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Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment and Geographic Area Information Segment and Geographic Area Information
Howmet is a global leader in lightweight metals engineering and manufacturing. Howmet’s innovative, multi-material products, which include nickel, titanium, aluminum, and cobalt, are used worldwide in the aerospace (commercial and defense), commercial transportation, and industrial and other end markets. Segment performance under Howmet’s management reporting system is evaluated based on a number of factors; however, the primary measure of performance is Segment operating profit. Howmet’s 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 may not be comparable to similarly titled measures of other companies. Differences between segment totals and consolidated Howmet are in Corporate.
Following the Arconic Inc. Separation Transaction, Howmet’s operations consist of four worldwide reportable segments as follows:
Engine Products
Engine Products produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and industrial gas turbines. Engine Products produces rotating parts as well as structural parts.
Fastening Systems
Fastening Systems produces aerospace fastening systems, as well as commercial transportation fasteners. The business’s high-tech, multi-material fastening systems are found nose to tail on aircraft and aero engines. The business’s products are also critical components of automobiles, commercial transportation vehicles, and construction and industrial equipment.
Engineered Structures
Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, extrusions forming and machining services for airframe, wing, aero-engine, and landing gear components. Engineered Structures also produces aluminum forgings, nickel forgings, and aluminum machined components and assemblies for aerospace and defense applications.
Forged Wheels
Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation markets.
Goodwill     
The Company had $4,102 of Goodwill at December 31, 2020, and the Company reviews it for impairment annually in the fourth quarter, or more frequently, if indicators exist or if a decision is made to sell or realign a business.
On January 1, 2020, management transferred the Savannah business from the Engine Products segment to the Engineered Structures segment, based on synergies with forgings technologies and manufacturing capabilities. As a result of the reorganization, goodwill of $17 was reallocated from Engine Products to Engineered Structures, and these reporting units were evaluated for impairment during the first quarter of 2020. The estimated fair value of each of these reporting units substantially exceeded their carrying value; thus, there was no goodwill impairment at the date the business was transferred.
During the first quarter of 2020, Howmet's market capitalization declined significantly compared to the fourth quarter of 2019. Over the same period, the equity value of our peer group companies, and the overall U.S. stock market also declined significantly amid market volatility. In addition, as a result of the COVID-19 pandemic and measures designed to contain the spread, global sales to customers in the aerospace and commercial transportation industries impacted by COVID-19 have been and are expected to be negatively impacted as a result of disruption in demand. As a result of these macroeconomic factors, we performed a qualitative impairment test to evaluate whether it is more likely than not that the fair value of any of our reporting units is less than its carrying value. As a result of this assessment, the Company performed a quantitative impairment test in the first quarter for the Engineered Structures reporting unit and concluded that though the margin between the fair value of the reporting unit and carrying value had declined from approximately 60% to approximately 15%, it was not impaired. Consistent with prior practice, a discounted cash flow model was used to estimate the current fair value of the reporting unit. The significant assumptions and estimates utilized to determine fair value were developed utilizing current market and forecast information reflecting the disruption in demand that has and is expected to negatively impact the Company’s sales globally in the aerospace industry. If our actual results or external market factors decline significantly from management’s estimates, future goodwill impairment charges may be necessary and could be material. During the second and third quarters of 2020, there were no indicators of impairment identified for the Engineered Structures reporting unit.
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 Howmet’s consolidated totals for line items not reconciled are in Corporate.
The operating results and assets of the Company's reportable segments were as follows:
Year ended   Engine Products   Fastening Systems   Engineered Structures   Forged WheelsTotal
Segment
2020
Sales:
Third-party sales$2,406 $1,245 $927 $679 $5,257 
Inter-segment sales5 — 7 — 12 
Total sales$2,411 $1,245 $934 $679 $5,269 
Profit and loss:
Segment operating profit$417 $247 $73 $153 $890 
Restructuring and other charges36 39 28 3 106 
Provision for depreciation and amortization123 48 52 39 262 
Other:
Capital expenditures$77 $39 $19 $23 $158 
Total Assets$4,756 $2,707 $1,444 $628 $9,535 
2019
Sales:
Third-party sales$3,320 $1,561 $1,255 $969 $7,105 
Inter-segment sales11 — 13 — 24 
Total sales$3,331 $1,561 $1,268 $969 $7,129 
Profit and loss:
Segment operating profit$621 $396 $120 $253 $1,390 
Restructuring and other charges297 6 199 4 506 
Provision for depreciation and amortization131 48 58 32 269 
Other:
Capital expenditures$211 $36 $27 $70 $344 
Total Assets$5,445 $2,810 $1,151 $629 $10,035 
2018
Sales:
Third-party sales$3,092 $1,531 $1,209 $966 $6,798 
Inter-segment sales16 — 19 — 35 
Total sales$3,108 $1,531 $1,228 $966 $6,833 
Profit and loss:
Segment operating profit$464 $357 $64 $220 $1,105 
Restructuring and other charges47 17 (5)— 59 
Provision for depreciation and amortization141 48 69 31 289 
Other:
Capital expenditures$217 $47 $53 $90 $407 
The following table reconciles Total segment capital expenditures, which are presented on an accrual basis, with Capital expenditures as presented on the statement of cash flows. Differences between segment and consolidated totals are in Corporate and discontinued operations, including the impact of changes in accrued capital expenditures during the period.
For the year ended December 31,202020192018
Total segment capital expenditures$158 $344 $407 
Corporate and discontinued operations109 297 361 
Capital expenditures$267 $641 $768 

