Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-3610 | ||
Entity Registrant Name | HOWMET AEROSPACE INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 25-0317820 | ||
Entity Address, Address Line One | 201 Isabella Street, Suite 200 | ||
Entity Address, City or Town | Pittsburgh | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15212-5872 | ||
City Area Code | 412 | ||
Local Phone Number | 553-1940 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 15 | ||
Entity Common Stock, Shares Outstanding | 418,904,876 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates by reference certain information from the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A (Proxy Statement). | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000004281 | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | HWM | ||
Security Exchange Name | NYSE | ||
Preferred stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | $3.75 Cumulative Preferred Stock, par value $100.00 per share | ||
Trading Symbol | HWM PR | ||
Security Exchange Name | NYSEAMER |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Statement of Consolidated Opera
Statement of Consolidated Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 4,972 | $ 5,259 | $ 7,098 |
Cost of goods sold (exclusive of expenses below) | 3,596 | 3,878 | 5,214 |
Selling, general administrative, and other expenses | 251 | 277 | 400 |
Research and development expenses | 17 | 17 | 28 |
Provision for depreciation and amortization | 270 | 279 | 295 |
Restructuring and other charges | 90 | 182 | 582 |
Operating income | 748 | 626 | 579 |
Loss on debt redemption | 146 | 64 | 0 |
Amount charged to interest expense, net | 259 | 317 | 338 |
Other expense, net | 19 | 74 | 31 |
Income before income taxes | 324 | 171 | 210 |
Provision (benefit) for income taxes | 66 | (40) | 84 |
Net income from continuing operations attributable to common shareholders | 258 | 211 | 126 |
Income from discontinued operations after income taxes | 0 | 50 | 344 |
Net income | 258 | 261 | 470 |
Amounts Attributable to Howmet Aerospace Inc. Common Shareholders: | |||
Net income | $ 256 | $ 259 | $ 477 |
Earnings per share - basic | |||
Continuing operations (in usd per share) | $ 0.60 | $ 0.48 | $ 0.28 |
Discontinued operations (in usd per share) | 0 | 0.11 | 0.77 |
Earnings per share - diluted | |||
Continuing operations (in usd per share) | 0.59 | 0.48 | 0.27 |
Discontinued operations (in usd per share) | $ 0 | $ 0.11 | $ 0.76 |
Average Shares Outstanding: | |||
Average shares outstanding - basic (in shares) | 430 | 435 | 446 |
Average shares outstanding - diluted (in shares) | 435 | 439 | 463 |
Statement of Consolidated Compr
Statement of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 258 | $ 261 | $ 470 |
Other comprehensive income (loss), net of tax | |||
Change in unrecognized net actuarial loss and prior service cost (benefit) related to pension and other postretirement benefits | 181 | (46) | (388) |
Foreign currency translation adjustments | (96) | 58 | (13) |
Net change in unrealized gains on debt securities | 0 | 0 | 3 |
Net change in unrecognized (losses) gains on cash flow hedges | (5) | 4 | (3) |
Total Other comprehensive income (loss), net of tax | 80 | 16 | (401) |
Comprehensive income | $ 338 | $ 277 | $ 69 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 720 | $ 1,610 |
Receivables from customers, less allowances of $— in 2021 and $1 in 2020 | 367 | 328 |
Other receivables | 53 | 29 |
Inventories | 1,402 | 1,488 |
Prepaid expenses and other current assets | 195 | 217 |
Total current assets | 2,737 | 3,672 |
Properties, plants, and equipment, net | 2,467 | 2,592 |
Goodwill | 4,067 | 4,102 |
Deferred income taxes | 184 | 272 |
Intangibles, net | 549 | 571 |
Other noncurrent assets | 215 | 234 |
Total assets | 10,219 | 11,443 |
Current liabilities: | ||
Accounts payable, trade | 732 | 599 |
Accrued compensation and retirement costs | 198 | 205 |
Taxes, including income taxes | 61 | 102 |
Accrued interest payable | 74 | 89 |
Other current liabilities | 183 | 289 |
Short-term debt | 5 | 376 |
Total current liabilities | 1,253 | 1,660 |
Long-term debt, less amount due within one year | 4,227 | 4,699 |
Accrued pension benefits | 771 | 985 |
Accrued other postretirement benefits | 153 | 198 |
Other noncurrent liabilities and deferred credits | 307 | 324 |
Total liabilities | 6,711 | 7,866 |
Contingencies and commitments | ||
Howmet Aerospace Inc. shareholders’ equity: | ||
Preferred stock | 55 | 55 |
Common stock | 422 | 433 |
Additional capital | 4,291 | 4,668 |
Retained earnings | 603 | 364 |
Accumulated other comprehensive loss | (1,863) | (1,943) |
Total Howmet Aerospace Inc. shareholders’ equity | 3,508 | 3,577 |
Noncontrolling interests | 0 | 0 |
Total equity | 3,508 | 3,577 |
Total liabilities and equity | $ 10,219 | $ 11,443 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables from customers, allowance | $ 0 | $ 1 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 258 | $ 261 | $ 470 |
Adjustments to reconcile net income to cash provided from operations: | |||
Depreciation and amortization | 270 | 338 | 536 |
Deferred income taxes | 38 | 2 | (19) |
Restructuring and other charges | 90 | 164 | 620 |
Net loss from investing activities—asset sales | 9 | 8 | 7 |
Net periodic pension benefit cost | 18 | 51 | 115 |
Stock-based compensation | 41 | 45 | 60 |
Loss on debt redemption (R) | 146 | 64 | 0 |
Other | 20 | (5) | 13 |
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: | |||
Increase in receivables | (337) | (238) | (977) |
Decrease (increase) in inventories | 60 | 74 | (3) |
Decrease (increase) in prepaid expenses and other current assets | 11 | (2) | 4 |
Increase (decrease) in accounts payable, trade | 144 | (381) | (1) |
Decrease in accrued expenses | (146) | (217) | (42) |
(Decrease) increase in taxes, including income taxes | (41) | 98 | (2) |
Pension contributions | (96) | (257) | (268) |
(Increase) decrease in noncurrent assets | (13) | 39 | (7) |
Decrease in noncurrent liabilities | (23) | (35) | (45) |
Cash provided from operations | 449 | 9 | 461 |
Financing Activities | |||
Net change in short-term borrowings (original maturities of three months or less) | (9) | (15) | 2 |
Additions to debt (original maturities greater than three months) | 700 | 2,400 | 400 |
Payments on debt (original maturities greater than three months) | (1,538) | (2,043) | (806) |
Debt issuance costs | (11) | (61) | 0 |
Premiums paid on early redemption of debt | (138) | (59) | 0 |
Proceeds from exercise of employee stock options | 22 | 33 | 56 |
Dividends paid to shareholders (J) | (19) | (11) | (57) |
Repurchase of common stock | (430) | (73) | (1,150) |
Net cash transferred to Arconic Corporation at separation | 0 | (500) | 0 |
Other | (21) | (40) | (13) |
Cash used for financing activities | (1,444) | (369) | (1,568) |
Investing Activities | |||
Capital expenditures | (199) | (267) | (641) |
Proceeds from the sale of assets and businesses | 32 | 114 | 103 |
Sales of investments | 6 | 0 | 73 |
Cash receipts from sold receivables | 267 | 422 | 995 |
Other | 1 | 2 | (2) |
Cash provided from investing activities | 107 | 271 | 528 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (1) | (3) | 0 |
Net change in cash, cash equivalents and restricted cash | (889) | (92) | (579) |
Cash, cash equivalents and restricted cash at beginning of year | 1,611 | 1,703 | 2,282 |
Cash, cash equivalents and restricted cash at end of year | $ 722 | $ 1,611 | $ 1,703 |
Statement of Changes in Consoli
Statement of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Class A | Preferred stock | Common stock | Additional capital | Retained earnings (Accumulated deficit) | Retained earnings (Accumulated deficit)Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (Accumulated deficit)Preferred Class A | Accumulated other comprehensive loss | Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interests |
Beginning balance at Dec. 31, 2018 | $ 5,569 | $ 73 | $ 55 | $ 483 | $ 8,319 | $ (374) | $ 75 | $ (2,926) | $ (2) | $ 12 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 470 | 470 | ||||||||||
Other comprehensive income (loss) | (401) | (401) | ||||||||||
Cash dividends declared: | ||||||||||||
Cash dividends declared, preferred | $ (2) | $ (2) | ||||||||||
Cash dividends declared, common | (56) | (56) | ||||||||||
Repurchase and retirement of common stock | (1,150) | (55) | (1,095) | |||||||||
Stock-based compensation | 57 | 57 | ||||||||||
Common stock issued: compensation plans | 41 | 5 | 36 | |||||||||
Other | 4 | 2 | 2 | |||||||||
Ending balance at Dec. 31, 2019 | 4,605 | 55 | 433 | 7,319 | 113 | (3,329) | 14 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 261 | 261 | ||||||||||
Other comprehensive income (loss) | 16 | 16 | ||||||||||
Cash dividends declared: | ||||||||||||
Cash dividends declared, preferred | (2) | (2) | ||||||||||
Cash dividends declared, common | (8) | (8) | ||||||||||
Repurchase and retirement of common stock | (73) | (3) | (70) | |||||||||
Stock-based compensation | 45 | 45 | ||||||||||
Common stock issued: compensation plans | (6) | 3 | (9) | |||||||||
Distributions to Arconic Corporation | (1,261) | (2,617) | 1,370 | (14) | ||||||||
Ending balance at Dec. 31, 2020 | 3,577 | 55 | 433 | 4,668 | 364 | (1,943) | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 258 | 258 | ||||||||||
Other comprehensive income (loss) | 80 | 80 | ||||||||||
Cash dividends declared: | ||||||||||||
Cash dividends declared, preferred | $ (2) | $ (2) | ||||||||||
Cash dividends declared, common | (17) | (17) | ||||||||||
Repurchase and retirement of common stock | (430) | (13) | (417) | |||||||||
Stock-based compensation | 40 | 40 | ||||||||||
Common stock issued: compensation plans | 2 | 2 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 3,508 | $ 55 | $ 422 | $ 4,291 | $ 603 | $ (1,863) | $ 0 |
Statement of Changes in Conso_2
Statement of Changes in Consolidated Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common stock, dividends declared per share (usd per share) | $ 0.04 | $ 0.02 | $ 0.12 |
Preferred Class A | |||
Preferred, dividends per share (usd per share) | $ 3.75 | $ 3.75 | $ 3.75 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation. The Consolidated Financial Statements of Howmet Aerospace Inc. (formerly known as Arconic Inc.) and subsidiaries (“Howmet” or the “Company” or “we”) are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and require management to make certain judgments, estimates, and assumptions. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations relating to the impact of the global COVID-19 pandemic. The impact of COVID-19 is rapidly changing and of unknown duration and macroeconomic impact and as a result, these considerations remain highly uncertain. We have made our best estimates using all relevant information available at the time, but it is possible that our estimates will differ from our actual results and affect the Consolidated Financial Statements in future periods and potentially require adverse adjustments to the recoverability of goodwill, intangible and long-lived assets, the realizability of deferred tax assets, and other judgments and estimations and assumptions. These may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation. The separation of Arconic Inc. into two standalone, publicly-traded companies, Howmet Aerospace Inc. and Arconic Corporation, (the “Arconic Inc. Separation Transaction”) occurred on April 1, 2020. The Engineered Products and Forgings (“EP&F”) segment remained in the existing company which was renamed Howmet Aerospace Inc. The Global Rolled Products (“GRP”) segment was the Spin Co. and was named Arconic Corporation. In the second quarter of 2020, in conjunction with the Arconic Inc. Separation Transaction, the Company realigned its operations by separating the former EP&F segment into four new segments: Engine Products, Fastening Systems, Engineered Structures and Forged Wheels. See Note D for further details. The financial results of Arconic Corporation for all periods prior to the Arconic Inc. Separation Transaction have been retrospectively reflected in the Statement of Consolidated Operations as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The cash flows, comprehensive income, and equity related to Arconic Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows, Statement of Consolidated Comprehensive Income, and Statement of Changes in Consolidated Equity, respectively, for all periods prior to the Arconic Inc. Separation Transaction. See Note C for additional information related to the Arconic Inc. Separation Transaction and discontinued operations. The Company derived approximately 60%, 69%, and 71% of its revenue from products sold to the aerospace market for the years ended December 31, 2021, 2020, and 2019. As a result of the global COVID-19 pandemic and its impact on the aerospace industry to date, the possibility exists that there could be a sustained impact to our operations and financial results. Since the start of the pandemic, certain original equipment manufacturer (“OEM”) customers have reduced production or suspended manufacturing operations in North America and Europe on a temporary basis. While the pandemic resulted in the temporary closure of a small number of the Company's manufacturing facilities during 2020, all of our manufacturing facilities are currently operating. Since the duration of the pandemic is uncertain, management has taken a series of actions to address the financial impact, including fixed and variable cost reductions, such as headcount reductions in certain segments, and reducing the level of capital expenditures to preserve cash and maintain liquidity. Principles of Consolidation. The Consolidated Financial Statements include the accounts of Howmet Aerospace Inc. and companies in which Howmet Aerospace Inc. has a controlling interest. Intercompany transactions have been eliminated. Investments in affiliates in which Howmet Aerospace Inc. cannot exercise significant influence that do not have readily determinable fair values are accounted for at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Management also evaluates whether a Howmet Aerospace Inc. entity or interest is a variable interest entity and whether Howmet Aerospace Inc. is the primary beneficiary. Consolidation is required if both of these criteria are met. Howmet Aerospace Inc. does not have any variable interest entities requiring consolidation. Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. Inventory Valuation. Inventories are carried at the lower of cost or net realizable value with the cost of inventories determined under a combination of the first-in, first-out (“FIFO”), last-in, first-out (“LIFO”), and average-cost methods. See Note N for further details. Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Depreciation is recorded principally on the straight-line method at rates based on the estimated useful lives of the assets. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery and equipment Engine Products 30 17 Fastening Systems 27 17 Engineered Structures 28 19 Forged Wheels 29 18 Gains or losses from the sale of asset groups or properties are generally recorded in Restructuring and other charges while the sale of individual assets are recorded in Other expense, net (see policy below for assets classified as held for sale and discontinued operations). Repairs and maintenance are charged to expense as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is measured as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (“DCF”) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of the assets also require significant judgments. See Note O for further details. Goodwill. Goodwill is not amortized; instead, it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or realign a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Howmet has four reporting units composed of the Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels segments. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the quantitative impairment test (described below), otherwise no further analysis is required. The qualitative evaluation is an assessment of factors, including reporting unit-specific operating results as well as industry, market, and general economic conditions. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Howmet determines annually, based on facts and circumstances, which of its reporting units will be subject to the qualitative assessment. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (“WACC”) between the current and prior years for each reporting unit. For those reporting units where a qualitative assessment is either not performed or for which the conclusion is that an impairment is more likely than not, a quantitative impairment test will be performed. Howmet's policy is that a quantitative impairment test be performed for each reporting unit at least once during every three-year period. Other Intangible Assets. Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other intangible assets Engine Products 9 34 Fastening Systems 6 23 Engineered Structures 4 10 Forged Wheels 4 24 Leases. The Company determines whether a contract contains a lease at inception. The Company leases land and buildings, plant equipment, vehicles, and computer equipment which have been classified as operating leases. Certain real estate leases include one or more options to renew; the exercise of lease renewal options is at the Company’s discretion. The Company includes renewal option periods in the lease term when it is determined that the options are reasonably certain to be exercised. Certain of Howmet's real estate lease agreements include rental payments that either have fixed contractual increases over time or adjust periodically for inflation. Certain of the Company's lease agreements include variable lease payments. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and is recorded as lease cost in the period incurred. The Company also rents or subleases certain real estate to third parties, which is not material to the consolidated financial statements. Operating lease right-of-use assets and lease liabilities with an initial term greater than 12 months are recorded on the balance sheet at the present value of the future minimum lease payments over the lease term at the lease commencement date and are recognized as lease expense on a straight-line basis over the lease term. The Company uses an incremental collateralized borrowing rate based on the information available at the lease commencement date in determining the present value of future payments, as most of its leases do not provide an implicit rate. The operating lease right-of-use assets also include any lease prepayments made and are reduced by lease incentives and accrued exit costs. Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future sales, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery. Claims for recovery are recognized when probable and as agreements are reached with third parties. The estimates also include costs related to other potentially responsible parties to the extent that Howmet has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. Litigation and Contingent Liabilities. From time to time, we are involved in various lawsuits, claims, investigations, and proceedings. These matters may include speculative claims for substantial or indeterminate amounts of damages. Management determines the likelihood of an unfavorable outcome based on many factors, such as the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters, among others. If an unfavorable outcome is deemed probable and the amount of the potential loss can be estimated, the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed probable but the loss is not reasonably estimable, or if an unfavorable outcome is deemed reasonably possible, then the matter is disclosed but no liability is recorded. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. Revenue Recognition. The Company's contracts with customers are comprised of acknowledged purchase orders incorporating the Company’s standard terms and conditions, or for larger customers, may also generally include terms under negotiated multi-year agreements. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. The Company produces fastening systems; seamless rolled rings; investment castings, including airfoils; extruded, machined and formed aircraft parts; and forged aluminum commercial vehicle wheels. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). An invoice for payment is issued at time of shipment. Our segments set commercial terms on which Howmet sells products to its customers. These terms are influenced by industry custom, market conditions, product line (specialty versus commodity products), and other considerations. In certain circumstances, Howmet receives advanced payments from its customers for product to be delivered in future periods. These advanced payments are recorded as deferred revenue until the product is delivered and title and risk of loss have passed to the customer in accordance with the terms of the contract. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet. Advanced payments were $46 and $85 at December 31, 2021 and 2020, respectively. Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Howmet’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Howmet’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. It is Howmet’s policy to apply a tax law ordering approach when considering the need for a valuation allowance on net operating losses expected to offset Global Intangible Low-Taxed Income (“GILTI”) income inclusions. Under this approach, reductions in cash tax savings are not considered as part of the valuation allowance assessment. Instead, future GILTI inclusions are considered a source of taxable income that support the realizability of deferred tax assets. 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. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. Stock-Based Compensation. Howmet recognizes compensation expense for employee equity grants using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. Forfeitures are accounted for as they occur. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. The fair value of performance awards containing a market condition is valued using a Monte Carlo valuation model. Determining the fair value at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. Foreign Currency. The local currency is the functional currency for Howmet’s significant operations outside the United States (“U.S.”), except for certain operations in Canada, the United Kingdom, and France, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Howmet’s operations is made based on the appropriate economic and management indicators. Acquisitions. Howmet’s business acquisitions are accounted for using the acquisition method. The purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. For all acquisitions, operating results are included in the Statement of Consolidated Operations from the date of the acquisition. Discontinued Operations and Assets Held for Sale. For those businesses where management has committed to a plan to divest, each business is valued at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, an impairment loss is recognized. Fair value is estimated using accepted valuation techniques such as a DCF model, valuations performed by third parties, earnings multiples, or indicative bids, when available. A number of significant estimates and assumptions are involved in the application of these techniques, including the forecasting of markets and market share, sales volumes and prices, costs and expenses, and multiple other factors. Management considers historical experience and all available information at the time the estimates are made; however, the fair value that is ultimately realized upon the divestiture of a business may differ from the estimated fair value reflected in the Consolidated Financial Statements. Depreciation and amortization expense is not recorded on assets of a business to be divested once they are classified as held for sale. Businesses to be divested are generally classified in the Consolidated Financial Statements as either discontinued operations or held for sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of discontinued operations on the Consolidated Balance Sheet and to discontinued operations on the Statement of Consolidated Operations, respectively, for all periods presented. The gains or losses associated with these divested businesses are recorded in discontinued operations on the Statement of Consolidated Operations. The Statement of Consolidated Cash Flows is not required to be reclassified for discontinued operations for any period. Segment information does not include the assets or operating results of businesses classified as discontinued operations for all periods presented. These businesses are expected to be disposed of within one year. For businesses classified as held for sale that do not qualify for discontinued operations treatment, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of operations held for sale for all periods presented. The results of operations continue to be reported in continuing operations. The gains or losses associated with these divested businesses are recorded in Restructuring and other charges on the Statement of Consolidated Operations. The segment information includes the assets and operating results of businesses classified as held for sale for all periods presented. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Guidance | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Guidance | Recently Adopted and Recently Issued Accounting Guidance Recently Adopted Accounting Guidance. On January 1, 2021, the Company adopted changes issued by the Financial Accounting Standards Board (“FASB”) that were intended to simplify various aspects of accounting for income taxes by eliminating certain exceptions contained in existing guidance and amending other guidance to simplify several other income tax accounting matters. The adoption of this new guidance did not have a material impact on the Consolidated Financial Statements. On January 1, 2020, the Company adopted changes issued by the FASB related to the impairment model for expected credit losses. The new impairment model (known as the current expected credit loss (“CECL”) model) is based on expected losses rather than incurred losses. The Company recognizes as an allowance its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments and requires the measurement of expected credit losses on assets including those that have a low risk of loss. The adoption of this new guidance did not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued guidance that impacts disclosures for defined benefit pension plans and other postretirement benefit plans. These changes became effective for Howmet's annual report for the year ended December 31, 2020 which did not have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued changes to the accounting and presentation of leases. These changes required lessees to recognize a right-of-use asset and lease liability on the balance sheet, initially measured at the present value of lease payments for all operating leases with a term greater than 12 months. These changes became effective for the Company on January 1, 2019 and have been applied using the modified retrospective approach as of the date of adoption, under which leases existing at, or entered into after, January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company also elected to separate lease components from non-lease components for all classes of assets. The adoption of this new lease standard resulted in the Company recording operating lease right-of-use assets and lease liabilities of approximately $320 on the Consolidated Balance Sheet as of January 1, 2019. The adoption of the new lease standard had no impact on the Statement of Consolidated Operations or Statement of Consolidated Cash Flows. As a result of the new standard, a gain of $73 (net of tax) on a 2018 sale leaseback transaction was no longer required to be deferred and the accumulated deficit within the Consolidated Balance Sheet and Statement of Changes in Consolidated Equity were increased accordingly. In August 2017, the FASB issued guidance that made more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amended the presentation and disclosure requirements and changed how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. These changes became effective for the Company on January 1, 2019. For cash flow hedges, Howmet recorded a cumulative effect adjustment of $2 related to eliminating the separate measurement of ineffectiveness by decreasing Accumulated other comprehensive loss and increasing Retained earnings on its Consolidated Balance Sheet and Statement of Changes in Consolidated Equity. The amendments to presentation and disclosure are required prospectively. Howmet has determined that under the new accounting guidance it is able to more broadly use cash flow hedge accounting for its variable priced inventory purchases and customer sales. Recently Issued Accounting Guidance. In March 2020, the FASB issued amendments that provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management does not believe the impact of these changes will have a material impact on the Consolidated Financial Statements. |
Arconic Inc Separation Transact
Arconic Inc Separation Transaction and Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Arconic Inc Separation Transaction and Discontinued Operations | Arconic Inc. Separation Transaction and Discontinued Operations On April 1, 2020, the Company completed the separation of its business into two independent, publicly-traded companies, which was effected by the distribution (the “Distribution”) by the Company of all of the outstanding common stock of Arconic Corporation to the Company’s stockholders. Following the Arconic Inc. Separation Transaction, Arconic Corporation held the Global Rolled Products businesses (global rolled products, aluminum extrusions, and building and construction systems) previously held by the Company. The Company retained the Engineered Products and Forgings businesses (engine products, fastening systems, engineered structures, and forged wheels). In connection with the Arconic Inc. Separation Transaction , the Company entered into several agreements with Arconic Corporation , including the following: a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, certain Patent, Know-How, Trade Secret License and Trademark License Agreements, and Raw Material Supply Agreements. On February 7, 2020, Arconic Corporation completed an offering of $600 aggregate principal amount of 6.125% senior secured second-lien notes due 2028. On March 25, 2020, Arconic Corporation entered into a credit agreement which provided for a $600 aggregate principal amount seven-year senior secured first-lien loan B facility and a revolving credit facility which is guaranteed by certain of Arconic Corporation's wholly-owned domestic subsidiaries and secured on a first-priority basis by liens on substantially all assets of Arconic Corporation and subsidiary guarantors. Arconic Corporation used the proceeds to make payment to the Company to fund the transfer of certain assets to Arconic Corporation relating to the Arconic Inc. Separation Transaction and for general corporate purposes. The Company incurred debt issuance costs of $45 associated with these issuances for the first quarter of 2020 and year ended December 31, 2020. On February 1, 2020, the Company completed the sale of its rolling mill in Itapissuma, Brazil for $50 in cash, which resulted in a loss of $59, of which $53 was recognized in Restructuring and other charges within discontinued operations in the second half of 2019 and $6 in the first quarter of 2020 and year ended December 31, 2020. On March 1, 2020, the Company sold its hard alloy extrusions plant in South Korea for $62 in cash, which resulted in a gain that was recognized in Restructuring and other charges within discontinued operations in the first quarter of 2020 and year ended December 31, 2020. On October 31, 2018, the Company sold its Texarkana, Texas rolling mill and cast house, which included contingent consideration of up to $50. The contingent consideration related to the achievement of various milestones within 36 months of the transaction closing date associated with operationalizing the rolling mill equipment. In 2019, the Company received additional contingent consideration of $20 and recorded a gain. These amounts were recorded in discontinued operations in the Statement of Consolidated Operations. Discontinued Operations The results of operations of Arconic Corporation are presented as Income from discontinued operations after income taxes in the Statement of Consolidated Operations as summarized below: Year ended December 31, 2020 2019 Sales $ 1,575 $ 7,094 Cost of goods sold 1,293 6,013 Selling, general administrative, research and development and other expenses 106 346 Provision for depreciation and amortization 58 241 Restructuring and other (credits) charges (18) 38 Operating income from discontinued operations 136 456 Interest expense, net 7 — Other expense, net 41 91 Income from discontinued operations 88 365 Provision for income taxes 38 21 Income from discontinued operations after income taxes $ 50 $ 344 The following table presents purchases of properties, plants, and equipment, proceeds from the sale of businesses, and the provision for depreciation and amortization of discontinued operations related to Arconic Corporation: Year ended December 31, 2020 2019 Capital expenditures $ 72 $ 210 Proceeds from the sales of businesses $ 112 $ 20 Provision for depreciation and amortization $ 58 $ 241 On April 1, 2020, management evaluated the net assets of Arconic Corporation for potential impairment and determined that no impairment charge was required. The cash flows and equity related to Arconic Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows or Statement of Comprehensive Income for all periods presented prior to the Arconic Inc. Separation Transaction. The carrying amount of the major classes of assets and liabilities related to Arconic Corporation were classified as assets and liabilities of discontinued operations in the 2019 Consolidated Balance Sheet consisted of the following: December 31, 2019 Total assets of discontinued operations Cash and cash equivalents $ 71 Receivables from customers 385 Other receivables 135 Inventories 822 Prepaid expenses and other current assets 29 Current assets of discontinued operations 1,442 Properties, plants, and equipment, net 2,834 Goodwill 426 Intangibles, net 60 Deferred income taxes 383 Other noncurrent assets 196 Noncurrent assets of discontinued operations 3,899 Total assets of discontinued operations $ 5,341 Total liabilities of discontinued operations: Accounts payable, trade $ 1,067 Accrued compensation and retirement costs 147 Taxes, including income taxes 22 Other current liabilities 188 Current liabilities of discontinued operations 1,424 Accrued pension benefits 1,429 Accrued other postretirement benefits 514 Other noncurrent liabilities and deferred credits 315 Noncurrent liabilities of discontinued operations 2,258 Total liabilities of discontinued operations $ 3,682 |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2021 | |
