Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Quarterly Report | true |
Document Transition Report | false |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2019 |
Entity File Number | 1-1927 |
Entity Registrant Name | GOODYEAR TIRE & RUBBER CO /OH/ |
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, Shares Outstanding | 232,563,509 |
Entity Central Index Key | 0000042582 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||||
Net Sales (Note 2) | $ 3,802 | $ 3,928 | $ 11,032 | $ 11,599 | ||
Cost of Goods Sold | 2,965 | 3,028 | 8,699 | 8,953 | ||
Selling, Administrative and General Expense | 572 | 553 | 1,705 | 1,732 | ||
Rationalizations (Note 3) | 21 | 5 | 128 | 40 | ||
Interest Expense | 88 | 82 | 261 | 236 | ||
Other (Income) Expense (Note 4) | 35 | (253) | 74 | (171) | ||
Income before Income Taxes | 121 | 513 | 165 | 809 | ||
United States and Foreign Tax Expense (Note 5) | 31 | 159 | 63 | 211 | ||
Net Income | 90 | 354 | $ 12 | $ 244 | 102 | 598 |
Less: Minority Shareholders’ Net Income | 2 | 3 | 21 | 15 | ||
Goodyear Net Income | $ 88 | $ 351 | $ 81 | $ 583 | ||
Goodyear Net Income — Per Share of Common Stock | ||||||
Basic (dollars per share) | $ 0.38 | $ 1.49 | $ 0.35 | $ 2.45 | ||
Weighted Average Shares Outstanding - Basic (Note 6) (shares) | 233 | 236 | 233 | 238 | ||
Diluted (dollars per share) | $ 0.38 | $ 1.48 | $ 0.35 | $ 2.42 | ||
Weighted Average Shares Outstanding - Diluted (Note 6) (shares) | 234 | 238 | 234 | 241 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net Income | $ 90 | $ 354 | $ 12 | $ 244 | $ 102 | $ 598 |
Other Comprehensive Income (Loss): | ||||||
Foreign currency translation, net of tax of ($1) and $3 in 2019 ($0 and ($8) in 2018) | (96) | (86) | 14 | (149) | (82) | (235) |
Defined benefit plans: | ||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 and $24 in 2019 ($8 and $24 in 2018) | 26 | 26 | 52 | 53 | 78 | 79 |
(Increase)/Decrease in net actuarial losses, net of tax of ($3) and $1 in 2019 (($4) and $2 in 2018) | (11) | (20) | 13 | 19 | 2 | (1) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $0 and $0 in 2019 ($2 and $4 in 2018) | 0 | 9 | 4 | 0 | 13 | |
Prior service (cost) credit from plan amendments, net of tax of $0 and $0 in 2019 ($0 and $0 in 2018) | 0 | 0 | (1) | (1) | 0 | |
Deferred derivative gains (losses), net of tax of $4 and $4 in 2019 ($1 and $3 in 2018) | 10 | 0 | 4 | 6 | 14 | 6 |
Reclassification adjustment for amounts recognized in income, net of tax of $0 and ($1) in 2019 ($0 and $2 in 2018) | (3) | 1 | (5) | 5 | (8) | 6 |
Other Comprehensive Income (Loss) | (74) | (70) | 77 | (62) | 3 | (132) |
Comprehensive Income (Loss) | 16 | 284 | $ 89 | $ 182 | 105 | 466 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (1) | (6) | 21 | (10) | ||
Goodyear Comprehensive Income | $ 17 | $ 290 | $ 84 | $ 476 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income (Loss): | ||||||
Foreign currency translation, tax | $ (1) | $ 0 | $ 4 | $ (8) | $ 3 | $ (8) |
Defined benefit plans: | ||||||
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax | 8 | 8 | 16 | 16 | 24 | 24 |
(Increase)/Decrease in net actuarial losses, tax | (3) | (4) | 4 | 6 | 1 | 2 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax | 0 | 2 | 2 | 0 | 4 | |
Prior service (cost) credit from plan amendments, tax | 0 | 0 | 0 | 0 | 0 | |
Deferred derivative gains (losses), tax | 4 | 1 | 0 | 2 | 4 | 3 |
Reclassification adjustment for amounts recognized in income, tax | $ 0 | $ 0 | $ (1) | $ 2 | $ (1) | $ 2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and Cash Equivalents | $ 868 | $ 801 |
Accounts Receivable, less Allowance — $114 ($113 in 2018) | 2,748 | 2,030 |
Inventories: | ||
Raw Materials | 546 | 569 |
Work in Process | 155 | 152 |
Finished Products | 2,264 | 2,135 |
Total Inventory | 2,965 | 2,856 |
Prepaid Expenses and Other Current Assets | 280 | 238 |
Total Current Assets | 6,861 | 5,925 |
Goodwill | 550 | 569 |
Intangible Assets | 134 | 136 |
Deferred Income Taxes (Note 5) | 1,839 | 1,847 |
Other Assets | 1,055 | 1,136 |
Operating Lease Right-of-Use Assets (Note 8) | 828 | 0 |
Property, Plant and Equipment, less Accumulated Depreciation — $10,457 ($10,161 in 2018) | 7,032 | 7,259 |
Total Assets | 18,299 | 16,872 |
Current Liabilities: | ||
Accounts Payable — Trade | 2,651 | 2,920 |
Compensation and Benefits (Notes 11 and 12) | 539 | 471 |
Other Current Liabilities | 690 | 737 |
Notes Payable and Overdrafts (Note 9) | 486 | 410 |
Operating Lease Liabilities due Within One Year (Note 8) | 197 | 0 |
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 610 | 243 |
Total Current Liabilities | 5,173 | 4,781 |
Operating Lease Liabilities (Note 8) | 642 | 0 |
Long Term Debt and Finance Leases (Notes 8 and 9) | 5,580 | 5,110 |
Compensation and Benefits (Notes 11 and 12) | 1,244 | 1,345 |
Deferred Income Taxes (Note 5) | 91 | 95 |
Other Long Term Liabilities | 534 | 471 |
Total Liabilities | 13,264 | 11,802 |
Commitments and Contingent Liabilities (Note 13) | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 233 and 232 million in 2019 and 2018 | 233 | 232 |
Capital Surplus | 2,132 | 2,111 |
Retained Earnings | 6,543 | 6,597 |
Accumulated Other Comprehensive Loss | (4,073) | (4,076) |
Goodyear Shareholders’ Equity | 4,835 | 4,864 |
Minority Shareholders’ Equity — Nonredeemable | 200 | 206 |
Total Shareholders’ Equity | 5,035 | 5,070 |
Total Liabilities and Shareholders’ Equity | $ 18,299 | $ 16,872 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for Accounts Receivable | $ 114 | $ 113 |
Accumulated Depreciation | $ 10,457 | $ 10,161 |
Goodyear Shareholders’ Equity: | ||
Common Stock, par value (dollars per share) | $ 0 | $ 0 |
Common Stock, authorized (shares) | 450,000,000 | 450,000,000 |
Common Stock, outstanding (shares) | 233,000,000 | 232,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Goodyear Shareholders’ Equity | Minority Shareholders' Equity - Non-Redeemable |
Balance at beginning of period (shares) at Dec. 31, 2017 | 240,154,602 | ||||||
Balance at beginning of period at Dec. 31, 2017 | $ 4,850 | $ 240 | $ 2,295 | $ 6,044 | $ (3,976) | $ 4,603 | $ 247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 244 | 232 | 232 | 12 | |||
Foreign currency translation, net of tax | (149) | (133) | (133) | (16) | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 53 | 53 | 53 | ||||
(Increase) decrease in net actuarial losses, net of tax | 19 | 19 | 19 | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax | 4 | 4 | 4 | ||||
Deferred derivative gains, net of tax | 6 | 6 | 6 | ||||
Reclassification adjustment for amounts recognized in income | 5 | 5 | 5 | ||||
Other Comprehensive Income (Loss) | (62) | (46) | (16) | ||||
Comprehensive Income (Loss) | 182 | 186 | (4) | ||||
Stock-based compensation plans | 8 | 8 | 8 | ||||
Repurchase of common stock (in shares) | (3,851,092) | ||||||
Repurchase of common stock | (100) | $ (4) | (96) | (100) | |||
Dividends declared | (74) | (67) | (67) | (7) | |||
Common stock issued from treasury (in shares) | 712,235 | ||||||
Common stock issued from treasury | 3 | $ 1 | 2 | 3 | |||
Purchase of minority shares | (24) | 5 | 5 | (29) | |||
Balance at end of period (shares) at Jun. 30, 2018 | 237,015,745 | ||||||
Balance at end of period at Jun. 30, 2018 | 4,844 | $ 237 | 2,214 | 6,208 | (4,022) | 4,637 | 207 |
Balance at beginning of period (shares) at Dec. 31, 2017 | 240,154,602 | ||||||
Balance at beginning of period at Dec. 31, 2017 | 4,850 | $ 240 | 2,295 | 6,044 | (3,976) | 4,603 | 247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 598 | ||||||
Foreign currency translation, net of tax | (235) | ||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 79 | ||||||
(Increase) decrease in net actuarial losses, net of tax | (1) | ||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax | 13 | ||||||
Prior service costs from plan amendments, net of tax | 0 | ||||||
Deferred derivative gains, net of tax | 6 | ||||||
Reclassification adjustment for amounts recognized in income | 6 | ||||||
Other Comprehensive Income (Loss) | (132) | ||||||
Comprehensive Income (Loss) | 466 | ||||||
Balance at end of period (shares) at Sep. 30, 2018 | 233,010,046 | ||||||
Balance at end of period at Sep. 30, 2018 | 5,000 | $ 233 | 2,125 | 6,525 | (4,083) | 4,800 | 200 |
Balance at beginning of period (shares) at Jun. 30, 2018 | 237,015,745 | ||||||
Balance at beginning of period at Jun. 30, 2018 | 4,844 | $ 237 | 2,214 | 6,208 | (4,022) | 4,637 | 207 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 354 | 351 | 351 | 3 | |||
Foreign currency translation, net of tax | (86) | (77) | (77) | (9) | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 26 | 26 | 26 | ||||
(Increase) decrease in net actuarial losses, net of tax | (20) | (20) | (20) | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax | 9 | 9 | 9 | ||||
Prior service costs from plan amendments, net of tax | 0 | ||||||
Deferred derivative gains, net of tax | 0 | 0 | 0 | ||||
Reclassification adjustment for amounts recognized in income | 1 | 1 | 1 | ||||
Other Comprehensive Income (Loss) | (70) | (61) | (9) | ||||
Comprehensive Income (Loss) | 284 | 290 | (6) | ||||
Stock-based compensation plans | 6 | 6 | 6 | ||||
Repurchase of common stock (in shares) | (4,188,492) | ||||||
Repurchase of common stock | (100) | $ (4) | (96) | (100) | |||
Dividends declared | (35) | (34) | (34) | (1) | |||
Common stock issued from treasury (in shares) | 182,793 | ||||||
Common stock issued from treasury | 1 | 1 | 1 | ||||
Balance at end of period (shares) at Sep. 30, 2018 | 233,010,046 | ||||||
Balance at end of period at Sep. 30, 2018 | $ 5,000 | $ 233 | 2,125 | 6,525 | (4,083) | 4,800 | 200 |
Balance at beginning of period (shares) at Dec. 31, 2018 | 232,000,000 | 232,171,043 | |||||
Balance at beginning of period at Dec. 31, 2018 | $ 5,070 | $ 232 | 2,111 | 6,597 | (4,076) | 4,864 | 206 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 12 | (7) | (7) | 19 | |||
Foreign currency translation, net of tax | 14 | 11 | 11 | 3 | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 52 | 52 | 52 | ||||
(Increase) decrease in net actuarial losses, net of tax | 13 | 13 | 13 | ||||
Prior service costs from plan amendments, net of tax | (1) | (1) | (1) | ||||
Deferred derivative gains, net of tax | 4 | 4 | 4 | ||||
Reclassification adjustment for amounts recognized in income | (5) | (5) | (5) | ||||
Other Comprehensive Income (Loss) | 77 | 74 | 3 | ||||
Comprehensive Income (Loss) | 89 | 67 | 22 | ||||
Stock-based compensation plans | 13 | 13 | 13 | ||||
Dividends declared | (79) | (75) | (75) | (4) | |||
Common stock issued from treasury (in shares) | 350,127 | ||||||
Common stock issued from treasury | $ 1 | (1) | |||||
Purchase of minority shares | (21) | 1 | 1 | (22) | |||
Balance at end of period (shares) at Jun. 30, 2019 | 232,521,170 | ||||||
Balance at end of period at Jun. 30, 2019 | $ 5,049 | $ 233 | 2,124 | 6,492 | (4,002) | 4,847 | 202 |
Balance at beginning of period (shares) at Dec. 31, 2018 | 232,000,000 | 232,171,043 | |||||
Balance at beginning of period at Dec. 31, 2018 | $ 5,070 | $ 232 | 2,111 | 6,597 | (4,076) | 4,864 | 206 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 102 | ||||||
Foreign currency translation, net of tax | (82) | ||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 78 | ||||||
(Increase) decrease in net actuarial losses, net of tax | 2 | ||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax | 0 | ||||||
Prior service costs from plan amendments, net of tax | (1) | ||||||
Deferred derivative gains, net of tax | 14 | ||||||
Reclassification adjustment for amounts recognized in income | (8) | ||||||
Other Comprehensive Income (Loss) | 3 | ||||||
Comprehensive Income (Loss) | $ 105 | ||||||
Balance at end of period (shares) at Sep. 30, 2019 | 233,000,000 | 232,563,509 | |||||
Balance at end of period at Sep. 30, 2019 | $ 5,035 | $ 233 | 2,132 | 6,543 | (4,073) | 4,835 | 200 |
Balance at beginning of period (shares) at Jun. 30, 2019 | 232,521,170 | ||||||
Balance at beginning of period at Jun. 30, 2019 | 5,049 | $ 233 | 2,124 | 6,492 | (4,002) | 4,847 | 202 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 90 | 88 | 88 | 2 | |||
Foreign currency translation, net of tax | (96) | (93) | (93) | (3) | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax | 26 | 26 | 26 | ||||
(Increase) decrease in net actuarial losses, net of tax | (11) | (11) | (11) | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax | 0 | ||||||
Prior service costs from plan amendments, net of tax | 0 | ||||||
Deferred derivative gains, net of tax | 10 | 10 | 10 | ||||
Reclassification adjustment for amounts recognized in income | (3) | (3) | (3) | ||||
Other Comprehensive Income (Loss) | (74) | (71) | (3) | ||||
Comprehensive Income (Loss) | 16 | 17 | (1) | ||||
Stock-based compensation plans | 8 | 8 | 8 | ||||
Dividends declared | (38) | (37) | (37) | (1) | |||
Common stock issued from treasury (in shares) | 42,339 | ||||||
Common stock issued from treasury | |||||||
Balance at end of period (shares) at Sep. 30, 2019 | 233,000,000 | 232,563,509 | |||||
Balance at end of period at Sep. 30, 2019 | $ 5,035 | $ 233 | $ 2,132 | $ 6,543 | $ (4,073) | $ 4,835 | $ 200 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Treasury shares (shares) | 45,899,918 | 45,453,381 | 45,942,257 | 41,447,682 | 45,899,918 | 45,453,381 | 46,292,384 | 38,308,825 |
Foreign currency translation, tax | $ (1) | $ 0 | $ 4 | $ (8) | $ 3 | $ (8) | ||
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax | 8 | 8 | 16 | 16 | 24 | 24 | ||
(Increase)/Decrease in net actuarial losses, tax | (3) | (4) | 4 | 6 | 1 | 2 | ||
Prior service (cost) credit from plan amendments, tax | 0 | 0 | 0 | 0 | 0 | |||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax | 0 | 2 | 2 | 0 | 4 | |||
Deferred derivative gains (losses), tax | 4 | 1 | 0 | 2 | 4 | 3 | ||
Reclassification adjustment for amounts recognized in income, tax | $ 0 | $ 0 | $ (1) | $ 2 | $ (1) | $ 2 | ||
Cash dividends declared (dollars per share) | $ 0.16 | $ 0.14 | $ 0.48 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 102 | $ 598 |
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 584 | 589 |
Amortization and Write-Off of Debt Issuance Costs | 12 | 11 |
Provision for Deferred Income Taxes | (33) | 59 |
Net Pension Curtailments and Settlements | 1 | 13 |
Net Rationalization Charges (Note 3) | 128 | 40 |
Rationalization Payments | (46) | (151) |
Net (Gains) Losses on Asset Sales (Note 4) | (5) | (1) |
Gain on TireHub Transaction, Net of Transaction Costs (Note 4) | 0 | (273) |
Operating Lease Expense (Note 8) | 221 | |
Operating Lease Payments (Note 8) | (201) | |
Pension Contributions and Direct Payments | (51) | (56) |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | ||
Accounts Receivable | (785) | (807) |
Inventories | (166) | (254) |
Accounts Payable — Trade | (110) | 235 |
Compensation and Benefits | 129 | 7 |
Other Current Liabilities | 16 | (119) |
Other Assets and Liabilities | 65 | 85 |
Total Cash Flows from Operating Activities | (139) | (24) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (561) | (615) |
Asset Dispositions (Note 4) | 2 | 2 |
Short Term Securities Acquired | (73) | (61) |
Short Term Securities Redeemed | 67 | 61 |
Notes Receivable | (7) | (50) |
Other Transactions | (12) | (1) |
Total Cash Flows from Investing Activities | (584) | (664) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 1,451 | 1,458 |
Short Term Debt and Overdrafts Paid | (1,357) | (1,267) |
Long Term Debt Incurred | 4,797 | 4,704 |
Long Term Debt Paid | (3,941) | (3,992) |
Common Stock Issued | 1 | 4 |
Common Stock Repurchased (Note 14) | 0 | (200) |
Common Stock Dividends Paid (Note 14) | (111) | (100) |
Transactions with Minority Interests in Subsidiaries | (26) | (27) |
Debt Related Costs and Other Transactions | (25) | (3) |
Total Cash Flows from Financing Activities | 789 | 577 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (13) | (37) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 53 | (148) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 873 | 1,110 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 926 | $ 962 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | 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 rules and regulations and generally accepted accounting principles in the United States of America ("US 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 US 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, 2018 (the “ 2018 Form 10-K”). Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2019 . Recently Adopted Accounting Standards Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. We elected the optional transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. We also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard, and we have elected to not evaluate land easements that existed as of, or expired before, adoption of the new standard. In addition, we did not reassess whether any contracts entered into prior to adoption are leases. The adoption of this standards update had a material impact on our Consolidated Balance Sheets and related disclosures. In addition to recognizing right-of-use assets and lease liabilities for our operating leases, we recorded $23 million as a cumulative effect adjustment to decrease Retained Earnings as a result of using the modified retrospective adoption approach. The adoption of this standards update did not have a material impact on our results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The adoption of this standards update did not have a material impact on our consolidated financial statements. Effective January 1, 2019, we adopted an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) ("AOCL") to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States. We have elected not to reclassify the income tax effects of the Tax Act from AOCL to Retained Earnings. As such, the adoption of this standards update did not impact our consolidated financial statements. Our policy is to utilize an item-by-item approach to release stranded income tax effects from AOCL. Under this approach, the stranded income tax effects are released from AOCL when the related item ceases to exist. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with new guidance requiring a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize as an asset. The standards update is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to have a material impact on our consolidated financial statements. 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 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: September 30, (In millions) 2019 2018 Cash and Cash Equivalents $ 868 $ 896 Restricted Cash 58 66 Total Cash, Cash Equivalents and Restricted Cash $ 926 $ 962 Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. Reclassifications and Adjustments |
Net Sales
Net Sales | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
