Earnings Per Share

12 Months Ended

Dec. 31, 2023

Note 8. 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:



(In millions, except per share amounts)	2023			2022		2021
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	(689	)	$	202	$	764
Weighted average shares outstanding		285			284		261
Earnings (loss) per common share — basic	$	(2.42	)	$	0.71	$	2.92

Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	(689	)	$	202	$	764
Weighted average shares outstanding		285			284		261
Dilutive effect of stock options and other dilutive securities		—			2		3
Weighted average shares outstanding — diluted		285			286		264
Earnings (loss) per common share — diluted	$	(2.42	)	$	0.71	$	2.89

Weighted average shares outstanding — diluted for 2023 excludes approximately 2 million shares, 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 2023, 2022 and 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).