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)	2017		2016		2017		2016
Earnings per share — basic:
Goodyear net income	$	147	$	202	$	313	$	386
Weighted average shares outstanding	252		264		252		266
Earnings per common share — basic	$	0.58	$	0.76	$	1.24	$	1.45

Earnings per share — diluted:
Goodyear net income	$	147	$	202	$	313	$	386
Weighted average shares outstanding	252		264		252		266
Dilutive effect of stock options and other dilutive securities	4		4		4		3
Weighted average shares outstanding — diluted	256		268		256		269
Earnings per common share — diluted	$	0.58	$	0.75	$	1.23	$	1.43

Weighted average shares outstanding - diluted for the three and six months ended June 30, 2017 and 2016 exclude approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options).