||||||||
Disposed of by sale | Texarkana Rolling Mill and Cast House | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Consideration received | $ 302 | |||||||||||
Gain (loss) on sale | $ 154 | |||||||||||
Net book value | 63 | |||||||||||
Additional contingent consideration (up to) | $ 20 | $ 50 | 25 | $ 20 | ||||||||
Period post transaction closing date for measurement of various milestones required to achieve for additional contingent consideration | 36 months | |||||||||||
Period Arconic Corporation will continue to produce aluminum slab at facility through lease back of cash house building and equipment | 18 months | |||||||||||
Period after lease back period that Ta Chen will perform toll processing of metal for Arconic Corporation | 6 months | |||||||||||
Period that Arconic Corp will supply Ta Chen with cold-rolled aluminum coil | 24 months | |||||||||||
Fair value of contingent consideration | $ 5 | |||||||||||
Deferred gain recognized as noncurrent liability | $ 95 |
Contingencies and Commitments_
Contingencies and Commitments (Details) $ in Millions | Dec. 23, 2020claimantdefendant | Jun. 26, 2020claimant | Jun. 12, 2020USD ($)firefighterclaimantpolice_officer | Jun. 11, 2020firefighter | Jun. 06, 2019plaintiff | Sep. 15, 2017executive | Jun. 30, 2019USD ($) | Feb. 23, 2021firefighter | Feb. 23, 2021firefighter | Dec. 31, 2021USD ($)claimantsegmentfirefighterpolice_officer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)request |
Site Contingency [Line Items] | |||||||||||||
Environmental remediation | $ 64 | $ 156 | |||||||||||
Environmental remediation, current | 15 | 90 | |||||||||||
Accounts payable, trade | 1,718 | 1,106 | |||||||||||
Remediation reserve decrease | (5) | 2 | |||||||||||
Remediation reserve reversal liability | 5 | ||||||||||||
Environmental remediation, additions | 5 | ||||||||||||
Environmental remediation, payments | 84 | 82 | $ 56 | ||||||||||
Environmental remediation, increase for obligations transferred in connection with Separation | 13 | ||||||||||||
Environmental remediation, decrease for other items | 3 | ||||||||||||
Purchase commitments due in 2021 | 3,287 | ||||||||||||
Purchase commitments due in 2022 | 270 | ||||||||||||
Purchase commitments due in 2023 | 40 | ||||||||||||
Purchase commitments due in 2024 | 37 | ||||||||||||
Purchase commitments due in 2025 | 35 | ||||||||||||
Purchase commitments due thereafter | 24 | ||||||||||||
Guarantor obligations, carrying value | 2 | ||||||||||||
Total amount committed under letters of credit | 10 | ||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 335 | 787 | 72 | $ 81 | |||||||||
Cash and cash equivalents | 335 | 787 | |||||||||||
Total sales | 7,504 | 5,675 | 7,277 | ||||||||||
Russia | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 79 | ||||||||||||
Percentage Of Cash | 24.00% | ||||||||||||
Percentage of Liquidity | 7.00% | ||||||||||||
Total sales | $ 793 | 535 | 512 | ||||||||||
Samara, Russia | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Total sales | $ 968 | ||||||||||||
Percentage Of Third Party Sales | 16.00% | ||||||||||||
Segment Adjusted EBITDA | $ 87 | ||||||||||||
Percentage Of Segment Adjusted EBITDA | 13.00% | ||||||||||||
Revolving Credit Facility | ABL Credit Agreement | Credit Facility | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 790 | ||||||||||||
Howmet Aerospace | Arconic Corporation | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Guarantor obligations, carrying value | 0 | ||||||||||||
Total amount committed under letters of credit | 27 | ||||||||||||
Alcoa Corporation | Arconic Corporation | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Guarantor obligations, carrying value | 16 | ||||||||||||
Total amount committed under letters of credit | 0 | ||||||||||||
Surety Bonds | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Total amount committed under surety bonds | 43 | ||||||||||||
Surety Bonds | Howmet Aerospace | Arconic Corporation | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Total amount committed under surety bonds | 4 | ||||||||||||
Surety Bonds | Alcoa Corporation | Arconic Corporation | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Total amount committed under surety bonds | $ 5 | ||||||||||||
Grenfell Tower Fire, Survivors and Estates of Decedents | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of defendants | defendant | 23 | ||||||||||||
Survivors and Estates of Decedents, Represented by Birnberg Peirce Ltd | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 118 | 4 | 113 | ||||||||||
Survivors and Estates of Decedents, Represented by Howe & Co Solicitors | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 2 | ||||||||||||
Survivors and Estates of Decedents, Represented by Russell-Cooke LLP | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 34 | 3 | 33 | ||||||||||
Survivors and Estates of Decedents, Represented by Deighton Pierce Glynn | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 7 | ||||||||||||
GreSurvivors and Estates of Decedents, Represented by SMQ Legal Services | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 5 | 6 | |||||||||||
Survivors and Estates of Decedents, Represented by Scott Moncrieff | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 4 | 3 | |||||||||||
Survivors and Estates of Decedents, Represented by Saunders Law | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 31 | 27 | |||||||||||
Survivors and Estates of Decedents, Represented by Imran Khan & Partners | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 40 | 47 | |||||||||||
Survivors and Estates of Decedents, Represented by Howe & Co | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 61 | 58 | |||||||||||
