Earnings Per Share

3 Months Ended

Mar. 31, 2022

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
	March 31,
(In millions, except per share amounts)	2022		2021
Earnings per share — basic:
Goodyear net income	$	96	$	12
Weighted average shares outstanding		284		235
Earnings per common share — basic	$	0.34	$	0.05

Earnings per share — diluted:
Goodyear net income	$	96	$	12
Weighted average shares outstanding		284		235
Dilutive effect of stock options and other dilutive securities		3		3
Weighted average shares outstanding — diluted		287		238
Earnings per common share — diluted	$	0.33	$	0.05

Weighted average shares outstanding — diluted for both the three months ended March 31, 2022 and March 31, 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).