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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of Income from Continuing Operations Before Income Taxes | The components of income before income taxes were as follows:
For the year ended December 31, | 2023 |  | 2022 |  | 2021
United States | $ | 538 |  |  | $ | 287 |  |  | $ | 28 |
Foreign | 437 |  |  | 319 |  |  | 296 |
Total | $ | 975 |  |  | $ | 606 |  |  | $ | 324 |
Schedule of Provision for Income Taxes on Income from Continuing Operations | The provision for income taxes consisted of the following:
For the year ended December 31, | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal(1) | $ | 5 |  |  | $ | 3 |  |  | $ | (9) |
Foreign | 94 |  |  | 53 |  |  | 39 |
State and local | 2 |  |  | — |  |  | (2) |
| 101 |  |  | 56 |  |  | 28 |
Deferred: |  |  |  |  |
Federal | 92 |  |  | 71 |  |  | 22 |
Foreign | 16 |  |  | 5 |  |  | 11 |
State and local | 1 |  |  | 5 |  |  | 5 |
| 109 |  |  | 81 |  |  | 38 |
Total | $ | 210 |  |  | $ | 137 |  |  | $ | 66 |
(1)Includes U.S. taxes related to foreign income.
Schedule of Reconciliation of U.S. Federal Statutory Rate to Arconic's Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to Howmet’s effective tax rate was as follows (the effective tax rate for 2023, 2022, and 2021 was a provision on income):
For the year ended December 31, | 2023 |  | 2022 |  | 2021
U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign tax rate differential | (0.1) |  |  | 0.1 |  |  | (0.7) |
U.S. and residual tax on foreign earnings(1) | 0.6 |  |  | 1.2 |  |  | 6.5 |
U.S. state and local taxes, net of federal income tax effect | 0.7 |  |  | 0.5 |  |  | 0.8 |
Non-deductible officer compensation | 0.7 |  |  | 1.2 |  |  | 1.6 |
Statutory tax rate and law changes | (0.3) |  |  | 0.1 |  |  | 1.0 |
Tax holidays | (0.4) |  |  | (0.5) |  |  | (0.4) |
Tax credits(2) | (0.7) |  |  | (0.9) |  |  | (10.4) |
Changes in valuation allowances | (1.1) |  |  | 1.4 |  |  | 4.9 |
Changes in uncertain tax positions(3) | 2.1 |  |  | — |  |  | — |
Excess benefit for stock compensation | (0.8) |  |  | (0.8) |  |  | (0.3) |
Prior year tax adjustments | — |  |  | (0.1) |  |  | (3.7) |
Other | (0.2) |  |  | (0.6) |  |  | 0.1 |
Effective tax rate | 21.5 | % |  | 22.6 | % |  | 20.4 | %
(1)It is Howmet’s policy to treat taxes due from future inclusions in U.S. taxable income related to GILTI as a current period expense when incurred. (2)In 2021, a $32 benefit for income tax credits related to development incentives in Hungary was recognized. (3)In 2023, the Company recorded an income tax reserve of $21 related to an uncertain French tax position.
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of net deferred tax assets and liabilities were as follows:
| 2023 |  | 2022
December 31, | Deferred tax assets |  | Deferred tax liabilities |  | Deferred tax assets |  | Deferred tax liabilities
Depreciation | $ | 8 |  |  | $ | 486 |  |  | $ | 11 |  |  | $ | 492 |
Employee benefits | 240 |  |  | 4 |  |  | 232 |  |  | 1 |
Loss provisions | 28 |  |  | 1 |  |  | 26 |  |  | 1 |
Deferred income/expense | 32 |  |  | 1,210 |  |  | 62 |  |  | 1,161 |
Interest | 32 |  |  | — |  |  | 99 |  |  | — |
Tax loss carryforwards | 2,905 |  |  | — |  |  | 2,955 |  |  | — |
Tax credit carryforwards | 216 |  |  | — |  |  | 268 |  |  | — |
Other | 10 |  |  | 4 |  |  | 6 |  |  | 6 |
| $ | 3,471 |  |  | $ | 1,705 |  |  | $ | 3,659 |  |  | $ | 1,661 |
Valuation allowance | (1,821) |  |  | — |  |  | (1,965) |  |  | — |
Total | $ | 1,650 |  |  | $ | 1,705 |  |  | $ | 1,694 |  |  | $ | 1,661 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above:
December 31, 2023 | Expires within 10 years |  | Expires within 11-20 years |  | No Expiration(1) |  | Other(2) |  | Total
Tax loss carryforwards | $ | 330 |  |  | $ | 533 |  |  | $ | 2,042 |  |  | $ | — |  |  | $ | 2,905 |
Tax credit carryforwards | 159 |  |  | 45 |  |  | 12 |  |  | — |  |  | 216 |
Other(3) | — |  |  | — |  |  | 314 |  |  | 36 |  |  | 350 |
Valuation allowance | (450) |  |  | (234) |  |  | (1,131) |  |  | (6) |  |  | (1,821) |
Total | $ | 39 |  |  | $ | 344 |  |  | $ | 1,237 |  |  | $ | 30 |  |  | $ | 1,650 |
(1)Deferred tax assets with no expiration may still have annual limitations on utilization. (2)Other represents deferred tax assets whose expiration is dependent upon the reversal of the underlying temporary difference. (3)A substantial amount of Other deferred tax assets relates to employee benefits that will become deductible for tax purposes in jurisdictions with unlimited expiration over an extended period of time as contributions are made to employee benefit plans and payments are made to retirees.
Schedule of Changes in Valuation Allowance | The following table details the changes in the valuation allowance:
December 31, | 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 1,965 |  |  | $ | 2,279 |  |  | $ | 2,307 |
Increase to allowance | 21 |  |  | 40 |  |  | 113 |
Release of allowance | (198) |  |  | (154) |  |  | (94) |
Acquisitions, divestitures and liquidations | (16) |  |  | — |  |  | — |
Tax apportionment, tax rate and tax law changes | (11) |  |  | (110) |  |  | 63 |
Foreign currency translation | 60 |  |  | (90) |  |  | (110) |
Balance at end of year | $ | 1,821 |  |  | $ | 1,965 |  |  | $ | 2,279 |
Schedule of Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows:
December 31, | 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 2 |  |  | $ | 2 |  |  | $ | 2 |
Additions for tax positions of the current year | 1 |  |  | — |  |  | — |
Additions for tax positions of prior years | 13 |  |  | — |  |  | — |
Balance at end of year | $ | 16 |  |  | $ | 2 |  |  | $ | 2 |

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