Earnings Per Share

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2016		2015		2016		2015
Earnings per share — basic:
Goodyear net income available to common shareholders	$	202	$	192	$	386	$	416
Weighted average shares outstanding	264		270		266		270
Earnings per common share — basic	$	0.76	$	0.71	$	1.45	$	1.54

Earnings per share — diluted:
Goodyear net income available to common shareholders	$	202	$	192	$	386	$	416
Weighted average shares outstanding	264		270		266		270
Dilutive effect of stock options and other dilutive securities	4		4		3		4
Weighted average shares outstanding — diluted	268		274		269		274
Earnings per common share — diluted	$	0.75	$	0.70	$	1.43	$	1.52

Weighted average shares outstanding - diluted for the three and six months ended June 30, 2016 exclude approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e. "underwater" options).