Earnings Per Share

12 Months Ended

Dec. 31, 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 the table below):


For the year ended December 31,	2023		2022		2021
Net income attributable to common shareholders	$	765	$	469	$	258
Less: preferred stock dividends declared	2		2		2
Net income available to Howmet Aerospace common shareholders - basic and diluted	$	763	$	467	$	256





Average shares outstanding - basic	412		416		430
Effect of dilutive securities:
Stock and performance awards	4		5		5


Average shares outstanding - diluted	416		421		435

Common stock outstanding as of December 31, 2023, 2022, and 2021 was approximately 410 million, 412 million, and 422 million, respectively.

The approximately 4 million decrease in average shares outstanding (basic) for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily due to the approximately 5 million shares repurchased during 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 during 2023, 2022, and 2021.