Earnings Per Share

9 Months Ended

Sep. 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				Nine Months Ended
	September 30,				September 30,
(In millions, except per share amounts)	2016		2015		2016		2015
Earnings per share — basic:
Goodyear net income available to common shareholders	$	317	$	271	$	703	$	687
Weighted average shares outstanding	262		269		264		270
Earnings per common share — basic	$	1.21	$	1.01	$	2.66	$	2.55

Earnings per share — diluted:
Goodyear net income available to common shareholders	$	317	$	271	$	703	$	687
Weighted average shares outstanding	262		269		264		270
Dilutive effect of stock options and other dilutive securities	4		5		4		4
Weighted average shares outstanding — diluted	266		274		268		274
Earnings per common share — diluted	$	1.19	$	0.99	$	2.62	$	2.51

Weighted average shares outstanding - diluted for the nine months ended September 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). There were no equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three months ended September 30, 2016.