(dollars in millions, except per-share amounts and per-metric ton amounts; shipments in thousands of metric tons (kmt))
Management Review of 2022 and Outlook for the Future
We ended the year with a cash balance of $261, and total liquidity of $1,450 (comprised of Cash and cash equivalents of $261 and undrawn availability of $1,189 under the Company's ABL Credit Agreement).
Note T to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
Restructuring and Other Charges. In 2022 and 2021, Restructuring and other charges were comprised of a net charge of $456 and $624, respectively. See
Note E to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K for additional information.
(Benefit) Provision for Income Taxes. The Company's effective tax rate, including discrete items, was 5.7% (benefit on a loss) in 2022 and 13.5% (benefit on a loss) in 2021. See Note I to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K for a reconciliation of the effective tax rate for each of these years to the U.S. federal statutory rate of 21%.
In the 2021 first quarter, management approved the idling of the casthouse at the Lafayette (Indiana) plant. Additionally, in the 2021 second quarter, management approved the idling of the remaining operations (primarily small presses) at the Chandler
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Net Loss Attributable to Arconic Corporation For the year ended December 31,
(4)In 2022, 2021, and 2020, Restructuring and other charges includes a $47, $584, and $199, respectively, charge for the settlement of certain employee retirement benefits virtually all of which were within the United States and the United
See the Environmental Matters section of Note T to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
Cash provided from operations was $338 in 2022 compared with cash used for operations of $407 in 2021.
Note K to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K for additional information.
Standard and Poor's Global Ratings (S&P) has assigned a BB rating to the Company, a B+ rating to the 2028 Notes, and a BB+ rating to the 2025 Notes. Additionally, S&P has given these ratings a stable outlook.
Cash used for investing activities was $214 in 2022 compared with $181 in 2021.
The use of cash in 2021 reflects capital expenditures of $184, more than half of which was attributable to sustaining spend at the U.S. rolling mills.
Contractual Obligations and Off-Balance Sheet Arrangements
Operating leases represent multi-year obligations for certain land and buildings, plant equipment, vehicles, and computer equipment.
Interest related to debt is based on stated interest rates on debt with maturities that extend to 2028 (see the 2022 Debt Activity and 2021 Debt Activity sections of Financing Activities under Liquidity and Capital Resources above).
Layoff and other restructuring payments primarily relate to severance costs.
Off-Balance Sheet Arrangements. Arconic Corporation has outstanding bank guarantees, letters of credit, and surety bonds related to outstanding responsibilities and obligations. See the Commitments section of Note T to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
Critical Accounting Policies and Estimates
In 2022, 2021, and 2020, Arconic recognized stock-based compensation expense of $15 ($12 after-tax), $22 ($17 after-tax), and $23 ($18 after-tax), respectively.
Recently Adopted and Recently Issued Accounting Guidance
See the respective section of Note B to the Consolidated Financial Statements in Part II Item 8 of this Form 10-K.
© Edgar Online, source Glimpses