Restructuring and Other Charges

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring and other charges were comprised of the following:


For the year ended December 31,	2024		2023		2022
Layoff costs	$	10	$	3	$	—
Net reversals of previously recorded layoff reserves	(3)		(1)		(1)
Pension and other post-retirement benefits - net settlements (G)	—		5		58
Non-cash asset impairments and accelerated depreciation	2		14		1
Net losses (gains) related to divestitures of assets and businesses (T)	12		(1)		(8)
Other	—		3		6
Total restructuring and other charges	$	21	$	23	$	56

Layoff costs were recorded based on approved, detailed action plans submitted by the operating locations that specified positions to be eliminated, benefits to be paid under existing severance plans, union contracts, or statutory requirements and the expected timetable for completion of the plans.

2024 Actions. In 2024, Howmet recorded Restructuring and other charges of $21, which were primarily due to a net loss on the sale of a small U.K. manufacturing facility in Engineered Structures of $13, a $10 charge for layoff costs, including the separation of 431 employees (283 in Fastening Systems, 111 in Engineered Structures and 37 in Forged Wheels), and accelerated depreciation, of $2, partially offset by the reversal of $3 for layoff reserves in Engineered Structures related to prior periods and a gain on the sale of assets at a small U.K. manufacturing facility in Engine Products of $1.

As of December 31, 2024, 355 employees of the 431 employees were separated. The remaining separations for the 2024 restructuring programs are expected to be completed in 2025.

2023 Actions. In 2023, Howmet recorded Restructuring and other charges of $23, which included a $12 charge for impairment of assets primarily related to decommissioned fixed assets in Engineered Structures; a $5 charge for U.S. and Canadian pension plans’ settlement accounting; a $3 charge for layoff costs, including the separation of 63 employees in Engineered Structures; a $3 charge for various other exit costs primarily for the closures of small manufacturing facilities and a $2 charge for accelerated depreciation primarily related to the closure of a small Engineered Structures facility in the U.K. These charges were partially offset by a gain of $1 on the sale of assets at a U.S. Engineered Structures facility and a benefit of $1 related to the reversal of layoff reserves related to prior periods.

As of December 31, 2024, actions related to the 2023 restructuring programs were complete.

2022 Actions. In 2022, Howmet recorded Restructuring and other charges of $56, which included a $58 charge for U.S. and U.K. pension plans’ settlement accounting; a $6 charge for various other exit costs; and a $1 charge for accelerated depreciation primarily related to the closure of small U.S. manufacturing facilities in Engineered Structures. These charges were partially offset by a gain of $8 on the sale of assets at a small U.S. manufacturing facility in Engine Products and a benefit of $1 related to the reversal of a number of layoff reserves related to prior periods.

As of December 31, 2024, actions related to the 2022 restructuring programs were complete.

Activity and reserve balances for restructuring charges were as follows:


	Layoff costs		Other exit costs		Total
Reserve balances at December 31, 2021	$	17	$	2	$	19
2022 Activity
Cash payments	(9)		(7)		(16)
Restructuring and other charges	56		—		56
Other(1)	(58)		7		(51)
Reserve balances at December 31, 2022	$	6	$	2	$	8
2023 Activity
Cash payments	$	(3)	$	(3)	$	(6)
Restructuring and other charges	7		16		23
Other(2)	(5)		(13)		(18)
Reserve balances at December 31, 2023	$	5	$	2	$	7
2024 Activity
Cash payments	$	(8)	$	(2)	$	(10)
Restructuring and other charges	7		14		21
Other(3)	—		(14)		(14)
Reserve balances at December 31, 2024	$	4	$	—	$	4

(1)In 2022, other for layoff costs included $58 in settlement accounting charges related to U.S. and U.K. pension plans; while other for other exit costs included a gain of $8 on the sale of assets, which was offset by a $1 charge for accelerated depreciation.

(2)In 2023, other for layoff costs included $5 in settlement accounting charges related to U.S. and Canadian pension plans; while other for other exit costs included charges of $12 related to the impairment of assets and a $2 charge for accelerated depreciation which was offset by a gain of $1 on the sale of assets.

(3)In 2024, other for other exit costs included a net loss of $13 on the sale of a small U.K. manufacturing facility and a charge of $2 for accelerated depreciation, partially offset by a gain on the sale of assets at a small U.K. manufacturing facility in Engine Products of $1.

The remaining reserves as of December 31, 2024 are expected to be paid in cash during 2025.