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Segment and Geographic Area Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Operating Results and Assets of Arconic's Reportable Segments
The operating results and assets of Arconic’s reportable segments were as follows:
 
Engineered Products and Forgings
 
Global Rolled Products
 
Total
2019
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
7,105

 
$
7,082

 
$
14,187

Intersegment sales
—

 
183

 
183

Total segment sales
$
7,105

 
$
7,265

 
$
14,370

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,390

 
$
625

 
$
2,015

Restructuring and other charges
509

 
81

 
590

Provision for depreciation and amortization
269

 
233

 
502

2018
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
6,798

 
$
7,223

 
$
14,021

Intersegment sales
—

 
205

 
205

Total segment sales
$
6,798

 
$
7,428

 
$
14,226

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,105

 
$
481

 
$
1,586

Restructuring and other charges
70

 
(157
)
 
(87
)
Provision for depreciation and amortization
289

 
253

 
542

2017
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
6,300

 
$
6,540

 
$
12,840

Intersegment sales
—

 
183

 
183

Total segment sales
$
6,300

 
$
6,723

 
$
13,023

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,119

 
$
570

 
$
1,689

Restructuring and other charges
30

 
83

 
113

Provision for depreciation and amortization
275

 
243

 
518

2019
 
 
 
 
 
Assets:
 
 
 
 
 
Capital expenditures
$
344

 
$
189

 
$
533

Goodwill
4,067

 
426

 
4,493

Total assets(1)
10,034

 
4,907

 
14,941

2018
 
 
 
 
 
Assets:
 
 
 
 
 
Capital expenditures
$
407

 
$
308

 
$
715

Goodwill
4,186

 
314

 
4,500

Total assets
10,494

 
4,845

 
15,339


(1) Segment assets at December 31, 2019 included operating lease right-of-use assets (see Notes A and O). Segment assets for the EP&F segment at December 31, 2019 were impacted by a long-lived asset impairment charge of $428 recorded in the second quarter of 2019 (see Note M).
Schedule of Reconciliation of Certain Segment Information to Consolidated Totals
The following tables reconcile certain segment information to consolidated totals:
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
Total segment sales
$
14,370

 
$
14,226

 
$
13,023

Elimination of intersegment sales
(183
)
 
(205
)
 
(183
)
Corporate
5

 
(7
)
 
120

Consolidated sales
$
14,192

 
$
14,014

 
$
12,960
Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Arconic
For the year ended December 31,
2019
 
2018
 
2017
Total segment operating profit
$
2,015

 
$
1,586

 
$
1,689

Unallocated amounts:
 
 
 
 
 
Impairment of goodwill
—

 
—

 
(719
)
Restructuring and other charges
(620
)
 
(9
)
 
(165
)
Corporate expense
(360
)
 
(252
)
 
(325
)
Consolidated operating income
$
1,035

 
$
1,325

 
$
480

Interest expense
(338
)
 
(378
)
 
(496
)
Other (expense) income, net
(122
)
 
(79
)
 
486

Consolidated income before income taxes
$
575

 
$
868

 
$
470


December 31,
2019
 
2018
Assets:
 
 
 
Total segment assets
$
14,941

 
$
15,339

Unallocated amounts:
 
 
 
Cash and cash equivalents
1,648

 
2,277

Deferred income taxes
608

 
573

Corporate fixed assets, net
326

 
334

Fair value of derivative contracts
6

 
37

Other
49

 
133

Consolidated assets
$
17,578

 
$
18,693
Schedule of Segment Reporting Information to Consolidated Assets
December 31,
2019
 
2018
Assets:
 
 
 
Total segment assets
$
14,941

 
$
15,339

Unallocated amounts:
 
 
 
Cash and cash equivalents
1,648

 
2,277

Deferred income taxes
608

 
573

Corporate fixed assets, net
326

 
334

Fair value of derivative contracts
6

 
37

Other
49

 
133

Consolidated assets
$
17,578

 
$
18,693
Sales by Major Product Grouping
Sales by major product grouping were as follows:
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
Innovative flat-rolled products
$
5,471

 
$
5,604

 
$
5,000

Engine products
3,452

 
3,220

 
2,965

Fastening systems
1,561

 
1,531

 
1,484

Engineered structures
1,123

 
1,081

 
1,023

Architectural aluminum systems
1,118

 
1,135

 
1,069

Forged wheels
969

 
966

 
828

Aluminum extrusions
493

 
484

 
471

Other
5

 
(7
)
 
120

 
$
14,192

 
$
14,014

 
$
12,960
Schedule of Geographic Information for Sales
Geographic information for sales was as follows (based upon the country where the point of sale occurred):
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
United States
$
9,548

