XML 34 R13.htm IDEA: XBRL DOCUMENT v2.3.0.15
Earnings Loss Per Share
9 Months Ended
Sep. 30, 2011
Earnings Per Share [Abstract] 
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) 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)
2011
 
2010
 
2011
 
2010
Earnings per share — basic:
 
 
 
 
 
 
 
Goodyear net income (loss)
$
168

 
$
(20
)
 
$
318

 
$
(39
)
Less: Preferred stock dividends
7

 
—

 
15

 
—

Goodyear net income (loss) available to common shareholders
$
161

 
$
(20
)
 
$
303

 
$
(39
)
Weighted average shares outstanding
244

 
242

 
244

 
242

Earnings per common share — basic
$
0.66

 
$
(0.08
)
 
$
1.25

 
$
(0.16
)
 
 
 
 
 
 
 
 
Earnings per share — diluted:
 
 
 
 
 
 
 
Goodyear net income (loss)
$
168

 
$
(20
)
 
$
318

 
$
(39
)
Weighted average shares outstanding
244

 
242

 
244

 
242

Dilutive effect of mandatory convertible preferred stock
34

 
—

 
21

 
—

Dilutive effect of stock options and other dilutive securities
3

 
—

 
3

 
—

Weighted average shares outstanding — diluted
281

 
242

 
268

 
242

Earnings per common share — diluted
$
0.60

 
$
(0.08
)
 
$
1.19

 
$
(0.16
)


Weighted average shares outstanding — diluted excludes approximately 9 million and 7 million equivalent shares for the three and nine months ended September 30, 2011, respectively, and excludes approximately 12 million equivalent shares for the three and nine months ended September 30, 2010 related to options with exercise prices greater than the average market price of our common shares (i.e., “underwater” options).
Weighted average shares outstanding — diluted excludes approximately 4 million equivalent shares for the three and nine months ended September 30, 2010 related to options with exercise prices less than the average market price of our common shares (i.e., “in-the-money” options), as their inclusion would have been anti-dilutive due to the Goodyear net loss.