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Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2023
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 Adjusted EBITDA. Prior to the first quarter of 2022, the Company used Segment operating profit as its primary measure of performance. However, the Company’s Chief Executive Officer believes that Segment Adjusted EBITDA is a better representation of its business because it provides additional information with respect to the Company’s operating performance and the Company’s ability to meet its financial obligations. Howmet’s definition of Segment Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation and amortization. Special items, including Restructuring and other charges, are excluded from net margin and Segment Adjusted EBITDA. Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Differences between the total segment and consolidated totals are in Corporate.
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 turbine applications. 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. Fastening Systems’ products are also critical components of commercial transportation vehicles, construction and industrial equipment, and renewable energy sectors.
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 market.
The operating results and assets of the Company's reportable segments were as follows:
Year endedEngine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
2023
Sales:
Third-party sales$3,266 $1,349 $878 $1,147 $6,640 
Inter-segment sales13 — 3 — 16 
Total sales$3,279 $1,349 $881 $1,147 $6,656 
Profit and loss:
Segment Adjusted EBITDA$887 $278 $113 $309 $1,587 
Restructuring and other (credits) charges(2)1 21 — 20 
Provision for depreciation and amortization130 46 47 39 262 
Other:
Capital expenditures$112 $31 $26 $36 $205 
Total assets4,926 2,749 1,415 724 9,814 
2022
Sales:
Third-party sales$2,698 $1,117 $790 $1,058 $5,663 
Inter-segment sales4 — 6 — 10 
Total sales$2,702 $1,117 $796 $1,058 $5,673 
Profit and loss:
Segment Adjusted EBITDA$729 $234 $111 $278 $1,352 
Restructuring and other charges29 8 7 2 46 
Provision for depreciation and amortization125 45 48 40 258 
Other:
Capital expenditures$94 $39 $17 $28 $178 
Total assets4,784 2,661 1,273 701 9,419 
2021
Sales:
Third-party sales$2,282 $1,044 $725 $921 $4,972 
Inter-segment sales4 — 6 — 10 
Total sales$2,286 $1,044 $731 $921 $4,982 
Profit and loss:
Segment Adjusted EBITDA$564 $239 $103 $294 $1,200 
Restructuring and other charges74 — 16 — 90 
Provision for depreciation and amortization124 49 49 39 261 
Other:
Capital expenditures$74 $42 $21 $45 $182 
Total assets4,663 2,635 1,280 684 9,262 
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, including the impact of changes in accrued capital expenditures during the period.
For the year ended December 31,202320222021
Total segment capital expenditures$205 $178 $182 
Corporate14 15 17 
Capital expenditures$219 $193 $199 
The following tables reconcile certain segment information to consolidated totals. Differences between the total segment and consolidated totals are in Corporate.
For the year ended December 31,202320222021
Sales:
Total segment sales$6,656 $5,673 $4,982 
Elimination of inter-segment sales(16)(10)(10)
Consolidated sales$6,640 $5,663 $4,972 

For the year ended December 31,202320222021
Total Segment Adjusted EBITDA$1,587 $1,352 $1,200 
Segment provision for depreciation and amortization(262)(258)(261)
Unallocated amounts:
Restructuring and other charges(23)(56)(90)
Corporate expense(99)(119)(101)
Operating income$1,203 $919 $748 
Loss on debt redemption(2)(2)(146)
Interest expense, net(218)(229)(259)
Other expense, net (F)
(8)(82)(19)
Income before income taxes$975 $606 $324 

December 31,20232022
Assets:
Total segment assets$9,814 $9,419 
Unallocated amounts:
Cash and cash equivalents610 791 
Deferred income taxes46 54 
Corporate fixed assets, net83 91 
Fair value of derivative contracts— 6 
Accounts receivable securitization(250)(250)
Other125 144 
Consolidated assets$10,428 $10,255 
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 L for further details.
Geographic information for sales was as follows (based upon the destination of the sale):
For the year ended December 31,202320222021
Sales:
United States$3,273 $2,928 $2,542 
France578 394 330 
Japan378 319 319 
Germany363 292 257 
United Kingdom283 228 213 
Mexico263 235 225 
Italy220 180 181 
Canada145 138 127 
Poland130 96 77 
China98 111 71 
Other909 742 630 
$6,640 $5,663 $4,972 
Geographic information for long-lived tangible assets was as follows (based upon the physical location of the assets):
December 31,20232022
Long-lived assets:
United States$1,760 $1,793 
Hungary200 193 
France121 114 
United Kingdom120 107 
Mexico71 58 
Germany58 58 
China46 46 
Other80 74 
 $2,456 $2,443 
The following table disaggregates segment revenue by major market served. Differences between the total segment and consolidated totals are in Corporate.
Engine ProductsFastening SystemsEngineered StructuresForged WheelsTotal
Segment
Year ended December 31, 2023
Aerospace - Commercial$1,798 $790 $641 $— $3,229 
Aerospace - Defense 670 173 172 — 1,015 
Commercial Transportation— 255 — 1,147 1,402 
Industrial and Other798 131 65 — 994 
Total end-market revenue$3,266 $1,349 $878 $1,147 $6,640 
Year ended December 31, 2022
Aerospace - Commercial$1,495 $616 $495 $— $2,606 
Aerospace - Defense 526 158 239 — 923 
Commercial Transportation— 225 — 1,058 1,283 
Industrial and Other677 118 56 — 851 
Total end-market revenue$2,698 $1,117 $790 $1,058 $5,663 
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 Other654 141 68 — 863 
Total end-market revenue$2,282 $1,044 $725 $921 $4,972 
The Company derived 64%, 62%, and 60% of its revenue from the aerospace (commercial and defense) markets for the years ended December 31, 2023, 2022, and 2021, respectively.
General Electric Company and RTX Corporation represented approximately 12% and 9%, respectively, of the Company’s third-party sales for the year ended December 31, 2023, primarily from the Engine Products segment.