NET SALES | NET SALES The following tables show disaggregated net sales from contracts with customers by major source: Three Months Ended September 30, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,624 $ 1,109 $ 500 $ 3,233 Other tire and related sales 185 82 25 292 Retail services and service related sales 136 12 23 171 Chemical sales 99 — — 99 Other 5 2 — 7 Net Sales by reportable segment $ 2,049 $ 1,205 $ 548 $ 3,802 Three Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,638 $ 1,197 $ 479 $ 3,314 Other tire and related sales 175 86 32 293 Retail services and service related sales 145 6 19 170 Chemical sales 146 — — 146 Other 3 1 1 5 Net Sales by reportable segment $ 2,107 $ 1,290 $ 531 $ 3,928 Nine Months Ended September 30, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,658 $ 3,264 $ 1,425 $ 9,347 Other tire and related sales 496 272 87 855 Retail services and service related sales 406 27 55 488 Chemical sales 322 — — 322 Other 14 4 2 20 Net Sales by reportable segment $ 5,896 $ 3,567 $ 1,569 $ 11,032 Nine Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,693 $ 3,565 $ 1,508 $ 9,766 Other tire and related sales 488 282 94 864 Retail services and service related sales 426 28 60 514 Chemical sales 437 — — 437 Other 10 5 3 18 Net Sales by reportable segment $ 6,054 $ 3,880 $ 1,665 $ 11,599 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, motorcycle and all-terrain vehicle 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, such as tire rims, tire valves and valve stems. 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 $32 million and $39 million at September 30, 2019 and December 31, 2018 , respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $30 million and $39 million at September 30, 2019 and December 31, 2018, 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 nine months ended September 30, 2019 : (In millions) Balance at December 31, 2018 $ 78 Revenue deferred during period 112 Revenue recognized during period (128 ) Impact of foreign currency translation — Balance at September 30, 2019 $ 62 |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS | 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 associate headcount. The following table shows the roll-forward of our liability between periods: Associate- (In millions) Related Costs Other Exit Costs Total Balance at December 31, 2018 $ 80 $ 1 $ 81 2019 Charges 117 14 131 Incurred, including net Foreign Currency Translation of $(6) million and $0 million, respectively (38 ) (14 ) (52 ) Reversed to the Statement of Operations (3 ) — (3 ) Balance at September 30, 2019 $ 156 $ 1 $ 157 On March 18, 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. The plan is in furtherance of our strategy to strengthen the competitiveness of our manufacturing footprint and increase production of premium, large-rim diameter consumer tires. The plan will result in approximately 1,100 job reductions as a result of changes to the layout of the plants, efficiency gains from new equipment and a reduction in the production of tires for declining, less profitable market segments. We have $96 million accrued related to this plan at September 30, 2019 , which is expected to be substantially paid through 2023. On September 16, 2019, we approved a plan primarily to offer voluntary buy-outs to certain associates at our tire manufacturing facility in Gadsden, Alabama, in furtherance of our strategy to strengthen the competitiveness of our manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. Eligible associates must submit applications for buy-outs between October 1, 2019 and November 1, 2019 and can revoke any submitted applications up to the November 1, 2019 deadline. As of September 30, 2019 , we have $6 million accrued related to this plan. The total amount expected to be incurred in connection with this plan is dependent upon the number of eligible associates who apply for buy-outs and our acceptance of those applications. As such, we cannot currently estimate the amount of the total cost, the amount for each major type of cost, or the amount of total future cash expenditures expected to be incurred in connection with this plan. The remainder of the accrual balance at September 30, 2019 is expected to be substantially utilized in the next 12 months and includes $27 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $18 million related to global plans to reduce Selling, Administrative and General Expense ("SAG") headcount and $5 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas. The following table shows net rationalization charges included in Income before Income Taxes: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Current Year Plans Associate Severance and Other Related Costs $ 17 $ — $ 115 $ 32 Benefit Plan Termination Benefits — — 1 — Other Exit Costs 3 1 7 1 Current Year Plans - Net Charges $ 20 $ 1 $ 123 $ 33 Prior Year Plans Associate Severance and Other Related Costs $ (2 ) $ 1 $ (2 ) $ (6 ) Benefit Plan Termination Benefits 1 — — — Other Exit Costs 2 3 7 13 Prior Year Plans - Net Charges 1 4 5 7 Total Net Charges $ 21 $ 5 $ 128 $ 40 Asset Write-off and Accelerated Depreciation Charges $ 1 $ — $ 2 $ 2 Substantially all of the new charges for the three and nine months ended September 30, 2019 and 2018 related to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2019 include $11 million and $105 million , respectively, related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA and $9 million and $18 million , respectively, related to plans to reduce manufacturing headcount and improve operating efficiency in Americas. Net current year plan charges for the three and nine months ended September 30, 2018 include $1 million and $27 million , respectively, related to a global plan to reduce SAG headcount. Net current year plan charges for the nine months ended September 30, 2018 also include charges of $6 million related to a plan to improve operating efficiency in EMEA. Net prior year plan charges for the three and nine months ended September 30, 2019 were $1 million and $5 million , respectively, primarily related to EMEA manufacturing plans. Net prior year plan charges for the nine months ended September 30, 2019 also include reversals of $3 million for actions no longer needed for their originally intended purposes. Net prior year plan charges for the three and nine months ended September 30, 2018 include $2 million and $11 million , respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany and $2 million and $4 million , respectively, related to a plan to reduce manufacturing headcount in EMEA. Net prior year plan charges for the nine months ended September 30, 2018 also include $3 million related to a global plan to reduce SAG headcount. Net prior year plan charges for the three and nine months ended September 30, 2018 include reversals of $1 million and $13 million , respectively, for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $720 million in charges incurred prior to 2019 and approximately $110 million is expected to be incurred in future periods. Approximately 1,200 associates will be released under new plans initiated in 2019, of which approximately 250 were released through September 30, 2019 . In the first nine months of 2019 , approximately 300 associates were released under plans initiated in prior years. Approximately 1,200 associates remain to be released under all ongoing rationalization plans. Approximately 850 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note to the Consolidated Financial Statements No. 13, Commitments and Contingent Liabilities, in this Form 10-Q. |
Other (Income) Expense
Other (Income) Expense | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE | OTHER (INCOME) EXPENSE Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Gain on TireHub transaction, net of transaction costs $ — $ (287 ) $ — $ (273 ) Non-service related pension and other postretirement benefits cost 28 33 85 92 Financing fees and financial instruments expense 8 9 26 27 Net foreign currency exchange (gains) losses 3 (2 ) (15 ) (7 ) General and product liability expense - discontinued products 2 5 10 3 Royalty income (5 ) (5 ) (15 ) (15 ) Net (gains) losses on asset sales 1 (1 ) (5 ) (1 ) Interest income (5 ) (6 ) (13 ) (12 ) Miscellaneous expense 3 1 1 15 $ 35 $ (253 ) $ 74 $ (171 ) Gain on TireHub transaction represents the difference between the fair value of the equity interest received and the net book value of the assets and liabilities contributed in connection with the formation of TireHub, a distribution joint venture in the United States. For the three and nine months ended September 30, 2018, we recognized a gain of $286 million and incurred transaction costs of ($1) million and $13 million , respectively. 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. Non-service related pension and other postretirement benefits cost for the nine months ended September 30, 2018 includes expense of $9 million related to the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory. For further information, refer to Note to the Consolidated Financial Statements No. 11, Pension, Savings and Other Postretirement Benefit Plans, in this Form 10-Q. Miscellaneous expense for the three and nine months ended September 30, 2019 includes expenses of $5 million incurred by the Company as a direct result of flooding at our Beaumont, Texas chemical facility during the third quarter of 2019. Miscellaneous expense for the three and nine months ended September 30, 2018 includes continuing repair expenses of $2 million and $12 million , respectively, incurred by the Company as a direct result of hurricanes Harvey and Irma during the third quarter of 2017. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the third quarter of 2019 , we recorded tax expense of $31 million on income before income taxes of $121 million . For the first nine months of 2019, we recorded tax expense of $63 million on income before income taxes of $165 million . Income tax expense for the three months ended September 30, 2019 was favorably impacted by $6 million of various discrete tax adjustments. Income tax expense for the nine months ended September 30, 2019 includes net discrete charges of $7 million , primarily related to a charge of $6 million to adjust our deferred tax assets in Luxembourg for a newly enacted tax rate during the second quarter of 2019. In the third quarter of 2018 , we recorded tax expense of $159 million on income before income taxes of $513 million . For the first nine months of 2018 , we recorded tax expense of $211 million on income before income taxes of $809 million . Income tax expense for the three and nine months ended September 30, 2018 includes net discrete charges of $31 million and $10 million , respectively. Net discrete tax charges for the three months ended September 30, 2018 include a charge of $25 million due to proposed regulations released in the third quarter of 2018 that required the reversal of the benefit for foreign tax credits on dividends, primarily from subsidiaries in Japan and Singapore, to the United States recorded in the second quarter of 2018. Net discrete tax charges for the three and nine months ended September 30, 2018 also include charges of $11 million and $14 million , respectively, to adjust our provisional tax obligation for the one-time transition tax imposed by the Tax Act, and benefits of $5 million and $4 million , respectively, for various other discrete tax adjustments. We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rates and the U.S. statutory rate of 21% for the three and nine months ended September 30, 2019 and September 30, 2018 primarily relates to the discrete items noted above and an overall higher effective tax rate in the foreign jurisdictions in which we operate, partially offset by a benefit from our foreign derived intangible income deduction provided for in the Tax Act. At September 30, 2019 , our valuation allowance on certain of our U.S. federal, state and local deferred tax assets was $114 million , primarily related to deferred tax assets for foreign tax credits, and our valuation allowance on our foreign deferred tax assets was $226 million . At December 31, 2018, our valuation allowance on certain U.S. federal, state and local deferred tax assets was $113 million , and our valuation allowance on our foreign deferred tax assets was $204 million . Our net deferred tax assets include approximately $637 million of foreign tax credits, net of valuation allowances of $103 million , generated primarily from the receipt of foreign dividends. Our earnings and forecasts of future profitability along with three significant sources of foreign income provide us sufficient positive evidence to utilize these credits, despite the negative evidence of their limited carryforward periods. Those 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 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 considered our current forecasts of future profitability in assessing our ability to realize our foreign tax credits. These forecasts include the impact of recent trends, including various macroeconomic factors such as raw material prices, on our profitability, as well as the impact of tax planning strategies. Macroeconomic factors, including raw material prices, possess a high degree of volatility and can significantly impact our profitability. As such, there is a risk that future foreign source income will not be sufficient to fully utilize these 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 evidence to conclude that it is more likely than not that the remaining foreign tax credits, net of valuation allowances, will be fully utilized prior to their various expiration dates. Currently, we are also evaluating the feasibility of certain tax planning actions that would increase the likelihood that we would be able to fully utilize our foreign tax credits prior to their expiration, as well as the related tax consequences. If implemented, these tax planning actions may result in a non-cash increase in tax expense in the period implemented, partially offset by a reduction of our valuation allowances related to foreign tax credits. 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 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 nine months ending September 30, 2019 , changes to our unrecognized tax benefits did not, and for the full year of 2019 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 2018 and in Germany from 2016 onward. Generally, for our remaining tax jurisdictions, years from 2013 onward are still open to examination. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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 Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2019 2018 2019 2018 Earnings per share — basic: Goodyear net income $ 88 $ 351 $ 81 $ 583 Weighted average shares outstanding 233 236 233 238 Earnings per common share — basic $ 0.38 $ 1.49 $ 0.35 $ 2.45 Earnings per share — diluted: Goodyear net income $ 88 $ 351 $ 81 $ 583 Weighted average shares outstanding 233 236 233 238 Dilutive effect of stock options and other dilutive securities 1 2 1 3 Weighted average shares outstanding — diluted 234 238 234 241 Earnings per common share — diluted $ 0.38 $ 1.48 $ 0.35 $ 2.42 Weighted average shares outstanding - diluted excludes approximately 3 million and 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options) for the three and nine months ended September 30, 2019, respectively. There were approximately 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and nine months ended September 30, 2018. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Sales: Americas $ 2,049 $ 2,107 $ 5,896 $ 6,054 Europe, Middle East and Africa 1,205 1,290 3,567 3,880 Asia Pacific 548 531 1,569 1,665 Net Sales $ 3,802 $ 3,928 $ 11,032 $ 11,599 Segment Operating Income: Americas $ 175 $ 194 $ 398 $ 475 Europe, Middle East and Africa 66 111 164 289 Asia Pacific 53 57 141 203 Total Segment Operating Income $ 294 $ 362 $ 703 $ 967 Less: Rationalizations $ 21 $ 5 $ 128 $ 40 Interest expense 88 82 261 236 Other (income) expense (Note 4) 35 (253 ) 74 (171 ) Asset write-offs and accelerated depreciation 1 — 2 2 Corporate incentive compensation plans 13 (1 ) 28 6 Retained expenses of divested operations 1 2 7 7 Other 14 14 38 38 Income before Income Taxes $ 121 $ 513 $ 165 $ 809 Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-Q, net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 4, Other (Income) Expense, in this Form 10-Q, 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 Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Rationalizations: Americas $ 9 $ — $ 18 $ 3 Europe, Middle East and Africa 12 5 110 31 Asia Pacific — — — 3 Total Segment Rationalizations $ 21 $ 5 $ 128 $ 37 Corporate — — — 3 Total Rationalizations $ 21 $ 5 $ 128 $ 40 Net (Gains) Losses on Asset Sales: Americas (1) $ — $ (288 ) $ — $ (276 ) Europe, Middle East and Africa 1 — (5 ) 2 Total Net (Gains) Losses on Asset Sales $ 1 $ (288 ) $ (5 ) $ (274 ) Asset Write-offs and Accelerated Depreciation: Europe, Middle East and Africa $ 1 $ — $ 2 $ 2 Total Asset Write-offs and Accelerated Depreciation $ 1 $ — $ 2 $ 2 (1) Americas Net (Gains) Losses on Asset Sales for the three and nine months ended September 30, 2018 include gains of $287 million and $273 million , respectively, related to the TireHub transaction, net of transaction costs. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES We determine if an arrangement is or contains a lease at inception. We enter into leases primarily for our wholesale distribution facilities, manufacturing equipment, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Our leases have remaining lease terms of less than 1 year to approximately 50 years . Most of our leases include options to extend the lease, with renewal terms ranging from 1 to 50 years or more, and some include options to terminate the lease within 1 year . If it is reasonably certain that an option to extend or terminate a lease will be exercised, that option is considered in the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize short-term lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include variable lease payments, generally based on consumer price indices. Variable lease payments that are assigned to an index are determined based on the initial index at commencement, and the variability based on changes in the index is accounted for as it changes. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and are recorded as lease expense in the period incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components, which are accounted for separately. Operating leases are included in Operating Lease Right-of-Use (“ROU”) Assets, Operating Lease Liabilities due Within One Year and Operating Lease Liabilities on our Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Long Term Debt and Finance Leases due Within One Year, and Long Term Debt and Finance Leases on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Generally, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate stated in the lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. The components of lease expense included in Income before Income Taxes are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Operating Lease Expense $ 73 $ 221 Finance Lease Expense: Amortization of ROU Assets 3 8 Interest on Lease Liabilities 6 16 Short Term Lease Expense 1 4 Variable Lease Expense 2 5 Sublease Income (3 ) (11 ) Total Lease Expense $ 82 $ 243 Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (In millions) 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 201 Operating Cash Flows for Finance Leases 16 Financing Cash Flows for Finance Leases 5 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 124 Finance Leases 34 Supplemental balance sheet information related to leases is as follows: September 30, (In millions, except lease term and discount rate) 2019 Operating Leases Operating Lease ROU Assets $ 828 Operating Lease Liabilities due Within One Year $ 197 Operating Lease Liabilities 642 Total Operating Lease Liabilities $ 839 Finance Leases Property, Plant and Equipment, at cost $ 256 Accumulated Depreciation (47 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 7 Long Term Debt and Finance Leases 238 Total Finance Lease Liabilities $ 245 Weighted Average Remaining Lease Term Operating Leases 6.9 years Finance Leases 32.0 years Weighted Average Discount Rate Operating Leases 6.72 % Finance Leases 8.47 % Future maturities of our lease liabilities, excluding subleases, as of September 30, 2019 are as follows: (In millions) Operating Leases Finance Leases 2019 (excluding the nine months ended September 30) $ 64 $ 6 2020 227 25 2021 180 35 2022 129 21 2023 100 20 Thereafter 383 706 Total Lease Payments 1,083 813 Less: Imputed Interest 244 568 Total $ 839 $ 245 Future maturities of our lease liabilities as of December 31, 2018 were as follows: 2024 and (In millions) 2019 2020 2021 2022 2023 Beyond Total Capital Leases Minimum lease payments $ 8 $ 7 $ 18 $ 3 $ 2 $ 23 $ 61 Imputed interest (3 ) (3 ) (3 ) (1 ) (1 ) (13 ) (24 ) Present value $ 5 $ 4 $ 15 $ 2 $ 1 $ 10 $ 37 Operating Leases Minimum lease payments $ 266 $ 214 $ 161 $ 110 $ 84 $ 391 $ 1,226 Minimum sublease rentals (15 ) (12 ) (8 ) (5 ) (3 ) (6 ) (49 ) $ 251 $ 202 $ 153 $ 105 $ 81 $ 385 $ 1,177 Imputed interest (263 ) Present value $ 914 As of September 30, 2019 , we have additional operating leases that have not yet commenced for which the present value of lease payments over the respective lease terms totals $34 million . Accordingly, these leases are not recorded on the Consolidated Balance Sheet at September 30, 2019 . These operating leases will commence between 2019 and 2020 with lease terms of 3 years to 15 years . |
