(dollars in millions, except per-share amounts; shipments in thousands of metric tons (kmt))



References to "ParentCo" refer to Arconic Inc., a Delaware corporation, and its
consolidated subsidiaries (through March 31, 2020, at which time it was renamed
Howmet Aerospace Inc. ("Howmet")). On April 1, 2020 (the "Separation Date"),
ParentCo separated into two standalone, publicly-traded companies, Arconic
Corporation and Howmet (the "Separation"). In connection with the Separation, as
of March 31, 2020, the Company and Howmet entered into several agreements to
effect the Separation, including a Separation and Distribution Agreement and a
Tax Matters Agreement. See Overview in the Management's Discussion and Analysis
of Financial Condition and Results of Operations in Part II Item 7 of Arconic
Corporation's Annual Report on Form 10-K for the year ended December 31, 2021
for additional information.

Results of Operations

Outlook

Management has revised certain expectations for sales by major end market, from
what had been previously disclosed in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in both Part I Item 2 in the
Company's Quarterly Report on Form 10-Q for the period ended June 30, 2022 and
in Part II Item 7 in the Company's Annual Report on Form 10-K for the year ended
December 31, 2021. Consistent with the disclosure included in the Form 10-K, the
revised expectations do not include the impact of changes in aluminum prices.

•Ground Transportation: we lowered our sales outlook at the end of third quarter
2022 to reflect anticipated growth of approximately 0% to 5% (versus prior
expectation of 5% to 10%) in 2022 compared with 2021 due to continued supply
chain challenges being experienced by original equipment manufacturers.
•Industrial Products: we lowered our sales outlook at the end of third quarter
2022 to reflect anticipated growth of approximately (10)% to 0% (versus prior
expectation of 5% to 10%) in 2022 compared with 2021 due to operational issues
at our Tennessee and Lancaster plants that are impacting shipments in this end
market.
•Building and Construction: we raised our sales outlook at the end of first
quarter 2022 (unchanged at the end of both second quarter and third quarter
2022) to reflect anticipated growth of approximately 15% to 20% (versus prior
expectation of 5% to 10%) in 2022 compared with 2021, driven by growth in North
American non-residential construction activity and our ability to capture
meaningful price increases to address inflationary cost pressures.
•Packaging: we lowered our sales outlook at the end of third quarter 2022 to
reflect anticipated growth of approximately 20% to 30% (versus prior expectation
of 20% to 40%) in 2022 compared with 2021 due to lower export sales from China
and Russia.
•Aerospace: we lowered our sales outlook at the end of third quarter 2022 to
reflect anticipated growth of approximately 30% to 40% (versus prior expectation
of 35% to 45%) in 2022 compared with 2021 due to production challenges at our
Davenport plant that are impacting shipments in this end market.

Legal Proceedings Involving our Russian Operations



Our subsidiaries that own and operate our facility located in Samara, Russia
are, and have been since the Separation, subject to proceedings initiated by
Russian regulatory authorities as a result of alleged violations of Russian
Federal Law No. 57-FZ. In connection with these proceedings, authorities have
imposed preliminary injunctions prohibiting, among other actions, the
disposition of shares or assets, the payment of dividends, placement of bonds,
amendments to organizational documents, and changes to the subsidiaries' chief
executive officer and board of directors. See   Note P   to the Consolidated
Financial Statements in Part I, Item 1. "Financial Statements" under the caption
"Contingencies and Commitments-Contingencies-Litigation-Federal Antimonopoly
Service Of The Russian Federation Litigation" for additional information
regarding the proceedings. The proceedings and underlying claims may not be
resolved favorably, are likely to continue to be delayed, may be resolved in a
manner that results in permanent injunctions similar to or more restrictive than
the preliminary injunctions, and could result in a requirement by the Russian
government that we divest some or all of the assets located at the Samara
facility, requirements related to or restrictions on the terms of any such
divestiture, or the nationalization or other expropriation of our Russian
operations by the Russian government.





