Earnings Per Share

3 Months Ended

Mar. 31, 2023

NOTE 6. 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)	2023			2022
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(101	)	$	96
Weighted average shares outstanding		285			284
Earnings (loss) per common share — basic	$	(0.35	)	$	0.34

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(101	)	$	96
Weighted average shares outstanding		285			284
Dilutive effect of stock options and other dilutive securities		—			3
Weighted average shares outstanding — diluted		285			287
Earnings (loss) per common share — diluted	$	(0.35	)	$	0.33

Weighted average shares outstanding — diluted for the three months ended March 31, 2023 excludes the dilutive effect of approximately 1 million shares, related primarily to unvested performance share units and restricted stock units, as their inclusion would have been anti-dilutive due to the Goodyear net loss. Additionally, weighted average shares outstanding — diluted for both the three months ended March 31, 2023 and 2022 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).