Earnings Per Share

9 Months Ended

Sep. 30, 2021

Basic earnings per share (EPS) amounts are computed by dividing Net income (loss) attributable to Arconic Corporation by the weighted-average number of common shares outstanding. Diluted EPS amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. Specific to Arconic, such share equivalents consist of outstanding employee stock awards (excluding out-of-the-money stock options – see below). For periods in which the Company generates net income, the diluted weighted-average number of shares include common share equivalents associated with outstanding employee stock awards. For periods in which the Company generates a net loss, common share equivalents are excluded from the diluted weighted-average number of shares as their effect is anti-dilutive.

The share information used to compute basic and diluted EPS attributable to Arconic Corporation common stockholders was as follows (shares in millions):


	Third quarter ended September 30,		Nine months ended September 30,
	2021	2020	2021	2020
Weighted-average shares outstanding – basic	108.7	109.1	109.5	109.0
Dilutive share equivalents:
Stock units	3.3	3.7	—	—
Stock options	0.1	—	—	—
Weighted-average shares outstanding – diluted	112.1	112.8	109.5	109.0

Anti-dilutive share equivalents:
Stock units	—	—	3.3	2.1
Stock options*:
In-the-money	—	—	0.1	—
Out-of-the-money	—	—	—	—
	—	—	3.4	2.1

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* Stock options are in-the-money when the respective exercise price of each such option is less than the average market price of the Company’s common stock during the applicable period presented. Conversely, stock options are out-of-the-money when the respective exercise price of each such option is more than the average market price of the Company’s common stock during the applicable period presented. Out-of-the-money stock options never result in common share equivalents for purposes of diluted EPS regardless of whether a company generates net income or a net loss. As of September 30, 2021 and September 30, 2020, there were 0.2 million and 0.9 million, respectively, out-of-the-money stock options outstanding with a weighted-average exercise price of $32.73 and $27.97, respectively.