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The following table presents selected financial information related to our
operations in Russia:

                                                                September 30,
                                                                   2022(1)             December 31, 2021
Cash and cash equivalents                                    $            174          $            79
Receivables from customers                                                 98                         120
Inventories                                                               122                         102
Properties, plants and equipment, net                                     186                         200
Accounts payable, trade                                                    27                          47

                                                             For the nine months
                                                             ended September 30,       For the year ended
                                                                    2022               December 31, 2021
Third-party sales(2)                                         $            787          $           968
Segment Adjusted EBITDA                                                    62                          87


_____________________

(1)As of September 30, 2022, our Russia operations had approximately $520 in net assets (excluding intercompany balances).

(2)In both periods presented, Third-party sales includes aluminum products manufactured at Arconic's plant in Russia and sold through the Company's international selling company located in Hungary.



At September 30, 2022 and December 31, 2021, the Cash and cash equivalents
presented above were held in Russia and were not available for dividends. Cash
and cash equivalents held in Russia represented 13% of Arconic's liquidity
(comprised of Cash and cash equivalents of $312 and undrawn availability of
$1,039 under Arconic's ABL Credit Agreement (see   Note N   to the Consolidated
Financial Statements in Part I Item 1 of this Form 10-Q)) at September 30, 2022.
Cash and cash equivalents held in Russia increased $95 from December 31, 2021 to
September 30, 2022, primarily due to increased earnings, currency appreciation,
and lower aluminum prices. In addition, for the nine months ended September 30,
2022 and year ended December 31, 2021, our Samara, Russia facility generated 14%
and 16% of Third-party sales (mostly packaging and industrial), respectively,
and 13% of Segment Adjusted EBITDA for the Rolled Products segment. As a
condition of the acquisition of the Samara facility in 2005 by our former parent
company, our Samara facility has an ongoing legal obligation to manufacture
semi-finished products for Russian customers for defense applications. The sale
of such products represented 1% of the third-party sales generated by our Samara
facility for both the nine months ended September 30, 2022 and year ended
December 31, 2021.

In May 2022, we announced that we would pursue the sale of our operations in
Russia. Arconic has engaged with both the U.S. government and Russian government
with the objective of executing a lawful sale of its Russian operations. The
Company has had several interested parties in the process and is ultimately
working towards completion of a sale of its Russian operations to a third party
pursuant to a framework agreement, the closing of which is subject to the
receipt of governmental approvals and other conditions and contingencies. See

Note O to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q.



We cannot at this time reasonably estimate the likelihood or timing of any
resolution of the regulatory proceedings or underlying claims, whether such
resolution would include the removal of the injunctions or the imposition of
additional restrictions, or whether we will be able to successfully complete the
sale of our Russian operations. The potential impacts of an unfavorable
resolution of the proceedings and underlying claims, and our decision to pursue
the sale of our Russian operations, include:

•continued unavailability of funds for the payment of dividends to Arconic;
•a restriction on the disposition of shares or assets;
•decreases in or loss of third-party sales and Segment Adjusted EBITDA generated
by our Russian operations;
•restrictions on capital investments in the facility;
•our ability to sell our Russian operations and any losses on, and transaction
expenses associated with, any such sale;
•our ability to access or repatriate the proceeds of any such sale; and
•reactions to or consequences of our announcement regarding the sale of our
Russian operations, including the potential for our Russian operations to be
nationalized or otherwise expropriated by the Russian government.

Any of the foregoing could have a significant indirect impact on the performance
of our other locations. In addition, any impact on our ability to fulfill
existing contractual obligations could subject us to reputational harm and
potential litigation involving customers and suppliers. Increased restrictions
on our operations in Russia may have a material adverse effect on our


                                       40
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financial condition, results of operations or cash flows. Our operations in
Russia, our ability to resolve the proceedings and underlying claims related to
our facility in Samara, Russia, and our ability to complete the sale of our
Russian operations are likely to be negatively impacted by the disruption and
geopolitical instability resulting from the ongoing conflict between Russia and
Ukraine. See Part II, Item 1A "Risk Factors-The ongoing conflict between Russia
and Ukraine has resulted in continued geopolitical instability and disruption,
which are likely to adversely affect our business, financial condition, results
of operations or cash flows and our ability to complete the sale of our Russian
operations." for additional information.