Leases | LEASES We determine if an arrangement is or contains a lease at inception. We enter into leases primarily for our wholesale distribution facilities, manufacturing equipment, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Our leases have remaining lease terms of less than 1 year to approximately 50 years . Most of our leases include options to extend the lease, with renewal terms ranging from 1 to 50 years or more, and some include options to terminate the lease within 1 year . If it is reasonably certain that an option to extend or terminate a lease will be exercised, that option is considered in the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize short-term lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include variable lease payments, generally based on consumer price indices. Variable lease payments that are assigned to an index are determined based on the initial index at commencement, and the variability based on changes in the index is accounted for as it changes. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and are recorded as lease expense in the period incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components, which are accounted for separately. Operating leases are included in Operating Lease Right-of-Use (“ROU”) Assets, Operating Lease Liabilities due Within One Year and Operating Lease Liabilities on our Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Long Term Debt and Finance Leases due Within One Year, and Long Term Debt and Finance Leases on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Generally, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate stated in the lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. The components of lease expense included in Income before Income Taxes are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Operating Lease Expense $ 73 $ 221 Finance Lease Expense: Amortization of ROU Assets 3 8 Interest on Lease Liabilities 6 16 Short Term Lease Expense 1 4 Variable Lease Expense 2 5 Sublease Income (3 ) (11 ) Total Lease Expense $ 82 $ 243 Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (In millions) 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 201 Operating Cash Flows for Finance Leases 16 Financing Cash Flows for Finance Leases 5 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 124 Finance Leases 34 Supplemental balance sheet information related to leases is as follows: September 30, (In millions, except lease term and discount rate) 2019 Operating Leases Operating Lease ROU Assets $ 828 Operating Lease Liabilities due Within One Year $ 197 Operating Lease Liabilities 642 Total Operating Lease Liabilities $ 839 Finance Leases Property, Plant and Equipment, at cost $ 256 Accumulated Depreciation (47 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 7 Long Term Debt and Finance Leases 238 Total Finance Lease Liabilities $ 245 Weighted Average Remaining Lease Term Operating Leases 6.9 years Finance Leases 32.0 years Weighted Average Discount Rate Operating Leases 6.72 % Finance Leases 8.47 % Future maturities of our lease liabilities, excluding subleases, as of September 30, 2019 are as follows: (In millions) Operating Leases Finance Leases 2019 (excluding the nine months ended September 30) $ 64 $ 6 2020 227 25 2021 180 35 2022 129 21 2023 100 20 Thereafter 383 706 Total Lease Payments 1,083 813 Less: Imputed Interest 244 568 Total $ 839 $ 245 Future maturities of our lease liabilities as of December 31, 2018 were as follows: 2024 and (In millions) 2019 2020 2021 2022 2023 Beyond Total Capital Leases Minimum lease payments $ 8 $ 7 $ 18 $ 3 $ 2 $ 23 $ 61 Imputed interest (3 ) (3 ) (3 ) (1 ) (1 ) (13 ) (24 ) Present value $ 5 $ 4 $ 15 $ 2 $ 1 $ 10 $ 37 Operating Leases Minimum lease payments $ 266 $ 214 $ 161 $ 110 $ 84 $ 391 $ 1,226 Minimum sublease rentals (15 ) (12 ) (8 ) (5 ) (3 ) (6 ) (49 ) $ 251 $ 202 $ 153 $ 105 $ 81 $ 385 $ 1,177 Imputed interest (263 ) Present value $ 914 As of September 30, 2019 , we have additional operating leases that have not yet commenced for which the present value of lease payments over the respective lease terms totals $34 million . Accordingly, these leases are not recorded on the Consolidated Balance Sheet at September 30, 2019 . These operating leases will commence between 2019 and 2020 with lease terms of 3 years to 15 years . |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS | FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS At September 30, 2019 , we had total credit arrangements of $9,036 million , of which $2,521 million were unused. At that date, 42% of our debt was at variable interest rates averaging 4.18% . Notes Payable and Overdrafts, Long Term Debt and Finance Leases due Within One Year and Short Term Financing Arrangements At September 30, 2019 , we had short term committed and uncommitted credit arrangements totaling $735 million , of which $232 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: September 30, December 31, (In millions) 2019 2018 Chinese credit facilities $ 140 $ 122 Other domestic and foreign debt 346 288 Notes Payable and Overdrafts $ 486 $ 410 Weighted average interest rate 7.06 % 8.03 % Chinese credit facilities $ 99 $ 32 8.75% note due 2020 280 — Other foreign and domestic debt (including finance leases) 231 211 Long Term Debt and Finance Leases due Within One Year $ 610 $ 243 Weighted average interest rate 6.43 % 4.57 % Total obligations due within one year $ 1,096 $ 653 Long Term Debt and Finance Leases and Financing Arrangements At September 30, 2019 , we had long term credit arrangements totaling $8,301 million , of which $2,289 million were unused. The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: September 30, 2019 December 31, 2018 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 280 $ 278 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 272 286 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: First lien revolving credit facility due 2021 300 3.21 % — — Second lien term loan facility due 2025 400 4.06 % 400 4.46 % European revolving credit facility due 2024 356 3.39 % — — Pan-European accounts receivable facility 306 0.96 % 335 1.01 % Mexican credit facilities 200 4.02 % 200 4.30 % Chinese credit facilities 202 4.87 % 219 5.03 % Other foreign and domestic debt (1) 909 3.84 % 884 5.35 % 5,975 5,352 Unamortized deferred financing fees (30 ) (36 ) 5,945 5,316 Finance lease obligations (2) 245 37 6,190 5,353 Less portion due within one year (610 ) (243 ) $ 5,580 $ 5,110 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes finance lease obligations related to our Global and Americas Headquarters at September 30, 2019. NOTES At September 30, 2019 , we had $3,302 million of outstanding notes, compared to $3,314 million at December 31, 2018 . CREDIT FACILITIES $2.0 billion Amended and Restated First Lien Revolving Credit Facility due 2021 Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million . 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. 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. Based on our current liquidity, amounts drawn under this facility bear interest at LIBOR plus 125 basis points, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points. Availability under the facility is subject to a borrowing base, which is based primarily 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, and (iii) certain cash in an amount not to exceed $200 million. To the extent that our eligible accounts receivable and 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 $2.0 billion. As of September 30, 2019 , our borrowing base, and therefore our availability, under this facility was $252 million below the facility's stated amount of $2.0 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, 2015. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At September 30, 2019 , we had $300 million of borrowings and $37 million of letters of credit issued under the revolving credit facility. At December 31, 2018 , we had no borrowings and $37 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 and are secured by second priority security interests in the same collateral securing the $2.0 billion first lien revolving credit facility. At September 30, 2019 and December 31, 2018, the amounts outstanding under this facility were $400 million . €800 million Amended and Restated Senior Secured European Revolving Credit Facility due 2024 On March 27, 2019, we amended and restated our European revolving credit facility. Significant changes to the European revolving credit facility include extending the maturity to March 27, 2024, increasing the available commitments thereunder from €550 million to €800 million , decreasing the interest rate margin by 25 basis points and decreasing the annual commitment fee by 5 basis points to 25 basis points. Loans will now 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. The 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. Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to €200 million . 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 September 30, 2019 , there were $100 million ( €92 million ) of borrowings outstanding under the German tranche, $256 million ( €235 million ) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2018 , 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 18, 2018 through October 15, 2020, the designated maximum amount of the facility is €320 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 15, 2020. At September 30, 2019 , the amounts available and utilized under this program totaled $306 million ( €281 million ). At December 31, 2018 , the amounts available and utilized under this program totaled $335 million ( €293 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 2018 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 September 30, 2019 , the gross amount of receivables sold was $539 million , compared to $568 million at December 31, 2018 . Other Foreign Credit Facilities A Mexican subsidiary and a U.S. subsidiary have several financing arrangements in Mexico. At September 30, 2019 , the amounts available and utilized under these facilities were $200 million . At December 31, 2018 , the amounts available and utilized under these facilities were $340 million and $200 million , respectively. The facilities ultimately mature in 2020. The facilities contain covenants relating to the Mexican and U.S. subsidiary and have customary representations and warranties and default provisions relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the applicable facilities. A Chinese subsidiary has several financing arrangements in China. At September 30, 2019 and December 31, 2018 , the amounts available under these facilities were $717 million and $672 million , respectively. At September 30, 2019 , the amount utilized under these facilities was $342 million , of which $140 million was notes payable and $202 million was long term debt. At September 30, 2019 , $99 million of the long term debt was due within a year. At December 31, 2018 , the amount utilized under these facilities was $341 million , of which $122 million was notes payable and $219 million was long term debt. At December 31, 2018 , $32 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 September 30, 2019 and December 31, 2018 , the unused amounts available under these facilities were $107 million and $116 million , respectively. 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: September 30, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts receivable $ 24 $ 7 Other current liabilities (3 ) (6 ) At September 30, 2019 and December 31, 2018 , these outstanding foreign currency derivatives had notional amounts of $1,616 million and $1,240 million , respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $31 million and $40 million for the three and nine months ended September 30, 2019 , respectively, and net transaction gains on derivatives of $7 million and $52 million for the three and nine months ended September 30, 2018 , 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 the fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: September 30, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts receivable $ 15 $ 9 Other current liabilities (1 ) (1 ) Fair Values — Long term asset (liability): Other assets $ 4 $ 2 Other long term liabilities — — At September 30, 2019 and December 31, 2018 , these outstanding foreign currency derivatives had notional amounts of $345 million and $347 million , respectively, and primarily related to U.S. dollar denominated intercompany transactions. 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 hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Amount of gains (losses) deferred to AOCL (1) $ 14 $ 1 $ 18 $ 9 Reclassification adjustment for amounts recognized in Cost of Goods Sold ("CGS") (1) (3 ) 1 (9 ) 8 (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the three and nine months ended September 30, 2019 were not material. The estimated net amount of deferred gains at September 30, 2019 that are expected to be reclassified to earnings within the next twelve months is $12 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 | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 : Total Carrying Value in the Consolidated Balance Sheet Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) 2019 2018 2019 2018 2019 2018 2019 2018 Assets: Investments $ 10 $ 10 $ 10 $ 10 $ — $ — $ — $ — Foreign Exchange Contracts 43 18 — — 43 18 — — Total Assets at Fair Value $ 53 $ 28 $ 10 $ 10 $ 43 $ 18 $ — $ — Liabilities: Foreign Exchange Contracts $ 4 $ 7 $ — $ — $ 4 $ 7 $ — $ — Total Liabilities at Fair Value $ 4 $ 7 $ — $ — $ 4 $ 7 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at September 30, 2019 and December 31, 2018 : September 30, December 31, (In millions) 2019 2018 Fixed Rate Debt: (1) Carrying amount — liability $ 3,424 $ 3,609 Fair value — liability 3,477 3,443 Variable Rate Debt: (1) Carrying amount — liability $ 2,521 $ 1,707 Fair value — liability 2,497 1,689 (1) Excludes Notes Payable and Overdrafts of $486 million and $410 million at September 30, 2019 and December 31, 2018, respectively, of which $224 million and $230 million , respectively, are at fixed rates and $262 million and $180 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 $3,717 million and $3,496 million at September 30, 2019 and December 31, 2018 , 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 the financing arrangements are similar to terms that could be obtained under current lending market conditions . |
Pension, Savings and Other Post
Pension, Savings and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS | 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 Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Service cost $ — $ 1 $ 2 $ 3 Interest cost 44 39 130 118 Expected return on plan assets (56 ) (55 ) (167 ) (164 ) Amortization of net losses 28 28 84 84 Net periodic pension cost $ 16 $ 13 $ 49 $ 41 Net curtailments/settlements/termination benefits 1 — 1 3 Total defined benefit pension cost $ 17 $ 13 $ 50 $ 44 Non-U.S. Non-U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Service cost $ 6 $ 7 $ 20 $ 21 Interest cost 17 17 52 52 Expected return on plan assets (14 ) (17 ) (44 ) (53 ) Amortization of prior service cost — — 1 — Amortization of net losses 8 7 22 22 Net periodic pension cost $ 17 $ 14 $ 51 $ 42 Net curtailments/settlements/termination benefits — 10 — 10 Total defined benefit pension cost $ 17 $ 24 $ 51 $ 52 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. During the third quarter of 2018, we recognized a settlement charge of $9 million in Other (Income) Expense for our frozen U.K. pension plan. This settlement charge was related primarily to an offer of lump sum payments over a limited time during 2018 to non-retiree participants of the plan. Lump sum payments of $74 million , primarily related to this offer, were made from existing plan assets for the nine months ended September 30, 2018. As a result, total lump sum payments related to this plan exceeded annual interest cost for 2018. We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2019. For the three and nine months ended September 30, 2019 , we contributed $11 million and $28 million , respectively, to our non-U.S. plans. The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2019 and 2018 was $27 million for both periods, and for the nine months ended September 30, 2019 and 2018 was $83 million and $84 million , respectively. 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 September 30, 2019 and 2018 was $2 million for both periods, and for the nine months ended September 30, 2019 and 2018 was $5 million and $8 million , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS Our Board of Directors granted 1.7 million restricted stock units and 0.5 million performance share units during the nine months ended September 30, 2019 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 $19.56 for restricted stock units and $18.01 for performance share units granted during the nine months ended September 30, 2019 . We recognized stock-based compensation expense of $7 million and $18 million during the three and nine months ended September 30, 2019 , respectively. At September 30, 2019 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $42 million and is expected to be recognized over the remaining vesting period of the respective grants, through the fourth quarter of 2022 . We recognized stock-based compensation expense of $6 million and $11 million during the three and nine months ended September 30, 2018 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters We have recorded liabilities totaling $49 million and $45 million at September 30, 2019 and December 31, 2018 , 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, $12 million and $10 million was included in Other Current Liabilities at September 30, 2019 and December 31, 2018 , 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 $220 million and $224 million for anticipated costs related to workers’ compensation at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $35 million and $42 million were included in Current Liabilities as part of Compensation and Benefits at September 30, 2019 and December 31, 2018 , 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 September 30, 2019 and December 31, 2018 , the liability was discounted using a risk-free rate of return. At September 30, 2019 , we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $30 million . General and Product Liability and Other Litigation We have recorded liabilities totaling $340 million and $322 million , including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $72 million and $57 million were included in Other Current Liabilities at September 30, 2019 and December 31, 2018 , 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 September 30, 2019 , 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 $5 million and within Other Assets of $26 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 151,600 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 $557 million through September 30, 2019 and $545 million through December 31, 2018 . 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. Nine Months Ended Year Ended (Dollars in millions) September 30, 2019 December 31, 2018 Pending claims, beginning of period 43,100 54,300 New claims filed 1,200 1,300 Claims settled/dismissed (4,400 ) (12,500 ) Pending claims, end of period 39,900 43,100 Payments (1) $ 17 $ 18 (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 $161 million and $166 million at September 30, 2019 and December 31, 2018 , 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 a receivable related to asbestos claims of $103 million and $108 million at September 30, 2019 and December 31, 2018 , respectively. We expect that approximately 65% 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 September 30, 2019 and December 31, 2018, respectively. 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, 2018, we had approximately $565 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. 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 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 €120 million ( $131 million ) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims. 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. Income 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 approximately $71 million and $73 million at September 30, 2019 and December 31, 2018 , 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 PLN165 million ( $41 million ) in connection with an indirect tax assessment in EMEA. 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 approximately $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 September 30, 2019 , this guarantee amount has been reduced to $29 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 2020 . 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 | 9 Months Ended |
Sep. 30, 2019 | |