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 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 the total segment and consolidated totals 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, industrial and other 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 commercial transportation vehicles, automobiles, construction and industrial equipment, and renewable energy sector. 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. The operating results and assets of the Company's reportable segments were as follows: Year ended Engine Products Fastening Systems Engineered Structures Forged Wheels Total 2021 Sales: Third-party sales $ 2,282 $ 1,044 $ 725 $ 921 $ 4,972 Inter-segment sales 4 — 6 — 10 Total sales $ 2,286 $ 1,044 $ 731 $ 921 $ 4,982 Profit and loss: Segment operating profit $ 440 $ 190 $ 54 $ 255 $ 939 Restructuring and other charges 74 — 16 — 90 Provision for depreciation and amortization 124 49 49 39 261 Other: Capital expenditures $ 74 $ 42 $ 21 $ 45 $ 182 Total Assets 4,663 2,635 1,280 684 9,262 2020 Sales: Third-party sales $ 2,406 $ 1,245 $ 927 $ 679 $ 5,257 Inter-segment sales 5 — 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 charges 36 39 28 3 106 Provision for depreciation and amortization 123 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 sales 11 — 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 charges 297 6 199 4 506 Provision for depreciation and amortization 131 48 58 32 269 Other: Capital expenditures $ 211 $ 36 $ 27 $ 70 $ 344 Total Assets 5,445 2,810 1,151 629 10,035 The following table reconciles Total segment capital expenditures, which are presented on an accrual basis, with Capital expenditures as presented on the Statement of Consolidated Cash Flows. Differences between the total 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, 2021 2020 2019 Total segment capital expenditures $ 182 $ 158 $ 344 Corporate and discontinued operations 17 109 297 Capital expenditures $ 199 $ 267 $ 641 The following tables reconcile certain segment information to consolidated totals: For the year ended December 31, 2021 2020 2019 Sales: Total segment sales $ 4,982 $ 5,269 $ 7,129 Elimination of inter-segment sales (10) (12) (24) Corporate — 2 (7) Consolidated sales $ 4,972 $ 5,259 $ 7,098 For the year ended December 31, 2021 2020 2019 Total segment operating profit $ 939 $ 890 $ 1,390 Unallocated amounts: Restructuring and other charges (90) (182) (582) Corporate expense (101) (82) (229) Consolidated operating income $ 748 $ 626 $ 579 Loss on debt redemption (146) (64) — Interest expense, net (259) (317) (338) Other expense, net (19) (74) (31) Income from continuing operations before income taxes $ 324 $ 171 $ 210 December 31, 2021 2020 Assets: Total segment assets $ 9,262 $ 9,535 Unallocated amounts: Cash and cash equivalents 720 1,610 Deferred income taxes 184 272 Corporate fixed assets, net 133 140 Fair value of derivative contracts 2 5 Accounts receivable securitization (239) (241) Other 157 122 Consolidated assets $ 10,219 $ 11,443 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, 2021 2020 2019 Sales: United States $ 2,542 $ 2,782 $ 3,534 France 330 327 546 Japan 319 388 480 Germany 257 309 385 Mexico 225 185 277 United Kingdom 213 231 420 Italy 181 181 195 Canada 127 119 179 Poland 77 76 131 China 71 75 168 Other 630 586 783 $ 4,972 $ 5,259 $ 7,098 Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets): December 31, 2021 2020 Long-lived assets: United States $ 1,868 $ 1,967 Hungary 205 213 France 127 150 United Kingdom 116 109 Germany 66 78 Mexico 61 62 China 53 59 Canada 39 44 Japan 25 25 Other 15 16 $ 2,575 $ 2,723 The following table disaggregates segment revenue by major market served. Differences between total segment and consolidated totals are in Corporate. Engine Products Fastening Systems Engineered Structures Forged Wheels Total Year ended December 31, 2021 Aerospace - Commercial $ 1,105 $ 537 $ 387 $ — $ 2,029 Aerospace - Defense 523 158 270 — 951 Commercial Transportation — 208 — 921 1,129 Industrial and Other 654 141 68 — 863 Total end-market revenue $ 2,282 $ 1,044 $ 725 $ 921 $ 4,972 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 Other 602 126 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 Transportation 20 227 — 970 1,217 Industrial and Other 596 116 102 (1) 813 Total end-market revenue $ 3,320 $ 1,561 $ 1,255 $ 969 $ 7,105 The Company derived 60%, 69%, and 71% of its revenue for the year ended December 31, 2021, 2020, and 2019, respectively, from aerospace markets. General Electric Company represented approximately 13% of the Company’s third-party sales for the year ended December 31, 2021, primarily from the Engine Products segment. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges were comprised of the following: For the year ended December 31, 2021 2020 2019 Layoff costs $ 7 $ 113 $ 69 Net reversals of previously recorded layoff reserves (3) (21) (6) Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments 75 69 (7) Non-cash asset impairments and accelerated depreciation ( O ) 15 5 442 Net (gain) loss related to divestitures of assets and businesses ( U ) (8) 8 63 Other 4 8 21 Restructuring and other charges $ 90 $ 182 $ 582 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. 2021 Actions. In 2021, Howmet recorded Restructuring and other charges of $90, which included a $75 charge for U.K. and U.S. pension plans' settlement accounting; a $15 charge for accelerated depreciation primarily related to the closure of small U.S. manufacturing facilities in Engine Products and Fastening Systems; a $7 charge for layoff costs, including the separation of 253 employees (171 in Engineered Structures, 75 in Engine Products, 6 in Fastening Systems and 1 in Corporate); a $4 charge for impairment of assets associated with an agreement to sell a small manufacturing business in France, and a $4 charge for various other exit costs. These charges were partially offset by a gain of $12 on the sale of assets at a small U.S. manufacturing facility in Fastening Systems and a benefit of $3 related to the reversal of a number of layoff reserves related to prior periods. As of December 31, 2021, 66 of the 253 employees were separated. The remaining separations for the 2021 restructuring programs are expected to be completed in 2022. 2020 Actions. In 2020, Howmet recorded Restructuring and other charges of $182, which included a $113 charge for layoff costs, including the separation of 4,301 employees (1,706 in Engine Products, 1,675 in Fastening Systems, 805 in Engineered Structures, 92 in Forged Wheels and 23 in Corporate); a $69 net charge for Pension, Other postretirement benefits and deferred compensation - net settlement and curtailments, composed of a $74 charge for U.K. and U.S. pension plans' settlement accounting offset by a $3 benefit from the termination of a deferred compensation plan and a $2 curtailment benefit related to a postretirement plan; a $5 post-closing adjustment related to the sale of the Company’s U.K. forgings business (which was formerly part of the Engine Products segment); a $5 charge for impairment of assets associated with an agreement to sell an aerospace components business in the U.K. (within the Engineered Structures segment), which ultimately did not occur and the business was returned to held for use; $5 charge related to the impairment of a cost method investment; a $2 charge for accelerated depreciation; a $1 charge for impairment of assets due to a facility sale, and a $6 charge for various other exit costs. These charges were partially offset by a benefit of $21 related to the reversal of a number of prior period programs and a gain of $3 on the sale of assets. As of December 31, 2021, the employee separations associated with the 2020 restructuring programs were essentially complete. 2019 Actions . In 2019, Howmet recorded Restructuring and other charges of $582, which included a $428 charge for impairment of the Disks long-lived asset group; a $69 charge for layoff costs, including the separation of 917 employees (103 in Engine Products, 128 in Engineered Structures, 132 in Fastening Systems, 60 in Forged Wheels and 494 in Corporate); a $46 charge for impairment of assets associated with an agreement to sell the UK forging business; a $14 charge for impairment of properties, plants, and equipment related to the Company’s primary research and development facility; a $13 loss on sale of assets primarily related to a small additive business; a $12 charge for other exit costs from lease terminations primarily related to the exit of the corporate aircraft; a $9 settlement accounting charge for U.S. pension plans; a $5 charge for impairment of a cost method investment; a $2 net charge for executive severance net of the benefit of forfeited executive s tock compensation and a $7 charge for other exit costs; partially offset by a benefit of $16 related to the elimination of the life insurance benefit for U.S. salaried and non-bargaining hourly retirees of the Company and its subsidiaries; a benefit of $6 for the reversal of a number of layoff reserves related to prior periods, and a net gain of $1 on the sales of assets. In 2019, the Company recorded an impairment charge of $428 related to the Disks long-lived asset group, of which $247 and $181 was related to the Engine Products and Engineered Structures segments, respectively, as the carrying value exceeded the forecasted undiscounted cash flows composed of a write-down of properties, plants, and equipment, intangible assets and certain other noncurrent assets. See Note O for additional details. As of December 31, 2021, the employee separations associated with the 2019 restructuring programs were complete. Activity and reserve balances for restructuring charges were as follows: Layoff Other Total Reserve balances at December 31, 2018 $ 13 $ 9 $ 22 2019 Activity Cash payments (63) — (63) Restructuring and other charges 58 524 582 Other (1) 5 (533) (528) Reserve balances at December 31, 2019 $ 13 $ — $ 13 2020 Activity Cash payments $ (51) $ — $ (51) Restructuring and other charges 161 21 182 Other (2) (69) (21) (90) Reserve balances at December 31, 2020 $ 54 $ — $ 54 2021 Activity Cash payments $ (41) $ (2) $ (43) Restructuring and other charges 79 11 90 Other (3) (75) (7) (82) Reserve balances at December 31, 2021 $ 17 $ 2 $ 19 (1) In 2019, Other for layoff costs included reclassifications of a $16 credit for elimination of life insurance benefits for U.S. salaried and non-bargaining hourly retirees, a charge of $9 for pension plan settlement accounting, as the impacts were reflected in the Company's separate liabilities for Accrued pension benefits and Accrued other postretirement benefits; a $2 net charge for executive severance net of the benefit of forfeited executive stock compensation. In 2019, Other exit costs included a charge of $428 for impairment of the Disks long-lived asset group; a charge of $59 for impairment of assets associated with agreement to sell the U.K. forgings business, and a small additive business; a charge of $14 for impairment of properties, plants, and equipment related to the Company’s primary research and development facility; a charge of $12 for lease terminations; a $5 charge for impairment of a cost method investment, a charge of $7 related to other miscellaneous items and a $9 reclassification of lease exit costs to reduce right of use assets in Other noncurrent assets in accordance with the adoption of the new lease accounting standard; partially offset by a gain of $1 on the sales of assets. (2) In 2020, Other for layoff costs included $74 in settlement accounting charges related to U.K. and U.S. pension plans, offset by a $3 benefit from the termination of a deferred compensation plan and a $2 curtailment benefit related to a postretirement plan; while Other exit costs included a charge of $5 for impairment of assets; a $5 post-closing adjustment related to the sale of a business; a $5 charge related to the impairment of a cost method investment; a $2 charge for accelerated depreciation; a $1 charge for impairment of assets due to a facility closure and a $6 charge for various other exit costs, which were offset by a gain of $3 on the sale of assets. (3) In 2021, Other for layoff costs included $75 in settlement accounting charges related to U.K. and U.S. pension plans; while Other exit costs included a charge of $15 for accelerated depreciation and a $4 charge for various other exit costs, which were offset by a gain of $12 on the sale of assets. The remaining reserves at December 31, 2021 are expected to be paid in cash during 2022. |
Interest Cost Components
Interest Cost Components | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Interest Cost Components | Interest Cost Components For the year ended December 31, 2021 2020 2019 Amount charged to interest expense, net $ 259 $ 317 $ 338 Loss on debt redemption 146 64 — Amount capitalized 8 11 33 Total $ 413 $ 392 $ 371 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net For the year ended December 31, 2021 2020 2019 Non-service related net periodic benefit cost ( H ) $ 9 $ 26 $ 17 Interest income (2) (5) (24) Foreign currency losses (gains), net 2 (11) 5 Net loss from asset sales 9 8 10 Deferred compensation 8 10 24 Other, net (1) (7) 46 (1) Total $ 19 $ 74 $ 31 (1) In 2020, Other, net included a charge from the write-off of a tax indemnification receivable of $53 reflecting the aggregate of Alcoa Corporation’s 49% share and Arconic Corporation's 33.66% share of a Spanish tax reserve (see Note V ). |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Howmet maintains pension plans covering most U.S. employees and certain employees in foreign locations. Pension benefits generally depend on length of service and job grade. Substantially all benefits are paid through pension trusts that are sufficiently funded to ensure that all plans can pay benefits to retirees as they become due. Most salaried and non-bargaining hourly U.S. employees hired after March 1, 2006, participate in a defined contribution plan instead of a defined benefit plan. Howmet also maintains health care and life insurance postretirement benefit plans covering eligible U.S. retired employees. Generally, the medical plans are unfunded and pay a percentage of medical expenses, reduced by deductibles and other coverage. Life benefits are generally provided by insurance contracts. Howmet retains the right, subject to existing agreements, to change or eliminate these benefits. All salaried and certain non-bargaining hourly U.S. employees hired after January 1, 2002 and certain bargaining hourly U.S. employees hired after July 1, 2010, are not eligible for postretirement health care benefits. All salaried and certain hourly U.S. employees that retire on or after April 1, 2008 are not eligible for postretirement life insurance benefits. Effective May 1, 2019, salaried employees and retirees are not eligible for postretirement life insurance benefits. Effective January 1, 2015, Howmet no longer offers postretirement health care benefits to Medicare-eligible, primarily non-bargaining, U.S. retirees through Company-sponsored plans. Qualifying retirees may access these benefits in the marketplace by purchasing coverage directly from insurance carriers. Subsidies to these retirees ceased effective December 31, 2021. Some of these retirees remain eligible for Medicare Part B reimbursement. In 2019, the Company communicated to plan participants that for its U.S. salaried and non-bargained hourly retirees of the Company and its subsidiaries, it would eliminate the life insurance benefit effective May 1, 2019, and certain health care subsidies effective December 31, 2019. As a result of these changes in 2019, the Company recorded a decrease to the Accrued other postretirement benefits liability of $75, which was offset by a curtailment benefit of $58 (of which $16 was recorded in Restructuring and other charges and $42 related to Arconic Corporation in Discontinued Operations) and $17 in Accumulated other comprehensive loss. In June 2019, the Company and the United Steelworkers (“USW”) reached a tentative three-year labor agreement that was ratified on July 11, 2019 covering approximately 3,400 employees at four U.S. locations of Arconic Corporation; the previous labor agreement expired on May 15, 2019. In 2019, the Company recognized $9 in Discontinued operations in the Statement of Consolidated Operations primarily for a one-time signing bonus for employees. Additionally, on July 25, 2019, the USW ratified a new four-year labor agreement covering approximately 560 employees at the Company’s Niles, Ohio facility. The prior labor agreement expired on June 30, 2018. In 2021, 2020, and 2019, the Company applied settlement accounting to U.S. pension plans due to lump sum payments to participants, which resulted in settlement charges of $12, $8, and $9, respectively, that were recorded in Restructuring and other charges. In 2021 and 2020, the Company undertook a number of actions to reduce pension obligations in the U.K. by offering lump sum payments to certain plan participants and entering into group annuity contracts with a third-party carrier to pay and administer future annuity payments. The Company applied settlement accounting to these U.K. pension plans, which resulted in settlement charges of $23 and $66, respectively, th at were recorded in Restructuring and other charges in the Statement of Consolidated Operations. These actions reduced the number of pension plan participants in the U.K. by approximately 70%. In 2020, the Company communicated to plan participants that for its U.S. salaried and non-bargained hourly retirees of the Company and its subsidiaries, it would eliminate certain health care subsidies effective December 31, 2021, and that for certain bargained retirees of the Company, it would eliminate certain health care subsidies effective December 31, 2021 and the life insurance benefit effective August 1, 2020. As a result of these amendments, the Company recorded a decrease to the Accrued other postretirement benefits liability of $6 in 2020, which was offset in Accumulated other comprehensive loss. In the first quarter of 2021, the Company announced a plan administration change of certain of its Medicare-eligible prescription drug benefits to an Employer Group Waiver Plan with a wrap-around secondary plan effective July 1, 2021. The administration change is expected to reduce costs to the Company through the usage of Medicare Part D and drug manufacturer subsidies. Due to this amendment, along with the associated plan remeasurements, the Company recorded a decrease to its Accrued other postretirement benefits liability of $39, which was offset in Accumulated other comprehensive loss in the Consolidated Balance Sheet. On March 11, 2021, the American Rescue Plan Act of 2021 (“ARPA 2021”) was signed into law in the United States. ARPA 2021, in part, provides temporary relief for employers who sponsor defined benefit pension plans related to funding contributions under the Employee Retirement Income Security Act of 1974. Considering the impact of ARPA 2021, Howmet’s pension contributions and other postretirement benefit payments in 2021 were approximately $110. In October 2021, the Company undertook additional actions to reduce gross pension obligations by $125 by purchasing group annuity contracts with a third-party carrier to pay and administer future annuity payments. These actions resulted in a settlement charge of $34 and were recorded in Restructuring and other charges in the fourth quarter ended December 31, 2021 in the Statement of Consolidated Operations. The funded status of the plans have not been significantly impacted. The funded status of all of Howmet’s pension plans are measured as of December 31 each calendar year. Howmet’s funded status under the Employee Retirement Income Security Act of 1974 (“ERISA”) was approximately 76% as of January 1, 2021. Obligations and Funded Status Pension benefits Other December 31, 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 2,713 $ 7,249 $ 215 $ 786 Transfer to Arconic Corporation — (4,355) — (569) Service cost 4 6 2 2 Interest cost 47 71 5 7 Amendments 3 6 (31) (11) Actuarial (gains) losses (1) (55) 313 (10) 14 Settlements (275) (398) — — Benefits paid (140) (153) (17) (17) Medicare Part D subsidy receipts — — 1 3 Foreign currency translation impact (1) (26) — — Benefit obligation at end of year (2) $ 2,296 $ 2,713 $ 165 $ 215 Change in plan assets (2) Fair value of plan assets at beginning of year $ 1,724 $ 4,868 $ — $ — Transfer to Arconic Corporation — (2,982) — — Actual return on plan assets 124 203 — — Employer contributions 96 227 — — Benefits paid (123) (136) — — Administrative expenses (12) (12) — — Settlement payments (277) (413) — — Foreign currency translation impact (1) (31) — — Fair value of plan assets at end of year (2) $ 1,531 $ 1,724 $ — $ — Funded status $ (765) $ (989) $ (165) $ (215) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 22 $ 12 $ — $ — Current liabilities (16) (16) (12) (17) Noncurrent liabilities (771) (985) (153) (198) Net amount recognized $ (765) $ (989) $ (165) $ (215) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 1,067 $ 1,274 $ 11 $ 22 Prior service cost (benefit) 3 6 (49) (28) Net amount recognized, before tax effect $ 1,070 $ 1,280 $ (38) $ (6) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss consist of: Net actuarial (benefit) loss $ (81) $ 166 $ (10) $ 14 Amortization of accumulated net actuarial (loss) gain (125) (123) — 1 Loss transferred to Arconic Corporation — (2,144) — (170) Prior service cost (benefit) 3 5 (31) (11) Amortization of prior service benefit (7) — 9 5 Prior service credit transferred to Arconic Corporation — — — 13 Net amount recognized, before tax effect $ (210) $ (2,096) $ (32) $ (148) (1) At December 31, 2021, the actuarial gains impacting the benefit obligation were due to changes in discount rate, alternative interest cost method, actual asset returns in excess of expected returns and other changes including census data. (2) At December 31, 2021, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,039, $1,278, and $(761), respectively. At December 31, 2020, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,327, $1,361, and $(966), respectively. Pension Plan Benefit Obligations Pension benefits 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans were as follows: Projected benefit obligation $ 2,296 $ 2,713 Accumulated benefit obligation 2,293 2,707 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were as follows: Projected benefit obligation 1,982 2,364 Fair value of plan assets 1,193 1,364 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were as follows: Accumulated benefit obligation 1,981 2,359 Fair value of plan assets 1,193 1,364 Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) For the year ended December 31, 2021 2020 2019 2021 2020 2019 Service cost $ 4 $ 12 $ 25 $ 2 $ 3 $ 7 Interest cost 47 97 235 5 10 28 Expected return on plan assets (90) (136) (286) — — — Recognized net actuarial loss 56 78 139 — 3 4 Amortization of prior service cost (benefit) 1 — 2 (9) (6) (6) Settlements (3) 69 76 9 — — — Curtailments (4) 6 — — — (2) (58) Net periodic benefit cost (5) $ 93 $ 127 $ 124 $ (2) $ 8 $ (25) Discontinued operations — 20 95 — 6 (15) Net amount recognized in Statement of Consolidated Operations $ 93 $ 107 $ 29 $ (2) $ 2 $ (10) (1) In 2021, 2020, and 2019, net periodic benefit cost for U.S. pension plans was $61, $58, and $127, respectively. (2) In 2021, 2020, and 2019, net periodic benefit cost for other postretirement benefits reflects a reduction of less than $1, $1, and $11, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) In 2021, settlements were related to U.S. and U.K. actions including the purchase of group annuity contracts and lump sum benefit payments. In 2020, settlements were related to U.K. actions including lump sum benefit payments and the purchase of group annuity contracts as well as U.S. lump sum benefit payments. In 2019, settlements were due to workforce reductions and the payment of lump sum benefits. (See Note E ) (4) In 2021, the curtailment was due to plan termination. In 2020, the curtailment was due to workforce reductions. In 2019, curtailments were due to a reduction of future benefits, resulting in the recognition of favorable and unfavorable plan amendments. (5) Service cost was included within Cost of goods sold, Selling, general administrative, and other expenses, and Research and development expenses; curtailments and settlements were included in Restructuring and other charges; and all other cost components were recorded in Other expense, net in the Statement of Consolidated Operations. Assumptions Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2021 2020 Discount rate 2.70 % 2.40 % Cash balance plan interest crediting rate 3.00 % 3.00 % The U.S. discount rate is determined using a Company-specific yield curve model (above-median) developed with the assistance of an external actuary while both the U.K. and Canada utilize models developed internally by their respective actuary. The cash flows of the plans’ projected benefit obligations are discounted using a single equivalent rate derived from yields on high quality corporate bonds, which represent a broad diversification of issuers in various sectors, including finance and banking, industrials, transportation, and utilities, among others. The yield curve models parallel the plans’ projected cash flows, which have a global average duration o f 11 years. The underlying cash flows of the bonds included in the models exceed the cash flows needed to satisfy the Company’s plans’ obligations multiple times. Benefit accruals for future compensation under the Company’s major salaried and non-bargained hourly defined benefit pension plans have ceased. The rate of compensation increase no longer impacts the determination of the benefit obligation. Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2021 2020 2019 Discount rate to calculate service cost (1) 2.80 % 3.30 % 4.30 % Discount rate to calculate interest cost (1) 2.10 % 2.70 % 3.90 % Expected long-term rate of return on plan assets 6.20 % 6.00 % 5.60 % Rate of compensation increase (2) — % — % 3.50 % Cash balance plan interest crediting rate 3.00 % 3.00 % 3.00 % (1) In all periods presented, the respective global discount rates were used to determine net periodic benefit cost for most pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2021, 2020, and 2019 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and/or curtailments. The updated discount rates used were not significantly different from the discount rates presented. (2) Benefit accruals for future compensation under the Company’s major salaried and non-bargained hourly defined benefit pension plans have ceased. The rate of compensation increase no longer impacts the determination of the benefit obligation. The expected long-term rate of return on plan assets (“EROA”) is generally applied to a five-year market-related value of plan assets (a fair value at the plan measurement date is used for certain non-U.S. plans). The process used by management to develop this assumption is one that relies on a combination of historical asset return information and forward-looking returns by asset class. As it relates to historical asset return information, management focuses on various historical moving averages when developing this assumption. While consideration is given to recent performance and historical returns, the assumption represents a long-term, prospective return. Management also incorporates expected future returns on current and planned asset allocations using information from various external investment managers and consultants, as well as management’s own judgment. For 2021, 2020, and 2019, the U.S. expected long-term rate of return used by management was based on the prevailing and planned strategic asset allocations, as well as estimates of future returns by asset class. These rates were within the respective range of the 20-year moving average of actual performance and the expected future return developed by asset class. For 2022, management anticipates that 7.00% will continue to be the expected long-term rate of return for the U.S. Pension plans. EROA assumptions are developed by country. Annual changes in the weighted average EROA are impacted by the relative size of the assets by country. Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows: 2021 2020 2019 Health care cost trend rate assumed for next year 5.50 % 5.50 % 5.50 % Rate to which the cost trend rate gradually declines 4.50 % 4.50 % 4.50 % Year that the rate reaches the rate at which it is assumed to remain 2024 2023 2023 The assumed health care cost trend rate is used to measure the expected cost of gross eligible charges covered by Howmet’s other postretirement benefit plans. For 2022, a 5.50% trend rate will be used, reflecting management’s best estimate of the change in future health care costs covered by the plans. The plans’ actual annual health care cost trend experience over the past three years has ranged from 2.20% to 5.70%. Management does not believe this three-year range is indicative of expected increases for future health care costs over the long-term. Plan Assets Howmet’s pension plans’ investment policy at December 31, 2021 by asset class, were as follows: Asset class Policy range (1) Equities 20–55% Fixed income 25–55% Other investments 15–35% (1) Policy range is for U.S. plan assets only, as both the U.K. and Canadian asset investment allocations are controlled by a third-party trustee with input from Howmet. The principal objectives underlying the investment of the pension plans’ assets are to ensure that Howmet can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within various asset classes to protect asset values against adverse movements. Specific objectives for long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, and attaining and maintaining a sufficiently funded status. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. The investment strategy uses long duration cash bonds and derivative instruments to offset a portion of the interest rate sensitivity of U.S. pension liabilities. Exposure to broad equity risk is decreased and diversified through investments in hedge funds, private equity, private credit, private real estate, high-yield bonds, global and emerging market debt, and global and emerging market equities. Investments are further diversified by strategy, asset class, geography, and sector to enhance returns and mitigate downside risk. A large number of external investment managers are used to gain broad exposure to the financial markets and to mitigate manager-concentration risk. Investment practices comply with the requirements of ERISA and other applicable laws and regulations. The following section describes the valuation methodologies used to measure the fair value of pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note S for the definition of fair value and a description of the fair value hierarchy). Equities. These securities consist of: (i) direct investments in the stock of publicly traded U.S. and non-U.S. companies, and equity derivatives, that are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (ii) the plans’ share of commingled funds that are invested in the stock of publicly traded companies and are valued at the net asset value of shares held at December 31 (included in Level 1 and Level 2); and (iii) direct investments in long/short equity hedge funds and private equity (limited partnerships and venture capital partnerships) that are valued at net asset value. Fixed income. These securities consist of: (i) U.S. government debt that are generally valued using quoted prices (included in Level 1); (ii) cash and cash equivalents invested in publicly-traded funds and are valued based on the closing price reported in an active market on which the individual securities are traded (generally classified in Level 1); (iii) publicly traded U.S. and non-U.S. fixed interest obligations (principally corporate bonds and debentures) and are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data (included in Level 2); (iv) fixed income derivatives that are generally valued using industry standard models with market-based observable inputs (included in Level 2); and (v) cash and cash equivalents invested in institutional funds and are valued at net asset value. Other investments. These investments include, among others: (i) exchange traded funds, such as gold, and real estate investment trusts and are valued based on the closing price reported in an active market on which the investments are traded (included in Level 1) and (ii) direct investments of discretionary and systematic macro hedge funds and private real estate (includes limited partnerships) and are valued at net asset value. The fair value methods described above may not be indicative of net realizable value or reflective of future fair values. Additionally, while Howmet believes the valuation methods used by the plans’ trustees are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table presents the fair value of pension plan assets classified under the appropriate level of the fair value hierarchy or net asset value: December 31, 2021 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 2 $ 197 $ 409 $ 608 Long/short equity hedge funds — — 60 60 Private equity — — 126 126 $ 2 $ 197 $ 595 $ 794 Fixed income: Intermediate and long duration government/credit $ 124 $ 328 $ — $ 452 Other 15 119 — 134 $ 139 $ 447 $ — $ 586 Other investments: Real estate $ — $ — $ 64 $ 64 Discretionary and systematic macro hedge funds — — 47 47 Other — — 23 23 $ — $ — $ 134 $ 134 Net plan assets (1) $ 141 $ 644 $ 729 $ 1,514 December 31, 2020 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 274 $ 89 $ 68 $ 431 Long/short equity hedge funds — — 77 77 Private equity — — 87 87 $ 274 $ 89 $ 232 $ 595 Fixed income: Intermediate and long duration government/credit $ 78 $ 579 $ 31 $ 688 Other 63 254 — 317 $ 141 $ 833 $ 31 $ 1,005 Other investments: Real estate $ 31 $ — $ 52 $ 83 Discretionary and systematic macro hedge funds — — 94 94 Other — — 23 23 $ 31 $ — $ 169 $ 200 Net plan assets (2) $ 446 $ 922 $ 432 $ 1,800 (1) As of December 31, 2021, the total fair value of pension plans’ assets excludes a net receivable of $17, which represents securities purchased and sold but not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2020, the total fair value of pension plans’ assets excludes a net payable of $76, which represents securities purchased and sold but not yet settled plus interest and dividends earned on various investments. Funding and Cash Flows It is Howmet’s policy to fund amounts for pension plans sufficient to meet the minimum requirements set forth in the benefits laws and tax laws of the applicable country. Periodically, Howmet contributes additional amounts as deemed appropriate. In 2021 and 2020 , cash contributions to Howmet’s pension plans were $96 and $227, respectively, which includes $12 and $25, respectively, contributed to the Company’s U.S. plans that was in excess of the minimum required under ERISA. The contributions to the Company’s pension plans in 2022 are estimated to be $44 (of w hich $35 is for U.S. plans), all of which are minimum required contributions. During the third quarter of 2016, the Pension Benefit Guaranty Corporation approved management’s plan to separate the Alcoa Inc. pension plans between the Company and Alcoa Corporation. The plan stipulated that the Company make cash contributions of $150 over a period of 30 months (from November 1, 2016) to its two largest pension plans. The Company satisfied the requirements of the plan by making payments of $34, $66, and $50 in April 2019, March 2018, and April 2017, respectively. Due to the plan administration change of certain Medicare-eligible prescription drug benefits to an Employer Group Waiver Plan with a wrap-around secondary plan, there will be no direct Medicare Part D subsidy receipts going forward. Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants are as follows utilizing the current assumptions outlined above: For the year ended December 31, Pension Other post- 2022 $ 152 $ 12 2023 149 12 2024 145 12 2025 145 11 2026 141 11 2027 - 2031 671 53 $ 1,403 $ 111 Defined Contribution Plans Howmet sponsors savings and investment plans in various countries, primarily in the U.S. Howmet’s contributions and expenses related to these plans were $66, $73 , and $87 in 2021, 2020, and 2019, respectively. U.S. employees may contribute a portion of their compensation to the plans, and Howmet matches a portion of these contributions in equivalent form of the investments elected by the employee. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income from continuing operations before income taxes were as follows: For the year ended December 31, 2021 2020 2019 United States $ 28 $ 84 $ 128 Foreign 296 87 82 Total $ 324 $ 171 $ 210 The provision for income taxes consisted of the following: For the year ended December 31, 2021 2020 2019 Current: Federal (1) $ (9) $ (2) $ — Foreign 39 2 86 State and local (2) (2) — 28 (2) 86 Deferred: Federal 22 (67) 33 Foreign 11 11 (41) State and local 5 18 6 38 (38) (2) Total $ 66 $ (40) $ 84 (1) Includes U.S. taxes related to foreign income. A reconciliation of the U.S. federal statutory rate to Howmet’s effective tax rate was as follows (the effective tax rate for 2021 and 2019 was a provision on income and 2020 was a benefit on income): For the year ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate differential (0.7) (1.2) 10.9 U.S. and residual tax on foreign earnings (1) 6.5 5.6 15.3 U.S. State and local taxes 1.0 2.2 0.8 Federal (cost) benefit of state tax (0.3) (2.0) 1.2 Permanent differences related to asset disposals and items included in restructuring and other charges (0.3) 6.8 (1.3) Non-deductible officer compensation 1.6 3.5 4.9 Statutory tax rate and law changes (2) 1.0 (15.9) (0.6) Tax holidays (0.4) (0.4) (8.2) Tax credits (3) (10.4) (0.4) (1.3) Changes in valuation allowances (4) 5.1 74.8 (52.2) Changes in uncertain tax positions (5) — (116.9) 0.3 Prior year tax adjustments (6) (3.7) (1.7) 44.3 Other — 1.2 4.9 Effective tax rate 20.4 % (23.4) % 40.0 % (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 2020, final regulations were issued that provided an election to exclude from GILTI any foreign earnings subject to a local country tax rate of at least 90% of the U.S. tax rate. The Company recorded a $30 benefit related to this tax law change. (3) In 2021, a $32 benefit for income tax credits related to development incentives in Hungary was recognized. (4) In 2020, a $104 valuation allowance was recorded related to deferred tax assets that were previously subject to a reserve that was otherwise released in 2020 as a result of a favorable Spanish tax case decision. In 2019, the Company released a $112 valuation allowance related to 2015 and 2016 foreign tax credits, subsequent to filing U.S. amended tax returns to deduct, rather than credit, foreign taxes. (5) In 2020, the Company released a $64 reserve liability and a $104 reserve recorded as a contra balance against deferred tax assets as a result of a favorable Spanish tax case decision. A $30 benefit related to a previously uncertain U.S. tax position was also recognized in 2020. (6) In 2019, the Company filed U.S. amended tax returns to deduct, rather than credit, 2015 and 2016 foreign taxes resulting in a $112 tax cost associated with the write-off of the deferred tax asset for the credit, partially offset by a $24 tax benefit for the deduction. The components of net deferred tax assets and liabilities were as follows: 2021 2020 December 31, Deferred Deferred Deferred Deferred Depreciation $ 8 $ 538 $ 21 $ 506 Employee benefits 300 3 364 — Loss provisions 20 1 24 1 Deferred income/expense 50 1,098 41 1,033 Interest 105 — 3 — Tax loss carryforwards 3,226 — 3,267 — Tax credit carryforwards 358 — 378 — Other 10 7 7 13 $ 4,077 $ 1,647 $ 4,105 $ 1,553 Valuation allowance (2,279) — (2,307) — $ 1,798 $ 1,647 $ 1,798 $ 1,553 The following table details the expiration periods of the deferred tax assets presented above: December 31, 2021 Expires Expires No Expiration (1) Other (2) Total Tax loss carryforwards $ 422 $ 580 $ 2,224 $ — $ 3,226 Tax credit carryforwards 278 66 14 — 358 Other (3) — — 424 69 493 Valuation allowance (637) (293) (1,329) (20) (2,279) $ 63 $ 353 $ 1,333 $ 49 $ 1,798 (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. The total deferred tax asset (net of valuation allowance) is supported by projections of future taxable income exclusive of reversing temporary differences (10%), and taxable temporary differences that reverse within the carryforward period (90%). Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Howmet’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. It is Howmet’s policy to apply a tax law ordering approach when considering the need for a valuation allowance on net operating losses expected to offset GILTI income inclusions. Under this approach, reductions in cash tax savings are not considered as part of the valuation allowance assessment. Instead, future GILTI inclusions are considered a source of taxable income that support the realizability of deferred tax assets. Howmet’s foreign tax credits in the United States have a 10-year carryforward period with expirations ranging from 2022 to 2027 (as of December 31, 2021). Valuation allowances were initially established in prior years on a portion of the foreign tax credit carryforwards, primarily due to insufficient foreign source income to allow for full utilization of the credits within the expiration period. Foreign tax credits of $22 and $88 expired at the end of 2021 and 2019, respectively, resulting in a corresponding decrease to the valuation allowance. The valuation allowance was also reduced in 2021 by $9 as a result of updated U.S. regulatory guidance concerning the utilization of foreign tax credits in connection with the one-time transition tax on the deemed repatriation of previously non-taxed post-1986 earnings and profits of certain foreign subsidiaries enacted as part of the 2017 Act, and by $4 as a result of a corresponding reduction in the deferred tax asset related to suspended foreign tax credits. The valuation allowance was also reduced by $113 in 2019 as a result of the Company filing amended tax returns to deduct foreign taxes that were previously claimed as a U.S. foreign tax credit. At December 31, 2021, the cumulative amount of the valuation allowance was $180. The need for this valuation allowance will be reassessed on a continuous basis in future periods and, as a result, the allowance may increase or decrease based on changes in facts and circumstances. During 2021, the Company concluded that it would not pursue a deduction related to a capital investment for which a deferred tax asset of $9 and offsetting valuation allowance had previously been recorded. As such, both the deferred tax asset and the valuation allowance were eliminated. The need for valuation allowances against other capital investments will be reassessed on a continuing basis. As of December 31, 2021, there is no valuation allowance recorded related to capital investments. The Company recorded a net $3 increase, $20 increase, and $11 decrease to U.S. state valuation allowances in 2021, 2020 and 2019, respectively. After weighing all available positive and negative evidence, the Company determined the adjustments based on the underlying net deferred tax assets that were more likely than not realizable based on projected taxable income. Changes in fully reserved U.S. state tax losses, credits and other deferred tax assets resulting from expirations, audit adjustments, tax rate, and tax law changes also resulted in a corresponding net $20 increase, $58 decrease, and $5 increase in the valuation allowance in 2021, 2020, and 2019, respectively. Valuation allowances of $632 remain against state deferred tax assets expected to expire before utilization. The need for valuation allowances against state deferred tax assets will be reassessed on a continuous basis in future periods and, as a result, the allowance may increase or decrease based on changes in facts and circumstances. In 2021, after weighing all available evidence, the Company recognized a discrete income tax cost to establish a valuation allowance of $8 in Switzerland. In 2020, the Company increased a valuation allowance by $104 as a result of releasing a tax reserve following a favorable Spanish tax case decision. The need for valuation allowances will be reassessed by entity and by jurisdiction on a continuous basis in future periods and, as a result, the allowances may increase or decrease based on changes in facts and circumstances. The following table details the changes in the valuation allowance: December 31, 2021 2020 2019 Balance at beginning of year $ 2,307 $ 2,121 $ 2,357 Increase to allowance 113 136 19 Release of allowance (94) (50) (211) Acquisitions and divestitures — — (2) Tax apportionment, tax rate and tax law changes 63 (23) (13) Foreign currency translation (110) 123 (29) Balance at end of year $ 2,279 $ 2,307 $ 2,121 Foreign U.S. GAAP earnings that have not otherwise been subject to U.S. tax, will generally be exempt from future U.S. tax under the 2017 Act when distributed. Such distributions, as well as distributions of previously taxed foreign earnings, could potentially be subject to U.S. state tax in certain states, and foreign withholding taxes. Foreign currency gains/losses related to the translation of previously taxed earnings from functional currency to U.S. dollars could also be subject to U.S. tax when distributed. The Company has made the determination to no longer permanently reinvest earnings in certain subsidiaries and has consequently recognized $9 of tax charges related to withholding tax and capital gains on amounts distributable in those entities in excess of tax basis. To the extent that additional earnings are distributed from other foreign subsidiaries, Howmet would expect the potential withholding tax, U.S. state tax, and U.S. capital gains tax impacts to be immaterial and the potential deferred tax liability associated with future currency gains to be impracticable to determine. Howmet and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With a few minor exceptions, Howmet is no longer subject to income tax examinations by tax authorities for years prior to 2014. All U.S. tax years prior to 2021 have been audited by the Internal Revenue Service. Various state and foreign jurisdiction tax authorities are in the process of examining the Company’s income tax returns for various tax years through 2020. The Company had net cash income tax payments of $53 and $122 in 2021 and 2019, respectively, and net cash refunds of $33 in 2020. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) was as follows: December 31, 2021 2020 2019 Balance at beginning of year $ 2 $ 176 $ 148 Additions for tax positions of the current year — — 34 Additions for tax positions of prior years — — — Reductions for tax positions of prior years — (182) (1) Settlements with tax authorities — (1) — Expiration of the statute of limitations — — (2) Foreign currency translation — 9 (3) Balance at end of year $ 2 $ 2 $ 176 For all periods presented, a portion of the balance pertains to state tax liabilities, which are presented before any offset for federal tax benefits. The effect of unrecognized tax benefits, if recorded, that would impact the annual effective tax rate for 2021, 2020, and 2019 would be approximately 1%, 1%, and 36%, respectively, of pre-tax book income. Howmet does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Statement of Consolidated Operations during 2022. It is Howmet’s policy to recognize interest and penalties related to income taxes as a component of the Provision for income taxes in the Statement of Consolidated Operations. Howmet recognized interest of less than $1, $2, and $6 in 2021, 2020, and 2019, respectively. Due to the expiration of the statute of limitations, settlements with tax authorities, reductions in prior accruals, and refunded overpayments, Howmet recognized interest income of $3, $25, and less than $1 in 2021, 2020, and 2019, respectively. As of December 31, 2021, 2020, and 2019, the amount accrued for the payment of interest and penalties was less than $1, $2, and $23, respectively. |
Preferred and Common Stock
Preferred and Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Preferred and Common Stock | Preferred and Common Stock Preferred Stock. Howmet has two classes of preferred stock: $3.75 Cumulative Preferred Stock (“Class A Preferred Stock”) and Class B Serial Preferred Stock. Class A Preferred Stock has 660,000 shares authorized at a par value of $100 per share with an annual $3.75 cumulative dividend preference per share. There were 546,024 shares of Class A Preferred Stock outstanding at December 31, 2021 and 2020. Class B Serial Preferred Stock has 10,000,000 shares authorized as a par value of $1 per share. There were no shares of Class B Serial Preferred Stock outstanding at December 31, 2021 and 2020. Common Stock. At December 31, 2021, there were 600,000,000 shares authorized and 421,691,912 shares issued and outstanding. Dividends paid were $0.04 per share in 2021 ($0.02 per share in each of the third and fourth quarters of 2021), $0.02 per share in 2020 (all in the first quarter of 2020), and $0.12 per share in 2019 ($0.06 per share in the first quarter of 2019 and $0.02 per share in each of the second, third, and fourth quarters of 2019). As of December 31, 2021, 47 million shares of common stock were reserved for issuance under Howmet’s stock-based compensation plans. As of December 31, 2021, 31 million shares remain available for issuance. Howmet issues new shares to satisfy the exercise of stock options and the conversion of stock awards. In July 2015, through the acquisition of RTI International Metals Inc. (“RTI”), the Company assumed the obligation to repay two tranches of convertible debt; one tranche was due and settled in cash on December 1, 2015 (principal amount of $115) and the other tranche was due and settled in cash on October 15, 2019 (principal amount of $403). No shares of the Company’s common stock were issued in connection with the maturity or final conversion of this convertible debt. Common Stock Outstanding and Share Activity (number of shares) Balance at December 31, 2018 483,270,717 Issued for stock-based compensation plans 4,436,830 Repurchase and retirement of common stock (54,852,364) Balance at December 31, 2019 432,855,183 Issued for stock-based compensation plans 3,896,119 Repurchase and retirement of common stock (3,844,925) Balance at December 31, 2020 432,906,377 Issued for stock-based compensation plans 2,195,681 Repurchase and retirement of common stock (13,410,146) Balance at December 31, 2021 421,691,912 The following table provides details for share repurchases during 2021, 2020, and 2019: Number of shares Average price per share (1) Total May 2021/June 2021 accelerated share repurchase (“ASR”) total 5,878,791 $34.02 $200 August 2021 open market repurchase 769,274 $32.50 $25 October 2021 open market repurchase 879,307 $30.71 $27 November 2021 open market repurchase 2,336,733 $30.79 $72 December 2021 open market repurchase 3,546,041 $29.91 $106 2021 Share repurchase total 13,410,146 $32.07 $430 August/September 2020 open market repurchase 2,907,094 $17.36 $51 November 2020 open market repurchase 937,831 $23.99 $22 2020 Share repurchase total 3,844,925 $18.98 $73 February 2019 ASR total 36,434,423 $19.21 $700 May 2019 ASR total 9,016,981 $22.18 $200 August 2019 ASR total 7,774,279 $25.73 $200 November 2019 open market repurchase 1,626,681 $30.74 $50 2019 Share repurchase total 54,852,364 $20.97 $1,150 (1) Excludes commissions cost. The total value of shares repurchased during 2021, 2020, and 2019 were $430, $73, and $1,150, respectively. All of the shares repurchased during 2021, 2020, and 2019 were immediately retired. After giving effect to the share repurchases made through December 31, 2021, approximately $1,347 remained available for share repurchases as of January 1, 2022 under the prior authorizations by the Board. Under the Company’s share repurchase programs (the “Share Repurchase Programs”), the Company may repurchase shares by means of trading plans established from time to time in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, block trades, private transactions, open market repurchases and/or accelerated share repurchase agreements or other derivative transactions. There is no stated expiration for the Share Repurchase Programs. Under its Share Repurchase Programs, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations, including limits under the Company’s Five-Year Revolving Credit Agreement (see Note R ). The Company is not obligated to repurchase any specific number of shares or to do so at any particular time, and the Share Repurchase Programs may be suspended, modified or terminated at any time without prior notice. In January 2022, the Company repurchased approximately 3 million shares of its common stock under the Share Repurchase Programs at an average price of $33.81 per share (excluding commissions cost) for approximately $100 in cash. After the share repurchases made through January 31, 2022, approximately $1,247 remains authorized for common stock share repurchases. Fully diluted shares outstanding as of January 31, 2022 were approximately 425 million. Stock-Based Compensation Howmet has a stock-based compensation plan under which stock options and/or restricted stock unit awards are granted, generally, in the first half of each year to eligible employees. Stock options are granted at the closing market price of Howmet’s common stock on the date of grant and typically vest over a three-year service period (1/3 each year) with a ten-year contractual term. Restricted stock unit awards typically vest over a three-year service period from the date of grant. As part of Howmet’s stock-based compensation plan design, individuals who are retirement-eligible have a six-month requisite service period in the year of grant. Certain of the restricted stock unit awards include performance and market conditions and are granted to certain eligible employees. In 2020 and 2019, performance stock awards were granted to a senior executive that vest either based on achievement of the Arconic Inc. Separation Transaction (see Note C for further details) or the achievement of certain stock price thresholds. For performance stock awards granted in 2021 and for annual performance awards granted in 2020, the final number of shares earned will be based on Howmet’s achievement of profitability targets over the respective performance periods and will be earned at the end of the third year. Performance stock awards granted in the first quarter of 2019 were converted to restricted stock unit awards (at target), in order to address the pending Arconic Inc. Separation Transaction. For performance stock awards granted in 2018, in order to address the pending Arconic Inc. Separation Transaction, the final number of shares earned was based on Howmet’s achievement of sales and profitability targets over performance periods in 2018 and 2019. Additionally, the annual 2021 and 2020 performance stock awards will be scaled by a total shareholder return (“TSR”) multiplier, which depends upon relative performance against the TSRs of a group of peer companies. In conjunction with their employment agreements, certain current and former executives were granted cash bonus awards based on the achievement of certain stock price thresholds. These awards are liability classified and were marked-to-market each quarter using a Monte Carlo simulation. The stock price thresholds were fully reached. The cash payment of $23 occurred in 2021 in accordance with the terms of the agreements. In 2021, 2020, and 2019, Howmet recognized stock-based compensation expense of $40 ($36 after-tax), $46 ($42 after-tax), and $69 ($63 after-tax), respectively. Senior executive performance awards granted in April 2020 were modified in June 2020, resulting in incremental compensation expense of $12, which is amortized over the remaining service period ending April 1, 2023. Additionally, the effect of the Arconic Inc. Separation Transaction was a modification of the original stock options and restricted stock award units. The modifications were designed with the intention that the intrinsic value of the stock option or stock award were the same both previous to and after the adjustments. An immaterial charge was recorded to Restructuring and other charges related to the modification. Substantially all compensation expense recorded in 2021 relates to restricted stock unit awards. Cash bonus awards of $2 and $21 were recorded in 2020, and 2019, respectively. Of the remaining stock-based compensation expense in 2020 and 2019, more than 95% relates to restricted stock unit awards. No stock-based compensation expense was capitalized in any of those years. Stock-based compensation expense was reduced by $2 in 2021 and $3 in 2019 for certain executive pre-vest cancellations, which were recorded in Restructuring and other charges within the Statement of Consolidated Operations. At December 31, 2021, there was $68 (pre-tax) of unrecognized compensation expense related to non-vested restricted stock unit award grants. This expense is expected to be recognized over a weighted average period of 1.8 years. Stock-based compensation expense is based on the grant date fair value of the applicable equity grant. For restricted stock unit awards, the fair value is equivalent to the closing market price of Howmet’s common stock on the date of grant. The weighted average grant date fair value per share of the 2021 and 2020 performance stock awards with a market condition scaled by a TSR multiplier is $43.41 and $21.33, respectively. The weighted average grant date fair value per share of the April 2020 senior executive performance stock awards with a market condition (achievement of certain stock price thresholds) is $2.57. The weighted average grant date fair value per share of the 2019 performance stock awards with a market condition (achievement of certain stock price thresholds) is $11.93. The 2021, 2020, and 2019 performance awards were valued using a Monte Carlo model. A Monte Carlo simulation uses assumptions of stock price behavior to estimate the probability of satisfying market conditions and the resulting fair value of the award. The risk-free interest rate (0.2% in 2021, 0.3% in 2020, and in 1.6% in 2019) was based on a yield curve of interest rates at the time of the grant based on the remaining performance period. In 2021 and 2020, volatility of 56.0% and 48.3%, respectively, was estimated using a blended rate of Howmet's historical volatility and a peer-based volatility due to the Arconic Inc. Separation Transaction and the related changes in the nature of the business. In 2019, volatility of 33.4% was estimated using implied and historical volatility. There were no stock options issued in 2021, 2020, and 2019. The activity for stock options and stock awards during 2021 was as follows (options and awards in millions): Stock options Stock awards Number of Weighted Number of Weighted Outstanding, December 31, 2020 3 $ 24.47 9 $ 13.68 Granted — — 2 32.15 Exercised (1) 21.70 — — Converted — — (2) 19.52 Expired or forfeited — 34.68 (1) 20.94 Outstanding, December 31, 2021 2 $ 23.64 8 $ 16.19 As of December 31, 2021, the stock options outstanding had a weighted average remaining contractual life of 2.6 years and a total intrinsic value of $15. All of the stock options outstanding were fully vested and exercisable. In 2021, 2020, and 2019, the cash received from stock option exercises was $22, $33, and $56 and the total tax benefit realized from these exercises was $2, $3, and $4, respectively. The total intrinsic value of stock options exercised during 2021, 2020, and 2019 was $10, $14, and $17, respectively. The total intrinsic value of stock awards converted during 2021, 2020, and 2019 was $55, $104, and $48, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) amounts are computed by dividing earnings, after the deduction of preferred stock dividends declared, by the average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The information used to compute basic and diluted EPS attributable to Howmet common shareholders was as follows (shares in millions): For the year ended December 31, 2021 2020 2019 Net income from continuing operations $ 258 $ 211 $ 126 Less: preferred stock dividends declared 2 2 2 Net income from continuing operations attributable to common shareholders 256 209 124 Income from discontinued operations — 50 344 Net income attributable to common shareholders - basic 256 259 468 Add: interest expense related to convertible notes — — 9 Net income attributable to common shareholders - diluted $ 256 $ 259 $ 477 Average shares outstanding - basic 430 435 446 Effect of dilutive securities: Stock options — — 1 Stock and performance awards 5 4 5 Convertible notes (1) — — 11 Average shares outstanding - diluted 435 439 463 (1) The convertible notes matured on October 15, 2019 (see Note R ). No shares of the Company’s common stock were issued in connection with the maturity or the final conversion of the convertible notes. As of October 15, 2019, the calculation of average diluted shares outstanding ceased to include the approximately 15 million shares of common stock and the corresponding interest expense previously attributable to the convertible notes. Common stock outstanding at December 31, 2021 and 2020 was approximately 422 million and 433 million, respectively. The 5 million decrease in average shares outstanding (basic) for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily due to the 13 million shares repurchased during 2021. As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases was not realized in EPS for the year ended December 31, 2021 as share repurchases occurred at varying points during the year ended December 31, 2021. The following shares were excluded from the calculation of average shares outstanding – diluted as their effect was anti-dilutive (shares in millions). For the year ended December 31, 2021 2020 2019 Stock options — 1 1 (1) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table details the activity of the four components that comprise Accumulated other comprehensive loss: 2021 2020 2019 Pension and other postretirement benefits ( H ) Balance at beginning of period $ (980) $ (2,732) $ (2,344) Other comprehensive income (loss): Unrecognized net actuarial gain (loss) and prior service cost/benefit 111 (211) (587) Tax (expense) benefit (26) 48 129 Total Other comprehensive income (loss) before reclassifications, net of tax 85 (163) (458) Amortization of net actuarial loss and prior service cost (1) 123 149 90 Tax expense (2) (27) (32) (20) Total amount reclassified from Accumulated other comprehensive loss, net of tax (3) 96 117 70 Total Other comprehensive income (loss) 181 (46) (388) Transfer to Arconic Corporation — 1,798 — Balance at end of period $ (799) $ (980) $ (2,732) Foreign currency translation Balance at beginning of period $ (966) $ (596) $ (583) Other comprehensive (loss) income (4) (96) 58 (13) Transfer to Arconic Corporation — (428) — Balance at end of period $ (1,062) $ (966) $ (596) Debt securities Balance at beginning of period $ — $ — $ (3) Other comprehensive income (5) — — 3 Balance at end of period $ — $ — $ — Cash flow hedges Balance at beginning of period $ 3 $ (1) $ 4 Adoption of accounting standard (6) — — (2) Other comprehensive income (loss): Net change from periodic revaluations 20 — (9) Tax benefit (4) — 3 Total Other comprehensive income (loss) before reclassifications, net of tax 16 — (6) Net amount reclassified to earnings (26) 6 4 Tax benefit (expense) (2) 5 (2) (1) Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (3) (21) 4 3 Total Other comprehensive (loss) income (5) 4 (3) Balance at end of period $ (2) $ 3 $ (1) Accumulated other comprehensive loss balance at end of period $ (1,863) $ (1,943) $ (3,329) (1) These amounts were recorded in Other expense, net (see Note G ) and Restructuring and other charges (see Note E ) in the Statement of Consolidated Operations. (2) These amounts were included in Provision (benefit) for income taxes (see Note I ) in the Statement of Consolidated Operations. (3) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. (4) In all periods presented, no amounts were reclassified to earnings. (5) Realized gains and losses were included in Other expense, net, in the Statement of Consolidated Operations. (6) Adjustment was related to eliminating the separate measurement of hedge ineffectiveness as part of the adoption of new hedge accounting guidance. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Receivables | Receivables Sale of Receivables Programs The Company has historically maintained two accounts receivables securitization arrangements. The net cash funding from the sale of accounts receivable was neither a use of cash nor a source of cash during 2021. The first was an arrangement with financial institutions to sell certain customer receivables without recourse on a revolving basis (the “Receivables Sale Program”) and was terminated on August 30, 2021. This arrangement historically provided up to a maximum funding of $300 for receivables sold. The Company maintained a beneficial interest, or a right to collect cash, on the sold receivables that have not been funded (deferred purchase program receivable). In connection with the termination, the Company repurchased the remaining $211 of unpaid receivables, paying $160 in cash and reducing the $51 deferred purchase program receivable to zero (in a non-cash transaction). The Company had net cash repayments totaling $44 ($41 in draws and $85 in repayments) in 2021 and net cash repayments totaling $146 ($207 in draws and $353 in repayments) in 2020. As of December 31, 2021, there was no deferred purchase program receivable included in Other receivables in the Consolidated Balance Sheet. As of December 31, 2020, the deferred purchase program receivable was $12, which was included in Other receivables in the Consolidated Balance Sheet. The deferred purchase program receivable was reduced as collections of the underlying receivables occurred. Cash receipts from customer payments on sold receivables (which were cash receipts on the underlying trade receivables that had been previously sold) as well as cash receipts and cash disbursements from draws and repayments under the program were presented as cash receipts from sold receivables within investing activities in the Statement of Consolidated Cash Flows through the termination of the Receivables Sale Program on August 30, 2021. As a result of the termination, there were no additional changes related to cash receipts from sold receivables within investing activities in the Statement of Consolidated Cash Flows in the fourth quarter of 2021. The second accounts receivables securitization arrangement is one in which the Company, through a wholly-owned special purpose entity (“SPE”), has a receivables purchase agreement (the “Receivables Purchase Agreement”) such that the SPE may sell certain receivables to financial institutions until the earlier of August 30, 2024 or a termination event. The Receivables Purchase Agreement also contains customary representations and warranties, as well as affirmative and negative covenants. Pursuant to the Receivables Purchase Agreement, the Company does not maintain effective control over the transferred receivables, and therefore accounts for these transfers as sales of receivables. Cash received from collections of sold receivables is used by the SPE to fund additional purchases of receivables on a revolving basis. This arrangement historically provided up to a maximum funding of $125 for receivables sold. On August 30, 2021, the Company entered into an amendment to add the subsidiaries that were previously part of the terminated Receivables Sale Program and, as a result, the maximum funding limit was increased by $200 to $325. The SPE sold the $211 of receivables, which were repurchased as a result of the termination of the Receivables Sale Program, in exchange for cash. The Company sold $1,057 of its receivables without recourse and received cash funding under this program during 2021, resulting in derecognition of the receivables from the Company’s Consolidated Balance Sheet. As of December 31, 2021 and December 31, 2020, $250 and $46, respectively, remained outstanding from the customer. As collateral against the sold receivables, the SPE maintains a certain level of unsold receivables, which was $79 and $33 at December 31, 2021 and December 31, 2020, respectively. Costs associated with the sales of receivables are reflected in the Company’s Consolidated Statements of Operations for the periods in which the sales occur. Cash receipts from sold receivables under the Receivables Purchase Agreement, excluding the receipts associated with the August 30, 2021 termination of the Receivables Sale Program, are presented within operating activities in the Statement of Consolidated Cash Flows. The Company had accounts receivable securitization arrangements totaling $325 at December 31, 2021, of which $250 was drawn. The Company had accounts receivable securitization arrangements totaling $425 at December 31, 2020, of which $250 was drawn. Other Customer Receivable Sales In 2021, the Company sold $368 of certain customer’s receivables in exchange for cash (of which $109 remained outstanding from the customer at December 31, 2021), the proceeds from which are presented in changes in receivables within operating activities in the Statement of Consolidated Cash Flows. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, 2021 2020 Finished goods $ 478 $ 528 Work-in-process 631 629 Purchased raw materials 256 292 Operating supplies 37 39 Total inventories $ 1,402 $ 1,488 |
Properties, Plants, and Equipme
