Earnings Per Share

12 Months Ended

Dec. 31, 2020

Basic earnings per share ("EPS") amounts are computed by dividing earnings (loss), 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):


For the year ended December 31,	2020		2019		2018
Net income from continuing operations attributable to common shareholders	$	211	126		309
Less: preferred stock dividends declared	2		2		2
Net income from continuing operations attributable to common shareholders:	209		124		307
Income from discontinued operations	50		344		333
Net income available to Howmet Aerospace common shareholders - basic	259		468		640
Add: interest expense related to convertible notes	—		9		11
Net income available to Howmet common shareholders - diluted	$	259	$	477	$	651

Average shares outstanding - basic	435		446		483
Effect of dilutive securities:
Stock options	—		1		1
Stock and performance awards	4		5		5
Convertible notes(1)	—		11		14
Average shares outstanding - diluted	439		463		503

(1)The convertible notes matured on October 15, 2019 (see Note R). No shares of the Company’s common stock were issued in connection with the maturity or the final conversion of the convertible notes. As of October 15, 2019, the calculation of average diluted shares outstanding ceased to include the approximately 15 million shares of common stock and the corresponding interest expense previously attributable to the convertible notes.

Common stock outstanding was 433 million shares at both at December 31, 2020 and 2019.

The following shares were excluded from the calculation of average shares outstanding – diluted as their effect was anti-dilutive (shares in millions).


For the year ended December 31,	2020	2019	2018
Convertible notes	—	—	—
Stock options	1	1	9
Stock awards	—	—	—

(1)