Captial Stock [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Dividends In the first nine months of 2019, we paid cash dividends of $111 million on our common stock. This amount excludes dividends earned on stock based compensation plans of $1 million for the first nine months of 2019. On October 7, 2019 , the Board of Directors (or duly authorized committee thereof) declared cash dividends of $0.16 per share of common stock, or approximately $37 million in the aggregate. The dividend will be paid on December 2, 2019 , to stockholders of record as of the close of business on November 1, 2019 . Future quarterly dividends are subject to Board approval. Common Stock Repurchases On September 18, 2013 , the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion . This program expires on December 31, 2019, and is intended to be used, subject to our cash flow, to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During the first nine months of 2019 , we did not repurchase any common stock. Since 2013, we repurchased 52,905,959 shares at an average price, including commissions, of $28.99 per share, or $1,534 million in the aggregate. In addition, 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 nine months of 2019 , we did not repurchase any shares from employees. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in AOCL, by component, for the nine months ended September 30, 2019 and 2018 : (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2018 $ (1,160 ) $ (2,923 ) $ 7 $ (4,076 ) Other comprehensive income (loss) before reclassifications, net of tax (82 ) 1 14 (67 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 78 (8 ) 70 Balance at September 30, 2019 $ (1,242 ) $ (2,844 ) $ 13 $ (4,073 ) (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications, net of tax (210 ) (1 ) 6 (205 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 92 6 98 Balance at September 30, 2018 $ (1,125 ) $ (2,961 ) $ 3 $ (4,083 ) The following table presents reclassifications out of AOCL: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Statements of Operations Component of AOCL from AOCL from AOCL Amortization of prior service cost and unrecognized gains and losses $ 34 $ 34 $ 102 $ 103 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures — 11 — 17 Other (Income) Expense Unrecognized Net Actuarial Losses and Prior Service Costs, before tax 34 45 102 120 Tax effect (8 ) (10 ) (24 ) (28 ) United States and Foreign Taxes Net of tax $ 26 $ 35 $ 78 $ 92 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ (3 ) $ 1 $ (9 ) $ 8 Cost of Goods Sold Tax effect — — 1 (2 ) United States and Foreign Taxes Net of tax $ (3 ) $ 1 $ (8 ) $ 6 Goodyear Net Income Total reclassifications $ 23 $ 36 $ 70 $ 98 Goodyear Net Income |
Consolidating Financial Informa
Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATING FINANCIAL INFORMATION | CONSOLIDATING FINANCIAL INFORMATION Certain of our subsidiaries have guaranteed our obligations under the $282 million outstanding principal amount of 8.75% notes due 2020 , the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 , the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for: (i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations; (ii) Guarantor Subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes; (iii) Non-Guarantor Subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and (v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis. Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of capital stock, loans and other capital transactions between members of the consolidated group. Certain Non-Guarantor Subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries. Condensed Consolidating Balance Sheet September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 151 $ 26 $ 691 $ — $ 868 Accounts Receivable, net 808 154 1,786 — 2,748 Accounts Receivable From Affiliates 325 251 — (576 ) — Inventories 1,539 65 1,403 (42 ) 2,965 Prepaid Expenses and Other Current Assets 85 2 187 6 280 Total Current Assets 2,908 498 4,067 (612 ) 6,861 Goodwill 24 1 405 120 550 Intangible Assets 116 — 18 — 134 Deferred Income Taxes 1,448 24 363 4 1,839 Other Assets 494 51 510 — 1,055 Investments in Subsidiaries 3,732 431 — (4,163 ) — Operating Lease Right-of-Use Assets 548 12 268 — 828 Property, Plant and Equipment, net 2,418 432 4,204 (22 ) 7,032 Total Assets $ 11,688 $ 1,449 $ 9,835 $ (4,673 ) $ 18,299 Liabilities: Current Liabilities: Accounts Payable — Trade $ 869 $ 128 $ 1,654 $ — $ 2,651 Accounts Payable to Affiliates — — 576 (576 ) — Compensation and Benefits 296 15 228 — 539 Other Current Liabilities 306 (2 ) 386 — 690 Notes Payable and Overdrafts 20 — 466 — 486 Operating Lease Liabilities due Within One Year 109 5 83 — 197 Long Term Debt and Finance Leases due Within One Year 282 — 328 — 610 Total Current Liabilities 1,882 146 3,721 (576 ) 5,173 Operating Lease Liabilities 449 8 185 — 642 Long Term Debt and Finance Leases 3,662 167 1,751 — 5,580 Compensation and Benefits 513 87 644 — 1,244 Deferred Income Taxes — — 91 — 91 Other Long Term Liabilities 347 7 180 — 534 Total Liabilities 6,853 415 6,572 (576 ) 13,264 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,602 1,034 3,063 (4,097 ) 4,602 Goodyear Shareholders’ Equity 4,835 1,034 3,063 (4,097 ) 4,835 Minority Shareholders’ Equity — Nonredeemable — — 200 — 200 Total Shareholders’ Equity 4,835 1,034 3,263 (4,097 ) 5,035 Total Liabilities and Shareholders’ Equity $ 11,688 $ 1,449 $ 9,835 $ (4,673 ) $ 18,299 Condensed Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 30 $ 644 $ — $ 801 Accounts Receivable, net 672 110 1,248 — 2,030 Accounts Receivable From Affiliates 294 280 — (574 ) — Inventories 1,425 71 1,387 (27 ) 2,856 Prepaid Expenses and Other Current Assets 76 3 155 4 238 Total Current Assets 2,594 494 3,434 (597 ) 5,925 Goodwill 24 1 420 124 569 Intangible Assets 117 — 19 — 136 Deferred Income Taxes 1,422 27 395 3 1,847 Other Assets 524 48 564 — 1,136 Investments in Subsidiaries 3,758 445 — (4,203 ) — Operating Lease Right-of-Use Assets — — — — — Property, Plant and Equipment, net 2,482 430 4,371 (24 ) 7,259 Total Assets $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Liabilities: Current Liabilities: Accounts Payable — Trade $ 960 $ 131 $ 1,829 $ — $ 2,920 Accounts Payable to Affiliates — — 574 (574 ) — Compensation and Benefits 286 14 171 — 471 Other Current Liabilities 310 (4 ) 431 — 737 Notes Payable and Overdrafts 25 — 385 — 410 Operating Lease Liabilities due Within One Year — — — — — Long Term Debt and Finance Leases Due Within One Year 2 — 241 — 243 Total Current Liabilities 1,583 141 3,631 (574 ) 4,781 Operating Lease Liabilities — — — — — Long Term Debt and Finance Leases 3,550 167 1,393 — 5,110 Compensation and Benefits 569 93 683 — 1,345 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 355 8 108 — 471 Total Liabilities 6,057 409 5,910 (574 ) 11,802 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 232 — — — 232 Other Equity 4,632 1,036 3,087 (4,123 ) 4,632 Goodyear Shareholders’ Equity 4,864 1,036 3,087 (4,123 ) 4,864 Minority Shareholders’ Equity — Nonredeemable — — 206 — 206 Total Shareholders’ Equity 4,864 1,036 3,293 (4,123 ) 5,070 Total Liabilities and Shareholders’ Equity $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Consolidating Statements of Operations Three Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,862 $ 384 $ 2,383 $ (827 ) $ 3,802 Cost of Goods Sold 1,484 352 1,962 (833 ) 2,965 Selling, Administrative and General Expense 276 8 288 — 572 Rationalizations 8 — 13 — 21 Interest Expense 56 7 33 (8 ) 88 Other (Income) Expense (7 ) 4 21 17 35 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 45 13 66 (3 ) 121 United States and Foreign Taxes 11 3 17 — 31 Equity in Earnings of Subsidiaries 54 6 — (60 ) — Net Income (Loss) 88 16 49 (63 ) 90 Less: Minority Shareholders’ Net Income — — 2 — 2 Goodyear Net Income (Loss) $ 88 $ 16 $ 47 $ (63 ) $ 88 Comprehensive Income (Loss) $ 17 $ 14 $ (33 ) $ 18 $ 16 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (1 ) — (1 ) Goodyear Comprehensive Income (Loss) $ 17 $ 14 $ (32 ) $ 18 $ 17 Consolidating Statements of Operations Three Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,922 $ 342 $ 2,373 $ (709 ) $ 3,928 Cost of Goods Sold 1,547 319 1,879 (717 ) 3,028 Selling, Administrative and General Expense 239 8 306 — 553 Rationalizations 1 — 4 — 5 Interest Expense 55 6 28 (7 ) 82 Other (Income) Expense (295 ) 3 11 28 (253 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 375 6 145 (13 ) 513 United States and Foreign Taxes 111 1 48 (1 ) 159 Equity in Earnings of Subsidiaries 87 10 — (97 ) — Net Income (Loss) 351 15 97 (109 ) 354 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 351 $ 15 $ 94 $ (109 ) $ 351 Comprehensive Income (Loss) $ 290 $ (5 ) $ (3 ) $ 2 $ 284 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (6 ) — (6 ) Goodyear Comprehensive Income (Loss) $ 290 $ (5 ) $ 3 $ 2 $ 290 Consolidating Statements of Operations Nine Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,328 $ 1,046 $ 6,945 $ (2,287 ) $ 11,032 Cost of Goods Sold 4,292 978 5,738 (2,309 ) 8,699 Selling, Administrative and General Expense 796 25 884 — 1,705 Rationalizations 17 — 111 — 128 Interest Expense 168 20 99 (26 ) 261 Other (Income) Expense 61 11 (59 ) 61 74 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries (6 ) 12 172 (13 ) 165 United States and Foreign Taxes (21 ) 3 83 (2 ) 63 Equity in Earnings of Subsidiaries 66 (6 ) — (60 ) — Net Income (Loss) 81 3 89 (71 ) 102 Less: Minority Shareholders’ Net Income — — 21 — 21 Goodyear Net Income (Loss) $ 81 $ 3 $ 68 $ (71 ) $ 81 Comprehensive Income (Loss) $ 84 $ (3 ) $ 22 $ 2 $ 105 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 21 — 21 Goodyear Comprehensive Income (Loss) $ 84 $ (3 ) $ 1 $ 2 $ 84 Consolidating Statements of Operations Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,440 $ 980 $ 7,236 $ (2,057 ) $ 11,599 Cost of Goods Sold 4,376 927 5,756 (2,106 ) 8,953 Selling, Administrative and General Expense 756 26 950 — 1,732 Rationalizations 6 — 34 — 40 Interest Expense 165 16 73 (18 ) 236 Other (Income) Expense (271 ) 13 19 68 (171 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 408 (2 ) 404 (1 ) 809 United States and Foreign Taxes 71 (1 ) 140 1 211 Equity in Earnings of Subsidiaries 246 44 — (290 ) — Net Income (Loss) 583 43 264 (292 ) 598 Less: Minority Shareholders’ Net Income — — 15 — 15 Goodyear Net Income (Loss) $ 583 $ 43 $ 249 $ (292 ) $ 583 Comprehensive Income (Loss) $ 476 $ 25 $ 29 $ (64 ) $ 466 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (10 ) — (10 ) Goodyear Comprehensive Income (Loss) $ 476 $ 25 $ 39 $ (64 ) $ 476 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 129 $ (14 ) $ (229 ) $ (25 ) $ (139 ) Cash Flows from Investing Activities: Capital Expenditures (215 ) (29 ) (317 ) — (561 ) Asset Dispositions — — 2 — 2 Short Term Securities Acquired — — (73 ) — (73 ) Short Term Securities Redeemed — — 67 — 67 Capital Contributions and Loans Incurred (319 ) — — 319 — Capital Redemptions and Loans Paid 203 — — (203 ) — Notes Receivable (7 ) — — — (7 ) Other Transactions — — (12 ) — (12 ) Total Cash Flows from Investing Activities (338 ) (29 ) (333 ) 116 (584 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 374 — 1,077 — 1,451 Short Term Debt and Overdrafts Paid (379 ) — (978 ) — (1,357 ) Long Term Debt Incurred 2,340 — 2,457 — 4,797 Long Term Debt Paid (1,992 ) — (1,949 ) — (3,941 ) Common Stock Issued 1 — — — 1 Common Stock Repurchased — — — — — Common Stock Dividends Paid (111 ) — — — (111 ) Capital Contributions and Loans Incurred — 53 266 (319 ) — Capital Redemptions and Loans Paid — (15 ) (188 ) 203 — Intercompany Dividends Paid — — (25 ) 25 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions 1 — (26 ) — (25 ) Total Cash Flows from Financing Activities 234 38 608 (91 ) 789 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 1 (14 ) — (13 ) Net Change in Cash, Cash Equivalents and Restricted Cash 25 (4 ) 32 — 53 Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 168 30 675 — 873 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 193 $ 26 $ 707 $ — $ 926 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 815 $ (5 ) $ (295 ) $ (539 ) $ (24 ) Cash Flows from Investing Activities: Capital Expenditures (248 ) (55 ) (311 ) (1 ) (615 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (61 ) — (61 ) Short Term Securities Redeemed — — 61 — 61 Capital Contributions and Loans Incurred (597 ) — (213 ) 810 — Capital Redemptions and Loans Paid 193 — 430 (623 ) — Notes Receivable (50 ) — — — (50 ) Other Transactions 3 — (4 ) — (1 ) Total Cash Flows from Investing Activities (699 ) (53 ) (98 ) 186 (664 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 800 — 658 — 1,458 Short Term Debt and Overdrafts Paid (775 ) — (492 ) — (1,267 ) Long Term Debt Incurred 2,305 15 2,384 — 4,704 Long Term Debt Paid (1,982 ) — (2,010 ) — (3,992 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (200 ) — — — (200 ) Common Stock Dividends Paid (100 ) — — — (100 ) Capital Contributions and Loans Incurred 213 52 545 (810 ) — Capital Redemptions and Loans Paid (430 ) (14 ) (179 ) 623 — Intercompany Dividends Paid — — (540 ) 540 — Transactions with Minority Interests in Subsidiaries — — (27 ) — (27 ) Debt Related Costs and Other Transactions 16 — (19 ) — (3 ) Total Cash Flows from Financing Activities (149 ) 53 320 353 577 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (1 ) (36 ) — (37 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (6 ) (109 ) — (148 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 168 $ 26 $ 768 $ — $ 962 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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 rules and regulations and generally accepted accounting principles in the United States of America ("US 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 US 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, 2018 (the “ 2018 Form 10-K”). Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2019 . |
Recently Issued and Adopted Accounting Standards | Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. We elected the optional transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. We also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard, and we have elected to not evaluate land easements that existed as of, or expired before, adoption of the new standard. In addition, we did not reassess whether any contracts entered into prior to adoption are leases. The adoption of this standards update had a material impact on our Consolidated Balance Sheets and related disclosures. In addition to recognizing right-of-use assets and lease liabilities for our operating leases, we recorded $23 million as a cumulative effect adjustment to decrease Retained Earnings as a result of using the modified retrospective adoption approach. The adoption of this standards update did not have a material impact on our results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The adoption of this standards update did not have a material impact on our consolidated financial statements. Effective January 1, 2019, we adopted an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) ("AOCL") to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States. We have elected not to reclassify the income tax effects of the Tax Act from AOCL to Retained Earnings. As such, the adoption of this standards update did not impact our consolidated financial statements. Our policy is to utilize an item-by-item approach to release stranded income tax effects from AOCL. Under this approach, the stranded income tax effects are released from AOCL when the related item ceases to exist. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with new guidance requiring a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize as an asset. The standards update is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to have a material impact on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to have a material impact on our consolidated financial statements. |
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 carried at cost. All intercompany balances and transactions have been eliminated in consolidation. |
Restricted Cash | Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. |
Reclassifications and Adjustments | Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 |
Schedule 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: September 30, (In millions) 2019 2018 Cash and Cash Equivalents $ 868 $ 896 Restricted Cash 58 66 Total Cash, Cash Equivalents and Restricted Cash $ 926 $ 962 |
Restrictions on 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: September 30, (In millions) 2019 2018 Cash and Cash Equivalents $ 868 $ 896 Restricted Cash 58 66 Total Cash, Cash Equivalents and Restricted Cash $ 926 $ 962 |
Net Sales (Tables)
Net Sales (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,624 $ 1,109 $ 500 $ 3,233 Other tire and related sales 185 82 25 292 Retail services and service related sales 136 12 23 171 Chemical sales 99 — — 99 Other 5 2 — 7 Net Sales by reportable segment $ 2,049 $ 1,205 $ 548 $ 3,802 Three Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,638 $ 1,197 $ 479 $ 3,314 Other tire and related sales 175 86 32 293 Retail services and service related sales 145 6 19 170 Chemical sales 146 — — 146 Other 3 1 1 5 Net Sales by reportable segment $ 2,107 $ 1,290 $ 531 $ 3,928 Nine Months Ended September 30, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,658 $ 3,264 $ 1,425 $ 9,347 Other tire and related sales 496 272 87 855 Retail services and service related sales 406 27 55 488 Chemical sales 322 — — 322 Other 14 4 2 20 Net Sales by reportable segment $ 5,896 $ 3,567 $ 1,569 $ 11,032 Nine Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,693 $ 3,565 $ 1,508 $ 9,766 Other tire and related sales 488 282 94 864 Retail services and service related sales 426 28 60 514 Chemical sales 437 — — 437 Other 10 5 3 18 Net Sales by reportable segment $ 6,054 $ 3,880 $ 1,665 $ 11,599 |
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 nine months ended September 30, 2019 : (In millions) Balance at December 31, 2018 $ 78 Revenue deferred during period 112 Revenue recognized during period (128 ) Impact of foreign currency translation — Balance at September 30, 2019 $ 62 |
Costs Associated with Rationa_2
Costs Associated with Rationalization Programs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Roll-Forward of the Rationalization Liability Between Periods | The following table shows the roll-forward of our liability between periods: Associate- (In millions) Related Costs Other Exit Costs Total Balance at December 31, 2018 $ 80 $ 1 $ 81 2019 Charges 117 14 131 Incurred, including net Foreign Currency Translation of $(6) million and $0 million, respectively (38 ) (14 ) (52 ) Reversed to the Statement of Operations (3 ) — (3 ) Balance at September 30, 2019 $ 156 $ 1 $ 157 |
Net Rationalization Charges Included in Income Before Income Taxes | The following table shows net rationalization charges included in Income before Income Taxes: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Current Year Plans Associate Severance and Other Related Costs $ 17 $ — $ 115 $ 32 Benefit Plan Termination Benefits — — 1 — Other Exit Costs 3 1 7 1 Current Year Plans - Net Charges $ 20 $ 1 $ 123 $ 33 Prior Year Plans Associate Severance and Other Related Costs $ (2 ) $ 1 $ (2 ) $ (6 ) Benefit Plan Termination Benefits 1 — — — Other Exit Costs 2 3 7 13 Prior Year Plans - Net Charges 1 4 5 7 Total Net Charges $ 21 $ 5 $ 128 $ 40 Asset Write-off and Accelerated Depreciation Charges $ 1 $ — $ 2 $ 2 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Gain on TireHub transaction, net of transaction costs $ — $ (287 ) $ — $ (273 ) Non-service related pension and other postretirement benefits cost 28 33 85 92 Financing fees and financial instruments expense 8 9 26 27 Net foreign currency exchange (gains) losses 3 (2 ) (15 ) (7 ) General and product liability expense - discontinued products 2 5 10 3 Royalty income (5 ) (5 ) (15 ) (15 ) Net (gains) losses on asset sales 1 (1 ) (5 ) (1 ) Interest income (5 ) (6 ) (13 ) (12 ) Miscellaneous expense 3 1 1 15 $ 35 $ (253 ) $ 74 $ (171 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2019 2018 2019 2018 Earnings per share — basic: Goodyear net income $ 88 $ 351 $ 81 $ 583 Weighted average shares outstanding 233 236 233 238 Earnings per common share — basic $ 0.38 $ 1.49 $ 0.35 $ 2.45 Earnings per share — diluted: Goodyear net income $ 88 $ 351 $ 81 $ 583 Weighted average shares outstanding 233 236 233 238 Dilutive effect of stock options and other dilutive securities 1 2 1 3 Weighted average shares outstanding — diluted 234 238 234 241 Earnings per common share — diluted $ 0.38 $ 1.48 $ 0.35 $ 2.42 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Sales: Americas $ 2,049 $ 2,107 $ 5,896 $ 6,054 Europe, Middle East and Africa 1,205 1,290 3,567 3,880 Asia Pacific 548 531 1,569 1,665 Net Sales $ 3,802 $ 3,928 $ 11,032 $ 11,599 Segment Operating Income: Americas $ 175 $ 194 $ 398 $ 475 Europe, Middle East and Africa 66 111 164 289 Asia Pacific 53 57 141 203 Total Segment Operating Income $ 294 $ 362 $ 703 $ 967 Less: Rationalizations $ 21 $ 5 $ 128 $ 40 Interest expense 88 82 261 236 Other (income) expense (Note 4) 35 (253 ) 74 (171 ) Asset write-offs and accelerated depreciation 1 — 2 2 Corporate incentive compensation plans 13 (1 ) 28 6 Retained expenses of divested operations 1 2 7 7 Other 14 14 38 38 Income before Income Taxes $ 121 $ 513 $ 165 $ 809 |
