Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

L. Segment Information – The operating results of Arconic’s reportable segments were as follows (differences between segment totals and consolidated totals are in Corporate):

	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions		Transportation and Construction Solutions		Total
Third quarter ended September 30, 2016
Sales:
Third-party sales	$	687		$	1,148		$	1,521		$	1,406	$	450	$	5,212
Intersegment sales		287			440			30			—		—		757
Total sales	$	974		$	1,588		$	1,551		$	1,406	$	450	$	5,969
Profit and loss:
Equity (loss) income	$	(9	)	$	3		$	(10	)	$	—	$	—	$	(16	)
Depreciation, depletion, and amortization		68			99			59			63		12		301
Income taxes		31			—			18			71		17		137
After-tax operating income (ATOI)		72			56			58			162		47		395
Third quarter ended September 30, 2015
Sales:
Third-party sales	$	912		$	1,249		$	1,527		$	1,397	$	475	$	5,560
Intersegment sales		391			479			29			—		—		899
Total sales	$	1,303		$	1,728		$	1,556		$	1,397	$	475	$	6,459
Profit and loss:
Equity loss	$	(9	)	$	(7	)	$	(8	)	$	—	$	—	$	(24	)
Depreciation, depletion, and amortization		71			106			56			61		11		305
Income taxes		85			(49	)		28			71		18		153
ATOI		212			(59	)		62			151		44		410
	Alumina			Primary Metals			Global Rolled Products			Engineered Products and Solutions		Transportation and Construction Solutions		Total
Nine months ended September 30, 2016
Sales:
Third-party sales	$	1,926		$	3,390		$	4,468		$	4,320	$	1,346	$	15 450
Intersegment sales		879			1,388			88			—		—		2,355
Total sales	$	2,805		$	4,778		$	4,556		$	4,320	$	1 346	$	17,805
Profit and loss:
Equity (loss) income	$	(30	)	$	7		$	(31	)	$	—	$	—	$	(54	)
Depreciation, depletion, and amortization		197			302			170			190		35		894
Income taxes		76			(16	)		80			236		49		470
ATOI		189			111			194			504		132		1,130
Nine months ended September 30, 2015
Sales:
Third-party sales	$	2,723		$	4,355		$	4,816		$	3,933	$	1,438	$	17,265
Intersegment sales		1,323			1,733			99			—		—		3,155
Total sales	$	4,046		$	6,088		$	4,915		$	3,933	$	1,438	$	20,420
Profit and loss:
Equity loss	$	(27	)	$	(15	)	$	(24	)	$	—	$	—	$	(66	)
Depreciation, depletion, and amortization		228			324			168			166		32		918
Income taxes		264			14			89			228		49		644
ATOI		648			195			192			472		126		1,633

The following table reconciles total segment ATOI to consolidated net income attributable to Arconic:

	Third quarter ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Total segment ATOI	$	395		$	410		$	1,130		$	1,633
Unallocated amounts (net of tax):
Impact of LIFO		1			50			(5	)		93
Metal price lag		4			(48	)		12			(110	)
Interest expense		(86	)		(80	)		(253	)		(240	)
Noncontrolling interests		(20	)		(62	)		(58	)		(189	)
Corporate expense		(77	)		(72	)		(209	)		(199	)
Restructuring and other charges		(13	)		(48	)		(89	)		(368	)
Other		(38	)		(106	)		(211	)		(241	)
Consolidated net income attributable to Arconic	$	166		$	44		$	317		$	379

Items required to reconcile total segment ATOI to consolidated net income attributable to Arconic include: the impact of LIFO inventory accounting; metal price lag; interest expense; noncontrolling interests; corporate expense (general administrative and selling expenses of operating the corporate headquarters and other global administrative facilities, along with depreciation and amortization on corporate-owned assets); restructuring and other charges; and other items, including intersegment profit eliminations, differences between tax rates applicable to the segments and the consolidated effective tax rate, and other nonoperating items such as foreign currency transaction gains/losses and interest income.