Earnings Per Share

3 Months Ended

Mar. 31, 2021

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):


	First quarter ended
	March 31,
	2021		2020

Net income from continuing operations attributable to common shareholders	$	80	$	153
Income from discontinued operations	—		62
Net income attributable to common shareholders	80		215
Less: preferred stock dividends declared	1		1
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	79	$	214



Average shares outstanding - basic	434		435
Effect of dilutive securities:
Stock options	1		1
Stock and performance awards	4		4

Average shares outstanding - diluted	439		440

Common stock outstanding at March 31, 2021 and 2020 was 434 and 436, respectively.

The following shares were excluded from the calculation of average shares outstanding – diluted as their effect was anti-dilutive (shares in millions):


	First quarter ended
	March 31,
	2021	2020

Stock options(1)	1	4

(1)The weighted average exercise price per share of options excluded from diluted EPS was $31.86 and $27.65 as of March 31, 2021 and 2020, respectively.