The following tables reconcile certain segment information to consolidated totals:
For the year ended December 31,202020192018
Sales:
Total segment sales$5,269 $7,129 $6,833 
Elimination of inter-segment sales(12)(24)(35)
Corporate2 (7)(20)
Consolidated sales$5,259 $7,098 $6,778 

For the year ended December 31,202020192018
Total segment operating profit$890 $1,390 $1,105 
Unallocated amounts:
Restructuring and other charges(182)(582)(163)
Corporate expense(82)(229)(167)
Consolidated operating income$626 $579 $775 
Interest expense(381)(338)(377)
Other (expense) income, net(74)(31)30 
Income from continuing operations before income taxes$171 $210 $428 

December 31,20202019
Assets:
Total segment assets$9,535 $10,035 
Unallocated amounts:
Cash and cash equivalents1,610 1,577 
Deferred income taxes272 209 
Corporate fixed assets, net140 135 
Fair value of derivative contracts5 6 
Discontinued operations— 5,341 
Accounts receivable securitization(241)(61)
Other122 320 
Consolidated assets$11,443 $17,562 
Segment assets include third party receivables while the accounts receivable securitization item includes the impact of sold receivables under the Company's Accounts Receivable securitization programs. (See Note M)
Geographic information for sales was as follows (based upon the destination of the sale):
For the year ended December 31,202020192018
Sales:
United States$2,782 $3,534 $3,265 
Japan388 480 462 
France327 546 523 
Germany309 385 385 
United Kingdom231 420 438 
Mexico185 277 252 
Italy181 195 196 
Canada119 179 155 
Poland76 131 112 
China75 168 165 
Other586 783 825 
 $5,259 $7,098 $6,778 

Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets):
December 31,20202019
Long-lived assets:
United States$1,967 $2,025 
Hungary213 202 
France150 141 
United Kingdom109 101 
Germany78 82 
Mexico62 57 
China59 61 
Canada44 43 
Japan25 25 
Other16 17 
 $2,723 $2,754 
The following table disaggregates segment revenue by major end market served. Differences between total segment and consolidated totals are in Corporate.
   Engine Products   Fastening Systems   Engineered Structures   Forged WheelsTotal
Segment
Year ended December 31, 2020
Aerospace - Commercial$1,247 $808 $542 $— $2,597 
Aerospace - Defense 557 156 303 — 1,016 
Commercial Transportation— 155 — 679 834 
Industrial and Other602 126 82 — 810 
Total end-market revenue$2,406 $1,245 $927 $679 $5,257 
Year ended December 31, 2019
Aerospace - Commercial$2,229 $1,060 $897 $— $4,186 
Aerospace - Defense 475 158 256 — 889 
Commercial Transportation20 227 — 970 1,217 
Industrial and Other596 116 102 (1)813 
Total end-market revenue$3,320 $1,561 $1,255 $969 $7,105 
Year ended December 31, 2018
Aerospace - Commercial$2,056 $1,069 $871 $— $3,996 
Aerospace - Defense 373 120 233 — 726 
Commercial Transportation48 229 — 969 1,246 
Industrial and Other615 113 105 (3)830 
Total end-market revenue$3,092 $1,531 $1,209 $966 $6,798 

The Company derived 69%, 71% and 70% of its revenue for the year ended December 31, 2020, 2019 and 2018, respectively, from aerospace end markets.
General Electric Company represented approximately 11% of the Company’s third-party sales for the year ended December 31, 2020, primarily from