Earnings Per Share

6 Months Ended

Jun. 30, 2021

Basic earnings per share (“EPS”) amounts are computed by dividing earnings, 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):


	Second quarter ended				Six months ended
	June 30,				June 30,
	2021		2020		2021		2020
Net income (loss) from continuing operations attributable to common shareholders	$	74	$	(84)	$	154	$	69
(Loss) income from discontinued operations	—		(12)		—		50
Net income (loss) attributable to common shareholders	74		(96)		154		119
Less: preferred stock dividends declared	1		—		1		1
Net income (loss) available to Howmet Aerospace common shareholders - basic and diluted	$	73	$	(96)	$	153	$	118



Average shares outstanding - basic	432		436		433		436
Effect of dilutive securities:
Stock options	1		—		1		—
Stock and performance awards	4		—		4		4

Average shares outstanding - diluted	437		436		438		440

Common stock outstanding at June 30, 2021 and 2020 was approximately 429 million and 436 million, respectively.

On May 20, 2019, the Company announced that its Board of Directors authorized the repurchase of $500 of the Company's outstanding common stock (the “Share Repurchase Program”) by means of trading plans established from time to time in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, block trades, private transactions, open market repurchases and/or accelerated share repurchase agreements or other derivative transactions. There was no stated expiration for the Share Repurchase Program under which the Company may repurchase shares from time to time and pursuant to such terms, as and if it deems appropriate. The Share Repurchase Program may be suspended, modified or terminated at any time without prior notice. The decrease in common stock outstanding at June 30, 2021 was primarily due to the impact of share repurchases of approximately 6 million shares in the quarter ended June 30, 2021, which were purchased at an average price of $34.02 per share for approximately $200 in cash. All of the shares repurchased have been retired. After giving effect to the share repurchases made through June 30, 2021, approximately $77 remains available under the prior authorizations by the Board of Directors for the Share Repurchase Program. As average shares outstanding are used in the calculation for both basic and diluted EPS, the full impact of share repurchases was not realized in EPS in the second quarter and six months ended June 30, 2021 as share repurchases occurred at varying points during the second quarter of 2021.

On July 19, 2021, the Company’s Board of Directors declared a dividend of $0.02 per share on the outstanding common stock of the Company, to be paid on August 25, 2021, to the holders of record of the common stock at the close of business on August 6, 2021.

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


	Second quarter ended		Six months ended
	June 30,		June 30,
	2021	2020	2021	2020

Stock options(1)	—	3	—	3
Stock and performance awards	—	3	—	—

(1)The weighted average exercise price per share of options excluded from diluted EPS was $26.04 as of June 30, 2020.