v3.25.0.1
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 31,202420232022
United States$901 $538 $287 
Foreign482 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 31,202420232022
Current:
Federal(1)
$70 $5 $3 
Foreign98 94 53 
State and local4 2 — 
 172 101 56 
Deferred:
Federal43 92 71 
Foreign17 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 31,202420232022
U.S. federal statutory rate21.0 %21.0 %21.0 %
Foreign tax rate differential0.7 (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 effect1.0 0.7 0.5 
Non-deductible officer compensation0.7 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)
Other0.5 (0.5)(0.6)
Effective tax rate16.5 %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:
 20242023
December 31,Deferred
tax
assets		Deferred
tax
liabilities		Deferred
tax
assets		Deferred
tax
liabilities
Depreciation$8 $529 $8 $510 
R&D capitalization73 — 24 — 
Employee benefits232 9 240 4 
Loss provisions11 2 28 1 
Deferred income/expense46 293 32 1,210 
Interest6 — 32 — 
Tax loss carryforwards1,941 — 2,905 — 
Tax credit carryforwards110 — 216 — 
Other5 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 carryforwards94 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 31,202420232022
Balance at beginning of year$1,821 $1,965 $2,279 
Increase to allowance20 21 40 
Release of allowance(127)(198)(154)
Acquisitions, divestitures and liquidations75 (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 31,202420232022
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