Earnings Per Share

3 Months Ended

Mar. 31, 2021

F. 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,
	2021		2020
Net income attributable to Alcoa Corporation	$	175	$	80
Average shares outstanding – basic		186		186
Effect of dilutive securities:
Stock options		—		—
Stock units		3		1
Average shares outstanding – diluted		189		187

Options to purchase one million shares of common stock outstanding at March 31, 2021 were excluded because they had a weighted average exercise price of $35.67 per share which was greater than the average market price of Alcoa Corporation’s common stock.

Options to purchase two million shares of common stock outstanding at March 31, 2020 were excluded because they had a weighted average exercise price of $26.55 per share which was greater than the average market price of Alcoa Corporation’s common stock.