Survivors and Estates of Decedents, Represented by Hodge Jones and Allen Solicitor | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 114 | ||||||||||||
Survivors and Estates of Decedents, Represented by Hickman & Rose | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 19 | 23 | |||||||||||
Survivors and Estates of Decedents, Represented by Duncan Lewis Solicitors | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 5 | 10 | |||||||||||
Survivors and Estates of Decedents, Represented by Bindmans LLP | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 341 | ||||||||||||
Survivors and Estates of Decedents, Represented by Bhatt Murphy Ltd | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 82 | 76 | |||||||||||
Emergency Responders, Represented by Thompsons Solicitors | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | firefighter | 98 | 80 | |||||||||||
Number of additional plaintiffs added to suit | firefighter | 10 | 7 | |||||||||||
Emergency Responders, Represented by Penningtons Manches Cooper LLP | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | police_officer | 27 | 36 | |||||||||||
Emergency Responders, Represented by Pattinson and Brewer | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | firefighter | 2 | ||||||||||||
Number of claimants withdrawn from suit | firefighter | 1 | ||||||||||||
Behrens v. Arconic | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | plaintiff | 247 | ||||||||||||
Sullivan v. Arconic | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of former executives | executive | 3 | ||||||||||||
Airbus Matters | Damages from Product Defects | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of separate confidential requests for arbitration | request | 3 | ||||||||||||
Damages sought (in excess of) | $ 200 | ||||||||||||
Grenfell Tower Fire, Survivors And Estates Of Decedents, Represented By Slater & Gordon | Grenfell Tower Fire | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of claimants/plaintiffs | claimant | 27 | 24 | |||||||||||
Federal Antimonopoly Services of the Russian Federation Litigation | Non-Compliance with Russian Federal Law No. 57-FZ | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Loss Contingency, Number Of Subsidiaries | segment | 2 | ||||||||||||
Aluminum Rolling Mill in Brazil | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Environmental remediation, additions | 1 | ||||||||||||
Active Remediation Systems and/or Monitoring and Inspection Programs at Several Sites | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Environmental remediation, additions | 2 | ||||||||||||
Environmental remediation, decrease for other items | $ 4 | ||||||||||||
Massena West, NY | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Environmental remediation | 30 | $ 115 | |||||||||||
Remediation reserve reversal liability | (11) | $ 25 | |||||||||||
Environmental remediation, additions | $ 25 | ||||||||||||
Massena West, NY | Construction work-in-progress | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Environmental remediation | 5 | ||||||||||||
Massena West, NY | Maintenance | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Environmental remediation | 25 | ||||||||||||
Massena West, NY | Legal Matters, Other | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Remediation reserve reversal liability | $ (2) |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Reported Value Measurement | ||
Derivatives, Fair Value [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 335 | $ 787 |
Derivative Asset | 1 | 3 |
Short-term Debt, Fair Value | 0 | 14 |
Derivative Liability | 23 | 2 |
Fair value of long-term debt | 1,594 | 1,278 |
Estimate of Fair Value Measurement | ||
Derivatives, Fair Value [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 335 | 787 |
Derivative Asset | 1 | 3 |
Short-term Debt, Fair Value | 0 | 14 |
Derivative Liability | 23 | 2 |
Fair value of long-term debt | $ 1,692 | $ 1,399 |
Subsequent Events_ (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 16, 2022 | Jan. 05, 2022 | May 13, 2020 | Jan. 02, 2020 | |
Subsequent Event [Line Items] | ||||||||
Cash contributions to pension plans | $ 458,000,000 | $ 271,000,000 | $ 3,000,000 | |||||
Cash and cash equivalents | 335,000,000 | 787,000,000 | ||||||
Receivables from customers, less allowances of $1 in both 2021 and 2020 | 922,000,000 | 631,000,000 | $ 281,000,000 | |||||
Subsequent events | Receivables Purchase Agreement | ||||||||
Subsequent Event [Line Items] | ||||||||
Sale of Customer Receivables | $ 113,000,000 | |||||||
Receivables Purchase Agreement | $ 100,000,000 | |||||||
Cash and cash equivalents | 28,000,000 | |||||||
Receivables from customers, less allowances of $1 in both 2021 and 2020 | $ 77,000,000 | |||||||
Revolving Credit Facility | ABL Credit Agreement | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||
Revolving Credit Facility | ABL Credit Agreement | Credit Facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 790,000,000 | |||||||
Revolving credit facility, current borrowing capacity | 800,000,000 | |||||||
Revolving Credit Facility | ABL Credit Agreement | Credit Facility | Subsequent events | ||||||||
Subsequent Event [Line Items] | ||||||||
Revolving credit facility, current borrowing capacity | $ 1,200,000,000 | |||||||
Revolving credit facility, maximum borrowing capacity | 350,000,000 | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 1,000,000 | |||||||
Funded | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash contributions to pension plans | $ 458,000,000 | $ 271,000,000 |
Uncategorized Items - arnc-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |
Common Stock [Member] | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation | 183,850 |