Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 1-1927 | |
Entity Registrant Name | THE GOODYEAR TIRE & RUBBER COMPANY | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0253240 | |
Entity Address, Address Line One | 200 Innovation Way | |
Entity Address, City or Town | Akron | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44316-0001 | |
City Area Code | 330 | |
Local Phone Number | 796-2121 | |
Title of 12(b) Security | Common Stock, Without Par Value | |
Trading Symbol | GT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Outstanding | 281,192,923 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0000042582 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 3,979 | $ 2,144 | $ 7,490 | $ 5,200 |
Cost of Goods Sold | 3,078 | 2,216 | 5,829 | 4,768 |
Selling, Administrative and General Expense | 658 | 451 | 1,222 | 1,032 |
Goodwill And Other Asset Impairments | 0 | 148 | 0 | 330 |
Rationalizations | 18 | 99 | 68 | 108 |
Interest Expense | 97 | 85 | 176 | 158 |
Other (Income) Expense | 30 | 34 | 64 | 61 |
Income (Loss) before Income Taxes | 98 | (889) | 131 | (1,257) |
United States and Foreign Tax Expense (Benefit) | 27 | (186) | 42 | 63 |
Net Income (Loss) | 71 | (703) | 89 | (1,320) |
Less: Minority Shareholders' Net Income (Loss) | 4 | (7) | 10 | (5) |
Goodyear Net Income (Loss) | $ 67 | $ (696) | $ 79 | $ (1,315) |
Goodyear Net Income (Loss) — Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 0.27 | $ (2.97) | $ 0.33 | $ (5.62) |
Weighted Average Shares Outstanding (in shares) | 244 | 234 | 239 | 234 |
Diluted (in dollars per share) | $ 0.27 | $ (2.97) | $ 0.32 | $ (5.62) |
Weighted Average Shares Outstanding (in shares) | 247 | 234 | 242 | 234 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 71 | $ (703) | $ 89 | $ (1,320) |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation, net of tax of $2 and $1 in 2021 ($4 and ($4) in 2020) | 33 | (7) | (6) | (232) |
Unrealized gain from securities, net of tax of $0 and $0 in 2021 ($0 and $0 in 2020) | 8 | 0 | 8 | 0 |
Defined benefit plans: | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 and $17 in 2021 ($8 and $17 in 2020) | 26 | 28 | 53 | 55 |
Decrease/(increase) in net actuarial losses, net of tax of $2 and $5 in 2021 (($2) and ($2) in 2020) | 7 | (8) | 16 | (9) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax of $4 and $4 in 2021 ($0 and ($1) in 2020) | 15 | 1 | 15 | 0 |
Deferred derivative gains (losses), net of tax of $0 and $0 in 2021 (($4) and $1 in 2020) | (1) | 1 | 0 | 19 |
Reclassification adjustment for amounts recognized in income, net of tax of $0 and $0 in 2021 ($0 and $0 in 2020) | 0 | (4) | (2) | (8) |
Other Comprehensive Income (Loss) | 88 | 11 | 84 | (175) |
Comprehensive Income (Loss) | 159 | (692) | 173 | (1,495) |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 3 | (7) | 2 | (14) |
Goodyear Comprehensive Income (Loss) | $ 156 | $ (685) | $ 171 | $ (1,481) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax on foreign currency translation | $ 2 | $ 4 | $ 1 | $ (4) |
Tax on unrealized gain from securities | 0 | 0 | 0 | 0 |
Defined benefit plans: | ||||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 8 | 8 | 17 | 17 |
Tax on (increase)/decrease in net actuarial losses | 2 | (2) | 5 | (2) |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 4 | 0 | 4 | (1) |
Tax effect of deferred derivative gains (losses) | 0 | (4) | 0 | 1 |
Tax effect of reclassification adjustment for amounts recognized in income | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,030 | $ 1,539 |
Accounts Receivable, less Allowance — $144 ($150 in 2020) | 2,819 | 1,691 |
Inventories: | ||
Raw Materials | 782 | 517 |
Work in Process | 174 | 143 |
Finished Products | 2,358 | 1,493 |
Inventories | 3,314 | 2,153 |
Prepaid Expenses and Other Current Assets | 356 | 237 |
Total Current Assets | 7,519 | 5,620 |
Goodwill | 874 | 408 |
Intangible Assets | 1,216 | 135 |
Deferred Income Taxes | 1,170 | 1,467 |
Other Assets | 1,079 | 952 |
Operating Lease Right-of-Use Assets | 1,025 | 851 |
Property, Plant and Equipment, less Accumulated Depreciation - $11,192 ($10,991 in 2020) | 8,297 | 7,073 |
Total Assets | 21,180 | 16,506 |
Current Liabilities: | ||
Accounts Payable — Trade | 3,858 | 2,945 |
Compensation and Benefits | 687 | 540 |
Other Current Liabilities | 849 | 865 |
Notes Payable and Overdrafts | 459 | 406 |
Operating Lease Liabilities due Within One Year | 215 | 198 |
Long Term Debt and Finance Leases due Within One Year | 535 | 152 |
Total Current Liabilities | 6,603 | 5,106 |
Operating Lease Liabilities | 843 | 684 |
Long Term Debt and Finance Leases | 6,978 | 5,432 |
Compensation and Benefits | 1,677 | 1,470 |
Deferred Income Taxes | 97 | 84 |
Other Long Term Liabilities | 571 | 471 |
Total Liabilities | 16,769 | 13,247 |
Commitments and Contingent Liabilities | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares - 281 million in 2021 (233 million in 2020) | 281 | 233 |
Capital Surplus | 3,086 | 2,171 |
Retained Earnings | 4,888 | 4,809 |
Accumulated Other Comprehensive Loss | (4,043) | (4,135) |
Goodyear Shareholders’ Equity | 4,212 | 3,078 |
Minority Shareholders’ Equity — Nonredeemable | 199 | 181 |
Total Shareholders’ Equity | 4,411 | 3,259 |
Total Liabilities and Shareholders’ Equity | $ 21,180 | $ 16,506 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for Accounts Receivable | $ 141 | $ 150 |
Accumulated Depreciation | $ 11,192 | $ 10,991 |
Common Stock, par value (in dollars per share) | ||
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, shares outstanding (in shares) | 281,000,000 | 233,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital Surplus | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Goodyear Shareholders' Equity | Goodyear Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment | Minority Shareholders' Equity - Non-Redeemable |
Beginning balance at Dec. 31, 2019 | $ 4,545 | $ (12) | $ 233 | $ 2,141 | $ 6,113 | $ (12) | $ (4,136) | $ 4,351 | $ (12) | $ 194 |
Common stock beginning balance (in shares) at Dec. 31, 2019 | 232,650,318 | |||||||||
Net income (loss) | (617) | (619) | (619) | 2 | ||||||
Other comprehensive income (loss) | $ (186) | (177) | (177) | (9) | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||||
Comprehensive Income (Loss) | $ (803) | (796) | (7) | |||||||
Stock-based compensation plans | 7 | 7 | 7 | |||||||
Dividends declared | (38) | (38) | (38) | |||||||
Common stock issued from treasury | (2) | (2) | (2) | |||||||
Common stock issued from treasury (in shares) | 347,232 | |||||||||
Ending balance at Mar. 31, 2020 | 3,697 | $ 233 | 2,146 | 5,444 | (4,313) | 3,510 | 187 | |||
Common stock ending balance (in shares) at Mar. 31, 2020 | 232,997,550 | |||||||||
Beginning balance at Dec. 31, 2019 | 4,545 | $ (12) | $ 233 | 2,141 | 6,113 | $ (12) | (4,136) | 4,351 | $ (12) | 194 |
Common stock beginning balance (in shares) at Dec. 31, 2019 | 232,650,318 | |||||||||
Net income (loss) | (1,320) | |||||||||
Other comprehensive income (loss) | (175) | |||||||||
Comprehensive Income (Loss) | (1,495) | |||||||||
Ending balance at Jun. 30, 2020 | 3,013 | $ 233 | 2,154 | 4,748 | (4,302) | 2,833 | 180 | |||
Common stock ending balance (in shares) at Jun. 30, 2020 | 233,010,562 | |||||||||
Beginning balance at Mar. 31, 2020 | 3,697 | $ 233 | 2,146 | 5,444 | (4,313) | 3,510 | 187 | |||
Common stock beginning balance (in shares) at Mar. 31, 2020 | 232,997,550 | |||||||||
Net income (loss) | (703) | (696) | (696) | (7) | ||||||
Other comprehensive income (loss) | 11 | 11 | 11 | |||||||
Comprehensive Income (Loss) | (692) | (685) | (7) | |||||||
Stock-based compensation plans | 8 | 8 | 8 | |||||||
Common stock issued from treasury (in shares) | 13,012 | |||||||||
Ending balance at Jun. 30, 2020 | 3,013 | $ 233 | 2,154 | 4,748 | (4,302) | 2,833 | 180 | |||
Common stock ending balance (in shares) at Jun. 30, 2020 | 233,010,562 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 3,259 | $ 233 | 2,171 | 4,809 | (4,135) | 3,078 | 181 | |||
Common stock beginning balance (in shares) at Dec. 31, 2020 | 233,000,000 | 233,220,098 | ||||||||
Net income (loss) | $ 18 | 12 | 12 | 6 | ||||||
Other comprehensive income (loss) | (4) | 3 | 3 | (7) | ||||||
Comprehensive Income (Loss) | 14 | 15 | (1) | |||||||
Stock-based compensation plans | 4 | 4 | 4 | |||||||
Common stock issued from treasury | 9 | $ 2 | 7 | 9 | ||||||
Common stock issued from treasury (in shares) | 1,759,931 | |||||||||
Ending balance at Mar. 31, 2021 | 3,286 | $ 235 | 2,182 | 4,821 | (4,132) | 3,106 | 180 | |||
Common stock ending balance (in shares) at Mar. 31, 2021 | 234,980,029 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 3,259 | $ 233 | 2,171 | 4,809 | (4,135) | 3,078 | 181 | |||
Common stock beginning balance (in shares) at Dec. 31, 2020 | 233,000,000 | 233,220,098 | ||||||||
Net income (loss) | $ 89 | |||||||||
Other comprehensive income (loss) | 84 | |||||||||
Comprehensive Income (Loss) | 173 | |||||||||
Ending balance at Jun. 30, 2021 | $ 4,411 | $ 281 | 3,086 | 4,888 | (4,043) | 4,212 | 199 | |||
Common stock ending balance (in shares) at Jun. 30, 2021 | 281,000,000 | 281,192,272 | ||||||||
Beginning balance at Mar. 31, 2021 | $ 3,286 | $ 235 | 2,182 | 4,821 | (4,132) | 3,106 | 180 | |||
Common stock beginning balance (in shares) at Mar. 31, 2021 | 234,980,029 | |||||||||
Net income (loss) | 71 | 67 | 67 | 4 | ||||||
Other comprehensive income (loss) | $ 88 | 89 | 89 | (1) | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | |||||||||
Comprehensive Income (Loss) | $ 159 | 156 | 3 | |||||||
Common stock issued | 938 | $ 46 | 892 | 938 | ||||||
Common stock issued (in shares) | 45,824,480 | |||||||||
Stock-based compensation plans | 6 | 6 | 6 | |||||||
Dividends declared | (5) | (5) | ||||||||
Common stock issued from treasury | 6 | 6 | 6 | |||||||
Common stock issued from treasury (in shares) | 387,763 | |||||||||
Acquisition of Cooper Tire's Minority Interest | 21 | 21 | ||||||||
Ending balance at Jun. 30, 2021 | $ 4,411 | $ 281 | $ 3,086 | $ 4,888 | $ (4,043) | $ 4,212 | $ 199 | |||
Common stock ending balance (in shares) at Jun. 30, 2021 | 281,000,000 | 281,192,272 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||||||
Common treasury shares (in shares) | 43,095,635 | 45,452,865 | 43,095,635 | 45,452,865 | 43,483,398 | 45,243,329 | 45,465,877 | 45,813,109 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ 89 | $ (1,320) |
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 405 | 472 |
Amortization and Write-Off of Debt Issuance Costs | 9 | 6 |
Goodwill and Other Asset Impairments | 0 | 330 |
Provision for Deferred Income Taxes (Note 6) | (66) | 58 |
Net Pension Curtailments and Settlements | 19 | 3 |
Net Rationalization Charges (Note 4) | 68 | 108 |
Rationalization Payments | (123) | (101) |
Net (Gains) Losses on Asset Sales (Note 5) | 0 | 2 |
Operating Lease Expense | 143 | 142 |
Operating Lease Payments | (133) | (130) |
Pension Contributions and Direct Payments | (22) | (33) |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | ||
Accounts Receivable | (545) | 36 |
Inventories | (542) | 304 |
Accounts Payable — Trade | 547 | (860) |
Compensation and Benefits | 90 | (11) |
Other Current Liabilities | (42) | 29 |
Other Assets and Liabilities | (28) | 145 |
Total Cash Flows from Operating Activities | (71) | (820) |
Cash Flows from Investing Activities: | ||
Acquisition of Cooper Tire, net of cash and restricted cash acquired | 1,856 | 0 |
Capital Expenditures | (385) | (363) |
Short Term Securities Acquired | (57) | (30) |
Short Term Securities Redeemed | 58 | 46 |
Notes Receivable | (7) | (35) |
Other Transactions | 14 | (8) |
Total Cash Flows from Investing Activities | (2,233) | (390) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 522 | 928 |
Short Term Debt and Overdrafts Paid | (446) | (521) |
Long Term Debt Incurred | 4,855 | 4,886 |
Long Term Debt Paid | (3,042) | (3,879) |
Common Stock Issued | 9 | 0 |
Common Stock Dividends Paid (Note 14) | 0 | (37) |
Transactions with Minority Interests in Subsidiaries | (5) | 0 |
Debt Related Costs and Other Transactions | (73) | (53) |
Total Cash Flows from Financing Activities | 1,820 | 1,324 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (6) | (50) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (490) | 64 |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 1,624 | 974 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 1,134 | 1,038 |
Cooper Tire [Member] | ||
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | ||
Amortization of Inventory Fair Value Adjustment Related to the Cooper Tire Acquisition | 38 | $ 0 |
Transaction and Other Costs Related to the Cooper Tire Acquisition | 55 | |
Cash Payments for Transaction and Other Costs Related to the Cooper Tire Acquisition | $ (33) |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 1. ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America ("U.S. GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”). Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2021. On June 7, 2021 (the “Closing Date”), we completed the previously announced acquisition of Cooper Tire & Rubber Company (“Cooper Tire”), pursuant to the terms of the Agreement and Plan of Merger, dated as of February 22, 2021 (the “Merger Agreement”), by and among Goodyear, Vulcan Merger Sub Inc., a direct, wholly owned subsidiary of Goodyear (“Merger Sub”), and Cooper Tire. On the Closing Date, Merger Sub merged with and into Cooper Tire, with Cooper Tire surviving the merger and becoming a wholly owned subsidiary of Goodyear (the “Merger”). As a result of the Merger, Cooper Tire, along with its subsidiaries, became subsidiaries of Goodyear. For further information about the Merger, refer to Note to the Consolidated Financial Statements No. 2, Cooper Tire Acquisition. Recently Adopted Accounting Standards Effective January 2021 , we adopted an accounting standards update which eliminates differences in practice among fair value accounting for investments in equity securities, equity method investments and certain derivative instruments. The adoption of this standards update did not have a material impact on our consolidated financial statements. Acquisitions We include the results of operations of the businesses in which we acquire a controlling financial interest in our consolidated financial statements beginning as of the acquisition date. On the acquisition date, we recognize, separate from goodwill, the assets acquired, including separately identifiable intangible assets, and the liabilities assumed at their fair values. The excess of the consideration transferred over the fair values assigned to the net identifiable assets and liabilities assumed of the acquired business is recognized as goodwill. Transaction costs are recognized separately from the acquisition and are expensed as incurred. Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are primarily carried at cost. All intercompany balances and transactions have been eliminated in consolidation. Restricted Cash The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: June 30, (In millions) 2021 2020 Cash and Cash Equivalents $ 1,030 $ 1,006 Restricted Cash (1) 104 32 Total Cash, Cash Equivalents and Restricted Cash $ 1,134 $ 1,038 (1) Includes Cooper Tire restricted cash of $ 50 million at June 30, 2021. Restricted Cash primarily represents amounts required to be set aside in relation to (i) change-in-control provisions of certain Cooper Tire compensation plans and (ii) accounts receivable factoring programs. The restrictions lapse as the compensation payments are made or when cash from factored accounts receivable is remitted to the purchaser of those receivables, respectively. At June 30, 2021, $86 million and $ 18 million were recorded in Prepaid Expenses and Other Current Assets and Other Assets in the Consolidated Balance Sheets, respectively. At June 30, 2020, $ 32 million was included in Prepaid Expenses and Other Current Assets. Reclassifications and Adjustments Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. In the second quarter of 2021, we recorded an out of period adjustment of $ 8 million of income related to accrued freight charges in Americas. Additionally, in the first quarter of 2021, we recorded out of period adjustments totaling $ 20 million of expense, primarily related to the valuation of inventory in Americas. The adjustments relate to the years, and interim periods therein, of 2016 to 2020. The adjustments did not have a material effect on any of the periods impacted. |
Cooper Tire Acquisition
Cooper Tire Acquisition | 6 Months Ended |
Jun. 30, 2021 | |
Cooper Tire | |
Business Acquisition [Line Items] | |
Cooper Tire Acquisition | NOTE 2. COOPER TIRE ACQUISITION On June 7, 2021, we completed our acquisition of all of the outstanding shares of common stock of Cooper Tire pursuant to the terms of the Merger Agreement. Cooper Tire’s results of operations have been included in our consolidated financial statements since the Closing Date. Cooper Tire stockholders received $ 41.75 per share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per share of Cooper Tire common stock (the "Merger Consideration") as consideration pursuant to the terms of the Merger Agreement, which amounted to approximately $ 3.1 billion. The acquisition will expand Goodyear’s product offering by combining two portfolios of complementary brands. We used the net proceeds from the issuance of new senior notes with an aggregate principal amount of $ 1.45 billion, together with cash on hand and borrowings under our first lien revolving credit facility, to finance the acquisition of Cooper Tire and related transaction costs. For further information regarding the new senior notes and the first lien revolving credit facility, refer to Note to the Consolidated Financial Statements No. 9, Financing Arrangements and Derivative Financial Instruments. The calculation of the Merger Consideration is as follows: (In millions, except share and per share amounts) Shares Per Share (4) Total Cash paid for Cooper Tire Shares (1) $ 2,121 Cash paid for other Cooper Tire incentive compensation awards (2) 34 Cash component of the Merger Consideration $ 2,155 Shares of Goodyear Common Stock issued to Cooper Tire Stockholders (3) 46,060,349 $ 20.46 942 Merger Consideration $ 3,097 (1) The cash component of the Merger Consideration is computed based on 100 % of the outstanding shares of Cooper Tire common stock, including shares issuable pursuant to the conversion of certain equity-based awards outstanding under Cooper Tire’s equity-based incentive compensation plans (“Cooper Tire Shares”), being exchanged, in part, for the per share cash amount of $ 41.75 . Awards outstanding under Cooper Tire equity-based incentive compensation plans that were converted include Cooper Tire restricted stock units and Cooper Tire performance stock units. These Cooper Tire equity-based awards were canceled and each share equivalent unit was converted, as appropriate, into the Merger Consideration. (In millions, except share and per share amounts) Shares Per Share Total Shares of Cooper Tire Common Stock outstanding as of the Closing Date 50,523,922 Shares issuable pursuant to conversion of share units outstanding 269,238 Cooper Tire Shares 50,793,160 $ 41.75 $ 2,121 (2) Cash consideration for the settlement of outstanding Cooper Tire stock options, Cooper Tire performance cash units and Cooper Tire notional deferred stock units, all of which were cancelled at the Closing Date and paid in cash. (3) The stock component of the Merger Consideration is computed based on a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper Tire Share being exchanged. Shares issued of 46,060,349 are comprised of 45,824,480 of newly issued shares and 235,869 of shares issued from treasury. Shares Exchange Total Cooper Tire Shares 50,793,160 Less: Cooper Tire Shares settled in cash (5) 9,975 50,783,185 0.907 46,060,349 (4) Represents the closing market price of our common stock as of June 4, 2021, the last trading day prior to the Closing Date. (5) Represents fractional and certain other shares that were settled in cash. The following table presents supplemental cash flow information related to the acquisition of Cooper Tire: (In millions) Cash component of the Merger Consideration $ 2,155 Less: Cash acquired 231 Restricted cash acquired 68 Acquisition of Cooper Tire, net of cash and restricted cash acquired $ 1,856 The Consolidated Statements of Cash Flows are presented net of the stock component of the Merger Consideration, which represents a non-cash transaction. The Merger Consideration was allocated on a preliminary basis as of the Closing Date. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and supportable assumptions that management considered reasonable. Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed of Cooper Tire are recognized and measured at fair value. The determination of the fair values of certain assets acquired, including Inventories, Property, Plant and Equipment, Goodwill, Intangible Assets, and Deferred Income Taxes, is dependent upon completion of further fair value analysis by the Company. The determination of the fair values of certain liabilities assumed is dependent upon completion of certain actuarial and other valuations and studies. Given the complex nature of the related valuations and analyses to be completed and the timing of the acquisition, the preliminary purchase price allocation is subject to change. The final valuation of assets acquired and liabilities assumed may be materially different from the estimated values shown below. The following table sets forth the preliminary allocation of the Merger Consideration to the identifiable tangible and intangible assets acquired and liabilities assumed of Cooper Tire, with the excess recorded to Goodwill: (In millions) As of June 7, 2021 Cash and Cash Equivalents $ 231 Accounts Receivable 621 Inventories 693 Property, Plant and Equipment 1,372 Goodwill 475 Intangible Assets 1,086 Other Assets 362 4,840 Accounts Payable — Trade 464 Compensation and Benefits 386 Debt, Finance Leases and Notes Payable and Overdrafts 151 Deferred Tax Liabilities, net 347 Other Liabilities 374 Minority Equity 21 1,743 Merger Consideration $ 3,097 The estimated value of Inventory includes adjustments totaling $ 230 million, comprised of $ 121 million to adjust inventory valued on a last-in, first-out ("LIFO") basis to a current cost basis and $ 109 million to step-up inventory to estimated fair value. The fair value step-up will amortize to Cost of Goods Sold ("CGS") as the related inventory is sold, which negatively impacted the second quarter of 2021 by $ 38 million. We have eliminated the LIFO reserve on Cooper Tire’s U.S. inventories as we predominately determine the value of our inventory using the first-in, first-out ("FIFO") method. To estimate the fair value of inventory, we considered the components of Cooper Tire’s inventory, as well as estimates of selling prices and selling and distribution costs that were based on Cooper Tire’s historical experience. The estimated value of Property, Plant and Equipment includes adjustments totaling $ 175 million to increase the net book value of $ 1,197 million to the preliminary fair value estimate of $ 1,372 million. This estimate is based on other comparable acquisitions and historical experience, and preliminary expectations as to the duration of time we expect to realize benefits from those assets, as we do not yet have sufficient information as to the underlying condition of Cooper Tire’s fixed assets. The estimated fair values of identifiable intangible assets acquired were prepared using an income valuation approach, which requires a forecast of expected future cash flows either through the use of the relief-from-royalty method or the multi-period excess earnings method. The estimated useful lives are based on our historical experience and expectations as to the duration of time we expect to realize benefits from those assets. The estimated fair values of the identifiable intangible assets acquired, their estimated useful lives and the related valuation methodology are as follows: (In millions) Preliminary Range of Valuation Methodology Trade names (indefinite-lived) $ 310 N/A Relief-from-royalty Trade names (definite-lived) 40 13 - 15 years Relief-from-royalty Customer relationships 730 7 - 16 years Multi-period excess earnings Non-compete and other 6 $ 1,086 At the Closing Date, all of the calculated Goodwill of $ 475 million was allocated to our Americas segment. The goodwill consists of expected future economic benefits that will arise from expected future product sales, operating efficiencies and other synergies that may result from the Merger, including income tax synergies, and is not deductible for tax purposes. Net sales and earnings related to Cooper Tire’s operations that have been included in our Consolidated Statements of Operations for the period from the Closing Date through June 30, 2021 are as follows: (In millions) Net Sales $ 256 Income (Loss) before Income Taxes ( 20 ) Goodyear Net Income (Loss) ( 6 ) During the three and six months ended June 30, 2021, we incurred transaction and other costs in connection with the Merger totaling $ 48 million and $ 55 million, respectively, including $ 10 million for a commitment fee related to a bridge term loan facility that was not utilized to finance the transaction and $ 6 million related to the post-combination settlement of certain Cooper Tire incentive compensation awards during the second quarter of 2021. In the three and six months ended June 30, 2021, $ 42 million and $ 49 million of these costs, respectively, are included in Other (Income) Expense, with the remainder included in CGS and Selling, Administrative and General Expense ("SAG") in our Consolidated Statements of Operations. Pro forma financial information The following table summarizes, on a pro forma basis, the combined results of operations of Goodyear and Cooper Tire as though the acquisition and the related financing had occurred as of January 1, 2020. The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of Cooper Tire occurred on January 1, 2020, nor are they indicative of future consolidated operating results. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Net Sales $ 4,563 $ 2,655 $ 8,744 $ 6,253 Income (Loss) before Income Taxes 232 ( 957 ) 320 ( 1,638 ) Goodyear Net Income (Loss) 167 ( 748 ) 220 ( 1,612 ) These pro forma amounts have been calculated after applying Goodyear’s accounting policies and making certain adjustments, which primarily include: (i) depreciation adjustments relating to fair value step-ups to property, plant and equipment; (ii) amortization adjustments relating to fair value estimates of acquired intangible assets; (iii) incremental interest expense associated with the $ 1.45 billion senior note issuance and additional borrowings under our first lien revolving credit facility used, in part, to fund the acquisition, related debt issuance costs, and fair value adjustments related to Cooper Tire's debt; (iv) CGS adjustments relating to fair value step-ups to inventory and the change from LIFO to FIFO; (v) executive severance and stock-based compensation that was accelerated and settled on the Closing Date; and (vi) transaction related costs of both Goodyear and Cooper Tire. |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | NOTE 3. NET SALES The following tables show disaggregated net sales from contracts with customers by major source: Three Months Ended June 30, 2021 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,777 $ 1,085 $ 455 $ 3,317 Other tire and related sales 170 114 22 306 Retail services and service related sales 155 29 15 199 Chemical sales 149 — — 149 Other 5 2 1 8 Net Sales by reportable segment $ 2,256 $ 1,230 $ 493 $ 3,979 Three Months Ended June 30, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 835 $ 595 $ 304 $ 1,734 Other tire and related sales 118 63 14 195 Retail services and service related sales 128 17 16 161 Chemical sales 49 — — 49 Other 4 1 — 5 Net Sales by reportable segment $ 1,134 $ 676 $ 334 $ 2,144 Six Months Ended June 30, 2021 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 3,171 $ 2,207 $ 909 $ 6,287 Other tire and related sales 310 193 44 547 Retail services and service related sales 291 57 31 379 Chemical sales 262 — — 262 Other 9 4 2 15 Net Sales by reportable segment $ 4,043 $ 2,461 $ 986 $ 7,490 Six Months Ended June 30, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 2,141 $ 1,499 $ 647 $ 4,287 Other tire and related sales 260 135 46 441 Retail services and service related sales 261 35 28 324 Chemical sales 140 — — 140 Other 5 2 1 8 Net Sales by reportable segment $ 2,807 $ 1,671 $ 722 $ 5,200 Tire unit sales consist of consumer, commercial, farm and off-the-road tire sales, including the sale of new Company-branded tires through Company-owned retail channels. Other tire and related sales consist of aviation, race and motorcycle tire sales, retread sales and other tire related sales. Sales of tires in this category are not included in reported tire unit information. Retail services and service related sales consist of automotive services performed for customers through our Company-owned retail channels, and includes service related products. Chemical sales relate to the sale of synthetic rubber and other chemicals to third parties, and exclude intercompany sales. Other sales include items such as franchise fees and ancillary tire parts. When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities in the Consolidated Balance Sheets totaled $ 24 million and $ 23 million at June 30, 2021 and December 31, 2020 , respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $ 21 million and $ 27 million at June 30, 2021 and December 31, 2020, respectively. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met. The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six months ended June 30, 2021: (In millions) Balance at December 31, 2020 $ 50 Revenue deferred during period 71 Revenue recognized during period ( 76 ) Impact of foreign currency translation — Balance at June 30, 2021 $ 45 |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Costs Associated with Rationalization Programs | NOTE 4. COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and operating and administrative costs. The following table presents a roll-forward of the liability balance between periods: Associate- (In millions) Related Costs Other Costs Total Balance at December 31, 2020 $ 200 $ — $ 200 2021 Charges 48 20 68 Incurred, net of foreign currency translation of $( 5 ) million and $ 0 million, respectively ( 108 ) ( 20 ) ( 128 ) Reversed to the Statement of Operations — — — Balance at June 30, 2021 $ 140 $ — $ 140 During the first quarter of 2021, we approved a plan primarily designed to reduce SAG in Europe, Middle East and Africa (“EMEA”). We have $ 19 million accrued related to this plan at June 30, 2021, which is expected to be substantially paid through 2021. During the first quarter of 2021, we increased by $ 32 million the estimated total cost of our previously announced plan to permanently close our Gadsden, Alabama tire manufacturing facility (“Gadsden”), primarily to reflect our decision to transfer additional machinery and equipment from Gadsden to other tire manufacturing facilities. We have $ 22 million accrued at June 30, 2021 related to this plan, which is expected to be substantially paid through 2021. In addition, we increased by $ 8 million and $ 29 million in the second quarter and first half of 2021, respectively, the estimated total cost of our previously announced plan to modernize two of our tire manufacturing facilities in Germany, primarily to increase expected associate severance costs based on actual payout history to date and the mix of associates electing lump sum vs. annuity settlements. We have $ 53 million accrued at June 30, 2021 related to this plan, which is expected to be substantially paid through 2022. The remainder of the accrual balance at June 30, 2021 is expected to be substantially utilized in the next 12 months and includes $ 12 million related to global plans to reduce SAG headcount, $ 8 million related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA, $ 6 million related to the closed Amiens, France tire manufacturing facility, and $ 5 million related to a plan primarily to offer voluntary buy-outs to certain associates at Gadsden. The following table shows net rationalization charges included in Income (Loss) before Income Taxes: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Current Year Plans Associate Severance and Other Related Costs $ — $ 64 $ 20 $ 66 Benefit Plan Curtailments/Settlements/Termination Benefits — 5 — 5 Other Exit Costs — 2 — 2 Current Year Plans - Net Charges $ — $ 71 $ 20 $ 73 Prior Year Plans Associate Severance and Other Related Costs $ 8 $ 27 $ 28 $ 33 Benefit Plan Curtailments/Settlements/Termination Benefits — — — ( 4 ) Other Exit Costs 10 1 20 6 Prior Year Plans - Net Charges 18 28 48 35 Total Net Charges $ 18 $ 99 $ 68 $ 108 Asset Write-off and Accelerated Depreciation Charges (1) $ — $ 86 $ — $ 90 (1) Asset write-off and accelerated depreciation charges for the three and six months ended June 30, 2020 are primarily related to the permanent closure of Gadsden. Substantially all of the new charges for the three and six months ended June 30, 2021 and 2020 related to future cash outflows. Net current year plan charges for the six months ended June 30, 2021 primarily related to a plan to reduce SAG headcount in EMEA. Net current year plan charges for the three and six months ended June 30, 2020 primarily related to the permanent closure of Gadsden, including a $ 5 million termination benefits charge for one of our defined benefit pension plans. Net prior year plan charges for the three and six months ended June 30, 2021 included $ 7 million and $ 21 million, respectively, related to the modernization of two of our tire manufacturing facilities in Germany, $ 9 million and $ 17 million, respectively, related to Gadsden, and $ 2 million and $ 8 million, respectively, related to various plans to reduce manufacturing headcount and improve operating efficiency in EMEA. Net prior year plan charges for the three and six months ended June 30, 2020 included $ 25 million related to additional termination benefits for associates at the closed Amiens, France manufacturing facility. Refer to Note to the Consolidated Financial Statements No. 13, Commitments and Contingent Liabilities. In addition, net prior year plan charges for the six months ended June 30, 2020 included $ 6 million related to the plan to modernize two of our tire manufacturing facilities in Germany and $ 4 million related to the plan primarily to offer voluntary buy-outs to certain associates at Gadsden. Net prior year plan charges for the six months ended June 30, 2020 also included a curtailment credit of $ 4 million for a postretirement benefit plan related to the exit of employees under an approved rationalization plan. Ongoing rationalization plans had approximately $ 740 million in charges incurred prior to 2021 and approximately $ 70 million is expected to be incurred in future periods. Approximately 60 associates will be released under new plans initiated in 2021. In the first six months of 2021 , approximately 200 associates were released under plans initiated in prior years. Approximately 30 0 associates remain to be released under all ongoing rationalization plans. |
Other (Income) Expense
Other (Income) Expense | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other (Income) Expense | NOTE 5. OTHER (INCOME) EXPENSE Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Non-service related pension and other postretirement benefits cost $ 32 $ 25 $ 49 $ 51 Interest income on a favorable indirect tax ruling in Brazil ( 48 ) — ( 48 ) — Financing fees and financial instruments expense 17 5 25 12 Net foreign currency exchange (gains) losses — 4 10 3 General and product liability expense - discontinued products 2 2 3 4 Royalty income ( 5 ) ( 4 ) ( 10 ) ( 9 ) Net (gains) losses on asset sales — 3 — 2 Interest income ( 5 ) ( 3 ) ( 11 ) ( 6 ) Transaction costs 32 — 39 — Miscellaneous (income) expense 5 2 7 4 $ 30 $ 34 $ 64 $ 61 Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. For further information, refer to Note to the Consolidated Financial Statements No. 11, Pension, Savings and Other Postretirement Benefit Plans. We, along with other companies, have previously filed various claims with the Brazilian tax authorities challenging the legality of the government's calculation of certain indirect taxes dating back to 2001. During the second quarter of 2021, the Brazilian Supreme Court rendered a final ruling that was favorable to companies on the remaining open aspects of these claims. As a result of this ruling, we recorded a gain in CGS of $ 69 million and related interest income of $ 48 million in Other (Income) Expense. Financing fees and financial instruments expense consists of commitment fees and charges incurred in connection with financing transactions. Financing fees and financial instruments expense for the three and six months ended June 30, 2021 include a $ 10 million charge for a commitment fee on a bridge term loan facility related to the Cooper Tire acquisition that was not utilized and was terminated upon the closing of the transaction. Net foreign currency exchange (gains) losses include $ 7 million of expense in the first quarter of 2021 related to the out of period adjustments discussed in Note to the Consolidated Financial Statements No. 1, Accounting Policies. Transaction costs include legal, consulting and other expenses incurred by us in connection with the Cooper Tire acquisition. Other (Income) Expense also includes general and product liability expense - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries; royalty income which is derived primarily from licensing arrangements; net (gains) and losses on asset sales; and interest income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6. INCOME TAXES For the second quarter of 2021, we recorded income tax expense of $ 27 million on income before income taxes of $ 98 million. For the first six months of 2021, we recorded income tax expense of $ 42 million on income before income taxes of $ 131 million. Income tax expense for the three and six months ended June 30, 2021 includes net discrete benefits of $3 2 million and $ 29 million, respectively, primarily related to adjusting our deferred tax assets in England for an enacted increase in the tax rate, partially offset by net discrete charges for various items, including the settlement of a tax audit in Poland. For the second quarter of 2020, we recorded an income tax benefit of $ 186 million on a loss before income taxes of $ 889 million. For the first six months of 2020, we recorded income tax expense of $ 63 million on a loss before income taxes of $ 1,257 million. Income tax expense (benefit) for the three and six months ended June 30, 2020 includes net discrete charges of $ 2 million and $ 293 million, respectively, primarily related to the establishment of a $ 295 million valuation allowance on certain deferred tax assets for foreign tax credits during the first quarter of 2020. We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21 % for the three and six months ended June 30, 2021 primarily relates to the tax on a favorable indirect tax ruling in Brazil, losses in foreign jurisdictions in which no tax benefits are recorded, and the discrete items noted above. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three and six months ended June 30, 2020 primarily relates to the discrete items noted above, a non-cash goodwill impairment charge of $ 182 million, and forecasted losses for the full year in foreign jurisdictions in which no tax benefits are recorded, which were accentuated during 2020 by business interruptions resulting from the COVID-19 pandemic. We consider both positive and negative evidence when measuring the need for a valuation allowance. The weight given to the evidence is commensurate with the extent to which it may be objectively verified. Current and cumulative financial reporting results are a source of objectively verifiable evidence. We give operating results during the most recent three-year period a significant weight in our analysis. We typically only consider forecasts of future profitability when positive cumulative operating results exist in the most recent three-year period. We perform scheduling exercises to determine if sufficient taxable income of the appropriate character exists in the periods required in order to realize our deferred tax assets with limited lives (such as tax loss carryforwards and tax credits) prior to their expiration. We consider tax planning strategies available to accelerate taxable amounts if required to utilize expiring deferred tax assets. A valuation allowance is not required to the extent that, in our judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not that our deferred tax assets will be realized. At June 30, 2021 and December 31, 2020 , we had approximately $ 800 million and $ 1.2 billion of U.S. federal, state and local net deferred tax assets, respectively, net of valuation allowances totaling $ 368 million primarily for foreign tax credits with limited lives. At June 30, 2021, approximately $ 500 million of these U.S. net deferred tax assets have unlimited lives and approximately $ 300 million have limited lives and expire between 2025 and 2041 . The decrease in our U.S. net deferred tax assets from December 31, 2020 primarily reflects the establishment of deferred tax liabilities for the tax impacts of certain fair value and other purchase accounting adjustments related to the Cooper Tire acquisition. In the U.S., we have a cumulative loss for the three-year period ending June 30, 2021. However, as the three-year cumulative loss in the U.S. is driven by business disruptions created by the COVID-19 pandemic, primarily in 2020, we also considered other objectively verifiable information in assessing our ability to utilize our net deferred tax assets, including recent favorable recovery trends in the tire industry and our tire volume as well as expected continued improvement. In addition, the Cooper Tire acquisition is expected to generate incremental domestic earnings and provide opportunities for cost and other operating synergies to further improve our U.S. profitability. These favorable trends, together with tax planning strategies, may provide sufficient objectively verifiable information to reverse a portion or all of our U.S. valuation allowances for foreign tax credits within the next twelve months. At June 30, 2021 and December 31, 2020 , our U.S. net deferred tax assets included $ 150 million and $ 133 million, respectively, of foreign tax credits with limited lives, net of valuation allowances of $ 328 million, generated primarily from the receipt of foreign dividends. Our earnings and forecasts of future profitability, taking into consideration recent trends, along with three significant sources of foreign income provide us sufficient positive evidence that we will be able to utilize our remaining foreign tax credits that expire between 2025 and 2031 . Our sources of foreign income are (1) 100% of our domestic profitability can be re-characterized as foreign source income under current U.S. tax law to the extent domestic losses have offset foreign source income in prior years, (2) annual net foreign source income, exclusive of dividends, primarily from royalties, and (3) tax planning strategies, including capitalizing research and development costs, accelerating income on cross border transactions, including sales of inventory or raw materials to our subsidiaries, and reducing U.S. interest expense by, for example, reducing intercompany loans through repatriating current year earnings of foreign subsidiaries, all of which would increase our domestic profitability. We consider our current forecasts of future profitability in assessing our ability to realize our deferred tax assets, including our foreign tax credits. As noted above, these forecasts include the impact of recent trends, including various macroeconomic factors such as the impact of the COVID-19 pandemic, on our profitability, as well as the impact of tax planning strategies. Macroeconomic factors, including the impact of the COVID-19 pandemic, possess a high degree of volatility and can significantly impact our profitability. As such, there is a risk that future earnings will not be sufficient to fully utilize our U.S. net deferred tax assets, including our remaining foreign tax credits. However, we believe our forecasts of future profitability along with the three significant sources of foreign income described above provide us sufficient positive, objectively verifiable evidence to conclude that it is more likely than not that, at June 30, 2021, our U.S. net deferred tax assets, including our foreign tax credits, net of valuation allowances, will be fully utilized. At June 30, 2021 and December 31, 2020 , we had approximately $ 1.4 billion and $ 1.3 billion of foreign deferred tax assets, and valuation allowances of $ 1.1 billion. Our losses in various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of these net foreign deferred tax assets. Most notably, in Luxembourg, we maintain a valuation allowance of approximately $ 933 million on all of our net deferred tax assets. Each reporting period, we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. We do not believe that sufficient positive evidence required to release valuation allowances having a significant impact on our financial position or results of operations will exist within the next twelve months. For the six months ended June 30, 2021, changes to our unrecognized tax benefits did not, and for the full year of 2021 are not expected to, have a significant impact on our financial position or results of operations. We are open to examination in the United States for 2020 and in Germany from 2018 onward. Cooper Tire, our newly acquired wholly owned subsidiary, is open to examination in the United States from 2017 onward. Generally, for our remaining tax jurisdictions, years from 2016 onward are still open to examination. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 7. 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) 2021 2020 2021 2020 Earnings (loss) per share — basic: Goodyear net income (loss) $ 67 $ ( 696 ) $ 79 $ ( 1,315 ) Weighted average shares outstanding 244 234 239 234 Earnings (loss) per common share — basic $ 0.27 $ ( 2.97 ) $ 0.33 $ ( 5.62 ) Earnings (loss) per share — diluted: Goodyear net income (loss) $ 67 $ ( 696 ) $ 79 $ ( 1,315 ) Weighted average shares outstanding 244 234 239 234 Dilutive effect of stock options and other dilutive securities 3 — 3 — Weighted average shares outstanding — diluted 247 234 242 234 Earnings (loss) per common share — diluted $ 0.27 $ ( 2.97 ) $ 0.32 $ ( 5.62 ) Weighted average shares outstanding — diluted for the three and six months ended June 30, 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). Weighted average shares outstanding — diluted for the three and six months ended June 30, 2020 excludes approximately 9 million equivalent shares related to underwater options. At June 30, 2020, there were no options with exercise prices less than the average market price of our common shares (i.e., “in-the-money” options). |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 8. BUSINESS SEGMENTS Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Sales: Americas $ 2,256 $ 1,134 $ 4,043 $ 2,807 Europe, Middle East and Africa 1,230 676 2,461 1,671 Asia Pacific 493 334 986 722 Net Sales $ 3,979 $ 2,144 $ 7,490 $ 5,200 Segment Operating Income (Loss): Americas $ 233 $ ( 287 ) $ 347 $ ( 287 ) Europe, Middle East and Africa 43 ( 110 ) 117 ( 163 ) Asia Pacific 23 ( 34 ) 61 ( 28 ) Total Segment Operating Income (Loss) $ 299 $ ( 431 ) $ 525 $ ( 478 ) Less: Goodwill and other asset impairments $ — $ 148 $ — $ 330 Rationalizations (Note 4) 18 99 68 108 Interest expense 97 85 176 158 Other (income) expense (Note 5) 30 34 64 61 Asset write-offs and accelerated depreciation (Note 4) — 86 — 90 Corporate incentive compensation plans 24 7 33 10 Retained expenses of divested operations 4 1 7 3 Other 28 ( 2 ) 46 19 Income (Loss) before Income Taxes $ 98 $ ( 889 ) $ 131 $ ( 1,257 ) Goodwill and other asset impairments; rationalizations, as described in Note to the Consolidated Financial Statements No. 4, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 5, Other (Income) Expense; and asset write-offs and accelerated depreciation were not charged to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Goodwill and Other Asset Impairments: Americas $ — $ 148 $ — $ 148 Europe, Middle East and Africa — — — 182 Total Segment Goodwill and Other Asset Impairments $ — $ 148 $ — $ 330 Rationalizations: Americas $ 8 $ 69 $ 18 $ 72 Europe, Middle East and Africa 7 30 44 36 Total Segment Rationalizations $ 15 $ 99 $ 62 $ 108 Corporate 3 — 6 — $ 18 $ 99 $ 68 $ 108 Net (Gains) Losses on Asset Sales: Europe, Middle East and Africa $ — $ 3 $ — $ 2 Total Segment Net (Gains) Losses on Asset Sales $ — $ 3 $ — $ 2 Asset Write-offs and Accelerated Depreciation: Americas $ — $ 86 $ — $ 89 Europe, Middle East and Africa — — — 1 Total Segment Asset Write-offs and Accelerated Depreciation $ — $ 86 $ — $ 90 The following table presents segment assets: June 30, December 31, (In millions) 2021 2020 Assets Americas $ 9,902 $ 6,666 Europe, Middle East and Africa 5,366 4,825 Asia Pacific 3,143 2,725 Total Segment Assets 18,411 14,216 Corporate (1) 2,769 2,290 $ 21,180 $ 16,506 (1) Corporate includes substantially all of our U.S. net deferred tax assets. The increases from December 31, 2020 were driven by the acquisition of Cooper Tire. |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Financing Arrangements And Derivative Financial Instruments [Abstract] | |
Financing Arrangements and Derivative Financial Instruments | NOTE 9. FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS At June 30, 2021 , we had total credit arrangements of $ 11,951 million, of which $ 4,112 million were unused. At that date, 23 % of our debt was at variable interest rates averaging 2.98 %. Notes Payable and Overdrafts, Long Term Debt and Finance Leases due Within One Year and Short Term Financing Arrangements At June 30, 2021 , we had short term committed and uncommitted credit arrangements totaling $ 968 million, of which $ 479 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates. The following table presents amounts due within one year: June 30, December 31, (In millions) 2021 2020 Chinese credit facilities $ 96 $ 163 Other foreign and domestic debt 363 243 Notes Payable and Overdrafts $ 459 $ 406 Weighted average interest rate 4.05 % 4.52 % Chinese credit facilities $ 90 $ 13 Other foreign and domestic debt (including finance leases) 445 139 Long Term Debt and Finance Leases due Within One Year $ 535 $ 152 Weighted average interest rate 3.29 % 4.43 % Total obligations due within one year $ 994 $ 558 Long Term Debt and Finance Leases and Financing Arrangements At June 30, 2021 , we had long term credit arrangements totaling $ 10,983 million, of which $ 3,633 million were unused. The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: June 30, 2021 December 31, 2020 Interest Interest (In millions) Amount Rate Amount Rate Notes: 5.125 % due 2023 $ — $ 1,000 3.75 % Euro Notes due 2023 297 307 9.5 % due 2025 803 803 5 % due 2026 900 900 4.875 % due 2027 700 700 7.625 % due 2027 136 — 7 % due 2028 150 150 5 % due 2029 850 — 5.25 % due April 2031 550 — 5.25 % due July 2031 600 — 5.625 % due 2033 450 — Credit Facilities: First lien revolving credit facility due 2026 — — — — Second lien term loan facility due 2025 400 2.09 % 400 2.15 % European revolving credit facility due 2024 — — — — Pan-European accounts receivable facility 246 1.15 % 291 1.18 % Mexican credit facility 200 1.82 % 152 1.87 % Chinese credit facilities 314 4.34 % 212 4.49 % Other foreign and domestic debt (1) 712 3.03 % 451 3.22 % 7,308 5,366 Unamortized deferred financing fees ( 54 ) ( 32 ) 7,254 5,334 Finance lease obligations (2) 259 250 7,513 5,584 Less portion due within one year ( 535 ) ( 152 ) $ 6,978 $ 5,432 (1) Interest rates are weighted average interest rates primarily related to various foreign credit facilities with customary terms and conditions. (2) Includes non-cash financing additions of $ 10 million during the six month period ended June 30, 2021. NOTES At June 30, 2021 , we had $ 5,436 million of outstanding notes, compared to $ 3,860 million at December 31, 2020 . The increase from December 31, 2020 was primarily due to the issuance of $ 1.45 billion of senior notes to fund a portion of the acquisition of Cooper Tire. $550 million 5.25% Senior Notes due April 2031 and $450 million 5.625% Senior Notes due 2033 On April 6, 2021, we issued $ 550 million in aggregate principal amount of 5.25 % senior notes due 2031 and $ 450 million in aggregate principal amount of 5.625 % senior notes due 2033. The proceeds from these notes, together with cash and cash equivalents, were used to redeem our existing $ 1.0 billion 5.125 % senior notes due 2023 in May 2021. These notes were sold at 100 % of the principal amount and will mature on April 30, 2031 and 2033 , respectively. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time prior to their maturity. If we elect to redeem these notes prior to three months before their maturity date, we will pay a redemption price equal to the greater of 100 % of the principal amount of the notes redeemed and the sum of the present values of the remaining scheduled payments on the notes redeemed, discounted using a defined treasury rate plus 50 basis points, plus in each case accrued and unpaid interest to the redemption date. If we elect to redeem these notes on or after three months before their maturity date, we will pay a redemption price equal to 100 % of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur certain liens, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $1.0 billion 5.125% Senior Notes due 2023 On May 6, 2021, we repaid in full our $ 1.0 billion 5.125 % senior notes due 2023 at a redemption price of 100 % of the principal amount, plus accrued and unpaid interest to the redemption date. $850 million 5% Senior Notes due 2029 and $600 million 5.25% Senior Notes due July 2031 On May 18, 2021, we issued $ 850 million in aggregate principal amount of 5 % senior notes due 2029 and $ 600 million in aggregate principal amount of 5.25 % senior notes due 2031. The net proceeds from these notes, together with cash and cash equivalents and borrowings under our first lien revolving credit facility, were used to fund the cash portion of the consideration for the acquisition of Cooper Tire and related transaction costs. These notes were sold at 100 % of the principal amount and will mature on July 15, 2029 and 2031 , respectively. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time prior to their maturity. If we elect to redeem these notes prior to three months before their maturity date, we will pay a redemption price equal to the greater of 100 % of the principal amount of the notes redeemed and the sum of the present values of the remaining scheduled payments on the notes redeemed, discounted using a defined treasury rate plus 50 basis points, plus in each case accrued and unpaid interest to the redemption date. If we elect to redeem these notes on or after three months before their maturity date, we will pay a redemption price equal to 100 % of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur certain liens, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $136 million 7.625% Senior Notes due 2027 of Cooper Tire Following the Cooper Tire acquisition, $ 117 million in aggregate principal amount of Cooper Tire's 7.625 % senior notes due 2027 remain outstanding. These notes also include a $ 19 million fair value step-up, which will be amortized to interest expense over the remaining life of the notes. These notes will mature on March 15, 2027 and are unsecured senior obligations of Cooper Tire. These notes are not redeemable prior to maturity. The terms of the indenture for these notes, among other things, limit the ability of Cooper Tire and certain of its subsidiaries to (i) incur certain liens, (ii) enter into certain sale/leaseback transactions and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of their assets. These covenants are subject to significant exceptions and qualifications. CREDIT FACILITIES $2.75 billion Amended and Restated First Lien Revolving Credit Facility due 2026 On June 7, 2021, we amended and restated our $ 2.0 billion first lien revolving credit facility. Changes to the facility include extending the maturity to June 8, 2026, increasing the amount of the facility to $ 2.75 billion, and including Cooper Tire's accounts receivable and inventory in the borrowing base for the facility. The interest rate for loans under the facility decreased by 50 basis points to LIBOR plus 125 basis points, based on our current liquidity as described below. Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit. Up to $ 800 million in letters of credit and $ 50 million of swingline loans are available for issuance under the facility. Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to $ 250 million. Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries, including, as of July 2, 2021, Cooper Tire and certain of its subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in a variety of collateral. Availability under the facility is subject to a borrowing base, which is based on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the value of our principal trademarks in an amount not to exceed $ 400 million, (iii) the value of eligible machinery and equipment, and (iv) certain cash in an amount not to exceed $ 275 million. To the extent that our eligible accounts receivable, inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $ 2.75 billion. As of June 30, 2021, our borrowing base, and therefore our availability, under this facility was $ 423 million below the facility's stated amount of $ 2.75 billion. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2020. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. If Available Cash (as defined in the facility) plus the availability under the facility is greater than $ 750 million, amounts drawn under the facility will bear interest, at our option, at (i) 125 basis points over LIBOR or (ii) 25 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). If Available Cash plus the availability under the facility is equal to or less than $ 750 million, then amounts drawn under the facility will bear interest, at our option, at (i) 150 basis points over LIBOR or (ii) 50 basis points over an alternative base rate. Undrawn amounts under the facility will be subject to an annual commitment fee of 25 basis points. At June 30, 2021 , we had no borrowings and $ 19 million of letters of credit issued under the revolving credit facility. At December 31, 2020 , we had no borrowings and $ 11 million of letters of credit issued under the revolving credit facility. Amended and Restated Second Lien Term Loan Facility due 2025 Our amended and restated second lien term loan facility matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility. Our obligations under our second lien term loan facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries, including, as of July 2, 2021, Cooper Tire and certain of its subsidiaries, and are secured by second priority security interests in the same collateral securing the $ 2.75 billion first lien revolving credit facility. At both June 30, 2021 and December 31, 2020 , the amount outstanding under this facility was $ 400 million. € 800 million Amended and Restated Senior Secured European Revolving Credit Facility due 2024 Our amended and restated European revolving credit facility consists of (i) a € 180 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a € 620 million all-borrower tranche that is available to Goodyear Europe B.V. (“GEBV”), GDTG and Goodyear Dunlop Tires Operations S.A. Up to € 175 million of swingline loans and € 75 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under this facility will bear interest at LIBOR plus 150 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 150 basis points for loans denominated in euros, and undrawn amounts under the facility are subject to an annual commitment fee of 25 basis points. GEBV and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GEBV and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2018. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At both June 30, 2021 and December 31, 2020 , there were no borrowings and no letters of credit outstanding under the European revolving credit facility. Accounts Receivable Securitization Facilities (On-Balance Sheet) GEBV and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2023. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than € 30 million and not more than € 450 million. For the period from October 16, 2020 through October 18, 2021, the designated maximum amount of the facility is € 280 million. The facility involves the ongoing daily sale of substantially all of the trade accounts receivable of certain GEBV subsidiaries. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances. The funding commitments under the facility will expire upon the earliest to occur of: (a) September 26, 2023, (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 18, 2021. At June 30, 2021 , the amounts available and utilized under this program totaled $ 246 million (€ 207 million). At December 31, 2020 , the amounts available and utilized under this program totaled $ 291 million (€ 237 million). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Finance Leases. For a description of the collateral securing the credit facilities described above as well as the covenants applicable to them, refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in our 2020 Form 10-K. Accounts Receivable Factoring Facilities (Off-Balance Sheet) We have sold certain of our trade receivables under off-balance sheet programs. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At June 30, 2021 , the gross amount of receivables sold was $ 518 million, compared to $ 451 million at December 31, 2020. The increase from December 31, 2020 is primarily due to the addition of Cooper Tire's off-balance sheet factoring programs. Other Foreign Credit Facilities A Mexican subsidiary and a U.S. subsidiary have a revolving credit facility in Mexico. At June 30, 2021 , the amounts available and utilized under this facility were $ 200 million. At December 31, 2020 , the amounts available and utilized under this facility were $ 200 million and $ 152 million, respectively. The facility ultimately matures in 2022, has covenants relating to the Mexican and U.S. subsidiary, and has customary representations and warranties and defaults relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the facility. A Chinese subsidiary has several financing arrangements in China. At June 30, 2021 and December 31, 2020 , the amounts available under these facilities were $ 931 million and $ 981 million, respectively. At June 30, 2021 , the amount utilized under these facilities was $ 410 million, of which $ 96 million represented notes payable and $ 314 million represented long term debt. At June 30, 2021 , $ 90 million of the long term debt was due within a year. At December 31, 2020 , the amount utilized under these facilities was $ 375 million, of which $ 163 million represented notes payable and $ 212 million represented long term debt. At December 31, 2020 , $ 13 million of the long term debt was due within a year. The facilities contain covenants relating to the Chinese subsidiary and have customary representations and warranties and defaults relating to the Chinese subsidiary’s ability to perform its obligations under the facilities. Certain of the facilities can only be used to finance the expansion of our manufacturing facility in China and, at June 30, 2021 and December 31, 2020 , the unused amounts available under these facilities were $ 89 million and $ 99 million, respectively. Following the Cooper Tire acquisition, two of Cooper Tire's Chinese credit facilities remain outstanding. The amount available under these facilities was $ 29 million and they were not utilized as of June 30, 2021. DERIVATIVE FINANCIAL INSTRUMENTS We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes. Foreign Currency Contracts We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation. The following table presents the fair values for foreign currency hedge contracts that do not meet the criteria to be accounted for as cash flow hedging instruments: June 30, December 31, (In millions) 2021 2020 Fair Values — Current asset (liability): Accounts receivable $ 21 $ 1 Other current liabilities ( 4 ) ( 27 ) At June 30, 2021 and December 31, 2020 , these outstanding foreign currency derivatives had notional amounts of $ 1,335 million and $ 1,664 million, respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction losses on derivatives of $ 14 million and net transaction gains on derivatives of $ 41 million for the three and six months ended June 30, 2021 , respectively. Other (Income) Expense included net transaction losses on derivatives of $ 41 million and $ 3 million for the three and six months ended June 30, 2020, respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures. The following table presents fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: June 30, December 31, (In millions) 2021 2020 Fair Values — Current asset (liability): Other current liabilities $ ( 2 ) $ ( 7 ) At June 30, 2021 and December 31, 2020 , these outstanding foreign currency derivatives had notional amounts of $ 48 million and $ 50 million, respectively, and primarily related to U.S. dollar denominated intercompany transactions. Based on our current forecasts, including the expected ongoing impacts of the COVID-19 pandemic, we believe that it is probable that the underlying hedge transactions will occur within an appropriate time frame in order to continue to qualify for cash flow hedge accounting treatment. We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets. The following table presents the classification of changes in fair values of foreign currency contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss ("AOCL") $ ( 1 ) $ ( 3 ) $ — $ 20 Reclassification adjustment for amounts recognized in CGS — ( 4 ) ( 2 ) ( 8 ) The estimated net amount of deferred gains at June 30, 2021 that are expected to be reclassified to earnings within the next twelve months is $ 1 million. The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that were recognized market makers at the time we entered into those contracts. We seek to control our credit exposure to these counterparties by diversifying across multiple counterparties, by setting counterparty credit limits based on long term credit ratings and other indicators of counterparty credit risk such as credit default swap spreads, and by monitoring the financial strength of these counterparties on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to counterparties in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a counterparty. However, the inability of a counterparty to fulfill its contractual obligations to us could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10. FAIR VALUE MEASUREMENTS The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June 30, 2021 and December 31, 2020: Total Carrying Value Quoted Prices in Active Significant Other Significant (In millions) 2021 2020 2021 2020 2021 2020 2021 2020 Assets: Investments $ 20 $ 11 $ 20 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 21 1 — — 21 1 — — Total Assets at Fair Value $ 41 $ 12 $ 20 $ 11 $ 21 $ 1 $ — $ — Liabilities: Foreign Exchange Contracts $ 6 $ 34 $ — $ — $ 6 $ 34 $ — $ — Total Liabilities at Fair Value $ 6 $ 34 $ — $ — $ 6 $ 34 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at June 30, 2021 and December 31, 2020: June 30, December 31, (In millions) 2021 2020 Fixed Rate Debt: (1) Carrying amount — liability $ 5,632 $ 4,094 Fair value — liability 5,924 4,283 Variable Rate Debt: (1) Carrying amount — liability $ 1,622 $ 1,240 Fair value — liability 1,617 1,197 (1) Excludes Notes Payable and Overdrafts of $ 459 million and $ 406 million at June 30, 2021 and December 31, 2020 , respectively, of which $ 282 million and $ 227 million, respectively, are at fixed rates and $ 177 million and $ 179 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. Long term debt with fair values of $ 6,070 million and $ 4,391 million at June 30, 2021 and December 31, 2020 , respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of financing agreements are similar to terms that could be obtained under current lending conditions. |
Pension, Savings and Other Post
Pension, Savings and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension, Other Postretirement Benefits and Savings Plans | NOTE 11. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS We provide employees with defined benefit pension or defined contribution savings plans. Defined benefit pension cost follows: U.S. U.S. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Service cost $ 2 $ 1 $ 3 $ 2 Interest cost 22 32 42 65 Expected return on plan assets ( 46 ) ( 48 ) ( 88 ) ( 97 ) Amortization of net losses 26 28 54 55 Net periodic pension cost $ 4 $ 13 $ 11 $ 25 Net curtailments/settlements/termination benefits 19 6 19 7 Total defined benefit pension cost $ 23 $ 19 $ 30 $ 32 Non-U.S. Non-U.S. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Service cost $ 8 $ 7 $ 15 $ 14 Interest cost 11 14 22 28 Expected return on plan assets ( 12 ) ( 13 ) ( 22 ) ( 27 ) Amortization of prior service cost 1 — 1 1 Amortization of net losses 9 9 17 19 Net periodic pension cost $ 17 $ 17 $ 33 $ 35 Net curtailments/settlements/termination benefits — — — 1 Total defined benefit pension cost $ 17 $ 17 $ 33 $ 36 The net funded (unfunded) status of Cooper Tire's defined benefit pension plans at the Closing Date was $ 12 million and $( 62 ) million for their U.S. plans and non-U.S. plans, respectively. The net unfunded status of Cooper Tire's U.S. other postretirement benefits plan at the Closing Date was $( 215 ) million. Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan. In the second quarter and first six months of 2021, pension settlement charges of $ 19 million were recorded in Other (Income) Expense. In the second quarter and first six months of 2020, pension settlement charges of $ 1 million and $ 3 million, respectively, were recorded in Other (Income) Expense and a pension termination benefits charge of $ 5 million was recorded in Rationalizations, related to the exit of employees under an approved rationalization plan. We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense for the three months ended June 30, 2021 and 2020 was $ 1 million and $ 2 million, respectively. Other postretirement benefits expense (credit) for the six months ended June 30, 2021 and 2020 was $ 3 million and $( 1 ) million, respectively. The six months ended June 30, 2020 included a curtailment credit of $ 4 million in Rationalizations, related to the exit of employees under an approved rationalization plan. We expect to contribute $ 50 million to $ 75 million to our funded pension plans in 2021. For the three and six months ended June 30, 2021, we contributed $ 5 million and $ 7 million, respectively, to our non-U.S. plans. The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2021 and 2020 was $ 27 million and $ 20 million, respectively, and for the six months ended June 30, 2021 and 2020 was $ 55 million and $ 50 million, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Plans | NOTE 12. STOCK COMPENSATION PLANS Our Board of Directors granted 0.6 million restricted stock units and 0.1 million performance share units during the six months ended June 30, 2021 under our stock compensation plans. We measure the fair value of grants of restricted stock units and performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. The weighted average fair value per share was $ 16.34 for restricted stock units and $ 19.21 for performance share units granted during the six months ended June 30, 2021. We recognized stock-based compensation expense of $ 7 million and $ 11 million during the three and six months ended June 30, 2021, respectively. At June 30, 2021, unearned compensation cost related to the unvested portion of all stock-based awards was approximately $ 26 million and is expected to be recognized over the remaining vesting period of the respective grants, through the first quarter of 2024. We recognized stock-based compensation expense of $ 8 million and $ 14 million during the three and six months ended June 30, 2020, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 13. COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters We have recorded liabilities totaling $ 71 million and $ 64 million at June 30, 2021 and December 31, 2020 , respectively, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $ 21 million and $ 16 million were included in Other Current Liabilities at June 30, 2021 and December 31, 2020, respectively. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims. Since many of the remediation activities related to environmental matters vary substantially in duration and cost from site to site and the associated costs for each vary depending on the mix of unique site characteristics, in some cases we cannot reasonably estimate a range of possible losses. Although it is not possible to estimate with certainty the outcome of all of our environmental matters, management believes that potential losses in excess of current reserves for environmental matters, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. Workers’ Compensation We have recorded liabilities, on a discounted basis, totaling $ 202 million and $ 196 million for anticipated costs related to workers’ compensation at June 30, 2021 and December 31, 2020 , respectively. Of these amounts, $ 34 million and $ 29 million were included in Current Liabilities as part of Compensation and Benefits at June 30, 2021 and December 31, 2020, respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At June 30, 2021 and December 31, 2020, the liability was discounted using a risk-free rate of return. At June 30, 2021 , we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $ 25 million. General and Product Liability and Other Litigation We have recorded liabilities totaling $ 395 million and $ 285 million, including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at June 30, 2021 and December 31, 2020 , respectively. The increase from December 31, 2020 was primarily due to the acquisition of Cooper Tire. Of these amounts, $ 56 million and $ 38 million were included in Other Current Liabilities at June 30, 2021 and December 31, 2020, respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at June 30, 2021, we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates. We have recorded an indemnification asset within Accounts Receivable of $ 1 million and within Other Assets of $ 23 million for Sumitomo Rubber Industries, Ltd.'s ("SRI") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions. Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 154,900 claims by defending, obtaining the dismissal thereof, or entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $ 568 million through June 30, 2021 and $ 563 million through December 31, 2020. A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. Six Months Ended Year Ended (Dollars in millions) June 30, 2021 December 31, 2020 Pending claims, beginning of period 38,700 39,600 New claims filed 500 1,100 Claims settled/dismissed ( 700 ) ( 2,000 ) Pending claims, end of period 38,500 38,700 Payments (1) $ 7 $ 13 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $ 147 million and $ 149 million at June 30, 2021 and December 31, 2020 , respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten-year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant. We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery. We recorded an insurance receivable related to asbestos claims of $ 88 million and $ 90 million at June 30, 2021 and December 31, 2020 , respectively. We expect that approximately 60 % of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $ 13 million was included in Current Assets as part of Accounts Receivable at both June 30, 2021 and December 31, 2020. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers. We believe that, at December 31, 2020 , we had approximately $ 550 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements. We also had additional unsettled excess level policy limits potentially applicable to such costs. In addition, we had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements. With respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Recoveries may also be limited by insurer insolvencies or financial difficulties. Depending upon the nature of these characteristics or events, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us. Amiens Labor Claims Approximately 850 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling approximately € 140 million ($ 166 million) against Goodyear France SAS. On May 28, 2020, Goodyear France SAS received a judgment from the labor court with respect to approximately 790 of these former employees. As a result of this ruling and settlement discussions to resolve these claims and other similar claims, we recognized € 27 million ($ 30 million), primarily in 2020, for estimated additional termination benefits. During the first quarter of 2021, we reached settlement agreements with substantially all of the former employees and are filing appropriate proceedings with the labor court to conclude the related legal proceedings. We will continue to defend ourselves against any remaining claims and any additional claims that may be asserted against us. Other Actions We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations. Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods. Tax Matters The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, would result in a reduction in our effective tax rate in the period of resolution. While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims. Guarantees We have off-balance sheet financial guarantees and other commitments totaling $ 85 million and $ 73 million at June 30, 2021 and December 31, 2020, respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not require collateral in connection with the issuance of these guarantees. In 2017, we issued a guarantee of approximately PLN 165 million ($ 43 million) in connection with an indirect tax assessment in EMEA. This guarantee amount was subsequently increased to PLN 181 million ($ 48 million). We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of $ 46 million to an insurance company related to SRI's obligation to pay certain outstanding workers' compensation claims of a formerly consolidated joint venture entity. As of June 30, 2021 , this guarantee amount has been reduced to $ 23 million. We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2021. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2021 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 14. CAPITAL STOCK Dividends In the first six months of 2020, we paid cash dividends of $ 37 million on our common stock, all of which was paid in the first quarter of 2020. This amount excludes dividends earned on stock-based compensation plans of approximately $ 1 million. On April 16, 2020, we announced that we have suspended the quarterly dividend on our common stock. Common Stock Repurchases We may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of stock options or the vesting or payment of stock awards. During the first six months of 2021, we did no t repurchase any shares from employees. Cooper Tire Acquisition In connection with the acquisition of Cooper Tire, we issued 46,060,349 shares of common stock. Refer to Note to the Consolidated Financial Statements No. 2, Cooper Tire Acquisition. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 15. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in AOCL, by component, for the six months ended June 30, 2021 and 2020, after tax and minority interest. (In millions) Income (Loss) Foreign Unrealized Gains (Losses) from Securities Unrecognized Deferred Total Balance at December 31, 2020 $ ( 1,284 ) $ — $ ( 2,856 ) $ 5 $ ( 4,135 ) Other comprehensive income (loss) before 2 8 16 — 26 Amounts reclassified from accumulated other comprehensive loss — — 68 ( 2 ) 66 Balance at June 30, 2021 $ ( 1,282 ) $ 8 $ ( 2,772 ) $ 3 $ ( 4,043 ) (In millions) Income (Loss) Foreign Unrecognized Deferred Total Balance at December 31, 2019 $ ( 1,156 ) $ ( 2,983 ) $ 3 $ ( 4,136 ) Other comprehensive income (loss) before ( 223 ) ( 9 ) 19 ( 213 ) Amounts reclassified from accumulated other — 55 ( 8 ) 47 Balance at June 30, 2020 $ ( 1,379 ) $ ( 2,937 ) $ 14 $ ( 4,302 ) The following table presents reclassifications out of AOCL: Three Months Ended Six Months Ended 2021 2020 2021 2020 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Component of AOCL from AOCL from AOCL Statements of Operations Amortization of prior service cost and $ 34 $ 36 $ 70 $ 72 Other (Income) Expense Immediate recognition of prior service cost 19 1 19 ( 1 ) Other (Income) Expense / Rationalizations Unrecognized net actuarial losses and 53 37 89 71 Tax effect ( 12 ) ( 8 ) ( 21 ) ( 16 ) United States and Foreign Taxes Net of tax $ 41 $ 29 $ 68 $ 55 Goodyear Net Income (Loss) Deferred derivative (gains) losses, before tax $ — $ ( 4 ) $ ( 2 ) $ ( 8 ) Cost of Goods Sold Tax effect — — — — United States and Foreign Taxes Net of tax $ — $ ( 4 ) $ ( 2 ) $ ( 8 ) Goodyear Net Income (Loss) Total reclassifications $ 41 $ 25 $ 66 $ 47 Goodyear Net Income (Loss) The following table presents the details of comprehensive income (loss) attributable to minority shareholders: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Net Income (Loss) Attributable to Minority Shareholders $ 4 $ ( 7 ) $ 10 $ ( 5 ) Other Comprehensive Income (Loss): Foreign currency translation ( 1 ) — ( 8 ) ( 9 ) Comprehensive Income (Loss) Attributable to Minority Shareholders $ 3 $ ( 7 ) $ 2 $ ( 14 ) |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America ("U.S. GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”). Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2021. On June 7, 2021 (the “Closing Date”), we completed the previously announced acquisition of Cooper Tire & Rubber Company (“Cooper Tire”), pursuant to the terms of the Agreement and Plan of Merger, dated as of February 22, 2021 (the “Merger Agreement”), by and among Goodyear, Vulcan Merger Sub Inc., a direct, wholly owned subsidiary of Goodyear (“Merger Sub”), and Cooper Tire. On the Closing Date, Merger Sub merged with and into Cooper Tire, with Cooper Tire surviving the merger and becoming a wholly owned subsidiary of Goodyear (the “Merger”). As a result of the Merger, Cooper Tire, along with its subsidiaries, became subsidiaries of Goodyear. For further information about the Merger, refer to Note to the Consolidated Financial Statements No. 2, Cooper Tire Acquisition. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective January 2021 , we adopted an accounting standards update which eliminates differences in practice among fair value accounting for investments in equity securities, equity method investments and certain derivative instruments. The adoption of this standards update did not have a material impact on our consolidated financial statements. |
Acquisitions | Acquisitions We include the results of operations of the businesses in which we acquire a controlling financial interest in our consolidated financial statements beginning as of the acquisition date. On the acquisition date, we recognize, separate from goodwill, the assets acquired, including separately identifiable intangible assets, and the liabilities assumed at their fair values. The excess of the consideration transferred over the fair values assigned to the net identifiable assets and liabilities assumed of the acquired business is recognized as goodwill. Transaction costs are recognized separately from the acquisition and are expensed as incurred. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are primarily carried at cost. All intercompany balances and transactions have been eliminated in consolidation. |
Restricted Cash | Restricted Cash The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: June 30, (In millions) 2021 2020 Cash and Cash Equivalents $ 1,030 $ 1,006 Restricted Cash (1) 104 32 Total Cash, Cash Equivalents and Restricted Cash $ 1,134 $ 1,038 (1) Includes Cooper Tire restricted cash of $ 50 million at June 30, 2021. Restricted Cash primarily represents amounts required to be set aside in relation to (i) change-in-control provisions of certain Cooper Tire compensation plans and (ii) accounts receivable factoring programs. The restrictions lapse as the compensation payments are made or when cash from factored accounts receivable is remitted to the purchaser of those receivables, respectively. At June 30, 2021, $86 million and $ 18 million were recorded in Prepaid Expenses and Other Current Assets and Other Assets in the Consolidated Balance Sheets, respectively. At June 30, 2020, $ 32 million was included in Prepaid Expenses and Other Current Assets. |
Reclassifications and Adjustments | Reclassifications and Adjustments Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. In the second quarter of 2021, we recorded an out of period adjustment of $ 8 million of income related to accrued freight charges in Americas. Additionally, in the first quarter of 2021, we recorded out of period adjustments totaling $ 20 million of expense, primarily related to the valuation of inventory in Americas. The adjustments relate to the years, and interim periods therein, of 2016 to 2020. The adjustments did not have a material effect on any of the periods impacted. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: June 30, (In millions) 2021 2020 Cash and Cash Equivalents $ 1,030 $ 1,006 Restricted Cash (1) 104 32 Total Cash, Cash Equivalents and Restricted Cash $ 1,134 $ 1,038 (1) Includes Cooper Tire restricted cash of $ 50 million at June 30, 2021. |
Cooper Tire Acquisition (Tables
Cooper Tire Acquisition (Tables) - Cooper Tire | 6 Months Ended |
Jun. 30, 2021 | |
Business Acquisition [Line Items] | |
Calculation of Merger Consideration | The calculation of the Merger Consideration is as follows: (In millions, except share and per share amounts) Shares Per Share (4) Total Cash paid for Cooper Tire Shares (1) $ 2,121 Cash paid for other Cooper Tire incentive compensation awards (2) 34 Cash component of the Merger Consideration $ 2,155 Shares of Goodyear Common Stock issued to Cooper Tire Stockholders (3) 46,060,349 $ 20.46 942 Merger Consideration $ 3,097 (1) The cash component of the Merger Consideration is computed based on 100 % of the outstanding shares of Cooper Tire common stock, including shares issuable pursuant to the conversion of certain equity-based awards outstanding under Cooper Tire’s equity-based incentive compensation plans (“Cooper Tire Shares”), being exchanged, in part, for the per share cash amount of $ 41.75 . Awards outstanding under Cooper Tire equity-based incentive compensation plans that were converted include Cooper Tire restricted stock units and Cooper Tire performance stock units. These Cooper Tire equity-based awards were canceled and each share equivalent unit was converted, as appropriate, into the Merger Consideration. (In millions, except share and per share amounts) Shares Per Share Total Shares of Cooper Tire Common Stock outstanding as of the Closing Date 50,523,922 Shares issuable pursuant to conversion of share units outstanding 269,238 Cooper Tire Shares 50,793,160 $ 41.75 $ 2,121 (2) Cash consideration for the settlement of outstanding Cooper Tire stock options, Cooper Tire performance cash units and Cooper Tire notional deferred stock units, all of which were cancelled at the Closing Date and paid in cash. (3) The stock component of the Merger Consideration is computed based on a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper Tire Share being exchanged. Shares issued of 46,060,349 are comprised of 45,824,480 of newly issued shares and 235,869 of shares issued from treasury. Shares Exchange Total Cooper Tire Shares 50,793,160 Less: Cooper Tire Shares settled in cash (5) 9,975 50,783,185 0.907 46,060,349 (4) Represents the closing market price of our common stock as of June 4, 2021, the last trading day prior to the Closing Date. (5) Represents fractional and certain other shares that were settled in cash. The Merger Consideration was allocated on a preliminary basis as of the Closing Date. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and supportable assumptions that management considered reasonable. Under the acquisition method of accounting, the identifiable assets acquired and liabilities assumed of Cooper Tire are recognized and measured at fair value. The determination of the fair values of certain assets acquired, including Inventories, Property, Plant and Equipment, Goodwill, Intangible Assets, and Deferred Income Taxes, is dependent upon completion of further fair value analysis by the Company. The determination of the fair values of certain liabilities assumed is dependent upon completion of certain actuarial and other valuations and studies. Given the complex nature of the related valuations and analyses to be completed and the timing of the acquisition, the preliminary purchase price allocation is subject to change. The final valuation of assets acquired and liabilities assumed may be materially different from the estimated values shown below. The following table sets forth the preliminary allocation of the Merger Consideration to the identifiable tangible and intangible assets acquired and liabilities assumed of Cooper Tire, with the excess recorded to Goodwill: (In millions) As of June 7, 2021 Cash and Cash Equivalents $ 231 Accounts Receivable 621 Inventories 693 Property, Plant and Equipment 1,372 Goodwill 475 Intangible Assets 1,086 Other Assets 362 4,840 Accounts Payable — Trade 464 Compensation and Benefits 386 Debt, Finance Leases and Notes Payable and Overdrafts 151 Deferred Tax Liabilities, net 347 Other Liabilities 374 Minority Equity 21 1,743 Merger Consideration $ 3,097 |
Schedule of Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed | The estimated fair values of the identifiable intangible assets acquired, their estimated useful lives and the related valuation methodology are as follows: (In millions) Preliminary Range of Valuation Methodology Trade names (indefinite-lived) $ 310 N/A Relief-from-royalty Trade names (definite-lived) 40 13 - 15 years Relief-from-royalty Customer relationships 730 7 - 16 years Multi-period excess earnings Non-compete and other 6 $ 1,086 |
Schedule of Supplemental Cash Flow Information related to the Acquisition | The following table presents supplemental cash flow information related to the acquisition of Cooper Tire: (In millions) Cash component of the Merger Consideration $ 2,155 Less: Cash acquired 231 Restricted cash acquired 68 Acquisition of Cooper Tire, net of cash and restricted cash acquired $ 1,856 |
Schedule of Net Sales and Earnings | Net sales and earnings related to Cooper Tire’s operations that have been included in our Consolidated Statements of Operations for the period from the Closing Date through June 30, 2021 are as follows: (In millions) Net Sales $ 256 Income (Loss) before Income Taxes ( 20 ) Goodyear Net Income (Loss) ( 6 ) |
Schedule of Pro Forma Financial Information | The following table summarizes, on a pro forma basis, the combined results of operations of Goodyear and Cooper Tire as though the acquisition and the related financing had occurred as of January 1, 2020. The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of Cooper Tire occurred on January 1, 2020, nor are they indicative of future consolidated operating results. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Net Sales $ 4,563 $ 2,655 $ 8,744 $ 6,253 Income (Loss) before Income Taxes 232 ( 957 ) 320 ( 1,638 ) Goodyear Net Income (Loss) 167 ( 748 ) 220 ( 1,612 ) |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Net Sales From Contracts with Customers | The following tables show disaggregated net sales from contracts with customers by major source: Three Months Ended June 30, 2021 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,777 $ 1,085 $ 455 $ 3,317 Other tire and related sales 170 114 22 306 Retail services and service related sales 155 29 15 199 Chemical sales 149 — — 149 Other 5 2 1 8 Net Sales by reportable segment $ 2,256 $ 1,230 $ 493 $ 3,979 Three Months Ended June 30, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 835 $ 595 $ 304 $ 1,734 Other tire and related sales 118 63 14 195 Retail services and service related sales 128 17 16 161 Chemical sales 49 — — 49 Other 4 1 — 5 Net Sales by reportable segment $ 1,134 $ 676 $ 334 $ 2,144 Six Months Ended June 30, 2021 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 3,171 $ 2,207 $ 909 $ 6,287 Other tire and related sales 310 193 44 547 Retail services and service related sales 291 57 31 379 Chemical sales 262 — — 262 Other 9 4 2 15 Net Sales by reportable segment $ 4,043 $ 2,461 $ 986 $ 7,490 Six Months Ended June 30, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 2,141 $ 1,499 $ 647 $ 4,287 Other tire and related sales 260 135 46 441 Retail services and service related sales 261 35 28 324 Chemical sales 140 — — 140 Other 5 2 1 8 Net Sales by reportable segment $ 2,807 $ 1,671 $ 722 $ 5,200 |
Balance and Changes in Deferred Revenue Related to Contracts with Customers | The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six months ended June 30, 2021: (In millions) Balance at December 31, 2020 $ 50 Revenue deferred during period 71 Revenue recognized during period ( 76 ) Impact of foreign currency translation — Balance at June 30, 2021 $ 45 |
Costs Associated with Rationa_2
Costs Associated with Rationalization Programs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Roll-Forward of Liability Balance | The following table presents a roll-forward of the liability balance between periods: Associate- (In millions) Related Costs Other Costs Total Balance at December 31, 2020 $ 200 $ — $ 200 2021 Charges 48 20 68 Incurred, net of foreign currency translation of $( 5 ) million and $ 0 million, respectively ( 108 ) ( 20 ) ( 128 ) Reversed to the Statement of Operations — — — Balance at June 30, 2021 $ 140 $ — $ 140 |
Net Rationalization Charges Included in Income (Loss) Before Income Taxes | The following table shows net rationalization charges included in Income (Loss) before Income Taxes: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Current Year Plans Associate Severance and Other Related Costs $ — $ 64 $ 20 $ 66 Benefit Plan Curtailments/Settlements/Termination Benefits — 5 — 5 Other Exit Costs — 2 — 2 Current Year Plans - Net Charges $ — $ 71 $ 20 $ 73 Prior Year Plans Associate Severance and Other Related Costs $ 8 $ 27 $ 28 $ 33 Benefit Plan Curtailments/Settlements/Termination Benefits — — — ( 4 ) Other Exit Costs 10 1 20 6 Prior Year Plans - Net Charges 18 28 48 35 Total Net Charges $ 18 $ 99 $ 68 $ 108 Asset Write-off and Accelerated Depreciation Charges (1) $ — $ 86 $ — $ 90 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Income and Expense | Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Non-service related pension and other postretirement benefits cost $ 32 $ 25 $ 49 $ 51 Interest income on a favorable indirect tax ruling in Brazil ( 48 ) — ( 48 ) — Financing fees and financial instruments expense 17 5 25 12 Net foreign currency exchange (gains) losses — 4 10 3 General and product liability expense - discontinued products 2 2 3 4 Royalty income ( 5 ) ( 4 ) ( 10 ) ( 9 ) Net (gains) losses on asset sales — 3 — 2 Interest income ( 5 ) ( 3 ) ( 11 ) ( 6 ) Transaction costs 32 — 39 — Miscellaneous (income) expense 5 2 7 4 $ 30 $ 34 $ 64 $ 61 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Common Share | 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) 2021 2020 2021 2020 Earnings (loss) per share — basic: Goodyear net income (loss) $ 67 $ ( 696 ) $ 79 $ ( 1,315 ) Weighted average shares outstanding 244 234 239 234 Earnings (loss) per common share — basic $ 0.27 $ ( 2.97 ) $ 0.33 $ ( 5.62 ) Earnings (loss) per share — diluted: Goodyear net income (loss) $ 67 $ ( 696 ) $ 79 $ ( 1,315 ) Weighted average shares outstanding 244 234 239 234 Dilutive effect of stock options and other dilutive securities 3 — 3 — Weighted average shares outstanding — diluted 247 234 242 234 Earnings (loss) per common share — diluted $ 0.27 $ ( 2.97 ) $ 0.32 $ ( 5.62 ) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Sales: Americas $ 2,256 $ 1,134 $ 4,043 $ 2,807 Europe, Middle East and Africa 1,230 676 2,461 1,671 Asia Pacific 493 334 986 722 Net Sales $ 3,979 $ 2,144 $ 7,490 $ 5,200 Segment Operating Income (Loss): Americas $ 233 $ ( 287 ) $ 347 $ ( 287 ) Europe, Middle East and Africa 43 ( 110 ) 117 ( 163 ) Asia Pacific 23 ( 34 ) 61 ( 28 ) Total Segment Operating Income (Loss) $ 299 $ ( 431 ) $ 525 $ ( 478 ) Less: Goodwill and other asset impairments $ — $ 148 $ — $ 330 Rationalizations (Note 4) 18 99 68 108 Interest expense 97 85 176 158 Other (income) expense (Note 5) 30 34 64 61 Asset write-offs and accelerated depreciation (Note 4) — 86 — 90 Corporate incentive compensation plans 24 7 33 10 Retained expenses of divested operations 4 1 7 3 Other 28 ( 2 ) 46 19 Income (Loss) before Income Taxes $ 98 $ ( 889 ) $ 131 $ ( 1,257 ) |
Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs | Goodwill and other asset impairments; rationalizations, as described in Note to the Consolidated Financial Statements No. 4, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 5, Other (Income) Expense; and asset write-offs and accelerated depreciation were not charged to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Goodwill and Other Asset Impairments: Americas $ — $ 148 $ — $ 148 Europe, Middle East and Africa — — — 182 Total Segment Goodwill and Other Asset Impairments $ — $ 148 $ — $ 330 Rationalizations: Americas $ 8 $ 69 $ 18 $ 72 Europe, Middle East and Africa 7 30 44 36 Total Segment Rationalizations $ 15 $ 99 $ 62 $ 108 Corporate 3 — 6 — $ 18 $ 99 $ 68 $ 108 Net (Gains) Losses on Asset Sales: Europe, Middle East and Africa $ — $ 3 $ — $ 2 Total Segment Net (Gains) Losses on Asset Sales $ — $ 3 $ — $ 2 Asset Write-offs and Accelerated Depreciation: Americas $ — $ 86 $ — $ 89 Europe, Middle East and Africa — — — 1 Total Segment Asset Write-offs and Accelerated Depreciation $ — $ 86 $ — $ 90 |