Charges and Credits Attributable to the SBUs | Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-Q, net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 4, Other (Income) Expense, in this Form 10-Q, 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 Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Rationalizations: Americas $ 9 $ — $ 18 $ 3 Europe, Middle East and Africa 12 5 110 31 Asia Pacific — — — 3 Total Segment Rationalizations $ 21 $ 5 $ 128 $ 37 Corporate — — — 3 Total Rationalizations $ 21 $ 5 $ 128 $ 40 Net (Gains) Losses on Asset Sales: Americas (1) $ — $ (288 ) $ — $ (276 ) Europe, Middle East and Africa 1 — (5 ) 2 Total Net (Gains) Losses on Asset Sales $ 1 $ (288 ) $ (5 ) $ (274 ) Asset Write-offs and Accelerated Depreciation: Europe, Middle East and Africa $ 1 $ — $ 2 $ 2 Total Asset Write-offs and Accelerated Depreciation $ 1 $ — $ 2 $ 2 (1) Americas Net (Gains) Losses on Asset Sales for the three and nine months ended September 30, 2018 include gains of $287 million and $273 million , respectively, related to the TireHub transaction, net of transaction costs. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense included in Income before Income Taxes are as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2019 Operating Lease Expense $ 73 $ 221 Finance Lease Expense: Amortization of ROU Assets 3 8 Interest on Lease Liabilities 6 16 Short Term Lease Expense 1 4 Variable Lease Expense 2 5 Sublease Income (3 ) (11 ) Total Lease Expense $ 82 $ 243 |
Direct Financing Lease, Lease Income | Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (In millions) 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 201 Operating Cash Flows for Finance Leases 16 Financing Cash Flows for Finance Leases 5 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 124 Finance Leases 34 |
Operating Lease, Lease Income | Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (In millions) 2019 Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 201 Operating Cash Flows for Finance Leases 16 Financing Cash Flows for Finance Leases 5 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 124 Finance Leases 34 |
Lessee, Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: September 30, (In millions, except lease term and discount rate) 2019 Operating Leases Operating Lease ROU Assets $ 828 Operating Lease Liabilities due Within One Year $ 197 Operating Lease Liabilities 642 Total Operating Lease Liabilities $ 839 Finance Leases Property, Plant and Equipment, at cost $ 256 Accumulated Depreciation (47 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 7 Long Term Debt and Finance Leases 238 Total Finance Lease Liabilities $ 245 Weighted Average Remaining Lease Term Operating Leases 6.9 years Finance Leases 32.0 years Weighted Average Discount Rate Operating Leases 6.72 % Finance Leases 8.47 % |
Lessee, Operating Lease, Liability, Maturity | Future maturities of our lease liabilities, excluding subleases, as of September 30, 2019 are as follows: (In millions) Operating Leases Finance Leases 2019 (excluding the nine months ended September 30) $ 64 $ 6 2020 227 25 2021 180 35 2022 129 21 2023 100 20 Thereafter 383 706 Total Lease Payments 1,083 813 Less: Imputed Interest 244 568 Total $ 839 $ 245 Future maturities of our lease liabilities as of December 31, 2018 were as follows: 2024 and (In millions) 2019 2020 2021 2022 2023 Beyond Total Capital Leases Minimum lease payments $ 8 $ 7 $ 18 $ 3 $ 2 $ 23 $ 61 Imputed interest (3 ) (3 ) (3 ) (1 ) (1 ) (13 ) (24 ) Present value $ 5 $ 4 $ 15 $ 2 $ 1 $ 10 $ 37 Operating Leases Minimum lease payments $ 266 $ 214 $ 161 $ 110 $ 84 $ 391 $ 1,226 Minimum sublease rentals (15 ) (12 ) (8 ) (5 ) (3 ) (6 ) (49 ) $ 251 $ 202 $ 153 $ 105 $ 81 $ 385 $ 1,177 Imputed interest (263 ) Present value $ 914 |
Finance Lease, Liability, Maturity | Future maturities of our lease liabilities, excluding subleases, as of September 30, 2019 are as follows: (In millions) Operating Leases Finance Leases 2019 (excluding the nine months ended September 30) $ 64 $ 6 2020 227 25 2021 180 35 2022 129 21 2023 100 20 Thereafter 383 706 Total Lease Payments 1,083 813 Less: Imputed Interest 244 568 Total $ 839 $ 245 Future maturities of our lease liabilities as of December 31, 2018 were as follows: 2024 and (In millions) 2019 2020 2021 2022 2023 Beyond Total Capital Leases Minimum lease payments $ 8 $ 7 $ 18 $ 3 $ 2 $ 23 $ 61 Imputed interest (3 ) (3 ) (3 ) (1 ) (1 ) (13 ) (24 ) Present value $ 5 $ 4 $ 15 $ 2 $ 1 $ 10 $ 37 Operating Leases Minimum lease payments $ 266 $ 214 $ 161 $ 110 $ 84 $ 391 $ 1,226 Minimum sublease rentals (15 ) (12 ) (8 ) (5 ) (3 ) (6 ) (49 ) $ 251 $ 202 $ 153 $ 105 $ 81 $ 385 $ 1,177 Imputed interest (263 ) Present value $ 914 |
Financing Arrangements and De_2
Financing Arrangements and Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year | The following table presents amounts due within one year: September 30, December 31, (In millions) 2019 2018 Chinese credit facilities $ 140 $ 122 Other domestic and foreign debt 346 288 Notes Payable and Overdrafts $ 486 $ 410 Weighted average interest rate 7.06 % 8.03 % Chinese credit facilities $ 99 $ 32 8.75% note due 2020 280 — Other foreign and domestic debt (including finance leases) 231 211 Long Term Debt and Finance Leases due Within One Year $ 610 $ 243 Weighted average interest rate 6.43 % 4.57 % Total obligations due within one year $ 1,096 $ 653 |
Long Term Debt and Capital Leases, Net | The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: September 30, 2019 December 31, 2018 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 280 $ 278 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 272 286 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: First lien revolving credit facility due 2021 300 3.21 % — — Second lien term loan facility due 2025 400 4.06 % 400 4.46 % European revolving credit facility due 2024 356 3.39 % — — Pan-European accounts receivable facility 306 0.96 % 335 1.01 % Mexican credit facilities 200 4.02 % 200 4.30 % Chinese credit facilities 202 4.87 % 219 5.03 % Other foreign and domestic debt (1) 909 3.84 % 884 5.35 % 5,975 5,352 Unamortized deferred financing fees (30 ) (36 ) 5,945 5,316 Finance lease obligations (2) 245 37 6,190 5,353 Less portion due within one year (610 ) (243 ) $ 5,580 $ 5,110 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes finance lease obligations related to our Global and Americas Headquarters at September 30, 2019. |
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: September 30, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts receivable $ 24 $ 7 Other current liabilities (3 ) (6 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: September 30, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts receivable $ 15 $ 9 Other current liabilities (1 ) (1 ) Fair Values — Long term asset (liability): Other assets $ 4 $ 2 Other long term liabilities — — |
Information Related to Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Amount of gains (losses) deferred to AOCL (1) $ 14 $ 1 $ 18 $ 9 Reclassification adjustment for amounts recognized in Cost of Goods Sold ("CGS") (1) (3 ) 1 (9 ) 8 (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the three and nine months ended September 30, 2019 were not material. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Information About Assets and Liabilities Recorded at Fair Value | The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 : Total Carrying Value in the Consolidated Balance Sheet Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) 2019 2018 2019 2018 2019 2018 2019 2018 Assets: Investments $ 10 $ 10 $ 10 $ 10 $ — $ — $ — $ — Foreign Exchange Contracts 43 18 — — 43 18 — — Total Assets at Fair Value $ 53 $ 28 $ 10 $ 10 $ 43 $ 18 $ — $ — Liabilities: Foreign Exchange Contracts $ 4 $ 7 $ — $ — $ 4 $ 7 $ — $ — Total Liabilities at Fair Value $ 4 $ 7 $ — $ — $ 4 $ 7 $ — $ — |
Supplemental Fair Value Information About Debt, Excluding Capital Leases | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at September 30, 2019 and December 31, 2018 : September 30, December 31, (In millions) 2019 2018 Fixed Rate Debt: (1) Carrying amount — liability $ 3,424 $ 3,609 Fair value — liability 3,477 3,443 Variable Rate Debt: (1) Carrying amount — liability $ 2,521 $ 1,707 Fair value — liability 2,497 1,689 (1) Excludes Notes Payable and Overdrafts of $486 million and $410 million at September 30, 2019 and December 31, 2018, respectively, of which $224 million and $230 million , respectively, are at fixed rates and $262 million and $180 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 Postr
Pension Savings And Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Cost | Defined benefit pension cost follows: U.S. U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Service cost $ — $ 1 $ 2 $ 3 Interest cost 44 39 130 118 Expected return on plan assets (56 ) (55 ) (167 ) (164 ) Amortization of net losses 28 28 84 84 Net periodic pension cost $ 16 $ 13 $ 49 $ 41 Net curtailments/settlements/termination benefits 1 — 1 3 Total defined benefit pension cost $ 17 $ 13 $ 50 $ 44 Non-U.S. Non-U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2019 2018 2019 2018 Service cost $ 6 $ 7 $ 20 $ 21 Interest cost 17 17 52 52 Expected return on plan assets (14 ) (17 ) (44 ) (53 ) Amortization of prior service cost — — 1 — Amortization of net losses 8 7 22 22 Net periodic pension cost $ 17 $ 14 $ 51 $ 42 Net curtailments/settlements/termination benefits — 10 — 10 Total defined benefit pension cost $ 17 $ 24 $ 51 $ 52 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of 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. Nine Months Ended Year Ended (Dollars in millions) September 30, 2019 December 31, 2018 Pending claims, beginning of period 43,100 54,300 New claims filed 1,200 1,300 Claims settled/dismissed (4,400 ) (12,500 ) Pending claims, end of period 39,900 43,100 Payments (1) $ 17 $ 18 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following tables present changes in AOCL, by component, for the nine months ended September 30, 2019 and 2018 : (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2018 $ (1,160 ) $ (2,923 ) $ 7 $ (4,076 ) Other comprehensive income (loss) before reclassifications, net of tax (82 ) 1 14 (67 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 78 (8 ) 70 Balance at September 30, 2019 $ (1,242 ) $ (2,844 ) $ 13 $ (4,073 ) (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications, net of tax (210 ) (1 ) 6 (205 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 92 6 98 Balance at September 30, 2018 $ (1,125 ) $ (2,961 ) $ 3 $ (4,083 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Statements of Operations Component of AOCL from AOCL from AOCL Amortization of prior service cost and unrecognized gains and losses $ 34 $ 34 $ 102 $ 103 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures — 11 — 17 Other (Income) Expense Unrecognized Net Actuarial Losses and Prior Service Costs, before tax 34 45 102 120 Tax effect (8 ) (10 ) (24 ) (28 ) United States and Foreign Taxes Net of tax $ 26 $ 35 $ 78 $ 92 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ (3 ) $ 1 $ (9 ) $ 8 Cost of Goods Sold Tax effect — — 1 (2 ) United States and Foreign Taxes Net of tax $ (3 ) $ 1 $ (8 ) $ 6 Goodyear Net Income Total reclassifications $ 23 $ 36 $ 70 $ 98 Goodyear Net Income |
Consolidating Financial Infor_2
Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 151 $ 26 $ 691 $ — $ 868 Accounts Receivable, net 808 154 1,786 — 2,748 Accounts Receivable From Affiliates 325 251 — (576 ) — Inventories 1,539 65 1,403 (42 ) 2,965 Prepaid Expenses and Other Current Assets 85 2 187 6 280 Total Current Assets 2,908 498 4,067 (612 ) 6,861 Goodwill 24 1 405 120 550 Intangible Assets 116 — 18 — 134 Deferred Income Taxes 1,448 24 363 4 1,839 Other Assets 494 51 510 — 1,055 Investments in Subsidiaries 3,732 431 — (4,163 ) — Operating Lease Right-of-Use Assets 548 12 268 — 828 Property, Plant and Equipment, net 2,418 432 4,204 (22 ) 7,032 Total Assets $ 11,688 $ 1,449 $ 9,835 $ (4,673 ) $ 18,299 Liabilities: Current Liabilities: Accounts Payable — Trade $ 869 $ 128 $ 1,654 $ — $ 2,651 Accounts Payable to Affiliates — — 576 (576 ) — Compensation and Benefits 296 15 228 — 539 Other Current Liabilities 306 (2 ) 386 — 690 Notes Payable and Overdrafts 20 — 466 — 486 Operating Lease Liabilities due Within One Year 109 5 83 — 197 Long Term Debt and Finance Leases due Within One Year 282 — 328 — 610 Total Current Liabilities 1,882 146 3,721 (576 ) 5,173 Operating Lease Liabilities 449 8 185 — 642 Long Term Debt and Finance Leases 3,662 167 1,751 — 5,580 Compensation and Benefits 513 87 644 — 1,244 Deferred Income Taxes — — 91 — 91 Other Long Term Liabilities 347 7 180 — 534 Total Liabilities 6,853 415 6,572 (576 ) 13,264 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,602 1,034 3,063 (4,097 ) 4,602 Goodyear Shareholders’ Equity 4,835 1,034 3,063 (4,097 ) 4,835 Minority Shareholders’ Equity — Nonredeemable — — 200 — 200 Total Shareholders’ Equity 4,835 1,034 3,263 (4,097 ) 5,035 Total Liabilities and Shareholders’ Equity $ 11,688 $ 1,449 $ 9,835 $ (4,673 ) $ 18,299 Condensed Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 30 $ 644 $ — $ 801 Accounts Receivable, net 672 110 1,248 — 2,030 Accounts Receivable From Affiliates 294 280 — (574 ) — Inventories 1,425 71 1,387 (27 ) 2,856 Prepaid Expenses and Other Current Assets 76 3 155 4 238 Total Current Assets 2,594 494 3,434 (597 ) 5,925 Goodwill 24 1 420 124 569 Intangible Assets 117 — 19 — 136 Deferred Income Taxes 1,422 27 395 3 1,847 Other Assets 524 48 564 — 1,136 Investments in Subsidiaries 3,758 445 — (4,203 ) — Operating Lease Right-of-Use Assets — — — — — Property, Plant and Equipment, net 2,482 430 4,371 (24 ) 7,259 Total Assets $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Liabilities: Current Liabilities: Accounts Payable — Trade $ 960 $ 131 $ 1,829 $ — $ 2,920 Accounts Payable to Affiliates — — 574 (574 ) — Compensation and Benefits 286 14 171 — 471 Other Current Liabilities 310 (4 ) 431 — 737 Notes Payable and Overdrafts 25 — 385 — 410 Operating Lease Liabilities due Within One Year — — — — — Long Term Debt and Finance Leases Due Within One Year 2 — 241 — 243 Total Current Liabilities 1,583 141 3,631 (574 ) 4,781 Operating Lease Liabilities — — — — — Long Term Debt and Finance Leases 3,550 167 1,393 — 5,110 Compensation and Benefits 569 93 683 — 1,345 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 355 8 108 — 471 Total Liabilities 6,057 409 5,910 (574 ) 11,802 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 232 — — — 232 Other Equity 4,632 1,036 3,087 (4,123 ) 4,632 Goodyear Shareholders’ Equity 4,864 1,036 3,087 (4,123 ) 4,864 Minority Shareholders’ Equity — Nonredeemable — — 206 — 206 Total Shareholders’ Equity 4,864 1,036 3,293 (4,123 ) 5,070 Total Liabilities and Shareholders’ Equity $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 |
Consolidating Statements of Operations | Consolidating Statements of Operations Three Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,862 $ 384 $ 2,383 $ (827 ) $ 3,802 Cost of Goods Sold 1,484 352 1,962 (833 ) 2,965 Selling, Administrative and General Expense 276 8 288 — 572 Rationalizations 8 — 13 — 21 Interest Expense 56 7 33 (8 ) 88 Other (Income) Expense (7 ) 4 21 17 35 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 45 13 66 (3 ) 121 United States and Foreign Taxes 11 3 17 — 31 Equity in Earnings of Subsidiaries 54 6 — (60 ) — Net Income (Loss) 88 16 49 (63 ) 90 Less: Minority Shareholders’ Net Income — — 2 — 2 Goodyear Net Income (Loss) $ 88 $ 16 $ 47 $ (63 ) $ 88 Comprehensive Income (Loss) $ 17 $ 14 $ (33 ) $ 18 $ 16 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (1 ) — (1 ) Goodyear Comprehensive Income (Loss) $ 17 $ 14 $ (32 ) $ 18 $ 17 Consolidating Statements of Operations Three Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,922 $ 342 $ 2,373 $ (709 ) $ 3,928 Cost of Goods Sold 1,547 319 1,879 (717 ) 3,028 Selling, Administrative and General Expense 239 8 306 — 553 Rationalizations 1 — 4 — 5 Interest Expense 55 6 28 (7 ) 82 Other (Income) Expense (295 ) 3 11 28 (253 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 375 6 145 (13 ) 513 United States and Foreign Taxes 111 1 48 (1 ) 159 Equity in Earnings of Subsidiaries 87 10 — (97 ) — Net Income (Loss) 351 15 97 (109 ) 354 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 351 $ 15 $ 94 $ (109 ) $ 351 Comprehensive Income (Loss) $ 290 $ (5 ) $ (3 ) $ 2 $ 284 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (6 ) — (6 ) Goodyear Comprehensive Income (Loss) $ 290 $ (5 ) $ 3 $ 2 $ 290 Consolidating Statements of Operations Nine Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,328 $ 1,046 $ 6,945 $ (2,287 ) $ 11,032 Cost of Goods Sold 4,292 978 5,738 (2,309 ) 8,699 Selling, Administrative and General Expense 796 25 884 — 1,705 Rationalizations 17 — 111 — 128 Interest Expense 168 20 99 (26 ) 261 Other (Income) Expense 61 11 (59 ) 61 74 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries (6 ) 12 172 (13 ) 165 United States and Foreign Taxes (21 ) 3 83 (2 ) 63 Equity in Earnings of Subsidiaries 66 (6 ) — (60 ) — Net Income (Loss) 81 3 89 (71 ) 102 Less: Minority Shareholders’ Net Income — — 21 — 21 Goodyear Net Income (Loss) $ 81 $ 3 $ 68 $ (71 ) $ 81 Comprehensive Income (Loss) $ 84 $ (3 ) $ 22 $ 2 $ 105 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 21 — 21 Goodyear Comprehensive Income (Loss) $ 84 $ (3 ) $ 1 $ 2 $ 84 Consolidating Statements of Operations Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,440 $ 980 $ 7,236 $ (2,057 ) $ 11,599 Cost of Goods Sold 4,376 927 5,756 (2,106 ) 8,953 Selling, Administrative and General Expense 756 26 950 — 1,732 Rationalizations 6 — 34 — 40 Interest Expense 165 16 73 (18 ) 236 Other (Income) Expense (271 ) 13 19 68 (171 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 408 (2 ) 404 (1 ) 809 United States and Foreign Taxes 71 (1 ) 140 1 211 Equity in Earnings of Subsidiaries 246 44 — (290 ) — Net Income (Loss) 583 43 264 (292 ) 598 Less: Minority Shareholders’ Net Income — — 15 — 15 Goodyear Net Income (Loss) $ 583 $ 43 $ 249 $ (292 ) $ 583 Comprehensive Income (Loss) $ 476 $ 25 $ 29 $ (64 ) $ 466 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (10 ) — (10 ) Goodyear Comprehensive Income (Loss) $ 476 $ 25 $ 39 $ (64 ) $ 476 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 129 $ (14 ) $ (229 ) $ (25 ) $ (139 ) Cash Flows from Investing Activities: Capital Expenditures (215 ) (29 ) (317 ) — (561 ) Asset Dispositions — — 2 — 2 Short Term Securities Acquired — — (73 ) — (73 ) Short Term Securities Redeemed — — 67 — 67 Capital Contributions and Loans Incurred (319 ) — — 319 — Capital Redemptions and Loans Paid 203 — — (203 ) — Notes Receivable (7 ) — — — (7 ) Other Transactions — — (12 ) — (12 ) Total Cash Flows from Investing Activities (338 ) (29 ) (333 ) 116 (584 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 374 — 1,077 — 1,451 Short Term Debt and Overdrafts Paid (379 ) — (978 ) — (1,357 ) Long Term Debt Incurred 2,340 — 2,457 — 4,797 Long Term Debt Paid (1,992 ) — (1,949 ) — (3,941 ) Common Stock Issued 1 — — — 1 Common Stock Repurchased — — — — — Common Stock Dividends Paid (111 ) — — — (111 ) Capital Contributions and Loans Incurred — 53 266 (319 ) — Capital Redemptions and Loans Paid — (15 ) (188 ) 203 — Intercompany Dividends Paid — — (25 ) 25 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions 1 — (26 ) — (25 ) Total Cash Flows from Financing Activities 234 38 608 (91 ) 789 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 1 (14 ) — (13 ) Net Change in Cash, Cash Equivalents and Restricted Cash 25 (4 ) 32 — 53 Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 168 30 675 — 873 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 193 $ 26 $ 707 $ — $ 926 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 815 $ (5 ) $ (295 ) $ (539 ) $ (24 ) Cash Flows from Investing Activities: Capital Expenditures (248 ) (55 ) (311 ) (1 ) (615 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (61 ) — (61 ) Short Term Securities Redeemed — — 61 — 61 Capital Contributions and Loans Incurred (597 ) — (213 ) 810 — Capital Redemptions and Loans Paid 193 — 430 (623 ) — Notes Receivable (50 ) — — — (50 ) Other Transactions 3 — (4 ) — (1 ) Total Cash Flows from Investing Activities (699 ) (53 ) (98 ) 186 (664 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 800 — 658 — 1,458 Short Term Debt and Overdrafts Paid (775 ) — (492 ) — (1,267 ) Long Term Debt Incurred 2,305 15 2,384 — 4,704 Long Term Debt Paid (1,982 ) — (2,010 ) — (3,992 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (200 ) — — — (200 ) Common Stock Dividends Paid (100 ) — — — (100 ) Capital Contributions and Loans Incurred 213 52 545 (810 ) — Capital Redemptions and Loans Paid (430 ) (14 ) (179 ) 623 — Intercompany Dividends Paid — — (540 ) 540 — Transactions with Minority Interests in Subsidiaries — — (27 ) — (27 ) Debt Related Costs and Other Transactions 16 — (19 ) — (3 ) Total Cash Flows from Financing Activities (149 ) 53 320 353 577 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (1 ) (36 ) — (37 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (6 ) (109 ) — (148 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 168 $ 26 $ 768 $ — $ 962 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (6,543) | $ (6,574) | $ (6,597) |