Properties, Plants, and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants, and Equipment, Net | Properties, Plants, and Equipment, Net December 31, 2021 December 31, 2020 Land and land rights $ 91 $ 98 Structures 1,034 1,033 Machinery and equipment 3,932 3,879 5,057 5,010 Less: accumulated depreciation and amortization 2,772 2,626 2,285 2,384 Construction work-in-progress 182 208 Properties, plants, and equipment, net $ 2,467 $ 2,592 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table details the changes in the carrying amount of goodwill: Engine Products Fastening Systems Engineered Structures Forged Wheels Total Balances at December 31, 2019 Goodwill $ 2,883 $ 1,607 $ 289 $ 7 $ 4,786 Accumulated impairment losses (719) — — — (719) Goodwill, net 2,164 1,607 289 7 4,067 Impairment (See Note U ) — — (2) — (2) Translation and other 24 13 — — 37 Transfer from Engine Products to Engineered Structures (1) (17) — 17 — — Balances at December 31, 2020 Goodwill 2,890 1,620 306 7 4,823 Accumulated impairment losses (719) — (2) — (721) Goodwill, net 2,171 1,620 304 7 4,102 Impairment (See Note U ) — (4) — — (4) Translation and other (22) (9) — — (31) Balances at December 31, 2021 Goodwill 2,868 1,611 306 7 4,792 Accumulated impairment losses (719) (4) (2) — (725) Goodwill, net $ 2,149 $ 1,607 $ 304 $ 7 $ 4,067 (1) In the first quarter of 2020, the Savannah operations was transferred from the Engine Products segment to the Engineered Structures segment and, as a result, goodwill of $17 was reallocated. During the 2021 annual review of goodwill in the fourth quarter, management elected to perform qualitative assessments on the Engine Products and Forged Wheels reporting units and performed quantitative impairment tests on the Engineered Structures and Fastening Systems reporting units. The estimated fair values for the Engineered Structures and Fastening Systems reporting units exceeded their respective carrying values by approximately 30% and 50%, respectively; thus, there were no goodwill impairments. Under the quantitative impairment test, the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. Howmet uses a discounted cash flow (“DCF”) model to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales growth, production costs, capital spending, and discount rate. Assumptions can vary among the reporting units. Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years. The WACC rate for the individual reporting units is estimated with the assistance of valuation experts. The annual goodwill impairment tests in the fourth quarter of 2021, 2020, and 2019 indicated that goodwill was not impaired for any of the Company’s reporting units. If actual results or external market factors decline significantly from management’s estimates, future goodwill impairment charges (or the amount by which the carrying amount exceeds the reporting unit’s fair value without exceeding the total amount of goodwill allocated to that reporting unit) may be necessary and could be material. 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 had been and were expected to be negatively impacted, compared to 2019, 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 of 2020 for the Engineered Structures reporting unit and concluded that although 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. Since the first quarter of 2020, there have been no indicators of impairment identified for the Engineered Structures reporting unit or any other reporting units or indefinite-lived intangible assets. On January 1, 2020, management performed a quantitative impairment test of the Engines Products and Engineered Structures segments in connection with the Savannah business transfer. 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. In the second quarter of 2019, the Company performed an interim impairment evaluation of goodwill for Engine Products in connection with the impairment of the long-lived assets of the Disks asset group. The estimated fair value of the Engine Products reporting unit was substantially in excess of its carrying value; thus, there was no impairment of goodwill. Other intangible assets were as follows: December 31, 2021 Gross carrying amount Accumulated Intangibles, net Computer software $ 206 $ (175) $ 31 Patents and licenses 67 (65) 2 Other intangibles 686 (202) 484 Total amortizable intangible assets 959 (442) 517 Indefinite-lived trade names and trademarks 32 — 32 Total intangible assets, net $ 991 $ (442) $ 549 December 31, 2020 Gross carrying amount Accumulated Intangibles, net Computer software $ 194 $ (169) $ 25 Patents and licenses 67 (65) 2 Other intangibles 700 (188) 512 Total amortizable intangible assets 961 (422) 539 Indefinite-lived trade names and trademarks 32 — 32 Total intangible assets, net $ 993 $ (422) $ 571 During the second quarter of 2019, the Company recorded a charge of $197 for intangible asset impairments associated with the Disks long-lived asset group which was recorded in Restructuring and other charges in the Statement of Consolidated Operations. See Note O for additional details. Computer software consists primarily of software costs associated with enterprise business solutions across Howmet's businesses. Amortization expense related to the intangible assets recorded in Provision for depreciation and amortization in the Statement of Consolidated Operations was $36, $40, and $58 for the years ended December 31, 2021, 2020, and 2019, respectively, and is expected to be in the range of approximately $34 to $39 annually from 2022 to 2026. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Operating lease cost, which included short-term leases and variable lease payments and approximated cash paid, was $63, $67, and $84 in 2021, 2020, and 2019, respectively. Operating lease right-of-use assets and lease liabilities in the Consolidated Balance Sheet were as follows: December 31, 2021 2020 Right-of-use assets classified in Other noncurrent assets $ 108 $ 131 Current portion of lease liabilities classified in Other current liabilities $ 33 $ 38 Long-term portion of lease liabilities classified in Other noncurrent liabilities and deferred credits 81 100 Total lease liabilities $ 114 $ 138 Future minimum contractual operating lease obligations were as follows at December 31, 2021: 2022 $ 38 2023 28 2024 19 2025 12 2026 10 Thereafter 27 Total lease payments $ 134 Less: Imputed interest (20) Present value of lease liabilities $ 114 December 31, 2021 2020 2019 Right-of-use assets obtained in exchange for operating lease obligations $ 16 $ 35 $ 26 Weighted-average remaining lease term in years 6 6 6 Weighted-average discount rate 5.4 % 5.6 % 5.9 % |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt. December 31, 2021 2020 5.400% Notes, due 2021 (1) $ — $ 361 5.870% Notes, due 2022 (2) — 476 5.125% Notes, due 2024 1,150 1,250 6.875% Notes, due 2025 600 1,200 5.900% Notes, due 2027 625 625 6.750% Bonds, due 2028 300 300 3.000% Notes due 2029 700 — 5.950% Notes, due 2037 625 625 4.750% Iowa Finance Authority Loan, due 2042 250 250 Other (3) (18) (12) 4,232 5,075 Less: amount due within one year 5 376 Total long-term debt $ 4,227 $ 4,699 (1) Redeemed on January 15, 2021. (2) Redeemed on May 3, 2021. (3) Includes various financing arrangements related to subsidiaries, unamortized debt discounts and unamortized debt issuance costs related to outstanding notes and bonds listed in the table above. The principal amount of long-term debt maturing in each of the next five years is $1,150 in 2024, $600 in 2025, and no long-term debt maturities in each of 2022, 2023, and 2026. Public Debt. In the third and fourth quarters of 2021, the Company repurchased an additional $100 aggregate principal amount of its 5.125% Notes due 2024 in the open market and paid approximately $111, including an early termination premium and accrued interest of approximately $10 and $1, respectively, which were recorded in Loss on debt redemption and Interest expense, net, respectively, in the Statement of Consolidated Operations. On September 2, 2021, the Company completed a cash tender offer and repurchased approximately $600 aggregate principal amount of its 6.875% Notes due 2025 (the “6.875% Notes”). The amount of tender premium and accrued interest associated with the notes accepted for settlement were $105 and $14, respectively, which were recorded in Loss on debt redemption and Interest expense, net, respectively, in the Statement of Consolidated Operations. On September 1, 2021, the Company completed an offering of $700 aggregate principal amount of 3.000% Notes due 2029, the proceeds of which were used to fund the cash tender offer noted above and to pay related transaction fees, including applicable premiums and expenses. On May 3, 2021, the Company completed the early redemption of all the remaining $476 aggregate principal amount of its 5.870% Notes due 2022 (the “ 5.870% Notes”) and paid an aggregate of $503, including $5 of accrued interest. The Company also incurred an early termination premium and other costs of $23, which was recorded in Loss on debt redemption in the Statement of Consolidated Operations. On January 15, 2021 the Company completed the early redemption of all the remaining $361 of its 5.400% Notes due 2021 (the “ 5.400% Notes ” ) at par and paid $5 in accrued interest. On May 21, 2020, the Company completed a cash tender offer and repurchased $589 and $151 of principa l amount of the 5.400% Notes and its 5.870% Notes, respectively. The amount of early tender premium and accrued interest associated with the notes accepted for early settlement were $24 and $4, respectively, which were recorded in Loss on debt redemption and Interest expense, net, respectively, in the Statement of Consolidated Operations. On April 24, 2020, the Company completed an offering of $1,200 aggregate principal amount of 6.875% Notes, the proceeds of which have been used to fund the May 2020 cash tender offers noted above and to pay related transaction fees, including applicable premiums and expenses, with the remaining amount to be used for general corporate purposes. The Company incurred deferred financing costs of $14 associated with the issuance in the second quarter of 2020. On April 6, 2020, the Company completed the early redemption of all $1,000 of its 6.150% Notes due 2020 (the “6.150% Notes”) and the early partial redemption of $300 of its 5.400% Notes. Holders of the 6.150% Notes were paid an aggregate of $1,020 and holders of the 5.400% Notes were paid an aggregate of $315, plus accrued and unpaid interest up to, but not including, the redemption date. The Company incurred early termination premium and accrued interest of $35 and $17, respectively, which were recorded in Loss on debt redemption and Interest expense, net, respectively, in the Statement of Consolidated Operations. The Company has the option to redeem certain of its notes and bonds in whole or part, at any time at a redemption price equal to the greater of principal amount or the sum of the present values of the remaining scheduled payments, discounted using a defined treasury rate plus a spread, plus in either case accrued and unpaid interest to the redemption date. Credit Facility. On September 28, 2021, the Company amended and restated its Five-Year Revolving Credit Agreement (as so amended and restated, the “Credit Agreement”). Capitalized terms used in this “Credit Facility” section but not otherwise defined shall have the meanings given to such terms in the Credit Agreement. The Credit Agreement provides a $1,000 senior unsecured revolving credit facility (the “Credit Facility”) that matures on September 28, 2026, unless extended or earlier terminated in accordance with the provisions of the Credit Agreement. Howmet may make two one-year extension requests during the term of the Credit Facility, subject to the lender consent requirements set forth in the Credit Agreement. Subject to the terms and conditions of the Credit Agreement, the Company may from time to time request increases in lender commitments under the Credit Facility, not to exceed $500 in aggregate principal amount, and may also request the issuance of letters of credit, subject to a letter of credit sublimit of $500 of the Credit Facility. Under the provisions of the Credit Agreement, based on Howmet’s current long-term debt ratings, Howmet pays an annual fee of 0.23% of the total commitment to maintain the Credit Facility. The Credit Facility is unsecured and amounts payable under it will rank pari passu with all other unsecured, unsubordinated indebtedness of Howmet. Borrowings under the Credit Facility may be denominated in U.S. dollars or euros. Loans will bear interest at a base rate or a rate equal to LIBOR (subject to the Replacement Benchmark in accordance with the terms of the Credit Agreement), plus, in each case, an applicable margin based on the credit ratings of Howmet’s outstanding senior unsecured long-term debt. Based on Howmet’s current long-term debt ratings, the applicable margin on base rate loans and LIBOR loans would be 0.40% and 1.40% per annum. The applicable margin is subject to change based on the Company’s long-term debt ratings. Loans may be prepaid without premium or penalty, subject to customary breakage costs. The obligation of Howmet to pay amounts outstanding under the Credit Facility may be accelerated upon the occurrence of an “Event of Default” as defined in the Credit Agreement. Such Events of Default include, among others, (a) non-payment of obligations; (b) breach of any representation or warranty in any material respect; (c) non-performance of covenants and obligations; (d) with respect to other indebtedness in a principal amount in excess of $100, a default thereunder that causes such indebtedness to become due prior to its stated maturity or a default in the payment at maturity of any principal of such indebtedness; (e) the bankruptcy or insolvency of Howmet; and (f) a change in control of Howmet. Under the Credit Agreement, the Company’s ratio of Consolidated Net Debt to Consolidated EBITDA as of the end of each fiscal quarter for the period of the four fiscal quarters of the Company most recently ended, is required to be no greater than 3.50 to 1.00; provided, however, that during the Covenant Relief Period through December 31, 2022 (unless the Company elects to terminate the Covenant Relief Period earlier in accordance with the Credit Agreement), the Company’s Consolidated Net Debt to Consolidated EBITDA ratio cannot exceed the levels set forth below: No greater than (i) for the quarter ending December 31, 2021 4.75 to 1.00 (ii) for the quarter ending March 31, 2022 4.50 to 1.00 (iii) for the quarter ending June 30, 2022 4.50 to 1.00 (iv) for the quarter ending September 30, 2022 4.25 to 1.00 (v) for the quarter ending December 31, 2022 3.75 to 1.00 During the Covenant Relief Period, common stock dividends and share repurchases (see Note J ) are permitted only if no loans under the Credit Agreement are outstanding at the time and were limited to an aggregate amount not to exceed $450 during the year ended December 31, 2021 and are limited to an aggregate amount not to exceed $500 during the year ending December 31, 2022. The Credit Agreement includes additional covenants, including, among others, (a) limitations on Howmet’s ability to incur liens securing indebtedness for borrowed money, (b) limitations on Howmet’s ability to consummate a merger, consolidation or sale of all or substantially all of its assets, and (c) limitations on Howmet’s ability to change the nature of its business. There were no amounts outstanding under the Credit Agreement at December 31, 2021 and 2020 , and no amounts were borrowed during 2021, 2020, or 2019 under the Credit Agreement. In addition to the Credit Agreement, the Company had several other credit agreements that provided a borrowing capacity of $640 as of December 31, 2019, and all of which expired in 2020. In 2020 , nothing was borrowed or repaid under these arrangements. In 2019 , Howmet borrowed and repaid $400 under the respective credit arrangements. The weighted-average interest rate and weighted-average days outstanding of the respective borrowings during 2019 was 3.7% and 49 days, respectively. The purpose of any borrowings under these credit arrangements was to provide for working capital requirements and for other general corporate purposes. Short-Term Debt. At December 31, 2021 and 2020 , short-term debt was $5 and $14, respectively, substantially all of which related to accounts payable settlement arrangements with certain vendors and third-party intermediaries. These arrangements provide that, at the vendor’s request, the third-party intermediary advances the amount of the scheduled payment to the vendor, less an appropriate discount, before the scheduled payment date, and Howmet makes payment to the third-party intermediary on the date stipulated in accordance with the commercial terms negotiated with its vendors. Howmet records imputed interest related to these arrangements in Interest expense, net in the Statement of Consolidated Operations. |
Other Financial Instruments
Other Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments | Other Financial Instruments Fair Value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. The carrying values of Cash and cash equivalents, restricted cash, derivatives, noncurrent receivables, and Short-term debt included in the Consolidated Balance Sheet approximate their fair value. The Company holds exchange-traded fixed income securities which are considered available-for-sale securities that are carried at fair value which is based on quoted market prices which are classified in Level 1 of the fair value hierarchy and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheet. The fair value of Long-term debt, less amounts due within one year was based on quoted market prices for public debt and on interest rates that are currently available to Howmet for issuance of debt with similar terms and maturities for non-public debt. The fair value amounts for all Long-term debt were classified in Level 2 of the fair value hierarchy. 2021 2020 December 31, Carrying Fair Carrying Fair Long-term debt, less amounts due within one year $ 4,227 $ 4,707 $ 4,699 $ 5,426 Restricted cash was $2, $1, and $55 (see Note U ) in 2021, 2020, and 2019 , respectively, and was recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheet. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Cash Flow Information Cash paid for interest and income taxes for both continuing and discontinued operations was as follows: 2021 2020 2019 Interest, net of amounts capitalized $ 267 $ 401 $ 340 Income taxes, net of amounts refunded $ 53 $ (33) $ 122 The Company incurred capital expenditures that remain unpaid at December 31, 2021, 2020, and 2019 of $49, $50, and $133 respectively, which result in cash outflows for investing activities in subsequent periods. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures 2021 Divestitures On June 1, 2021, the Company completed the sale of a small manufacturing plant in France within the Fastening Systems segment for $10 (of which $8 of cash was received in the second quarter of 2021). An agreement to sell was reached on March 15, 2021, which resulted in a charge of $4 related to the non-cash impairment of the net book value of the business, primarily goodwill, in the first quarter of 2021 which was recorded in Restructuring and other charges in the Statement of Consolidated Operations. 2020 Divestiture On January 31, 2020, the Company reached an agreement to sell a small manufacturing plant in the U.K. within the Engineered Structures segment for $12 in cash, and therefore was classified as held for sale. As a result of entering into the agreement, a charge of $12 was recognized related to a non-cash impairment of the net book value of the business, primarily properties, plants, and equipment in the first quarter of 2020, which was recorded in Restructuring and other charges in the Statement of Consolidated Operations. As the sale did not close, the Company changed the classification from held for sale to held for use in the second quarter of 2020 and recorded these assets at their lower of carrying value (assuming no initial reclassification for held for sale was made) or fair value. The result was a reversal of $7 related to a non-cash impairment in the second quarter of 2020. These charges were recorded in Restructuring and other charges in the Statement of Consolidated Operations. 2019 Divestitures On May 31, 2019, the Company sold a small additive manufacturing facility within the Engineered Structures segment for $1 in cash, which resulted in a loss of $13 recorded in Restructuring and other charges in the Statement of Consolidated Operations in 2019. On August 15, 2019, the Company sold inventories and properties, plants, and equipment related to a small energy business within the Engineered Structures segment for $13 in cash. The Company recognized a charge of $10 related to inventory impairment and recorded the charge in Cost of goods sold in the Statement of Consolidated Operations in 2019. On December 1, 2019, the Company completed the sale of its forgings business in the United Kingdom (U.K.) for $64 in cash, which resulted in a loss on sale of $46 which was recorded in Restructuring and other charges in the Statement of Consolidated Operations in 2019. The Company settled certain post-closing adjustments which resulted in a $5 reduction in the purchase price and an additional loss of sale which was recorded in Restructuring and other charges in the Statement of Consolidated Operations in 2020. The sale was subject to certain tax post-closing adjustments. Of the cash proceeds received, $53 was recorded as Restricted cash within Prepaid expenses and other current assets on the Consolidated Balance Sheet at December 31, 2019 as its use is subject to restriction by the U.K. pension authority until certain U.K. pension plan changes have been |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Contingencies Environmental Matters. Howmet participates in environmental assessments and cleanups at more than 30 locations. These include owned or operating facilities and adjoining properties, previously owned or operated facilities and adjoining properties, and waste sites, including Superfund (Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”)) sites. A liability is recorded for environmental remediation when a cleanup program becomes probable and the costs can be reasonably estimated. As assessments and cleanups proceed, the liability is adjusted based on progress made in determining the extent of remedial actions and related costs. The liability can change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, and technological changes, among others. The Company's remediation reserve balance was $15 and $10 at December 31, 2021 and 2020 , respectively, recorded in Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet (of which $6 and $5, respectively, were classified as a current liability), and reflects the most probable costs to remediate identified environmental conditions for which costs can be reasonably estimated. The increase in 2021 is primarily associated with site monitoring costs at previously owned properties in California, which will determine if any additional remediation is required. Payments related to remediation expenses applied against the reserve were $2 in each of 2021 and 2020, and included expenditures currently mandated, as well as those not required by any regulatory authority or third party. Included in annual operating expenses are the recurring costs of managing hazardous substances and environmental programs. These costs are estimated to be less than 1% of Cost of goods sold. Tax. As pre viously reported, in July 2013, following a Spanish corporate income tax audit covering the 2006 through 2009 tax years, an assessment was received mainly disallowing certain interest deductions claimed by a Spanish consolidated tax group owned by the Company. The Company appealed this assessment to Spain's Central Tax Administrative Court, and subsequently to Spain's National Court, each of which was denied. The Company then appealed the decision to the Supreme Court of Spain. In November 2020, the Supreme Court of Spain rendered a decision in favor of the taxpayer, removing the assessment in its entirety. The decision is final and cannot be further appealed. As a result of the favorable decision, in the fourth quarter of 2020, the Company released an income tax reserve, including interest, of $64 (€54), which was recorded in Provision (benefit) for income taxes in the Consolidated Statement of Operations, that was previously established in the third quarter of 2018. In addition, the Company reversed a combined indemnification receivable of $53 (€45) for Alcoa Corporation's 49% share and Arconic Corporation's 33.66% share of the total reserve, which was recorded in Other expense, net in the Consolidated Statement of Operations, that were previously established pursuant to the October 31, 2016 and March 31, 2020 Tax Matters Agreements, respectively. As of the end of 2020, the Company no longer has a balance recorded for this matter. Indemnified Matters. The Separation and Distribution Agreement, dated October 31, 2016, entered into between the Company and Alcoa Corporation in connection with the Alcoa Inc. Separation Transaction, provides for cross-indemnities between the Company and Alcoa Corporation for claims subject to indemnification. The Separation and Distribution Agreement, dated March 31, 2020, entered into between the Company and Arconic Corporation in connection with the Arconic Inc. Separation Transaction, provides for cross-indemnities between the Company and Arconic Corporation for claims subject to indemnification. Among other claims that are covered by these indemnities, Arconic Corporation indemnifies the Company (f/k/a Arconic Inc. and f/k/a Alcoa Inc.) for all potential liabilities associated with the fire that occurred at the Grenfell Tower in London, U.K. on June 14, 2017 (“Grenfell Fire”), including the following: (i) Regulatory Investigations . Arconic Architectural Products SAS ("AAP SAS") (now a subsidiary of Arconic Corporation) supplied Reynobond PE to its customer who used the product as one component of the overall cladding system on Grenfell Tower. Regulatory Investigations into the overall Grenfell Fire are being conducted, including a criminal investigation by the London Metropolitan Police Service and a Public Inquiry by the British government (regarding which AAP SAS is a participant). (ii) United Kingdom Litigation . On December 23, 2020, survivors and estates of decedents of the Grenfell Fire filed suit against 23 defendants, including the Company. No substantive allegations or requests for relief have been provided. The suits are stayed with a conference to be held after April 4, 2022. (iii) Behrens et al. v. Arconic Inc. et al. (United States District Court for the Eastern District of Pennsylvania) . On June 6, 2019, 247 survivors and estates of decedents of the Grenfell Fire filed a complaint against Arconic Inc., Alcoa Inc. and Arconic Architectural Products, LLC (now a subsidiary of Arconic Corporation), among others, for product liability and wrongful death. Plaintiffs seek monetary damages exceeding $75,000 (amount not in millions) for each plaintiff. On September 16, 2020, the court dismissed the U.S. case, determining that the U.K. is the appropriate jurisdiction for the case. Plaintiffs are appealing. (iv) Howard v. Arconic Inc. et al. (United States District Court for the Western District of Pennsylvania) . In 2017, two purported class actions were filed against Arconic Inc., Klaus Kleinfeld and other former Arconic Inc. executives and directors, and certain banks. The actions, which later were consolidated, allege violations of the federal securities laws relating to the Grenfell Fire. On June 23, 2021, the court ruled that certain claims related to a particular registration statement, other SEC filings, product brochures and websites can proceed and dismissed all other claims with prejudice. A status conference was held before the court on January 11, 2022 during which the court heard argument from both parties on the pending motion for certification of an interlocutory appeal. The motion remains pending. (v) Raul v. Albaugh, et al. (United States District Court for the District of Delaware) . On June 22, 2018, a derivative complaint was filed nominally on behalf of Arconic Inc. by a purported Arconic Inc. stockholder against the then members of Arconic Inc.’s Board of Directors, Klaus Kleinfeld and Ken Giacobbe, naming Arconic Inc. as a nominal defendant. The complaint asserts claims under federal securities laws, most of which are similar to those in Howard, claims under Delaware state law for breaches of fiduciary duty, gross mismanagement and abuse of control, as well as allegations that the defendants improperly authorized the sale of Reynobond PE for unsafe uses. The case has been stayed until the final resolution of the Howard case and the Regulatory Investigations. (vi) Stockholder Demands. Following the Grenfell Fire, the then Arconic Inc. Board of Directors (the “Board”) received letters, purportedly sent on behalf of stockholders, reciting allegations similar to the Howard and Raul cases and demanding that the Board authorize Arconic Inc. to initiate litigation against members of management, the Board and others. On May 28, 2019, the Board adopted the findings and recommendations of its Special Litigation Committee and rejected the stockholders’ demands. On June 28, 2021, one of the stockholders whose demand was rejected asked the current Howmet Board of Directors to reconsider the decision of the Board, which was declined. On August 4, 2021, another stockholder whose demand was rejected requested books and records relating to, among other things, the Board’s decision to reject his initial demand, which the Company declined. There has been no further correspondence with either stockholder. Legal Proceedings. Lehman Brothers International (Europe) (“LBIE”) Proceeding . On June 26, 2020, LBIE filed formal proceedings against two Firth Rixson entities (“Firth”) in the High Court of Justice, Business and Property Courts of England and Wales. The proceedings relate to interest rate swap transactions that Firth entered into with LBIE in 2007 to 2008. In 2008, LBIE commenced insolvency proceedings, an event of default under the agreements, rendering LBIE unable to meet its obligations under the swaps and suspending Firth’s payment obligations. In the court proceedings, LBIE seeks a declaration that Firth has a contractual obligation to pay the amounts owing to LBIE under the agreements upon its emergence from insolvency proceedings which is expected to occur by 2023, which LBIE claims to be approximately $64, plus applicable interest. Firth will continue to maintain its position that multiple events of default under the agreements related to LBIE’s insolvency proceeding cannot be cured or continue indefinitely, which the Company believes are meritorious defenses. A virtual hearing in this matter occurred on January 13 and 14, 2021 in London, England, and a ruling has yet to be issued to date. Given the importance of the case for LBIE and Firth, it is expected that irrespective of the outcome of the most recent hearing, the case will be appealed and any requirement for the parties to pay amounts under the agreements will be stayed. An appeal of the case could continue into 2023. The Company intends to vigorously defend against these claims. Other. In addition to the matters discussed above, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against the Company, including those pertaining to environmental, product liability, safety and health, employment, tax and antitrust matters. While the amounts claimed in these other matters may be substantial, the ultimate liability cannot currently be determined because of the considerable uncertainties that exist. Therefore, it is possible that the Company’s liquidity or results of operations in a period could be materially affected by one or more of these other matters. However, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the results of operations, financial position or cash flows of the Company. Commitments Purchase Obligations. Howmet has entered into purchase commitments for raw materials, energy and other goods and services, which total $229 in 2022, $95 in 2023, $80 in 2024, $2 in 2025, and none in 2026 and thereafter. Operating Leases. See Note Q for the operating lease future minimum contractual obligations. Guarantees. At December 31, 2021, Howmet had outstanding bank guarantees related to tax matters, outstanding debt, workers’ compensation, environmental obligations, energy contracts, and customs duties, among others. The total amount committed under these guarantees, which expire at various dates between 2022 and 2040, was $15 at December 31, 2021. Pursuant to the Separation and Distribution Agreement, dated as of October 31, 2016, between Howmet and Alcoa Corporation, Howmet was required to provide certain guarantees for Alcoa Corporation, which had a fair value of $6 and $12 at December 31, 2021 and 2020 , respectively, and were included in Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet. The remaining guarantee, for which the Company and Arconic Corporation are secondarily liable in the event of a payment default by Alcoa Corporation, relates to a long-term energy supply agreement that expires in 2047 at an Alcoa Corporation facility. The Company currently views the risk of an Alcoa Corporation payment default on its obligations under the contract to be remote. The Company and Arconic Corporation are required to provide a guarantee up to an estimated present value amount of approximately $1,406 and $1,398 at December 31, 2021 and 2020, respectively, in the event of an Alcoa Corporation payment default. In December 2020 and again in December 2021, a surety bond with a limit of $80 relating to this guarantee was obtained by Alcoa Corporation to protect Howmet's obligation. This surety bond will be renewed on an annual basis by Alcoa Corporation. Letters of Credit. The Company has outstanding letters of credit, primarily related to workers’ compensation, environmental obligations, and leasing obligations. The total amount committed under these letters of credit, which automatically renew or expire at various dates, mostly in 2022, was $119 at December 31, 2021 . Pursuant to the Separation and Distribution Agreements between the Company and Arconic Corporation and between the Company and Alcoa Corporation, the Company is required to retain letters of credit of $53 (which are included in the $119 in the above paragraph) that had previously been provided related to the Company, Arconic Corporation, and Alcoa Corporation workers’ compensation claims that occurred prior to the respective separation transactions of April 1, 2020 and November 1, 2016. Arconic Corporation and Alcoa Corporation workers’ compensation and letters of credit fees paid by the Company are proportionally billed to, and are reimbursed by, Arconic Corporation and Alcoa Corporation, respectively. Also, the Company was required to provide letters of credit for certain Arconic Corporation environmental obligations and, as a result, the Company has $17 of outstanding letters of credit relating to such liabilities (which are included in the $119 in the above paragraph). Less than $1 of these outstanding letters of credit are pending cancellation and will be deemed cancelled once returned by the beneficiary. Arconic Corporation has issued surety bonds to cover these environmental obligations. Arconic Corporation is being billed for these letter of credit fees paid by the Company and will reimburse the Company for any payments made under these letters of credit. Surety Bonds. The Company has outstanding surety bonds primarily related to tax matters, contract performance, workers’ compensation, environmental-related matters, and customs duties. The total amount committed under these annual surety bonds, which expire and automatically renew at various dates, primarily in 2022 and 2023, was $47 at December 31, 2021. Pursuant to the Separation and Distribution Agreements between the Company and Arconic Corporation and between the Company and Alcoa Corporation, the Company is required to provide surety bonds of $25 (which are included in the $47 in the above paragraph) that had previously been provided related to the Company, Arconic Corporation, and Alcoa Corporation workers’ compensation claims paid that occurred prior to the respective separation transactions of April 1, 2020 and November 1, 2016. Arconic Corporation and Alcoa Corporation workers’ compensation claims and surety bond fees paid by the Company are proportionately billed to, and are reimbursed by, Arconic Corporation and Alcoa Corporation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management evaluated all activity of Howmet and concluded that no subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements, except as noted below: See Note J for the common stock repurchases made subsequent to the fourth quarter of 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The Consolidated Financial Statements of Howmet Aerospace Inc. (formerly known as Arconic Inc.) and subsidiaries (“Howmet” or the “Company” or “we”) are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and require management to make certain judgments, estimates, and assumptions. These estimates are based on historical experience and, in some cases, assumptions based on current and future market experience, including considerations relating to the impact of the global COVID-19 pandemic. The impact of COVID-19 is rapidly changing and of unknown duration and macroeconomic impact and as a result, these considerations remain highly uncertain. We have made our best estimates using all relevant information available at the time, but it is possible that our estimates will differ from our actual results and affect the Consolidated Financial Statements in future periods and potentially require adverse adjustments to the recoverability of goodwill, intangible and long-lived assets, the realizability of deferred tax assets, and other judgments and estimations and assumptions. These may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. They also may affect the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates upon subsequent resolution of identified matters. Certain amounts in previously issued financial statements were reclassified to conform to the current period presentation. The separation of Arconic Inc. into two standalone, publicly-traded companies, Howmet Aerospace Inc. and Arconic Corporation, (the “Arconic Inc. Separation Transaction”) occurred on April 1, 2020. The Engineered Products and Forgings (“EP&F”) segment remained in the existing company which was renamed Howmet Aerospace Inc. The Global Rolled Products (“GRP”) segment was the Spin Co. and was named Arconic Corporation. In the second quarter of 2020, in conjunction with the Arconic Inc. Separation Transaction, the Company realigned its operations by separating the former EP&F segment into four new segments: Engine Products, Fastening Systems, Engineered Structures and Forged Wheels. See Note D for further details. The financial results of Arconic Corporation for all periods prior to the Arconic Inc. Separation Transaction have been retrospectively reflected in the Statement of Consolidated Operations as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The cash flows, comprehensive income, and equity related to Arconic Corporation have not been segregated and are included in the Statement of Consolidated Cash Flows, Statement of Consolidated Comprehensive Income, and Statement of Changes in Consolidated Equity, respectively, for all periods prior to the Arconic Inc. Separation Transaction. See Note C for additional information related to the Arconic Inc. Separation Transaction and discontinued operations. The Company derived approximately 60%, 69%, and 71% of its revenue from products sold to the aerospace market for the years ended December 31, 2021, 2020, and 2019. As a result of the global COVID-19 pandemic and its impact on the aerospace industry to date, the possibility exists that there could be a sustained impact to our operations and financial results. Since the start of the pandemic, certain original equipment manufacturer (“OEM”) customers have reduced production or suspended manufacturing operations in North America and Europe on a temporary basis. While the pandemic resulted in the temporary closure of a small number of the Company's manufacturing facilities during 2020, all of our manufacturing facilities are currently operating. Since the duration of the pandemic is uncertain, management has taken a series of actions to address the financial impact, including fixed and variable cost reductions, such as headcount reductions in certain segments, and reducing the level of capital expenditures to preserve cash and maintain liquidity. |
