Segment and Related Information​

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment and Related Information​

Segment and Related Information

Arconic’s profit or loss measure for its reportable segments is Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization). The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus each of (i) Cost of goods sold, (ii) Selling, general administrative, and other expenses, and (iii) Research and development expenses, plus Stock-based compensation expense and Metal price lag. Arconic’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies’ reportable segments.

The operating results of Arconic’s reportable segments were as follows (differences between segment totals and the Company’s consolidated totals for line items not reconciled are in Corporate):

Third quarter ended September 30,	Rolled Products		Building and Construction Systems		Extrusions		Total
2021
Sales:
Third-party sales	$	1,559	$	257	$	74	$	1,890
Intersegment sales	9		—		1		10
Total sales	$	1,568	$	257	$	75	$	1,900
Segment Adjusted EBITDA	$	155	$	34	$	(7)	$	182
Provision for depreciation and amortization	$	48	$	4	$	6	$	58
2020
Sales:
Third-party sales	$	1,092	$	241	$	82	$	1,415
Intersegment sales	3		—		1		4
Total sales	$	1,095	$	241	$	83	$	1,419
Segment Adjusted EBITDA	$	138	$	40	$	(6)	$	172
Provision for depreciation and amortization	$	48	$	5	$	6	$	59

Nine months ended September 30,	Rolled Products		Building and Construction Systems		Extrusions		Total
2021
Sales:
Third-party sales	$	4,397	$	750	$	219	$	5,366
Intersegment sales	26		—		1		27
Total sales	$	4,423	$	750	$	220	$	5,393
Segment Adjusted EBITDA	$	493	$	97	$	(19)	$	571
Provision for depreciation and amortization	$	145	$	13	$	17	$	175
2020
Sales:
Third-party sales	$	3,194	$	727	$	296	$	4,217
Intersegment sales	14		—		1		15
Total sales	$	3,208	$	727	$	297	$	4,232
Segment Adjusted EBITDA	$	388	$	107	$	(12)	$	483
Provision for depreciation and amortization	$	147	$	14	$	18	$	179

The following table reconciles total Segment Adjusted EBITDA to consolidated net income (loss) attributable to Arconic Corporation:

	Third quarter ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Total Segment Adjusted EBITDA	$	182	$	172	$	571	$	483
Unallocated amounts:
Corporate expenses(1)	(7)		(6)		(26)		(15)
Stock-based compensation expense	(8)		(6)		(15)		(18)
Metal price lag(2)	(21)		(16)		(27)		(30)
Provision for depreciation and amortization	(61)		(63)		(186)		(191)
Restructuring and other charges(3) (E)	(14)		(3)		(612)		(61)
Other(4)	(3)		(14)		(19)		(42)
Operating income (loss)	68		64		(314)		126
Interest expense	(26)		(22)		(74)		(97)
Other expenses, net (F)	(15)		(27)		(52)		(69)
(Provision) Benefit for income taxes (H)	(11)		(10)		81		(5)
Net income attributable to noncontrolling interest	—		—		—		—
Consolidated net income (loss) attributable to Arconic Corporation	$	16	$	5	$	(359)	$	(45)

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(1)Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities. The amount presented for the 2020 nine-month period includes an allocation of ParentCo’s corporate expenses, including research and development expenses, for the portion of the period prior to the Separation Date (see Cost Allocations in Note A).

(2)Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions.

(3)Restructuring and other charges includes a charge for the settlement of certain employee retirement benefits of $5 and $573 in the 2021 third quarter and nine-month period, respectively, and $3 and $58 in the 2020 third quarter and nine-month period, respectively (see Note G).

(4)Other includes certain items that impact Cost of goods sold and Selling, general administrative, and other expenses on the Company’s Statement of Consolidated Operations that are not included in Segment Adjusted EBITDA.