Earnings Per Share

12 Months Ended

Dec. 31, 2022

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):


For the year ended December 31,	2022		2021		2020
Net income from continuing operations	$	469	$	258	$	211
Less: preferred stock dividends declared	2		2		2
Net income from continuing operations attributable to common shareholders	467		256		209
Income from discontinued operations	—		—		50


Net income attributable to common shareholders - basic and diluted	$	467	$	256	$	259

Average shares outstanding - basic	416		430		435
Effect of dilutive securities:
Stock and performance awards	5		5		4


Average shares outstanding - diluted	421		435		439

Common stock outstanding at December 31, 2022 and 2021 was approximately 412 million and 422 million, respectively.

The 14 million decrease in average shares outstanding (basic) for the year ended December 31, 2022 compared to the year ended December 31, 2021 was primarily due to the 11 million shares repurchased during 2022. As average shares outstanding are used in the calculation of both basic and diluted EPS, the full impact of share repurchases is not realized in EPS in the year of repurchase.

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,	2022	2021	2020

Stock options	—	—	1