Segment and Geographic Area Information Arconic is a global leader in lightweight metals engineering and manufacturing. Arconics 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. Arconics segments are organized by product on a worldwide basis. In the first quarter of 2018, the Company changed its primary measure of segment performance from Adjusted earnings before interest, tax, depreciation, and amortization (Adjusted EBITDA) to Segment operating profit, which more closely aligns segment performance with Operating income as presented in the Statement of Consolidated Operations. Segment performance under Arconics management reporting system is evaluated based on a number of factors; however, the primary measure of performance is Segment operating profit. Arconics 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 also includes certain items that, under the previous segment performance measure, were recorded in Corporate, such as the impact of LIFO inventory accounting, metal price lag, intersegment profit eliminations, and derivative activities. Segment operating profit may not be comparable to similarly titled measures of other companies. Differences between segment totals and consolidated Arconic are in Corporate. 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 Arconics consolidated totals for line items not reconciled are in Corporate. Arconics operations consist of three worldwide reportable segments as follows: Engineered Products and Solutions. 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 (titanium, steel, and nickel superalloys); seamless rolled rings (mostly nickel superalloys); investment castings (nickel superalloys, titanium, and aluminum), including airfoils and forged jet engine components (e.g., jet engine disks); and extruded, machined and formed aircraft parts (titanium and aluminum), all of which are sold directly to customers and through distributors. More than 75% of the third-party sales in this segment are from the aerospace end market. A small part of this segment also produces various forged, extruded, and machined metal products (titanium, aluminum and steel) for the oil and gas, automotive, and land and sea defense end markets. Seasonal decreases in sales are generally experienced in the third quarter of the year due to the European summer slowdown across all end markets. Global Rolled Products. This segment produces aluminum sheet and plate for a variety of end markets. Sheet and plate is sold directly to customers and through distributors related to the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial products (mainly used in the production of machinery and equipment and consumer durables) end markets. A small portion of this segment also produces aseptic foil for the packaging end market. While the customer base for flat-rolled products is large, a significant amount of sales of sheet and plate is to a relatively small number of customers. Transportation and Construction Solutions. This segment produces products that are used mostly in the commercial transportation and nonresidential building and construction end markets. Such products include integrated aluminum structural systems, architectural extrusions, and forged aluminum commercial vehicle wheels, which are sold both directly to customers and through distributors. A small part of this segment also produces aluminum products for the industrial products end market. The operating results and assets of Arconics reportable segments were as follows: Engineered Products and Solutions Global Rolled Products Transportation and Construction Solutions Total 2018 Sales: Third-party sales $ 6,316 $ 5,604 $ 2,126 $ 14,046 Intersegment sales  160  160 Total sales $ 6,316 $ 5,764 $ 2,126 $ 14,206 Profit and loss: Segment operating profit $ 891 $ 386 $ 304 $ 1,581 Restructuring and other charges 71 (156 ) 1 (84 ) Provision for depreciation and amortization 282 212 50 544 2017 Sales: Third-party sales $ 5,943 $ 5,000 $ 2,011 $ 12,954 Intersegment sales  148  148 Total sales $ 5,943 $ 5,148 $ 2,011 $ 13,102 Profit and loss: Segment operating profit $ 964 $ 424 $ 290 $ 1,678 Restructuring and other charges 30 72 52 154 Provision for depreciation and amortization 268 205 50 523 2016 Sales: Third-party sales $ 5,728 $ 4,865 $ 1,802 $ 12,395 Intersegment sales  118  118 Total sales $ 5,728 $ 4,983 $ 1,802 $ 12,513 Profit and loss: Segment operating profit $ 955 $ 421 $ 246 $ 1,622 Restructuring and other charges 78 40 14 132 Provision for depreciation and amortization 255 201 48 504 2018 Assets: Capital expenditures $ 349 $ 255 $ 111 $ 715 Goodwill 4,179 245 76 4,500 Total assets 10,346 3,934 1,089 15,369 2017 Assets: Capital expenditures $ 308 $ 178 $ 57 $ 543 Goodwill 4,205 252 78 4,535 Total assets 10,325 3,955 1,041 15,321 The following tables reconcile certain segment information to consolidated totals: For the year ended December 31, 2018 2017 2016 Sales: Total segment sales $ 14,206 $ 13,102 $ 12,513 Elimination of intersegment sales (160 ) (148 ) (118 ) Corporate (32 ) 6 (1 ) Consolidated sales $ 14,014 $ 12,960 $ 12,394 For the year ended December 31, 2018 2017 2016 Total segment operating profit $ 1,581 $ 1,678 $ 1,622 Unallocated amounts: Impairment of goodwill  (719 )  Restructuring and other charges (9 ) (165 ) (155 ) Corporate expense (247 ) (314 ) (513 ) Consolidated operating income $ 1,325 $ 480 $ 954 Interest expense (378 ) (496 ) (499 ) Other (expense) income, net (79 ) 486 (41 ) Consolidated income before income taxes $ 868 $ 470 $ 414 December 31, 2018 2017 Assets: Total segment assets $ 15,369 $ 15,321 Unallocated amounts: Cash and cash equivalents 2,277 2,150 Deferred income taxes 573 743 Corporate fixed assets, net 305 310 Fair value of derivative contracts 37 91 Other 132 103 Consolidated assets $ 18,693 $ 18,718 Sales by major product grouping were as follows: For the year ended December 31, 2018 2017 2016 Sales: Innovative flat-rolled products $ 5,588 $ 4,992 $ 4,864 Engines 2,940 2,708 2,560 Engineered structures 1,839 1,743 1,683 Fastening systems 1,531 1,484 1,463 Architectural aluminum systems 1,140 1,065 1,010 Aluminum wheels 969 805 689 Other 7 163 125 $ 14,014 $ 12,960 $ 12,394 Geographic information for sales was as follows (based upon the country where the point of sale occurred): For the year ended December 31, 2018 2017 2016 Sales: United States $ 9,137 $ 8,167 $ 7,823 France 936 965 930 Hungary 823 739 619 United Kingdom 737 721 711 China 632 615 582 Russia 553 500 433 Germany 302 309 284 Canada 285 261 262 Brazil 214 285 250 Japan 170 141 145 Other 225 257 355 $ 14,014 $ 12,960 $ 12,394 Geographic information for long-lived assets was as follows (based upon the physical location of the assets): December 31, 2018 2017 Long-lived assets: United States $ 4,148 $ 4,005 China 326 347 Hungary 257 227 Russia 253 276 United Kingdom 253 259 France 163 159 Germany 84 88 Canada 61 63 Brazil 54 62 Other 105 108 $ 5,704 $ 5,594