Earnings Per Share

9 Months Ended

Sep. 30, 2022

F. Earnings Per Share – Basic (loss) 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):

	Third quarter ended September 30,					Nine months ended September 30,
	2022			2021		2022		2021
Net (loss) income attributable to Alcoa Corporation	$	(746	)	$	337	$	272	$	821
Average shares outstanding – basic		179			187		182		187
Effect of dilutive securities:
Stock units		—			4		4		3
Average shares outstanding – diluted		179			191		186		190

In the third quarter of 2022, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the third quarter of 2022, three million common share equivalents related to three million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the period. Options to purchase thirty thousand shares of common stock outstanding at September 30, 2022 would have also been excluded had Alcoa generated net income because they had a weighted average exercise price of $53.30 per share which was greater than the average market price of Alcoa Corporation’s common stock.

Options to purchase less than five hundred thousand shares of common stock outstanding at September 30, 2021 were excluded because they had a weighted average exercise price of $53.30 per share which was greater than the average market price of Alcoa Corporation’s common stock.