Long term debt and finance leases | 5,580 | 5,124 | 5,110 |
Property, plant and equipment, less accumulated depreciation | 7,032 | 7,243 | 7,259 |
Deferred income taxes | 1,839 | 1,854 | 1,847 |
Other liabilities, noncurrent | $ 534 | 465 | $ 471 |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 23 | ||
Long term debt and finance leases | 14 | ||
Property, plant and equipment, less accumulated depreciation | (16) | ||
Deferred income taxes | 7 | ||
Other liabilities, noncurrent | $ (6) |
Accounting Policies - Schedule
Accounting Policies - Schedule of Changes in Accounting Policy (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Income Taxes | $ 1,839 | $ 1,854 | $ 1,847 |
Operating Lease Right-of-Use Assets | 828 | 882 | 0 |
Property, Plant and Equipment, less Accumulated Depreciation | 7,032 | 7,243 | 7,259 |
Operating Lease Liabilities due Within One Year | 197 | 204 | 0 |
Operating Lease Liabilities | 642 | 684 | 0 |
Long Term Debt and Finance Leases | 5,580 | 5,124 | 5,110 |
Other Long Term Liabilities | 534 | 465 | 471 |
Retained Earnings | $ 6,543 | 6,574 | $ 6,597 |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Income Taxes | 7 | ||
Operating Lease Right-of-Use Assets | 882 | ||
Property, Plant and Equipment, less Accumulated Depreciation | (16) | ||
Operating Lease Liabilities due Within One Year | 204 | ||
Operating Lease Liabilities | 684 | ||
Long Term Debt and Finance Leases | 14 | ||
Other Long Term Liabilities | (6) | ||
Retained Earnings | $ (23) |
Accounting Policies - Reconcili
Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 868 | $ 801 | $ 896 | |
Restricted Cash | 58 | 66 | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 926 | $ 873 | $ 962 | $ 1,110 |
Net Sales - Schedule of Disaggr
Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 3,802 | $ 3,928 | $ 11,032 | $ 11,599 |
Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 3,233 | 3,314 | 9,347 | 9,766 |
Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 292 | 293 | 855 | 864 |
Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 171 | 170 | 488 | 514 |
Chemical sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 99 | 146 | 322 | 437 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 7 | 5 | 20 | 18 |
Americas | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 2,049 | 2,107 | 5,896 | 6,054 |
Americas | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,624 | 1,638 | 4,658 | 4,693 |
Americas | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 185 | 175 | 496 | 488 |
Americas | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 136 | 145 | 406 | 426 |
Americas | Chemical sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 99 | 146 | 322 | 437 |
Americas | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 5 | 3 | 14 | 10 |
Europe, Middle East and Africa | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,205 | 1,290 | 3,567 | 3,880 |
Europe, Middle East and Africa | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,109 | 1,197 | 3,264 | 3,565 |
Europe, Middle East and Africa | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 82 | 86 | 272 | 282 |
Europe, Middle East and Africa | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 12 | 6 | 27 | 28 |
Europe, Middle East and Africa | Chemical sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Europe, Middle East and Africa | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 2 | 1 | 4 | 5 |
Asia Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 548 | 531 | 1,569 | 1,665 |
Asia Pacific | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 500 | 479 | 1,425 | 1,508 |
Asia Pacific | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 25 | 32 | 87 | 94 |
Asia Pacific | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 23 | 19 | 55 | 60 |
Asia Pacific | Chemical sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Asia Pacific | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 0 | $ 1 | $ 2 | $ 3 |
Net Sales - Schedule of Balance
Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, current | $ 32 | $ 39 |
Deferred revenue, noncurrent | 30 | $ 39 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance at December 31, 2018 | 78 | |
Revenue deferred during period | 112 | |
Revenue recognized during period | (128) | |
Impact of foreign currency translation | 0 | |
Balance at September 30, 2019 | $ 62 |
Costs Associated with Rationa_3
Costs Associated with Rationalization Programs - Roll-Forward of the Rationalization Liability Between Periods (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 81 | ||
2019 Charges | 131 | ||
Incurred, including net Foreign Currency Translation of $(6) million and $0 million, respectively | (52) | ||
Reversed to the Statement of Operations | $ (1) | (3) | $ (13) |
Ending balance | 157 | ||
Associate Severance and Other Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 80 | ||
2019 Charges | 117 | ||
Incurred, including net Foreign Currency Translation of $(6) million and $0 million, respectively | (38) | ||
Reversed to the Statement of Operations | (3) | ||
Ending balance | 156 | ||
Foreign currency translation gain | 6 | ||
Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1 | ||
2019 Charges | 14 | ||
Incurred, including net Foreign Currency Translation of $(6) million and $0 million, respectively | (14) | ||
Reversed to the Statement of Operations | 0 | ||
Ending balance | 1 | ||
Foreign currency translation gain | $ 0 |
Costs Associated with Rationa_4
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | Mar. 18, 2019facilityposition | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)employee | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Expected number of positions eliminated | employee | 1,200 | |||||
Rationalizations accrual balance | $ 157 | $ 157 | $ 81 | |||
Rationalizations | 21 | $ 5 | 128 | $ 40 | ||
Rationalization reversals | 1 | 3 | 13 | |||
Rationalization charges incurred to date | $ 720 | |||||
Rationalization charges expected to be incurred in future periods | 110 | $ 110 | ||||
Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected number of positions eliminated | employee | 1,200 | |||||
Rationalizations | 20 | 1 | $ 123 | 33 | ||
Number of positions eliminated | employee | 250 | |||||
Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 1 | 4 | $ 5 | 7 | ||
Number of positions eliminated | employee | 300 | |||||
Modernizing Tire Manufacturing Facilities in Germany | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of facilities affected | facility | 2 | |||||
Expected number of positions eliminated | position | 1,100 | |||||
Modernizing Tire Manufacturing Facilities in Germany | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations accrual balance | 96 | $ 96 | ||||
Voluntary Buy-outs, Gadsden, Alabama | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations accrual balance | 6 | 6 | ||||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations accrual balance | 27 | 27 | ||||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 11 | 105 | ||||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 1 | 2 | 5 | 4 | ||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations accrual balance | 18 | 18 | ||||
Employee Severance | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 1 | 27 | ||||
Employee Severance | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 3 | |||||
Americas Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations accrual balance | 5 | 5 | ||||
Americas Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | $ 9 | $ 18 | ||||
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | Current Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | 6 | |||||
Philippsburg Restructuring | Prior Year Plans | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Rationalizations | $ 2 | $ 11 | ||||
Amiens Restructuring Plan | Amiens Labor Claims | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Loss contingency, number of plaintiffs | employee | 850 |
Costs Associated with Rationa_5
Costs Associated with Rationalization Programs - Net Rationalization Charges Included in Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 21 | $ 5 | $ 128 | $ 40 |
Asset Write-off and Accelerated Depreciation Charges | 1 | 0 | 2 | 2 |
Current Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 20 | 1 | 123 | 33 |
Current Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 17 | 0 | 115 | 32 |
Current Year Plans | Benefit Plan Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 0 | 1 | 0 |
Current Year Plans | Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 3 | 1 | 7 | 1 |
Prior Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 1 | 4 | 5 | 7 |
Prior Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | (2) | 1 | (2) | (6) |
Prior Year Plans | Benefit Plan Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 1 | 0 | 0 | 0 |
Prior Year Plans | Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 2 | $ 3 | $ 7 | $ 13 |
Other (Income) Expense - Schedu
Other (Income) Expense - Schedule of Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Gain on TireHub transaction, net of transaction costs | $ 0 | $ (287) | $ 0 | $ (273) |
Non-service related pension and other postretirement benefits cost | 28 | 33 | 85 | 92 |
Financing fees and financial instruments expense | 8 | 9 | 26 | 27 |
Net foreign currency exchange (gains) losses | 3 | (2) | (15) | (7) |
General and product liability expense - discontinued products | 2 | 5 | 10 | 3 |
Royalty income | (5) | (5) | (15) | (15) |
Net (gains) losses on asset sales | 1 | (1) | (5) | (1) |
Interest income | (5) | (6) | (13) | (12) |
Miscellaneous expense | 3 | 1 | 1 | 15 |
Other (income) expense | $ 35 | $ (253) | $ 74 | $ (171) |
Other (Income) Expense - Narrat
Other (Income) Expense - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other (Income) Expense [Line Items] | ||||
Deconsolidation, gain (loss), gross | $ 286 | $ 286 | ||
Professional fees | (1) | 13 | ||
Other (income) expense | $ 35 | (253) | $ 74 | (171) |
Loss from catastrophes | $ 5 | $ 2 | $ 5 | 12 |
Accounting Standards Update, Pension and Postretirement Benefits Cost | Restatement Adjustment | ||||
Other (Income) Expense [Line Items] | ||||
Other (income) expense | $ 9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||||
Tax expense | $ 31 | $ 159 | $ 63 | $ 211 | ||
Income before income taxes | 121 | 513 | 165 | 809 | ||
Other adjustments, charges (benefits) | (6) | 31 | 7 | 10 | ||
Provisional income tax expense (benefit) | 11 | 14 | ||||
Discrete adjustments, amount | (5) | $ (4) | ||||
Tax credit carryforwards, foreign | 637 | 637 | ||||
Domestic Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Valuation allowance | 114 | 114 | $ 113 | |||
Foreign Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Valuation allowance | 226 | 226 | $ 204 | |||
Tax credit carryforward, valuation allowance | $ 103 | $ 103 | ||||
Luxembourg | ||||||
Income Tax Contingency [Line Items] | ||||||
Change in enacted tax rate, amount | $ 6 | |||||
Japan and Singapore | ||||||
Income Tax Contingency [Line Items] | ||||||
Other adjustments, charges (benefits) | $ 25 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per share — basic: | ||||
Goodyear net income | $ 88 | $ 351 | $ 81 | $ 583 |
Weighted average shares outstanding (shares) | 233 | 236 | 233 | 238 |
Earnings (loss) per common share — basic (dollars per share) | $ 0.38 | $ 1.49 | $ 0.35 | $ 2.45 |
Earnings per share — diluted: | ||||
Goodyear net income | $ 88 | $ 351 | $ 81 | $ 583 |
Weighted average shares outstanding (shares) | 233 | 236 | 233 | 238 |
Dilutive effect of stock options and other dilutive securities (shares) | 1 | 2 | 1 | 3 |
Weighted average shares outstanding — diluted (shares) | 234 | 238 | 234 | 241 |
Earnings (loss) per common share — diluted (dollars per share) | $ 0.38 | $ 1.48 | $ 0.35 | $ 2.42 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Underwater Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares excluded from weighted average shares outstanding (shares) | 3 | 2 | 2 | 2 |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Segment Reporting Information | ||||
Net Sales | $ 3,802 | $ 3,928 | $ 11,032 | $ 11,599 |
Rationalizations | 21 | 5 | 128 | 40 |
Interest expense | 88 | 82 | 261 | 236 |
Other (Income) Expense (Note 4) | 35 | (253) | 74 | (171) |
Asset write-offs and accelerated depreciation | 1 | 0 | 2 | 2 |
Income before Income Taxes | 121 | 513 | 165 | 809 |
Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 21 | 5 | 128 | 37 |
Income before Income Taxes | 294 | 362 | 703 | 967 |
Segment Reconciling Items | ||||
Business Segment Reporting Information | ||||
Rationalizations | 21 | 5 | 128 | 40 |
Interest expense | 88 | 82 | 261 | 236 |
Other (Income) Expense (Note 4) | 35 | (253) | 74 | (171) |
Asset write-offs and accelerated depreciation | 1 | 0 | 2 | 2 |
Corporate incentive compensation plans | 13 | (1) | 28 | 6 |
Retained expenses of divested operations | 1 | 2 | 7 | 7 |
Other | ||||
Business Segment Reporting Information | ||||
Other | 14 | 14 | 38 | 38 |
Americas | ||||
Business Segment Reporting Information | ||||
Net Sales | 2,049 | 2,107 | 5,896 | 6,054 |
Americas | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 9 | 0 | 18 | 3 |
Income before Income Taxes | 175 | 194 | 398 | 475 |
Europe, Middle East and Africa | ||||
Business Segment Reporting Information | ||||
Net Sales | 1,205 | 1,290 | 3,567 | 3,880 |
Asset write-offs and accelerated depreciation | 1 | 0 | 2 | 2 |
Europe, Middle East and Africa | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 12 | 5 | 110 | 31 |
Income before Income Taxes | 66 | 111 | 164 | 289 |
Asia Pacific | ||||
Business Segment Reporting Information | ||||
Net Sales | 548 | 531 | 1,569 | 1,665 |
Asia Pacific | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 0 | 0 | 0 | 3 |
Income before Income Taxes | $ 53 | $ 57 | $ 141 | $ 203 |
Business Segments - Charges and
Business Segments - Charges and Credits Attributable to the SBUs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Rationalizations | $ 21 | $ 5 | $ 128 | $ 40 |
Total Net (Gains) Losses on Asset Sales | 1 | (288) | (5) | (274) |
Asset write-offs and accelerated depreciation | 1 | 0 | 2 | 2 |
Gain (loss) on investments | 0 | 287 | 0 | 273 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total Net (Gains) Losses on Asset Sales | 0 | (288) | 0 | (276) |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total Net (Gains) Losses on Asset Sales | 1 | 0 | (5) | 2 |
Asset write-offs and accelerated depreciation | 1 | 0 | 2 | 2 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | 21 | 5 | 128 | 37 |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | 9 | 0 | 18 | 3 |
Operating Segments | Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | 12 | 5 | 110 | 31 |
Operating Segments | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | 0 | 0 | 0 | 3 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Rationalizations | $ 0 | $ 0 | $ 0 | $ 3 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 6 years 10 months 24 days |
Option to terminate, term | 1 year |
Initial term of contract | 12 months |
Lease not yet commenced, amount | $ 34 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 1 year |
Renewal term | 1 year |
Term of contract | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 50 years |
Renewal term | 50 years |
Term of contract | 15 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease Expense | $ 73 | $ 221 |
Finance Lease Expense: | ||
Amortization of ROU Assets | 3 | 8 |
Interest on Lease Liabilities | 6 | 16 |
Short Term Lease Expense | 1 | 4 |
Variable Lease Expense | 2 | 5 |
Sublease Income | (3) | (11) |
Total Lease Expense | $ 82 | $ 243 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | |
Operating Cash Flows for Operating Leases | $ 201 |
Operating Cash Flows for Finance Leases | 16 |
Financing Cash Flows for Finance Leases | 5 |
ROU Assets Obtained in Exchange for Lease Obligations | |
Operating Leases | 124 |
Finance Leases | $ 34 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases | |||
Operating Lease ROU Assets | $ 828 | $ 882 | $ 0 |
Operating Lease Liabilities due Within One Year | 197 | 204 | 0 |
Operating Lease Liabilities | 642 | $ 684 | 0 |
Total Operating Lease Liabilities | 839 | ||
Finance Leases | |||
Property, Plant and Equipment, at cost | 256 | ||
Accumulated Depreciation | (47) | ||
Property, Plant and Equipment, net | 209 | ||
Long Term Debt and Finance Leases due Within One Year | 7 | ||
Long Term Debt and Finance Leases | 238 | ||
Total Finance Lease Liabilities | $ 245 | $ 37 | |
Weighted Average Remaining Lease Term | |||
Operating Leases | 6 years 10 months 24 days | ||
Finance Leases | 32 years | ||
Weighted Average Discount Rate | |||
Operating Leases | 6.72% | ||
Finance Leases | 8.47% |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities - ASC 842 (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 (excluding the nine months ended September 30) | $ 64 | |
2020 | 227 | |
2021 | 180 | |
2022 | 129 | |
2023 | 100 | |
Thereafter | 383 | |
Total Lease Payments | 1,083 | |
Less: Imputed Interest | 244 | |
Total | 839 | |
Finance Leases | ||
2019 (excluding the nine months ended September 30) | 6 | |
2020 | 25 | |
2021 | 35 | |
2022 | 21 | |
2023 | 20 | |
Thereafter | 706 | |
Total Lease Payments | 813 | |
Less: Imputed Interest | 568 | |
Total | $ 245 | $ 37 |
Leases - Future Maturities of_2
Leases - Future Maturities of Lease Liabilities - ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases | |
Minimum lease payments, 2019 | $ 8 |
Minimum lease payments, 2020 | 7 |
Minimum lease payments, 2021 | 18 |
Minimum lease payments, 2022 | 3 |
Minimum lease payments, 2023 | 2 |
Minimum lease payments, 2024 and Beyond | 23 |
Minimum lease payments | 61 |
Imputed interest, 2019 | (3) |
Imputed interest, 2020 | (3) |
Imputed interest, 2021 | (3) |
Imputed interest, 2022 | (1) |
Imputed interest, 2023 | (1) |
Imputed interest, 2024 and Beyond | (13) |
Imputed interest | (24) |
Present value, 2019 | 5 |
Present value, 2020 | 4 |
Present value, 2021 | 15 |
Present value, 2022 | 2 |
Present value, 2023 | 1 |
Present value, 2024 and Beyond | 10 |
Present value | 37 |
Operating Leases | |
Minimum lease payments, 2019 | 266 |
Minimum lease payments, 2020 | 214 |
Minimum lease payments, 2021 | 161 |
Minimum lease payments, 2022 | 110 |
Minimum lease payments, 2023 | 84 |
Minimum lease payments, 2024 and Beyond | 391 |
Total Lease Payments | 1,226 |
Minimum sublease rentals, 2019 | (15) |
Minimum sublease rentals, 2020 | (12) |
Minimum sublease rentals, 2021 | (8) |
Minimum sublease rentals, 2022 | (5) |
Minimum sublease rentals, 2023 | (3) |
Minimum sublease rentals, 2024 and Beyond | (6) |
Minimum sublease rentals | (49) |
Net future minimum payments due, 2019 | 251 |
Net future minimum payments due, 2020 | 202 |
Net future minimum payments due, 2021 | 153 |
Net future minimum payments due, 2022 | 105 |
Net future minimum payments due, 2023 | 81 |
Net future minimum payments due, 2024 and Beyond | 385 |
Net future minimum payments due | 1,177 |
Imputed interest | (263) |
Present value | $ 914 |
Financing Arrangements and De_3
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Notes payable | $ 3,302 | $ 3,314 |
Credit arrangements | 9,036 | |
Credit arrangements, unused amount | $ 2,521 | |
Debt, percentage bearing variable interest rate | 42.00% | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Credit arrangements | $ 8,301 | |
