EARNINGS PER SHARE

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock.

Basic and diluted earnings per common share are calculated as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2018		2017		2018		2017
Earnings per share — basic:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Earnings per common share — basic	$	0.66	$	0.58	$	0.97	$	1.24

Earnings per share — diluted:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Dilutive effect of stock options and other dilutive securities	2		4		2		4
Weighted average shares outstanding — diluted	241		256		242		256
Earnings per common share — diluted	$	0.65	$	0.58	$	0.96	$	1.23

Weighted average shares outstanding - diluted for the three and six months ended June 30, 2018 exclude approximately 2 million and 1 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and six months ended June 30, 2017.