Income Taxes (Tables)

12 Months Ended

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