Earnings Per Share

9 Months Ended

Sep. 30, 2019

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				Nine Months Ended
	September 30,				September 30,
(In millions, except per share amounts)	2019		2018		2019		2018
Earnings per share — basic:
Goodyear net income	$	88	$	351	$	81	$	583
Weighted average shares outstanding	233		236		233		238
Earnings per common share — basic	$	0.38	$	1.49	$	0.35	$	2.45

Earnings per share — diluted:
Goodyear net income	$	88	$	351	$	81	$	583
Weighted average shares outstanding	233		236		233		238
Dilutive effect of stock options and other dilutive securities	1		2		1		3
Weighted average shares outstanding — diluted	234		238		234		241
Earnings per common share — diluted	$	0.38	$	1.48	$	0.35	$	2.42

Weighted average shares outstanding - diluted excludes approximately 3 million and 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options) for the three and nine months ended September 30, 2019, respectively. There were approximately 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and nine months ended September 30, 2018.