Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ARNC | |
Entity Registrant Name | Arconic Inc. | |
Entity Central Index Key | 4,281 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 441,030,999 |
Statement of Consolidated Opera
Statement of Consolidated Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales (I) | $ 3,261 | $ 3,234 | $ 6,453 | $ 6,289 |
Cost of goods sold (exclusive of expenses below) | 2,583 | 2,533 | 5,075 | 4,933 |
Selling, general administrative, and other expenses | 204 | 239 | 425 | 444 |
Research and development expenses | 30 | 32 | 58 | 63 |
Provision for depreciation and amortization | 137 | 133 | 270 | 266 |
Restructuring and other charges (D & E) | 26 | 14 | 99 | 30 |
Operating income | 281 | 283 | 526 | 553 |
Interest expense (L) | 183 | 124 | 298 | 245 |
Other income, net (G) | (171) | (17) | (525) | (29) |
Income from continuing operations before income taxes | 269 | 176 | 753 | 337 |
Provision for income taxes | 57 | 123 | 219 | 174 |
Income from continuing operations after income taxes | 212 | 53 | 534 | 163 |
Income from discontinued operations after income taxes (G) | 125 | 26 | ||
Net income | 212 | 178 | 534 | 189 |
Less: Income from discontinued operations attributable to noncontrolling interests (G) | 43 | 38 | ||
Net income attributable to Arconic | 212 | 135 | 534 | 151 |
Amounts Attributable to Arconic Common Shareholders (J): | ||||
Net income | $ 194 | $ 118 | $ 499 | $ 117 |
Earnings per share - basic | ||||
Continuing operations | $ 0.44 | $ 0.08 | $ 1.13 | $ 0.30 |
Discontinued operations | 0.19 | (0.03) | ||
Net income per share - basic | 0.44 | 0.27 | 1.13 | 0.27 |
Earnings per share - diluted | ||||
Continuing operations | 0.43 | 0.08 | 1.07 | 0.29 |
Discontinued operations | 0.19 | (0.03) | ||
Net income per share - diluted | 0.43 | 0.27 | 1.07 | 0.26 |
Dividends paid per share | $ 0.06 | $ 0.09 | $ 0.12 | $ 0.18 |
Weighted Average Shares Outstanding (J): | ||||
Average shares outstanding - basic | 441 | 438 | 440 | 438 |
Average shares outstanding - diluted | 462 | 452 | 500 | 442 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 212 | $ 178 | $ 534 | $ 189 |
Other comprehensive income (loss), net of tax (C): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 48 | 67 | 79 | 100 |
Foreign currency translation adjustments | 99 | 77 | 166 | 487 |
Net change in unrealized gains/losses on available-for-sale securities | (101) | 3 | (134) | 4 |
Net change in unrecognized gains/losses on cash flow hedges | (2) | (137) | 3 | (219) |
Total Other comprehensive income (loss), net of tax | 44 | 10 | 114 | 372 |
Comprehensive income | 256 | 188 | 648 | 561 |
Arconic [Member] | ||||
Net income | 212 | 135 | 534 | 151 |
Other comprehensive income (loss), net of tax (C): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 48 | 65 | 79 | 97 |
Foreign currency translation adjustments | 99 | 45 | 166 | 348 |
Net change in unrealized gains/losses on available-for-sale securities | (101) | 3 | (134) | 4 |
Net change in unrecognized gains/losses on cash flow hedges | (2) | (153) | 3 | (233) |
Total Other comprehensive income (loss), net of tax | 44 | (40) | 114 | 216 |
Comprehensive income | $ 256 | 95 | $ 648 | 367 |
Noncontrolling Interests [Member] | ||||
Net income | 43 | 38 | ||
Other comprehensive income (loss), net of tax (C): | ||||
Change in unrecognized net actuarial loss and prior service cost/benefit related to pension and other postretirement benefits | 2 | 3 | ||
Foreign currency translation adjustments | 32 | 139 | ||
Net change in unrecognized gains/losses on cash flow hedges | 16 | 14 | ||
Total Other comprehensive income (loss), net of tax | 50 | 156 | ||
Comprehensive income | $ 93 | $ 194 |
Consolidated Balance Sheet (una
Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 1,785 | $ 1,863 |
Receivables from customers, less allowances of $8 in 2017 and $13 in 2016 (K) | 1,170 | 974 |
Other receivables (G & K) | 357 | 477 |
Inventories (F) | 2,416 | 2,253 |
Prepaid expenses and other current assets | 305 | 325 |
Total current assets | 6,033 | 5,892 |
Properties, plants, and equipment | 11,738 | 11,572 |
Less: accumulated depreciation and amortization | 6,231 | 6,073 |
Properties, plants, and equipment, net | 5,507 | 5,499 |
Goodwill | 5,215 | 5,148 |
Deferred income taxes | 1,080 | 1,234 |
Investment in common stock of Alcoa Corporation (G & N) | 0 | 1,020 |
Other noncurrent assets | 1,271 | 1,245 |
Total Assets | 19,106 | 20,038 |
Current liabilities: | ||
Short-term borrowings | 48 | 36 |
Accounts payable, trade | 1,667 | 1,744 |
Accrued compensation and retirement costs | 363 | 398 |
Taxes, including income taxes | 77 | 85 |
Accrued interest payable | 124 | 153 |
Other current liabilities | 379 | 329 |
Long-term debt due within one year | 4 | |
Total current liabilities | 2,658 | 2,749 |
Long-term debt, less amount due within one year (L & N) | 6,796 | 8,044 |
Accrued pension benefits | 2,202 | 2,345 |
Accrued other postretirement benefits | 822 | 889 |
Other noncurrent liabilities and deferred credits | 875 | 870 |
Total liabilities | 13,353 | 14,897 |
Contingencies and commitments (H) | ||
Arconic shareholders' equity: | ||
Preferred stock | 55 | 55 |
Mandatory convertible preferred stock | 3 | 3 |
Common stock | 441 | 438 |
Additional capital | 8,262 | 8,214 |
Accumulated deficit | (567) | (1,027) |
Accumulated other comprehensive loss (C) | (2,454) | (2,568) |
Total Arconic shareholders' equity | 5,740 | 5,115 |
Noncontrolling interests | 13 | 26 |
Total equity | 5,753 | 5,141 |
Total Liabilities and Equity | $ 19,106 | $ 20,038 |
Consolidated Balance Sheet (un5
Consolidated Balance Sheet (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Receivables from customers, allowance | $ 8 | $ 13 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash from Operations | ||
Net income | $ 534 | $ 189 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation, depletion and amortization | 270 | 622 |
Deferred income taxes | 27 | (78) |
Equity income, net of dividends | 20 | |
Restructuring and other charges | 99 | 116 |
Net gain from investing activities - asset sales (G) | (515) | (28) |
Net periodic pension benefit cost (M) | 108 | 168 |
Stock-based compensation | 48 | 55 |
Other | 63 | 19 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | ||
(Increase) in receivables | (282) | (218) |
(Increase) in inventories | (150) | (3) |
Decrease in prepaid expenses and other current assets | 30 | 4 |
(Decrease) in accounts payable, trade | (69) | (243) |
(Decrease) in accrued expenses | (105) | (301) |
Increase in taxes, including income taxes | 121 | 57 |
Pension contributions | (163) | (147) |
(Increase) in noncurrent assets | (60) | (215) |
(Decrease) in noncurrent liabilities | (39) | (115) |
Cash used for operations | (83) | (98) |
Financing Activities | ||
Net change in short-term borrowings (original maturities of three months or less) | 9 | (5) |
Additions to debt (original maturities greater than three months) | 512 | 876 |
Payments on debt (original maturities greater than three months) (L) | (1,333) | (882) |
Proceeds from exercise of employee stock options | 26 | 2 |
Dividends paid to shareholders | (88) | (114) |
Distributions to noncontrolling interests | (14) | (84) |
Other | (15) | |
Cash used for financing activities | (903) | (207) |
Investing Activities | ||
Capital expenditures | (229) | (528) |
Proceeds from the sale of assets and businesses (E) | (9) | 549 |
Additions to investments | (1) | (8) |
Sales of investments (G) | 888 | 275 |
Net change in restricted cash | 10 | 7 |
Other (G) | 245 | 15 |
Cash provided from investing activities | 904 | 310 |
Effect of exchange rate changes on cash and cash equivalents | 4 | 5 |
Net change in cash and cash equivalents | (78) | 10 |
Cash and cash equivalents at beginning of year | 1,863 | 1,919 |
Cash and cash equivalents at end of period | $ 1,785 | $ 1,929 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity (unaudited) - USD ($) $ in Millions | Total | Preferred Class A [Member] | Preferred Class B [Member] | Preferred Stock [Member] | Mandatory Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Retained Earnings (Accumulated Deficit) [Member]Preferred Class A [Member] | Retained Earnings (Accumulated Deficit) [Member]Preferred Class B [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2015 | $ 14,131 | $ 55 | $ 3 | $ 1,391 | $ 10,019 | $ 8,834 | $ (2,825) | $ (5,431) | $ 2,085 | ||||
Net income | 189 | 151 | 38 | ||||||||||
Other comprehensive income (C) | 372 | 216 | 156 | ||||||||||
Cash dividends declared: | |||||||||||||
Common share, value | (79) | (79) | |||||||||||
Preferred share, value | $ (1) | $ (34) | $ (1) | $ (34) | |||||||||
Stock-based compensation | 55 | 55 | |||||||||||
Common stock issued: compensation plans | (19) | (197) | 178 | ||||||||||
Distributions | (84) | (84) | |||||||||||
Other | (1) | (1) | |||||||||||
Balance at Jun. 30, 2016 | 14,529 | 55 | 3 | 1,391 | 9,877 | 8,871 | (2,647) | (5,215) | 2,194 | ||||
Balance at Mar. 31, 2016 | 14,361 | 55 | 3 | 1,391 | 9,856 | 8,753 | (2,657) | (5,175) | 2,135 | ||||
Net income | 178 | 135 | 43 | ||||||||||
Other comprehensive income (C) | 10 | (40) | 50 | ||||||||||
Cash dividends declared: | |||||||||||||
Preferred share, value | (17) | (17) | |||||||||||
Stock-based compensation | 29 | 29 | |||||||||||
Common stock issued: compensation plans | 2 | (8) | 10 | ||||||||||
Distributions | (34) | (34) | |||||||||||
Balance at Jun. 30, 2016 | 14,529 | 55 | 3 | 1,391 | 9,877 | 8,871 | $ (2,647) | (5,215) | 2,194 | ||||
Balance at Dec. 31, 2016 | 5,141 | 55 | 3 | 438 | 8,214 | (1,027) | (2,568) | 26 | |||||
Net income | 534 | 534 | |||||||||||
Other comprehensive income (C) | 114 | 114 | |||||||||||
Cash dividends declared: | |||||||||||||
Common share, value | (54) | (54) | |||||||||||
Preferred share, value | $ (1) | (34) | $ (1) | (34) | |||||||||
Stock-based compensation | 48 | 48 | |||||||||||
Common stock issued: compensation plans | 3 | 3 | |||||||||||
Distributions | (14) | (14) | |||||||||||
Other | 16 | 15 | 1 | ||||||||||
Balance at Jun. 30, 2017 | 5,753 | 55 | 3 | 441 | 8,262 | (567) | (2,454) | 13 | |||||
Balance at Mar. 31, 2017 | 5,495 | 55 | 3 | 441 | 8,249 | (768) | (2,498) | 13 | |||||
Net income | 212 | 212 | |||||||||||
Other comprehensive income (C) | 44 | 44 | |||||||||||
Cash dividends declared: | |||||||||||||
Preferred share, value | $ (18) | $ (18) | |||||||||||
Stock-based compensation | 20 | 20 | |||||||||||
Common stock issued: compensation plans | (7) | (7) | |||||||||||
Other | 7 | 7 | |||||||||||
Balance at Jun. 30, 2017 | $ 5,753 | $ 55 | $ 3 | $ 441 | $ 8,262 | $ (567) | $ (2,454) | $ 13 |
Statement of Changes in Consol8
Statement of Changes in Consolidated Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common stock, dividends per share | $ 0.12 | $ 0.06 | ||
Preferred Class A [Member] | ||||
Preferred, dividends per share | $ 0.9375 | $ 0.9375 | 1.875 | 1.875 |
Preferred Class B [Member] | ||||
Preferred, dividends per share | $ 6.71875 | $ 6.71875 | $ 13.4375 | $ 13.4375 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | A. Basis of Presentation The interim Consolidated Financial Statements of Arconic Inc. and its subsidiaries (“Arconic” or the “Company”) are unaudited. These Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the entire year. The 2016 year-end 10-Q 10-K The separation of Alcoa Inc. into two standalone, publicly-traded companies, Arconic Inc. (the new name for Alcoa Inc.) and Alcoa Corporation, became effective on November 1, 2016 (the “Separation Transaction”). The financial results of Alcoa Corporation for all periods prior to the Separation Transaction have been retrospectively reflected in the Statement of Consolidated Operations as discontinued operations and, as such, have been excluded from continuing operations and segment results for the second quarter and six months ended June 30, 2016. The cash flows, equity and comprehensive income related to Alcoa Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows, Statement of Changes in Consolidated Equity and Statement of Consolidated Comprehensive Income, respectively, for the second quarter and six months ended June 30, 2016. Pursuant to the authorization provided at a special meeting of Arconic common shareholders held on October 5, 2016, shareholders approved a 1-for-3 |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | B. Recently Adopted and Recently Issued Accounting Guidance Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued changes to employee share-based payment accounting. Previously, an entity determined for each share-based payment award whether the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes resulted in either an excess tax benefit or a tax deficiency. Excess tax benefits were recognized in additional paid-in tax-withholding In March 2016, the FASB issued changes eliminating the requirement for an investor to adjust an equity method investment, results of operations, and retained earnings retroactively on a step-by-step available-for-sale In March 2016, the FASB issued changes to derivative instruments designated as hedging instruments. These changes clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. These changes became effective for Arconic on January 1, 2017. Management has determined that the adoption of this guidance did not have a material impact on the Consolidated Financial Statements. In October 2016, the FASB issued changes to the accounting for Intra-Entity transactions, other than inventory. Previously, no immediate tax impact was recognized in the consolidated financial statements as a result of intra-entity transfers of assets. The previous standard precluded an entity from reflecting a tax benefit or expense from an intra-entity transfer between entities that file separate tax returns, whether or not such entities were in different tax jurisdictions, until the asset was sold to a third party or otherwise recovered. The previous standard also prohibited recognition by the buyer of a deferred tax asset for the temporary difference arising from the excess of the buyer’s tax basis over the cost to the seller. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. The exception to defer the tax consequences of inventory transactions is maintained. These changes became effective for Arconic on January 1, 2017. Management has determined that the adoption of this guidance did not have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued changes to the subsequent measurement of goodwill by eliminating step 2 from the goodwill impairment test, which previously required measurement of any goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. An entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value without exceeding the total amount of goodwill allocated to that reporting unit. Arconic has elected to early adopt this guidance as of January 1, 2017, and will apply it on a prospective basis. Management does not anticipate that the adoption of these changes will have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued changes which narrow the definition of a business and require an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, which would not constitute the acquisition of a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs. Arconic has elected to early adopt this guidance as of January 1, 2017, and will apply it on a prospective basis. Management does not anticipate that the adoption of these changes will have a material impact on the Consolidated Financial Statements. Issued In May 2014, the FASB issued changes to the recognition of revenue from contracts with customers. These changes created a comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue and, therefore, supersede virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB deferred the effective date of the new guidance by one year, making these changes effective for Arconic on January 1, 2018. Arconic expects to adopt the new guidance using the modified retrospective transition approach. The Company has formed a project assessment and adoption team and is currently reviewing contract terms and assessing the impact of adopting the new guidance on the Consolidated Financial Statements. Based on the Company’s initial contract assessment, it believes that revenue under certain contracts will continue to be recognized at a point in time, while revenue under other contracts, primarily within the Engineered Products and Solutions segment, may be recognized over time due to no alternative use for the product as well as an enforceable right of payment from the customer in the event of termination of the contract. The Company is continuing to assess the impact that over-time revenue recognition will have on its Consolidated Financial Statements, therefore an estimate of the impact of adopting this standard is not currently determinable. In January 2016, the FASB issued changes to equity investments. These changes require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Additionally, the impairment assessment of equity investments without readily determinable fair values has been simplified by requiring a qualitative assessment to identify impairment. These changes become effective for Arconic on January 1, 2018. Management has determined that the potential impact of these changes on the Consolidated Financial Statements will not be material. In February 2016, the FASB issued changes 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 for all leases with terms longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right of use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. These changes become effective for Arconic on January 1, 2019. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. An estimate of the impact of this standard is not currently determinable. In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance 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. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. These changes become effective for Arconic on January 1, 2020. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. In August 2016, the FASB issued changes to the classification of certain cash receipts and cash payments within the statement of cash flows. The guidance identifies eight specific cash flow items and the sections where they must be presented within the statement of cash flows. These changes become effective for Arconic on January 1, 2018 and early adoption is permitted. Management does not expect these changes to have a material impact on the Consolidated Financial Statements. In November 2016, the FASB issued changes to the classification of cash and cash equivalents within the cash flow statement. Restricted cash and restricted cash equivalents will be included within the cash and cash equivalents line on the cash flow statement and a reconciliation must be prepared to the statement of financial position. Transfers between restricted cash and restricted cash equivalents and cash and cash equivalents will no longer be presented as cash flow activities in the statement of cash flows and material balances of restricted cash and restricted cash equivalents must disclose information regarding the nature of the restrictions. These changes become effective for Arconic on January 1, 2018. Management has determined that the adoption of these changes will not have a material impact on the Consolidated Financial Statements. In March 2017, the FASB issued changes to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. These changes become effective for Arconic on January 1, 2019 and early adoption is permitted. Management has determined that the adoption of these changes will not have a material impact on the Consolidated Financial Statements. In March 2017, the FASB issued changes to the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires registrants to present the service cost component of net periodic benefit cost in the same income statement line item or items as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for asset capitalization. Registrants will present the other components of net periodic benefit cost separately from the service cost component; and, the line item or items used in the income statement to present the other components of net periodic benefit cost must be disclosed. These changes become effective for Arconic on January 1, 2018, including interim periods within those fiscal years. The new standard must be adopted retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement, and prospectively for the asset capitalization of the service cost component of net periodic benefit cost. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. For 2017, the Company expects to record non-service In May 2017, the FASB issued clarification to guidance on the modification accounting criteria for share-based payment awards. The new guidance requires registrants to apply modification accounting unless three specific criteria are met. The three criteria are 1) the fair value or the award is the same before and after the modification, 2) the vesting conditions are the same before and after the modification and 3) the classification as a debt or equity award is the same before and after the modification. These changes become effective for Arconic on January 1, 2018 and are to be applied prospectively to new awards granted after adoption. Management is currently evaluating the potential impact of these changes on the Consolidated Financial Statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | C. Accumulated Other Comprehensive Loss The following table details the activity of the four components that comprise Accumulated other comprehensive loss for both Arconic’s shareholders and noncontrolling interests: Arconic Noncontrolling Interests Second quarter ended June 30, Second quarter ended June 30, 2017 2016 2017 2016 Pension and other postretirement benefits (M) Balance at beginning of period $ (1,979 ) $ (3,579 ) $ — $ (55 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost 17 (5 ) — 1 Tax (expense) benefit (5 ) 3 — — Total Other comprehensive loss before reclassifications, net of tax 12 (2 ) — 1 Amortization of net actuarial loss and prior service cost (1) 56 104 — Tax (expense) benefit (2) (20 ) (37 ) — 1 Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 36 67 — 1 Total Other comprehensive income 48 65 — 2 Balance at end of period $ (1,931 ) $ (3,514 ) $ — $ (53 ) Foreign currency translation Balance at beginning of period $ (622 ) $ (2,109 ) $ (2 ) $ (673 ) Other comprehensive income (3) 99 45 — 32 Balance at end of period $ (523 ) $ (2,064 ) $ (2 ) $ (641 ) Available-for-sale Balance at beginning of period $ 99 $ (4 ) $ — $ — Other comprehensive (loss) income (4) (101 ) 3 — — Balance at end of period $ (2 ) $ (1 ) $ — $ — Cash flow hedges Balance at beginning of period $ 4 $ 517 $ — $ (5 ) Other comprehensive income (loss): Net change from periodic revaluations (4 ) (225 ) — 18 Tax benefit (expense) 1 66 — (5 ) Total Other comprehensive income (loss) before reclassifications, net of tax (3 ) (159 ) — 13 Net amount reclassified to earnings 1 7 5 Tax expense (2) — (1 ) — (2 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 1 6 — 3 Total Other comprehensive income (loss) (2 ) (153 ) — 16 Balance at end of period $ 2 $ 364 $ — $ 11 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were included in 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 and no amounts were reclassified to earnings. (4) Realized gains and losses were included in Other income, net 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 2 through 4. Arconic Noncontrolling Interests Six months ended Six months ended 2017 2016 2017 2016 Pension and other postretirement benefits (M) Balance at beginning of period $ (2,010 ) $ (3,611 ) $ — $ (56 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost 11 (64 ) — 1 Tax (expense) benefit (4 ) 26 — — Total Other comprehensive loss before reclassifications, net of tax 7 (38 ) — 1 Amortization of net actuarial loss and prior service cost (1) 111 208 — 2 Tax expense (2) (39 ) (73 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 72 135 — 2 Total Other comprehensive income 79 97 — 3 Balance at end of period $ (1,931 ) $ (3,514 ) $ — $ (53 ) Foreign currency translation Balance at beginning of period $ (689 ) $ (2,412 ) $ (2 ) $ (780 ) Other comprehensive income (3) 166 348 — 139 Balance at end of period $ (523 ) $ (2,064 ) $ (2 ) $ (641 ) Available-for-sale Balance at beginning of period $ 132 $ (5 ) $ — $ — Other comprehensive (loss) income (4) (134 ) 4 — — Balance at end of period $ (2 ) $ (1 ) $ — $ — Cash flow hedges Balance at beginning of period $ (1 ) $ 597 $ — $ (3 ) Other comprehensive income (loss): Net change from periodic revaluations 4 (342 ) — 15 Tax (expense) benefit (2 ) 103 — (4 ) Total Other comprehensive income (loss) before reclassifications, net of tax 2 (239 ) — 11 Net amount reclassified to earnings 1 5 5 Tax benefit (expense) (2) — 1 — (2 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 1 6 — 3 Total Other comprehensive income (loss) 3 (233 ) — 14 Balance at end of period $ 2 $ 364 $ — $ 11 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were included in 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 and no amounts were reclassified to earnings. (4) Realized gains and losses were included in Other income, net 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 2 through 4. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | D. Restructuring and Other Charges In the second quarter of 2017, Arconic recorded Restructuring and other charges of $26 ($17 after-tax), after-tax) after-tax) after-tax), after-tax) In the first six months of 2017, Arconic recorded Restructuring and other charges of $99 ($86 after-tax), after-tax) after-tax) after-tax), after-tax) after-tax) In the second quarter of 2016, Arconic recorded Restructuring and other charges of $14 ($9 after-tax), after-tax) after-tax) after-tax) In the first six months of 2016, Arconic recorded Restructuring and other charges of $30 ($20 after-tax), after-tax) after-tax) after-tax) Arconic does not include Restructuring and other charges in the results of its reportable segments. The pretax impact of allocating such charges to segment results would have been as follows: Second quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Engineered Products and Solutions $ 8 $ 9 $ 14 $ 17 Global Rolled Products 17 — 74 2 Transportation and Construction Solutions 6 8 9 8 Segment Total 31 17 97 27 Corporate (5 ) (3 ) 2 3 Total Restructuring and other charges $ 26 $ 14 $ 99 $ 30 As of June 30, 2017, approximately 65 of the 680 employees associated with 2017 restructuring programs, approximately 1,170 of the 1,770 employees (previously 1,800) associated with 2016 restructuring programs, and approximately 1,120 of the 1,220 employees (previously 1,240) associated with the 2015 restructuring programs were separated. The total number of employees associated with both the 2016 and 2015 restructuring programs was updated to reflect employees who, initially identified for separation, accepted other positions within Arconic, as well as natural attrition. Most of the remaining separations for the 2017 restructuring programs and all of the remaining separations for the 2016 and 2015 restructuring programs are expected to be completed by the end of 2017. In the 2017 second quarter and six-month Activity and reserve balances for restructuring charges were as follows: Layoff costs Other exit costs Total Reserve balances at December 31, 2015 $ 84 $ 9 $ 93 2016: Cash payments (73 ) (13 ) (86 ) Restructuring charges 70 27 97 Other* (31 ) (14 ) (45 ) Reserve balances at December 31, 2016 50 9 59 2017: Cash payments (26 ) (5 ) (31 ) Restructuring charges 43 — 43 Other* 10 (1 ) 9 Reserve balances at June 30, 2017 $ 77 $ 3 $ 80 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2017, Other for layoff costs includes the reclassification of a stock awards reversal of $13. In 2016, Other for other exit costs also included reclassifications of $8 in asset retirement, $2 in environmental obligations and $4 in legal obligations as these liabilities were included in Arconic’s separate reserves for asset retirement obligations, environmental remediation and legal costs. The remaining reserves are expected to be paid in cash during the remainder of 2017, except for approximately $10 to $12, which is expected to be paid within the next year for layoffs. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | E. Acquisitions and Divestitures In April 2016, Arconic completed the sale of the Remmele Medical business to LISI MEDICAL for $102 in cash ($99 net of transaction costs). This business, which was part of the RTI International Metals acquisition, manufactures precision-machined metal products for customers in the minimally invasive surgical device and implantable device markets. While owned by Arconic, the operating results and assets and liabilities of this business were included in the Engineered Products and Solutions segment. Remmele Medical generated third-party sales of approximately $20 from January 1, 2016 through the divestiture date, and, at the time of the divestiture, had approximately 330 employees. This transaction is no longer subject to post-closing adjustments. In March 2017, Arconic completed the sale of its Fusina, Italy rolling mill to Slim Aluminium. While owned by Arconic, the operating results and assets and liabilities of the Fusina, Italy rolling mill were included in the Global Rolled Products segment. As part of the transaction, Arconic injected $10 of cash into the business and provided a third-party guarantee with a fair value of $5 related to Slim Aluminium’s environmental remediation. The Company recorded a loss on the sale of $60, which was recorded in Restructuring and other charges (see Note D) on the Statement of Consolidated Operations. The rolling mill generated third-party sales of approximately $37 and $72 for the six-month |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | F. Inventories June 30, 2017 December 31, 2016 Finished goods $ 652 $ 625 Work-in-process 1,300 1,144 Purchased raw materials 383 408 Operating supplies 81 76 Total inventories $ 2,416 $ 2,253 At June 30, 2017 and December 31, 2016, the total amount of inventories valued on a LIFO basis was $1,057 and $947, respectively. If valued on an average-cost basis, total inventories would have been $401 and $371 higher at June 30, 2017 and December 31, 2016, respectively. |
Separation Transaction and Disc
Separation Transaction and Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Separation Transaction and Discontinued Operations | G. Separation Transaction and Discontinued Operations On November 1, 2016, Arconic completed the Separation Transaction. Alcoa Inc., which was re-named Arconic completed the Separation Transaction by distribution on November 1, 2016 of 80.1% of the outstanding common stock of Alcoa Corporation to the Company’s shareholders of record as of the close of business on October 20, 2016. Arconic retained 19.9% of the Alcoa Corporation common stock (36,311,767 shares). In February 2017, the Company sold 23,353,000 shares of Alcoa Corporation common stock at $38.03 per share, which resulted in cash proceeds of $888 which were recorded in Sale of investments within Investing Activities in the Statement of Consolidated Cash Flows and a gain of $351, which was recorded in Other income, net in the accompanying Statement of Consolidated Operations. In April and May 2017, the Company acquired a portion of its outstanding notes held by two investment banks (the “Investment Banks”) in exchange for cash and the Company’s remaining 12,958,767 Alcoa Corporation shares (valued at $35.91 per share) (the “Debt-for-Equity Exchange”) (See Note L). A gain of $167 on the Debt-for-Equity The Company had recorded the retained interest as a cost method investment in Investment in common stock of Alcoa Corporation in the accompanying Consolidated Balance Sheet. The fair value of Arconic’s retained interest in Alcoa Corporation was $0 and $1,020 at June 30, 2017 and December 31, 2016, respectively. The fair value was based on the closing stock price of Alcoa Corporation as of June 30, 2017, and December 31, 2016 multiplied by the number of shares of Alcoa Corporation common stock owned by the Company at those respective dates. As of May 4, 2017, the Company no longer maintains a retained interest in Alcoa Corporation common stock. In connection with the Separation Transaction, on October 31, 2016, Arconic and Alcoa Corporation entered into a Toll Processing and Services Agreement (the “Toll Processing Agreement”) pursuant to which Arconic provides can body stock from its Tennessee operations to Alcoa Corporation’s Warrick, Indiana rolling mill. Aluminum for the can body stock is supplied by Alcoa Corporation. The Toll Processing Agreement expires on December 31, 2018, unless sooner terminated by the parties. Tolling revenues for the second quarter and six months ended June 30, 2017 and accounts receivable at June 30, 2017 were not material to the consolidated results of operations and financial position, respectively. As part of the Separation Transaction, Arconic had recorded a receivable in the December 2016 Consolidated Balance Sheet for the net after-tax The results of operations of Alcoa Corporation are presented as discontinued operations in the Statement of Consolidated Operations as summarized below: Second quarter ended June 30, 2016 Six months ended June 30, 2016 Sales $ 2,061 $ 3,953 Cost of goods sold (exclusive of expenses below) 1,683 3,324 Selling, general administrative, and other expenses 47 102 Research and development expenses 7 18 Provision for depreciation, depletion and amortization 177 352 Restructuring and other charges 9 86 Interest expense 5 11 Other (income) expense, net (21 ) 26 Income from discontinued operations before income taxes 154 34 Provision for income taxes 29 8 Income from discontinued operations after income taxes 125 26 Less: Net income from discontinued operations attributable to noncontrolling interests 43 38 Net income (loss) from discontinued operations $ 82 $ (12 ) The cash flows related to Alcoa Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows for all periods presented. The following table presents depreciation, depletion and amortization, restructuring and other charges, and purchases of property, plant and equipment of the discontinued operations related to Alcoa Corporation: Six months ended June 30, 2016 Depreciation, depletion and amortization $ 352 Restructuring and other charges $ 86 Capital expenditures $ 172 |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | H. Contingencies and Commitments Contingencies Environmental Matters Arconic participates in environmental assessments and cleanups at more than 100 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 the nature and extent of contamination, changes in remedial requirements, and technological changes, among others. Arconic’s remediation reserve balance was $301 at June 30, 2017 and $308 at December 31, 2016 (of which $42 and $48, respectively, was classified as a current liability), and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. Payments related to remediation expenses applied against the reserve were $5 and $7 in the second quarter and six months ended June 30, 2017, respectively. This amount includes expenditures currently mandated, as well as those not required by any regulatory authority or third party. Included in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be approximately 1% or less of cost of goods sold. The following discussion provides details regarding the current status of certain significant reserves related to current or former Arconic sites. Massena West, NY— Tax Pursuant to the Tax Matters Agreement entered into between Arconic and Alcoa Corporation in connection with the Separation Transaction, Arconic shares responsibility with Alcoa Corporation, and Alcoa Corporation has agreed to partially indemnify Arconic, with respect to the following matter. As previously reported, in September 2010, following a corporate income tax audit covering the 2003 through 2005 tax years, an assessment was received as a result of Spain’s tax authorities disallowing certain interest deductions claimed by a Spanish consolidated tax group owned by the Company. An appeal of this assessment in Spain’s Central Tax Administrative Court by the Company was denied in October 2013. In December 2013, the Company filed an appeal of the assessment in Spain’s National Court. Additionally, following a corporate income tax audit of the same Spanish tax group for the 2006 through 2009 tax years, Spain’s tax authorities issued an assessment in July 2013 similarly disallowing certain interest deductions. In August 2013, Arconic filed an appeal of this second assessment in Spain’s Central Tax Administrative Court, which was denied in January 2015. Arconic filed another appeal of this second assessment in Spain’s National Court in March 2015. The combined assessments, remeasured for a tax rate change enacted in November 2014, total $283 (€248), including interest. On January 16, 2017, Spain’s National Court issued a decision in favor of the Company related to the assessment received in September 2010. The Spanish Tax Administration did not file an appeal within the applicable period. A further decision is expected on the application of this ruling to the overall assessment. Spain’s National Court has not yet rendered a decision related to the assessment received in July 2013. The Company believes it has meritorious arguments to support its tax position and intends to vigorously litigate the assessments through Spain’s court system. However, in the event the Company is unsuccessful, a portion of the assessments may be offset with existing net operating losses available to the Spanish consolidated tax group, which would be shared between Arconic and Alcoa Corporation as provided for in the Tax Matters Agreement related to the Separation Transaction. Additionally, it is possible that the Company may receive similar assessments for tax years subsequent to 2009. At this time, the Company is unable to reasonably predict an outcome for this matter. Reynobond PE Regulatory investigations are being conducted in connection with the fatal Grenfell Tower fire in London, UK on June 13, 2017. A French subsidiary of Arconic, 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 façade installer, who then completed and installed the system under the direction of the general contractor. Neither Arconic nor AAP SAS was involved in the design or installation of the system used at the Tower, nor did it have a role in any other aspect of the building’s refurbishment or original design. In July 2017, three purported class action complaints were filed against Arconic and certain officers, directors and/or other parties, alleging that, in light of the Grenfell Tower fire, certain Company filings with the Securities and Exchange Commission contained false and misleading disclosures and omissions in violation of the federal securities laws. While the Company believes that these cases are without merit and intends to challenge them vigorously, there can be no assurances regarding the ultimate resolution of these matters. Given the preliminary nature of these matters and the uncertainty of litigation, the Company 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. Other In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against Arconic, including those pertaining to environmental, product liability, safety and health, and tax matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot currently be determined because of the considerable uncertainties that exist. Therefore, it is possible that the Company’s liquidity or results of operations in a period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the results of operations, financial position or cash flows of the Company. Commitments Guarantees At June 30, 2017, Arconic had outstanding bank guarantees related to tax matters, outstanding debt, workers’ compensation, environmental obligations, energy contracts, and customs duties, among others. The total amount committed under these guarantees, which expire at various dates between 2017 and 2026, was $46 at June 30, 2017. Pursuant to the Separation and Distribution Agreement between Arconic and Alcoa Corporation, Arconic was required to provide maximum potential future payment guarantees for Alcoa Corporation issued on behalf of a third party of $314 and $354 at June 30, 2017 and December 31, 2016. These guarantees expire at various times between 2017 and 2024, and relate to project financing for Alcoa Corporation’s aluminum complex in Saudi Arabia. Furthermore, Arconic was required to provide guarantees up to an estimated present value amount of $1,600 related to two long-term supply agreements for energy for Alcoa Corporation facilities. In accordance with the Separation and Distribution Agreement, Arconic is only liable for these guaranteed amounts in the event of an Alcoa Corporation payment default. In December 2016, Arconic entered into a one-year Arconic was also required to provide guarantees of $50 related to two Alcoa Corporation energy supply contracts. These guarantees expired in March 2017. Additionally, Arconic was required to provide guarantees of $53 related to certain Alcoa Corporation environmental liabilities. Notification of a change in guarantor to Alcoa Corporation was made to the appropriate environmental agencies and as such, Arconic no longer provides these guarantees. Letters of Credit Arconic has outstanding letters of credit, primarily related to workers’ compensation and environmental obligations. The total amount committed under these letters of credit, which automatically renew or expire at various dates, primarily in 2017, was $133 at June 30, 2017. Pursuant to the Separation and Distribution Agreement, Arconic was required to retain letters of credit of $61 that had previously been provided related to both Arconic and Alcoa Corporation workers’ compensation claims which occurred prior to November 1, 2016. Alcoa Corporation’s workers’ compensation claims and letter of credit fees paid by Arconic are being billed to and are being fully reimbursed by Alcoa Corporation. Additionally, Arconic was required to provide letters of credit totaling $103 for certain Alcoa Corporation equipment leases and energy contracts. The entire $103 of outstanding letters of credit were cancelled in 2017 when Alcoa Corporation issued its own letters of credit to cover these obligations. Surety Bonds Arconic has outstanding surety bonds, primarily related to tax matters, contract performance, workers’ compensation, environmental-related matters, and customs duties. The total amount committed under these surety bonds, which expire at various dates, primarily in 2017, was $127 at June 30, 2017. Pursuant to the Separation and Distribution Agreement, Arconic was required to provide surety bonds related to Alcoa Corporation workers’ compensation claims which occurred prior to November 1, 2016 and, as a result, Arconic has $25 in outstanding surety bonds relating to these liabilities. Alcoa Corporation workers’ compensation claims and surety bond fees paid by Arconic are being billed to and are being fully reimbursed by Alcoa Corporation. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | I. Segment Information Arconic is a producer of multi-material products including sheet, plate, precision castings, forgings, rolled rings, extrusions, wheels and fasteners. Arconic’s products are used worldwide in transportation (including aerospace, automotive, truck, trailer, rail, and shipping), packaging, building and construction, oil and gas, defense, and industrial applications. Arconic’s segments are organized by product on a worldwide basis. In the first quarter of 2017, the Company changed its primary measure of segment performance from After-tax add-back Items required to reconcile Combined segment adjusted EBITDA to Net income attributable to Arconic include: the Provision for depreciation and amortization; Restructuring and other charges; the impact of LIFO inventory accounting; metal price lag (the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment - generally, when the price of metal increases, metal price lag is favorable, and when the price of metal decreases, metal price lag is unfavorable); corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities and corporate research and development expenses); other items, including intersegment profit eliminations; Other income, net; Interest expense; Income tax expense; and the results of discontinued operations. Prior period information has been recast to conform to current year presentation. The operating results of Arconic’s reportable segments were as follows: Engineered Global Rolled Transportation Combined Second quarter ended June 30, 2017 Sales: Third-party sales $ 1,484 $ 1,268 $ 501 $ 3,253 Intersegment sales — 37 — 37 Total sales $ 1,484 $ 1,305 $ 501 $ 3,290 Profit and loss: Depreciation and amortization 66 51 12 129 Adjusted EBITDA 310 164 82 556 Second quarter ended June 30, 2016 Sales: Third-party sales $ 1,465 $ 1,316 $ 467 $ 3,248 Intersegment sales — 29 — 29 Total sales $ 1,465 $ 1,345 $ 467 $ 3,277 Profit and loss: Depreciation and amortization 62 50 12 124 Adjusted EBITDA 329 163 76 568 Engineered Global Rolled Transportation Combined Six months ended June 30, 2017 Sales: Third-party sales $ 2,969 $ 2,517 $ 950 $ 6,436 Intersegment sales — 71 — 71 Total sales $ 2,969 $ 2,588 $ 950 $ 6,507 Profit and loss: Depreciation and amortization 130 101 24 255 Adjusted EBITDA 616 335 154 1,105 Six months ended June 30, 2016 Sales: Third-party sales $ 2,914 $ 2,500 $ 896 $ 6,310 Intersegment sales — 58 — 58 Total sales $ 2,914 $ 2,558 $ 896 $ 6,368 Profit and loss: Depreciation and amortization 127 100 23 250 Adjusted EBITDA 634 318 140 1,092 The following table reconciles Combined segment adjusted EBITDA to Net income attributable to Arconic: Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Combined segment adjusted EBITDA $ 556 $ 568 $ 1,105 $ 1,092 Unallocated amounts: Depreciation and amortization (137 ) (133 ) (270 ) (266 ) Restructuring and other charges (26 ) (14 ) (99 ) (30 ) Impact of LIFO (11 ) (13 ) (30 ) (25 ) Metal price lag 19 6 41 6 Corporate expense (91 ) (115 ) (182 ) (191 ) Other (29 ) (16 ) (39 ) (33 ) Operating income $ 281 $ 283 $ 526 $ 553 Other income, net 171 17 525 29 Interest expense (183 ) (124 ) (298 ) (245 ) Income from continuing operations before income taxes $ 269 $ 176 $ 753 $ 337 Income taxes (57 ) (123 ) (219 ) (174 ) Discontinued operations — 82 — (12 ) Net income attributable to Arconic $ 212 $ 135 $ 534 $ 151 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | J. Earnings Per Share Basic earnings per share (EPS) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The number of shares and per share amounts for all periods presented below have been updated to reflect the Reverse Stock Split (see Note A). The information used to compute basic and diluted EPS attributable to Arconic common shareholders was as follows (shares in millions): Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Income from continuing operations after income taxes $ 212 $ 53 $ 534 $ 163 Less: Preferred stock dividends declared (18 ) (17 ) (35 ) (35 ) Income from continuing operations available to Arconic common shareholders 194 36 499 128 Income (loss) from discontinued operations after income taxes and noncontrolling interests — 82 — (12 ) Net income available to Arconic common shareholders - basic 194 118 499 116 Add: Interest expense related to convertible notes 2 2 4 — Add: Dividends related to mandatory convertible preferred stock — — 34 — Net income available to Arconic common shareholders - diluted $ 196 $ 120 $ 537 $ 116 Average shares outstanding - basic 441 438 440 438 Effect of dilutive securities: Stock options 2 1 2 — Stock and performance awards 5 4 5 4 Mandatory convertible preferred stock — — 39 — Convertible notes 14 9 14 — Average shares outstanding - diluted 462 452 500 442 The following shares were excluded from the calculation of Average shares outstanding – diluted as their effect was anti-dilutive. Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Mandatory convertible preferred stock 39 26 — 26 Convertible notes — — — 9 Additionally, options to purchase 7 million shares of common stock at a weighted average exercise price of $28.85 and options to purchase 8 million shares of common stock at a weighted average exercise price of $38.18 were outstanding as of June 30, 2017 and 2016, respectively, but were not included in the computation of diluted EPS because their effect was anti-dilutive as the exercise price of the options was greater than the average market price of Arconic’s common stock. |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Receivables | K. Receivables Arconic has an arrangement with three financial institutions to sell certain customer receivables without recourse on a revolving basis. The sale of such receivables is completed using a bankruptcy remote special purpose entity, which is a consolidated subsidiary of Arconic. This arrangement provides for minimum funding of $200 up to a maximum of $400 for receivables sold. On March 30, 2012, Arconic initially sold $304 of customer receivables in exchange for $50 cash and $254 of deferred purchase program under the arrangement. Arconic has received additional net cash funding of $300 ($2,058 in draws and $1,758 in repayments) since the program’s inception, including net cash draws totaling $0 ($300 in draws and $300 in repayments) in the six months ended June 30, 2017. As of June 30, 2017, and December 31, 2016, the deferred purchase program receivable was $222 and $83, respectively, which was included in Other receivables on the accompanying Consolidated Balance Sheet. The deferred purchase program receivable is reduced as collections of the underlying receivables occur; however, as this is a revolving program, the sale of new receivables will result in an increase in the deferred purchase program receivable. The net change in the deferred purchase program receivable was reflected in the (Increase) in receivables line item on the accompanying Statement of Consolidated Cash Flows. This activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant, short-term interest rate risk. The gross amount of receivables sold and total cash collected under this program since its inception was $32,629 and $32,057, respectively. Arconic services the customer receivables for the financial institutions at market rates; therefore, no servicing asset or liability was recorded. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | L. Debt June 30, 2017 December 31, 2016 6.50% Bonds, due 2018 $ — $ 250 6.75% Notes, due 2018 — 750 5.72% Notes, due 2019 500 750 1.63% Convertible Notes, due 2019* 403 403 6.150% Notes, due 2020 1,000 1,000 5.40% Notes due 2021 1,250 1,250 5.87% Notes, due 2022 627 627 5.125% Notes, due 2024 1,250 1,250 5.90% Notes, due 2027 625 625 6.75% Bonds, due 2028 300 300 5.95% Notes, due 2037 625 625 Iowa Finance Authority Loan, due 2042 250 250 Other** (34 ) (32 ) Total debt 6,796 8,048 Less: amount due within one year — 4 Total long-term debt $ 6,796 $ 8,044 * Amount was assumed in conjunction with the July 2015 acquisition of RTI International Metals, Inc. ** Includes various financing arrangements related to subsidiaries, unamortized debt discounts related to outstanding notes and bonds listed in the table above, an equity option related to the convertible notes due in 2019, adjustments to the carrying value of long-term debt related to an interest rate swap contract accounted for as a fair value hedge, and unamortized debt issuance costs. Public Debt The Investment Banks purchased notes totaling $805 aggregate principal amount, including $150 aggregate principal amount of 6.50% Bonds, $405 aggregate principal amount of 6.75% Notes, and $250 aggregate principal amount of $5.72% Notes. The Company agreed to acquire the notes from the Investment Banks for $409 in cash plus its remaining investment in Alcoa Corporation common stock (12,958,767 shares valued at $35.91 per share) for total consideration of $874 including accrued and unpaid interest. The Company recorded a charge of $58 ($27 in cash) primarily for the premium for the early redemption of the notes, a benefit of $8 for the proceeds of a related interest rate swap agreement, and a charge of $2 for legal fees associated with the transaction in Interest expense, and recorded a gain of $167 in Other income, net on the Debt-for-Equity On June 19, 2017, the Company completed the early redemption of its remaining outstanding 6.50% Bonds, with aggregate principal amount of $100, and its remaining outstanding 6.75% Notes, with aggregate principal amount of $345, for $479 in cash including accrued and unpaid interest. As a result of the early redemption of the 6.50% Bonds and 6.75% Notes, the Company recorded a charge of $24 in Interest expense for the premium paid for the early redemption of these notes in excess of their carrying value. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | M. Pension and Other Postretirement Benefits The components of net periodic benefit cost were as follows: Second quarter ended Six months ended 2017 2016 2017 2016 Pension benefits Service cost $ 22 $ 41 $ 45 $ 81 Interest cost 58 122 116 244 Expected return on plan assets (83 ) (186 ) (166 ) (371 ) Recognized net actuarial loss 55 102 110 204 Amortization of prior service cost (benefits) 2 4 3 8 Settlements — 2 — 2 Special termination benefits — — — 1 Net periodic benefit cost* $ 54 $ 85 $ 108 $ 169 Discontinued operations — 40 — 73 Net amount recognized in Statement of Consolidated Operations $ 54 $ 45 $ 108 $ 96 Second quarter ended Six months ended 2017 2016 2017 2016 Other postretirement benefits Service cost $ 2 $ 4 $ 4 $ 7 Interest cost 7 19 15 37 Recognized net actuarial loss 1 5 2 11 Amortization of prior service cost (benefits) (2 ) (7 ) (4 ) (13 ) Special termination benefits — — — — Second quarter ended Six months ended June 30, June 30, 2017 2016 2017 2016 Pension benefits Net periodic benefit cost* $ 8 $ 21 $ 17 $ 42 Discontinued operations — 13 — 25 Net amount recognized in Statement of Consolidated Operations $ 8 $ 8 $ 17 $ 17 * Components of Net periodic benefit cost were included within Cost of goods sold, Selling, general administrative, and other expenses, Research and development expenses and Restructuring and other charges in the Statement of Consolidated Operations. In conjunction with the Separation Transaction, the Pension Benefit Guaranty Corporation approved management’s plan to separate the Alcoa Inc. pension plans between Arconic Inc. and Alcoa Corporation. The plan stipulates that Arconic will make cash contributions over a period of 30 months to its two largest pension plans. Payments are expected to be made in three increments of no less than $50 each ($150 total) over this 30-month |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | N. 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 carrying values and fair values of Arconic’s financial instruments were as follows: June 30, 2017 December 31, 2016 Carrying Fair Carrying Fair value value value value Cash and cash equivalents $ 1,785 1,785 $ 1,863 $ 1,863 Restricted cash 5 5 15 15 Derivatives - current asset 19 19 14 14 Noncurrent receivables 20 20 21 21 Derivatives - noncurrent asset 12 12 10 10 Available-for-sale 104 104 102 102 Investment in common stock of Alcoa Corporation — — 1,020 1,020 Short-term borrowings 48 48 36 36 Derivatives - current liability 14 14 5 5 Long-term debt due within one year — — 4 4 Derivatives - noncurrent liability 9 9 3 3 Contingent payment related to an acquisition 80 80 78 78 Long-term debt, less amount due within one year 6,796 7,249 8,044 8,519 The following methods were used to estimate the fair values of financial instruments: Cash and cash equivalents, Restricted cash, and Short-term borrowings. Derivatives. Noncurrent receivables. Available-for-sale Investment in common stock of Alcoa Corporation. Contingent payment related to an acquisition. Long-term debt due within one year and Long-term debt, less amount due within one year. non-public |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | O. 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, with the exception of the events disclosed below. In July 2017, three purported class action complaints were filed against Arconic and other defendants. See Note H for further information on these matters. |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive (Loss) by Component | The following table details the activity of the four components that comprise Accumulated other comprehensive loss for both Arconic’s shareholders and noncontrolling interests: Arconic Noncontrolling Interests Second quarter ended June 30, Second quarter ended June 30, 2017 2016 2017 2016 Pension and other postretirement benefits (M) Balance at beginning of period $ (1,979 ) $ (3,579 ) $ — $ (55 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost 17 (5 ) — 1 Tax (expense) benefit (5 ) 3 — — Total Other comprehensive loss before reclassifications, net of tax 12 (2 ) — 1 Amortization of net actuarial loss and prior service cost (1) 56 104 — Tax (expense) benefit (2) (20 ) (37 ) — 1 Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 36 67 — 1 Total Other comprehensive income 48 65 — 2 Balance at end of period $ (1,931 ) $ (3,514 ) $ — $ (53 ) Foreign currency translation Balance at beginning of period $ (622 ) $ (2,109 ) $ (2 ) $ (673 ) Other comprehensive income (3) 99 45 — 32 Balance at end of period $ (523 ) $ (2,064 ) $ (2 ) $ (641 ) Available-for-sale Balance at beginning of period $ 99 $ (4 ) $ — $ — Other comprehensive (loss) income (4) (101 ) 3 — — Balance at end of period $ (2 ) $ (1 ) $ — $ — Cash flow hedges Balance at beginning of period $ 4 $ 517 $ — $ (5 ) Other comprehensive income (loss): Net change from periodic revaluations (4 ) (225 ) — 18 Tax benefit (expense) 1 66 — (5 ) Total Other comprehensive income (loss) before reclassifications, net of tax (3 ) (159 ) — 13 Net amount reclassified to earnings 1 7 5 Tax expense (2) — (1 ) — (2 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 1 6 — 3 Total Other comprehensive income (loss) (2 ) (153 ) — 16 Balance at end of period $ 2 $ 364 $ — $ 11 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were included in 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 and no amounts were reclassified to earnings. (4) Realized gains and losses were included in Other income, net 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 2 through 4. Arconic Noncontrolling Interests Six months ended Six months ended 2017 2016 2017 2016 Pension and other postretirement benefits (M) Balance at beginning of period $ (2,010 ) $ (3,611 ) $ — $ (56 ) Other comprehensive income: Unrecognized net actuarial loss and prior service cost 11 (64 ) — 1 Tax (expense) benefit (4 ) 26 — — Total Other comprehensive loss before reclassifications, net of tax 7 (38 ) — 1 Amortization of net actuarial loss and prior service cost (1) 111 208 — 2 Tax expense (2) (39 ) (73 ) — — Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 72 135 — 2 Total Other comprehensive income 79 97 — 3 Balance at end of period $ (1,931 ) $ (3,514 ) $ — $ (53 ) Foreign currency translation Balance at beginning of period $ (689 ) $ (2,412 ) $ (2 ) $ (780 ) Other comprehensive income (3) 166 348 — 139 Balance at end of period $ (523 ) $ (2,064 ) $ (2 ) $ (641 ) Available-for-sale Balance at beginning of period $ 132 $ (5 ) $ — $ — Other comprehensive (loss) income (4) (134 ) 4 — — Balance at end of period $ (2 ) $ (1 ) $ — $ — Cash flow hedges Balance at beginning of period $ (1 ) $ 597 $ — $ (3 ) Other comprehensive income (loss): Net change from periodic revaluations 4 (342 ) — 15 Tax (expense) benefit (2 ) 103 — (4 ) Total Other comprehensive income (loss) before reclassifications, net of tax 2 (239 ) — 11 Net amount reclassified to earnings 1 5 5 Tax benefit (expense) (2) — 1 — (2 ) Total amount reclassified from Accumulated other comprehensive loss, net of tax (5) 1 6 — 3 Total Other comprehensive income (loss) 3 (233 ) — 14 Balance at end of period $ 2 $ 364 $ — $ 11 (1) These amounts were included in the computation of net periodic benefit cost for pension and other postretirement benefits (see Note M). (2) These amounts were included in 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 and no amounts were reclassified to earnings. (4) Realized gains and losses were included in Other income, net 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 2 through 4. |
Restructuring and Other Charg25
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges by Reportable Segments, Pretax | The pretax impact of allocating such charges to segment results would have been as follows: Second quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Engineered Products and Solutions $ 8 $ 9 $ 14 $ 17 Global Rolled Products 17 — 74 2 Transportation and Construction Solutions 6 8 9 8 Segment Total 31 17 97 27 Corporate (5 ) (3 ) 2 3 Total Restructuring and other charges $ 26 $ 14 $ 99 $ 30 |
Activity and Reserve Balances for Restructuring Charges | Activity and reserve balances for restructuring charges were as follows: Layoff costs Other exit costs Total Reserve balances at December 31, 2015 $ 84 $ 9 $ 93 2016: Cash payments (73 ) (13 ) (86 ) Restructuring charges 70 27 97 Other* (31 ) (14 ) (45 ) Reserve balances at December 31, 2016 50 9 59 2017: Cash payments (26 ) (5 ) (31 ) Restructuring charges 43 — 43 Other* 10 (1 ) 9 Reserve balances at June 30, 2017 $ 77 $ 3 $ 80 * Other includes reversals of previously recorded restructuring charges and the effects of foreign currency translation. In 2017, Other for layoff costs includes the reclassification of a stock awards reversal of $13. In 2016, Other for other exit costs also included reclassifications of $8 in asset retirement, $2 in environmental obligations and $4 in legal obligations as these liabilities were included in Arconic’s separate reserves for asset retirement obligations, environmental remediation and legal costs. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | June 30, 2017 December 31, 2016 Finished goods $ 652 $ 625 Work-in-process 1,300 1,144 Purchased raw materials 383 408 Operating supplies 81 76 Total inventories $ 2,416 $ 2,253 |
Separation Transaction and Di27
Separation Transaction and Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Alcoa Corporation [Member] | |
Summary of Discontinued Operations in Financial Statements | The results of operations of Alcoa Corporation are presented as discontinued operations in the Statement of Consolidated Operations as summarized below: Second quarter ended June 30, 2016 Six months ended June 30, 2016 Sales $ 2,061 $ 3,953 Cost of goods sold (exclusive of expenses below) 1,683 3,324 Selling, general administrative, and other expenses 47 102 Research and development expenses 7 18 Provision for depreciation, depletion and amortization 177 352 Restructuring and other charges 9 86 Interest expense 5 11 Other (income) expense, net (21 ) 26 Income from discontinued operations before income taxes 154 34 Provision for income taxes 29 8 Income from discontinued operations after income taxes 125 26 Less: Net income from discontinued operations attributable to noncontrolling interests 43 38 Net income (loss) from discontinued operations $ 82 $ (12 ) The cash flows related to Alcoa Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows for all periods presented. The following table presents depreciation, depletion and amortization, restructuring and other charges, and purchases of property, plant and equipment of the discontinued operations related to Alcoa Corporation: Six months ended June 30, 2016 Depreciation, depletion and amortization $ 352 Restructuring and other charges $ 86 Capital expenditures $ 172 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results of Arconic's Reportable Segments | The operating results of Arconic’s reportable segments were as follows: Engineered Global Rolled Transportation Combined Second quarter ended June 30, 2017 Sales: Third-party sales $ 1,484 $ 1,268 $ 501 $ 3,253 Intersegment sales — 37 — 37 Total sales $ 1,484 $ 1,305 $ 501 $ 3,290 Profit and loss: Depreciation and amortization 66 51 12 129 Adjusted EBITDA 310 164 82 556 Second quarter ended June 30, 2016 Sales: Third-party sales $ 1,465 $ 1,316 $ 467 $ 3,248 Intersegment sales — 29 — 29 Total sales $ 1,465 $ 1,345 $ 467 $ 3,277 Profit and loss: Depreciation and amortization 62 50 12 124 Adjusted EBITDA 329 163 76 568 Engineered Global Rolled Transportation Combined Six months ended June 30, 2017 Sales: Third-party sales $ 2,969 $ 2,517 $ 950 $ 6,436 Intersegment sales — 71 — 71 Total sales $ 2,969 $ 2,588 $ 950 $ 6,507 Profit and loss: Depreciation and amortization 130 101 24 255 Adjusted EBITDA 616 335 154 1,105 Six months ended June 30, 2016 Sales: Third-party sales $ 2,914 $ 2,500 $ 896 $ 6,310 Intersegment sales — 58 — 58 Total sales $ 2,914 $ 2,558 $ 896 $ 6,368 Profit and loss: Depreciation and amortization 127 100 23 250 Adjusted EBITDA 634 318 140 1,092 |
