Revenue from Contracts with Customers

The Company's contracts with customers are comprised of acknowledged purchase orders incorporating the Company’s standard terms and conditions, or for larger customers, terms under negotiated multi-year agreements. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. The Company produces fastening systems; seamless rolled rings; investment castings, including airfoils and forged jet engine components; extruded, machined and formed aircraft parts; aluminum sheet and plate; integrated aluminum structural systems; architectural extrusions; and forged aluminum commercial vehicle wheels. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). An invoice for payment is issued at time of shipment. The Company’s objective is to have net 30-day terms. Our business units set commercial terms on which Arconic sells products to its customers. These terms are influenced by industry custom, market conditions, product line (specialty versus commodity products), and other considerations.

The following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. In the second quarter and six months ended June 30, 2018, Corporate included $38 of costs related to settlements of certain customer claims primarily related to product introductions.



	Engineered Products and Solutions		Global Rolled Products		Transportation and Construction Solutions		Total Segment
Second quarter ended June 30, 2018
Aerospace	$	1,241	$	226	$	—	$	1,467
Transportation	119		612		253		984
Building and construction	—		60		297		357
Industrial and other	236		553		12		801
Total end-market revenue	$	1,596	$	1,451	$	562	$	3,609

Second quarter ended June 30, 2017
Aerospace	$	1,141	$	241	$	—	$	1,382
Transportation	97		475		200		772
Building and construction	—		51		283		334
Industrial and other	247		504		21		772
Total end-market revenue	$	1,485	$	1,271	$	504	$	3,260

Six months ended June 30, 2018
Aerospace	$	2,431	$	425	$	—	$	2,856
Transportation	216		1,210		496		1,922
Building and construction	—		108		582		690
Industrial and other	490		1,074		21		1,585
Total end-market revenue	$	3,137	$	2,817	$	1,099	$	7,053

Six months ended June 30, 2017
Aerospace	$	2,296	$	456	$	—	$	2,752
Transportation	190		968		373		1,531
Building and construction	—		100		545		645
Industrial and other	486		995		42		1,523
Total end-market revenue	$	2,972	$	2,519	$	960	$	6,451