Earnings Per Share and Common Stock

6 Months Ended

Jun. 30, 2023

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 in table below):


	Second quarter ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022


Net income attributable to common shareholders	$	193	$	147	$	341	$	278
Less: preferred stock dividends declared	—		—		1		1
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	193	$	147	$	340	$	277



Average shares outstanding - basic	413		417		413		418
Effect of dilutive securities:
Stock and performance awards	4		5		4		5


Average shares outstanding - diluted	417		422		417		423

Common stock outstanding as of June 30, 2023 and 2022 was approximately 412 million and 416 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. After giving effect to the share repurchases made through June 30, 2023, approximately $822 Board authorization remains available.

The following table provides details for share repurchases made for the periods presented:


	Number of shares	Average price per share(1)		Total
Q1 2023 open market repurchase	576,629	$	43.36	$	25

Q2 2023 open market repurchase	2,246,294	$	44.52	$	100

2023 Share repurchases as of June 30, 2023	2,822,923	$	44.28	$	125

Q1 2022 open market repurchase	5,147,307	$	34.00	$	175

Q2 2022 open market repurchase	1,770,271	$	33.89	$	60

2022 Share repurchases as of June 30, 2022	6,917,578	$	33.97	$	235

(1)Excludes commissions cost.

Under the Company’s share repurchase program (the “Share Repurchase Program”), 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 Program. Under its Share Repurchase Program, 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. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time, and the Share Repurchase Program may be suspended, modified or terminated at any time without prior notice.

The approximately 5 million decrease in average shares outstanding (basic) for the second quarter of 2023 compared to the second quarter of 2022 was primarily due to the approximately 7 million shares repurchased between July 1, 2022 and June 30, 2023. As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases was not fully realized in EPS in the period of repurchase since share repurchases may occur at varying points during a period.

There were no shares relating to outstanding stock options excluded from the calculation of average shares outstanding – diluted for the second quarter and six months ended June 30, 2023 and 2022.