Earnings Per Share

6 Months Ended

Jun. 30, 2022

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):


	Second quarter ended				Six months ended
	June 30,				June 30,
	2022		2021		2022		2021


Net income attributable to common shareholders	$	147	$	74	$	278	$	154
Less: preferred stock dividends declared	—		—		1		1
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	147	$	74	$	277	$	153



Average shares outstanding - basic	417		432		418		433
Effect of dilutive securities:
Stock options	—		1		—		1
Stock and performance awards	5		4		5		4

Average shares outstanding - diluted	422		437		423		438

Common stock outstanding at June 30, 2022 and 2021 was approximately 416 million and 429 million, respectively.

On August 18, 2021, the Company announced that its Board of Directors authorized a share repurchase program of up to $1,500 of the Company's outstanding common stock. In the quarter ended June 30, 2022, the Company repurchased approximately 2 million shares of its common stock at an average price of $33.89 per share (excluding commissions cost) for $60 in cash. For the six months ended June 30, 2022, the Company repurchased approximately 7 million shares for $235 in cash. All of the shares repurchased have been retired. After giving effect to the share repurchases made through June 30, 2022, approximately $1,112 Board authorization remains available. 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 its Five-Year Revolving Credit Agreement (the “Credit Agreement”) (see Note N). 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.

The approximately 15 million decrease in average shares outstanding (basic) for the second quarter of 2022 compared to the second quarter of 2021 was primarily due to the approximately 20 million shares repurchased between July 1, 2021 and June 30, 2022. 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 in the second quarter and six months ended June 30, 2022 as share repurchases occurred at varying points during the quarter.

In July 2022, the Company repurchased approximately 1 million shares of its common stock under the Share Repurchase Programs at an average price of $32.22 per share (excluding commissions cost) for approximately $30 in cash. After the share repurchases made through July 31, 2022, approximately $1,082 remains authorized for common stock share repurchases.

There were no stock options shares excluded from the calculation of average shares outstanding – diluted for the second quarter and six months ended June 30, 2022 and 2021. Additionally, there were no anti-dilutive stock options shares as of June 30, 2022 and 2021.