Segment Assets | The following table presents segment assets: June 30, December 31, (In millions) 2021 2020 Assets Americas $ 9,902 $ 6,666 Europe, Middle East and Africa 5,366 4,825 Asia Pacific 3,143 2,725 Total Segment Assets 18,411 14,216 Corporate (1) 2,769 2,290 $ 21,180 $ 16,506 (1) Corporate includes substantially all of our U.S. net deferred tax assets. |
Financing Arrangements and De_2
Financing Arrangements and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financing Arrangements And Derivative Financial Instruments [Abstract] | |
Long Term Debt and Finance Leases Due Within One Year | The following table presents amounts due within one year: June 30, December 31, (In millions) 2021 2020 Chinese credit facilities $ 96 $ 163 Other foreign and domestic debt 363 243 Notes Payable and Overdrafts $ 459 $ 406 Weighted average interest rate 4.05 % 4.52 % Chinese credit facilities $ 90 $ 13 Other foreign and domestic debt (including finance leases) 445 139 Long Term Debt and Finance Leases due Within One Year $ 535 $ 152 Weighted average interest rate 3.29 % 4.43 % Total obligations due within one year $ 994 $ 558 |
Schedule of Debt | The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: June 30, 2021 December 31, 2020 Interest Interest (In millions) Amount Rate Amount Rate Notes: 5.125 % due 2023 $ — $ 1,000 3.75 % Euro Notes due 2023 297 307 9.5 % due 2025 803 803 5 % due 2026 900 900 4.875 % due 2027 700 700 7.625 % due 2027 136 — 7 % due 2028 150 150 5 % due 2029 850 — 5.25 % due April 2031 550 — 5.25 % due July 2031 600 — 5.625 % due 2033 450 — Credit Facilities: First lien revolving credit facility due 2026 — — — — Second lien term loan facility due 2025 400 2.09 % 400 2.15 % European revolving credit facility due 2024 — — — — Pan-European accounts receivable facility 246 1.15 % 291 1.18 % Mexican credit facility 200 1.82 % 152 1.87 % Chinese credit facilities 314 4.34 % 212 4.49 % Other foreign and domestic debt (1) 712 3.03 % 451 3.22 % 7,308 5,366 Unamortized deferred financing fees ( 54 ) ( 32 ) 7,254 5,334 Finance lease obligations (2) 259 250 7,513 5,584 Less portion due within one year ( 535 ) ( 152 ) $ 6,978 $ 5,432 (1) Interest rates are weighted average interest rates primarily related to various foreign credit facilities with customary terms and conditions. (2) Includes non-cash financing additions of $ 10 million during the six month period ended June 30, 2021. |
Fair Values for Foreign Currency Contracts not Designated as Hedging Instruments | The following table presents the fair values for foreign currency hedge contracts that do not meet the criteria to be accounted for as cash flow hedging instruments: June 30, December 31, (In millions) 2021 2020 Fair Values — Current asset (liability): Accounts receivable $ 21 $ 1 Other current liabilities ( 4 ) ( 27 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedges | The following table presents fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: June 30, December 31, (In millions) 2021 2020 Fair Values — Current asset (liability): Other current liabilities $ ( 2 ) $ ( 7 ) |
Classification of Changes in Fair Values of Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss ("AOCL") $ ( 1 ) $ ( 3 ) $ — $ 20 Reclassification adjustment for amounts recognized in CGS — ( 4 ) ( 2 ) ( 8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities at Fair Value | The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June 30, 2021 and December 31, 2020: Total Carrying Value Quoted Prices in Active Significant Other Significant (In millions) 2021 2020 2021 2020 2021 2020 2021 2020 Assets: Investments $ 20 $ 11 $ 20 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 21 1 — — 21 1 — — Total Assets at Fair Value $ 41 $ 12 $ 20 $ 11 $ 21 $ 1 $ — $ — Liabilities: Foreign Exchange Contracts $ 6 $ 34 $ — $ — $ 6 $ 34 $ — $ — Total Liabilities at Fair Value $ 6 $ 34 $ — $ — $ 6 $ 34 $ — $ — |
Supplemental Fair Value Information | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at June 30, 2021 and December 31, 2020: June 30, December 31, (In millions) 2021 2020 Fixed Rate Debt: (1) Carrying amount — liability $ 5,632 $ 4,094 Fair value — liability 5,924 4,283 Variable Rate Debt: (1) Carrying amount — liability $ 1,622 $ 1,240 Fair value — liability 1,617 1,197 (1) Excludes Notes Payable and Overdrafts of $ 459 million and $ 406 million at June 30, 2021 and December 31, 2020 , respectively, of which $ 282 million and $ 227 million, respectively, are at fixed rates and $ 177 million and $ 179 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. |
Pension, Savings and Other Po_2
Pension, Savings and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Cost | Defined benefit pension cost follows: U.S. U.S. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Service cost $ 2 $ 1 $ 3 $ 2 Interest cost 22 32 42 65 Expected return on plan assets ( 46 ) ( 48 ) ( 88 ) ( 97 ) Amortization of net losses 26 28 54 55 Net periodic pension cost $ 4 $ 13 $ 11 $ 25 Net curtailments/settlements/termination benefits 19 6 19 7 Total defined benefit pension cost $ 23 $ 19 $ 30 $ 32 Non-U.S. Non-U.S. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Service cost $ 8 $ 7 $ 15 $ 14 Interest cost 11 14 22 28 Expected return on plan assets ( 12 ) ( 13 ) ( 22 ) ( 27 ) Amortization of prior service cost 1 — 1 1 Amortization of net losses 9 9 17 19 Net periodic pension cost $ 17 $ 17 $ 33 $ 35 Net curtailments/settlements/termination benefits — — — 1 Total defined benefit pension cost $ 17 $ 17 $ 33 $ 36 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Recent Approximate Asbestos Claims Activity | A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. Six Months Ended Year Ended (Dollars in millions) June 30, 2021 December 31, 2020 Pending claims, beginning of period 38,700 39,600 New claims filed 500 1,100 Claims settled/dismissed ( 700 ) ( 2,000 ) Pending claims, end of period 38,500 38,700 Payments (1) $ 7 $ 13 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component, After Tax and Minority Interest | The following tables present changes in AOCL, by component, for the six months ended June 30, 2021 and 2020, after tax and minority interest. (In millions) Income (Loss) Foreign Unrealized Gains (Losses) from Securities Unrecognized Deferred Total Balance at December 31, 2020 $ ( 1,284 ) $ — $ ( 2,856 ) $ 5 $ ( 4,135 ) Other comprehensive income (loss) before 2 8 16 — 26 Amounts reclassified from accumulated other comprehensive loss — — 68 ( 2 ) 66 Balance at June 30, 2021 $ ( 1,282 ) $ 8 $ ( 2,772 ) $ 3 $ ( 4,043 ) (In millions) Income (Loss) Foreign Unrecognized Deferred Total Balance at December 31, 2019 $ ( 1,156 ) $ ( 2,983 ) $ 3 $ ( 4,136 ) Other comprehensive income (loss) before ( 223 ) ( 9 ) 19 ( 213 ) Amounts reclassified from accumulated other — 55 ( 8 ) 47 Balance at June 30, 2020 $ ( 1,379 ) $ ( 2,937 ) $ 14 $ ( 4,302 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL: Three Months Ended Six Months Ended 2021 2020 2021 2020 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Component of AOCL from AOCL from AOCL Statements of Operations Amortization of prior service cost and $ 34 $ 36 $ 70 $ 72 Other (Income) Expense Immediate recognition of prior service cost 19 1 19 ( 1 ) Other (Income) Expense / Rationalizations Unrecognized net actuarial losses and 53 37 89 71 Tax effect ( 12 ) ( 8 ) ( 21 ) ( 16 ) United States and Foreign Taxes Net of tax $ 41 $ 29 $ 68 $ 55 Goodyear Net Income (Loss) Deferred derivative (gains) losses, before tax $ — $ ( 4 ) $ ( 2 ) $ ( 8 ) Cost of Goods Sold Tax effect — — — — United States and Foreign Taxes Net of tax $ — $ ( 4 ) $ ( 2 ) $ ( 8 ) Goodyear Net Income (Loss) Total reclassifications $ 41 $ 25 $ 66 $ 47 Goodyear Net Income (Loss) |
Comprehensive Income (Loss) Attributable to Minority Shareholders | The following table presents the details of comprehensive income (loss) attributable to minority shareholders: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2021 2020 2021 2020 Net Income (Loss) Attributable to Minority Shareholders $ 4 $ ( 7 ) $ 10 $ ( 5 ) Other Comprehensive Income (Loss): Foreign currency translation ( 1 ) — ( 8 ) ( 9 ) Comprehensive Income (Loss) Attributable to Minority Shareholders $ 3 $ ( 7 ) $ 2 $ ( 14 ) |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 31, 2021 | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201601Member | us-gaap:AccountingStandardsUpdate201409Member | ||
Expense related to valuation of inventory | $ 20 | |||
Accrued freight charges adjustments | $ 8 | |||
Prepaid Expenses and Other Current Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash | $ 32 | |||
Other Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash | $ 18 |
Accounting Policies - Restricte
Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||
Cash and Cash Equivalents | $ 1,030 | $ 1,539 | $ 1,006 | ||
Restricted Cash | [1] | 104 | 32 | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 1,134 | $ 1,624 | $ 1,038 | $ 974 | |
[1] | Includes Cooper Tire restricted cash of $ 50 million at June 30, 2021. |
Accounting Policies - Restric_2
Accounting Policies - Restricted Cash (Parenthetical) - (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Cash and Cash Equivalents | $ 1,030 | $ 1,539 | $ 1,006 | |
Restricted Cash | [1] | 104 | $ 32 | |
Cooper Tire | ||||
Business Acquisition [Line Items] | ||||
Restricted Cash | $ 50 | |||
[1] | Includes Cooper Tire restricted cash of $ 50 million at June 30, 2021. |
Cooper Tire Acquisition - Calcu
Cooper Tire Acquisition - Calculation of Merger Consideration (Details) $ / shares in Units, $ in Millions | Jun. 07, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 874 | $ 408 | |
Cooper Tire Stockholders | |||
Business Acquisition [Line Items] | |||
Common stock, shares issued | shares | 46,060,349 | ||
Cooper Tire | |||
Business Acquisition [Line Items] | |||
Cash paid for Cooper Tire Shares | $ 2,121 | ||
Share price (per share) | $ / shares | $ 41.75 | ||
Cash paid for other Cooper Tire incentive compensation awards | $ 34 | ||
Cash component of the Merger Consideration | 2,155 | ||
Merger consideration | $ 3,100 | ||
Cooper Tire Shares | shares | 50,793,160 | ||
Less: Cooper Tire Shares settled in cash | shares | 9,975 | ||
Cooper Tire Share, net of settlement | shares | 50,783,185 | ||
Exchange ratio | 0.907 | ||
Cash and Cash Equivalents | $ 231 | ||
Accounts Receivable | 621 | ||
Inventories | 693 | ||
Property, Plant and Equipment | 1,372 | ||
Goodwill | 475 | ||
Intangible Assets | 1,086 | ||
Other Assets | 362 | ||
Assets, Total | 4,840 | ||
Accounts Payable - Trade | 464 | ||
Compensation and Benefits | 386 | ||
Debt, Finance Leases and Notes Payable and Overdrafts | 151 | ||
Deferred Tax Liabilities, net | 347 | ||
Other Liabilities | 374 | ||
Minority Equity | 21 | ||
Liabilities, Total | 1,743 | ||
Merger Consideration | $ 3,097 | ||
Cooper Tire | Equity-Based Compensation Plan | |||
Business Acquisition [Line Items] | |||
Cooper Tire Shares | shares | 269,238 | ||
Cooper Tire | Common Stock | |||
Business Acquisition [Line Items] | |||
Cooper Tire Shares | shares | 50,523,922 | ||
Cooper Tire | Cooper Tire Stockholders | |||
Business Acquisition [Line Items] | |||
Common stock, shares issued | shares | 46,060,349 | ||
Share price (per share) | $ / shares | $ 20.46 | ||
Share price, Total | $ 942 |
Cooper Tire Acquisition - Suppl
Cooper Tire Acquisition - Supplemental Cash Flow information related to the Acquisition (Details) - USD ($) $ in Millions | Jun. 07, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||
Acquisition of Cooper Tire, net of cash and restricted cash acquired | $ (1,856) | $ 0 | |
Cooper Tire | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 2,155 | ||
Less: Cash acquired | 231 | ||
Less: Restricted cash acquired | 68 | ||
Cash and Cash Equivalents | 231 | ||
Acquisition of Cooper Tire, net of cash and restricted cash acquired | $ 1,856 |
Cooper Tire Acquisition - Sched
Cooper Tire Acquisition - Schedule of Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - Cooper Tire $ in Millions | Jun. 07, 2021USD ($) |
Business Acquisition [Line Items] | |
Total | $ 1,086 |
Trade names (indefinite-lived) [Member] | |
Business Acquisition [Line Items] | |
Intangible asset, indefinite-lived | 310 |
Trade names (definite-lived) [Member] | |
Business Acquisition [Line Items] | |
Intangible asset, definite-lived | $ 40 |
Trade names (definite-lived) [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life | 13 years |
Trade names (definite-lived) [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life | 15 years |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible asset, definite-lived | $ 730 |
Customer relationships [Member] | Minimum [Member] | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life | 7 years |
Customer relationships [Member] | Maximum [Member] | |
Business Acquisition [Line Items] | |
Weighted Average Useful Life | 16 years |
Non Compete Agreements and Other [Member] | |
Business Acquisition [Line Items] | |
Intangible asset, definite-lived | $ 6 |
Cooper Tire Acquisition - Narra
Cooper Tire Acquisition - Narrative (Details) $ / shares in Units, $ in Millions | Jun. 07, 2021USD ($)$ / sharesshares | May 18, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 874 | $ 874 | $ 408 | ||||
Transaction and other costs | 32 | $ 0 | 39 | $ 0 | |||
Other (Income) Expense | |||||||
Business Acquisition [Line Items] | |||||||
Transaction and other costs | 48 | 55 | |||||
Costs included in Other (Income) Expense | 42 | 49 | |||||
Other (Income) Expense | Bridge Loan | |||||||
Business Acquisition [Line Items] | |||||||
Commitment fee related to bridge term loan facility | 10 | ||||||
Cooper Tire | |||||||
Business Acquisition [Line Items] | |||||||
Share price (per share) | $ / shares | $ 41.75 | ||||||
Exchange ratio | 0.907 | ||||||
Merger consideration | $ 3,100 | ||||||
Proceeds from the issuance of new senior notes | $ 1,450 | ||||||
Percentage of acquiree shares outstanding, cash component of merger consideration computation | 100.00% | ||||||
Per share cash amount | $ / shares | $ 41.75 | ||||||
Common stock issued (in shares) | shares | 45,824,480 | ||||||
Common stock issued from treasury (in shares) | shares | 235,869 | ||||||
Adjustments to estimated value of inventory | $ 230 | ||||||
Inventory adjust amount | 121 | ||||||
Inventory sold related to fair value step-up | 38 | ||||||
Property, plant and equipment at a net book value | 1,197 | ||||||
Preliminary fair value estimate of property, plant and equipment | 1,372 | ||||||
Goodwill | 475 | ||||||
Cooper Tire | Inventory | |||||||
Business Acquisition [Line Items] | |||||||
Inventory Step Up to Estimated Fair Value | 109 | ||||||
Cooper Tire | Property, Plant and Equipment | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment step up estimated fair value | 175 | ||||||
Cooper Tire | Americas [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 475 | ||||||
Cooper Tire | Other (Income) Expense | |||||||
Business Acquisition [Line Items] | |||||||
Post-combination settlement of incentive compensation awards | $ 6 | $ 6 |
Cooper Tire Acquisition - Sch_2
Cooper Tire Acquisition - Schedule of Net Sales and Earnings (Details) - USD ($) $ in Millions | Jun. 07, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||
Income (loss) before income taxes | $ 98 | $ (889) | $ 131 | $ (1,257) | |
Net Income (Loss) attributable to Goodyear | $ 67 | $ (696) | $ 79 | $ (1,315) | |
Cooper Tire | |||||
Business Acquisition [Line Items] | |||||
Net Sales | $ 256 | ||||
Income (loss) before income taxes | (20) | ||||
Net Income (Loss) attributable to Goodyear | $ (6) |
Cooper Tire Acquisition - Sch_3
Cooper Tire Acquisition - Schedule of Pro Forma Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Net Sales | $ 4,563 | $ 2,655 | $ 8,744 | $ 6,253 |
Income (Loss) before Income Taxes | 232 | (957) | 320 | (1,638) |
Goodyear Net Income (Loss) | $ 167 | $ (748) | $ 220 | $ (1,612) |
Net Sales - Schedule of Disaggr
Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 3,979 | $ 2,144 | $ 7,490 | $ 5,200 |
Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 2,256 | 1,134 | 4,043 | 2,807 |
Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,230 | 676 | 2,461 | 1,671 |
Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 493 | 334 | 986 | 722 |
Tire unit sales | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 3,317 | 1,734 | 6,287 | 4,287 |
Tire unit sales | Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,777 | 835 | 3,171 | 2,141 |
Tire unit sales | Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,085 | 595 | 2,207 | 1,499 |
Tire unit sales | Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 455 | 304 | 909 | 647 |
Other tire and related sales | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 306 | 195 | 547 | 441 |
Other tire and related sales | Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 170 | 118 | 310 | 260 |
Other tire and related sales | Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 114 | 63 | 193 | 135 |
Other tire and related sales | Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 22 | 14 | 44 | 46 |
Retail services and service related sales | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 199 | 161 | 379 | 324 |
Retail services and service related sales | Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 155 | 128 | 291 | 261 |
Retail services and service related sales | Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 29 | 17 | 57 | 35 |
Retail services and service related sales | Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 15 | 16 | 31 | 28 |
Chemical sales | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 149 | 49 | 262 | 140 |
Chemical sales | Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 149 | 49 | 262 | 140 |
Chemical sales | Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Chemical sales | Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Other | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 8 | 5 | 15 | 8 |
Other | Americas | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 5 | 4 | 9 | 5 |
Other | Europe, Middle East & Africa | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 2 | 1 | 4 | 2 |
Other | Asia Pacific | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 1 | $ 0 | $ 2 | $ 1 |
Net Sales - Narrative (Details)
Net Sales - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue, current | $ 24 | $ 23 |
Deferred revenue, noncurrent | $ 21 | $ 27 |
Net Sales - Schedule of Balance
Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2020 | $ 50 |
Revenue deferred during period | 71 |
Revenue recognized during period | (76) |
Impact of foreign currency translation | 0 |
Balance at June 30, 2021 | $ 45 |
Costs Associated with Rationa_3
Costs Associated with Rationalization Programs - Roll-Forward of Liability Balance (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Restructuring Reserve | |
Beginning Balance | $ 200 |
New Charges | 68 |
Incurred, net of foreign currency translation of ($6) million and $0 million, respectively | (128) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 140 |
Associate-Related Costs | |
Restructuring Reserve | |
Beginning Balance | 200 |
New Charges | 48 |
Incurred, net of foreign currency translation of ($6) million and $0 million, respectively | (108) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 140 |