Earnings Summary



Sales.  Sales were $2,280 in the 2022 third quarter compared to $1,890 in the
2021 third quarter and $7,019 in the 2022 nine-month period compared with $5,366
in the 2021 nine-month period. The increase of $390, or 21%, in the third
quarter comparison was primarily due to favorable impacts from aluminum hedging
activities, favorable product pricing, and favorable product mix, somewhat
offset by lower aluminum prices. In the nine-month period comparison, the
improvement of $1,653, or 31%, was principally due to higher aluminum prices,
favorable impacts from aluminum hedging activities, favorable product pricing,
and favorable product mix, all of which were slightly offset by unfavorable
foreign currency movements driven by a weaker euro.

In March 2021, the Company entered into a settlement agreement with a customer
related to the terms of an existing long-term contract. As a result, the
customer agreed to pay Arconic $18, which will be recognized over the applicable
three-year period. Accordingly, the Company's sales for each of the 2022 and
2021 third quarter included $2 and the 2022 and 2021 nine-month period included
$5 and $11, respectively, associated with this settlement.

Cost of goods sold.  COGS was $2,074, or 91.0% of Sales, in the 2022 third
quarter compared to $1,676, or 88.7% of Sales, in the 2021 third quarter and
$6,288, or 89.6% of Sales, in the 2022 nine-month period compared with $4,674,
or 87.1% of Sales, in the 2021 nine-month period. In the third quarter and
nine-month period comparisons the percentage was negatively impacted by higher
costs for direct materials, including alloying materials, energy, and
transportation, operational issues and production outages affecting the Rolled
Products segment, and higher aluminum prices (underlying metal price is
contractually passed-through to most customers at cost). These negative impacts
were partially offset by favorable product pricing driven by pricing pressures
primarily in North America as a result of inflation.

Additionally, on May 14, 2022, the Company and the United Steelworkers reached a
tentative four-year labor agreement covering approximately 3,300 employees at
four U.S. locations; the previous labor agreement expired on May 15, 2022. The
tentative agreement was ratified by the union employees on June 1, 2022. In the
2022 nine-month period, Arconic recognized $19 in Cost of goods sold primarily
for a one-time signing bonus for the covered employees.

Selling, general administrative, and other expenses.  SG&A was $62 in the 2022
third quarter compared to $63 in the 2021 third quarter and $200 in the 2022
nine-month period compared to $183 in the 2021 nine-month period. The decrease
of $1, or 2%, in the third quarter comparison was due to lower incentive
compensation expense mostly offset by an increase in labor costs and legal fees.
The increase of $17, or 9%, in the 2022 nine-month period comparison was largely
attributable to higher labor costs, stock-based employee compensation expense,
and legal fees. SG&A as a percentage of Sales was 2.7% in the 2022 third quarter
compared to 3.3% in the 2021 third quarter and 2.8% in the 2022 nine-month
period compared to 3.4% in the 2021 nine-month period.

Provision for depreciation and amortization.  D&A was $59 in the 2022 third
quarter compared to $61 in the 2021 third quarter and $181 in the 2022
nine-month period compared to $186 in the 2021 nine-month period. The decrease
of $2, or 3%, in the third quarter comparison, and $5, or 3%, in the nine-month
period was mainly caused by the absence of depreciation resulting from asset
retirements and a decrease in amortization related to intangible assets.

Restructuring and other charges.  Restructuring and other charges were $112 and
$119 in the 2022 third quarter and nine-month period, respectively, and $14 and
$612 in the 2021 third quarter and nine-month period, respectively. See   Note
E   to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q
for additional information.

Interest expense.  Interest expense was $27 in the 2022 third quarter compared
to $26 in the 2021 third quarter and $78 in the 2022 nine-month period compared
to $74 in the 2021 nine-month period. The increase of $1, or 4%, in the third
quarter comparison was principally related to $150 borrowed, of which $50 was
repaid, under the ABL Credit Facility. The increase of $4, or 5%, in the
nine-month period comparison was principally related to $250 borrowed, of which
$100 was repaid, under the ABL Credit Facility, and additional interest
associated with a $300 debt offering completed in March 2021. See Financing
Activities under Liquidity and Capital Resources below for additional
information related to these financing transactions.


