Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

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)	2021		2020
Earnings (loss) per share — basic:
Goodyear net income (loss)	$	12	$	(619	)
Weighted average shares outstanding		235		234
Earnings (loss) per common share — basic	$	0.05	$	(2.65	)
Earnings (loss) per share — diluted:
Goodyear net income (loss)	$	12	$	(619	)
Weighted average shares outstanding		235		234
Dilutive effect of stock options and other dilutive securities		3		—
Weighted average shares outstanding — diluted		238		234
Earnings (loss) per common share — diluted	$	0.05	$	(2.65	)

Weighted average shares outstanding — diluted for the three months ended March 31, 2021 and 2020 excludes approximately 2 million and 9 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options).  At March 31, 2020, there were no options with exercise prices less than the average market price of our common shares (i.e., “in-the-money” options).