Earnings Per Share

3 Months Ended

Mar. 31, 2016

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
	March 31,
(In millions, except per share amounts)	2016		2015
Earnings per share — basic:
Goodyear net income available to common shareholders	$	184	$	224
Weighted average shares outstanding	267		270
Earnings per common share — basic	$	0.69	$	0.83

Earnings per share — diluted:
Goodyear net income available to common shareholders	$	184	$	224
Weighted average shares outstanding	267		270
Dilutive effect of stock options and other dilutive securities	4		4
Weighted average shares outstanding — diluted	271		274
Earnings per common share — diluted	$	0.68	$	0.82

Weighted average shares outstanding - diluted for the three months ended March 31, 2015 exclude 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).