                                       41

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Other expenses, net. Other expenses, net was $27 and $9 in the 2022 third quarter and nine-month period, respectively, compared to $15 and $52 in the 2021 third quarter and nine-month period, respectively. See Note F to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q for additional information.

Provision (Benefit) for income taxes. The Company's effective tax rate, including discrete items, was 27.8% and 21.4% in the 2022 third quarter and nine-month period, respectively, and 40.7% and 18.4% in the 2021 third quarter and nine-month period, respectively. See Note H to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q for additional information.

Segment 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 each of (i) Stock-based compensation expense, (ii) Metal price lag, and
(iii) Unrealized (gains) losses on mark-to-market hedging instruments and
derivatives (see below). Arconic's Segment Adjusted EBITDA may not be comparable
to similarly titled measures of other companies' reportable segments.

Effective in the first quarter of 2022, management modified the Company's
definition of Segment Adjusted EBITDA to exclude the impact of unrealized gains
and losses on mark-to-market hedging instruments and derivatives. This
modification was deemed appropriate as Arconic is considering entering into
additional hedging instruments in future reporting periods if favorable
conditions exist to mitigate cost inflation. Certain of these instruments may
not qualify for hedge accounting resulting in unrealized gains and losses being
recorded directly to Sales or Cost of goods sold, as appropriate (i.e.,
mark-to-market). Additionally, this change was also applied to derivatives that
do not qualify for hedge accounting for consistency purposes. The Company does
not have a regular practice of entering into contracts that are treated as
derivatives for accounting purposes. Ultimately, this change was made to
maintain the transparency and visibility of the underlying operating performance
of Arconic's reportable segments. Prior to this change, the Company had a
limited number of hedging instruments and derivatives that did not qualify for
hedge accounting, the unrealized impact of which was not material to Arconic's
Segment Adjusted EBITDA performance measure. Accordingly, prior period
information presented was not recast to reflect this change.

Rolled Products

                                                       Third quarter ended September        Nine months ended September
                                                                    30,                                 30,
                                                           2022              2021              2022              2021
Third-party sales                                      $   1,861          $ 1,559          $   5,778          $ 4,397
Intersegment sales                                            10                9                 33               26
Total sales                                            $   1,871          $ 1,568          $   5,811          $ 4,423
Segment Adjusted EBITDA                                $     111          $   155          $     461          $   493
Third-party aluminum shipments (kmt)                         345              345              1,067            1,043


Third-party sales for the Rolled Products segment increased $302, or 19%, in the
2022 third quarter and $1,381, or 31%, in the 2022 nine-month period compared to
the same periods in 2021. In the third quarter comparison, the increase was
primarily due to favorable impacts from aluminum hedging activities, price
increases for the pass-through of certain inflation impacts, and favorable
product mix, somewhat offset by lower aluminum prices (see below). The
improvement in the nine-month period comparison was largely the result of higher
aluminum prices (see below), favorable impacts from aluminum hedging activities,
price increases for the pass-through of certain inflation impacts, favorable
product mix, and a net increase in volumes (see below).

In the third quarter comparison, the lower aluminum prices were mostly driven by
an 11% decrease in the average LME aluminum price and a decline in regional
premiums, including a 21% decrease in the average Midwest premium (United
States). The higher aluminum prices in the nine-month period comparison were
largely driven by a 19% rise in the average LME aluminum price and increases in
regional premiums, including a 31% increase in the average Midwest premium
(United States).