Credit arrangements, unused amount | 2,289 | |
Short-term Debt | ||
Debt Instrument [Line Items] | ||
Credit arrangements | 735 | |
Credit arrangements, unused amount | $ 232 | |
Variable Rate Credit Arrangements | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.18% |
Financing Arrangements and De_4
Financing Arrangements and Derivative Financial Instruments - Schedule of Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Notes Payable and Overdrafts | $ 486 | $ 410 |
Long term debt and capital leases due within one year | ||
Long Term Debt and Finance Leases due Within One Year | 610 | 243 |
Total obligations due within one year | 1,096 | 653 |
Other domestic and foreign debt | ||
Long term debt and capital leases due within one year | ||
Long Term Debt and Finance Leases due Within One Year | $ 231 | $ 211 |
Weighted average interest rate | 3.84% | 5.35% |
Long term debt and finance leases due within one year | ||
Long term debt and capital leases due within one year | ||
Weighted average interest rate | 6.43% | 4.57% |
8.75% Notes Due 2020 | Senior Notes | ||
Long term debt and capital leases due within one year | ||
Long Term Debt and Finance Leases due Within One Year | $ 280 | $ 0 |
Other domestic and foreign debt | ||
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Notes Payable and Overdrafts | $ 346 | $ 288 |
Notes Payable and Overdrafts | ||
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Weighted average interest rate | 7.06% | 8.03% |
Foreign Line of Credit | Chinese Credit Facilities | Line of Credit | ||
Long term debt and capital leases due within one year | ||
Long Term Debt and Finance Leases due Within One Year | $ 99 | $ 32 |
Weighted average interest rate | 4.87% | 5.03% |
Foreign Line of Credit | Mexican credit facilities | Line of Credit | ||
Long term debt and capital leases due within one year | ||
Weighted average interest rate | 4.02% | 4.30% |
Foreign Line of Credit | Line of Credit | Chinese Credit Facilities | ||
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Notes Payable and Overdrafts | $ 140 | $ 122 |
Financing Arrangements and De_5
Financing Arrangements and Derivative Financial Instruments - Schedule of Long Term Debt and Financing Arrangements (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 5,975,000,000 | $ 5,352,000,000 | |
Unamortized deferred financing fees | (30,000,000) | (36,000,000) | |
Total long term debt excluding capital leases | 5,945,000,000 | 5,316,000,000 | |
Finance lease obligations | 245,000,000 | 37,000,000 | |
Long-term debt and capital lease obligations, including current maturities | 6,190,000,000 | 5,353,000,000 | |
Less portion due within one year | (610,000,000) | (243,000,000) | |
Long Term Debt and Finance Leases | 5,580,000,000 | $ 5,124,000,000 | 5,110,000,000 |
Secured Debt | Chinese credit facilities | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Less portion due within one year | (99,000,000) | (32,000,000) | |
Senior Notes | 8.75% due 2020 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | 280,000,000 | 278,000,000 | |
Less portion due within one year | $ (280,000,000) | $ 0 | |
Interest rate, stated percentage | 8.75% | 8.75% | |
Senior Notes | 5.125% due 2023 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 1,000,000,000 | $ 1,000,000,000 | |
Interest rate, stated percentage | 5.125% | 5.125% | |
Senior Notes | 5% due 2026 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 900,000,000 | $ 900,000,000 | |
Interest rate, stated percentage | 5.00% | 5.00% | |
Senior Notes | 4.875% due 2027 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 700,000,000 | $ 700,000,000 | |
Interest rate, stated percentage | 4.875% | 4.875% | |
Senior Notes | 7% due 2028 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 150,000,000 | $ 150,000,000 | |
Interest rate, stated percentage | 7.00% | 7.00% | |
Euro Notes | 3.75% Euro Notes due 2023 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 272,000,000 | $ 286,000,000 | |
Interest rate, stated percentage | 3.75% | 3.75% | |
Line of Credit | Revolving Credit Facility | First lien revolving credit facility due 2021 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 300,000,000 | $ 0 | |
Interest rate | 3.21% | 0.00% | |
Line of Credit | Revolving Credit Facility | European revolving credit facility due 2024 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 356,000,000 | $ 0 | |
Interest rate | 3.39% | 0.00% | |
Line of Credit | Secured Debt | Second lien term loan facility due 2025 | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 400,000,000 | $ 400,000,000 | |
Interest rate | 4.06% | 4.46% | |
Line of Credit | Secured Debt | Pan-European accounts receivable facility | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 306,000,000 | $ 335,000,000 | |
Interest rate | 0.96% | 1.01% | |
Line of Credit | Foreign Line of Credit | Mexican credit facilities | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 200,000,000 | $ 200,000,000 | |
Interest rate | 4.02% | 4.30% | |
Line of Credit | Foreign Line of Credit | Chinese credit facilities | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 202,000,000 | $ 219,000,000 | |
Less portion due within one year | $ (99,000,000) | $ (32,000,000) | |
Interest rate | 4.87% | 5.03% | |
Other Foreign and Domestic Debt | |||
Long-term Debt and Lease Obligation [Abstract] | |||
Long-term debt, before deferred financing fees | $ 909,000,000 | $ 884,000,000 | |
Less portion due within one year | $ (231,000,000) | $ (211,000,000) | |
Interest rate | 3.84% | 5.35% |
Financing Arrangements and De_6
Financing Arrangements and Derivative Financial Instruments - Notes and Credit Facilities Narrative (Details) | Mar. 27, 2019EUR (€) | Mar. 31, 2018 | Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Oct. 18, 2018EUR (€) |
Debt Instrument [Line Items] | |||||||
Notes payable | $ 3,302,000,000 | $ 3,314,000,000 | |||||
Long-term debt, before deferred financing fees | 5,975,000,000 | 5,352,000,000 | |||||
Long-Term debt and finance leases due within one year | 610,000,000 | 243,000,000 | |||||
Credit arrangements, unused amount | 2,521,000,000 | ||||||
Short-term debt | 486,000,000 | 410,000,000 | |||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 2,000,000,000 | ||||||
Additional borrowing capacity which may be requested | 250,000,000 | ||||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 800,000,000 | ||||||
Letters of credit outstanding | 37,000,000 | 37,000,000 | |||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Annual commitment fee on undrawn amounts | 0.30% | ||||||
Maximum borrowing base increase based on value of certain cash | 200,000,000 | ||||||
Borrowing base amount below stated amount | 252,000,000 | ||||||
Long-term debt, before deferred financing fees | 300,000,000 | 0 | |||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | $ 400,000,000 | 400,000,000 | |||||
Leverage ratio threshold | 1.25 | 1.25 | |||||
Debt instrument, optional reduction of basis spreads on variable rates | 0.25% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Debt instrument, basis spread on reference rate | 1.00% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Alternative Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on reference rate | 0.50% | ||||||
European Revolving Credit Facility | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 75,000,000 | ||||||
Letters of credit outstanding | $ 0 | 0 | |||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 800,000,000 | € 800,000,000 | € 550,000,000 | ||||
Additional borrowing capacity which may be requested | € | € 200,000,000 | ||||||
Basis spread reduction | 0.25% | ||||||
Commitment fee percentage reduction | 0.05% | ||||||
Long-term debt, before deferred financing fees | 356,000,000 | 0 | |||||
Commitment fee percentage | 0.25% | ||||||
Amount outstanding | 0 | ||||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | EURIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||
European Revolving Credit Facility | Line of Credit | German Tranche | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 180,000,000 | ||||||
Amount outstanding | 92,000,000 | 100,000,000 | |||||
European Revolving Credit Facility | Line of Credit | All-borrower Tranche | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 620,000,000 | ||||||
Amount outstanding | 235,000,000 | 256,000,000 | |||||
European Revolving Credit Facility | Line of Credit | Swingline Loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 175,000,000 | ||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 320,000,000 | ||||||
Long-term debt, before deferred financing fees | 306,000,000 | 335,000,000 | |||||
Current borrowing capacity | 281,000,000 | 306,000,000 | € 293,000,000 | 335,000,000 | |||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 30,000,000 | ||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 450,000,000 | ||||||
Accounts Receivable Factoring Facilities | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Off-balance sheet receivables sold | 539,000,000 | 568,000,000 | |||||
Mexican credit facilities | Line of Credit | Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | 200,000,000 | 200,000,000 | |||||
Current borrowing capacity | 340,000,000 | ||||||
Chinese Credit Facilities | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 717,000,000 | 672,000,000 | |||||
Long-Term debt and finance leases due within one year | 99,000,000 | 32,000,000 | |||||
Credit arrangements, unused amount | 107,000,000 | 116,000,000 | |||||
Amount outstanding | 342,000,000 | 341,000,000 | |||||
Chinese Credit Facilities | Foreign Line of Credit | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Short-term debt | 140,000,000 | 122,000,000 | |||||
Chinese Credit Facilities | Line of Credit | Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | 202,000,000 | 219,000,000 | |||||
Long-Term debt and finance leases due within one year | $ 99,000,000 | $ 32,000,000 |
Financing Arrangements and De_7
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Foreign currency derivatives, net transaction gains (losses) | $ 31 | $ 7 | $ 40 | $ 52 | |
Notional amount | 1,616 | 1,616 | $ 1,240 | ||
Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Notional amount | 345 | 345 | 347 | ||
Accounts receivable | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - asset, not designated as hedging instruments | 24 | 24 | 7 | ||
Fair value - asset, designated as hedging instruments | 15 | 15 | 9 | ||
Other current liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - liability, not designated as hedging instruments | (3) | (3) | (6) | ||
Fair value - liability, designated as hedging instruments | (1) | (1) | (1) | ||
Other assets | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - asset, designated as hedging instruments | 4 | 4 | 2 | ||
Other long term liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - liability, designated as hedging instruments | $ 0 | $ 0 | $ 0 |
Financing Arrangements and De_8
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Deferred gains expected to be reclassified | $ 12 | |||
Foreign currency hedge contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount of gains (losses) deferred to AOCL | $ 14 | $ 1 | 18 | $ 9 |
Foreign currency hedge contracts | Cost of Goods Sold | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Reclassification adjustment for amounts recognized in Cost of Goods Sold (CGS)(1) | $ (3) | $ 1 | $ (9) | $ 8 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Investments | $ 10 | $ 10 |
Foreign Exchange Contracts | 43 | 18 |
Total Assets at Fair Value | 53 | 28 |
Liabilities: | ||
Foreign Exchange Contracts | 4 | 7 |
Total Liabilities at Fair Value | 4 | 7 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 10 | 10 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 10 | 10 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 43 | 18 |
Total Assets at Fair Value | 43 | 18 |
Liabilities: | ||
Foreign Exchange Contracts | 4 | 7 |
Total Liabilities at Fair Value | 4 | 7 |
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 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Long-Term Fixed Rate and Variable Rate Debt Excluding Capital Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | $ 5,945 | $ 5,316 |
Notes Payable and Overdrafts | 486 | 410 |
Fixed Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | 3,424 | 3,609 |
Fair value — liability | 3,477 | 3,443 |
Notes Payable and Overdrafts | 224 | 230 |
Variable Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | 2,521 | 1,707 |
Fair value — liability | 2,497 | 1,689 |
Notes Payable and Overdrafts | $ 262 | $ 180 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 3,717 | $ 3,496 |
Pension, Savings and Other Po_2
Pension, Savings and Other Postretirement Benefit Plans - Defined Benefit Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost | $ 0 | $ 1 | $ 2 | $ 3 |
Interest cost | 44 | 39 | 130 | 118 |
Expected return on plan assets | (56) | (55) | (167) | (164) |
Amortization of net losses | 28 | 28 | 84 | 84 |
Net periodic pension cost | 16 | 13 | 49 | 41 |
Net curtailments/settlements/termination benefits | 1 | 0 | 1 | 3 |
Total defined benefit pension cost | 17 | 13 | 50 | 44 |
Non-U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost | 6 | 7 | 20 | 21 |
Interest cost | 17 | 17 | 52 | 52 |
Expected return on plan assets | (14) | (17) | (44) | (53) |
Amortization of prior service cost | 0 | 0 | 1 | 0 |
Amortization of net losses | 8 | 7 | 22 | 22 |
Net periodic pension cost | 17 | 14 | 51 | 42 |
Net curtailments/settlements/termination benefits | 0 | 10 | 0 | 10 |
Total defined benefit pension cost | $ 17 | $ 24 | $ 51 | $ 52 |
Pension, Savings and Other Po_3
Pension, Savings and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, cost | $ 27 | $ 27 | $ 83 | $ 84 |
Postretirement benefits expense (credit) | 2 | 2 | 5 | 8 |
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Loss due to settlement | $ 9 | |||
Payment for settlement | $ 74 | |||
Contributions to pension plans | 11 | 28 | ||
Non-U.S. | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | 25 | 25 | ||
Non-U.S. | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | $ 50 | $ 50 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 7 | $ 6 | $ 18 | $ 11 |
Unearned compensation cost related to the unvested portion of all stock-based awards | $ 42 | $ 42 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 1.7 | |||
Weighted average fair value per share granted (dollars per share) | $ 19.56 | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 0.5 | |||
Weighted average fair value per share granted (dollars per share) | $ 18.01 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, zł in Millions, $ in Millions | 9 Months Ended | |||||
Sep. 30, 2019USD ($)claimemployee | Sep. 30, 2019EUR (€)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017PLN (zł) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||||
Environmental matters liability | $ 49 | $ 45 | ||||
Workers' compensation liability | $ 220 | 224 | ||||
Period covered by liability | 10 years | |||||
Off-balance sheet financial guarantees written and other commitments | $ 71 | 73 | ||||
Workers' Compensation | ||||||
Loss Contingencies [Line Items] | ||||||
Potential workers' compensation liability in excess of recorded amount | 30 | |||||
General Product Liability Member | ||||||
Loss Contingencies [Line Items] | ||||||
Potential product liability or claim, including related legal fees | 340 | 322 | ||||
Asbestos Related Product Liability | ||||||
Loss Contingencies [Line Items] | ||||||
Potential product liability or claim, including related legal fees | $ 161 | 166 | ||||
Number of asbestos claims settled and dismissed, to date | claim | 151,600 | 151,600 | ||||
Sum of accrued asbestos-related liability and gross payments to date, including legal costs | $ 557 | 545 | ||||
Loss contingency, receivable | $ 103 | 108 | ||||
Percentage of asbestos claim related losses recoverable through insurance | 65.00% | 65.00% | ||||
Aggregate limits of excess insurance policies | 565 | |||||
Loss Contingency, Receivable, Current | $ 13 | 13 | ||||
Amiens Labor Claims | ||||||
Loss Contingencies [Line Items] | ||||||
Wrongful termination or other claims against company | $ 131 | € 120 | ||||
Amiens Labor Claims | Amiens Restructuring Plan | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, number of plaintiffs | employee | 850 | |||||
Unfavorable Regulatory Action | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantor obligations, maximum exposure | $ 41 | zł 165 | ||||
Insurance Claims | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantor obligations, maximum exposure | $ 29 | $ 46 | ||||
Other Current Liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Environmental matters liability, current | 12 | 10 | ||||
Other Current Liabilities | General Product Liability Member | ||||||
Loss Contingencies [Line Items] | ||||||
Potential product liability or claim, including related legal fees | 72 | 57 | ||||
Compensation and Benefits | ||||||
Loss Contingencies [Line Items] | ||||||
Workers' compensation liability, current | 35 | $ 42 | ||||
Accounts receivable | SRI | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification asset | 5 | |||||
Other Assets | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification asset | $ 26 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Summary of Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | |
Number of claims filed | ||
Pending claims, beginning of period | 43,100 | 54,300 |
New claims filed | 1,200 | 1,300 |
Claims settled/dismissed | (4,400) | (12,500) |
Pending claims, end of period | 39,900 | 43,100 |
Payments | $ | $ 17 | $ 18 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | Oct. 07, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Feb. 02, 2017 |
Class of Stock [Line Items] | |||||||
Cash dividends paid | $ 111,000,000 | $ 100,000,000 | |||||
Dividends Earned on Stock-based Compensation Plans | $ 1,000,000 | ||||||
Cash dividends declared (dollars per share) | $ 0.16 | $ 0.14 | $ 0.48 | $ 0.42 | |||
Payments for repurchase of stock | $ 0 | $ 200,000,000 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends paid | $ 111,000,000 | ||||||
Stock repurchase program, authorized amount | $ 2,100,000,000 | ||||||
Shares repurchased (in shares) | 52,905,959 | ||||||
Average price of shares repurchased (dollars per share) | $ 28.99 | ||||||
Payments for repurchase of stock | $ 1,534,000,000 | ||||||
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased (in shares) | 0 | ||||||
Common Stock | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends declared (dollars per share) | $ 0.16 | ||||||
Cash dividends declared | $ 37,000,000 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | $ 5,070 | $ 4,850 |
Balance at end of period | 5,035 | 5,000 |
Foreign Currency Translation Adjustment | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (1,160) | (915) |
Other comprehensive income (loss) before reclassifications, net of tax | (82) | (210) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Balance at end of period | (1,242) | (1,125) |
Unrecognized Net Actuarial Losses and Prior Service Costs | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (2,923) | (3,052) |
Other comprehensive income (loss) before reclassifications, net of tax | 1 | (1) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 78 | 92 |
Balance at end of period | (2,844) | (2,961) |
Deferred Derivative Gains (Losses) | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | 7 | (9) |
Other comprehensive income (loss) before reclassifications, net of tax | 14 | 6 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (8) | 6 |
Balance at end of period | 13 | 3 |
Total | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (4,076) | (3,976) |
Other comprehensive income (loss) before reclassifications, net of tax | (67) | (205) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 70 | 98 |
Balance at end of period | $ (4,073) | $ (4,083) |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Loss - Reclassifications out of AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (Income) Expense | $ 35 | $ (253) | $ 74 | $ (171) |
United States and Foreign Taxes | 31 | 159 | 63 | 211 |
Cost of Goods Sold | 2,965 | 3,028 | 8,699 | 8,953 |
Goodyear net income | 88 | 351 | 81 | 583 |
Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Goodyear net income | 23 | 36 | 70 | 98 |
Unrecognized Net Actuarial Losses and Prior Service Costs Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (Income) Expense | 34 | 34 | 102 | 103 |
Income (Loss) Attributable to Parent, before Tax | 34 | 45 | 102 | 120 |
United States and Foreign Taxes | (8) | (10) | (24) | (28) |
