Earnings Per Share

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2022		2021		2022		2021
Earnings per share — basic:
Goodyear net income	$	166	$	67	$	262	$	79
Weighted average shares outstanding		284		244		284		239
Earnings per common share — basic	$	0.58	$	0.27	$	0.92	$	0.33

Earnings per share — diluted:
Goodyear net income	$	166	$	67	$	262	$	79
Weighted average shares outstanding		284		244		284		239
Dilutive effect of stock options and other dilutive securities		2		3		2		3
Weighted average shares outstanding — diluted		286		247		286		242
Earnings per common share — diluted	$	0.58	$	0.27	$	0.91	$	0.32

Weighted average shares outstanding — diluted for both the three and six months ended June 30, 2022 and the three and six months ended June 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).