The net increase in volumes in the nine-month period comparison was mostly due
to improvements in the packaging, aerospace, and automotive component of ground
transportation end markets. Volume related to the packaging end market increased
significantly as the can sheet operation at the Tennessee rolling mill
essentially reached full capacity by the end of the


                                       42
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2022 second quarter. Higher volume associated with the aerospace end market was
driven by continued recovery from the COVID-19 pandemic. An improvement in
volume for the automotive component of ground transportation was due to slow
recovery from the global semiconductor chip shortage. These higher volumes were
partially offset by a decline in both industrial products and the commercial
transportation component of ground transportation end markets, both of which
were impacted by supply chain disruptions. Additionally, the Rolled Products
segment experienced operational challenges and production outages associated
with electrical and mechanical issues at the Tennessee rolling mill and
disruptions in both the Tennessee and Davenport casting operations.

In March 2021, the Company entered into a settlement agreement with a customer
related to the terms of an existing long-term contract. As a result, the
customer agreed to pay Arconic $18, which will be recognized over the applicable
three-year period. Accordingly, the Company's sales for each of the 2022 and
2021 third quarter included $2 and the 2022 and 2021 nine-month period included
$5 and $11, respectively, associated with this settlement.

Segment Adjusted EBITDA for this segment decreased $44, or 28%, and $32, or 6%,
in the 2022 third quarter and nine-month period, respectively, compared with the
corresponding periods in 2021. The decline in both comparisons was principally
related to higher costs for alloying materials, energy, maintenance, and
transportation all due to inflation, the impact of the previously mentioned
operational challenges and production outages, and increased expenses for labor
as this segment increases its workforce to address current and future volume
growth. These higher costs were partially offset by customer price increases due
to adjustments for inflation impacts and, in the nine-month period comparison, a
benefit derived from the absence of below normal absorption of fixed costs that
occurred in the 2021 first quarter.

The Company is working towards completion of a sale of its operations in Russia.
See "-Legal Proceedings Involving our Russian Operations" and   Note O   to the
Consolidated Financial Statements in Part I Item 1 of this Form 10-Q for
additional information.

Building and Construction Systems



                                                               Third quarter ended September        Nine months ended September
                                                                            30,                                 30,
                                                                   2022               2021              2022             2021
Third-party sales                                              $      321          $   257          $     941          $  750
Segment Adjusted EBITDA                                        $       49          $    34          $     146          $   97


Third-party sales for the Building and Construction Systems segment increased
$64, or 25%, in the 2022 third quarter and $191, or 25%, in the 2022 nine-month
period, compared to the same periods in 2021. In both comparisons, the
improvement was mostly attributable to multiple product price increases
implemented since March 2021 across the entire portfolio to address inflationary
cost pressures.

Segment Adjusted EBITDA for this segment increased $15, or 44%, and $49, or 51%,
in the 2022 third quarter and nine-month period, respectively, compared with the
corresponding periods in 2021. In both comparisons, the improvement was
primarily related to favorable product pricing, partially offset by higher costs
for aluminum, alloying materials, maintenance, and transportation, all due to
inflation.

The Company is evaluating strategic options for the businesses that comprise the
Building and Construction Systems segment. See   Note O   to the Consolidated
Financial Statements in Part I Item 1 of this Form 10-Q for additional
information.

Extrusions

                                                       Third quarter ended September        Nine months ended September
                                                                    30,                                 30,
                                                           2022               2021              2022             2021
Third-party sales                                      $       98          $    74          $     300          $  219
Segment Adjusted EBITDA                                $      (13)         $    (7)         $     (30)         $  (19)
Third-party aluminum shipments (kmt)                            9                9                 28              26


Third-party sales for the Extrusions segment increased $24, or 32%, in the 2022
third quarter and $81, or 37%, in the 2022 nine-month period compared to the
same periods in 2021. In both comparisons, the improvement was principally the
result of favorable product mix, primarily due to higher volumes for aerospace
and automotive; price increases, due to adjustments for


                                       43

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inflation impacts and higher aluminum prices; and a net increase in volumes, mostly driven by aerospace due to the lessened impact of the COVID-19 pandemic.