Principles of Consolidation | Principles of Consolidation. The Consolidated Financial Statements include the accounts of Howmet Aerospace Inc. and companies in which Howmet Aerospace Inc. has a controlling interest. Intercompany transactions have been eliminated. Investments in affiliates in which Howmet Aerospace Inc. cannot exercise significant influence that do not have readily determinable fair values are accounted for at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Management also evaluates whether a Howmet Aerospace Inc. entity or interest is a variable interest entity and whether Howmet Aerospace Inc. is the primary beneficiary. Consolidation is required if both of these criteria are met. Howmet Aerospace Inc. does not have any variable interest entities requiring consolidation. |
Cash Equivalents | Cash Equivalents. Cash equivalents are highly liquid investments purchased with an original maturity of three months or less. |
Inventory Valuation | Inventory Valuation. Inventories are carried at the lower of cost or net realizable value with the cost of inventories determined under a combination of the first-in, first-out (“FIFO”), last-in, first-out (“LIFO”), and average-cost methods. See Note N for further details. |
Properties, Plants, and Equipment | Properties, Plants, and Equipment. Properties, plants, and equipment are recorded at cost. Depreciation is recorded principally on the straight-line method at rates based on the estimated useful lives of the assets. The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery and equipment Engine Products 30 17 Fastening Systems 27 17 Engineered Structures 28 19 Forged Wheels 29 18 Gains or losses from the sale of asset groups or properties are generally recorded in Restructuring and other charges while the sale of individual assets are recorded in Other expense, net (see policy below for assets classified as held for sale and discontinued operations). Repairs and maintenance are charged to expense as incurred. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable. Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount. An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows. The amount of the impairment loss to be recorded is measured as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (“DCF”) model. The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of the assets also require significant judgments. See Note O for further details. |
Goodwill and Other Intangible Assets | Goodwill. Goodwill is not amortized; instead, it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or realign a business. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. Howmet has four reporting units composed of the Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels segments. In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the quantitative impairment test (described below), otherwise no further analysis is required. The qualitative evaluation is an assessment of factors, including reporting unit-specific operating results as well as industry, market, and general economic conditions. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. Howmet determines annually, based on facts and circumstances, which of its reporting units will be subject to the qualitative assessment. Under the qualitative assessment, various events and circumstances (or factors) that would affect the estimated fair value of a reporting unit are identified (similar to impairment indicators above). Furthermore, management considers the results of the most recent quantitative impairment test completed for a reporting unit and compares the weighted average cost of capital (“WACC”) between the current and prior years for each reporting unit. For those reporting units where a qualitative assessment is either not performed or for which the conclusion is that an impairment is more likely than not, a quantitative impairment test will be performed. Howmet's policy is that a quantitative impairment test be performed for each reporting unit at least once during every three-year period. Other Intangible Assets. Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited. The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other intangible assets Engine Products 9 34 Fastening Systems 6 23 Engineered Structures 4 10 Forged Wheels 4 24 |
Leases | Leases. The Company determines whether a contract contains a lease at inception. The Company leases land and buildings, plant equipment, vehicles, and computer equipment which have been classified as operating leases. Certain real estate leases include one or more options to renew; the exercise of lease renewal options is at the Company’s discretion. The Company includes renewal option periods in the lease term when it is determined that the options are reasonably certain to be exercised. Certain of Howmet's real estate lease agreements include rental payments that either have fixed contractual increases over time or adjust periodically for inflation. Certain of the Company's lease agreements include variable lease payments. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and is recorded as lease cost in the period incurred. The Company also rents or subleases certain real estate to third parties, which is not material to the consolidated financial statements. Operating lease right-of-use assets and lease liabilities with an initial term greater than 12 months are recorded on the balance sheet at the present value of the future minimum lease payments over the lease term at the lease commencement date and are recognized as lease expense on a straight-line basis over the lease term. The Company uses an incremental collateralized borrowing rate based on the information available at the lease commencement date in determining the present value of future payments, as most of its leases do not provide an implicit rate. The operating lease right-of-use assets also include any lease prepayments made and are reduced by lease incentives and accrued exit costs. |
Environmental Matters | Environmental Matters. Expenditures for current operations are expensed or capitalized, as appropriate. Expenditures relating to existing conditions caused by past operations, which will not contribute to future sales, are expensed. Liabilities are recorded when remediation costs are probable and can be reasonably estimated. The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses. Estimates are generally not discounted or reduced by potential claims for recovery. Claims for recovery are recognized when probable and as agreements are reached with third parties. The estimates also include costs related to other potentially responsible parties to the extent that Howmet has reason to believe such parties will not fully pay their proportionate share. The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations. |
Litigation and Contingent Liabilities | Litigation and Contingent Liabilities. From time to time, we are involved in various lawsuits, claims, investigations, and proceedings. These matters may include speculative claims for substantial or indeterminate amounts of damages. Management determines the likelihood of an unfavorable outcome based on many factors, such as the nature of the matter, available defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and success of appeals processes, and the outcome of similar historical matters, among others. If an unfavorable outcome is deemed probable and the amount of the potential loss can be estimated, the most reasonable loss estimate is recorded. If an unfavorable outcome of a matter is deemed probable but the loss is not reasonably estimable, or if an unfavorable outcome is deemed reasonably possible, then the matter is disclosed but no liability is recorded. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s judgment regarding the likelihood of an unfavorable outcome or the estimate of a potential loss. |
Revenue Recognition | Revenue Recognition. The Company's contracts with customers are comprised of acknowledged purchase orders incorporating the Company’s standard terms and conditions, or for larger customers, may also generally include terms under negotiated multi-year agreements. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. The Company produces fastening systems; seamless rolled rings; investment castings, including airfoils; extruded, machined and formed aircraft parts; and forged aluminum commercial vehicle wheels. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). An invoice for payment is issued at time of shipment. Our segments set commercial terms on which Howmet sells products to its customers. These terms are influenced by industry custom, market conditions, product line (specialty versus commodity products), and other considerations. In certain circumstances, Howmet receives advanced payments from its customers for product to be delivered in future periods. These advanced payments are recorded as deferred revenue until the product is delivered and title and risk of loss have passed to the customer in accordance with the terms of the contract. Deferred revenue is included in Other current liabilities and Other noncurrent liabilities and deferred credits in the Consolidated Balance Sheet. Advanced payments were $46 and $85 at December 31, 2021 and 2020, respectively. |
Income Taxes | Income Taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, the provision for income taxes represents income taxes paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid, and result from differences between the financial and tax bases of Howmet’s assets and liabilities and are adjusted for changes in tax rates and tax laws when enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, projections of future profitability within the carryforward period, including from tax planning strategies, and Howmet’s experience with similar operations. Existing favorable contracts and the ability to sell products into established markets are additional positive evidence. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of a deferred tax asset based on existing projections of income. Deferred tax assets for which no valuation allowance is recorded may not be realized upon changes in facts and circumstances, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. Deferred tax assets and liabilities are also remeasured to reflect changes in underlying tax rates due to law changes and the granting and lapse of tax holidays. It is Howmet’s policy to apply a tax law ordering approach when considering the need for a valuation allowance on net operating losses expected to offset Global Intangible Low-Taxed Income (“GILTI”) income inclusions. Under this approach, reductions in cash tax savings are not considered as part of the valuation allowance assessment. Instead, future GILTI inclusions are considered a source of taxable income that support the realizability of deferred tax assets. 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. Tax benefits related to uncertain tax positions taken or expected to be taken on a tax return are recorded when such benefits meet a more likely than not threshold. Otherwise, these tax benefits are recorded when a tax position has been effectively settled, which means that the statute of limitations has expired or the appropriate taxing authority has completed their examination even though the statute of limitations remains open. Interest and penalties related to uncertain tax positions are recognized as part of the provision for income taxes and are accrued beginning in the period that such interest and penalties would be applicable under relevant tax law until such time that the related tax benefits are recognized. |
Stock-Based Compensation | Stock-Based Compensation. Howmet recognizes compensation expense for employee equity grants using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. Forfeitures are accounted for as they occur. The fair value of new stock options is estimated on the date of grant using a lattice-pricing model. The fair value of performance awards containing a market condition is valued using a Monte Carlo valuation model. Determining the fair value at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield, volatility, and exercise behavior. These assumptions may differ significantly between grant dates because of changes in the actual results of these inputs that occur over time. |
Foreign Currency | Foreign Currency. The local currency is the functional currency for Howmet’s significant operations outside the United States (“U.S.”), except for certain operations in Canada, the United Kingdom, and France, where the U.S. dollar is used as the functional currency. The determination of the functional currency for Howmet’s operations is made based on the appropriate economic and management indicators. |
Acquisitions | Acquisitions. Howmet’s business acquisitions are accounted for using the acquisition method. The purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. For all acquisitions, operating results are included in the Statement of Consolidated Operations from the date of the acquisition. |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale. For those businesses where management has committed to a plan to divest, each business is valued at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, an impairment loss is recognized. Fair value is estimated using accepted valuation techniques such as a DCF model, valuations performed by third parties, earnings multiples, or indicative bids, when available. A number of significant estimates and assumptions are involved in the application of these techniques, including the forecasting of markets and market share, sales volumes and prices, costs and expenses, and multiple other factors. Management considers historical experience and all available information at the time the estimates are made; however, the fair value that is ultimately realized upon the divestiture of a business may differ from the estimated fair value reflected in the Consolidated Financial Statements. Depreciation and amortization expense is not recorded on assets of a business to be divested once they are classified as held for sale. Businesses to be divested are generally classified in the Consolidated Financial Statements as either discontinued operations or held for sale. For businesses classified as discontinued operations, the balance sheet amounts and results of operations are reclassified from their historical presentation to assets and liabilities of discontinued operations on the Consolidated Balance Sheet and to discontinued operations on the Statement of Consolidated Operations, respectively, for all periods presented. The gains or losses associated with these divested businesses are recorded in discontinued operations on the Statement of Consolidated Operations. The Statement of Consolidated Cash Flows is not required to be reclassified for discontinued operations for any period. Segment information does not include the assets or operating results of businesses classified as discontinued operations for all periods presented. These businesses are expected to be disposed of within one year. For businesses classified as held for sale that do not qualify for discontinued operations treatment, the balance sheet and cash flow amounts are reclassified from their historical presentation to assets and liabilities of operations held for sale for all periods presented. The results of operations continue to be reported in continuing operations. The gains or losses associated with these divested businesses are recorded in Restructuring and other charges on the Statement of Consolidated Operations. The segment information includes the assets and operating results of businesses classified as held for sale for all periods presented. |
Recently Adopted and Recently Issued Accounting Guidance | Recently Adopted Accounting Guidance. On January 1, 2021, the Company adopted changes issued by the Financial Accounting Standards Board (“FASB”) that were intended to simplify various aspects of accounting for income taxes by eliminating certain exceptions contained in existing guidance and amending other guidance to simplify several other income tax accounting matters. The adoption of this new guidance did not have a material impact on the Consolidated Financial Statements. On January 1, 2020, the Company adopted changes issued by the FASB related to the impairment model for expected credit losses. The new impairment model (known as the current expected credit loss (“CECL”) model) is based on expected losses rather than incurred losses. The Company recognizes as an allowance its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments and requires the measurement of expected credit losses on assets including those that have a low risk of loss. The adoption of this new guidance did not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued guidance that impacts disclosures for defined benefit pension plans and other postretirement benefit plans. These changes became effective for Howmet's annual report for the year ended December 31, 2020 which did not have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued changes to the accounting and presentation of leases. These changes required lessees to recognize a right-of-use asset and lease liability on the balance sheet, initially measured at the present value of lease payments for all operating leases with a term greater than 12 months. These changes became effective for the Company on January 1, 2019 and have been applied using the modified retrospective approach as of the date of adoption, under which leases existing at, or entered into after, January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company also elected to separate lease components from non-lease components for all classes of assets. The adoption of this new lease standard resulted in the Company recording operating lease right-of-use assets and lease liabilities of approximately $320 on the Consolidated Balance Sheet as of January 1, 2019. The adoption of the new lease standard had no impact on the Statement of Consolidated Operations or Statement of Consolidated Cash Flows. As a result of the new standard, a gain of $73 (net of tax) on a 2018 sale leaseback transaction was no longer required to be deferred and the accumulated deficit within the Consolidated Balance Sheet and Statement of Changes in Consolidated Equity were increased accordingly. In August 2017, the FASB issued guidance that made more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amended the presentation and disclosure requirements and changed how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. These changes became effective for the Company on January 1, 2019. For cash flow hedges, Howmet recorded a cumulative effect adjustment of $2 related to eliminating the separate measurement of ineffectiveness by decreasing Accumulated other comprehensive loss and increasing Retained earnings on its Consolidated Balance Sheet and Statement of Changes in Consolidated Equity. The amendments to presentation and disclosure are required prospectively. Howmet has determined that under the new accounting guidance it is able to more broadly use cash flow hedge accounting for its variable priced inventory purchases and customer sales. Recently Issued Accounting Guidance. In March 2020, the FASB issued amendments that provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. Management does not believe the impact of these changes will have a material impact on the Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Weighted-Average Useful Lives Of Structures and Machinery and Equipment | The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery and equipment Engine Products 30 17 Fastening Systems 27 17 Engineered Structures 28 19 Forged Wheels 29 18 December 31, 2021 December 31, 2020 Land and land rights $ 91 $ 98 Structures 1,034 1,033 Machinery and equipment 3,932 3,879 5,057 5,010 Less: accumulated depreciation and amortization 2,772 2,626 2,285 2,384 Construction work-in-progress 182 208 Properties, plants, and equipment, net $ 2,467 $ 2,592 |
Weighted-Average Useful Lives of Software and Other Intangibles | The following table details the weighted-average useful lives of software and other intangible assets by reporting segment (numbers in years): Software Other intangible assets Engine Products 9 34 Fastening Systems 6 23 Engineered Structures 4 10 Forged Wheels 4 24 |
Arconic Inc Separation Transa_2
Arconic Inc Separation Transaction and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Discontinued Operations | The results of operations of Arconic Corporation are presented as Income from discontinued operations after income taxes in the Statement of Consolidated Operations as summarized below: Year ended December 31, 2020 2019 Sales $ 1,575 $ 7,094 Cost of goods sold 1,293 6,013 Selling, general administrative, research and development and other expenses 106 346 Provision for depreciation and amortization 58 241 Restructuring and other (credits) charges (18) 38 Operating income from discontinued operations 136 456 Interest expense, net 7 — Other expense, net 41 91 Income from discontinued operations 88 365 Provision for income taxes 38 21 Income from discontinued operations after income taxes $ 50 $ 344 The following table presents purchases of properties, plants, and equipment, proceeds from the sale of businesses, and the provision for depreciation and amortization of discontinued operations related to Arconic Corporation: Year ended December 31, 2020 2019 Capital expenditures $ 72 $ 210 Proceeds from the sales of businesses $ 112 $ 20 Provision for depreciation and amortization $ 58 $ 241 The carrying amount of the major classes of assets and liabilities related to Arconic Corporation were classified as assets and liabilities of discontinued operations in the 2019 Consolidated Balance Sheet consisted of the following: December 31, 2019 Total assets of discontinued operations Cash and cash equivalents $ 71 Receivables from customers 385 Other receivables 135 Inventories 822 Prepaid expenses and other current assets 29 Current assets of discontinued operations 1,442 Properties, plants, and equipment, net 2,834 Goodwill 426 Intangibles, net 60 Deferred income taxes 383 Other noncurrent assets 196 Noncurrent assets of discontinued operations 3,899 Total assets of discontinued operations $ 5,341 Total liabilities of discontinued operations: Accounts payable, trade $ 1,067 Accrued compensation and retirement costs 147 Taxes, including income taxes 22 Other current liabilities 188 Current liabilities of discontinued operations 1,424 Accrued pension benefits 1,429 Accrued other postretirement benefits 514 Other noncurrent liabilities and deferred credits 315 Noncurrent liabilities of discontinued operations 2,258 Total liabilities of discontinued operations $ 3,682 |
Segment and Geographic Area I_2
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results and Assets of Arconic's Reportable Segments | The operating results and assets of the Company's reportable segments were as follows: Year ended Engine Products Fastening Systems Engineered Structures Forged Wheels Total 2021 Sales: Third-party sales $ 2,282 $ 1,044 $ 725 $ 921 $ 4,972 Inter-segment sales 4 — 6 — 10 Total sales $ 2,286 $ 1,044 $ 731 $ 921 $ 4,982 Profit and loss: Segment operating profit $ 440 $ 190 $ 54 $ 255 $ 939 Restructuring and other charges 74 — 16 — 90 Provision for depreciation and amortization 124 49 49 39 261 Other: Capital expenditures $ 74 $ 42 $ 21 $ 45 $ 182 Total Assets 4,663 2,635 1,280 684 9,262 2020 Sales: Third-party sales $ 2,406 $ 1,245 $ 927 $ 679 $ 5,257 Inter-segment sales 5 — 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 charges 36 39 28 3 106 Provision for depreciation and amortization 123 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 sales 11 — 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 charges 297 6 199 4 506 Provision for depreciation and amortization 131 48 58 32 269 Other: Capital expenditures $ 211 $ 36 $ 27 $ 70 $ 344 Total Assets 5,445 2,810 1,151 629 10,035 The following table reconciles Total segment capital expenditures, which are presented on an accrual basis, with Capital expenditures as presented on the Statement of Consolidated Cash Flows. Differences between the total 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, 2021 2020 2019 Total segment capital expenditures $ 182 $ 158 $ 344 Corporate and discontinued operations 17 109 297 Capital expenditures $ 199 $ 267 $ 641 |
Schedule of Reconciliation of Certain Segment Information to Consolidated Totals | The following tables reconcile certain segment information to consolidated totals: For the year ended December 31, 2021 2020 2019 Sales: Total segment sales $ 4,982 $ 5,269 $ 7,129 Elimination of inter-segment sales (10) (12) (24) Corporate — 2 (7) Consolidated sales $ 4,972 $ 5,259 $ 7,098 |
Schedule of Segment ATOI to Consolidated Net (Loss) Income Attributable to Arconic | For the year ended December 31, 2021 2020 2019 Total segment operating profit $ 939 $ 890 $ 1,390 Unallocated amounts: Restructuring and other charges (90) (182) (582) Corporate expense (101) (82) (229) Consolidated operating income $ 748 $ 626 $ 579 Loss on debt redemption (146) (64) — Interest expense, net (259) (317) (338) Other expense, net (19) (74) (31) Income from continuing operations before income taxes $ 324 $ 171 $ 210 |
Schedule of Segment Reporting Information to Consolidated Assets | December 31, 2021 2020 Assets: Total segment assets $ 9,262 $ 9,535 Unallocated amounts: Cash and cash equivalents 720 1,610 Deferred income taxes 184 272 Corporate fixed assets, net 133 140 Fair value of derivative contracts 2 5 Accounts receivable securitization (239) (241) Other 157 122 Consolidated assets $ 10,219 $ 11,443 |
Schedule of Geographic Information for Sales | Geographic information for sales was as follows (based upon the destination of the sale): For the year ended December 31, 2021 2020 2019 Sales: United States $ 2,542 $ 2,782 $ 3,534 France 330 327 546 Japan 319 388 480 Germany 257 309 385 Mexico 225 185 277 United Kingdom 213 231 420 Italy 181 181 195 Canada 127 119 179 Poland 77 76 131 China 71 75 168 Other 630 586 783 $ 4,972 $ 5,259 $ 7,098 |
Schedule of Geographic Information for Long-Lived Assets | Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets): December 31, 2021 2020 Long-lived assets: United States $ 1,868 $ 1,967 Hungary 205 213 France 127 150 United Kingdom 116 109 Germany 66 78 Mexico 61 62 China 53 59 Canada 39 44 Japan 25 25 Other 15 16 $ 2,575 $ 2,723 |
Disaggregation of Revenue by Major End Market Served | The following table disaggregates segment revenue by major market served. Differences between total segment and consolidated totals are in Corporate. Engine Products Fastening Systems Engineered Structures Forged Wheels Total Year ended December 31, 2021 Aerospace - Commercial $ 1,105 $ 537 $ 387 $ — $ 2,029 Aerospace - Defense 523 158 270 — 951 Commercial Transportation — 208 — 921 1,129 Industrial and Other 654 141 68 — 863 Total end-market revenue $ 2,282 $ 1,044 $ 725 $ 921 $ 4,972 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 Other 602 126 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 Transportation 20 227 — 970 1,217 Industrial and Other 596 116 102 (1) 813 Total end-market revenue $ 3,320 $ 1,561 $ 1,255 $ 969 $ 7,105 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Charges | Restructuring and other charges were comprised of the following: For the year ended December 31, 2021 2020 2019 Layoff costs $ 7 $ 113 $ 69 Net reversals of previously recorded layoff reserves (3) (21) (6) Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments 75 69 (7) Non-cash asset impairments and accelerated depreciation ( O ) 15 5 442 Net (gain) loss related to divestitures of assets and businesses ( U ) (8) 8 63 Other 4 8 21 Restructuring and other charges $ 90 $ 182 $ 582 |
Schedule of Restructuring and Other Charges by Reportable Segments, Pretax | Activity and reserve balances for restructuring charges were as follows: Layoff Other Total Reserve balances at December 31, 2018 $ 13 $ 9 $ 22 2019 Activity Cash payments (63) — (63) Restructuring and other charges 58 524 582 Other (1) 5 (533) (528) Reserve balances at December 31, 2019 $ 13 $ — $ 13 2020 Activity Cash payments $ (51) $ — $ (51) Restructuring and other charges 161 21 182 Other (2) (69) (21) (90) Reserve balances at December 31, 2020 $ 54 $ — $ 54 2021 Activity Cash payments $ (41) $ (2) $ (43) Restructuring and other charges 79 11 90 Other (3) (75) (7) (82) Reserve balances at December 31, 2021 $ 17 $ 2 $ 19 (1) In 2019, Other for layoff costs included reclassifications of a $16 credit for elimination of life insurance benefits for U.S. salaried and non-bargaining hourly retirees, a charge of $9 for pension plan settlement accounting, as the impacts were reflected in the Company's separate liabilities for Accrued pension benefits and Accrued other postretirement benefits; a $2 net charge for executive severance net of the benefit of forfeited executive stock compensation. In 2019, Other exit costs included a charge of $428 for impairment of the Disks long-lived asset group; a charge of $59 for impairment of assets associated with agreement to sell the U.K. forgings business, and a small additive business; a charge of $14 for impairment of properties, plants, and equipment related to the Company’s primary research and development facility; a charge of $12 for lease terminations; a $5 charge for impairment of a cost method investment, a charge of $7 related to other miscellaneous items and a $9 reclassification of lease exit costs to reduce right of use assets in Other noncurrent assets in accordance with the adoption of the new lease accounting standard; partially offset by a gain of $1 on the sales of assets. (2) In 2020, Other for layoff costs included $74 in settlement accounting charges related to U.K. and U.S. pension plans, offset by a $3 benefit from the termination of a deferred compensation plan and a $2 curtailment benefit related to a postretirement plan; while Other exit costs included a charge of $5 for impairment of assets; a $5 post-closing adjustment related to the sale of a business; a $5 charge related to the impairment of a cost method investment; a $2 charge for accelerated depreciation; a $1 charge for impairment of assets due to a facility closure and a $6 charge for various other exit costs, which were offset by a gain of $3 on the sale of assets. (3) In 2021, Other for layoff costs included $75 in settlement accounting charges related to U.K. and U.S. pension plans; while Other exit costs included a charge of $15 for accelerated depreciation and a $4 charge for various other exit costs, which were offset by a gain of $12 on the sale of assets. |
Interest Cost Components (Table
Interest Cost Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Cost Components | For the year ended December 31, 2021 2020 2019 Amount charged to interest expense, net $ 259 $ 317 $ 338 Loss on debt redemption 146 64 — Amount capitalized 8 11 33 Total $ 413 $ 392 $ 371 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | For the year ended December 31, 2021 2020 2019 Non-service related net periodic benefit cost ( H ) $ 9 $ 26 $ 17 Interest income (2) (5) (24) Foreign currency losses (gains), net 2 (11) 5 Net loss from asset sales 9 8 10 Deferred compensation 8 10 24 Other, net (1) (7) 46 (1) Total $ 19 $ 74 $ 31 (1) In 2020, Other, net included a charge from the write-off of a tax indemnification receivable of $53 reflecting the aggregate of Alcoa Corporation’s 49% share and Arconic Corporation's 33.66% share of a Spanish tax reserve (see Note V ). |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Obligations and Funded Status | Obligations and Funded Status Pension benefits Other December 31, 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 2,713 $ 7,249 $ 215 $ 786 Transfer to Arconic Corporation — (4,355) — (569) Service cost 4 6 2 2 Interest cost 47 71 5 7 Amendments 3 6 (31) (11) Actuarial (gains) losses (1) (55) 313 (10) 14 Settlements (275) (398) — — Benefits paid (140) (153) (17) (17) Medicare Part D subsidy receipts — — 1 3 Foreign currency translation impact (1) (26) — — Benefit obligation at end of year (2) $ 2,296 $ 2,713 $ 165 $ 215 Change in plan assets (2) Fair value of plan assets at beginning of year $ 1,724 $ 4,868 $ — $ — Transfer to Arconic Corporation — (2,982) — — Actual return on plan assets 124 203 — — Employer contributions 96 227 — — Benefits paid (123) (136) — — Administrative expenses (12) (12) — — Settlement payments (277) (413) — — Foreign currency translation impact (1) (31) — — Fair value of plan assets at end of year (2) $ 1,531 $ 1,724 $ — $ — Funded status $ (765) $ (989) $ (165) $ (215) Amounts recognized in the Consolidated Balance Sheet consist of: Noncurrent assets $ 22 $ 12 $ — $ — Current liabilities (16) (16) (12) (17) Noncurrent liabilities (771) (985) (153) (198) Net amount recognized $ (765) $ (989) $ (165) $ (215) Amounts recognized in Accumulated Other Comprehensive Loss consist of: Net actuarial loss $ 1,067 $ 1,274 $ 11 $ 22 Prior service cost (benefit) 3 6 (49) (28) Net amount recognized, before tax effect $ 1,070 $ 1,280 $ (38) $ (6) Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss consist of: Net actuarial (benefit) loss $ (81) $ 166 $ (10) $ 14 Amortization of accumulated net actuarial (loss) gain (125) (123) — 1 Loss transferred to Arconic Corporation — (2,144) — (170) Prior service cost (benefit) 3 5 (31) (11) Amortization of prior service benefit (7) — 9 5 Prior service credit transferred to Arconic Corporation — — — 13 Net amount recognized, before tax effect $ (210) $ (2,096) $ (32) $ (148) (1) At December 31, 2021, the actuarial gains impacting the benefit obligation were due to changes in discount rate, alternative interest cost method, actual asset returns in excess of expected returns and other changes including census data. (2) At December 31, 2021, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,039, $1,278, and $(761), respectively. At December 31, 2020, the benefit obligation, fair value of plan assets, and funded status for U.S. pension plans were $2,327, $1,361, and $(966), respectively. |
Schedule of Pension Plan Benefit Obligations | Pension Plan Benefit Obligations Pension benefits 2021 2020 The projected benefit obligation and accumulated benefit obligation for all defined benefit pension plans were as follows: Projected benefit obligation $ 2,296 $ 2,713 Accumulated benefit obligation 2,293 2,707 The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were as follows: Projected benefit obligation 1,982 2,364 Fair value of plan assets 1,193 1,364 The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were as follows: Accumulated benefit obligation 1,981 2,359 Fair value of plan assets 1,193 1,364 |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Pension benefits (1) Other postretirement benefits (2) For the year ended December 31, 2021 2020 2019 2021 2020 2019 Service cost $ 4 $ 12 $ 25 $ 2 $ 3 $ 7 Interest cost 47 97 235 5 10 28 Expected return on plan assets (90) (136) (286) — — — Recognized net actuarial loss 56 78 139 — 3 4 Amortization of prior service cost (benefit) 1 — 2 (9) (6) (6) Settlements (3) 69 76 9 — — — Curtailments (4) 6 — — — (2) (58) Net periodic benefit cost (5) $ 93 $ 127 $ 124 $ (2) $ 8 $ (25) Discontinued operations — 20 95 — 6 (15) Net amount recognized in Statement of Consolidated Operations $ 93 $ 107 $ 29 $ (2) $ 2 $ (10) (1) In 2021, 2020, and 2019, net periodic benefit cost for U.S. pension plans was $61, $58, and $127, respectively. (2) In 2021, 2020, and 2019, net periodic benefit cost for other postretirement benefits reflects a reduction of less than $1, $1, and $11, respectively, related to the recognition of the federal subsidy awarded under Medicare Part D. (3) In 2021, settlements were related to U.S. and U.K. actions including the purchase of group annuity contracts and lump sum benefit payments. In 2020, settlements were related to U.K. actions including lump sum benefit payments and the purchase of group annuity contracts as well as U.S. lump sum benefit payments. In 2019, settlements were due to workforce reductions and the payment of lump sum benefits. (See Note E ) (4) In 2021, the curtailment was due to plan termination. In 2020, the curtailment was due to workforce reductions. In 2019, curtailments were due to a reduction of future benefits, resulting in the recognition of favorable and unfavorable plan amendments. (5) Service cost was included within Cost of goods sold, Selling, general administrative, and other expenses, and Research and development expenses; curtailments and settlements were included in Restructuring and other charges; and all other cost components were recorded in Other expense, net in the Statement of Consolidated Operations. |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Assumptions Weighted average assumptions used to determine benefit obligations for pension and other postretirement benefit plans were as follows: December 31, 2021 2020 Discount rate 2.70 % 2.40 % Cash balance plan interest crediting rate 3.00 % 3.00 % Weighted average assumptions used to determine net periodic benefit cost for pension and other postretirement benefit plans were as follows: 2021 2020 2019 Discount rate to calculate service cost (1) 2.80 % 3.30 % 4.30 % Discount rate to calculate interest cost (1) 2.10 % 2.70 % 3.90 % Expected long-term rate of return on plan assets 6.20 % 6.00 % 5.60 % Rate of compensation increase (2) — % — % 3.50 % Cash balance plan interest crediting rate 3.00 % 3.00 % 3.00 % (1) In all periods presented, the respective global discount rates were used to determine net periodic benefit cost for most pension plans for the full annual period. However, the discount rates for a limited number of plans were updated during 2021, 2020, and 2019 to reflect the remeasurement of these plans due to new union labor agreements, settlements, and/or curtailments. The updated discount rates used were not significantly different from the discount rates presented. (2) Benefit accruals for future compensation under the Company’s major salaried and non-bargained hourly defined benefit pension plans have ceased. The rate of compensation increase no longer impacts the determination of the benefit obligation. |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates for U.S. other postretirement benefit plans were as follows: 2021 2020 2019 Health care cost trend rate assumed for next year 5.50 % 5.50 % 5.50 % Rate to which the cost trend rate gradually declines 4.50 % 4.50 % 4.50 % Year that the rate reaches the rate at which it is assumed to remain 2024 2023 2023 |
Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations | Howmet’s pension plans’ investment policy at December 31, 2021 by asset class, were as follows: Asset class Policy range (1) Equities 20–55% Fixed income 25–55% Other investments 15–35% (1) Policy range is for U.S. plan assets only, as both the U.K. and Canadian asset investment allocations are controlled by a third-party trustee with input from Howmet. |
Schedule of Fair Value of Pension Plan Assets | The following table presents the fair value of pension plan assets classified under the appropriate level of the fair value hierarchy or net asset value: December 31, 2021 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 2 $ 197 $ 409 $ 608 Long/short equity hedge funds — — 60 60 Private equity — — 126 126 $ 2 $ 197 $ 595 $ 794 Fixed income: Intermediate and long duration government/credit $ 124 $ 328 $ — $ 452 Other 15 119 — 134 $ 139 $ 447 $ — $ 586 Other investments: Real estate $ — $ — $ 64 $ 64 Discretionary and systematic macro hedge funds — — 47 47 Other — — 23 23 $ — $ — $ 134 $ 134 Net plan assets (1) $ 141 $ 644 $ 729 $ 1,514 December 31, 2020 Level 1 Level 2 Net Asset Value Total Equities: Equity securities $ 274 $ 89 $ 68 $ 431 Long/short equity hedge funds — — 77 77 Private equity — — 87 87 $ 274 $ 89 $ 232 $ 595 Fixed income: Intermediate and long duration government/credit $ 78 $ 579 $ 31 $ 688 Other 63 254 — 317 $ 141 $ 833 $ 31 $ 1,005 Other investments: Real estate $ 31 $ — $ 52 $ 83 Discretionary and systematic macro hedge funds — — 94 94 Other — — 23 23 $ 31 $ — $ 169 $ 200 Net plan assets (2) $ 446 $ 922 $ 432 $ 1,800 (1) As of December 31, 2021, the total fair value of pension plans’ assets excludes a net receivable of $17, which represents securities purchased and sold but not yet settled plus interest and dividends earned on various investments. (2) As of December 31, 2020, the total fair value of pension plans’ assets excludes a net payable of $76, which represents securities purchased and sold but not yet settled plus interest and dividends earned on various investments. |
Schedule of Benefit Payments Expected to be Paid and Expected Medicare Part D Subsidy Receipts | Benefit payments expected to be paid to pension and other postretirement benefit plans’ participants are as follows utilizing the current assumptions outlined above: For the year ended December 31, Pension Other post- 2022 $ 152 $ 12 2023 149 12 2024 145 12 2025 145 11 2026 141 11 2027 - 2031 671 53 $ 1,403 $ 111 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations Before Income Taxes | The components of income from continuing operations before income taxes were as follows: For the year ended December 31, 2021 2020 2019 United States $ 28 $ 84 $ 128 Foreign 296 87 82 Total $ 324 $ 171 $ 210 |
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, 2021 2020 2019 Current: Federal (1) $ (9) $ (2) $ — Foreign 39 2 86 State and local (2) (2) — 28 (2) 86 Deferred: Federal 22 (67) 33 Foreign 11 11 (41) State and local 5 18 6 38 (38) (2) Total $ 66 $ (40) $ 84 (1) Includes U.S. taxes related to foreign income. |
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 2021 and 2019 was a provision on income and 2020 was a benefit on income): For the year ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % Foreign tax rate differential (0.7) (1.2) 10.9 U.S. and residual tax on foreign earnings (1) 6.5 5.6 15.3 U.S. State and local taxes 1.0 2.2 0.8 Federal (cost) benefit of state tax (0.3) (2.0) 1.2 Permanent differences related to asset disposals and items included in restructuring and other charges (0.3) 6.8 (1.3) Non-deductible officer compensation 1.6 3.5 4.9 Statutory tax rate and law changes (2) 1.0 (15.9) (0.6) Tax holidays (0.4) (0.4) (8.2) Tax credits (3) (10.4) (0.4) (1.3) Changes in valuation allowances (4) 5.1 74.8 (52.2) Changes in uncertain tax positions (5) — (116.9) 0.3 Prior year tax adjustments (6) (3.7) (1.7) 44.3 Other — 1.2 4.9 Effective tax rate 20.4 % (23.4) % 40.0 % (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 2020, final regulations were issued that provided an election to exclude from GILTI any foreign earnings subject to a local country tax rate of at least 90% of the U.S. tax rate. The Company recorded a $30 benefit related to this tax law change. (3) In 2021, a $32 benefit for income tax credits related to development incentives in Hungary was recognized. (4) In 2020, a $104 valuation allowance was recorded related to deferred tax assets that were previously subject to a reserve that was otherwise released in 2020 as a result of a favorable Spanish tax case decision. In 2019, the Company released a $112 valuation allowance related to 2015 and 2016 foreign tax credits, subsequent to filing U.S. amended tax returns to deduct, rather than credit, foreign taxes. (5) In 2020, the Company released a $64 reserve liability and a $104 reserve recorded as a contra balance against deferred tax assets as a result of a favorable Spanish tax case decision. A $30 benefit related to a previously uncertain U.S. tax position was also recognized in 2020. (6) In 2019, the Company filed U.S. amended tax returns to deduct, rather than credit, 2015 and 2016 foreign taxes resulting in a $112 tax cost associated with the write-off of the deferred tax asset for the credit, partially offset by a $24 tax benefit for the deduction. |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of net deferred tax assets and liabilities were as follows: 2021 2020 December 31, Deferred Deferred Deferred Deferred Depreciation $ 8 $ 538 $ 21 $ 506 Employee benefits 300 3 364 — Loss provisions 20 1 24 1 Deferred income/expense 50 1,098 41 1,033 Interest 105 — 3 — Tax loss carryforwards 3,226 — 3,267 — Tax credit carryforwards 358 — 378 — Other 10 7 7 13 $ 4,077 $ 1,647 $ 4,105 $ 1,553 Valuation allowance (2,279) — (2,307) — $ 1,798 $ 1,647 $ 1,798 $ 1,553 |
Schedule of Expiration Periods of Deferred Tax Assets | The following table details the expiration periods of the deferred tax assets presented above: December 31, 2021 Expires Expires No Expiration (1) Other (2) Total Tax loss carryforwards $ 422 $ 580 $ 2,224 $ — $ 3,226 Tax credit carryforwards 278 66 14 — 358 Other (3) — — 424 69 493 Valuation allowance (637) (293) (1,329) (20) (2,279) $ 63 $ 353 $ 1,333 $ 49 $ 1,798 (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, 2021 2020 2019 Balance at beginning of year $ 2,307 $ 2,121 $ 2,357 Increase to allowance 113 136 19 Release of allowance (94) (50) (211) Acquisitions and divestitures — — (2) Tax apportionment, tax rate and tax law changes 63 (23) (13) Foreign currency translation (110) 123 (29) Balance at end of year $ 2,279 $ 2,307 $ 2,121 |
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, 2021 2020 2019 Balance at beginning of year $ 2 $ 176 $ 148 Additions for tax positions of the current year — — 34 Additions for tax positions of prior years — — — Reductions for tax positions of prior years — (182) (1) Settlements with tax authorities — (1) — Expiration of the statute of limitations — — (2) Foreign currency translation — 9 (3) Balance at end of year $ 2 $ 2 $ 176 |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Share Activity | Common Stock Outstanding and Share Activity (number of shares) Balance at December 31, 2018 483,270,717 Issued for stock-based compensation plans 4,436,830 Repurchase and retirement of common stock (54,852,364) Balance at December 31, 2019 432,855,183 Issued for stock-based compensation plans 3,896,119 Repurchase and retirement of common stock (3,844,925) Balance at December 31, 2020 432,906,377 Issued for stock-based compensation plans 2,195,681 Repurchase and retirement of common stock (13,410,146) Balance at December 31, 2021 421,691,912 |
Accelerated Share Repurchases | The following table provides details for share repurchases during 2021, 2020, and 2019: Number of shares Average price per share (1) Total May 2021/June 2021 accelerated share repurchase (“ASR”) total 5,878,791 $34.02 $200 August 2021 open market repurchase 769,274 $32.50 $25 October 2021 open market repurchase 879,307 $30.71 $27 November 2021 open market repurchase 2,336,733 $30.79 $72 December 2021 open market repurchase 3,546,041 $29.91 $106 2021 Share repurchase total 13,410,146 $32.07 $430 August/September 2020 open market repurchase 2,907,094 $17.36 $51 November 2020 open market repurchase 937,831 $23.99 $22 2020 Share repurchase total 3,844,925 $18.98 $73 February 2019 ASR total 36,434,423 $19.21 $700 May 2019 ASR total 9,016,981 $22.18 $200 August 2019 ASR total 7,774,279 $25.73 $200 November 2019 open market repurchase 1,626,681 $30.74 $50 2019 Share repurchase total 54,852,364 $20.97 $1,150 (1) Excludes commissions cost. |
Schedule of Activity for Stock Options and Stock Awards | The activity for stock options and stock awards during 2021 was as follows (options and awards in millions): Stock options Stock awards Number of Weighted Number of Weighted Outstanding, December 31, 2020 3 $ 24.47 9 $ 13.68 Granted — — 2 32.15 Exercised (1) 21.70 — — Converted — — (2) 19.52 Expired or forfeited — 34.68 (1) 20.94 Outstanding, December 31, 2021 2 $ 23.64 8 $ 16.19 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Information Used to Compute Basic and Diluted EPS | The information used to compute basic and diluted EPS attributable to Howmet common shareholders was as follows (shares in millions): For the year ended December 31, 2021 2020 2019 Net income from continuing operations $ 258 $ 211 $ 126 Less: preferred stock dividends declared 2 2 2 Net income from continuing operations attributable to common shareholders 256 209 124 Income from discontinued operations — 50 344 Net income attributable to common shareholders - basic 256 259 468 Add: interest expense related to convertible notes — — 9 Net income attributable to common shareholders - diluted $ 256 $ 259 $ 477 Average shares outstanding - basic 430 435 446 Effect of dilutive securities: Stock options — — 1 Stock and performance awards 5 4 5 Convertible notes (1) — — 11 Average shares outstanding - diluted 435 439 463 (1) The convertible notes matured on October 15, 2019 (see Note R ). No shares of the Company’s common stock were issued in connection with the maturity or the final conversion of the convertible notes. As of October 15, 2019, the calculation of average diluted shares outstanding ceased to include the approximately 15 million shares of common stock and the corresponding interest expense previously attributable to the convertible notes. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares were excluded from the calculation of average shares outstanding – diluted as their effect was anti-dilutive (shares in millions). For the year ended December 31, 2021 2020 2019 Stock options — 1 1 (1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss by Component | The following table details the activity of the four components that comprise Accumulated other comprehensive loss: 2021 2020 2019 Pension and other postretirement benefits ( H ) Balance at beginning of period $ (980) $ (2,732) $ (2,344) Other comprehensive income (loss): Unrecognized net actuarial gain (loss) and prior service cost/benefit 111 (211) (587) Tax (expense) benefit (26) 48 129 Total Other comprehensive income (loss) before reclassifications, net of tax 85 (163) (458) Amortization of net actuarial loss and prior service cost (1) 123 149 90 Tax expense (2) (27) (32) (20) Total amount reclassified from Accumulated other comprehensive loss, net of tax (3) 96 117 70 Total Other comprehensive income (loss) 181 (46) (388) Transfer to Arconic Corporation — 1,798 — Balance at end of period $ (799) $ (980) $ (2,732) Foreign currency translation Balance at beginning of period $ (966) $ (596) $ (583) Other comprehensive (loss) income (4) (96) 58 (13) Transfer to Arconic Corporation — (428) — Balance at end of period $ (1,062) $ (966) $ (596) Debt securities Balance at beginning of period $ — $ — $ (3) Other comprehensive income (5) — — 3 Balance at end of period $ — $ — $ — Cash flow hedges Balance at beginning of period $ 3 $ (1) $ 4 Adoption of accounting standard (6) — — (2) Other comprehensive income (loss): Net change from periodic revaluations 20 — (9) Tax benefit (4) — 3 Total Other comprehensive income (loss) before reclassifications, net of tax 16 — (6) Net amount reclassified to earnings (26) 6 4 Tax benefit (expense) (2) 5 (2) (1) Total amount reclassified from Accumulated other comprehensive (loss) income, net of tax (3) (21) 4 3 Total Other comprehensive (loss) income (5) 4 (3) Balance at end of period $ (2) $ 3 $ (1) Accumulated other comprehensive loss balance at end of period $ (1,863) $ (1,943) $ (3,329) (1) These amounts were recorded in Other expense, net (see Note G ) and Restructuring and other charges (see Note E ) in the Statement of Consolidated Operations. (2) These amounts were included in Provision (benefit) for income taxes (see Note I ) in the Statement of Consolidated Operations. (3) A positive amount indicates a corresponding charge to earnings and a negative amount indicates a corresponding benefit to earnings. (4) In all periods presented, no amounts were reclassified to earnings. (5) Realized gains and losses were included in Other expense, net, in the Statement of Consolidated Operations. (6) Adjustment was related to eliminating the separate measurement of hedge ineffectiveness as part of the adoption of new hedge accounting guidance. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Components | Inventories December 31, 2021 2020 Finished goods $ 478 $ 528 Work-in-process 631 629 Purchased raw materials 256 292 Operating supplies 37 39 Total inventories $ 1,402 $ 1,488 |
Properties, Plants, and Equip_2
Properties, Plants, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties, Plants, and Equipment, Net | The following table details the weighted-average useful lives of structures and machinery and equipment by reporting segment (numbers in years): Structures Machinery and equipment Engine Products 30 17 Fastening Systems 27 17 Engineered Structures 28 19 Forged Wheels 29 18 December 31, 2021 December 31, 2020 Land and land rights $ 91 $ 98 Structures 1,034 1,033 Machinery and equipment 3,932 3,879 5,057 5,010 Less: accumulated depreciation and amortization 2,772 2,626 2,285 2,384 Construction work-in-progress 182 208 Properties, plants, and equipment, net $ 2,467 $ 2,592 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table details the changes in the carrying amount of goodwill: Engine Products Fastening Systems Engineered Structures Forged Wheels Total Balances at December 31, 2019 Goodwill $ 2,883 $ 1,607 $ 289 $ 7 $ 4,786 Accumulated impairment losses (719) — — — (719) Goodwill, net 2,164 1,607 289 7 4,067 Impairment (See Note U ) — — (2) — (2) Translation and other 24 13 — — 37 Transfer from Engine Products to Engineered Structures (1) (17) — 17 — — Balances at December 31, 2020 Goodwill 2,890 1,620 306 7 4,823 Accumulated impairment losses (719) — (2) — (721) Goodwill, net 2,171 1,620 304 7 4,102 Impairment (See Note U ) — (4) — — (4) Translation and other (22) (9) — — (31) Balances at December 31, 2021 Goodwill 2,868 1,611 306 7 4,792 Accumulated impairment losses (719) (4) (2) — (725) Goodwill, net $ 2,149 $ 1,607 $ 304 $ 7 $ 4,067 (1) In the first quarter of 2020, the Savannah operations was transferred from the Engine Products segment to the Engineered Structures segment and, as a result, goodwill of $17 was reallocated. |
Other Intangible Assets | Other intangible assets were as follows: December 31, 2021 Gross carrying amount Accumulated Intangibles, net Computer software $ 206 $ (175) $ 31 Patents and licenses 67 (65) 2 Other intangibles 686 (202) 484 Total amortizable intangible assets 959 (442) 517 Indefinite-lived trade names and trademarks 32 — 32 Total intangible assets, net $ 991 $ (442) $ 549 December 31, 2020 Gross carrying amount Accumulated Intangibles, net Computer software $ 194 $ (169) $ 25 Patents and licenses 67 (65) 2 Other intangibles 700 (188) 512 Total amortizable intangible assets 961 (422) 539 Indefinite-lived trade names and trademarks 32 — 32 Total intangible assets, net $ 993 $ (422) $ 571 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Operating lease right-of-use assets and lease liabilities in the Consolidated Balance Sheet were as follows: December 31, 2021 2020 Right-of-use assets classified in Other noncurrent assets $ 108 $ 131 Current portion of lease liabilities classified in Other current liabilities $ 33 $ 38 Long-term portion of lease liabilities classified in Other noncurrent liabilities and deferred credits 81 100 Total lease liabilities $ 114 $ 138 |
Schedule of Future Minimum Contractual Operating Lease Obligations | Future minimum contractual operating lease obligations were as follows at December 31, 2021: 2022 $ 38 2023 28 2024 19 2025 12 2026 10 Thereafter 27 Total lease payments $ 134 Less: Imputed interest (20) Present value of lease liabilities $ 114 |
Summary of Other Lease Information | December 31, 2021 2020 2019 Right-of-use assets obtained in exchange for operating lease obligations $ 16 $ 35 $ 26 Weighted-average remaining lease term in years 6 6 6 Weighted-average discount rate 5.4 % 5.6 % 5.9 % Cash paid for interest and income taxes for both continuing and discontinued operations was as follows: 2021 2020 2019 Interest, net of amounts capitalized $ 267 $ 401 $ 340 Income taxes, net of amounts refunded $ 53 $ (33) $ 122 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt. December 31, 2021 2020 5.400% Notes, due 2021 (1) $ — $ 361 5.870% Notes, due 2022 (2) — 476 5.125% Notes, due 2024 1,150 1,250 6.875% Notes, due 2025 600 1,200 5.900% Notes, due 2027 625 625 6.750% Bonds, due 2028 300 300 3.000% Notes due 2029 700 — 5.950% Notes, due 2037 625 625 4.750% Iowa Finance Authority Loan, due 2042 250 250 Other (3) (18) (12) 4,232 5,075 Less: amount due within one year 5 376 Total long-term debt $ 4,227 $ 4,699 (1) Redeemed on January 15, 2021. (2) Redeemed on May 3, 2021. (3) Includes various financing arrangements related to subsidiaries, unamortized debt discounts and unamortized debt issuance costs related to outstanding notes and bonds listed in the table above. |
Other Financial Instruments (Ta
Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Other Financial Instruments | The carrying values of Cash and cash equivalents, restricted cash, derivatives, noncurrent receivables, and Short-term debt included in the Consolidated Balance Sheet approximate their fair value. The Company holds exchange-traded fixed income securities which are considered available-for-sale securities that are carried at fair value which is based on quoted market prices which are classified in Level 1 of the fair value hierarchy and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheet. The fair value of Long-term debt, less amounts due within one year was based on quoted market prices for public debt and on interest rates that are currently available to Howmet for issuance of debt with similar terms and maturities for non-public debt. The fair value amounts for all Long-term debt were classified in Level 2 of the fair value hierarchy. 2021 2020 December 31, Carrying Fair Carrying Fair Long-term debt, less amounts due within one year $ 4,227 $ 4,707 $ 4,699 $ 5,426 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Paid for Interest and Income Taxes | December 31, 2021 2020 2019 Right-of-use assets obtained in exchange for operating lease obligations $ 16 $ 35 $ 26 Weighted-average remaining lease term in years 6 6 6 Weighted-average discount rate 5.4 % 5.6 % 5.9 % Cash paid for interest and income taxes for both continuing and discontinued operations was as follows: 2021 2020 2019 Interest, net of amounts capitalized $ 267 $ 401 $ 340 Income taxes, net of amounts refunded $ 53 $ (33) $ 122 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Apr. 01, 2020company | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of independent, publicly-traded companies resulting from proposed separation transaction | company | 2 | ||||
Number of reportable segments | segment | 4 | ||||
Minimum percentage of estimated fair value of reporting unit to be less than carrying amount of goodwill | 50.00% | ||||
Period required for impairment testing of reporting units | 3 years | ||||
Impairment of goodwill | $ 0 | $ 4 | $ 2 | ||
Advance payment | $ 85 | $ 46 | |||
Businesses expected to be disposed within, years | 1 year | ||||
Aerospace | Revenue Benchmark | Customer Concentration Risk | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 60.00% | 69.00% | 71.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Structures and Machinery and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Structures | Engine Products | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 30 years |
Structures | Fastening Systems | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 27 years |
Structures | Engineered Structures | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 28 years |
Structures | Forged Wheels | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 29 years |
Machinery and equipment | Engine Products | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 17 years |
Machinery and equipment | Fastening Systems | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 17 years |
Machinery and equipment | Engineered Structures | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 19 years |
Machinery and equipment | Forged Wheels | |
Property, Plant and Equipment [Line Items] | |
Weighted-average useful lives of assets, years | 18 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Weighted-Average Useful Lives of Software and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software | Engine Products | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 9 years |
Software | Fastening Systems | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 6 years |
Software | Engineered Structures | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 4 years |
Software | Forged Wheels | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 4 years |
Other intangibles | Engine Products | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 34 years |
Other intangibles | Fastening Systems | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 23 years |
Other intangibles | Engineered Structures | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 10 years |
Other intangibles | Forged Wheels | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful lives of other intangible assets | 24 years |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Guidance (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets classified in Other noncurrent assets | $ 108 | $ 131 | |||
Present value of lease liabilities | 114 | 138 | |||
Total equity | 3,508 | 3,577 | $ 4,605 | $ 5,569 | |
Retained earnings (Accumulated deficit) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total equity | $ 603 | $ 364 | $ 113 | (374) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total equity | 73 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (Accumulated deficit) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total equity | $ 75 | ||||
ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets classified in Other noncurrent assets | $ 320 | ||||
Present value of lease liabilities | 320 | ||||
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (Accumulated deficit) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total equity | 73 | ||||
ASU 2017-12 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 2 |
Arconic Inc Separation Transa_3
Arconic Inc Separation Transaction and Discontinued Operations - Narrative (Details) | Apr. 01, 2020company | Mar. 25, 2020USD ($) | Feb. 01, 2020USD ($) | Oct. 31, 2018USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 07, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Number of independent, publicly-traded companies resulting from proposed separation transaction | company | 2 | |||||||||
Debt issuance costs (C and R) | $ 11,000,000 | $ 61,000,000 | $ 0 | |||||||
Asset impairment charges | $ 15,000,000 | 5,000,000 | 442,000,000 | |||||||
Aluminum Rolling Mill | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | $ 50,000,000 | |||||||||
Gain (loss) on disposition of business, before tax | $ (59,000,000) | |||||||||
Asset impairment charges | $ 6,000,000 | $ 53,000,000 | 6,000,000 | |||||||
Hard Alloy Extrusions Plant In South Korea | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration | 62,000,000 | 62,000,000 | ||||||||
Texarkana, Texas Rolling Mill And Cast House | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain (loss) on disposition of business, before tax | $ 20,000,000 | |||||||||
Period of operationalizing rolling mill equipment of transaction closing date | 36 months | |||||||||
Texarkana, Texas Rolling Mill And Cast House | Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Additional contingent consideration | $ 50,000,000 | |||||||||
Lien Notes | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Debt issuance costs (C and R) | $ 45,000,000 | $ 45,000,000 | ||||||||
Senior Notes | Second-Lien Notes Due 2028 | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Convertible notes, interest rate percentage | 6.125% | |||||||||
Line of Credit | Senior Secured First Lien Term B Loan Facility Due 2027 | Secured Debt | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Debt instrument, term | 7 years |
Arconic Inc Separation Transa_4
Arconic Inc Separation Transaction and Discontinued Operations - Summary of Results of Discontinued Operations (Details) - Arconic Corportion - Discontinued Operations, Disposed of by Means Other than Sale - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales | $ 1,575 | $ 7,094 |
Cost of goods sold | 1,293 | 6,013 |
Selling, general administrative, research and development and other expenses | 106 | 346 |
Provision for depreciation and amortization | 58 | 241 |
Restructuring and other (credits) charges | (18) | 38 |
Operating income from discontinued operations | 136 | 456 |
Interest expense, net | 7 | 0 |
Other expense, net | 41 | 91 |
Income from discontinued operations | 88 | 365 |
Provision for income taxes | 38 | 21 |
Income from discontinued operations after income taxes | $ 50 | $ 344 |
Arconic Inc Separation Transa_5
Arconic Inc Separation Transaction and Discontinued Operations - Summary of Property, Plant and Equipment Purchases of the Discontinued Operations (Details) - Arconic Corporation - Discontinued Operations, Disposed of by Means Other than Sale - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Capital expenditures | $ 72 | $ 210 |
Proceeds from the sales of businesses | $ 112 | $ 20 |
Arconic Inc Separation Transa_6
Arconic Inc Separation Transaction and Discontinued Operations - Carrying Amount of Major Classes of Assets and Liabilities (Details) - Arconic Corporation - Discontinued Operations, Disposed of by Means Other than Sale $ in Millions | Dec. 31, 2019USD ($) |
Total assets of discontinued operations | |
Cash and cash equivalents | $ 71 |
Receivables from customers | 385 |
Other receivables | 135 |
Inventories | 822 |
Prepaid expenses and other current assets | 29 |
Current assets of discontinued operations | 1,442 |
Properties, plants, and equipment, net | 2,834 |
Goodwill | 426 |
Intangibles, net | 60 |
Deferred income taxes | 383 |
Other noncurrent assets | 196 |
Noncurrent assets of discontinued operations | 3,899 |
Total assets of discontinued operations | 5,341 |
Total liabilities of discontinued operations: | |
Accounts payable, trade | 1,067 |
Accrued compensation and retirement costs | 147 |
Taxes, including income taxes | 22 |
Other current liabilities | 188 |
Current liabilities of discontinued operations | 1,424 |
Accrued pension benefits | 1,429 |
Accrued other postretirement benefits | 514 |
Other noncurrent liabilities and deferred credits | 315 |
Noncurrent liabilities of discontinued operations | 2,258 |
Total liabilities of discontinued operations | $ 3,682 |
Segment and Geographic Area I_3
Segment and Geographic Area Information - Narrative (Details) - segment | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 4 | ||
Revenue Benchmark | Customer Concentration Risk | Aerospace | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 60.00% | 69.00% | 71.00% |
Revenue Benchmark | Customer Concentration Risk | Aerospace | General Electric Company | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% |
Segment and Geographic Area I_4
Segment and Geographic Area Information - Schedule of Operating Results of Arconic's Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 4,972 | $ 5,259 | $ 7,098 |
Segment operating profit | 748 | 626 | 579 |
Restructuring and other charges | 90 | 182 | 582 |
Provision for depreciation and amortization | 270 | 279 | 295 |
Capital expenditures | 199 | 267 | 641 |
Total Assets | 10,219 | 11,443 | |
Third-party sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,972 | 5,257 | 7,105 |
Inter-segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | (10) | (12) | (24) |
Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 4,982 | 5,269 | 7,129 |
Segment operating profit | 939 | 890 | 1,390 |
Restructuring and other charges | 90 | 106 | 506 |
Provision for depreciation and amortization | 261 | 262 | 269 |
Capital expenditures | 182 | 158 | 344 |
Total Assets | 9,262 | 9,535 | 10,035 |
Engine Products | Third-party sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,282 | 2,406 | 3,320 |
Engine Products | Inter-segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 4 | 5 | 11 |
Engine Products | Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,286 | 2,411 | 3,331 |
Segment operating profit | 440 | 417 | 621 |
Restructuring and other charges | 74 | 36 | 297 |
Provision for depreciation and amortization | 124 | 123 | 131 |
Capital expenditures | 74 | 77 | 211 |
Total Assets | 4,663 | 4,756 | 5,445 |
Fastening Systems | Third-party sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,044 | 1,245 | 1,561 |
Fastening Systems | Inter-segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Fastening Systems | Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,044 | 1,245 | 1,561 |
Segment operating profit | 190 | 247 | 396 |
Restructuring and other charges | 0 | 39 | 6 |
Provision for depreciation and amortization | 49 | 48 | 48 |
Capital expenditures | 42 | 39 | 36 |
Total Assets | 2,635 | 2,707 | 2,810 |
Engineered Structures | Third-party sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 725 | 927 | 1,255 |
Engineered Structures | Inter-segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 6 | 7 | 13 |
Engineered Structures | Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 731 | 934 | 1,268 |
Segment operating profit | 54 | 73 | 120 |
Restructuring and other charges | 16 | 28 | 199 |
Provision for depreciation and amortization | 49 | 52 | 58 |
Capital expenditures | 21 | 19 | 27 |
Total Assets | 1,280 | 1,444 | 1,151 |
Forged Wheels | Third-party sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 921 | 679 | 969 |
Forged Wheels | Inter-segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Forged Wheels | Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Sales | 921 | 679 | 969 |
Segment operating profit | 255 | 153 | 253 |
Restructuring and other charges | 0 | 3 | 4 |
Provision for depreciation and amortization | 39 | 39 | 32 |
Capital expenditures | 45 | 23 | 70 |
Total Assets | $ 684 | $ 628 | $ 629 |
Segment and Geographic Area I_5
Segment and Geographic Area Information - Capital Expenditure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 199 | $ 267 | $ 641 |
Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 182 | 158 | 344 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 17 | $ 109 | $ 297 |
Segment and Geographic Area I_6
Segment and Geographic Area Information - Schedule of Reconciliation of Certain Segment Information to Consolidated Totals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,972 | $ 5,259 | $ 7,098 |
Total segment sales | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,982 | 5,269 | 7,129 |
Elimination of inter-segment sales | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (10) | (12) | (24) |
Corporate | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 2 | $ (7) |
Segment and Geographic Area I_7
Segment and Geographic Area Information - Schedule of Segment Operating Profit to Consolidated Net Income (Loss) Income Attributable to Arconic (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total segment operating profit | $ 748 | $ 626 | $ 579 |
Loss on debt redemption | (146) | (64) | 0 |
Interest expense, net | (259) | (317) | (338) |
Other expense, net | (19) | (74) | (31) |
Income before income taxes | 324 | 171 | 210 |
Total segment sales | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 939 | 890 | 1,390 |
Restructuring and other charges | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | (90) | (182) | (582) |
Corporate expense | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | $ (101) | $ (82) | $ (229) |
Segment and Geographic Area I_8
Segment and Geographic Area Information - Schedule of Segment Reporting Information to Consolidated Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Assets | $ 10,219 | $ 11,443 | |
Cash and cash equivalents | 720 | 1,610 | |
Corporate fixed assets, net | 2,467 | 2,592 | |
Total segment sales | |||
Assets: | |||
Assets | 9,262 | 9,535 | $ 10,035 |
Other | |||
Assets: | |||
Cash and cash equivalents | 720 | 1,610 | |
Deferred income taxes | 184 | 272 | |
Corporate fixed assets, net | 133 | 140 | |
Fair value of derivative contracts | 2 | 5 | |
Accounts receivable securitization | (239) | (241) | |
Other | $ 157 | $ 122 |
Segment and Geographic Area I_9
Segment and Geographic Area Information - Schedule of Geographic Information for Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,972 | $ 5,259 | $ 7,098 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,542 | 2,782 | 3,534 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 319 | 388 | 480 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 330 | 327 | 546 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 257 | 309 | 385 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 213 | 231 | 420 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 225 | 185 | 277 |
Italy | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 181 | 181 | 195 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 127 | 119 | 179 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 77 | 75 | 168 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 71 | 76 | 131 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 630 | $ 586 | $ 783 |
