Earnings Per Share

6 Months Ended

Jun. 30, 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					Six Months Ended
	June 30,					June 30,
(In millions, except per share amounts)	2023			2022		2023			2022
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(208	)	$	166	$	(309	)	$	262
Weighted average shares outstanding		285			284		285			284
Earnings (loss) per common share — basic	$	(0.73	)	$	0.58	$	(1.08	)	$	0.92

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(208	)	$	166	$	(309	)	$	262
Weighted average shares outstanding		285			284		285			284
Dilutive effect of stock options and other dilutive securities		—			2		—			2
Weighted average shares outstanding — diluted		285			286		285			286
Earnings (loss) per common share — diluted	$	(0.73	)	$	0.58	$	(1.08	)	$	0.91

Weighted average shares outstanding — diluted for the three and six months ended June 30, 2023 excludes the dilutive effect of approximately 2 million shares and 1 million shares, respectively, related primarily to options with exercise prices less than the average market price of our common shares (i.e., "in-the-money" options) and unvested 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 and six months ended June 30, 2023 and the three and six months ended June 30, 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).