Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 7. EARNINGS PER SHARE

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)	2021		2020			2021		2020
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	132	$	(2	)	$	211	$	(1,317	)
Weighted average shares outstanding		283		234			254		234
Earnings (loss) per common share — basic	$	0.47	$	(0.01	)	$	0.83	$	(5.62	)
Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	132	$	(2	)	$	211	$	(1,317	)
Weighted average shares outstanding		283		234			254		234
Dilutive effect of stock options and other dilutive securities		3		—			3		—
Weighted average shares outstanding — diluted		286		234			257		234
Earnings (loss) per common share — diluted	$	0.46	$	(0.01	)	$	0.82	$	(5.62	)

Weighted average shares outstanding — diluted for the three and nine months ended September 30, 2021 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). Weighted average shares outstanding — diluted for the three and nine months ended September 30, 2020 excludes approximately 9 million equivalent shares related to underwater options. At September 30, 2020, there were no options with exercise prices less than the average market price of our common shares (i.e., “in-the-money” options).