Segment and Geographic Area _10
Segment and Geographic Area Information - Schedule of Geographic Information for Long-Lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,575 | $ 2,723 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,868 | 1,967 |
Hungary | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 205 | 213 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 127 | 150 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 116 | 109 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 66 | 78 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 61 | 62 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 53 | 59 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 39 | 44 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 25 | 25 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 15 | $ 16 |
Segment and Geographic Area _11
Segment and Geographic Area Information - Disaggregation of Revenue by Major End Market Served (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Sales | $ 4,972 | $ 5,259 | $ 7,098 |
Third-party sales | |||
Revenue, Major Customer [Line Items] | |||
Sales | 4,972 | 5,257 | 7,105 |
Third-party sales | Engine Products | |||
Revenue, Major Customer [Line Items] | |||
Sales | 2,282 | 2,406 | 3,320 |
Third-party sales | Fastening Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | 1,044 | 1,245 | 1,561 |
Third-party sales | Engineered Structures | |||
Revenue, Major Customer [Line Items] | |||
Sales | 725 | 927 | 1,255 |
Third-party sales | Forged Wheels | |||
Revenue, Major Customer [Line Items] | |||
Sales | 921 | 679 | 969 |
Third-party sales | Aerospace - Commercial | |||
Revenue, Major Customer [Line Items] | |||
Sales | 2,029 | 2,597 | 4,186 |
Third-party sales | Aerospace - Commercial | Engine Products | |||
Revenue, Major Customer [Line Items] | |||
Sales | 1,105 | 1,247 | 2,229 |
Third-party sales | Aerospace - Commercial | Fastening Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | 537 | 808 | 1,060 |
Third-party sales | Aerospace - Commercial | Engineered Structures | |||
Revenue, Major Customer [Line Items] | |||
Sales | 387 | 542 | 897 |
Third-party sales | Aerospace - Commercial | Forged Wheels | |||
Revenue, Major Customer [Line Items] | |||
Sales | 0 | 0 | 0 |
Third-party sales | Aerospace - Defense | |||
Revenue, Major Customer [Line Items] | |||
Sales | 951 | 1,016 | 889 |
Third-party sales | Aerospace - Defense | Engine Products | |||
Revenue, Major Customer [Line Items] | |||
Sales | 523 | 557 | 475 |
Third-party sales | Aerospace - Defense | Fastening Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | 158 | 156 | 158 |
Third-party sales | Aerospace - Defense | Engineered Structures | |||
Revenue, Major Customer [Line Items] | |||
Sales | 270 | 303 | 256 |
Third-party sales | Aerospace - Defense | Forged Wheels | |||
Revenue, Major Customer [Line Items] | |||
Sales | 0 | 0 | 0 |
Third-party sales | Commercial Transportation | |||
Revenue, Major Customer [Line Items] | |||
Sales | 1,129 | 834 | 1,217 |
Third-party sales | Commercial Transportation | Engine Products | |||
Revenue, Major Customer [Line Items] | |||
Sales | 0 | 0 | 20 |
Third-party sales | Commercial Transportation | Fastening Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | 208 | 155 | 227 |
Third-party sales | Commercial Transportation | Engineered Structures | |||
Revenue, Major Customer [Line Items] | |||
Sales | 0 | 0 | 0 |
Third-party sales | Commercial Transportation | Forged Wheels | |||
Revenue, Major Customer [Line Items] | |||
Sales | 921 | 679 | 970 |
Third-party sales | Industrial and Other | |||
Revenue, Major Customer [Line Items] | |||
Sales | 863 | 810 | 813 |
Third-party sales | Industrial and Other | Engine Products | |||
Revenue, Major Customer [Line Items] | |||
Sales | 654 | 602 | 596 |
Third-party sales | Industrial and Other | Fastening Systems | |||
Revenue, Major Customer [Line Items] | |||
Sales | 141 | 126 | 116 |
Third-party sales | Industrial and Other | Engineered Structures | |||
Revenue, Major Customer [Line Items] | |||
Sales | 68 | 82 | 102 |
Third-party sales | Industrial and Other | Forged Wheels | |||
Revenue, Major Customer [Line Items] | |||
Sales | $ 0 | $ 0 | $ (1) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Layoff costs | $ 7 | $ 113 | $ 69 |
Net reversals of previously recorded layoff reserves | (3) | (21) | (6) |
Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments | 75 | 69 | (7) |
Non-cash asset impairments | 15 | 5 | 442 |
Net loss related to divestitures of assets and businesses | (8) | 8 | 63 |
Other | 4 | 8 | 21 |
Restructuring and other charges | $ 90 | $ 182 | $ 582 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2021USD ($) | Dec. 31, 2021USD ($)employeesegment | Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 90 | $ 182 | $ 582 | |
Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments | (75) | (69) | 7 | |
Accelerated depreciation | 15 | 2 | ||
Gain (loss) on sale of assets | 12 | 3 | 1 | |
Benefit from termination of plan | 3 | |||
Impairment of assets to be disposed of | 15 | 5 | ||
Business exit costs | 7 | |||
Asset impairment charges | 15 | 5 | 442 | |
Pension benefits paid | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 34 | 69 | ||
Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments | (75) | |||
Curtailment (charge) benefit | (6) | 0 | 0 | |
Other postretirement benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Curtailment (charge) benefit | 0 | 2 | 58 | |
Engine Products | Disks Long Lived Asset Group | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | 247 | |||
Engineered Structures | Disks Long Lived Asset Group | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairment charges | 181 | |||
Layoff costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 7 | $ 113 | $ 69 | |
Number of employees associated with layoff costs | employee | 253 | 4,301 | 917 | |
Layoff costs | Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 23 | 494 | ||
Layoff costs | Engineered Structures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 171 | |||
Layoff costs | Engine Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 75 | 1,706 | 103 | |
Layoff costs | Fastening Systems | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 6 | 1,675 | 132 | |
Layoff costs | Corporate Aircraft | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 1 | |||
Layoff costs | Engineered Structures | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 805 | 128 | ||
Layoff costs | Forged Wheels | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | employee | 92 | 60 | ||
Asset Impairment Associated Facility Closure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 4 | $ 1 | ||
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 4 | 6 | ||
Facility Closing | U.K. Forging Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 5 | |||
Reversal Of Prior Period Programs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ (3) | (21) | $ (6) | |
2021 Restructuring Programs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees associated with layoff costs | segment | 253 | |||
Number of employees separated | segment | 66 | |||
U.K. and U.S. pension plan settlement accounting | Pension benefits paid | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension, Other post-retirement benefits (costs) and deferred compensation - net settlement and curtailments | 74 | |||
Impairment Of A Cost Method Investment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 5 | 5 | ||
Impairment Of Disks | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 428 | |||
UK Forgings | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 46 | |||
Impairment For Trade Name Intangible Asset And Fixed Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 14 | |||
Small Additive Business | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 13 | |||
Corporate Aircraft | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 12 | |||
Pension Settlement Cost | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 12 | $ 8 | 9 | |
Special Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 2 | |||
Employee Severance Life Insurance Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 16 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Activity and Reserve Balances for Restructuring Charges (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | $ 54 | $ 13 | $ 22 | |
Cash payments | (43) | (51) | (63) | |
Restructuring and other charges | 90 | 182 | 582 | |
Other | (82) | (90) | (528) | |
Restructuring reserve ending balance | 19 | 54 | 13 | |
Restructuring and other charges | 90 | 182 | 582 | |
Gain (loss) on sale of assets | 12 | 3 | 1 | |
Benefit from termination of plan | 3 | |||
Impairment of assets to be disposed of | 15 | 5 | ||
Accelerated depreciation | 15 | 2 | ||
Pension benefits paid | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | $ 34 | 69 | ||
Settlements | 69 | 76 | 9 | |
Curtailment (charge) benefit | (6) | 0 | 0 | |
Other postretirement benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Settlements | 0 | 0 | 0 | |
Curtailment (charge) benefit | 0 | 2 | 58 | |
Layoff costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 54 | 13 | 13 | |
Cash payments | (41) | (51) | (63) | |
Restructuring and other charges | 79 | 161 | 58 | |
Other | (75) | (69) | 5 | |
Restructuring reserve ending balance | 17 | 54 | 13 | |
Restructuring and other charges | 7 | 113 | 69 | |
Layoff costs | Pension benefits paid | ||||
Restructuring Reserve [Roll Forward] | ||||
Settlements | 75 | 74 | ||
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve beginning balance | 0 | 0 | 9 | |
Cash payments | (2) | 0 | 0 | |
Restructuring and other charges | 11 | 21 | 524 | |
Other | (7) | (21) | (533) | |
Restructuring reserve ending balance | 2 | 0 | 0 | |
Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 4 | 6 | ||
Elimination Of Life Insurance Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 16 | |||
Other, Pension Settlement Cost | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 9 | |||
Impairment Of Disks | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 428 | |||
Executive Severance Net Of The Benefit Of Forfeited Executive Stock Compensation | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 2 | |||
Asset Impairment Associated With The Sale Of Business | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 59 | |||
Impairment For Trade Name Intangible Asset And Fixed Assets | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 14 | |||
Other Exit Cost Lease Termination Loss | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 12 | |||
Other Miscellaneous Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 7 | |||
Impairment Of A Cost Method Investment | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 5 | 5 | ||
Other Exit Costs, Reclassification Of Lease Exit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | $ 9 | |||
Asset Impairment Associated Facility Closure | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | $ 4 | 1 | ||
U.K. Forging Business | Facility Closing | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | $ 5 |
Interest Cost Components (Detai
Interest Cost Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Amount charged to interest expense, net | $ 259 | $ 317 | $ 338 |
Loss on debt redemption | 146 | 64 | 0 |
Amount capitalized | 8 | 11 | 33 |
Total | $ 413 | $ 392 | $ 371 |
Other Expense, Net - Schedule o
Other Expense, Net - Schedule of Other Expenses (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Non-service related net periodic benefit cost (H) | $ 9 | $ 26 | $ 17 |
Interest income | (2) | (5) | (24) |
Foreign currency losses (gains), net | 2 | (11) | 5 |
Net loss from asset sales | 9 | 8 | 10 |
Deferred compensation | 8 | 10 | 24 |
Other, net | (7) | 46 | (1) |
Total | $ 19 | $ 74 | $ 31 |
Other Expense, Net - Narrative
Other Expense, Net - Narrative (Details) € in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) |
Alcoa Corporation | ||
Other Non operating Income Expense [Line Items] | ||
Tax agreement, indemnification of ultimate liability, percent | 49.00% | 49.00% |
Spain | ||
Other Non operating Income Expense [Line Items] | ||
Income taxes receivable | $ 53 | € 45 |
Tax agreement, indemnification of ultimate liability, percent | 33.66% | 33.66% |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions | Mar. 11, 2021USD ($) | Jul. 25, 2019employee | Nov. 01, 2016USD ($) | Oct. 31, 2021USD ($) | Jun. 30, 2019employeelocation | Apr. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Labor agreement, number of years covered | 4 years | 3 years | ||||||||||||
Number of employees included in labor agreement | employee | 560 | 3,400 | ||||||||||||
Number of locations | location | 4 | |||||||||||||
Labor agreement, one time signing bonus | $ 9 | |||||||||||||
Restructuring and other charges | $ 90 | $ 182 | $ 582 | |||||||||||
Funded status, percent | 76.00% | |||||||||||||
Average duration for plans' projected cash flows | 11 years | |||||||||||||
Period expected long-term rate of return is applied | 5 years | |||||||||||||
Number of years over actual annual healthcare cost trend experience | 20 years | |||||||||||||
Expected long-term rate of return on plan assets | 6.20% | 6.00% | 5.60% | |||||||||||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% | |||||||||||
Rate to which the cost trend rate gradually declines | 4.50% | 4.50% | 4.50% | |||||||||||
Pension contributions | $ 96 | $ 257 | $ 268 | |||||||||||
Aggregate cash contribution to pension plan | $ 150 | |||||||||||||
Cash contribution term to pension plan | 30 months | |||||||||||||
Payment for pension and other postretirement benefits | $ 34 | $ 66 | $ 50 | |||||||||||
Expenses related to defined contribution plan | $ 66 | 73 | 87 | |||||||||||
Minimum | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Rate to which the cost trend rate gradually declines | 2.20% | |||||||||||||
Maximum | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Rate to which the cost trend rate gradually declines | 5.70% | |||||||||||||
Scenario, forecast | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Contribution next fiscal year | $ 44 | |||||||||||||
Discontinued Operations, Disposed of by Means Other than Sale | Arconic Corportion | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Increase (decrease) in postretirement benefits liability | 42 | |||||||||||||
Restructuring Charges | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Curtailment (charge) benefit | 16 | |||||||||||||
Pension benefits | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Increase (decrease) in postretirement benefits liability | $ 125 | |||||||||||||
Curtailment (charge) benefit | $ (6) | 0 | 0 | |||||||||||
Restructuring and other charges | $ 34 | 69 | ||||||||||||
Estimated pension contributions and other postretirement benefit payments | $ 110 | |||||||||||||
Other postretirement benefits | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Increase (decrease) in postretirement benefits liability | $ (39) | (6) | ||||||||||||
Curtailment (charge) benefit | $ 0 | 2 | 58 | |||||||||||
Number of years over actual annual healthcare cost trend experience | 3 years | |||||||||||||
United States | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Pension contributions | $ 96 | 227 | ||||||||||||
Payment for pension benefit plan in excess of minimum required | 12 | 25 | ||||||||||||
United States | Scenario, forecast | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Expected long-term rate of return on plan assets | 7.00% | |||||||||||||
Contribution next fiscal year | $ 35 | |||||||||||||
United States | Pension benefits | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Increase (decrease) in postretirement benefits liability | (75) | |||||||||||||
Curtailment (charge) benefit | (17) | |||||||||||||
United States | Other postretirement benefits | Restructuring Charges | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Curtailment (charge) benefit | $ 23 | 66 | ||||||||||||
Percent reduction of plan participants | 70.00% | |||||||||||||
Pension Settlement Cost | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Restructuring and other charges | $ 12 | $ 8 | $ 9 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Schedule of Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts recognized in the Consolidated Balance Sheet consist of: | ||
Current liabilities | $ (12) | $ (17) |
Noncurrent liabilities | (153) | (198) |
Pension benefits | ||
Change in benefit obligation | ||
Benefit obligation at beginning of year | 2,713 | 7,249 |
Transfer to Arconic Corporation | 0 | (4,355) |
Service cost | 4 | 6 |
Interest cost | 47 | 71 |
Amendments | 3 | 6 |
Actuarial (gains) losses | 55 | (313) |
Settlements | (275) | (398) |
Benefits paid | (140) | (153) |
Medicare Part D subsidy receipts | 0 | 0 |
Foreign currency translation impact | 1 | 26 |
Benefit obligation at end of year | 2,296 | 2,713 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 1,724 | 4,868 |
Transfer to Arconic Corporation | 0 | (2,982) |
Actual return on plan assets | 124 | 203 |
Employer contributions | 96 | 227 |
Benefits paid | (123) | (136) |
Administrative expenses | (12) | (12) |
Settlement payments | (277) | (413) |
Foreign currency translation impact | (1) | (31) |
Fair value of plan assets at end of year | 1,531 | 1,724 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Funded status | (765) | (989) |
Amounts recognized in the Consolidated Balance Sheet consist of: | ||
Noncurrent assets | 22 | 12 |
Current liabilities | (16) | (16) |
Noncurrent liabilities | (771) | (985) |
Net amount recognized | (765) | (989) |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | ||
Net actuarial loss | 1,067 | 1,274 |
Prior service cost (benefit) | 3 | 6 |
Net amount recognized, before tax effect | 1,070 | 1,280 |
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss consist of: | ||
Net actuarial (benefit) loss | (81) | 166 |
Amortization of accumulated net actuarial (loss) gain | (125) | (123) |
Loss transferred to Arconic Corporation | 0 | (2,144) |
Prior service cost (benefit) | 3 | 5 |
Amortization of prior service benefit | (7) | 0 |
Prior service credit transferred to Arconic Corporation | 0 | 0 |
Net amount recognized, before tax effect | (210) | (2,096) |
Other postretirement benefits | ||
Change in benefit obligation | ||
Benefit obligation at beginning of year | 215 | 786 |
Transfer to Arconic Corporation | 0 | (569) |
Service cost | 2 | 2 |
Interest cost | 5 | 7 |
Amendments | (31) | (11) |
Actuarial (gains) losses | 10 | (14) |
Settlements | 0 | 0 |
Benefits paid | (17) | (17) |
Medicare Part D subsidy receipts | 1 | 3 |
Foreign currency translation impact | 0 | 0 |
Benefit obligation at end of year | 165 | 215 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Transfer to Arconic Corporation | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 0 | 0 |
Benefits paid | 0 | 0 |
Administrative expenses | 0 | 0 |
Settlement payments | 0 | 0 |
Foreign currency translation impact | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Funded status | (165) | (215) |
Amounts recognized in the Consolidated Balance Sheet consist of: | ||
Noncurrent assets | 0 | 0 |
Net amount recognized | (165) | (215) |
Amounts recognized in Accumulated Other Comprehensive Loss consist of: | ||
Net actuarial loss | 11 | 22 |
Prior service cost (benefit) | (49) | (28) |
Net amount recognized, before tax effect | (38) | (6) |
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Loss consist of: | ||
Net actuarial (benefit) loss | (10) | 14 |
Amortization of accumulated net actuarial (loss) gain | 0 | 1 |
Loss transferred to Arconic Corporation | 0 | (170) |
Prior service cost (benefit) | (31) | (11) |
Amortization of prior service benefit | 9 | 5 |
Prior service credit transferred to Arconic Corporation | 0 | 13 |
Net amount recognized, before tax effect | (32) | (148) |
United States | Pension benefits | ||
Change in benefit obligation | ||
Benefit obligation at beginning of year | 2,327 | |
Benefit obligation at end of year | 2,039 | 2,327 |
Change in plan assets | ||
Fair value of plan assets at beginning of year | 1,361 | |
Fair value of plan assets at end of year | 1,278 | 1,361 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Funded status | $ (761) | $ (966) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Pension Plan Benefit Obligations (Details) - Pension benefits paid - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 2,296 | $ 2,713 | $ 7,249 |
Accumulated benefit obligation | 2,293 | 2,707 | |
The aggregate projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were as follows: | |||
Projected benefit obligation | 1,982 | 2,364 | |
Fair value of plan assets | 1,193 | 1,364 | |
The aggregate accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were as follows: | |||
Accumulated benefit obligation | 1,981 | 2,359 | |
Fair value of plan assets | $ 1,193 | $ 1,364 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension benefits paid | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 4 | $ 12 | $ 25 |
Interest cost | 47 | 97 | 235 |
Expected return on plan assets | (90) | (136) | (286) |
Recognized net actuarial loss | 56 | 78 | 139 |
Amortization of prior service cost (benefit) | 1 | 0 | 2 |
Settlement | 69 | 76 | 9 |
Curtailment benefit | 6 | 0 | 0 |
Net periodic benefit cost | 93 | 127 | 124 |
Discontinued operations | 0 | 20 | 95 |
Net amount recognized in Statement of Consolidated Operations | 93 | 107 | 29 |
Pension benefits paid | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment benefit | 17 | ||
Net periodic benefit cost | 61 | 58 | 127 |
Other postretirement benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 3 | 7 |
Interest cost | 5 | 10 | 28 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net actuarial loss | 0 | 3 | 4 |
Amortization of prior service cost (benefit) | (9) | (6) | (6) |
Settlement | 0 | 0 | 0 |
Curtailment benefit | 0 | (2) | (58) |
Net periodic benefit cost | (2) | 8 | (25) |
Discontinued operations | 0 | 6 | (15) |
Net amount recognized in Statement of Consolidated Operations | (2) | 2 | (10) |
Decrease in net periodic benefit cost for the recognition of the federal subsidy awarded under Medicare Part D (less than $1) | $ 1 | $ 1 | $ 11 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.70% | 2.40% | |
Cash balance plan interest crediting rate | 3.00% | 3.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate to calculate service cost | 2.80% | 3.30% | 4.30% |
Discount rate to calculate interest cost | 2.10% | 2.70% | 3.90% |
Expected long-term rate of return on plan assets | 6.20% | 6.00% | 5.60% |
Rate of compensation increase | 0.00% | 0.00% | 3.50% |
Cash balance plan interest crediting rate | 3.00% | 3.00% | 3.00% |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | |||
Health care cost trend rate assumed for next year | 5.50% | 5.50% | 5.50% |
Rate to which the cost trend rate gradually declines | 4.50% | 4.50% | 4.50% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Pension and Postretirement Plans Investment Policy and Weighted Average Asset Allocations (Details) | Dec. 31, 2021 |
Equities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 20.00% |
Equities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 55.00% |
Fixed income | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 25.00% |
Fixed income | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 55.00% |
Other investments | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 15.00% |
Other investments | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Policy range | 35.00% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net payables which represents assets related to divested businesses to be transferred to the buyers | $ 17 | $ (76) | |
Pension benefits paid | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net plan assets | 1,531 | 1,724 | $ 4,868 |
Net plan assets excluding certain net receivables | 1,514 | 1,800 | |
Pension benefits paid | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 794 | 595 | |
Pension benefits paid | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 608 | 431 | |
Pension benefits paid | Long/short equity hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 60 | 77 | |
Pension benefits paid | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 126 | 87 | |
Pension benefits paid | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 586 | 1,005 | |
Pension benefits paid | Intermediate and long duration government/credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 452 | 688 | |
Pension benefits paid | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 134 | 317 | |
Pension benefits paid | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 134 | 200 | |
Pension benefits paid | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 64 | 83 | |
Pension benefits paid | Discretionary and systematic macro hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 47 | 94 | |
Pension benefits paid | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 23 | 23 | |
Pension benefits paid | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net plan assets | 141 | 446 | |
Pension benefits paid | Level 1 | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 2 | 274 | |
Pension benefits paid | Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 2 | 274 | |
Pension benefits paid | Level 1 | Long/short equity hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 1 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 1 | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 139 | 141 | |
Pension benefits paid | Level 1 | Intermediate and long duration government/credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 124 | 78 | |
Pension benefits paid | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 15 | 63 | |
Pension benefits paid | Level 1 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 31 | |
Pension benefits paid | Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 31 | |
Pension benefits paid | Level 1 | Discretionary and systematic macro hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net plan assets | 644 | 922 | |
Pension benefits paid | Level 2 | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 197 | 89 | |
Pension benefits paid | Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 197 | 89 | |
Pension benefits paid | Level 2 | Long/short equity hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 447 | 833 | |
Pension benefits paid | Level 2 | Intermediate and long duration government/credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 328 | 579 | |
Pension benefits paid | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 119 | 254 | |
Pension benefits paid | Level 2 | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | Discretionary and systematic macro hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net plan assets | 729 | 432 | |
Pension benefits paid | Net Asset Value | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 595 | 232 | |
Pension benefits paid | Net Asset Value | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 409 | 68 | |
Pension benefits paid | Net Asset Value | Long/short equity hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 60 | 77 | |
Pension benefits paid | Net Asset Value | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 126 | 87 | |
Pension benefits paid | Net Asset Value | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 31 | |
Pension benefits paid | Net Asset Value | Intermediate and long duration government/credit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 31 | |
Pension benefits paid | Net Asset Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 0 | 0 | |
Pension benefits paid | Net Asset Value | Other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 134 | 169 | |
Pension benefits paid | Net Asset Value | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 64 | 52 | |
Pension benefits paid | Net Asset Value | Discretionary and systematic macro hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | 47 | 94 | |
Pension benefits paid | Net Asset Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension and other postretirement plans' assets | $ 23 | $ 23 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Funding and Cash Flows and Defined Contribution Plans (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension benefits paid | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | $ 152 |
2023 | 149 |
2024 | 145 |
2025 | 145 |
2026 | 141 |
2027 - 2031 | 671 |
Total benefit payments | 1,403 |
Other post- retirement benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | 12 |
2023 | 12 |
2024 | 12 |
2025 | 11 |
2026 | 11 |
2027 - 2031 | 53 |
Total benefit payments | $ 111 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 28 | $ 84 | $ 128 |
Foreign | 296 | 87 | 82 |
Income before income taxes | $ 324 | $ 171 | $ 210 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes on Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ (9) | $ (2) | $ 0 |
Foreign | 39 | 2 | 86 |
State and local | (2) | (2) | 0 |
Current provision for income taxes, total | 28 | (2) | 86 |
Deferred: | |||
Federal | 22 | (67) | 33 |
Foreign | 11 | 11 | (41) |
State and local | 5 | 18 | 6 |
Deferred provision for income taxes, total | 38 | (38) | (2) |
Total | $ 66 | $ (40) | $ 84 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Rate to Arconic's Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Foreign tax rate differential | (0.70%) | (1.20%) | 10.90% |
U.S. and residual tax on foreign earnings | 6.50% | 5.60% | 15.30% |
U.S. State and local taxes | 1.00% | 2.20% | 0.80% |
Federal (cost) benefit of state tax | (0.30%) | (2.00%) | 1.20% |
Permanent differences related to asset disposals and items included in restructuring and other charges | (0.30%) | 6.80% | (1.30%) |
Non-deductible officer compensation | 1.60% | 3.50% | 4.90% |
Statutory tax rate and law changes | 1.00% | (15.90%) | (0.60%) |
Tax holidays | (0.40%) | (0.40%) | (8.20%) |
Tax credits | (10.40%) | (0.40%) | (1.30%) |
Changes in valuation allowances | 5.10% | 74.80% | (52.20%) |
Changes in uncertain tax positions | 0.00% | (116.90%) | 0.30% |
Prior year tax adjustments | (3.70%) | (1.70%) | 44.30% |
Other | 0.00% | 1.20% | 4.90% |
Effective tax rate | 20.40% | (23.40%) | 40.00% |
Tax law change expense (benefit) | $ (30) | ||
Benefit for income tax credits related to development incentives in Hungary | $ 32 | ||
Favorable spanish tax case decision | 104 | ||
Foreign tax credits amount released | $ 112 | ||
Reserve liability | 64 | ||
Tax position expense (benefit) | $ (30) | ||
Write off | 112 | ||
Tax expense (benefit) deduction | $ 24 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Percentage of temporary tax differences that reverse within the carryforward period | 10.00% | |||
Percentage of deferred tax asset exclusive of reversing temporary differences | 90.00% | |||
Foreign tax credits | $ 22 | $ 88 | ||
Reduction from repatriation of foreign earnings | 9 | |||
Reduction from suspended foreign tax credits | 4 | |||
Deduction of foreign taxes | 9 | 113 | ||
Cumulative amount of valuation allowance | 180 | |||
Increase (decrease) to valuation allowance | 113 | $ 136 | 19 | |
Valuation allowance | $ 2,279 | $ 2,307 | $ 2,121 | $ 2,357 |
Percentage of the effect of unrecognized tax benefit, if recorded | 1.00% | 1.00% | 36.00% | |
Interest or penalties recognized (less than for 2021) | $ 1 | $ 2 | $ 6 | |
Income related to accrued interest and penalties (less than for 2019) | 3 | 25 | 1 | |
Amount accrued for payment of interest and penalties (less than for 2021) | 1 | 2 | 23 | |
Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Increase (decrease) to valuation allowance | 3 | 20 | (11) | |
Tax Authority, Spain | Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Increase (decrease) to valuation allowance | 8 | 104 | ||
Other Net State Deferred Tax Asset | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | 632 | |||
Other Net State Deferred Tax Asset | Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Increase (decrease) to valuation allowance | 20 | $ (58) | $ 5 | |
Capital Loss Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Increase (decrease) to valuation allowance | (9) | |||
Valuation allowance, amount released | $ 0 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||||
Deferred tax assets, depreciation | $ 8 | $ 21 | ||
Deferred tax assets, employee benefits | 300 | 364 | ||
Deferred tax assets, loss provisions | 20 | 24 | ||
Deferred tax assets, deferred income | 50 | 41 | ||
Deferred tax assets, interest | 105 | 3 | ||
Deferred tax assets, tax loss carryforwards | 3,226 | 3,267 | ||
Deferred tax assets, tax credit carryforwards | 358 | 378 | ||
Deferred tax assets, other | 10 | 7 | ||
Deferred tax assets, gross | 4,077 | 4,105 | ||
Valuation allowance | (2,279) | (2,307) | $ (2,121) | $ (2,357) |
Deferred tax assets, net | 1,798 | 1,798 | ||
Deferred tax liabilities, depreciation | 538 | 506 | ||
Deferred tax liabilities, employee benefits | 3 | 0 | ||
Deferred tax liabilities, loss provisions | 1 | 1 | ||
Deferred tax liabilities, deferred expense | 1,098 | 1,033 | ||
Deferred tax liabilities, interest | 0 | 0 | ||
Deferred tax liabilities, tax loss carryforwards | 0 | 0 | ||
Deferred tax liabilities, tax credit carryforwards | 0 | 0 | ||
Deferred tax liabilities, other | 7 | 13 | ||
Deferred tax liabilities, gross | $ 1,647 | $ 1,553 |
Income Taxes - Schedule of Expi
Income Taxes - Schedule of Expiration Periods of Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | $ 3,226 | |||
Tax credit carryforwards | 358 | |||
Other | 493 | |||
Valuation allowance | (2,279) | $ (2,307) | $ (2,121) | $ (2,357) |
Deferred tax assets, net | 1,798 | $ 1,798 | ||
Expires within 10 years | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 422 | |||
Tax credit carryforwards | 278 | |||
Other | 0 | |||
Valuation allowance | (637) | |||
Deferred tax assets, net | 63 | |||
Expires within 11-20 years | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 580 | |||
Tax credit carryforwards | 66 | |||
Other | 0 | |||
Valuation allowance | (293) | |||
Deferred tax assets, net | 353 | |||
No expiration | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 2,224 | |||
Tax credit carryforwards | 14 | |||
Other | 424 | |||
Valuation allowance | (1,329) | |||
Deferred tax assets, net | 1,333 | |||
Other | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss carryforwards | 0 | |||
Tax credit carryforwards | 0 | |||
Other | 69 | |||
Valuation allowance | (20) | |||
Deferred tax assets, net | $ 49 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation Of Changes In Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 2,307 | $ 2,121 | $ 2,357 |
Increase to allowance | 113 | 136 | 19 |
Release of allowance | (94) | (50) | (211) |
Acquisitions and divestitures | 0 | 0 | (2) |
Tax apportionment, tax rate and tax law changes | 63 | (23) | (13) |
Foreign currency translation | (110) | 123 | (29) |
Balance at end of year | $ 2,279 | $ 2,307 | $ 2,121 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Excluding Interest and Penalties) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 2 | $ 176 | $ 148 |
Additions for tax positions of the current year | 0 | 0 | 34 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | 0 | (182) | (1) |
Settlements with tax authorities | 0 | (1) | 0 |
Expiration of the statute of limitations | 0 | 0 | (2) |
Foreign currency translation | 0 | 9 | (3) |
Balance at end of year | $ 2 | $ 2 | $ 176 |
Preferred and Common Stock - Na
Preferred and Common Stock - Narrative (Details) | Sep. 28, 2021 | Jan. 31, 2022USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jul. 30, 2015tranche | Dec. 31, 2021USD ($)$ / sharesshares | Sep. 30, 2021$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2021USD ($)class$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Feb. 01, 2022USD ($) | Oct. 15, 2019USD ($) | Dec. 01, 2015USD ($) |
Preferred Stock | |||||||||||||
Preferred stock, number of classes | class | 2 | ||||||||||||
Common Stock | |||||||||||||
Common stock, shares authorized (in shares) | shares | 600,000,000 | 600,000,000 | |||||||||||
Common stock issued (in shares) | shares | 421,691,912 | 421,691,912 | |||||||||||
Common stock outstanding (in shares) | shares | 421,691,912 | 421,691,912 | 433,000,000 | ||||||||||
Common stock, dividends declared per share (usd per share) | $ / shares | $ 0.04 | $ 0.02 | $ 0.12 | ||||||||||
Dividends paid per share (usd per share) | $ / shares | $ 0.02 | $ 0.02 | $ 0.06 | $ 0.02 | |||||||||