Segment Adjusted EBITDA for this segment decreased $6, or 86%, and $11, or 58%,
in the 2022 third quarter and nine-month period, respectively, compared with the
corresponding periods in 2021. The decrease in both comparisons was mainly
attributable to higher costs for aluminum, transportation, outside services, and
energy. The higher costs were the result of both increased pricing due to
inflation and usage due to operational issues. These negative impacts were
mostly offset by customer price increases due to adjustments for inflation
impacts. Overall, operational issues are driving underperformance in this
segment.

In the 2022 third quarter, management initiated a business review of the
Extrusions segment aimed at identifying alternatives to improve the financial
performance of this segment in future periods. Management continues to assess
alternatives and no decisions or commitments were made as of September 30, 2022.
In connection with this review, the Company updated its five-year strategic
plan, the results of which indicated that there is an expected decline in the
forecasted financial performance for the Extrusions segment (and asset group),
including continued forecasted losses. As such, management evaluated the
recoverability of the long-lived assets of the Extrusions asset group by
comparing the aggregate carrying value to the undiscounted future cash flows.
The result of this evaluation was that the long-lived assets were deemed to be
impaired as the aggregate carrying value exceeded the undiscounted future cash
flows. The impairment charge was measured as the difference between the
aggregate carrying value and aggregate fair value of the long-lived assets. Fair
value was determined using an orderly liquidation methodology for the machinery
and equipment and a sales comparison approach for the land and structures. As a
result, the Company recorded an impairment charge of $92, composed of $90 for
Properties, plants, and equipment and $2 for intangible assets (included within
Other noncurrent assets), in Restructuring and other charges on the Company's
Statement of Consolidation Operations (see   Note     E   to the Consolidated
Financial Statements in Part I Item 1 of this Form 10-Q). This charge was not
included in Extrusion's Segment Adjusted EBITDA.

Reconciliation of Total Segment Adjusted EBITDA to Consolidated Net (Loss) Income Attributable to Arconic Corporation



                                                       Third quarter ended September         Nine months ended September
                                                                    30,                                  30,
                                                           2022               2021              2022              2021
Total Segment Adjusted EBITDA                          $      147          $   182          $     577          $   571
Unallocated amounts:
Corporate expenses(1)                                          (4)              (7)               (23)             (26)
Stock-based compensation expense                               (6)              (8)               (19)             (15)
Metal price lag(2)                                             15              (21)                 9              (27)
Unrealized (losses) gains on mark-to-market
hedging instruments and derivatives                            (7)               -                 16                -
Provision for depreciation and amortization                   (59)             (61)              (181)            (186)
Restructuring and other charges(3)                           (112)             (14)              (119)            (612)
Other(4)                                                      (10)              (3)               (56)             (19)
Operating (loss) income                                       (36)              68                204             (314)
Interest expense                                              (27)             (26)               (78)             (74)
Other expenses, net                                           (27)             (15)                (9)             (52)
Benefit (Provision) for income taxes                           25              (11)               (25)              81
Net income attributable to noncontrolling
interest                                                        -                -                 (1)               -
Consolidated net (loss) income attributable to
Arconic Corporation                                    $      (65)         $    16          $      91          $  (359)



__________________

(1)Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities.



(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.


                                       44

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(3)In the 2022 third quarter and nine-month period, Restructuring and other charges includes a $92 asset impairment charge related to the Extrusions segment (see Extrusions above).



(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. In the
2022 third quarter and nine-month period, the respective amounts include costs
related to environmental remediation charges of $9 and $18, respectively.
Additionally in the 2022 nine-month period, Other includes costs related to the
new union labor agreement of $19. These charges were recorded in Cost of goods
sold on Arconic's Statement of Consolidated Operations. See   Note G   and
Environmental Matters in   Note P  , respectively, to the Consolidated Financial
Statements in Part I Item 1 of this Form 10-Q.

Environmental Matters

See Environmental Matters in Note P to the Consolidated Financial Statements in Part I Item 1 of this Form 10-Q.

