Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

E. Earnings Per Share – Basic earnings per share (EPS) amounts are computed by dividing earnings 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 Alcoa Corporation common shareholders was as follows (shares in millions):

	First quarter ended March 31,
	2019			2018
Net (loss) income attributable to Alcoa Corporation	$	(199	)	$	195
Average shares outstanding – basic		185			186
Effect of dilutive securities:
Stock options		—			1
Stock units		—			1
Average shares outstanding – diluted		185			188

In the first quarter of 2019, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive since Alcoa Corporation generated a net loss. As a result, five million stock units and stock options combined were not included in the computation of diluted EPS. Had Alcoa Corporation generated net income in the first quarter of 2019, one million common share equivalents related to stock units and stock options combined would have been included in diluted average shares outstanding.