Table of Contents Arconic and subsidiaries Statement of Consolidated Operations (in millions, except per-share amounts) For the year ended December 31, 2019 2018 2017 Sales ( B ) $ 14,192 $ 14,014 $ 12,960 Cost of goods sold (exclusive of expenses below) 11,227 11,397 10,221 Selling, general administrative, and other expenses 704 604 715 Research and development expenses 70 103 109 Provision for depreciation and amortization 536 576 551 Impairment of goodwill ( A  and  N ) — — 719 Restructuring and other charges ( C ) 620 9 165 Operating income 1,035 1,325 480 Interest expense ( D ) 338 378 496 Other expense (income), net ( E ) 122 79 (486) Income before income taxes 575 868 470 Provision for income taxes ( G ) 105 226 544 Net income (loss) $ 470 $ 642 $ (74 ) Amounts Attributable to Arconic Common Shareholders ( I ): Net income (loss) $ 477 $ 651 $ (127) Earnings (loss) per share - basic $ 1.05 $ 1.33 $ (0.28 ) Earnings (loss) per share - diluted $ 1.03 $ 1.30 $ (0.28) Average Shares Outstanding ( I ): Average shares outstanding - basic 446 483 451 Average shares outstanding - diluted 463 503 451 The accompanying notes are an integral part of the consolidated financial statements. 57