Liquidity and Capital Resources



At September 30, 2022, the Company's Cash and cash equivalents were $312, of
which $174, or 56%, was held in Russia. Cash and cash equivalents held in Russia
represented 13% of Arconic's total liquidity at September 30, 2022. Cash and
cash equivalents held in Russia increased $95 from December 31, 2021 to
September 30, 2022, primarily due to increased earnings, currency appreciation,
and lower aluminum prices. Cash and cash equivalents held in Russia are
currently subject to preliminary injunctions imposed by regulatory authorities
that, among other things, prohibit the distribution of dividends. We cannot at
this time reasonably estimate the likelihood or timeline of a resolution
involving the removal of these injunctions, and accordingly cannot reasonably
estimate when, if at all, the funds will be available for the payment of
dividends to Arconic. We maintain a renewable intercompany loan facility that
could be utilized but we have as yet not utilized this facility. In addition,
Arconic has a number of commitments and obligations related to the Company's
operations in various foreign jurisdictions, resulting in the need for cash
outside the United States. Management continuously evaluates the Company's local
and global cash needs for future business operations, which may influence future
repatriation decisions.

Operating Activities

Cash provided from operations was $150 in the 2022 nine-month period compared with cash used for operations of $503 in the 2021 nine-month period.



In the 2022 nine-month period, cash provided from operations was mostly
comprised of a positive add-back for non-cash transactions in earnings of $351
and net income of $92, partially offset by an unfavorable change in working
capital of $284. The change in working capital was largely driven by higher
aluminum prices due to an increase in both the average LME price and regional
premiums. Additionally, the unfavorable change in working capital includes a
benefit of $158 related to customer receivables sold to a financial institution
where the underlying trade receivables were uncollected as of September 30, 2022
(see   Note R   to the Consolidated Financial Statements in Part I Item 1 of
this Form 10-Q).

In the 2021 nine-month period, cash used for operations was mostly comprised of
pension contributions of $456 (see below), an unfavorable change in working
capital of $454, and a net loss of $359, partially offset by a positive add-back
for non-cash transactions in earnings of $778. The impact in working capital was
partially driven by higher aluminum prices due to an increase in both the
average LME price and regional premiums.

In January 2021, the Company contributed a total of $200 to its two funded U.S.
defined benefit pension plans, comprised of the estimated minimum required
funding for 2021 of $183 and an additional $17. Additionally, in April 2021,
Arconic contributed a total of $250 to its two funded U.S. defined benefit
pension plans to maintain the funding level of the remaining plan obligations
not transferred under a group annuity contract. This contribution was funded
with the net proceeds from a March 2021 debt offering (see 2021 Debt Activity in
Financing Activities below). The Company had no minimum required funding due in
the 2022 first quarter and contributed $7 in both the 2022 second quarter and
third quarter to these two plans. Arconic expects to contribute a total of $8 to
these two plans in the remainder of 2022.

The Company received $5 and $11 in the 2022 and 2021 nine-month period, respectively, related to a settlement agreement reached with a customer in March 2021. See Sales under Results of Operations above for additional information.

Financing Activities



Cash provided from financing activities was $1 in the 2022 nine-month period
compared with $190 in the 2021 nine-month period. The source of cash in the 2022
nine-month period was principally due to $150 in net borrowings under the ABL
Credit


                                       45

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Facility (see 2022 Debt Activity below) mostly offset by the repurchase of
4,863,672 shares of the Company's common stock for $139 (see Share Repurchase
Program below). In the 2021 nine-month period, the source of cash reflects $314
in net proceeds from the issuance of new indebtedness (see 2021 Debt Activity
below), somewhat offset by $106 for the repurchase of 3,108,705 shares of the
Company's common stock (see Share Repurchase Program below).

2022 Debt Activity-Arconic maintains a five-year credit agreement, dated May 13,
2020, with a syndicate of lenders named therein and Deutsche Bank AG New York
Branch as administrative agent (the "ABL Credit Agreement"). The ABL Credit
Agreement provides for a senior secured asset-based revolving credit facility
(the "ABL Credit Facility") to be used, generally, for working capital or other
general corporate purposes. See Note Q to the Consolidated Financial Statements
in Part II Item 8 of Arconic's Annual Report on Form 10-K for the year ended
December 31, 2021 (filed on February 22, 2022) for additional information
related to the ABL Credit Agreement.

On February 16, 2022, the Company's ABL Credit Agreement was amended to increase
the revolving commitments under the ABL Credit Facility to $1,200 from $800
(available balance as of September 30, 2022 was $1,039 - see   Note N   to the
Consolidated Financial Statements in Part I Item 1 of this Form 10-Q).
Additionally, the accordion feature of the ABL Credit Facility was revised to
provide for the Company to request a further increase to the revolving
commitments in an aggregate principal amount equal to the greater of $350 and
the excess of the borrowing base over the ABL Credit Facility commitments.
Furthermore, the LIBOR-based floating interest rate was replaced with a term
SOFR-based interest rate, plus a credit spread adjustment equal to 0.10%, 0.15%
or 0.25% per annum for SOFR-based borrowings with interest periods of one month,
three months, or six months, respectively, under the ABL Credit Facility.
Arconic paid $1 in upfront costs associated with these amendments.

In the 2022 nine-month period, the Company borrowed $250 and repaid $100 under
the ABL Credit Facility. These borrowings were designated as SOFR loans with
either an initial one-month or three-month interest period. Arconic may repay
early or extend a part or all of these borrowings. In the 2022 third quarter and
nine-month period, the weighted-average interest rate and weighted-average days
outstanding of the borrowings was 5.03% and 4.02%, respectively, and 74 days and
105 days, respectively.

In October 2022, the Company repaid an additional $50 of the outstanding borrowings under the ABL Credit Facility.



2021 Debt Activity-On March 3, 2021, the Company completed a Rule 144A (U.S.
Securities Act of 1933, as amended) debt offering for an additional $300
aggregate principal amount of 6.125% Senior Secured Second-Lien Notes due 2028
(the "Additional 2028 Notes"). The Additional 2028 Notes were issued under the
indenture governing Arconic's existing 6.125% Senior Secured Second-Lien Notes
due 2028 (the "Existing 2028 Notes"). Other than with respect to the date of
issuance and issue price, the Additional 2028 Notes are treated as a single
series with and have the same terms as the Existing 2028 Notes. See Note Q to
the Consolidated Financial Statements in Part II Item 8 of Arconic's Annual
Report on Form 10-K for the year ended December 31, 2021 (filed on February 22,
2022) for additional information related to the Existing 2028 Notes. The
Additional 2028 Notes were sold at 106.25% of par (i.e., a premium) and, after
reflecting a discount to the initial purchasers of the Additional 2028 Notes,
the Company received $315 in net proceeds from the debt offering. Arconic used
the net proceeds of this issuance to fund an annuitization of certain U.S.
defined benefit pension plan obligations in April 2021. The premium ($19) and
costs to complete the financing ($5) were deferred and are being amortized to
interest expense over the term of the Additional 2028 Notes. The amortization of
the premium is reflected as a reduction to interest expense and the amortization
of the costs to complete the financing is reflected as an addition to interest
expense. Interest on the Additional 2028 Notes is paid semi-annually in February
and August and commenced August 15, 2021.

Share Repurchase Program-On May 4, 2021, Arconic announced that its Board of
Directors approved a share repurchase program authorizing the Company to
repurchase shares of its outstanding common stock up to an aggregate
transactional value of $300 over a two-year period expiring April 28, 2023. In
the 2022 and 2021 nine-month periods, Arconic repurchased 4,863,672 and
3,108,705, respectively, shares of the Company's common stock for $139 and $106,
respectively, under this program (see Part II Item 2 in this Form 10-Q for
additional information).

Investing Activities



Cash used for investing activities was $171 in the 2022 nine-month period
compared with $125 in the 2021 nine-month period. The use of cash in the 2022
nine-month period was due to $175 in capital expenditures, mostly due to growth
spend at the U.S. rolling mills. The use of cash in the 2021 nine-month period
was due to $123 in capital expenditures, largely attributable to sustaining
spend at the U.S. rolling mills.



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Recently Adopted and Recently Issued Accounting Guidance



See   Note B   to the Consolidated Financial Statements in Part I Item 1 of this
Form 10-Q.


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