 
$
9,137

 
$
8,167

France
864

 
936

 
965

United Kingdom
732

 
737

 
721

Hungary
719

 
823

 
739

China
630

 
632

 
615

Russia
511

 
553

 
500

Germany
322

 
302

 
309

Canada
313

 
285

 
261

Japan
190

 
170

 
141

Brazil
159

 
214

 
285

Other
204

 
225

 
257

 
$
14,192

 
$
14,014

 
$
12,960
Schedule of Geographic Information for Long-Lived Assets
Geographic information for long-lived assets was as follows (based upon the physical location of the assets):
December 31,
2019
 
2018
Long-lived assets:
 
 
 
United States
$
4,193

 
$
4,148

China
338

 
326

Hungary
302

 
257

Russia
233

 
253

United Kingdom
189

 
253

France
185

 
163

Germany
86

 
84

Canada
57

 
61

Mexico
57

 
45

Brazil
5

 
54

Other
69

 
60

 
$
5,714

 
$
5,704
Segment and Geographic Area Information Segment and Geographic Area Information
Arconic is a global leader in lightweight metals engineering and manufacturing. Arconic’s innovative, multi-material products, which include aluminum, titanium, and nickel, are used worldwide in aerospace, automotive, commercial transportation, building and construction, industrial applications, defense, and packaging. Arconic’s operations consist of two worldwide reportable segments: EP&F and GRP. Segment performance under Arconic’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is Segment operating profit. Arconic’s definition of Segment operating profit is Operating income excluding Special items. Special items include Restructuring and other charges and Impairment of goodwill. Segment operating profit may not be comparable to similarly titled measures of other companies. Differences between segment totals and consolidated Arconic are in Corporate.
In the third quarter of 2019, the Company realigned its operations by eliminating its TCS segment and transferring the Forged Wheels business to its EP&F segment and BCS to its GRP segment, consistent with how the Chief Executive Officer is assessing operating performance and allocating capital in conjunction with the planned Separation of Arconic (see Note U). The Latin America extrusions business, which was formerly part of the Company's TCS segment until its sale in April of 2018 (see Note S), was moved to Corporate. In the first quarter of 2019, management transferred its aluminum extrusions operations from its Engineered Structures business unit within the EP&F segment to the GRP segment, based on synergies with the GRP segment including similar customer base, technologies, and manufacturing capabilities. Prior period financial information has been recast to conform to current year presentation.
The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies (see Note A). Transactions among segments are established based on negotiation among the parties. Differences between segment totals and Arconic’s consolidated totals for line items not reconciled are in Corporate.
Engineered Products and Forgings. This segment produces products that are used primarily in the aerospace (commercial and defense), industrial, commercial transportation, and power generation end markets. Such products include fastening systems (aluminum, titanium, steel, and nickel superalloys) and seamless rolled rings (mostly nickel superalloys); investment castings (nickel superalloys, titanium, and aluminum), including airfoils; forged jet engine components (e.g., jet engine disks); extruded, machined and forged aircraft parts (titanium and aluminum); and forged aluminum commercial vehicle wheels, all of which are sold directly to customers and through distributors. Approximately 70% of the third-party sales in this segment are from the aerospace end market. A small part of this segment also produces various forged and machined metal products (titanium and aluminum) for various end markets. Seasonal decreases in sales are experienced for certain products in the third quarter of the year due to the European summer slowdown.
Global Rolled Products. This segment produces aluminum sheet and plate, aluminum extruded and machined parts, integrated aluminum structural systems, and architectural extrusions used in the automotive, aerospace, building and construction, industrial, packaging, and commercial transportation end markets. Products are sold directly to customers and through distributors. While the customer base for flat-rolled products is large, a significant amount of sales of sheet and plate are to a relatively small number of customers.
The operating results and assets of Arconic’s reportable segments were as follows:
 
Engineered Products and Forgings
 
Global Rolled Products
 
Total
2019
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
7,105

 
$
7,082

 
$
14,187

Intersegment sales
—

 
183

 
183

Total segment sales
$
7,105

 
$
7,265

 
$
14,370

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,390

 
$
625

 
$
2,015

Restructuring and other charges
509

 
81

 
590

Provision for depreciation and amortization
269

 
233

 
502

2018
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
6,798

 
$
7,223

 
$
14,021

Intersegment sales
—

 
205

 
205

Total segment sales
$
6,798

 
$
7,428

 
$
14,226

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,105

 
$
481

 
$
1,586

Restructuring and other charges
70

 
(157
)
 
(87
)
Provision for depreciation and amortization
289

 
253

 
542

2017
 
 
 
 
 
Sales:
 
 
 
 
 
Third-party sales
$
6,300

 
$
6,540

 
$
12,840

Intersegment sales
—

 
183

 
183

Total segment sales
$
6,300

 
$
6,723

 
$
13,023

Profit and loss:
 
 
 
 
 
Segment operating profit
$
1,119

 
$
570

 
$
1,689

Restructuring and other charges
30

 
83

 
113

Provision for depreciation and amortization
275

 
243

 
518

2019
 
 
 
 
 
Assets:
 
 
 
 
 
Capital expenditures
$
344

 
$
189

 
$
533

Goodwill
4,067

 
426

 
4,493

Total assets(1)
10,034

 
4,907

 
14,941

2018
 
 
 
 
 
Assets:
 
 
 
 
 
Capital expenditures
$
407

 
$
308

 
$
715

Goodwill
4,186

 
314

 
4,500

Total assets
10,494

 
4,845

 
15,339


(1) Segment assets at December 31, 2019 included operating lease right-of-use assets (see Notes A and O). Segment assets for the EP&F segment at December 31, 2019 were impacted by a long-lived asset impairment charge of $428 recorded in the second quarter of 2019 (see Note M).

