Effect of exchange rate changes on cash, cash equivalents and restricted cash

  
Howmet Aerospace Inc. and subsidiariesStatement of Consolidated Cash Flows (unaudited)(U.S. dollars in millions)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended |
|   | March 31, |
|   | 2022 |  | 2021 |
| Operating activities  |  |  |  |
| Net income | $ | 131  |  |  | $ | 80  |  |
| Adjustments to reconcile net income to cash provided from (used for) operations: |  |  |  |
| Depreciation and amortization | 66  |  |  | 68  |  |
| Deferred income taxes | 28  |  |  | 10  |  |
| Restructuring and other charges | 2  |  |  | 9  |  |
| Net loss from investing activities—asset sales | 3  |  |  | 3  |  |
| Net periodic pension cost ([E](#ib58fce0f7c97431fb8cb1c861d028b02_58)) | 6  |  |  | 4  |  |
| Stock-based compensation | 11  |  |  | 6  |  |
|  |  |  |  |
| Other | 22  |  |  | 14  |  |
| Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: |  |  |  |
| Increase in receivables ([J](#ib58fce0f7c97431fb8cb1c861d028b02_70)) | (123) |  |  | (144) |  |
| (Increase) decrease in inventories | (87) |  |  | 20  |  |
| Decrease in prepaid expenses and other current assets | 5  |  |  | 23  |  |
| Increase in accounts payable, trade | 68  |  |  | 26  |  |
| Decrease in accrued expenses  | (54) |  |  | (92) |  |
| Increase in taxes, including income taxes | 6  |  |  | 12  |  |
| Pension contributions  | (11) |  |  | (29) |  |
| Increase in noncurrent assets | (1) |  |  | (2) |  |
| Decrease in noncurrent liabilities | (17) |  |  | (14) |  |
| Cash provided from (used for) operations | 55  |  |  | (6) |  |
| Financing Activities |  |  |  |
| Net change in short-term borrowings (original maturities of three months or less) | (3) |  |  | (2) |  |
|  |  |  |  |
| Payments on debt (original maturities greater than three months) ([N](#ib58fce0f7c97431fb8cb1c861d028b02_82)) | —  |  |  | (361) |  |
| Debt issuance costs ([N](#ib58fce0f7c97431fb8cb1c861d028b02_82)) | —  |  |  | (1) |  |
|  |  |  |  |
| Repurchase of common stock | (175) |  |  | —  |  |
| Proceeds from exercise of employee stock options | 7  |  |  | 8  |  |
| Dividends paid to shareholders | (9) |  |  | (1) |  |
|  |  |  |  |
| Other | (14) |  |  | (11) |  |
| Cash used for financing activities | (194) |  |  | (368) |  |
| Investing Activities |  |  |  |
| Capital expenditures ([C](#ib58fce0f7c97431fb8cb1c861d028b02_49)) | (62) |  |  | (55) |  |
| Proceeds from the sale of assets and businesses  | 1  |  |  | —  |  |
|  |  |  |  |
| Cash receipts from sold receivables ([J](#ib58fce0f7c97431fb8cb1c861d028b02_70)) | —  |  |  | 57  |  |
| Other | —  |  |  | 1  |  |
| Cash (used for) provided from investing activities | (61) |  |  | 3  |  |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | —  |  |  | (1) |  |
| Net change in cash, cash equivalents and restricted cash  | (200) |  |  | (372) |  |
| Cash, cash equivalents and restricted cash at beginning of period  | 722  |  |  | 1,611  |  |
| Cash, cash equivalents and restricted cash at end of period | $ | 522  |  |  | $ | 1,239  |  |
|  |  |  |  |

The accompanying notes are an integral part of the consolidated financial statements.6