Foreign currency translation | (5) |
Other Costs | |
Restructuring Reserve | |
Beginning Balance | 0 |
New Charges | 20 |
Incurred, net of foreign currency translation of ($6) million and $0 million, respectively | (20) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 0 |
Foreign currency translation | $ 0 |
Costs Associated with Rationa_4
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)EmployeeFacility | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Expected number of position to be released (in employees) | Employee | 0 | |||||
Restructuring reserve | $ 140 | $ 140 | $ 200 | |||
Rationalizations | 18 | $ 99 | 68 | $ 108 | ||
Curtailments/settlements/termination benefits | 25 | 25 | ||||
Rationalization charges to date | 740 | 740 | ||||
Future rationalization charges expected | 70 | 70 | ||||
Amiens Labor Claims | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 6 | 6 | ||||
Plan to Permanently Close Gadsden, Alabama Manufacturing Facility | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Increase in estimated total cost of plan | $ 32 | |||||
Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 18 | 28 | $ 48 | 35 | ||
Number of associates released | Employee | 200 | |||||
Prior Year Plans | Rationalizations | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Curtailments/settlements/termination benefits | 4 | |||||
Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 0 | 71 | $ 20 | 73 | ||
Number of associates released | Employee | 60 | |||||
Facility Closing | EMEA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 19 | $ 19 | ||||
Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 22 | 22 | ||||
Modernizing Tire Manufacturing Facilities in Germany | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 53 | $ 53 | ||||
Increase in estimated total cost of plan | 8 | $ 29 | ||||
Number of facilities affected | Facility | 2 | |||||
Modernizing Tire Manufacturing Facilities in Germany | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 7 | $ 21 | 6 | |||
EMEA | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 8 | 8 | ||||
Reduce SAG Headcount | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 12 | 12 | ||||
Gadsden Restructuring Plan to Offer Voluntary Buy-outs to Certain Associates | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | 5 | 5 | ||||
Termination Charge Defined Benefit Plan | $ 5 | 5 | ||||
Gadsden Restructuring Plan to Offer Voluntary Buy-outs to Certain Associates | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 9 | 17 | $ 4 | |||
Manufacturing Employee Severance and Operating Efficiency | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | $ 2 | $ 8 |
Costs Associated with Rationa_5
Costs Associated with Rationalization Programs - Schedule of Net Rationalization Charges Included in Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 18 | $ 99 | $ 68 | $ 108 |
Asset Write-off and Accelerated Depreciation Charges | 0 | 86 | 0 | 90 |
Current Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 71 | 20 | 73 |
Current Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 64 | 20 | 66 |
Current Year Plans | Benefit Plan Curtailments/Settlements/Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 5 | 0 | 5 |
Current Year Plans | Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 2 | 0 | 2 |
Prior Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 18 | 28 | 48 | 35 |
Prior Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 8 | 27 | 28 | 33 |
Prior Year Plans | Benefit Plan Curtailments/Settlements/Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 0 | (4) | |
Prior Year Plans | Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 10 | $ 1 | $ 20 | $ 6 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income And Expenses [Abstract] | ||||
Non-service related pension and other postretirement benefits cost | $ 32 | $ 25 | $ 49 | $ 51 |
Interest income on a favorable indirect tax ruling in Brazil | (48) | 0 | (48) | 0 |
Financing fees and financial instruments expense | 17 | 5 | 25 | 12 |
Net foreign currency exchange (gains) losses | 0 | 4 | 10 | 3 |
General and product liability expense - discontinued products | 2 | 2 | 3 | 4 |
Royalty income | (5) | (4) | (10) | (9) |
Net (gains) losses on asset sales | 0 | 3 | 0 | 2 |
Interest income | (5) | (3) | (11) | (6) |
Transaction costs | 32 | 0 | 39 | 0 |
Miscellaneous (income) expense | (5) | 2 | (7) | 4 |
Other (income) expense | $ 30 | $ 34 | $ 64 | $ 61 |
Other (Income) Expense - Narrat
Other (Income) Expense - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income And Expenses [Abstract] | |||||
Gain (loss) related to settlement | $ 69 | ||||
Interest income, tax settlement | $ 48 | $ 0 | 48 | $ 0 | |
Net foreign currency exchange (gains) losses include expense related to out of period adjustment | $ 7 | ||||
Write off of previously capitalized Bridge Facility fees | $ 10 | $ 10 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | |
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | $ 27,000,000 | $ (186,000,000) | $ 42,000,000 | $ 63,000,000 | ||
Income (loss) before income taxes | 98,000,000 | (889,000,000) | 131,000,000 | (1,257,000,000) | ||
Net discrete tax adjustments | $ 2,000,000 | 2,000,000 | $ 29,000,000 | 293,000,000 | ||
U.S. statutory rate | 21.00% | 21.00% | ||||
Non-cash goodwill impairment charge | $ 182,000,000 | $ 182,000,000 | ||||
Deferred tax asset, tax credit carryforwards, foreign | $ 150,000,000 | $ 150,000,000 | $ 133,000,000 | |||
Foreign Tax Authority | ||||||
Income Taxes [Line Items] | ||||||
Income tax expense (benefit) | 0 | |||||
Tax credit carryforward, valuation allowance | 328,000,000 | 328,000,000 | $ 295,000,000 | |||
Valuation allowance | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | |||
Deferred tax assets | 1,400,000,000 | $ 1,400,000,000 | 1,300,000,000 | |||
Foreign Tax Authority | Luxembourg | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | 933,000,000 | |||||
Foreign Tax Authority | Beginning Year | ||||||
Income Taxes [Line Items] | ||||||
Tax credit carryforward expiration year | 2025 | |||||
Foreign Tax Authority | Ending Year | ||||||
Income Taxes [Line Items] | ||||||
Tax credit carryforward expiration year | 2031 | |||||
Domestic and State and Local Authority | ||||||
Income Taxes [Line Items] | ||||||
Net deferred tax assets | 800,000,000 | $ 800,000,000 | $ 1,200,000,000 | |||
Net deferred tax assets, unlimited lives | 500,000,000 | 500,000,000 | ||||
Net deferred tax assets, limited lives | 300,000,000 | $ 300,000,000 | ||||
Net deferred tax assets, expiration period | between 2025 and 2041 | |||||
Valuation allowance | $ 368,000,000 | $ 368,000,000 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings (loss) per share — basic: | ||||
Goodyear net income (loss) | $ 67 | $ (696) | $ 79 | $ (1,315) |
Weighted Average Shares Outstanding (in shares) | 244 | 234 | 239 | 234 |
Earnings (loss) per common share-basic (in dollars per share) | $ 0.27 | $ (2.97) | $ 0.33 | $ (5.62) |
Earnings (loss) per share — diluted: | ||||
Goodyear net income (loss) | $ 67 | $ (696) | $ 79 | $ (1,315) |
Weighted Average Shares Outstanding (in shares) | 244 | 234 | 239 | 234 |
Dilutive effect of stock options and other dilutive securities (in shares) | 3 | 0 | 3 | 0 |
Weighted average shares outstanding — diluted (in shares) | 247 | 234 | 242 | 234 |
Earnings (loss) per common share-diluted (in dollars per share) | $ 0.27 | $ (2.97) | $ 0.32 | $ (5.62) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Underwater Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 2,000,000 | 9,000,000 | 2,000,000 | 9,000,000 |
In-the-money Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 0 |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Operating Income (Loss) | ||||
Net Sales | $ 3,979 | $ 2,144 | $ 7,490 | $ 5,200 |
Less: | ||||
Income (Loss) before Income Taxes | 98 | (889) | 131 | (1,257) |
Goodwill and other asset impairments | 0 | 148 | 0 | 330 |
Rationalizations | 18 | 99 | 68 | 108 |
Interest Expense | 97 | 85 | 176 | 158 |
Other (income) expense | 30 | 34 | 64 | 61 |
Asset write-offs and accelerated depreciation (Note 3) | 0 | 86 | 0 | 90 |
Corporate incentive compensation plans | 24 | 7 | 33 | 10 |
Operating Segments | ||||
Less: | ||||
Income (Loss) before Income Taxes | 299 | (431) | 525 | (478) |
Rationalizations | 15 | 99 | 62 | 108 |
Segment Reconciling Items | ||||
Less: | ||||
Rationalizations | 18 | 99 | 68 | 108 |
Interest Expense | 97 | 85 | 176 | 158 |
Other (income) expense | 30 | 34 | 64 | 61 |
Asset write-offs and accelerated depreciation (Note 3) | 0 | 86 | 0 | 90 |
Retained expenses of divested operations | 4 | 1 | 7 | 3 |
Corporate and Eliminations | ||||
Less: | ||||
Other | 28 | (2) | 46 | 19 |
Americas | ||||
Segment Operating Income (Loss) | ||||
Net Sales | 2,256 | 1,134 | 4,043 | 2,807 |
Less: | ||||
Asset write-offs and accelerated depreciation (Note 3) | 0 | 86 | 0 | 89 |
Americas | Operating Segments | ||||
Less: | ||||
Income (Loss) before Income Taxes | 233 | (287) | 347 | (287) |
Goodwill and other asset impairments | 0 | 148 | 0 | 148 |
Rationalizations | 8 | 69 | 18 | 72 |
Europe, Middle East and Africa | ||||
Segment Operating Income (Loss) | ||||
Net Sales | 1,230 | 676 | 2,461 | 1,671 |
Less: | ||||
Asset write-offs and accelerated depreciation (Note 3) | 0 | 0 | 0 | 1 |
Europe, Middle East and Africa | Operating Segments | ||||
Less: | ||||
Income (Loss) before Income Taxes | 43 | (110) | 117 | (163) |
Goodwill and other asset impairments | 0 | 0 | 0 | 182 |
Rationalizations | 7 | 30 | 44 | 36 |
Asia Pacific | ||||
Segment Operating Income (Loss) | ||||
Net Sales | 493 | 334 | 986 | 722 |
Asia Pacific | Operating Segments | ||||
Less: | ||||
Income (Loss) before Income Taxes | $ 23 | $ (34) | $ 61 | $ (28) |
Business Segments - Rationaliza
Business Segments - Rationalizations, Asset Sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Goodwill and other asset impairments | $ 0 | $ 148 | $ 0 | $ 330 |
Rationalizations | 18 | 99 | 68 | 108 |
Asset write-offs and accelerated depreciation | 0 | 86 | 0 | 90 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Asset write-offs and accelerated depreciation | 0 | 86 | 0 | 89 |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Asset write-offs and accelerated depreciation | 0 | 0 | 0 | 1 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | 15 | 99 | 62 | 108 |
Net (gains) losses on asset sales | 0 | 3 | 0 | 2 |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill and other asset impairments | 0 | 148 | 0 | 148 |
Rationalizations | 8 | 69 | 18 | 72 |
Operating Segments | Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill and other asset impairments | 0 | 0 | 0 | 182 |
Rationalizations | 7 | 30 | 44 | 36 |
Net (gains) losses on asset sales | 0 | 3 | 0 | 2 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | $ 3 | $ 0 | $ 6 | $ 0 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 21,180 | $ 16,506 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 18,411 | 14,216 | |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Assets | 9,902 | 6,666 | |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,366 | 4,825 | |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,143 | 2,725 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 2,769 | $ 2,290 |
[1] | Corporate includes substantially all of our U.S. net deferred tax assets. |
Financing Arrangements and De_3
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions | Jun. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 11,951 |
Credit arrangements, unused amount | $ 4,112 |
Debt, percentage bearing variable interest | 23.00% |
Long-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 10,983 |
Credit arrangements, unused amount | 3,633 |
Short-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | 968 |
Credit arrangements, unused amount | $ 479 |
Variable Rate Credit Arrangements | |
Debt Instrument [Line Items] | |
Interest rate | 2.98% |
Financing Arrangements and De_4
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases Due Within One Year (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes Payable and Overdrafts | $ 459 | $ 406 |
Long term debt and finance leases due within one year | 535 | 152 |
Total obligations due within one year | 994 | 558 |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 445 | $ 139 |
Weighted average interest rate | 3.03% | 3.22% |
Long Term Debt And Capital Leases, Current | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 3.29% | 4.43% |
Foreign Line of Credit | Chinese credit facilities | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes Payable and Overdrafts | $ 96 | $ 163 |
Long term debt and finance leases due within one year | 90 | 13 |
Foreign Line of Credit | Chinese credit facilities | Line of Credit | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes Payable and Overdrafts | 96 | 163 |
Long term debt and finance leases due within one year | $ 90 | $ 13 |
Weighted average interest rate | 4.34% | 4.49% |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes Payable and Overdrafts | $ 363 | $ 243 |
Notes Payable and Overdrafts | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 4.05% | 4.52% |
Financing Arrangements and De_5
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases, Net of Unamortized Discounts, and Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2021 | May 31, 2021 | May 18, 2021 | May 06, 2021 | Apr. 06, 2021 | Dec. 31, 2020 |
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 7,308 | $ 5,366 | ||||
Unamortized deferred financing fees | (54) | (32) | ||||
Total long term debt excluding capital leases | 7,254 | 5,334 | ||||
Finance lease obligations | 259 | 250 | ||||
Long-term debt and capital leases | 7,513 | 5,584 | ||||
Less portion due within one year | (535) | (152) | ||||
Long-term debt and capital leases, excluding current maturities | 6,978 | 5,432 | ||||
Other Foreign and Domestic Debt | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | 712 | 451 | ||||
Less portion due within one year | $ (445) | $ (139) | ||||
Interest rate | 3.03% | 3.22% | ||||
5.125% due 2023 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 0 | $ 1,000 | ||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | ||
3.75% Euro Notes due 2023 | Euro Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 297 | $ 307 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | ||||
9.5% due 2025 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 803 | $ 803 | ||||
Interest rate, stated percentage | 9.50% | 9.50% | ||||
5% due 2026 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 900 | $ 900 | ||||
Interest rate, stated percentage | 5.00% | 5.00% | ||||
4.875% due 2027 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 700 | $ 700 | ||||
Interest rate, stated percentage | 4.875% | 4.875% | ||||
7.625% due 2027 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 136 | $ 0 | ||||
Interest rate, stated percentage | 7.625% | 7.625% | ||||
7% due 2028 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 150 | $ 150 | ||||
Interest rate, stated percentage | 7.00% | 7.00% | ||||
5% due 2029 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 850 | $ 0 | ||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | |||
5.25% due April 2031 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 550 | $ 0 | ||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | |||
5.25% due July 2031 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 600 | $ 0 | ||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | |||
5.625% due 2033 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 450 | $ 0 | ||||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | |||
First lien revolving credit facility due 2026 | Revolving Credit Facility | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 0 | $ 0 | ||||
Interest rate | 0.00% | 0.00% | ||||
Second lien term loan facility due 2025 | Revolving Credit Facility | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 400 | $ 400 | ||||
Interest rate | 2.09% | 2.15% | ||||
European revolving credit facility due 2024 | Revolving Credit Facility | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 0 | $ 0 | ||||
Interest rate | 0.00% | 0.00% | ||||
Pan-European accounts receivable facility | Senior Notes | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 246 | $ 291 | ||||
Interest rate | 1.15% | 1.18% | ||||
Mexican credit facility | Foreign Line of Credit | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | $ 200 | $ 152 | ||||
Interest rate | 1.82% | 1.87% | ||||
Chinese credit facilities | Foreign Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Less portion due within one year | $ (90) | $ (13) | ||||
Chinese credit facilities | Foreign Line of Credit | Line of Credit | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Long-term debt, before deferred financing fees | 314 | 212 | ||||
Less portion due within one year | $ (90) | $ (13) | ||||
Interest rate | 4.34% | 4.49% |
Financing Arrangements and De_6
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases, Net of Unamortized Discounts, and Interest Rates (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2021 | May 31, 2021 | May 18, 2021 | May 06, 2021 | Apr. 06, 2021 | Dec. 31, 2020 | |
Long-term Debt and Lease Obligation [Abstract] | ||||||
Non Cash Financing Additions | $ 10 | |||||
5.125% due 2023 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | ||
3.75% Euro Notes due 2023 | Euro Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 3.75% | 3.75% | ||||
9.5% due 2025 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 9.50% | 9.50% | ||||
5% due 2026 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | ||||
4.875% due 2027 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 4.875% | 4.875% | ||||
7.625% due 2027 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 7.625% | 7.625% | ||||
7% due 2028 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 7.00% | 7.00% | ||||
5% due 2029 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | |||
5.25% due April 2031 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | |||
5.25% due July 2031 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | |||
5.625% due 2033 | Senior Notes | ||||||
Long-term Debt and Lease Obligation [Abstract] | ||||||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% |
Financing Arrangements and De_7
Financing Arrangements and Derivative Financial Instruments - Notes Narrative (Details) - USD ($) | May 18, 2021 | May 06, 2021 | Apr. 06, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Notes payable | $ 5,436,000,000 | $ 3,860,000,000 | |||||
Senior notes | $ 1,450,000,000 | ||||||
Repayments of long-term debt | $ 3,042,000,000 | $ 3,879,000,000 | |||||
5.125% due 2023 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 1,000,000,000 | ||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | |||
Debt instrument, redemption price percentage | 100.00% | ||||||
Repayments of long-term debt | $ 1,000,000,000 | ||||||
5.25% due April 2031 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 550,000,000 | ||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | ||||
Debt instrument, maturity date | Apr. 30, 2031 | ||||||
Notes sold, percentage of principle amount | 100.00% | ||||||
Basis spread | 0.50% | ||||||
5.25% due April 2031 | Senior Notes | Debt Instrument, Redemption, Prior to January 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5.25% due April 2031 | Senior Notes | Debt Instrument, Redemption, After to January 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5.25% due July 2031 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 600,000,000 | ||||||
Interest rate, stated percentage | 5.25% | 5.25% | 5.25% | ||||
Debt instrument, maturity date | Jul. 15, 2031 | ||||||