The following tables reconcile certain segment information to consolidated totals:
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
Total segment sales
$
14,370

 
$
14,226

 
$
13,023

Elimination of intersegment sales
(183
)
 
(205
)
 
(183
)
Corporate
5

 
(7
)
 
120

Consolidated sales
$
14,192

 
$
14,014

 
$
12,960


For the year ended December 31,
2019
 
2018
 
2017
Total segment operating profit
$
2,015

 
$
1,586

 
$
1,689

Unallocated amounts:
 
 
 
 
 
Impairment of goodwill
—

 
—

 
(719
)
Restructuring and other charges
(620
)
 
(9
)
 
(165
)
Corporate expense
(360
)
 
(252
)
 
(325
)
Consolidated operating income
$
1,035

 
$
1,325

 
$
480

Interest expense
(338
)
 
(378
)
 
(496
)
Other (expense) income, net
(122
)
 
(79
)
 
486

Consolidated income before income taxes
$
575

 
$
868

 
$
470


December 31,
2019
 
2018
Assets:
 
 
 
Total segment assets
$
14,941

 
$
15,339

Unallocated amounts:
 
 
 
Cash and cash equivalents
1,648

 
2,277

Deferred income taxes
608

 
573

Corporate fixed assets, net
326

 
334

Fair value of derivative contracts
6

 
37

Other
49

 
133

Consolidated assets
$
17,578

 
$
18,693


Sales by major product grouping were as follows:
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
Innovative flat-rolled products
$
5,471

 
$
5,604

 
$
5,000

Engine products
3,452

 
3,220

 
2,965

Fastening systems
1,561

 
1,531

 
1,484

Engineered structures
1,123

 
1,081

 
1,023

Architectural aluminum systems
1,118

 
1,135

 
1,069

Forged wheels
969

 
966

 
828

Aluminum extrusions
493

 
484

 
471

Other
5

 
(7
)
 
120

 
$
14,192

 
$
14,014

 
$
12,960


Geographic information for sales was as follows (based upon the country where the point of sale occurred):
For the year ended December 31,
2019
 
2018
 
2017
Sales:
 
 
 
 
 
United States
$
9,548

 
$
9,137

 
$
8,167

France
864

 
936

 
965

United Kingdom
732

 
737

 
721

Hungary
719

 
823

 
739

China
630

 
632

 
615

Russia
511

 
553

 
500

Germany
322

 
302

 
309

Canada
313

 
285

 
261

Japan
190

 
170

 
141

Brazil
159

 
214

 
285

Other
204

 
225

 
257

 
$
14,192

 
$
14,014

 
$
12,960


Geographic information for long-lived assets was as follows (based upon the physical location of the assets):
December 31,
2019
 
2018
Long-lived assets:
 
 
 
United States
$
4,193

 
$
4,148

China
338

 
326

Hungary
302

 
257

Russia
233

 
253

United Kingdom
189

 
253

France
185

 
163

Germany
86

 
84

Canada
57

 
61

Mexico
57

 
45

Brazil
5

 
54

Other
69

 
60

 
$
5,714

 
$
5,704


The following table disaggregates revenue by major end market served. Differences between segment totals and consolidated Arconic are in Corporate. In 2018, Corporate included $38 of costs related to settlements of certain customer claims primarily related to product introductions.  
For the year ended December 31,
Engineered
Products and
Forgings
 
Global Rolled
Products
 
Total
Segment
2019
 
 
 
 
 
Aerospace
$
5,075

 
$
1,251

 
$
6,326

Transportation
1,289

 
2,418

 
3,707

Building and construction
—

 
1,300

 
1,300

Industrial and Other
741

 
2,113

 
2,854

Total end-market revenue
$
7,105

 
$
7,082

 
$
14,187

 
 
 
 
 
 
2018





Aerospace
$
4,722

 
$
1,116

 
$
5,838

Transportation
1,302

 
2,550

 
3,852

Building and construction
—

 
1,357

 
1,357

Industrial and Other
774

 
2,200

 
2,974

Total end-market revenue
$
6,798

 
$
7,223

 
$
14,021

 
 
 
 
 
 
2017
 
 
 
 
 
Aerospace
$
4,347

 
$
1,109

 
$
5,456

Transportation
1,098

 
2,072

 
3,170

Building and construction
—

 
1,269

 
1,269

Industrial and Other
855

 
2,090

 
2,945

Total end-market revenue
$
6,300

 
$
6,540

 
$
12,840