Income Taxes (Tables)

12 Months Ended

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