SEC Company Response from Arconic Corp (CIK 0001790982) — Jan 22, 2020
Arconic Corp (CIK 0001790982)
Date: Jan. 22, 2020 · CIK: 0001790982 · Accession: 0001104659-20-005739
AI Filing Summary & Sentiment
File numbers found in text: 001-39162
Referenced dates: January 7, 2020
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CORRESP
1
filename1.htm
[Letterhead of Wachtell, Lipton, Rosen &
Katz]
January 22, 2020
Via EDGAR and Courier
Sherry Haywood
Asia Timmons-Pierce
Division of Corporation Finance
Office of Manufacturing
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549
Re: Arconic Rolled Products Corporation
Registration Statement on Form 10-12B
Filed December 17, 2019
File No. 001-39162
Dear Ms. Haywood and Ms. Timmons-Pierce:
On behalf of our client, Arconic Rolled
Products Corporation (“ARPC”), set forth below is the response of ARPC to the comments of the Staff of the Division
of Corporation Finance (the “Staff”) that were set forth in your letter dated January 7, 2020, regarding ARPC’s
registration statement on Form 10-12B (File No. 001-39162) (together with the exhibits filed therewith, including the information
statement filed as Exhibit 99.1 thereto, the “Registration Statement”), which was filed with the Securities
and Exchange Commission on December 17, 2019. In connection with this letter responding to the Staff’s comments, ARPC is
filing Amendment No. 1 to the Registration Statement (“Amendment No. 1”). In addition to filing this letter
by EDGAR, we are separately furnishing to the Staff two courtesy copies of Amendment No. 1 marked to show the changes made to the
Registration Statement.
For your convenience, the Staff’s
comments are set forth in bold, followed by the response on behalf of ARPC. All page references in the response set forth below
refer to pages of Amendment No. 1.
Form 10
Management’s Discussion and Analysis of Financial
Condition and Results of Operations Segment Information, page 88
1. We note your response to prior comment 2; however, it continues to appear to us that you should revise your disclosures
to quantify the impact of the factors that you identify as impacting segment sales and segment operating profit during each period
presented, including the impact of changes in aluminium prices and volume sold and discuss the underlying factors that led to those
changes. In this regard, it appears to us that Arconic provides quantified disclosures related to the impact of changes in aluminium
prices and volume sold in earnings releases and analyst calls.
U.S. Securities and Exchange Commission
January 22, 2020
Page 2
Response: In response
to the Staff’s comment, ARPC has revised its disclosures on pages 110 and 111 of Amendment No. 1 to quantify the impact
of changes in aluminum prices on segment sales and segment operating profit, consistent with ParentCo’s earnings
releases and analyst calls. Please note, ARPC did not include similar disclosures on pages 97 through 99 of Amendment No. 1
for the 2018 annual period compared to the 2017 annual period and the 2017 annual period compared to the 2016 annual period
primarily because the information is not readily available due to changes in organizational structure.
In future filings, ARPC will review
its disclosures to determine if any additional factors that are material can be practicably quantified, and, if so, ARPC will provide
the appropriate additional disclosure during each period presented.
Financial Statements
Statement of Changes in Combined Equity,
page F-7
2. We note your response to prior comment 5; however, based on the significance of transactions with the ParentCo, it continues
to appear to us that you should provide an analysis of the components included in the change in ParentCo contribution during each
period presented and, to the extent applicable, reconcile those components to existing disclosures related to cost allocations
and financing amounts reflected in the statements of cash flows.
Response: In response to
the Staff’s comment, please see the following table for an analysis and reconciliation of the change in ParentCo contribution:
For the year ended
December 31,
For the nine
months ended
September 30,
2018
2017
2016
2019
2018
Net transfers (to) from
Parent Company(1)
$ (531)
$ 148
$ (292)
$ (69)
$ (131)
Cost allocations:
Depreciation
and
amortization(2)
10
10
8
9
7
Restructuring and other
charges(2)
50
6
9
5
(3)
Other expenses (income),
net(3)
4
(267)
3
4
3
Foreign currency impact
106
262
(377)
(88)
(41)
Other
22
39
26
28
18
Change in ParentCo
contribution
$
(339)
$
198
$
(623)
$
(111)
$
(147)
(1) See the
Financing Activities section of the Statement of Combined Cash Flows on page F-6 of Amendment No. 1 for the year ended
December 31, 2018, 2017, and 2016 and on page F-47 of Amendment No. 1 for the nine months ended September 30, 2019 and
2018.
(2) See Cost
Allocations in Note A to the Combined Financial Statements on page F-9 of Amendment No. 1 for the year ended December 31,
2018, 2017, and 2016 and on page F-50 of Amendment No. 1 for the nine months ended September 30, 2019 and 2018.
U.S. Securities and Exchange Commission
January 22, 2020
Page 3
(3) These
amounts represent an allocation of the loss (gain) on sale of corporate assets and were included in the allocation amounts on
page F-9 of Amendment No. 1 for the year ended December 31, 2018, 2017, and 2016 and on page F-50 of Amendment No. 1 for the
nine months ended September 30, 2019 and 2018.
* * * * * *
If you have any questions
concerning the Registration Statement or require any additional information in connection with the filing, please do not hesitate
to contact the undersigned at (212) 403-1128 or KLCain@wlrk.com, or my colleague Mark A. Stagliano at (212) 403-1060 or MAStagliano@wlrk.com.
Very truly yours,
/s/ Karessa L. Cain
Karessa L. Cain
cc: Katherine H. Ramundo, Arconic Inc.
Margaret Lam, Arconic Inc.
Mark A. Stagliano, Wachtell, Lipton,
Rosen & Katz