Notes sold, percentage of principle amount | 100.00% | ||||||
Basis spread | 0.50% | ||||||
5.25% due July 2031 | Senior Notes | Debt Instrument, Redemption, Prior to April 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5.25% due July 2031 | Senior Notes | Debt Instrument, Redemption, After to April 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5.625% due 2033 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 450,000,000 | ||||||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | ||||
Debt instrument, maturity date | Apr. 30, 2033 | ||||||
Notes sold, percentage of principle amount | 100.00% | ||||||
Basis spread | 0.50% | ||||||
5.625% due 2033 | Senior Notes | Debt Instrument, Redemption, Prior to January 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5.625% due 2033 | Senior Notes | Debt Instrument, Redemption, After to January 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5% due 2029 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 850,000,000 | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | ||||
Debt instrument, maturity date | Jul. 15, 2029 | ||||||
Notes sold, percentage of principle amount | 100.00% | ||||||
Basis spread | 0.50% | ||||||
5% due 2029 | Senior Notes | Debt Instrument, Redemption, Prior to April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
5% due 2029 | Senior Notes | Debt Instrument, Redemption, After to April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
7.625% due 2027 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 117,000,000 | ||||||
Interest rate, stated percentage | 7.625% | ||||||
Debt instrument, maturity date | Mar. 15, 2027 | ||||||
Debt extinguishment costs related to remaining unamortized debt issuance costs | $ 19,000,000 |
Financing Arrangements and De_8
Financing Arrangements and Derivative Financial Instruments - Credit Facilities Narrative (Details) | Jun. 07, 2021USD ($) | Mar. 27, 2019EUR (€) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Oct. 18, 2021EUR (€) | Jul. 02, 2021USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020EUR (€) |
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 11,951,000,000 | |||||||
Increase in value of principal trademarks | 400,000,000 | |||||||
Line of credit facility, maximum borrowing capacity inputs, increase based on value of cash | 275,000,000 | |||||||
Notes payable and overdrafts | 459,000,000 | $ 406,000,000 | ||||||
Long term debt and finance leases due within one year | 535,000,000 | 152,000,000 | ||||||
Credit arrangements, unused amount | 4,112,000,000 | |||||||
Accounts Receivable Factoring Facilities | Secured Debt | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Off-balance sheet accounts receivable securitization | 518,000,000 | 451,000,000 | ||||||
Chinese credit facilities | Foreign Line of Credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Notes payable and overdrafts | 96,000,000 | 163,000,000 | ||||||
Long term debt and finance leases due within one year | 90,000,000 | 13,000,000 | ||||||
Chinese credit facilities | Secured Debt | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 931,000,000 | 981,000,000 | ||||||
Line of credit facility, amount outstanding | 410,000,000 | 375,000,000 | ||||||
Credit arrangements, unused amount | 89,000,000 | 99,000,000 | ||||||
Asia Credit Facilities Member | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Credit arrangements, unused amount | 29,000,000 | |||||||
Line of Credit | First lien revolving credit facility due 2025 | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | |||||||
Line of Credit | First lien revolving credit facility due 2026 | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 0.50% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Base Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.25% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 2,750,000,000 | |||||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | $ 2,750,000,000 | 250,000,000 | ||||||
Line of credit facility, borrowing base amount below stated amount | 423,000,000 | |||||||
Line of credit facility, amount outstanding | 0 | 0 | ||||||
Letters of credit, amount outstanding | 19,000,000 | 11,000,000 | ||||||
Available cash plus availability under facility | $ 750,000,000 | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.25% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread on reference rate | 1.00% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.50% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | Base Rate | Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 0.25% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | Base Rate | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 0.50% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | Overnight Bank Funding Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread on reference rate | 0.50% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Revolving Credit Facility | Commitment Fee Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Annual commitment fee percentage on undrawn amounts | 0.25% | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Letter of Credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||
Line of Credit | First lien revolving credit facility due 2026 | Bridge Loan | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 2.00% | |||||||
Required total leverage ratio | 125 | 125 | ||||||
Optional reduction of basis spreads | 0.25% | |||||||
Long-term debt, before deferred financing fees | $ 400,000,000 | 400,000,000 | ||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.00% | |||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | Base Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.00% | |||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | Federal Funds Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 0.50% | |||||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, current borrowing capacity | $ 246,000,000 | 291,000,000 | € 207,000,000 | € 237,000,000 | ||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Scenario Forecast | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | € 280,000,000 | |||||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | 30,000,000 | |||||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | € 450,000,000 | |||||||
Line of Credit | European Revolving Credit Facility [Member] | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | € 800,000,000 | |||||||
Letters of credit, amount outstanding | 0 | 0 | ||||||
Annual commitment fee percentage on undrawn amounts | 0.25% | |||||||
Line of Credit | European Revolving Credit Facility [Member] | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.50% | |||||||
Line of Credit | European Revolving Credit Facility [Member] | Revolving Credit Facility | European Interbank Offer Rate (Euribor) | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread | 1.50% | |||||||
Line of Credit | European Revolving Credit Facility [Member] | Letter of Credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | € 75,000,000 | |||||||
Line of Credit | European Revolving Credit Facility [Member] | Bridge Loan | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | 175,000,000 | |||||||
Line of Credit | European Revolving Credit Facility [Member] | German Tranche | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | 180,000,000 | |||||||
Line of Credit | European Revolving Credit Facility [Member] | All-Borrower Tranche | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | € | € 620,000,000 | |||||||
Line of Credit | Mexican Credit Facilities | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, current borrowing capacity | 200,000,000 | 200,000,000 | ||||||
Amount utilized under facility | 200,000,000 | 152,000,000 | ||||||
Line of Credit | Chinese credit facilities | Foreign Line of Credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Long-term debt, before deferred financing fees | 314,000,000 | 212,000,000 | ||||||
Notes payable and overdrafts | 96,000,000 | 163,000,000 | ||||||
Long term debt and finance leases due within one year | $ 90,000,000 | $ 13,000,000 | ||||||
Subsequent Event | Line of Credit | First lien revolving credit facility due 2025 | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 2,750,000,000 |
Financing Arrangements and De_9
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Not Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, notional amount | $ 1,335 | $ 1,335 | $ 1,664 | ||
Foreign currency derivatives, net transaction gains | (14) | $ (41) | 41 | $ (3) | |
Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, notional amount | 48 | 48 | 50 | ||
Accounts receivable | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value - asset, not designated as hedging instrument | 21 | 21 | 1 | ||
Other Current Liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value - liability, not designated as hedging instrument | (4) | (4) | (27) | ||
Fair value - liability, designated as hedging instrument | $ (2) | $ (2) | $ (7) |
Financing Arrangements and D_10
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss (''AOCL'') | $ (1) | $ (3) | $ 0 | $ 20 |
Reclassification adjustment for amounts recognized in Cost of Goods Sold (''CGS'') | $ 0 | $ (4) | (2) | $ (8) |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investments | $ 20 | $ 11 |
Foreign Exchange Contracts | 21 | 1 |
Total Assets at Fair Value | 41 | 12 |
Liabilities: | ||
Foreign Exchange Contracts | 6 | 34 |
Total Liabilities at Fair Value | 6 | 34 |
Supplemental Fair Value Information | ||
Carrying amount — liability | 7,254 | 5,334 |
Notes Payable and Overdrafts | 459 | 406 |
Fixed Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 5,632 | 4,094 |
Fair value — liability | 5,924 | 4,283 |
Notes Payable and Overdrafts | 282 | 227 |
Variable Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 1,622 | 1,240 |
Fair value — liability | 1,617 | 1,197 |
Notes Payable and Overdrafts | 177 | 179 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 20 | 11 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 20 | 11 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Supplemental Fair Value Information | ||
Fair value — liability | 6,070 | 4,391 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 21 | 1 |
Total Assets at Fair Value | 21 | 1 |
Liabilities: | ||
Foreign Exchange Contracts | 6 | 34 |
Total Liabilities at Fair Value | 6 | 34 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Pension, Savings and Other Po_3
Pension, Savings and Other Postretirement Benefit Plans - Defined Benefit Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Type [Extensible List] | Pension Plan | Pension Plan | Pension Plan | Pension Plan |
Service cost | $ 2 | $ 1 | $ 3 | $ 2 |
Interest cost | 22 | 32 | 42 | 65 |
Expected return on plan assets | (46) | (48) | (88) | (97) |
Amortization of net losses | 26 | 28 | 54 | 55 |
Net periodic pension cost | 4 | 13 | 11 | 25 |
Net curtailments/settlements/termination benefits | 19 | 6 | 19 | 7 |
Total defined benefit pension cost | $ 23 | $ 19 | $ 30 | $ 32 |
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Type [Extensible List] | Pension Plan | Pension Plan | Pension Plan | Pension Plan |
Service cost | $ 8 | $ 7 | $ 15 | $ 14 |
Interest cost | 11 | 14 | 22 | 28 |
Expected return on plan assets | (12) | (13) | (22) | (27) |
Amortization of prior service cost | 1 | 0 | 1 | 1 |
Amortization of net losses | 9 | 9 | 17 | 19 |
Net periodic pension cost | 17 | 17 | 33 | 35 |
Net curtailments/settlements/termination benefits | 0 | 0 | 0 | 1 |
Total defined benefit pension cost | $ 17 | $ 17 | $ 33 | $ 36 |
Pension, Savings and Other Po_4
Pension, Savings and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Postretirement benefits expense (credit) | $ 1 | $ 2 | $ 3 | $ (1) |
Defined contribution plans, contribution expenses | 27 | 20 | 55 | 50 |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan net funded (unfunded) status | 12 | 12 | ||
Other post retirement plan net unfunded status | (215) | (215) | ||
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Define benefit plan net funded (unfunded) status | (62) | (62) | ||
Contributions to pension plans | 5 | 7 | ||
Pension Plan | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | 50 | 50 | ||
Pension Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | $ 75 | 75 | ||
Pension Plan | Other (Income) Expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlement charges | $ 1 | $ 19 | 3 | |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment credit (charge) | 4 | |||
Other Postretirement Benefits Plan | Other (Income) Expense | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlement and termination benefits | $ 5 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7 | $ 8 | $ 11 | $ 14 |
Unearned compensation cost related to the unvested portion of all stock-based awards | $ 26 | $ 26 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 0.6 | |||
Weighted average fair value per share granted (dollars per share) | $ 16.34 | |||
Performance Share Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 0.1 | |||
Weighted average fair value per share granted (dollars per share) | $ 19.21 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, zł in Millions, $ in Millions | May 28, 2020Employee | Jun. 30, 2021USD ($)EmployeeClaim | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Jun. 30, 2021EUR (€)Claim | Dec. 31, 2019USD ($) | Dec. 31, 2019PLN (zł) | Dec. 31, 2017USD ($) | Dec. 31, 2017PLN (zł) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Liability for anticipated environmental matters | $ 71 | $ 64 | ||||||||
Liability for anticipated environment matters, current | 21 | 16 | ||||||||
Workers' compensation liability | 202 | 196 | ||||||||
Workers' compensation liability, current | 34 | 29 | ||||||||
Potential workers' compensation liability in excess of recorded amount | 25 | |||||||||
Off-balance sheet financial guarantees and other commitments | 85 | 73 | ||||||||
Accounts receivable | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Indemnification asset | 1 | |||||||||
Other Assets | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Indemnification asset | 23 | |||||||||
General Product Liability | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Product liability and other tort claims liability | 395 | 285 | ||||||||
General Product Liability | Other Current Liabilities | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Product liability and other tort claims liability | 56 | 38 | ||||||||
Asbestos Related Product Liability | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Product liability and other tort claims liability | $ 147 | 149 | ||||||||
Asbestos claims dismissed to date (in claims) | Claim | 154,900 | 154,900 | ||||||||
Accrued asbestos-related liability and gross payments to date | $ 568 | 563 | ||||||||
Product liability contingency, evaluation period | 10 years | |||||||||
Asbestos claims receivable | $ 88 | 90 | ||||||||
Expected percentage of asbestos claim related losses recoverable through insurance | 60.00% | 60.00% | ||||||||
Asbestos claims receivable, current | $ 13 | 13 | ||||||||
Limits of excess insurance policies | 550 | |||||||||
Amiens Labor Claims | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, number of plaintiffs | Employee | 790 | 850 | ||||||||
Contingent loss | $ 166 | € 140 | ||||||||
Loss contingency, accrual | $ 30 | € 27 | ||||||||
Unfavorable Regulatory Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Guarantee issued | $ 48 | zł 181 | $ 43 | zł 165 | ||||||
Workers' Compensation Claims | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Guarantee issued | $ 23 | $ 46 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)Claim | Dec. 31, 2020USD ($)Claim | |
Number of claims filed | ||
Pending claims, beginning of period | 38,700 | 39,600 |
New claims filed | 500 | 1,100 |
Claims settled/dismissed | (700) | (2,000) |
Pending claims, end of period | 38,500 | 38,700 |
Payments | $ | $ 7 | $ 13 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 07, 2021 | |
Class of Stock [Line Items] | |||
Common stock cash dividends paid | $ 0 | $ 37 | |
Dividends, share-based compensation | 1 | ||
Cooper Tire Stockholders | |||
Class of Stock [Line Items] | |||
Common Stock, shares issued (in shares) | 46,060,349 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Common stock cash dividends paid | $ 37 | ||
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation | |||
Class of Stock [Line Items] | |||
Common stock repurchased (in shares) | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCL, After Tax and Minority Interest (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 3,259 | $ 4,545 |
Ending balance | 4,411 | 3,013 |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,284) | (1,156) |
Other comprehensive income (loss) before reclassifications | (2) | (223) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (1,282) | (1,379) |
Unrealized Gains (Losses) from Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | |
Other comprehensive income (loss) before reclassifications | 8 | |
Ending balance | 8 | |
Unrecognized Net Actuarial Losses and Prior Service Costs | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (2,856) | (2,983) |
Other comprehensive income (loss) before reclassifications | 16 | (9) |
Amounts reclassified from accumulated other comprehensive loss | 68 | 55 |
Ending balance | (2,772) | (2,937) |
Deferred Derivative Gains (Losses) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 5 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | 19 |
Amounts reclassified from accumulated other comprehensive loss | (2) | (8) |
Ending balance | 3 | 14 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (4,135) | (4,136) |
Other comprehensive income (loss) before reclassifications | 26 | (213) |
Amounts reclassified from accumulated other comprehensive loss | 66 | 47 |
Ending balance | $ (4,043) | $ (4,302) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Reclassifications (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | $ 30,000,000 | $ 34,000,000 | $ 64,000,000 | $ 61,000,000 |
United States and Foreign Taxes | (27,000,000) | 186,000,000 | (42,000,000) | (63,000,000) |
Goodyear Net Income (Loss) | 67,000,000 | (696,000,000) | 79,000,000 | (1,315,000,000) |
Cost of Goods Sold | (3,078,000,000) | (2,216,000,000) | (5,829,000,000) | (4,768,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Goodyear Net Income (Loss) | 41,000,000 | 25,000,000 | 66,000,000 | 47,000,000 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 34,000,000 | 36,000,000 | 70,000,000 | 72,000,000 |
Income (Loss) Attributable to Parent | 53,000,000 | 37,000,000 | 89,000,000 | 71,000,000 |
United States and Foreign Taxes | (12,000,000) | (8,000,000) | (21,000,000) | (16,000,000) |
Goodyear Net Income (Loss) | 41,000,000 | 29,000,000 | 68,000,000 | 55,000,000 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent, Due to Divestitures | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 19,000,000 | 1,000,000 | (19,000,000) | (1,000,000) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
United States and Foreign Taxes | 0 | 0 | 0 | 0 |
Goodyear Net Income (Loss) | 0 | (4,000,000) | 2,000,000 | (8,000,000) |
Cost of Goods Sold | $ 0 | $ (4,000,000) | $ 2,000,000 | $ (8,000,000) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss - Schedule of Comprehensive Income (Loss) Attributable to Minority Shareholders (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||||
Net Income (Loss) Attributable to Minority Shareholders | $ 4 | $ (7) | $ 10 | $ (5) |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation | 1 | 0 | (8) | (9) |
Comprehensive Income (Loss) Attributable to Minority Shareholders | $ 3 | $ (7) | $ 2 | $ (14) |