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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
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, | 2024 |  | 2023 |  | 2022
United States | $ | 901 |  |  | $ | 538 |  |  | $ | 287 |
Foreign | 482 |  |  | 437 |  |  | 319 |
Total | $ | 1,383 |  |  | $ | 975 |  |  | $ | 606 |
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, | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal(1) | $ | 70 |  |  | $ | 5 |  |  | $ | 3 |
Foreign | 98 |  |  | 94 |  |  | 53 |
State and local | 4 |  |  | 2 |  |  | — |
| 172 |  |  | 101 |  |  | 56 |
Deferred: |  |  |  |  |
Federal | 43 |  |  | 92 |  |  | 71 |
Foreign | 17 |  |  | 16 |  |  | 5 |
State and local | (4) |  |  | 1 |  |  | 5 |
| 56 |  |  | 109 |  |  | 81 |
Total | $ | 228 |  |  | $ | 210 |  |  | $ | 137 |
(1)Federal 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 2024, 2023, and 2022 was a provision on income):
For the year ended December 31, | 2024 |  | 2023 |  | 2022
U.S. federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign tax rate differential | 0.7 |  |  | (0.1) |  |  | 0.1 |
U.S. and residual tax on foreign earnings(1) | (0.6) |  |  | 0.6 |  |  | 1.2 |
U.S. state and local taxes, net of federal income tax effect | 1.0 |  |  | 0.7 |  |  | 0.5 |
Non-deductible officer compensation | 0.7 |  |  | 0.7 |  |  | 1.2 |
Tax holidays | (0.4) |  |  | (0.4) |  |  | (0.5) |
Tax credits(2) | (5.1) |  |  | (0.7) |  |  | (0.9) |
Changes in valuation allowances | (0.6) |  |  | (1.1) |  |  | 1.4 |
Changes in uncertain tax positions(3) | — |  |  | 2.1 |  |  | — |
Excess benefit for stock compensation | (0.7) |  |  | (0.8) |  |  | (0.8) |
Other | 0.5 |  |  | (0.5) |  |  | (0.6) |
Effective tax rate | 16.5 | % |  | 21.5 | % |  | 22.6 | %
(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 2024, the Company completed an R&D study, and as a result recorded a discrete tax benefit for $42 of prior year federal R&D credits approved under audit by the U.S. Internal Revenue Service and $8 of prior year state R&D credits. The Company also recorded a tax benefit for federal and state R&D credits earned during the current year of $13 and $3, respectively. (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:
| 2024 |  | 2023
December 31, | Deferred tax assets |  | Deferred tax liabilities |  | Deferred tax assets |  | Deferred tax liabilities
Depreciation | $ | 8 |  |  | $ | 529 |  |  | $ | 8 |  |  | $ | 510 |
R&D capitalization | 73 |  |  | — |  |  | 24 |  |  | — |
Employee benefits | 232 |  |  | 9 |  |  | 240 |  |  | 4 |
Loss provisions | 11 |  |  | 2 |  |  | 28 |  |  | 1 |
Deferred income/expense | 46 |  |  | 293 |  |  | 32 |  |  | 1,210 |
Interest | 6 |  |  | — |  |  | 32 |  |  | — |
Tax loss carryforwards | 1,941 |  |  | — |  |  | 2,905 |  |  | — |
Tax credit carryforwards | 110 |  |  | — |  |  | 216 |  |  | — |
Other | 5 |  |  | 8 |  |  | 10 |  |  | 4 |
| $ | 2,432 |  |  | $ | 841 |  |  | $ | 3,495 |  |  | $ | 1,729 |
Valuation allowance | (1,705) |  |  | — |  |  | (1,821) |  |  | — |
Total | $ | 727 |  |  | $ | 841 |  |  | $ | 1,674 |  |  | $ | 1,729 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above:
December 31, 2024 | Expires within 10 years |  | Expires within 11-20 years |  | No Expiration(1) |  | Other(2) |  | Total
Tax loss carryforwards | $ | 427 |  |  | $ | 393 |  |  | $ | 1,121 |  |  | $ | — |  |  | $ | 1,941 |
Tax credit carryforwards | 94 |  |  | 7 |  |  | 9 |  |  | — |  |  | 110 |
Other(3) | — |  |  | — |  |  | 345 |  |  | 36 |  |  | 381 |
Valuation allowance | (481) |  |  | (324) |  |  | (897) |  |  | (3) |  |  | (1,705) |
Total | $ | 40 |  |  | $ | 76 |  |  | $ | 578 |  |  | $ | 33 |  |  | $ | 727 |
(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, | 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 1,821 |  |  | $ | 1,965 |  |  | $ | 2,279 |
Increase to allowance | 20 |  |  | 21 |  |  | 40 |
Release of allowance | (127) |  |  | (198) |  |  | (154) |
Acquisitions, divestitures and liquidations | 75 |  |  | (16) |  |  | — |
Tax apportionment, tax rate and tax law changes | (2) |  |  | (11) |  |  | (110) |
Foreign currency translation | (82) |  |  | 60 |  |  | (90) |
Balance at end of year | $ | 1,705 |  |  | $ | 1,821 |  |  | $ | 1,965 |
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, | 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 16 |  |  | $ | 2 |  |  | $ | 2 |
Additions for tax positions of the current year | — |  |  | 1 |  |  | — |
Additions for tax positions of prior years | — |  |  | 13 |  |  | — |
Settlements with tax authorities | (14) |  |  | — |  |  | — |
Foreign currency translation | (1) |  |  | — |  |  | — |
Balance at end of year | $ | 1 |  |  | $ | 16 |  |  | $ | 2 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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