Number of shares available for issuance (in shares) | shares | 47,000,000 | 47,000,000 | |||||||||||
Common stock reserved for future issuance (in shares) | shares | 31,000,000 | 31,000,000 | |||||||||||
Stock repurchased during period | $ 430,000,000 | $ 73,000,000 | $ 1,150,000,000 | ||||||||||
Stock repurchase program, remaining repurchase amount | $ 1,347,000,000 | $ 1,347,000,000 | |||||||||||
Average shares outstanding - diluted (in shares) | shares | 435,000,000 | 439,000,000 | 463,000,000 | ||||||||||
Stock-based Compensation | |||||||||||||
Cash payments for performance awards | $ 23,000,000 | ||||||||||||
Stock based compensation expense (benefit), before tax | $ 12,000,000 | 40,000,000 | $ 46,000,000 | $ 69,000,000 | |||||||||
Stock based compensation expense, after tax | 36,000,000 | 42,000,000 | 63,000,000 | ||||||||||
Share-based payment arrangement included in cash bonus award | $ 2,000,000 | $ 21,000,000 | |||||||||||
Unrecognized compensation costs on non-vested stock option grants (pretax) | 68,000,000 | $ 68,000,000 | |||||||||||
Unrecognized compensation costs on non-vested awards, weighted average period of recognition in years | 1 year 9 months 18 days | ||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in usd per share) | $ / shares | $ 2.57 | ||||||||||||
Average risk-free interest rate. percentage | 0.20% | 0.30% | 1.60% | ||||||||||
Number of options, outstanding weighted average remaining contractual life | 2 years 7 months 6 days | ||||||||||||
Total intrinsic value of options outstanding | $ 15,000,000 | $ 15,000,000 | |||||||||||
Proceeds from exercise of employee stock options | 22,000,000 | $ 33,000,000 | $ 56,000,000 | ||||||||||
Total tax benefit realized from these exercises | 2,000,000 | 3,000,000 | 4,000,000 | ||||||||||
Total intrinsic value of options exercised | 10,000,000 | 14,000,000 | 17,000,000 | ||||||||||
Total intrinsic value of options exercised converted | 55,000,000 | 104,000,000 | 48,000,000 | ||||||||||
Restructuring and Other Charges | |||||||||||||
Stock-based Compensation | |||||||||||||
Stock based compensation expense (benefit), before tax | $ (2,000,000) | (3,000,000) | |||||||||||
Subsequent Event | |||||||||||||
Common Stock | |||||||||||||
Stock repurchased during period | $ 100,000,000 | ||||||||||||
Stock repurchase program, remaining repurchase amount | $ 1,247,000,000 | ||||||||||||
Number of shares (in shares) | shares | 3,000,000 | ||||||||||||
Average price per share (in usd per share) | $ / shares | $ 33.81 | ||||||||||||
Average shares outstanding - diluted (in shares) | shares | 425,000,000 | ||||||||||||
Stock options | |||||||||||||
Stock-based Compensation | |||||||||||||
Stock options granted, vesting period | 3 years | ||||||||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||||||||||
Stock options granted, contractual term | 6 months | ||||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Stock-based Compensation | |||||||||||||
Stock options granted, contractual term | 3 years | ||||||||||||
Stock based compensation expense (benefit), before tax | $ 0 | $ 0 | $ 0 | ||||||||||
Percentage of remaining share based compensation expenses | 95.00% | ||||||||||||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in usd per share) | $ / shares | $ 43.41 | $ 21.33 | $ 11.93 | ||||||||||
Volatility, percentage | 56.00% | 48.30% | 33.40% | ||||||||||
Share-based Compensation Award, Tranche One | Stock options | |||||||||||||
Stock-based Compensation | |||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 33.33% | ||||||||||||
Share-based Compensation Award, Tranche Two | Stock options | |||||||||||||
Stock-based Compensation | |||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 33.33% | ||||||||||||
Share-based Compensation Award, Tranche Three | Stock options | |||||||||||||
Stock-based Compensation | |||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 33.33% | ||||||||||||
Convertible Debt | |||||||||||||
Common Stock | |||||||||||||
Number of repayment tranches | tranche | 2 | ||||||||||||
Convertible Debt | Tranche Due December 2015 | |||||||||||||
Common Stock | |||||||||||||
Aggregate principal amount | $ 115,000,000 | ||||||||||||
Convertible Debt | Tranche Due October 2019 | |||||||||||||
Common Stock | |||||||||||||
Aggregate principal amount | $ 403,000,000 | ||||||||||||
Revolving Credit Agreement | |||||||||||||
Common Stock | |||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Preferred Class A | |||||||||||||
Preferred Stock | |||||||||||||
Preferred stock dividend declared (usd per share) | $ / shares | $ 3.75 | $ 3.75 | $ 3.75 | ||||||||||
Number of shares of preferred stock authorized (in shares) | shares | 660,000 | 660,000 | |||||||||||
Preferred stock par value (usd per share) | $ / shares | $ 100 | $ 100 | |||||||||||
Preferred stock, shares outstanding (in shares) | shares | 546,024 | 546,024 | |||||||||||
Preferred Class B | |||||||||||||
Preferred Stock | |||||||||||||
Number of shares of preferred stock authorized (in shares) | shares | 10,000,000 | 10,000,000 | |||||||||||
Preferred stock par value (usd per share) | $ / shares | $ 1 | $ 1 | |||||||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 |
Preferred and Common Stock - Sc
Preferred and Common Stock - Schedule of Share Activity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning balance (in shares) | 433,000,000 | ||
Common stock outstanding, ending balance (in shares) | 421,691,912 | 433,000,000 | |
Common stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning balance (in shares) | 432,906,377 | 432,855,183 | 483,270,717 |
Issued for stock-based compensation plans (in shares) | 2,195,681 | 3,896,119 | 4,436,830 |
Repurchase and retirement of common stock (in shares) | (13,410,146) | (3,844,925) | (54,852,364) |
Common stock outstanding, ending balance (in shares) | 421,691,912 | 432,906,377 | 432,855,183 |
Preferred and Common Stock - De
Preferred and Common Stock - Details For the Share Repurchases (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
May 2021/June 2021 accelerated share repurchase (“ASR”) total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 5,878,791 |
Average price per share (in usd per share) | $ / shares | $ 34.02 |
Total | $ | $ 200 |
August 2021 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 769,274 |
Average price per share (in usd per share) | $ / shares | $ 32.50 |
Total | $ | $ 25 |
October 2021 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 879,307 |
Average price per share (in usd per share) | $ / shares | $ 30.71 |
Total | $ | $ 27 |
November 2021 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 2,336,733 |
Average price per share (in usd per share) | $ / shares | $ 30.79 |
Total | $ | $ 72 |
December 2021 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 3,546,041 |
Average price per share (in usd per share) | $ / shares | $ 29.91 |
Total | $ | $ 106 |
2021 Share repurchase total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 13,410,146 |
Average price per share (in usd per share) | $ / shares | $ 32.07 |
Total | $ | $ 430 |
August/September 2020 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 2,907,094 |
Average price per share (in usd per share) | $ / shares | $ 17.36 |
Total | $ | $ 51 |
November 2020 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 937,831 |
Average price per share (in usd per share) | $ / shares | $ 23.99 |
Total | $ | $ 22 |
2020 Share repurchase total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 3,844,925 |
Average price per share (in usd per share) | $ / shares | $ 18.98 |
Total | $ | $ 73 |
February 2019 ASR total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 36,434,423 |
Average price per share (in usd per share) | $ / shares | $ 19.21 |
Total | $ | $ 700 |
May 2019 ASR total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 9,016,981 |
Average price per share (in usd per share) | $ / shares | $ 22.18 |
Total | $ | $ 200 |
August 2019 ASR total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 7,774,279 |
Average price per share (in usd per share) | $ / shares | $ 25.73 |
Total | $ | $ 200 |
November 2019 open market repurchase | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 1,626,681 |
Average price per share (in usd per share) | $ / shares | $ 30.74 |
Total | $ | $ 50 |
2019 Share repurchase total | |
Accelerated Share Repurchases [Line Items] | |
Number of shares (in shares) | shares | 54,852,364 |
Average price per share (in usd per share) | $ / shares | $ 20.97 |
Total | $ | $ 1,150 |
Preferred and Common Stock - _2
Preferred and Common Stock - Schedule of Activity for Stock Options and Stock Awards (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of options outstanding at the beginning of the year (in shares) | shares | 3 |
Number of options granted (in shares) | shares | 0 |
Number of options exercised (in shares) | shares | (1) |
Number of options converted (in shares) | shares | 0 |
Number of options expired or forfeited (in shares) | shares | 0 |
Number of options outstanding at the end of the year (in shares) | shares | 2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price per option, outstanding beginning of year (in usd per share) | $ / shares | $ 24.47 |
Weighted average exercise price per option, granted (in usd per share) | $ / shares | 0 |
Weighted average exercise price per option, exercised (in usd per share) | $ / shares | 21.70 |
Weighted average exercise price per option, converted (in usd per share) | $ / shares | 0 |
Weighted average exercise price per option, expired or forfeited (in usd per share) | $ / shares | 34.68 |
Weighted average exercise price per option, outstanding end of year (in usd per share) | $ / shares | $ 23.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of awards, outstanding beginning of year (in shares) | shares | 9 |
Number of awards, granted (in shares) | shares | 2 |
Number of awards, exercised (in shares) | shares | 0 |
Number of awards, converted (in shares) | shares | (2) |
Number of awards, expired or forfeited (in shares) | shares | (1) |
Number of awards, outstanding end of year (in shares) | shares | 8 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted average FMV per award, outstanding beginning of year (in usd per share) | $ / shares | $ 13.68 |
Weighted average FMV per award, granted (in usd per share) | $ / shares | 32.15 |
Weighted average FMV per award, exercised (in usd per share) | $ / shares | 0 |
Weighted average FMV per award, converted (in usd per share) | $ / shares | 19.52 |
Weighted average FMV per award, expired or forfeited (in usd per share) | $ / shares | 20.94 |
Weighted average FMV per award, outstanding, end of year (in usd per share) | $ / shares | $ 16.19 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Information Used to Compute Basic and Diluted EPS (Details) - USD ($) shares in Millions, $ in Millions | Oct. 15, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income from continuing operations | $ 258 | $ 211 | $ 126 | |
Less: preferred stock dividends declared | 2 | 2 | 2 | |
Net income from continuing operations attributable to common shareholders | 256 | 209 | 124 | |
Income from discontinued operations | 0 | 50 | 344 | |
Net income attributable to common shareholders - basic | 256 | 259 | 468 | |
Add: interest expense related to convertible notes | 0 | 0 | 9 | |
Net income attributable to common shareholders - diluted | $ 256 | $ 259 | $ 477 | |
Average shares outstanding - basic (in shares) | 430 | 435 | 446 | |
Effect of dilutive securities: | ||||
Stock options (in shares) | 0 | 0 | 1 | |
Stock and performance awards (in shares) | 5 | 4 | 5 | |
Convertible notes (in shares) | 0 | 0 | 11 | |
Average shares outstanding - diluted (in shares) | 435 | 439 | 463 | |
Convertible notes | ||||
Effect of dilutive securities: | ||||
Number of anti-dilutive securities (in shares) | 15 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Common stock outstanding (in shares) | 421,691,912 | 433,000,000 |
Decrease in average shares outstanding (in shares) | 5,000,000 | |
Incremental common shares attributable to dilutive effect of accelerated share repurchase agreements (in shares) | 13,000,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Average Share Outstanding (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive securities (in shares) | 0 | 1,000 | 1,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,577 | $ 4,605 | $ 5,569 |
Other comprehensive income (loss): | |||
Tax expense | (1) | ||
Total Other comprehensive income (loss), net of tax | 80 | 16 | (401) |
Ending balance | 3,508 | 3,577 | 4,605 |
Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 73 | ||
Accumulated other comprehensive loss balance at end of period | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,943) | (3,329) | (2,926) |
Other comprehensive income (loss): | |||
Total Other comprehensive income (loss), net of tax | 80 | 16 | (401) |
Ending balance | (1,863) | (1,943) | (3,329) |
Accumulated other comprehensive loss balance at end of period | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2) | ||
Pension and other postretirement benefits (H) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (980) | (2,732) | (2,344) |
Other comprehensive income (loss): | |||
Unrecognized net actuarial gain (loss) and prior service cost/benefit | 111 | (211) | (587) |
Tax (expense) benefit | (26) | 48 | 129 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 85 | (163) | (458) |
Amortization of net actuarial loss and prior service cost | 123 | 149 | 90 |
Tax expense | (27) | (32) | (20) |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | 96 | 117 | 70 |
Total Other comprehensive income (loss), net of tax | 181 | (46) | (388) |
Transfer to Arconic Corporation | 0 | 1,798 | 0 |
Ending balance | (799) | (980) | (2,732) |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (966) | (596) | (583) |
Other comprehensive income (loss): | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | (96) | 58 | (13) |
Transfer to Arconic Corporation | 0 | (428) | 0 |
Ending balance | (1,062) | (966) | (596) |
Debt securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | (3) |
Other comprehensive income (loss): | |||
Total Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 3 |
Ending balance | 0 | 0 | 0 |
Cash flow hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 3 | (1) | 4 |
Other comprehensive income (loss): | |||
Unrecognized net actuarial gain (loss) and prior service cost/benefit | 20 | 0 | (9) |
Tax (expense) benefit | (4) | 0 | 3 |
Total Other comprehensive income (loss) before reclassifications, net of tax | 16 | 0 | (6) |
Amortization of net actuarial loss and prior service cost | (26) | 6 | 4 |
Tax expense | 5 | (2) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | (21) | 4 | 3 |
Total Other comprehensive income (loss), net of tax | (5) | 4 | (3) |
Ending balance | $ (2) | $ 3 | (1) |
Cash flow hedges | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ (2) |
Receivables (Details)
Receivables (Details) $ in Millions | Aug. 30, 2021USD ($) | Aug. 29, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)agreement | Dec. 31, 2020USD ($) |
Schedule Of Financial Receivables [Line Items] | |||||
Accounts receivable securitization arrangements | agreement | 2 | ||||
Total accounts receivable securitization arrangements | $ 325 | $ 425 | |||
Accounts receivable securitization, amount drawn | 250 | 250 | |||
Customer One | |||||
Schedule Of Financial Receivables [Line Items] | |||||
Accounts receivable, sale | 368 | ||||
Accounts receivable sale, amount outstanding | 109 | ||||
Customer Two | |||||
Schedule Of Financial Receivables [Line Items] | |||||
Accounts receivable, sale | 181 | ||||
Accounts receivable sale, amount outstanding | 50 | ||||
Receivables Sale Program | |||||
Schedule Of Financial Receivables [Line Items] | |||||
Funding of customer receivables sold | $ 160 | ||||
Deferred purchase price receivable | $ 0 | $ 211 | 0 | 12 | |
Decrease from termination of deferred purchase program receivable | 51 | ||||
Net cash funding received during the period | 44 | 146 | |||
Amount of cash draws under arrangement during the period | 41 | 207 | |||
Amount of cash repayments under arrangement during the period | 85 | 353 | |||
Receivables Purchase Agreement | |||||
Schedule Of Financial Receivables [Line Items] | |||||
Funding of customer receivables sold | 325 | $ 125 | |||
Increase in funding of customer receivables sold | 200 | ||||
Repurchases of receivables | $ 211 | ||||
Accounts receivable, sale | 1,057 | ||||
Accounts receivable sale, amount outstanding | 250 | 46 | |||
Financing receivables, held as collateral | 79 | $ 33 | |||
Maximum | Receivables Sale Program | |||||
Schedule Of Financial Receivables [Line Items] | |||||
Funding of customer receivables sold | $ 300 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory Components (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 478 | $ 528 |
Work-in-process | 631 | 629 |
Purchased raw materials | 256 | 292 |
Operating supplies | 37 | 39 |
Total inventories | $ 1,402 | $ 1,488 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventories valued on a LIFO basis | $ 523 | $ 458 |
Total inventories valued on an average-cost basis | $ 192 | $ 131 |
Properties, Plants, and Equip_3
Properties, Plants, and Equipment, Net - Property Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 5,057 | $ 5,010 |
Less: accumulated depreciation and amortization | 2,772 | 2,626 |
Properties plants and equipment excluding construction work in progress | 2,285 | 2,384 |
Construction work-in-progress | 182 | 208 |
Properties, plants, and equipment, net | 2,467 | 2,592 |
Land and land rights | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 91 | 98 |
Structures | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | 1,034 | 1,033 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants, and equipment, gross | $ 3,932 | $ 3,879 |
Properties, Plants, and Equip_4
Properties, Plants, and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 15 | $ 5 | $ 442 | |
Depreciation | $ 232 | $ 236 | $ 234 | |
Arconic Engines | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 428 | |||
Arconic Engines | Property, Plant and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | 198 | |||
Arconic Engines | Indefinite-lived Intangible Assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | 197 | |||
Arconic Engines | Other Noncurrent Assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | 33 | |||
Arconic Engines | Engine Products | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | 247 | |||
Arconic Engines | Engineered Structurs Segments | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 181 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill | $ 4,823 | $ 4,786 | ||
Accumulated impairment losses | (721) | (719) | ||
Goodwill, net | 4,102 | 4,067 | ||
Impairment | $ 0 | (4) | (2) | |
Translation and other | (31) | 37 | ||
Transfer from Engine Products to Engineered Structures | 0 | |||
Goodwill | 4,792 | 4,823 | ||
Accumulated impairment losses | (725) | (721) | ||
Goodwill, net | 4,067 | 4,102 | ||
Goodwill | 4,067 | 4,102 | ||
Engine Products | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 2,890 | 2,883 | ||
Accumulated impairment losses | (719) | (719) | ||
Goodwill, net | 2,171 | 2,164 | ||
Impairment | 0 | 0 | ||
Translation and other | (22) | 24 | ||
Transfer from Engine Products to Engineered Structures | (17) | |||
Goodwill | 2,868 | 2,890 | ||
Accumulated impairment losses | (719) | (719) | ||
Goodwill, net | 2,149 | 2,171 | ||
Goodwill | 2,149 | 2,171 | $ 17 | |
Fastening Systems | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 1,620 | 1,607 | ||
Accumulated impairment losses | 0 | 0 | ||
Goodwill, net | 1,620 | 1,607 | ||
Impairment | (4) | 0 | ||
Translation and other | (9) | 13 | ||
Transfer from Engine Products to Engineered Structures | 0 | |||
Goodwill | 1,611 | 1,620 | ||
Accumulated impairment losses | (4) | 0 | ||
Goodwill, net | 1,607 | 1,620 | ||
Goodwill | 1,607 | 1,620 | ||
Engineered Structures | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 306 | 289 | ||
Accumulated impairment losses | (2) | 0 | ||
Goodwill, net | 304 | 289 | ||
Impairment | 0 | (2) | ||
Translation and other | 0 | 0 | ||
Transfer from Engine Products to Engineered Structures | 17 | |||
Goodwill | 306 | 306 | ||
Accumulated impairment losses | (2) | (2) | ||
Goodwill, net | 304 | 304 | ||
Goodwill | 304 | 304 | ||
Forged Wheels | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 7 | 7 | ||
Accumulated impairment losses | 0 | 0 | ||
Goodwill, net | 7 | 7 | ||
Impairment | 0 | 0 | ||
Translation and other | 0 | 0 | ||
Transfer from Engine Products to Engineered Structures | 0 | |||
Goodwill | 7 | 7 | ||
Accumulated impairment losses | 0 | 0 | ||
Goodwill, net | 7 | 7 | ||
Goodwill | $ 7 | $ 7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 30, 2020 | |
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 15.00% | 60.00% | ||||
Impairment of goodwill | $ 0 | $ 4 | $ 2 | |||
Amortization of intangible assets | 36 | 40 | $ 58 | |||
Engineered Structures | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | 0 | 2 | ||||
Fastening Systems | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | 4 | $ 0 | ||||
Engineered Structures And Fastening Systems | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | 0 | |||||
Minimum | ||||||
Goodwill [Line Items] | ||||||
Expected amortization for the year 2022 | 34 | |||||
Expected amortization for the year 2023 | 34 | |||||
Expected amortization for the year 2024 | 34 | |||||
Expected amortization for the year 2025 | 34 | |||||
Expected amortization for the year 2026 | $ 34 | |||||
Minimum | Engineered Structures | ||||||
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 30.00% | |||||
Maximum | ||||||
Goodwill [Line Items] | ||||||
Expected amortization for the year 2022 | $ 39 | |||||
Expected amortization for the year 2023 | 39 | |||||
Expected amortization for the year 2024 | 39 | |||||
Expected amortization for the year 2025 | 39 | |||||
Expected amortization for the year 2026 | $ 39 | |||||
Maximum | Fastening Systems | ||||||
Goodwill [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 50.00% | |||||
Disks Assets Group | ||||||
Goodwill [Line Items] | ||||||
Intangible asset impairments | $ 197 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 959 | $ 961 |
Accumulated amortization | (442) | (422) |
Intangibles, net | 517 | 539 |
Indefinite-lived trade names and trademarks | 32 | 32 |
Total other intangible assets, gross | 991 | 993 |
Total other intangible assets, net | 549 | 571 |
Computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 206 | 194 |
Accumulated amortization | (175) | (169) |
Intangibles, net | 31 | 25 |
Patents and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 67 | 67 |
Accumulated amortization | (65) | (65) |
Intangibles, net | 2 | 2 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 686 | 700 |
Accumulated amortization | (202) | (188) |
Intangibles, net | $ 484 | $ 512 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 63 | $ 67 | $ 84 |
Leases - Operating Lease Assets
Leases - Operating Lease Assets and Liabilities in the Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Right-of-use assets classified in Other noncurrent assets | $ 108 | $ 131 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Current portion of lease liabilities classified in Other current liabilities | $ 33 | $ 38 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities and deferred credits | Other noncurrent liabilities and deferred credits |
Long-term portion of lease liabilities classified in Other noncurrent liabilities and deferred credits | $ 81 | $ 100 |
Total lease liabilities | $ 114 | $ 138 |
Leases - Future Minimum Contrac
Leases - Future Minimum Contractual Operating Lease Obligations (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 38 | |
2023 | 28 | |
2024 | 19 | |
2025 | 12 | |
2026 | 10 | |
Thereafter | 27 | |
Total lease payments | 134 | |
Less: Imputed interest | (20) | |
Present value of lease liabilities | $ 114 | $ 138 |
Leases - Right of Use Assets (D
Leases - Right of Use Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ 16 | $ 35 | $ 26 |
Weighted-average remaining lease term in years | 6 years | 6 years | 6 years |
Weighted-average discount rate | 5.40% | 5.60% | 5.90% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 02, 2021 | Jan. 15, 2021 | Dec. 31, 2020 | May 21, 2020 | Apr. 24, 2020 | Apr. 06, 2020 |
Debt Instrument [Line Items] | ||||||||
Other | $ (18) | $ (12) | ||||||
Long-term debt | 4,232 | 5,075 | ||||||
Less: amount due within one year | 5 | 376 | ||||||
Total long-term debt | 4,227 | $ 4,699 | ||||||
5.400% Notes, due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 5.40% | 5.40% | 5.40% | 5.40% | ||||
Amount outstanding | 0 | $ 361 | ||||||
5.870% Notes, due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 5.87% | 5.87% | ||||||
Amount outstanding | $ 0 | $ 476 | ||||||
5.125% Notes, due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 5.125% | 5.125% | ||||||
Amount outstanding | $ 1,150 | 1,250 | ||||||
6.875% Notes, due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 6.875% | 6.875% | 6.875% | |||||
Amount outstanding | $ 600 | 1,200 | ||||||
5.900% Notes, due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 5.90% | |||||||
Amount outstanding | $ 625 | 625 | ||||||
6.750% Bonds, due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 6.75% | |||||||
Amount outstanding | $ 300 | 300 | ||||||
3.000% Notes due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 3.00% | |||||||
Amount outstanding | $ 700 | 0 | ||||||
5.950% Notes, due 2037 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 5.95% | |||||||
Amount outstanding | $ 625 | 625 | ||||||
4.750% Iowa Finance Authority Loan, due 2042 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long- term debt, interest rate | 4.75% | |||||||
Amount outstanding | $ 250 | $ 250 |
Debt - Maturities of Long-term
Debt - Maturities of Long-term Debt (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 1,150 |
2025 | 600 |
2022 | 0 |
2023 | 0 |
2026 | $ 0 |
Debt - Public Debt (Details)
Debt - Public Debt (Details) - USD ($) | Sep. 02, 2021 | Sep. 01, 2021 | May 03, 2021 | Jan. 15, 2021 | May 21, 2020 | Apr. 06, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 24, 2020 |
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 600,000,000 | ||||||||||||||
Early termination premium | $ 35,000,000 | ||||||||||||||
Debt prepayment cost | $ 138,000,000 | $ 59,000,000 | $ 0 | ||||||||||||
Interest expense | $ 17,000,000 | ||||||||||||||
5.125% Notes, due 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 100,000,000 | $ 100,000,000 | |||||||||||||
Long- term debt, interest rate | 5.125% | 5.125% | 5.125% | ||||||||||||
Repurchase of debt | $ 111,000,000 | $ 111,000,000 | |||||||||||||
Early termination premium | 10,000,000 | 10,000,000 | |||||||||||||
Interest expense | $ 1,000,000 | $ 1,000,000 | |||||||||||||
6.875% Notes, due 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long- term debt, interest rate | 6.875% | 6.875% | 6.875% | 6.875% | |||||||||||
Early termination premium | $ 105,000,000 | ||||||||||||||
Interest expense | $ 14,000,000 | ||||||||||||||
Aggregate principal amount | $ 1,200,000,000 | ||||||||||||||
Deferred financing costs | 14,000,000 | ||||||||||||||
3.000% Notes due 2029 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 700,000,000 | ||||||||||||||
Long- term debt, interest rate | 3.00% | ||||||||||||||
5.870% Notes, due 2022(2) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 476,000,000 | $ 151,000,000 | |||||||||||||
Long- term debt, interest rate | 5.87% | 5.87% | |||||||||||||
Early termination premium | $ 23,000,000 | ||||||||||||||
Debt prepayment cost | 503,000,000 | ||||||||||||||
Debt prepayment, accrued interest | $ 5,000,000 | ||||||||||||||
Interest expense | $ 4,000,000 | ||||||||||||||
5.400% Notes, due 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 361,000,000 | $ 589,000,000 | $ 300,000,000 | ||||||||||||
Long- term debt, interest rate | 5.40% | 5.40% | 5.40% | 5.40% | |||||||||||
Early termination premium | $ 5,000,000 | ||||||||||||||
Debt prepayment cost | $ 315,000,000 | ||||||||||||||
Interest expense | $ 24,000,000 | ||||||||||||||
6.150% Notes, due 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Early redemption of debt | $ 1,000,000,000 | ||||||||||||||
Long- term debt, interest rate | 6.15% | ||||||||||||||
Debt prepayment cost | $ 1,020,000,000 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | Sep. 28, 2021USD ($)extension | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Line of credit facility, outstanding borrowings | $ 1,000,000,000 | |||
Number of extensions | extension | 2 | |||
Extension term | 1 year | |||
Increase available in aggregate principal | $ 500,000,000 | |||
Amount available to request issuance of letters of credit | $ 500,000,000 | |||
Fees paid to maintain credit facility | 0.23% | |||
Debt covenants, net debt to consolidated EBITDA ratio | 3.50 | |||
Aggregate outstanding principal amount | $ 0 | $ 0 | ||
Line of credit facility, borrowings | $ 0 | 0 | $ 0 | |
Revolving Credit Agreement | Quarter ending December 31, 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt covenants, net debt to consolidated EBITDA ratio | 4.75 | |||
Revolving Credit Agreement | Quarter ending March 31, 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt covenants, net debt to consolidated EBITDA ratio | 4.50 | |||
Revolving Credit Agreement | Quarter ending June 30, 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt covenants, net debt to consolidated EBITDA ratio | 4.50 | |||
Revolving Credit Agreement | Quarter ending September 30, 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt covenants, net debt to consolidated EBITDA ratio | 4.25 | |||
Revolving Credit Agreement | Quarter ending December 31, 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt covenants, net debt to consolidated EBITDA ratio | 3.75 | |||
Revolving Credit Agreement | Year ending December 31, 2021 | ||||
Debt Instrument [Line Items] | ||||
Maximum common stock dividends and share repurchases allowed | $ 450,000,000 | |||
Revolving Credit Agreement | Year ending December 31, 2022 | ||||
Debt Instrument [Line Items] | ||||
Maximum common stock dividends and share repurchases allowed | 500,000,000 | |||
Revolving Credit Agreement | After Amendment | ||||
Debt Instrument [Line Items] | ||||
Amount of principal indebtedness that would cause default | $ 100,000,000 | |||
Revolving Credit Agreement | Minimum | Base Rate and LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.40% | |||
Revolving Credit Agreement | Maximum | Base Rate and LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.40% | |||
Other Credit Agreements | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowings | 0 | 400,000,000 | ||
Maximum borrowing capacity | 640,000,000 | |||
Line of credit facility, repayment | $ 0 | $ 400,000,000 | ||
Weighted-average interest rate | 3.70% | |||
Weighted-average maturity days | 49 days |
Debt - Short-Term Debt (Details
Debt - Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 5 | $ 14 |
Other Financial Instruments (De
Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | |||
Restricted cash | $ 2 | $ 1 | $ 55 |
Carrying value | |||
Derivative [Line Items] | |||
Long-term debt, less amounts due within one year | 4,227 | 4,699 | |
Fair value | |||
Derivative [Line Items] | |||
Long-term debt, less amounts due within one year | $ 4,707 | $ 5,426 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest, net of amounts capitalized | $ 267 | $ 401 | $ 340 |
Income taxes, net of amounts refunded | 53 | (33) | 122 |
Capital expenditures | $ 49 | $ 50 | $ 133 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Millions | Dec. 01, 2019USD ($)segment | Aug. 15, 2019USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 01, 2021USD ($) | Jan. 31, 2020USD ($) | May 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Asset impairment charges | $ 15 | $ 5 | $ 442 | |||||||||
Restructuring and other charges | 90 | 182 | 582 | |||||||||
Restricted cash | $ 2 | 1 | 55 | |||||||||
Small Additive Manufacturing Facility | Engineered Structures | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration | $ 1 | |||||||||||
Proceeds from the sales of businesses | $ 13 | |||||||||||
Asset impairment charges | 10 | |||||||||||
Gain (loss) on disposition of business | 13 | |||||||||||
Forgings Business | Engineered Structures | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration | $ 64 | |||||||||||
Gain (loss) on disposition of business | 46 | |||||||||||
Restructuring and other charges | $ 5 | |||||||||||
Restricted cash | 53 | |||||||||||
Sales | $ 116 | |||||||||||
Number of employees | segment | 540 | |||||||||||
Disposed of by Sale | Small Manufacturing Facility In France | Fastening Systems | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration | $ 10 | |||||||||||
Proceeds from the sales of businesses | $ 8 | |||||||||||
Asset impairment charges | $ 4 | |||||||||||
Disposed of by Sale | Small Manufacturing Facility In The United Kingdom | Engineered Structures | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Consideration | $ 12 | |||||||||||
Asset impairment charges | $ 7 | $ 12 |
Contingencies and Commitments -
Contingencies and Commitments - Contingencies (Details) $ in Thousands, € in Millions | Dec. 23, 2020defendant | Jun. 06, 2019USD ($)survivor | Dec. 31, 2021USD ($)location | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Jun. 26, 2020USD ($)entity | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017claim |
Loss Contingencies [Line Items] | |||||||||
Number of cleanup locations (more than) | location | 30 | ||||||||
Remediation reserve balance | $ 15,000 | $ 10,000 | |||||||
Remediation reserve balance, classified as a current liability | 6,000 | 5,000 | |||||||
Payments related to remediation expenses applied against the reserve | $ 2,000 | 2,000 | |||||||
Total combined assessments | 0 | $ 64,000 | |||||||
Number of defendants | defendant | 23 | ||||||||
Number of plaintiffs | survivor | 247 | ||||||||
Monetary damages sought | $ 75 | ||||||||
Number of claims | claim | 2 | ||||||||
Lehman Brothers International (Europe) (“LBIE”) Claims | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of entities | entity | 2 | ||||||||
Estimate of claim | $ 64,000 | ||||||||
Spain | |||||||||
Loss Contingencies [Line Items] | |||||||||
Income taxes receivable | $ 53,000 | € 45 | |||||||
Tax agreement, indemnification of ultimate liability, percent | 33.66% | 33.66% | |||||||
Alcoa Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Tax agreement, indemnification of ultimate liability, percent | 49.00% | 49.00% | |||||||
Arconic Corporation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Tax agreement, indemnification of ultimate liability, percent | 33.66% | 33.66% | |||||||
Euro | |||||||||
Loss Contingencies [Line Items] | |||||||||
Total combined assessments | € | € 54 | ||||||||
Recurring Costs of Managing Hazardous Substances and Environmental Programs | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Percentage of cost of goods sold | 1.00% |
Contingencies and Commitments_2
Contingencies and Commitments - Commitments (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Purchase obligations due in 2022 | $ 229 | |
Purchase obligations due in 2023 | 95 | |
Purchase obligations due in 2024 | 80 | |
Purchase obligations due in 2025 | 2 | |
Purchase obligations due in 2026 | 0 | |
Purchase obligations due thereafter | 0 | |
Guarantees of third party related to project financing | 15 | |
Combined fair value of guarantees | 6 | $ 12 |
Insurance annual coverage limit | 80 | |
Total amount committed under outstanding surety bonds | 47 | |
Amount of outstanding surety bonds relating to these liabilities | 25 | |
Alcoa Corporation Workers Compensation Claims | ||
Loss Contingencies [Line Items] | ||
Letters of credit, total amount committed | 53 | |
Arconic Corporation Environmental Obligations | ||
Loss Contingencies [Line Items] | ||
Letters of credit, total amount committed | 17 | |
Arconic Corporation Environmental Obligations | Letters Of Credit Pending Cancellation | ||
Loss Contingencies [Line Items] | ||
Letters of credit, total amount committed | 1 | |
Bank Loan Obligations | ||
Loss Contingencies [Line Items] | ||
Letters of credit | 119 | |
Separation Agreement | Other Noncurrent Liabilities and Deferred Credits | ||
Loss Contingencies [Line Items] | ||
Guarantees of third party related to project financing | $ 1,406 | $ 1,398 |
Uncategorized Items - hwm-20211
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |