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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
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 31,202020192018
United States$84 $128 $166 
Foreign87 82 262 
 $171 $210 $428 
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 31,202020192018
Current:
Federal(1)
$(2)$— $— 
Foreign2 86 68 
State and local(2)— — 
 (2)86 68 
Deferred:
Federal(67)33 100 
Foreign11 (41)(53)
State and local18 6 4 
 (38)(2)51 
Total$(40)$84 $119 
(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 2020 was a benefit on income and for 2019 and 2018 was a provision on income):
For the year ended December 31,202020192018
U.S. federal statutory rate21.0 %21.0 %21.0 %
Foreign tax rate differential(1.4)10.6 3.2 
U.S. and residual tax on foreign earnings5.6 15.3 5.5 
U.S. State and local taxes2.2 0.8 (0.4)
Federal (cost) benefit of state tax(2.0)1.2 0.4 
Permanent differences related to asset disposals and items included in restructuring and other charges(1)
6.8 (1.3)(34.3)
Non-deductible officer compensation3.5 4.9 0.3 
Statutory tax rate and law changes(2)
(15.9)(0.6)13.2 
Tax holidays(0.4)(8.2)(3.0)
Changes in valuation allowances(3)
74.8 (52.2)(1.3)
Changes in uncertain tax positions(4)
(116.9)0.3 26.2 
Prior year tax adjustments(5)
(1.7)44.3 (4.2)
Other1.0 3.9 1.2 
Effective tax rate(23.4)%40.0 %27.8 %
(1)In 2018, a $74 benefit was recorded related to the reversal of a foreign recapture obligation.
(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. In 2018, the Company finalized its accounting for the Tax Cuts and Jobs Act of 2017 ("the 2017 Act”) and recorded an additional $59 charge.
(3)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.
(4)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. In 2018, the tax charge to establish the reserves related to the Spanish tax matter was partially offset by a $38 benefit related to a foreign reserve that was effectively settled.
(5)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:
 20202019
December 31,Deferred
tax
assets		Deferred
tax
liabilities		Deferred
tax
assets		Deferred
tax
liabilities
Depreciation$21 $506 $10 $480 
Employee benefits364 — 368 6 
Loss provisions24 1 36 — 
Deferred income/expense41 1,033 48 939 
Interest3 — 56 — 
Tax loss carryforwards3,267 — 2,819 — 
Tax credit carryforwards378 — 379 — 
Other7 13 23 — 
$4,105 $1,553 $3,739 $1,425 
Valuation allowance(2,307)— (2,121)— 
 $1,798 $1,553 $1,618 $1,425 
Schedule of Expiration Periods of Deferred Tax Assets
The following table details the expiration periods of the deferred tax assets presented above:
December 31, 2020Expires
within
10 years		Expires
within
11-20 years
No
Expiration(1)
Other(2)
Total
Tax loss carryforwards$378 $262 $2,627 $— $3,267 
Tax credit carryforwards299 66 13 — 378 
Other(3)
— — 389 71 460 
Valuation allowance(644)(161)(1,479)(23)(2,307)
 $33 $167 $1,550 $48 $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 31,202020192018
Balance at beginning of year$2,121 $2,357 $2,459 
Increase to allowance136 19 119 
Release of allowance(50)(211)(144)
Acquisitions and divestitures— (2)— 
Tax apportionment, tax rate and tax law changes(23)(13)(14)
Foreign currency translation123 (29)(63)
Balance at end of year$2,307 $2,121 $2,357 
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 31,202020192018
Balance at beginning of year$176 $148 $50 
Additions for tax positions of the current year— 34 — 
Additions for tax positions of prior years— — 143 
Reductions for tax positions of prior years(182)(1)(38)
Settlements with tax authorities(1)— — 
Expiration of the statute of limitations— (2)(6)
Foreign currency translation9 (3)(1)
Balance at end of year$2 $176 $148