Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2019

Basic earnings (loss) per share are computed based on the weighted average number of common shares outstanding. Diluted earnings (loss) 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 (loss) per common share are calculated as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2019		2018		2019			2018
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	54	$	157	$	(7	)	$	232
Weighted average shares outstanding	233		239		232			240
Earnings (loss) per common share — basic	$	0.23	$	0.66	$	(0.03	)	$	0.97

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	54	$	157	$	(7	)	$	232
Weighted average shares outstanding	233		239		232			240
Dilutive effect of stock options and other dilutive securities	1		2		—			2
Weighted average shares outstanding — diluted	234		241		232			242
Earnings (loss) per common share — diluted	$	0.23	$	0.65	$	(0.03	)	$	0.96

Weighted average shares outstanding - diluted for the six months ended June 30, 2019 excludes the dilutive effect of approximately 2 million shares, related primarily 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. Additionally, weighted average shares outstanding - diluted for the three and six months ended June 30, 2019 excludes 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). There were approximately 2 million and 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and six months ended June 30, 2018, respectively.