Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive (Loss) Income

The following table details the activity of the three components that comprise Accumulated other comprehensive (loss) income for Arconic (such activity for Noncontrolling interest was immaterial for all periods presented):


	Third quarter ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Pension and other postretirement benefits (G)
Balance at beginning of period	$	(1,199)	$	(1,784)	$	(1,791)	$	(43)
Establishment of additional defined benefit plans	—		—		—		(1,752)
Separation-related adjustments (A)	—		—		—		(50)
Other comprehensive income:
Unrecognized net actuarial loss and prior service cost/benefit	34		4		178		(34)
Tax (expense) benefit	(8)		(1)		(41)		8
Total Other comprehensive income (loss) before reclassifications, net of tax	26		3		137		(26)
Amortization of net actuarial loss and prior service cost/benefit(1)	25		36		651		153
Tax expense(2)	(6)		(8)		(151)		(35)
Total amount reclassified from Accumulated other comprehensive loss, net of tax(5)	19		28		500		118
Total Other comprehensive income	45		31		637		92
Balance at end of period	$	(1,154)	$	(1,753)	$	(1,154)	$	(1,753)
Foreign currency translation
Balance at beginning of period	$	35	$	(53)	$	29	$	338
Separation-related adjustments (A)	—		—		—		(396)
Other comprehensive (loss) income:
Foreign currency translation(3)	(11)		37		(5)		20
Net amount reclassified to earnings from Accumulated other comprehensive income(3),(5)	—		—		—		22
Total Other comprehensive (loss) income	(11)		37		(5)		42
Balance at end of period	$	24	$	(16)	$	24	$	(16)
Cash flow hedges
Balance at beginning of period	$	(35)	$	(11)	$	1	$	—
Separation-related adjustments (A)	—		—		—		(4)
Other comprehensive (loss) income:
Net change from periodic revaluations	(66)		2		(160)		4
Tax benefit (expense)	15		(1)		37		(1)
Total Other comprehensive (loss) income before reclassifications, net of tax	(51)		1		(123)		3
Net amount reclassified to earnings(4)	49		14		96		3
Tax expense(2)	(11)		(3)		(22)		(1)
Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax(5)	38		11		74		2
Total Other comprehensive (loss) income	(13)		12		(49)		5
Balance at end of period	$	(48)	$	1	$	(48)	$	1
Accumulated other comprehensive loss	$	(1,178)	$	(1,768)	$	(1,178)	$	(1,768)

_____________________

(1)These amounts were included in the non-service component of net periodic benefit cost for pension and other postretirement benefits (see Note G). In all periods presented, the respective amounts include accelerated amortization

related to the settlement of certain employee retirement benefits. The accelerated amortization was $5 and $573 for the third quarter ended and nine months ended September 30, 2021, respectively, and $3 and $58 for the third quarter ended and nine months ended September 30, 2020, respectively (see Note G).

(2)These amounts were reported in Provision (Benefit) for income taxes on the accompanying Statement of Consolidated Operations.

(3)In all periods presented, there were no tax impacts related to rate changes. In the 2020 nine-month period, the net amount reclassified to earnings was reported in Restructuring and other charges on the accompanying Statement of Consolidated Operations related to the sale of certain foreign subsidiaries.

(4)These amounts relate to aluminum contracts, a portion of which were reported in each of Sales and Cost of goods sold on the accompanying Statement of Consolidated Operations.

(5)A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. These amounts were reflected on the accompanying Statement of Consolidated Operations in the line items indicated in footnotes 1 through 4.