Goodyear net income | (26) | (35) | (78) | (92) |
Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent, Due to Divestitures | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (Income) Expense | 0 | 11 | 0 | 17 |
Deferred Derivative (Gains) Losses Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
United States and Foreign Taxes | 0 | 0 | 1 | (2) |
Cost of Goods Sold | (3) | 1 | (9) | 8 |
Goodyear net income | $ (3) | $ 1 | $ (8) | $ 6 |
Consolidating Financial Infor_3
Consolidating Financial Information - Narrative (Details) - Senior Notes - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
8.75% due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 282,000,000 | |
Interest rate, stated percentage | 8.75% | 8.75% |
5.125% due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000,000 | |
Interest rate, stated percentage | 5.125% | 5.125% |
5% due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 900,000,000 | |
Interest rate, stated percentage | 5.00% | 5.00% |
4.875% due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 700,000,000 | |
Interest rate, stated percentage | 4.875% | 4.875% |
Consolidating Financial Infor_4
Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | |||||||
Cash and Cash Equivalents | $ 868 | $ 801 | $ 896 | ||||
Accounts Receivable, net | 2,748 | 2,030 | |||||
Accounts Receivable From Affiliates | 0 | 0 | |||||
Inventories | 2,965 | 2,856 | |||||
Prepaid Expenses and Other Current Assets | 280 | 238 | |||||
Total Current Assets | 6,861 | 5,925 | |||||
Goodwill | 550 | 569 | |||||
Intangible Assets | 134 | 136 | |||||
Deferred Income Taxes | 1,839 | $ 1,854 | 1,847 | ||||
Other Assets | 1,055 | 1,136 | |||||
Investments in Subsidiaries | 0 | 0 | |||||
Operating Lease Right-of-Use Assets | 828 | 882 | 0 | ||||
Property, Plant and Equipment, less Accumulated Depreciation | 7,032 | 7,243 | 7,259 | ||||
Total Assets | 18,299 | 16,872 | |||||
Current Liabilities: | |||||||
Accounts Payable — Trade | 2,651 | 2,920 | |||||
Accounts Payable to Affiliates | 0 | 0 | |||||
Compensation and Benefits | 539 | 471 | |||||
Other Current Liabilities | 690 | 737 | |||||
Notes Payable and Overdrafts | 486 | 410 | |||||
Operating Lease Liabilities due Within One Year | 197 | 204 | 0 | ||||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 610 | 243 | |||||
Total Current Liabilities | 5,173 | 4,781 | |||||
Operating Lease Liabilities | 642 | 684 | 0 | ||||
Long Term Debt and Finance Leases | 5,580 | 5,124 | 5,110 | ||||
Compensation and Benefits | 1,244 | 1,345 | |||||
Deferred Income Taxes | 91 | 95 | |||||
Other Long Term Liabilities | 534 | $ 465 | 471 | ||||
Total Liabilities | 13,264 | 11,802 | |||||
Commitments and Contingent Liabilities | |||||||
Goodyear Shareholders’ Equity: | |||||||
Common Stock | 233 | 232 | |||||
Other Equity | 4,602 | 4,632 | |||||
Goodyear Shareholders’ Equity | 4,835 | 4,864 | |||||
Minority Shareholders’ Equity — Nonredeemable | 200 | 206 | |||||
Total Shareholders’ Equity | 5,035 | $ 5,049 | 5,070 | $ 5,000 | $ 4,844 | $ 4,850 | |
Total Liabilities and Shareholders’ Equity | 18,299 | 16,872 | |||||
Reportable Legal Entities | Parent Company | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | 151 | 127 | |||||
Accounts Receivable, net | 808 | 672 | |||||
Accounts Receivable From Affiliates | 325 | 294 | |||||
Inventories | 1,539 | 1,425 | |||||
Prepaid Expenses and Other Current Assets | 85 | 76 | |||||
Total Current Assets | 2,908 | 2,594 | |||||
Goodwill | 24 | 24 | |||||
Intangible Assets | 116 | 117 | |||||
Deferred Income Taxes | 1,448 | 1,422 | |||||
Other Assets | 494 | 524 | |||||
Investments in Subsidiaries | 3,732 | 3,758 | |||||
Operating Lease Right-of-Use Assets | 548 | 0 | |||||
Property, Plant and Equipment, less Accumulated Depreciation | 2,418 | 2,482 | |||||
Total Assets | 11,688 | 10,921 | |||||
Current Liabilities: | |||||||
Accounts Payable — Trade | 869 | 960 | |||||
Accounts Payable to Affiliates | 0 | 0 | |||||
Compensation and Benefits | 296 | 286 | |||||
Other Current Liabilities | 306 | 310 | |||||
Notes Payable and Overdrafts | 20 | 25 | |||||
Operating Lease Liabilities due Within One Year | 109 | 0 | |||||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 282 | 2 | |||||
Total Current Liabilities | 1,882 | 1,583 | |||||
Operating Lease Liabilities | 449 | 0 | |||||
Long Term Debt and Finance Leases | 3,662 | 3,550 | |||||
Compensation and Benefits | 513 | 569 | |||||
Deferred Income Taxes | 0 | 0 | |||||
Other Long Term Liabilities | 347 | 355 | |||||
Total Liabilities | 6,853 | 6,057 | |||||
Commitments and Contingent Liabilities | |||||||
Goodyear Shareholders’ Equity: | |||||||
Common Stock | 233 | 232 | |||||
Other Equity | 4,602 | 4,632 | |||||
Goodyear Shareholders’ Equity | 4,835 | 4,864 | |||||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||||
Total Shareholders’ Equity | 4,835 | 4,864 | |||||
Total Liabilities and Shareholders’ Equity | 11,688 | 10,921 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | 26 | 30 | |||||
Accounts Receivable, net | 154 | 110 | |||||
Accounts Receivable From Affiliates | 251 | 280 | |||||
Inventories | 65 | 71 | |||||
Prepaid Expenses and Other Current Assets | 2 | 3 | |||||
Total Current Assets | 498 | 494 | |||||
Goodwill | 1 | 1 | |||||
Intangible Assets | 0 | 0 | |||||
Deferred Income Taxes | 24 | 27 | |||||
Other Assets | 51 | 48 | |||||
Investments in Subsidiaries | 431 | 445 | |||||
Operating Lease Right-of-Use Assets | 12 | 0 | |||||
Property, Plant and Equipment, less Accumulated Depreciation | 432 | 430 | |||||
Total Assets | 1,449 | 1,445 | |||||
Current Liabilities: | |||||||
Accounts Payable — Trade | 128 | 131 | |||||
Accounts Payable to Affiliates | 0 | 0 | |||||
Compensation and Benefits | 15 | 14 | |||||
Other Current Liabilities | (2) | (4) | |||||
Notes Payable and Overdrafts | 0 | 0 | |||||
Operating Lease Liabilities due Within One Year | 5 | 0 | |||||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 0 | 0 | |||||
Total Current Liabilities | 146 | 141 | |||||
Operating Lease Liabilities | 8 | 0 | |||||
Long Term Debt and Finance Leases | 167 | 167 | |||||
Compensation and Benefits | 87 | 93 | |||||
Deferred Income Taxes | 0 | 0 | |||||
Other Long Term Liabilities | 7 | 8 | |||||
Total Liabilities | 415 | 409 | |||||
Commitments and Contingent Liabilities | |||||||
Goodyear Shareholders’ Equity: | |||||||
Common Stock | 0 | 0 | |||||
Other Equity | 1,034 | 1,036 | |||||
Goodyear Shareholders’ Equity | 1,034 | 1,036 | |||||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||||
Total Shareholders’ Equity | 1,034 | 1,036 | |||||
Total Liabilities and Shareholders’ Equity | 1,449 | 1,445 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | 691 | 644 | |||||
Accounts Receivable, net | 1,786 | 1,248 | |||||
Accounts Receivable From Affiliates | 0 | 0 | |||||
Inventories | 1,403 | 1,387 | |||||
Prepaid Expenses and Other Current Assets | 187 | 155 | |||||
Total Current Assets | 4,067 | 3,434 | |||||
Goodwill | 405 | 420 | |||||
Intangible Assets | 18 | 19 | |||||
Deferred Income Taxes | 363 | 395 | |||||
Other Assets | 510 | 564 | |||||
Investments in Subsidiaries | 0 | 0 | |||||
Operating Lease Right-of-Use Assets | 268 | 0 | |||||
Property, Plant and Equipment, less Accumulated Depreciation | 4,204 | 4,371 | |||||
Total Assets | 9,835 | 9,203 | |||||
Current Liabilities: | |||||||
Accounts Payable — Trade | 1,654 | 1,829 | |||||
Accounts Payable to Affiliates | 576 | 574 | |||||
Compensation and Benefits | 228 | 171 | |||||
Other Current Liabilities | 386 | 431 | |||||
Notes Payable and Overdrafts | 466 | 385 | |||||
Operating Lease Liabilities due Within One Year | 83 | 0 | |||||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 328 | 241 | |||||
Total Current Liabilities | 3,721 | 3,631 | |||||
Operating Lease Liabilities | 185 | 0 | |||||
Long Term Debt and Finance Leases | 1,751 | 1,393 | |||||
Compensation and Benefits | 644 | 683 | |||||
Deferred Income Taxes | 91 | 95 | |||||
Other Long Term Liabilities | 180 | 108 | |||||
Total Liabilities | 6,572 | 5,910 | |||||
Commitments and Contingent Liabilities | |||||||
Goodyear Shareholders’ Equity: | |||||||
Common Stock | 0 | 0 | |||||
Other Equity | 3,063 | 3,087 | |||||
Goodyear Shareholders’ Equity | 3,063 | 3,087 | |||||
Minority Shareholders’ Equity — Nonredeemable | 200 | 206 | |||||
Total Shareholders’ Equity | 3,263 | 3,293 | |||||
Total Liabilities and Shareholders’ Equity | 9,835 | 9,203 | |||||
Consolidating Entries and Eliminations | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | 0 | 0 | |||||
Accounts Receivable, net | 0 | 0 | |||||
Accounts Receivable From Affiliates | (576) | (574) | |||||
Inventories | (42) | (27) | |||||
Prepaid Expenses and Other Current Assets | 6 | 4 | |||||
Total Current Assets | (612) | (597) | |||||
Goodwill | 120 | 124 | |||||
Intangible Assets | 0 | 0 | |||||
Deferred Income Taxes | 4 | 3 | |||||
Other Assets | 0 | 0 | |||||
Investments in Subsidiaries | (4,163) | (4,203) | |||||
Operating Lease Right-of-Use Assets | 0 | 0 | |||||
Property, Plant and Equipment, less Accumulated Depreciation | (22) | (24) | |||||
Total Assets | (4,673) | (4,697) | |||||
Current Liabilities: | |||||||
Accounts Payable — Trade | 0 | 0 | |||||
Accounts Payable to Affiliates | (576) | (574) | |||||
Compensation and Benefits | 0 | 0 | |||||
Other Current Liabilities | 0 | 0 | |||||
Notes Payable and Overdrafts | 0 | 0 | |||||
Operating Lease Liabilities due Within One Year | 0 | 0 | |||||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9) | 0 | 0 | |||||
Total Current Liabilities | (576) | (574) | |||||
Operating Lease Liabilities | 0 | 0 | |||||
Long Term Debt and Finance Leases | 0 | 0 | |||||
Compensation and Benefits | 0 | 0 | |||||
Deferred Income Taxes | 0 | 0 | |||||
Other Long Term Liabilities | 0 | 0 | |||||
Total Liabilities | (576) | (574) | |||||
Commitments and Contingent Liabilities | |||||||
Goodyear Shareholders’ Equity: | |||||||
Common Stock | 0 | 0 | |||||
Other Equity | (4,097) | (4,123) | |||||
Goodyear Shareholders’ Equity | (4,097) | (4,123) | |||||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||||
Total Shareholders’ Equity | (4,097) | (4,123) | |||||
Total Liabilities and Shareholders’ Equity | $ (4,673) | $ (4,697) |
Consolidating Financial Infor_5
Consolidating Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidating Statements of Operations | ||||||
Net Sales | $ 3,802 | $ 3,928 | $ 11,032 | $ 11,599 | ||
Cost of Goods Sold | 2,965 | 3,028 | 8,699 | 8,953 | ||
Selling, Administrative and General Expense | 572 | 553 | 1,705 | 1,732 | ||
Rationalizations | 21 | 5 | 128 | 40 | ||
Interest Expense | 88 | 82 | 261 | 236 | ||
Other (Income) Expense | 35 | (253) | 74 | (171) | ||
Income before Income Taxes | 121 | 513 | 165 | 809 | ||
United States and Foreign Taxes | 31 | 159 | 63 | 211 | ||
Equity in Earnings of Subsidiaries | 0 | 0 | 0 | 0 | ||
Net Income | 90 | 354 | $ 12 | $ 244 | 102 | 598 |
Less: Minority Shareholders’ Net Income | 2 | 3 | 21 | 15 | ||
Goodyear Net Income (Loss) | 88 | 351 | 81 | 583 | ||
Comprehensive Income (Loss) | 16 | 284 | $ 89 | $ 182 | 105 | 466 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (1) | (6) | 21 | (10) | ||
Goodyear Comprehensive Income | 17 | 290 | 84 | 476 | ||
Reportable Legal Entities | Parent Company | ||||||
Consolidating Statements of Operations | ||||||
Net Sales | 1,862 | 1,922 | 5,328 | 5,440 | ||
Cost of Goods Sold | 1,484 | 1,547 | 4,292 | 4,376 | ||
Selling, Administrative and General Expense | 276 | 239 | 796 | 756 | ||
Rationalizations | 8 | 1 | 17 | 6 | ||
Interest Expense | 56 | 55 | 168 | 165 | ||
Other (Income) Expense | (7) | (295) | 61 | (271) | ||
Income before Income Taxes | 45 | 375 | (6) | 408 | ||
United States and Foreign Taxes | 11 | 111 | (21) | 71 | ||
Equity in Earnings of Subsidiaries | 54 | 87 | 66 | 246 | ||
Net Income | 88 | 351 | 81 | 583 | ||
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 | ||
Goodyear Net Income (Loss) | 88 | 351 | 81 | 583 | ||
Comprehensive Income (Loss) | 17 | 290 | 84 | 476 | ||
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 | ||
Goodyear Comprehensive Income | 17 | 290 | 84 | 476 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||
Consolidating Statements of Operations | ||||||
Net Sales | 384 | 342 | 1,046 | 980 | ||
Cost of Goods Sold | 352 | 319 | 978 | 927 | ||
Selling, Administrative and General Expense | 8 | 8 | 25 | 26 | ||
Rationalizations | 0 | 0 | 0 | 0 | ||
Interest Expense | 7 | 6 | 20 | 16 | ||
Other (Income) Expense | 4 | 3 | 11 | 13 | ||
Income before Income Taxes | 13 | 6 | 12 | (2) | ||
United States and Foreign Taxes | 3 | 1 | 3 | (1) | ||
Equity in Earnings of Subsidiaries | 6 | 10 | (6) | 44 | ||
Net Income | 16 | 15 | 3 | 43 | ||
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 | ||
Goodyear Net Income (Loss) | 16 | 15 | 3 | 43 | ||
Comprehensive Income (Loss) | 14 | (5) | (3) | 25 | ||
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 | ||
Goodyear Comprehensive Income | 14 | (5) | (3) | 25 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||||
Consolidating Statements of Operations | ||||||
Net Sales | 2,383 | 2,373 | 6,945 | 7,236 | ||
Cost of Goods Sold | 1,962 | 1,879 | 5,738 | 5,756 | ||
Selling, Administrative and General Expense | 288 | 306 | 884 | 950 | ||
Rationalizations | 13 | 4 | 111 | 34 | ||
Interest Expense | 33 | 28 | 99 | 73 | ||
Other (Income) Expense | 21 | 11 | (59) | 19 | ||
Income before Income Taxes | 66 | 145 | 172 | 404 | ||
United States and Foreign Taxes | 17 | 48 | 83 | 140 | ||
Equity in Earnings of Subsidiaries | 0 | 0 | 0 | 0 | ||
Net Income | 49 | 97 | 89 | 264 | ||
Less: Minority Shareholders’ Net Income | 2 | 3 | 21 | 15 | ||
Goodyear Net Income (Loss) | 47 | 94 | 68 | 249 | ||
Comprehensive Income (Loss) | (33) | (3) | 22 | 29 | ||
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (1) | (6) | 21 | (10) | ||
Goodyear Comprehensive Income | (32) | 3 | 1 | 39 | ||
Consolidating Entries and Eliminations | ||||||
Consolidating Statements of Operations | ||||||
Net Sales | (827) | (709) | (2,287) | (2,057) | ||
Cost of Goods Sold | (833) | (717) | (2,309) | (2,106) | ||
Selling, Administrative and General Expense | 0 | 0 | 0 | 0 | ||
Rationalizations | 0 | 0 | 0 | 0 | ||
Interest Expense | (8) | (7) | (26) | (18) | ||
Other (Income) Expense | 17 | 28 | 61 | 68 | ||
Income before Income Taxes | (3) | (13) | (13) | (1) | ||
United States and Foreign Taxes | 0 | (1) | (2) | 1 | ||
Equity in Earnings of Subsidiaries | (60) | (97) | (60) | (290) | ||
Net Income | (63) | (109) | (71) | (292) | ||
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 | ||
Goodyear Net Income (Loss) | (63) | (109) | (71) | (292) | ||
Comprehensive Income (Loss) | 18 | 2 | 2 | (64) | ||
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 | ||
Goodyear Comprehensive Income | $ 18 | $ 2 | $ 2 | $ (64) |
Consolidating Financial Infor_6
Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | $ (139) | $ (24) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (561) | (615) |
Asset Dispositions | 2 | 2 |
Short Term Securities Acquired | (73) | (61) |
Short Term Securities Redeemed | 67 | 61 |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Notes Receivable | (7) | (50) |
Other Transactions | (12) | (1) |
Total Cash Flows from Investing Activities | (584) | (664) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 1,451 | 1,458 |
Short Term Debt and Overdrafts Paid | (1,357) | (1,267) |
Long Term Debt Incurred | 4,797 | 4,704 |
Long Term Debt Paid | (3,941) | (3,992) |
Common Stock Issued | 1 | 4 |
Common Stock Repurchased | 0 | (200) |
Common Stock Dividends Paid | (111) | (100) |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | (26) | (27) |
Debt Related Costs and Other Transactions | (25) | (3) |
Total Cash Flows from Financing Activities | 789 | 577 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (13) | (37) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 53 | (148) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 873 | 1,110 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 926 | 962 |
Reportable Legal Entities | Parent Company | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | 129 | 815 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (215) | (248) |
Asset Dispositions | 0 | 0 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | (319) | (597) |
Capital Redemptions and Loans Paid | 203 | 193 |
Notes Receivable | (7) | (50) |
Other Transactions | 0 | 3 |
Total Cash Flows from Investing Activities | (338) | (699) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 374 | 800 |
Short Term Debt and Overdrafts Paid | (379) | (775) |
Long Term Debt Incurred | 2,340 | 2,305 |
Long Term Debt Paid | (1,992) | (1,982) |
Common Stock Issued | 1 | 4 |
Common Stock Repurchased | 0 | (200) |
Common Stock Dividends Paid | (111) | (100) |
Capital Contributions and Loans Incurred | 0 | 213 |
Capital Redemptions and Loans Paid | 0 | (430) |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 1 | 16 |
Total Cash Flows from Financing Activities | 234 | (149) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Net Change in Cash, Cash Equivalents and Restricted Cash | 25 | (33) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 168 | 201 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 193 | 168 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (14) | (5) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (29) | (55) |
Asset Dispositions | 0 | 2 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Notes Receivable | 0 | 0 |
Other Transactions | 0 | 0 |
Total Cash Flows from Investing Activities | (29) | (53) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 0 | 0 |
Short Term Debt and Overdrafts Paid | 0 | 0 |
Long Term Debt Incurred | 0 | 15 |
Long Term Debt Paid | 0 | 0 |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | 53 | 52 |
Capital Redemptions and Loans Paid | (15) | (14) |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 |
Total Cash Flows from Financing Activities | 38 | 53 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 1 | (1) |
Net Change in Cash, Cash Equivalents and Restricted Cash | (4) | (6) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 30 | 32 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 26 | 26 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (229) | (295) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (317) | (311) |
Asset Dispositions | 2 | 0 |
Short Term Securities Acquired | (73) | (61) |
Short Term Securities Redeemed | 67 | 61 |
Capital Contributions and Loans Incurred | 0 | (213) |
Capital Redemptions and Loans Paid | 0 | 430 |
Notes Receivable | 0 | 0 |
Other Transactions | (12) | (4) |
Total Cash Flows from Investing Activities | (333) | (98) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 1,077 | 658 |
Short Term Debt and Overdrafts Paid | (978) | (492) |
Long Term Debt Incurred | 2,457 | 2,384 |
Long Term Debt Paid | (1,949) | (2,010) |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | 266 | 545 |
Capital Redemptions and Loans Paid | (188) | (179) |
Intercompany Dividends Paid | (25) | (540) |
Transactions with Minority Interests in Subsidiaries | (26) | (27) |
Debt Related Costs and Other Transactions | (26) | (19) |
Total Cash Flows from Financing Activities | 608 | 320 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (14) | (36) |
Net Change in Cash, Cash Equivalents and Restricted Cash | 32 | (109) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 675 | 877 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 707 | 768 |
Consolidating Entries and Eliminations | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (25) | (539) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | 0 | (1) |
Asset Dispositions | 0 | 0 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | 319 | 810 |
Capital Redemptions and Loans Paid | (203) | (623) |
Notes Receivable | 0 | 0 |
Other Transactions | 0 | 0 |
Total Cash Flows from Investing Activities | 116 | 186 |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 0 | 0 |
Short Term Debt and Overdrafts Paid | 0 | 0 |
Long Term Debt Incurred | 0 | 0 |
Long Term Debt Paid | 0 | 0 |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | (319) | (810) |
Capital Redemptions and Loans Paid | 203 | 623 |
Intercompany Dividends Paid | 25 | 540 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 |
Total Cash Flows from Financing Activities | (91) | 353 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Net Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 0 | $ 0 |
Uncategorized Items - d33265d10
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,000,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |