Earnings Per Share

12 Months Ended

Dec. 31, 2017

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:



(In millions, except per share amounts)	2017		2016		2015
Earnings per share — basic:
Goodyear net income	$	346	$	1,264	$	307
Weighted average shares outstanding	249		263		269
Earnings per common share — basic	$	1.39	$	4.81	$	1.14

Earnings per share — diluted:
Goodyear net income	$	346	$	1,264	$	307
Weighted average shares outstanding	249		263		269
Dilutive effect of stock options and other dilutive securities	4		3		4
Weighted average shares outstanding — diluted	253		266		273
Earnings per common share — diluted	$	1.37	$	4.74	$	1.12

Weighted average shares outstanding — diluted for 2017 and 2016 excludes approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common stock (i.e., “underwater” options). There were no shares related to options with exercise prices greater than the average market price of our common stock for 2015.