Schedule of Combined Segment Adjusted EBITDA to Net Income Attributable to Arconic | The following table reconciles Combined segment adjusted EBITDA to Net income attributable to Arconic: Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Combined segment adjusted EBITDA $ 556 $ 568 $ 1,105 $ 1,092 Unallocated amounts: Depreciation and amortization (137 ) (133 ) (270 ) (266 ) Restructuring and other charges (26 ) (14 ) (99 ) (30 ) Impact of LIFO (11 ) (13 ) (30 ) (25 ) Metal price lag 19 6 41 6 Corporate expense (91 ) (115 ) (182 ) (191 ) Other (29 ) (16 ) (39 ) (33 ) Operating income $ 281 $ 283 $ 526 $ 553 Other income, net 171 17 525 29 Interest expense (183 ) (124 ) (298 ) (245 ) Income from continuing operations before income taxes $ 269 $ 176 $ 753 $ 337 Income taxes (57 ) (123 ) (219 ) (174 ) Discontinued operations — 82 — (12 ) Net income attributable to Arconic $ 212 $ 135 $ 534 $ 151 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Information Used to Compute Basic and Diluted EPS | The information used to compute basic and diluted EPS attributable to Arconic common shareholders was as follows (shares in millions): Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Income from continuing operations after income taxes $ 212 $ 53 $ 534 $ 163 Less: Preferred stock dividends declared (18 ) (17 ) (35 ) (35 ) Income from continuing operations available to Arconic common shareholders 194 36 499 128 Income (loss) from discontinued operations after income taxes and noncontrolling interests — 82 — (12 ) Net income available to Arconic common shareholders - basic 194 118 499 116 Add: Interest expense related to convertible notes 2 2 4 — Add: Dividends related to mandatory convertible preferred stock — — 34 — Net income available to Arconic common shareholders - diluted $ 196 $ 120 $ 537 $ 116 Average shares outstanding - basic 441 438 440 438 Effect of dilutive securities: Stock options 2 1 2 — Stock and performance awards 5 4 5 4 Mandatory convertible preferred stock — — 39 — Convertible notes 14 9 14 — Average shares outstanding - diluted 462 452 500 442 |
Schedule of Anti Dilutive Securities Excluded From Computation of Average Shares Outstanding | The following shares were excluded from the calculation of Average shares outstanding – diluted as their effect was anti-dilutive. Second quarter ended Six months ended June 30, 2017 2016 2017 2016 Mandatory convertible preferred stock 39 26 — 26 Convertible notes — — — 9 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | June 30, 2017 December 31, 2016 6.50% Bonds, due 2018 $ — $ 250 6.75% Notes, due 2018 — 750 5.72% Notes, due 2019 500 750 1.63% Convertible Notes, due 2019* 403 403 6.150% Notes, due 2020 1,000 1,000 5.40% Notes due 2021 1,250 1,250 5.87% Notes, due 2022 627 627 5.125% Notes, due 2024 1,250 1,250 5.90% Notes, due 2027 625 625 6.75% Bonds, due 2028 300 300 5.95% Notes, due 2037 625 625 Iowa Finance Authority Loan, due 2042 250 250 Other** (34 ) (32 ) Total debt 6,796 8,048 Less: amount due within one year — 4 Total long-term debt $ 6,796 $ 8,044 * Amount was assumed in conjunction with the July 2015 acquisition of RTI International Metals, Inc. ** Includes various financing arrangements related to subsidiaries, unamortized debt discounts related to outstanding notes and bonds listed in the table above, an equity option related to the convertible notes due in 2019, adjustments to the carrying value of long-term debt related to an interest rate swap contract accounted for as a fair value hedge, and unamortized debt issuance costs. |
Pension and Other Postretirem31
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost were as follows: Second quarter ended Six months ended 2017 2016 2017 2016 Pension benefits Service cost $ 22 $ 41 $ 45 $ 81 Interest cost 58 122 116 244 Expected return on plan assets (83 ) (186 ) (166 ) (371 ) Recognized net actuarial loss 55 102 110 204 Amortization of prior service cost (benefits) 2 4 3 8 Settlements — 2 — 2 Special termination benefits — — — 1 Net periodic benefit cost* $ 54 $ 85 $ 108 $ 169 Discontinued operations — 40 — 73 Net amount recognized in Statement of Consolidated Operations $ 54 $ 45 $ 108 $ 96 Second quarter ended Six months ended 2017 2016 2017 2016 Other postretirement benefits Service cost $ 2 $ 4 $ 4 $ 7 Interest cost 7 19 15 37 Recognized net actuarial loss 1 5 2 11 Amortization of prior service cost (benefits) (2 ) (7 ) (4 ) (13 ) Special termination benefits — — — — Second quarter ended Six months ended June 30, June 30, 2017 2016 2017 2016 Pension benefits Net periodic benefit cost* $ 8 $ 21 $ 17 $ 42 Discontinued operations — 13 — 25 Net amount recognized in Statement of Consolidated Operations $ 8 $ 8 $ 17 $ 17 * Components of Net periodic benefit cost were included within Cost of goods sold, Selling, general administrative, and other expenses, Research and development expenses and Restructuring and other charges in the Statement of Consolidated Operations. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Instruments | The carrying values and fair values of Arconic’s financial instruments were as follows: June 30, 2017 December 31, 2016 Carrying Fair Carrying Fair value value value value Cash and cash equivalents $ 1,785 1,785 $ 1,863 $ 1,863 Restricted cash 5 5 15 15 Derivatives - current asset 19 19 14 14 Noncurrent receivables 20 20 21 21 Derivatives - noncurrent asset 12 12 10 10 Available-for-sale 104 104 102 102 Investment in common stock of Alcoa Corporation — — 1,020 1,020 Short-term borrowings 48 48 36 36 Derivatives - current liability 14 14 5 5 Long-term debt due within one year — — 4 4 Derivatives - noncurrent liability 9 9 3 3 Contingent payment related to an acquisition 80 80 78 78 Long-term debt, less amount due within one year 6,796 7,249 8,044 8,519 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - Common Stock [Member] shares in Billions | Oct. 05, 2016shares | Oct. 04, 2016shares |
Basis Of Presentation [Line Items] | ||
Reverse stock split ratio | 0.33 | |
Common stock share outstanding | 0.4 | 1.3 |
Recently Adopted and Recently34
Recently Adopted and Recently Issued Accounting Guidance - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Non-service related net periodic pension cost | $ 150 | |
Net periodic postretirement benefit cost | 108 | $ 168 |
Postretirement Benefit Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net periodic postretirement benefit cost | $ 150 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension and other postretirement benefits | ||||
Total Other comprehensive income | $ 48 | $ 67 | $ 79 | $ 100 |
Foreign currency translation | ||||
Other comprehensive income | 99 | 77 | 166 | 487 |
Available-for-sale securities | ||||
Other comprehensive (loss) income | (101) | 3 | (134) | 4 |
Cash flow hedges | ||||
Total Other comprehensive income (loss) | (2) | (137) | 3 | (219) |
Arconic [Member] | ||||
Pension and other postretirement benefits | ||||
Balance at beginning of period | (1,979) | (3,579) | (2,010) | (3,611) |
Unrecognized net actuarial loss and prior service cost | 17 | (5) | 11 | (64) |
Tax (expense) benefit | (5) | 3 | (4) | 26 |
Total Other comprehensive loss before reclassifications, net of tax | 12 | (2) | 7 | (38) |
Amortization of net actuarial loss and prior service cost | 56 | 104 | 111 | 208 |
Tax (expense) benefit | (20) | (37) | (39) | (73) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 36 | 67 | 72 | 135 |
Total Other comprehensive income | 48 | 65 | 79 | 97 |
Balance at end of period | (1,931) | (3,514) | (1,931) | (3,514) |
Foreign currency translation | ||||
Balance at beginning of period | (622) | (2,109) | (689) | (2,412) |
Other comprehensive income | 99 | 45 | 166 | 348 |
Balance at end of period | (523) | (2,064) | (523) | (2,064) |
Available-for-sale securities | ||||
Balance at beginning of period | 99 | (4) | 132 | (5) |
Other comprehensive (loss) income | (101) | 3 | (134) | 4 |
Balance at end of period | (2) | (1) | (2) | (1) |
Cash flow hedges | ||||
Balance at beginning of period | 4 | 517 | (1) | 597 |
Net change from periodic revaluations | (4) | (225) | 4 | (342) |
Tax (expense) benefit | 1 | 66 | (2) | 103 |
Total Other comprehensive income (loss) before reclassifications, net of tax | (3) | (159) | 2 | (239) |
Net amount reclassified to earnings | 1 | 7 | 1 | 5 |
Tax benefit (expense) | (1) | 1 | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 6 | 1 | 6 |
Total Other comprehensive income (loss) | (2) | (153) | 3 | (233) |
Balance at end of period | 2 | 364 | 2 | 364 |
Noncontrolling Interests [Member] | ||||
Pension and other postretirement benefits | ||||
Balance at beginning of period | (55) | (56) | ||
Unrecognized net actuarial loss and prior service cost | 1 | 1 | ||
Total Other comprehensive loss before reclassifications, net of tax | 1 | 1 | ||
Amortization of net actuarial loss and prior service cost | 2 | |||
Tax (expense) benefit | 1 | |||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 1 | 2 | ||
Total Other comprehensive income | 2 | 3 | ||
Balance at end of period | (53) | (53) | ||
Foreign currency translation | ||||
Balance at beginning of period | (2) | (673) | (2) | (780) |
Other comprehensive income | 32 | 139 | ||
Balance at end of period | $ (2) | (641) | $ (2) | (641) |
Cash flow hedges | ||||
Balance at beginning of period | (5) | (3) | ||
Net change from periodic revaluations | 18 | 15 | ||
Tax (expense) benefit | (5) | (4) | ||
Total Other comprehensive income (loss) before reclassifications, net of tax | 13 | 11 | ||
Net amount reclassified to earnings | 5 | 5 | ||
Tax benefit (expense) | (2) | (2) | ||
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 3 | 3 | ||
Total Other comprehensive income (loss) | 16 | 14 | ||
Balance at end of period | $ 11 | $ 11 |
Restructuring and Other Charg36
Restructuring and Other Charges - Additional Information (Detail) | Jun. 30, 2017Employees | Jun. 30, 2017USD ($)EmployeesPositions | Jun. 30, 2016USD ($)Positions | Jun. 30, 2017USD ($)EmployeesPositions | Jun. 30, 2016USD ($)Positions | Dec. 31, 2016USD ($)Employees |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | $ 26,000,000 | $ 14,000,000 | $ 99,000,000 | $ 30,000,000 | ||
Restructuring and other charges after tax and noncontrolling interest | $ 17,000,000 | $ 9,000,000 | $ 86,000,000 | $ 20,000,000 | ||
Number of employees associated with layoff costs | Positions | 352 | 540 | 680 | 1,070 | ||
Reversal of forfeited executive stock compensation | $ 13,000,000 | $ 13,000,000 | ||||
Severance charges | 7,000,000 | 7,000,000 | ||||
Cash payments made against the layoff reserves | 31,000,000 | $ 86,000,000 | ||||
Minimum amount of cash payments expected to be paid beyond the end of the current annual period | 10,000,000 | |||||
Maximum amount of cash payments expected to be paid beyond the end of the current annual period | 12,000,000 | |||||
Corporate [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | $ (5,000,000) | $ (3,000,000) | $ 2,000,000 | $ 3,000,000 | ||
Number of employees associated with layoff costs | Positions | 20 | 62 | ||||
Engineered Products and Solutions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with layoff costs | Positions | 129 | 300 | 243 | 800 | ||
Global Rolled Products [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with layoff costs | Positions | 110 | 242 | 30 | |||
Transportation and Construction Solutions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with layoff costs | Positions | 93 | 240 | 133 | 240 | ||
Fusina Italy [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | $ 60,000,000 | |||||
Restructuring and other charges after tax and noncontrolling interest | 60,000,000 | |||||
Restructuring Programs Layoffs 2015 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | $ 29,000,000 | $ 13,000,000 | 48,000,000 | $ 30,000,000 | ||
Restructuring and other charges after tax and noncontrolling interest | $ 19,000,000 | 8,000,000 | $ 32,000,000 | 19,000,000 | ||
Number of employees associated with layoff costs | Employees | 1,220 | 1,240 | ||||
