Earnings Per Share

12 Months Ended

Dec. 31, 2019

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)	2019			2018		2017
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(311	)	$	693	$	346
Weighted average shares outstanding	233			237		249
Earnings (loss) per common share — basic	$	(1.33	)	$	2.92	$	1.39

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(311	)	$	693	$	346
Weighted average shares outstanding	233			237		249
Dilutive effect of stock options and other dilutive securities	—			2		4
Weighted average shares outstanding — diluted	233			239		253
Earnings (loss) per common share — diluted	$	(1.33	)	$	2.89	$	1.37

Weighted average shares outstanding — diluted for 2019 excludes the dilutive effect of approximately 3 million equivalent 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 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 2018 and 2017, respectively.