Earnings Per Share

9 Months Ended

Sep. 30, 2024

NOTE 6. 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						Nine Months Ended
	September 30,						September 30,
(In millions, except per share amounts)	2024			2023			2024			2023
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(34	)	$	(89	)	$	(6	)	$	(398	)
Weighted average shares outstanding		287			285			286			285
Earnings (loss) per common share — basic	$	(0.12	)	$	(0.31	)	$	(0.02	)	$	(1.40	)

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(34	)	$	(89	)	$	(6	)	$	(398	)
Weighted average shares outstanding		287			285			286			285
Dilutive effect of stock options and other dilutive securities		—			—			—			—
Weighted average shares outstanding — diluted		287			285			286			285
Earnings (loss) per common share — diluted	$	(0.12	)	$	(0.31	)	$	(0.02	)	$	(1.40	)

Weighted average shares outstanding — diluted for the three and nine months ended September 30, 2024 excludes the dilutive effect of approximately 1 million and 2 million equivalent shares, respectively, and for both the three and nine months ended September 30, 2023 excludes the dilutive effect of approximately 2 million equivalent shares, related primarily to options with exercise prices less than the average market price of our common shares (i.e., "in-the-money" options) and unvested restricted stock units, as their inclusion would have been anti-dilutive due to the Goodyear net loss. Additionally, weighted average shares outstanding — diluted for the three and nine months ended September 30, 2024 excludes approximately 4 million equivalent shares and 1 million equivalent shares, respectively, and, for both the three and nine months ended September 30, 2023, excludes approximately 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options).