Approximate number of employees already laid off | Employees | 1,120 | 1,120 | 1,120 | |||
Cash payments made against the layoff reserves | $ 1,000,000 | $ 4,000,000 | ||||
Other Miscellaneous Items [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | 4,000,000 | 7,000,000 | 1,000,000 | 7,000,000 | ||
Restructuring and other charges after tax and noncontrolling interest | 3,000,000 | 4,000,000 | 0 | 4,000,000 | ||
Other Adjustments [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | 1,000,000 | 6,000,000 | 2,000,000 | 7,000,000 | ||
Restructuring and other charges after tax and noncontrolling interest | $ 1,000,000 | $ 3,000,000 | $ 2,000,000 | $ 3,000,000 | ||
Restructuring Programs Layoffs 2017 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with layoff costs | Employees | 680 | |||||
Approximate number of employees already laid off | Employees | 65 | 65 | 65 | |||
Cash payments made against the layoff reserves | $ 1,000,000 | $ 2,000,000 | ||||
Restructuring Programs Layoffs 2016 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of employees associated with layoff costs | Employees | 1,770 | 1,800 | ||||
Approximate number of employees already laid off | Employees | 1,170 | 1,170 | 1,170 | |||
Cash payments made against the layoff reserves | $ 6,000,000 | $ 20,000,000 | ||||
Reversal of Forfeited Executive Stock Compensation [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other charges | 6,000,000 | 6,000,000 | ||||
Restructuring and other charges after tax and noncontrolling interest | $ 4,000,000 | $ 4,000,000 |
Restructuring and Other Charg37
Restructuring and Other Charges - Schedule of Restructuring and Other Charges by Reportable Segments, Pretax (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 26 | $ 14 | $ 99 | $ 30 |
Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 31 | 17 | 97 | 27 |
Corporate [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | (5) | (3) | 2 | 3 |
Engineered Products and Solutions [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 8 | 9 | 14 | 17 |
Global Rolled Products [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 17 | 74 | 2 | |
Transportation and Construction Solutions [Member] | Operating Segments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 6 | $ 8 | $ 9 | $ 8 |
Restructuring and Other Charg38
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | $ 59 | $ 93 |
Cash payments | (31) | (86) |
Restructuring charges | 43 | 97 |
Other | 9 | (45) |
Restructuring reserve ending balance | 80 | 59 |
Layoff Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 50 | 84 |
Cash payments | (26) | (73) |
Restructuring charges | 43 | 70 |
Other | 10 | (31) |
Restructuring reserve ending balance | 77 | 50 |
Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve beginning balance | 9 | 9 |
Cash payments | (5) | (13) |
Restructuring charges | 27 | |
Other | (1) | (14) |
Restructuring reserve ending balance | $ 3 | $ 9 |
Restructuring and Other Charg39
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 26 | $ 14 | $ 99 | $ 30 | |
Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset retirement obligations | $ 8 | ||||
Environmental Remediation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | 2 | ||||
Legal Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 4 | ||||
Stock awards reversal [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 13 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Mar. 31, 2017USD ($) | Apr. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Apr. 30, 2016USD ($)Employees | Jun. 30, 2017USD ($)Employees | Jun. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |||||||
Third-party sale generated in last annual period prior to divestiture | $ 3,261 | $ 3,234 | $ 6,453 | $ 6,289 | |||
LISI MEDICAL [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash received on sale of operations | $ 102 | ||||||
Sale of Remmele Medical business, net of transaction costs | $ 99 | ||||||
Slim Aluminium [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Third-party sale generated in last annual period prior to divestiture | $ 37 | $ 72 | |||||
Number of employees | Employees | 312 | ||||||
Cash expense related to sale of rolling mill | $ 10 | ||||||
Third party guarantee with a fair value related to environmental remediation | $ 5 | ||||||
Slim Aluminium [Member] | Restructuring and Other Charges [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loss on sale of rolling mill | $ 60 | ||||||
RTI [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Third-party sale generated in last annual period prior to divestiture | $ 20 | ||||||
Number of employees | Employees | 330 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 652 | $ 625 |
Work-in-process | 1,300 | 1,144 |
Purchased raw materials | 383 | 408 |
Operating supplies | 81 | 76 |
Total inventories | $ 2,416 | $ 2,253 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventories valued on a LIFO basis | $ 1,057 | $ 947 |
Total inventories valued on an average-cost basis | $ 401 | $ 371 |
Separation Transaction and Di43
Separation Transaction and Discontinued Operations - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Nov. 01, 2016 | May 31, 2017 | Apr. 30, 2017 | Feb. 28, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Common stock sold | 23,353,000 | 12,958,767 | ||||||
Common stock sold per share | $ 38.03 | $ 35.91 | $ 35.91 | |||||
Cash proceeds sale of common stock | $ 888 | |||||||
Pre-tax gain on sale of common stock | $ 351 | $ 167 | ||||||
Investment in common stock of Alcoa Corporation | $ 0 | 0 | $ 1,020 | |||||
Investment Banks [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Common stock sold | 12,958,767 | 12,958,767 | ||||||
Common stock sold per share | $ 35.91 | $ 35.91 | ||||||
Pre-tax gain on sale of common stock | $ 167 | $ 167 | ||||||
Yadkin [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of assets | $ 5 | $ 238 | $ 243 | |||||
Alcoa Corporation [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Common stock outstanding percentage | 80.10% | |||||||
Number of common stock retained | 36,311,767 | |||||||
Percentage of common stock retained | 19.90% |
Separation Transaction and Di44
Separation Transaction and Discontinued Operations - Summary of Discontinued Operations in Statement of Consolidated Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations after income taxes | $ 125 | $ 26 |
Less: Net income from discontinued operations attributable to noncontrolling interests | 43 | 38 |
Net income (loss) from discontinued operations | 82 | (12) |
Alcoa Corporation [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | 2,061 | 3,953 |
Cost of goods sold (exclusive of expenses below) | 1,683 | 3,324 |
Selling, general administrative, and other expenses | 47 | 102 |
Research and development expenses | 7 | 18 |
Provision for depreciation, depletion and amortization | 177 | 352 |
Restructuring and other charges | 9 | 86 |
Interest expense | 5 | 11 |
Other (income) expense, net | (21) | 26 |
Income from discontinued operations before income taxes | 154 | 34 |
Provision for income taxes | 29 | 8 |
Income from discontinued operations after income taxes | 125 | 26 |
Less: Net income from discontinued operations attributable to noncontrolling interests | 43 | 38 |
Net income (loss) from discontinued operations | $ 82 | $ (12) |
Separation Transaction and Di45
Separation Transaction and Discontinued Operations - Summary of Discontinued Operations in Statement of Consolidated Cash Flows (Detail) - Alcoa Corporation [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation, depletion and amortization | $ 352 |
Restructuring and other charges | 86 |
Capital expenditures | $ 172 |
Contingencies and Commitments -
Contingencies and Commitments - Additional Information - 1 (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Number of cleanup locations | More than 100 | ||
Remediation reserve balance | $ 301 | $ 301 | $ 308 |
Remediation reserve balance, classified as a current liability | 42 | 42 | 48 |
Payments related to remediation expenses applied against the reserve | 5 | $ 7 | |
Actual remediation fieldwork period | 4 years | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Majority of the project funding period | 2,021 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Majority of the project funding period | 2,017 | ||
Massena West, NY [Member] | |||
Loss Contingencies [Line Items] | |||
Remediation reserve balance | $ 224 | $ 224 | $ 228 |
Recurring Costs of Managing Hazardous Substances and Environmental Programs [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of cost of goods sold | 1.00% |
Contingencies and Commitments47
Contingencies and Commitments - Additional Information - 2 (Detail) € in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Total combined assessments | $ 283 | € 248 | ||
Guarantees of third party related to project financing | 46 | |||
Letters of credit, total amount committed | $ 133 | |||
Letters of credit, expiration date | 2,017 | |||
Total amount committed under outstanding surety bonds | $ 127 | |||
Surety bonds, expiration date | 2,017 | |||
Other Noncurrent Liabilities and Deferred Credits [Member] | ||||
Loss Contingencies [Line Items] | ||||
Combined fair value of guarantees | $ 36 | $ 35 | ||
Separation Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees of third party related to project financing | 314 | 354 | ||
Total amount committed under outstanding surety bonds | 25 | |||
Supply Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees of third party related to project financing | 1,600 | |||
Purchase Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees of third party related to project financing | $ 245 | |||
Alcoa Corporation Energy Supply Contracts Guarantee [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees of third party related to project financing | $ 50 | |||
Alcoa Corporation Environmental Liabilities Guarantee [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees of third party related to project financing | 53 | |||
Alcoa Corporation Workers Compensation Claims [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, total amount committed | 61 | |||
Alcoa Corporation Equipment Leases And Energy Contracts [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, total amount committed | $ 103 | |||
Minimum [Member] | Separation Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees, expiration date | 2,017 | |||
Minimum [Member] | Outstanding bank guarantees [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees, expiration date | 2,017 | |||
Maximum [Member] | Separation Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees, expiration date | 2,024 | |||
Maximum [Member] | Outstanding bank guarantees [Member] | ||||
Loss Contingencies [Line Items] | ||||
Guarantees, expiration date | 2,026 |
Segment Information - Schedule
Segment Information - Schedule of Operating Results of Arconic's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total sales | $ 3,261 | $ 3,234 | $ 6,453 | $ 6,289 |
Depreciation and amortization | 129 | 124 | 255 | 250 |
Adjusted EBITDA | 556 | 568 | 1,105 | 1,092 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 3,290 | 3,277 | 6,507 | 6,368 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 37 | 29 | 71 | 58 |
Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 3,253 | 3,248 | 6,436 | 6,310 |
Engineered Products and Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 66 | 62 | 130 | 127 |
Adjusted EBITDA | 310 | 329 | 616 | 634 |
Engineered Products and Solutions [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,484 | 1,465 | 2,969 | 2,914 |
Engineered Products and Solutions [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 1,484 | 1,465 | 2,969 | 2,914 |
Global Rolled Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 51 | 50 | 101 | 100 |
Adjusted EBITDA | 164 | 163 | 335 | 318 |
Global Rolled Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 1,305 | 1,345 | 2,588 | 2,558 |
Global Rolled Products [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment sales | 37 | 29 | 71 | 58 |
Global Rolled Products [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | 1,268 | 1,316 | 2,517 | 2,500 |
Transportation and Construction Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 12 | 12 | 24 | 23 |
Adjusted EBITDA | 82 | 76 | 154 | 140 |
Transportation and Construction Solutions [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total sales | 501 | 467 | 950 | 896 |
Transportation and Construction Solutions [Member] | Third-Party Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Third-party sales | $ 501 | $ 467 | $ 950 | $ 896 |
Segment Information - Schedul49
Segment Information - Schedule of Combined Segment Adjusted EBITDA to Net Income Attributable to Arconic (Detail) - USD ($) $ in Millions | Jun. 19, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Segment Reporting Information [Line Items] | |||||
Combined segment adjusted EBITDA | $ 556 | $ 568 | $ 1,105 | $ 1,092 | |
Depreciation and amortization | (137) | (133) | (270) | (266) | |
Restructuring and other charges | (26) | (14) | (99) | (30) | |
Operating income | 281 | 283 | 526 | 553 | |
Other income, net | 171 | 17 | 525 | 29 | |
Interest expense | $ (24) | (183) | (124) | (298) | (245) |
Income from continuing operations before income taxes | 269 | 176 | 753 | 337 | |
Income taxes | (57) | (123) | (219) | (174) | |
Discontinued operations | 82 | (12) | |||
Net income attributable to Arconic | 212 | 135 | 534 | 151 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | (137) | (133) | (270) | (266) | |
Restructuring and other charges | (26) | (14) | (99) | (30) | |
Impact of LIFO | (11) | (13) | (30) | (25) | |
Metal price lag | 19 | 6 | 41 | 6 | |
Corporate expense | (91) | (115) | (182) | (191) | |
Other | (29) | (16) | (39) | (33) | |
Operating income | 281 | 283 | 526 | 553 | |
Other income, net | 171 | 17 | 525 | 29 | |
Interest expense | (183) | (124) | (298) | (245) | |
Income from continuing operations before income taxes | 269 | 176 | 753 | 337 | |
Income taxes | $ (57) | (123) | $ (219) | (174) | |
Discontinued operations | $ 82 | $ (12) |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Information Used to Compute Basic and Diluted EPS (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations after income taxes | $ 212 | $ 53 | $ 534 | $ 163 |
Less: Preferred stock dividends declared | (18) | (17) | (35) | (35) |
Income from continuing operations available to Arconic common shareholders | 194 | 36 | 499 | 128 |
Income (loss) from discontinued operations after income taxes and noncontrolling interests | 82 | (12) | ||
Net income available to Arconic common shareholders - basic | 194 | 118 | 499 | 117 |
Add: Interest expense related to convertible notes | 2 | 2 | 4 | |
Add: Dividends related to mandatory convertible preferred stock | 34 | |||
Net income available to Arconic common shareholders - diluted | $ 196 | $ 120 | $ 537 | $ 116 |
Average shares outstanding - basic | 441 | 438 | 440 | 438 |
Stock options | 2 | 1 | 2 | |
Stock and performance awards | 5 | 4 | 5 | 4 |
Mandatory convertible preferred stock | 39 | |||
Convertible notes | 14 | 9 | 14 | |
Average shares outstanding - diluted | 462 | 452 | 500 | 442 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Anti Dilutive Securities Excluded From Computation of Average Shares Outstanding (Detail) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2016 | |
Mandatory Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 39 | 26 | 26 |
Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities | 9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Unit Purchase Agreements [Member] | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive securities | 7 | 8 |
Stock Options [Member] | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average exercise price of options | $ 28.85 | $ 38.18 |
Receivables - Additional Inform
Receivables - Additional Information (Detail) | Mar. 30, 2012USD ($) | Jun. 30, 2017USD ($)Agreement | Dec. 31, 2016USD ($) |
Schedule Of Financial Receivables [Line Items] | |||
Number of arrangement with different financial institution to sell customer receivables | Agreement | 3 | ||
Sale of customer receivables | $ 304,000,000 | ||
Cash received for receivables | 50,000,000 | ||
Deferred purchase program receivable | $ 254,000,000 | $ 222,000,000 | $ 83,000,000 |
Net cash funding received since inception | 300,000,000 | ||
Amount of cash draws under arrangement since inception | 2,058,000,000 | ||
Amount of cash repayments under arrangement since inception | 1,758,000,000 | ||
Net cash funding received during the period | 0 | ||
Amount of cash draws under arrangement during the period | 300,000,000 | ||
Amount of cash repayments under arrangement during the period | 300,000,000 | ||
Accounts receivables | 32,629,000,000 | ||
Cash collections of other receivables | 32,057,000,000 | ||
Minimum [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Funding of customer receivables sold | 200,000,000 | ||
Maximum [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Funding of customer receivables sold | $ 400,000,000 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,796 | $ 8,048 |
Less: amount due within one year | 4 | |
Long-term debt, excluding amount due within one year | 6,796 | 8,044 |
Long-term debt | 6,796 | 8,048 |
6.50% Bonds, Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 250 | |
Long-term debt | 250 | |
6.75% Notes, Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 750 | |
Long-term debt | 750 | |
5.72% Notes, Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | 750 |
Long-term debt | 500 | 750 |
1.63% Convertible Notes, Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 403 | 403 |
Long-term debt | 403 | 403 |
6.150% Notes, Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,000 | 1,000 |
Long-term debt | 1,000 | 1,000 |
5.40% Notes, Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,250 | 1,250 |
Long-term debt | 1,250 | 1,250 |
5.87% Notes, Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 627 | 627 |
Long-term debt | 627 | 627 |
5.125% Notes, Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,250 | 1,250 |
Long-term debt | 1,250 | 1,250 |
5.90% Notes, Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 625 | 625 |
Long-term debt | 625 | 625 |
6.75% Bonds, Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300 | 300 |
Long-term debt | 300 | 300 |
5.95% Notes Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 625 | 625 |
Long-term debt | 625 | 625 |
Iowa Finance Authority Loan, Due 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 250 | 250 |
Long-term debt | 250 | 250 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 34 | 32 |
Long-term debt | $ 34 | $ 32 |
Debt - Schedule of Long-Term 55
Debt - Schedule of Long-Term Debt (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2017 | |
6.50% Bonds, Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.50% |
Debt instrument, maturity date | 2,018 |
6.75% Notes, Due 2018 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.75% |
Debt instrument, maturity date | 2,018 |
5.72% Notes, Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.72% |
Debt instrument, maturity date | 2,019 |
1.63% Convertible Notes, Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 1.63% |
Debt instrument, maturity date | 2,019 |
6.150% Notes, Due 2020 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.15% |
Debt instrument, maturity date | 2,020 |
5.40% Notes, Due 2021 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.40% |
Debt instrument, maturity date | 2,021 |
5.87% Notes, Due 2022 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.87% |
Debt instrument, maturity date | 2,022 |
5.125% Notes, Due 2024 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.125% |
Debt instrument, maturity date | 2,024 |
5.90% Notes, Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.90% |
Debt instrument, maturity date | 2,027 |
6.75% Bonds, Due 2028 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 6.75% |
Debt instrument, maturity date | 2,028 |
5.95% Notes Due 2037 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 5.95% |
Debt instrument, maturity date | 2,037 |
Iowa Finance Authority Loan, Due 2042 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2,042 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 19, 2017 | May 31, 2017 | Apr. 30, 2017 | Feb. 28, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||||||||
Repayment of debt | $ 409 | |||||||
Common stock sold | 23,353,000 | 12,958,767 | ||||||
Common stock sold per share | $ 38.03 | $ 35.91 | $ 35.91 | |||||
Pre-tax gain on sale of common stock | $ 351 | $ 167 | ||||||
Consideration amount including accrued and unpaid interest | $ 874 | 874 | ||||||
Interest expense | 58 | |||||||
Interest paid | 27 | |||||||
Legal fees | 2 | |||||||
Interest expense for premium paid for early redemption of notes in excess of carrying value | $ 24 | $ 183 | $ 124 | $ 298 | $ 245 | |||
6.50% Bonds, Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.50% | 6.50% | ||||||
Debt instrument, maturity date | 2,018 | |||||||
6.50% Senior Notes due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 100 | |||||||
6.75% Notes, Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.75% | 6.75% | ||||||
Debt instrument, maturity date | 2,018 | |||||||
6.75% Senior Notes due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 345 | |||||||
Redemption amount | $ 479 | |||||||
5.72% Notes, Due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5.72% | 5.72% | ||||||
Debt instrument, maturity date | 2,019 | |||||||
Investment Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 805 | $ 805 | ||||||
Common stock sold | 12,958,767 | 12,958,767 | ||||||
Common stock sold per share | $ 35.91 | $ 35.91 | ||||||
Pre-tax gain on sale of common stock | $ 167 | $ 167 | ||||||
Investment Banks [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,000 | |||||||
Investment Banks [Member] | 6.50% Bonds, Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.50% | 6.50% | 6.50% | |||||
Debt instrument, maturity date | 2,018 | |||||||
Long-term debt | $ 150 | $ 150 | ||||||
Investment Banks [Member] | 6.75% Notes, Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 6.75% | 6.75% | 6.75% | |||||
Debt instrument, maturity date | 2,018 | |||||||
Long-term debt | $ 405 | $ 405 | ||||||
Investment Banks [Member] | 5.72% Notes, Due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, interest rate | 5.72% | 5.72% | 5.72% | |||||
Debt instrument, maturity date | 2,019 | |||||||
Long-term debt | $ 250 | $ 250 | ||||||
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from interest rate swap agreement | $ 8 |
Pension and Other Postretirem57
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 108 | $ 168 | ||
Net periodic benefit costs continuing and discontinued | ||||
Net periodic benefit cost | 108 | 168 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 22 | $ 41 | 45 | 81 |
Interest cost | 58 | 122 | 116 | 244 |
Expected return on plan assets | (83) | (186) | (166) | (371) |
Recognized net actuarial loss | 55 | 102 | 110 | 204 |
Amortization of prior service cost (benefits) | 2 | 4 | 3 | 8 |
Settlements | 2 | 2 | ||
Special termination benefits | 1 | |||
Net periodic benefit cost | 54 | 85 | 108 | 169 |
Net periodic benefit costs continuing and discontinued | ||||
Discontinued operations | 40 | 73 | ||
Net amount recognized in Statement of Consolidated Operations | 54 | 45 | 108 | 96 |
Net periodic benefit cost | 54 | 85 | 108 | 169 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 4 | 4 | 7 |
Interest cost | 7 | 19 | 15 | 37 |
Recognized net actuarial loss | 1 | 5 | 2 | 11 |
Amortization of prior service cost (benefits) | (2) | (7) | (4) | (13) |
Net periodic benefit cost | 8 | 21 | 17 | 42 |
Net periodic benefit costs continuing and discontinued | ||||
Discontinued operations | 13 | 25 | ||
Net amount recognized in Statement of Consolidated Operations | 8 | 8 | 17 | 17 |
Net periodic benefit cost | $ 8 | $ 21 | $ 17 | $ 42 |
Pension and Other Postretirem58
Pension and Other Postretirement Benefits - Additional Information (Detail) | Apr. 18, 2017USD ($) | Jun. 30, 2017USD ($)Installments |
Retirement Benefits [Abstract] | ||
Cash contribution term to pension plan | 30 months | |
Number of installments | Installments | 3,000,000 | |
Minimum required cash contribution to pension plan | $ 50,000,000 | |
Aggregate cash cash contribution to pension plan | $ 150,000,000 | |
First payment to pension plan | $ 50,000,000 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Carrying Values and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | $ 1,785 | $ 1,863 |
Restricted cash | 5 | 15 |
Derivatives - current asset | 19 | 14 |
Noncurrent receivables | 20 | 21 |
Derivatives - noncurrent asset | 12 | 10 |
Available-for-sale securities | 104 | 102 |
Investment in common stock of Alcoa Corporation | 1,020 | |
Short-term borrowings | 48 | 36 |
Derivatives - current liability | 14 | 5 |
Long-term debt due within one year | 4 | |
Derivatives - noncurrent liability | 9 | 3 |
Contingent payment related to an acquisition | 80 | 78 |
Long-term debt, less amount due within one year | 6,796 | 8,044 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 1,785 | 1,863 |
Restricted cash | 5 | 15 |
Derivatives - current asset | 19 | 14 |
Noncurrent receivables | 20 | 21 |
Derivatives - noncurrent asset | 12 | 10 |
Available-for-sale securities | 104 | 102 |
Investment in common stock of Alcoa Corporation | 1,020 | |
Short-term borrowings | 48 | 36 |
Derivatives - current liability | 14 | 5 |
Long-term debt due within one year | 4 | |
Derivatives - noncurrent liability | 9 | 3 |
Contingent payment related to an acquisition | 80 | 78 |
Long-term debt, less amount due within one year | $ 7,249 | $ 8,519 |