Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2020 |
Entity File Number | 1-1927 |
Entity Registrant Name | THE GOODYEAR TIRE & RUBBER COMPANY |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-0253240 |
Entity Address, Address Line One | 200 Innovation Way, |
Entity Address, City or Town | Akron, |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44316-0001 |
City Area Code | 330 |
Local Phone Number | 796-2121 |
Title of 12(b) Security | Common Stock, Without Par Value |
Trading Symbol | GT |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock Outstanding | 232,997,550 |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Central Index Key | 0000042582 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net Sales | $ 3,056 | $ 3,598 |
Cost of Goods Sold | 2,552 | 2,879 |
Selling, Administrative and General Expense | 581 | 547 |
Goodwill Impairment | 182 | 0 |
Rationalizations | 9 | 103 |
Interest Expense | 73 | 85 |
Other (Income) Expense | 27 | 22 |
Income (Loss) before Income Taxes | (368) | (38) |
United States and Foreign Tax Expense | 249 | 6 |
Net Income (Loss) | (617) | (44) |
Less: Minority Shareholders’ Net Income | 2 | 17 |
Goodyear Net Income (Loss) | $ (619) | $ (61) |
Goodyear Net Income (Loss) — Per Share of Common Stock | ||
Basic (in dollars per share) | $ (2.65) | $ (0.26) |
Weighted Average Shares Outstanding (in shares) | 234 | 232 |
Diluted (in dollars per share) | $ (2.65) | $ (0.26) |
Weighted Average Shares Outstanding (in shares) | 234 | 232 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ (617) | $ (44) |
Other Comprehensive Income (Loss) | ||
Foreign currency translation, net of tax of ($8) in 2020 ($2 in 2019) | (225) | 30 |
Defined benefit plans: | ||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $9 in 2020 ($8 in 2019) | 27 | 26 |
(Increase)/Decrease in net actuarial losses, net of tax of $0 in 2020 ($1 in 2019) | (1) | 4 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax of ($1) in 2020 ($0 in 2019) | (1) | 0 |
Deferred derivative gains, net of tax of $5 in 2020 ($0 in 2019) | 18 | 5 |
Reclassification adjustment for amounts recognized in income, net of tax of $0 in 2020 ($0 in 2019) | (4) | (3) |
Other Comprehensive Income (Loss) | (186) | 62 |
Comprehensive Income (Loss) | (803) | 18 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (7) | 17 |
Goodyear Comprehensive Income (Loss) | $ (796) | $ 1 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Tax on foreign currency translation | $ (8) | $ 2 |
Defined benefit plans: | ||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 9 | 8 |
Tax on (increase)/decrease in net actuarial losses | 0 | 1 |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (1) | 0 |
Tax effect of deferred derivative gains | 5 | 0 |
Tax effect of reclassification adjustment for amounts recognized in income | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and Cash Equivalents | $ 971 | $ 908 |
Accounts Receivable, less Allowance — $131 ($111 in 2019) | 2,025 | 1,941 |
Inventories: | ||
Raw Materials | 589 | 530 |
Work in Process | 87 | 143 |
Finished Products | 2,243 | 2,178 |
Inventories | 2,919 | 2,851 |
Prepaid Expenses and Other Current Assets | 258 | 234 |
Total Current Assets | 6,173 | 5,934 |
Goodwill (Note 8) | 369 | 565 |
Intangible Assets (Note 8) | 135 | 137 |
Deferred Income Taxes | 1,261 | 1,527 |
Other Assets (Note 9) | 941 | 959 |
Operating Lease Right-of-Use Assets | 873 | 855 |
Property, Plant and Equipment, less Accumulated Depreciation — $10,324 ($10,488 in 2019) | 6,939 | 7,208 |
Total Assets | 16,691 | 17,185 |
Current Liabilities: | ||
Accounts Payable — Trade | 2,645 | 2,908 |
Compensation and Benefits | 470 | 536 |
Other Current Liabilities | 648 | 734 |
Notes Payable and Overdrafts | 691 | 348 |
Operating Lease Liabilities due Within One Year | 191 | 199 |
Long Term Debt and Finance Leases due Within One Year | 621 | 562 |
Total Current Liabilities | 5,266 | 5,287 |
Operating Lease Liabilities | 693 | 668 |
Long Term Debt and Finance Leases | 5,212 | 4,753 |
Compensation and Benefits | 1,254 | 1,334 |
Deferred Income Taxes | 86 | 90 |
Other Long Term Liabilities | 483 | 508 |
Total Liabilities | 12,994 | 12,640 |
Commitments and Contingent Liabilities | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 233 million in 2020 and 2019 | 233 | 233 |
Capital Surplus | 2,146 | 2,141 |
Retained Earnings | 5,444 | 6,113 |
Accumulated Other Comprehensive Loss | (4,313) | (4,136) |
Goodyear Shareholders’ Equity | 3,510 | 4,351 |
Minority Shareholders’ Equity — Nonredeemable | 187 | 194 |
Total Shareholders’ Equity | 3,697 | 4,545 |
Total Liabilities and Shareholders’ Equity | $ 16,691 | $ 17,185 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for Accounts Receivable | $ 131 | $ 111 |
Accumulated Depreciation | $ 10,324 | $ 10,488 |
Common Stock, par value (in dollars per share) | $ 0 | $ 0 |
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, shares outstanding (in shares) | 233,000,000 | 233,000,000 |
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 |
Beginning balance at Dec. 31, 2018 | $ 5,070 | $ 232 | $ 2,111 | $ 6,597 | $ (4,076) | $ 4,864 | $ 206 |
Common stock beginning balance (in shares) at Dec. 31, 2018 | 232,171,043 | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | (44) | (61) | (61) | 17 | |||
Foreign currency translation (net of tax) | 30 | 30 | 30 | ||||
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) | 4 | 4 | 4 | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of ($1)) | 0 | ||||||
Deferred derivative gains (net of tax) | 5 | 5 | 5 | ||||
Reclassification adjustment for amounts recognized in income | (3) | (3) | (3) | ||||
Other Comprehensive Income (Loss) | 62 | 62 | |||||
Comprehensive Income (Loss) | 18 | 1 | 17 | ||||
Adoption of new accounting standards update (Note 1) | (23) | (23) | (23) | ||||
Stock-based compensation plans | 4 | 4 | 4 | ||||
Dividends declared | (37) | (37) | (37) | ||||
Common stock issued from treasury | (1) | (1) | (1) | ||||
Common stock issued from treasury (in shares) | 299,670 | ||||||
Ending balance at Mar. 31, 2019 | 5,031 | $ 232 | 2,114 | 6,476 | (4,014) | 4,808 | 223 |
Common stock ending balance (in shares) at Mar. 31, 2019 | 232,470,713 | ||||||
Beginning balance at Dec. 31, 2019 | $ 4,545 | $ 233 | 2,141 | 6,113 | (4,136) | 4,351 | 194 |
Common stock beginning balance (in shares) at Dec. 31, 2019 | 233,000,000 | 232,650,318 | |||||
Comprehensive income (loss): | |||||||
Net income (loss) | $ (617) | (619) | (619) | 2 | |||
Foreign currency translation (net of tax) | (225) | (216) | (216) | (9) | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 27 | 27 | 27 | ||||
Increase / Decrease in net actuarial losses (net of tax) | (1) | (1) | (1) | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of ($1)) | (1) | (1) | (1) | ||||
Deferred derivative gains (net of tax) | 18 | 18 | 18 | ||||
Reclassification adjustment for amounts recognized in income | (4) | (4) | (4) | ||||
Other Comprehensive Income (Loss) | (186) | (177) | (9) | ||||
Comprehensive Income (Loss) | (803) | (796) | (7) | ||||
Adoption of new accounting standards update (Note 1) | (12) | (12) | (12) | ||||
Stock-based compensation plans | 7 | 7 | 7 | ||||
Dividends declared | (38) | (38) | (38) | ||||
Common stock issued from treasury | (2) | (2) | (2) | ||||
Common stock issued from treasury (in shares) | 347,232 | ||||||
Ending balance at Mar. 31, 2020 | $ 3,697 | $ 233 | $ 2,146 | $ 5,444 | $ (4,313) | $ 3,510 | $ 187 |
Common stock ending balance (in shares) at Mar. 31, 2020 | 233,000,000 | 232,997,550 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common treasury shares (in shares) | 45,465,877 | 45,992,714 | 45,813,109 | 46,292,384 |
Tax on foreign currency translation | $ (8) | $ 2 | ||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 9 | 8 | ||
Tax on increase / decrease in net actuarial losses | 0 | 1 | ||
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (1) | 0 | ||
Tax effect of deferred derivative gains | 5 | 0 | ||
Tax effect of reclassification adjustment for amounts recognized in income | $ 0 | $ 0 | ||
Cash dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ (617) | $ (44) |
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 196 | 193 |
Amortization and Write-Off of Debt Issuance Costs | 2 | 4 |
Goodwill Impairment (Note 8) | 182 | 0 |
Provision for Deferred Income Taxes (Note 5) | 235 | (23) |
Net Pension Curtailments and Settlements | 2 | 0 |
Net Rationalization Charges (Note 3) | 9 | 103 |
Rationalization Payments | (73) | (18) |
Net (Gains) Losses on Asset Sales (Note 4) | (1) | (5) |
Operating Lease Expense | 69 | 74 |
Operating Lease Payments | (66) | (71) |
Pension Contributions and Direct Payments | (19) | (18) |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | ||
Accounts Receivable | (206) | (425) |
Inventories | (170) | (93) |
Accounts Payable — Trade | (106) | (71) |
Compensation and Benefits | (57) | 31 |
Other Current Liabilities | (30) | (11) |
Other Assets and Liabilities | 89 | 10 |
Total Cash Flows from Operating Activities | (561) | (364) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (211) | (221) |
Short Term Securities Acquired | (6) | (31) |
Short Term Securities Redeemed | 4 | 31 |
Notes Receivable | (35) | (7) |
Other Transactions | (9) | (16) |
Total Cash Flows from Investing Activities | (257) | (244) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 629 | 571 |
Short Term Debt and Overdrafts Paid | (239) | (485) |
Long Term Debt Incurred | 2,188 | 1,850 |
Long Term Debt Paid | (1,600) | (1,223) |
Common Stock Dividends Paid (Note 15) | (37) | (37) |
Debt Related Costs and Other Transactions | (2) | (31) |
Total Cash Flows from Financing Activities | 939 | 645 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (59) | 0 |
Net Change in Cash, Cash Equivalents and Restricted Cash | 62 | 37 |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 974 | 873 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 1,036 | $ 910 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 1. ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America ("U.S. GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). We maintain a robust business continuity plan to adequately respond to situations such as the COVID-19 pandemic, including a framework for remote work arrangements, in order to effectively maintain operations, including financial reporting systems, internal controls over financial reporting and disclosure controls and procedures. Effective January 1, 2020, we early adopted, as permitted, SEC amendments to the financial disclosure requirements for registered debt securities with subsidiary guarantees. The amendments replace the condensed consolidating financial information with summarized financial information of the issuers and guarantors, require expanded qualitative disclosures with respect to information about guarantors, the terms and conditions of guarantees and the factors that may affect payment, and permit these disclosures to be provided outside the footnotes to the parent company’s audited annual and interim consolidated financial statements. We have elected to provide this information in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2020. Recently Adopted Accounting Standards Effective January 1, 2020, we adopted 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. As a result of using the modified retrospective adoption approach, $12 million was recorded as a cumulative effect adjustment to decrease Retained Earnings, with Accounts Receivable decreasing by $15 million and Deferred Income Taxes increasing by $3 million. The following table presents the balance of allowances for credit losses, which represents our allowance for doubtful accounts associated with accounts receivable, and the changes during the three months ended March 31, 2020: (In millions) Balance at January 1, 2020 Current period provision Write-offs charged against the allowance Recoveries of amounts previously written off Translation Balance at March 31, 2020 Americas $ 38 $ — $ (1 ) $ — $ (3 ) $ 34 Europe, Middle East & Africa 78 14 (1 ) — (4 ) 87 Asia 10 — — — — 10 Total $ 126 $ 14 $ (2 ) $ — $ (7 ) $ 131 Effective January 1, 2020, we adopted 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 adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In January 2020, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which clarifies the interaction between the accounting for investments in equity securities, equity method investments and certain derivative instruments. The new standard is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. In December 2019, the FASB issued an accounting standards update with new guidance that changes the accounting for certain income tax transactions. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis. All other amendments should be applied on a prospective basis. The adoption of this accounting standard s 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: March 31, (In millions) 2020 2019 Cash and Cash Equivalents $ 971 $ 860 Restricted Cash 65 50 Total Cash, Cash Equivalents and Restricted Cash $ 1,036 $ 910 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. |
Net Sales
Net Sales | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales | NOTE 2. NET SALES The following tables show disaggregated net sales from contracts with customers by major source: Three Months Ended March 31, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,306 $ 904 $ 343 $ 2,553 Other tire and related sales 142 72 32 246 Retail services and service related sales 133 18 12 163 Chemical sales 91 — — 91 Other 1 1 1 3 Net Sales by reportable segment $ 1,673 $ 995 $ 388 $ 3,056 Three Months Ended March 31, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,487 $ 1,120 $ 453 $ 3,060 Other tire and related sales 143 91 32 266 Retail services and service related sales 132 8 15 155 Chemical sales 109 — — 109 Other 5 2 1 8 Net Sales by reportable segment $ 1,876 $ 1,221 $ 501 $ 3,598 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. When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities in the Consolidated Balance Sheets totaled $24 million and $23 million at March 31, 2020 and December 31, 2019, respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $28 million and $31 million at March 31, 2020 and December 31, 2019, 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 three months ended March 31, 2020: (In millions) Balance at December 31, 2019 $ 54 Revenue deferred during period 29 Revenue recognized during period (31 ) Impact of foreign currency translation — Balance at March 31, 2020 $ 52 |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Costs Associated with Rationalization Programs | NOTE 3. 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 Costs Total Balance at December 31, 2019 $ 220 $ — $ 220 2020 Charges (1) 8 5 13 Incurred, net of foreign currency translation of $(4) million and $0 million, respectively (72 ) (5 ) (77 ) Reversed to the Statement of Operations — — — Balance at March 31, 2020 $ 156 $ — $ 156 (1) Charges of $13 million in 2020 exclude a $4 million credit for benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations. During the first quarter of 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. We have $99 million accrued related to this plan at March 31, 2020, which is expected to be substantially paid through 2022. The remainder of the accrual balance at March 31, 2020 is expected to be substantially utilized in the next 12 months and includes $20 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $14 million related to a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility, $14 million related to global plans to reduce Selling, Administrative and General Expense ("SAG") headcount and $4 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 (Loss) before Income Taxes: Three Months Ended March 31, (In millions) 2020 2019 Current Year Plans Associate Severance and Other Related Costs $ 2 $ 98 Benefit Plan Termination Benefits — 1 Other Exit Costs — 1 Current Year Plans - Net Charges $ 2 $ 100 Prior Year Plans Associate Severance and Other Related Costs $ 6 $ — Benefit Plan Termination Benefits (4 ) — Other Exit Costs 5 3 Prior Year Plans - Net Charges 7 3 Total Net Charges $ 9 $ 103 Asset Write-off and Accelerated Depreciation Charges $ 4 $ — Substantially all of the new charges for the three months ended March 31, 2020 and 2019 related to future cash outflows. Current year plan charges for the three months ended March 31, 2019 include $93 million related to a plan to modernize two of our tire manufacturing facilities in Germany and $7 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas. Net prior year plan charges for the three months ended March 31, 2020 were $7 million and included $5 million related to a plan to modernize two of our tire manufacturing facilities in Germany and $3 million related to a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility. Net prior year plan charges for the three months ended March 31, 2020 also included a curtailment credit of $4 million for one of our postretirement benefit plans, related to the exit of employees under an approved rationalization plan. Net prior year plan charges for the three months ended March 31, 2019 were $3 million, primarily related to EMEA manufacturing plans. Net prior year plan charges for the three months ended March 31, 2019 also included reversals of $2 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $930 million in charges incurred prior to 2020 and approximately $45 million is expected to be incurred in future periods. Approximately 50 associates will be released under new plans initiated in 2020. In the first three months of 2020, approximately 600 associates were released under plans initiated in prior years. Approximately 900 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. 14, Commitments and Contingent Liabilities. |
Other (Income) Expense
Other (Income) Expense | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other (Income) Expense | NOTE 4. OTHER (INCOME) EXPENSE Three Months Ended March 31, (In millions) 2020 2019 Non-service related pension and other postretirement benefits cost $ 26 $ 30 Financing fees and financial instruments expense 7 8 Net foreign currency exchange (gains) losses (1 ) (7 ) General and product liability expense - discontinued products 2 6 Royalty income (5 ) (5 ) Net (gains) losses on asset sales (1 ) (5 ) Interest income (3 ) (3 ) Miscellaneous (income) expense 2 (2 ) $ 27 $ 22 Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. For further information, refer to Note to the Consolidated Financial Statements No. 12, Pension, Savings and Other Postretirement Benefit Plans. Other (Income) Expense also includes financing fees and financial instruments expense which consists of commitment fees and charges incurred in connection with financing transactions; net foreign currency exchange (gains) and losses; general and product liability expense - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries; royalty income which is derived primarily from licensing arrangements; net (gains) and losses on asset sales; and interest income. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5. INCOME TAXES For the first quarter of 2020, we recorded tax expense of $249 million on a loss before income taxes of $368 million. Income tax expense for the three months ended March 31, 2020 includes net discrete charges of $290 million, primarily related to the establishment of a valuation allowance on deferred tax assets for foreign tax credits. In the first quarter of 2019, we recorded tax expense of $6 million on a loss before income taxes of $38 million. Income tax expense for the three months ended March 31, 2019 includes net discrete charges of $7 million. We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended March 31, 2020 primarily relates to the discrete items noted above, a non-cash goodwill impairment charge of $182 million, and forecasted losses for the full year in foreign jurisdictions in which no tax benefits are recorded, which have been accentuated during 2020 by business interruptions resulting from the COVID-19 pandemic. The difference between our effective tax rate and the U.S. statutory rate of 21% for the three months ended March 31, 2019 primarily relates to the discrete items noted above and the 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. For further information regarding the non-cash goodwill impairment charge, refer to Note to the Consolidated Financial Statements No. 8, Goodwill and Intangible Assets. We consider both positive and negative evidence when measuring the need for a valuation allowance. The weight given to the evidence is commensurate with the extent to which it may be objectively verified. Current and cumulative financial reporting results are a source of objectively verifiable evidence. We give operating results during the most recent three-year period a significant weight in our analysis. We typically only consider forecasts of future profitability when positive cumulative operating results exist in the most recent three-year period. We perform scheduling exercises to determine if sufficient taxable income of the appropriate character exists in the periods required in order to realize our deferred tax assets with limited lives (such as tax loss carryforwards and tax credits) prior to their expiration. We consider tax planning strategies available to accelerate taxable amounts if required to utilize expiring deferred tax assets. A valuation allowance is not required to the extent that, in our judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not that our deferred tax assets will be realized. At March 31, 2020, we had approximately $1.0 billion of U.S. federal, state and local deferred tax assets, net of valuation allowances primarily related to foreign tax credits with limited lives totaling $308 million. In the U.S., we have cumulative positive profitability in the three-year period ended December 31, 2019; however, negative evidence of reduced profitability as a result of the business disruption created by the COVID-19 pandemic must be considered in our assessment of our ability to realize our net deferred tax assets. While the disruption to our business is currently expected to be temporary, there is considerable uncertainty around the extent and duration of that disruption. If our profitability deteriorates enough that our future results for a three-year period are no longer positive, a valuation allowance may be required against all of our U.S. net deferred tax assets. At December 31, 2019, our U.S. deferred tax assets included $403 million of foreign tax credits, net of valuation allowances of $3 million, generated primarily from the receipt of foreign dividends. During the first quarter of 2020, we established an additional valuation allowance of $295 million against substantially all of these foreign tax credits with expiration dates through 2025. Due to the sudden and sharp decline in industry demand and the suspension of production at our U.S. manufacturing facilities as a result of the COVID-19 pandemic, we are expecting to incur a significant U.S. tax loss for 2020. As loss carry-forwards must be utilized prior to foreign tax credits in offsetting future income for tax purposes, we have now concluded that it is no longer more likely than not that we will be able to utilize these foreign tax credits prior to their expiration. Our earnings and forecasts of future profitability along with three significant sources of foreign income provide us sufficient positive evidence that we will be able to utilize our remaining foreign tax credits of $108 million that expire between 2025 and 2028. Our sources of foreign income are (1) 100% of our domestic profitability can be re-characterized as foreign source income under current U.S. tax law to the extent domestic losses have offset foreign source income in prior years, (2) annual net foreign source income, exclusive of dividends, primarily from royalties, and (3) tax planning strategies, including capitalizing research and development costs, accelerating income on cross border sales of inventory or raw materials to our subsidiaries and reducing U.S. interest expense by, for example, reducing intercompany loans through repatriating current year earnings of foreign subsidiaries, all of which would increase our domestic profitability. We consider our current forecasts of future profitability in assessing our ability to realize our deferred tax assets, including our foreign tax credits. These forecasts include the impact of recent trends, including various macroeconomic factors such as the impact of the COVID-19 pandemic, on our profitability, as well as the impact of tax planning strategies. Macroeconomic factors, including the impact of the COVID-19 pandemic, possess a high degree of volatility and can significantly impact our profitability. As such, there is a risk that future earnings will not be sufficient to fully utilize our U.S. net deferred tax assets, including our remaining foreign tax credits. However, we believe our forecasts of future profitability along with the three significant sources of foreign income described above provide us sufficient positive evidence to conclude that it is more likely than not that, at March 31, 2020, our U.S. net deferred tax assets, including our foreign tax credits, net of valuation allowances, will be fully utilized. At March 31, 2020, we had approximately $1.2 billion of foreign deferred tax assets and a valuation allowance of $939 million. 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. In Luxembourg, we maintain a valuation allowance of approximately $850 million on all 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 three months ending March 31, 2020, changes to our unrecognized tax benefits did not, and for the full year of 2020 are not expected to, have a significant impact on our financial position or results of operations. On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a substantial tax and spending package intended to provide economic stimulus to address the impact of the COVID-19 pandemic. The CARES Act allows corporations with net operating losses generated in 2018, 2019 and 2020 to elect to carryback those losses for a period of five years and relaxes the limitation for business interest deductions for 2019 and 2020. We do not anticipate that these provisions will have a material impact on our operating results. We will, however, benefit from a CARES Act provision that accelerates the ability of corporations to claim a refund of alternative minimum tax credit carryforwards. Under this provision, we anticipate receiving a refund of approximately $5 million during the second quarter of 2020 that would otherwise have been received in two equal annual installments in 2021 and 2022. We are open to examination in the United States for 2019 and in Germany from 2016 onward. Generally, for our remaining tax jurisdictions, years from 2014 onward are still open to examination. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 6. EARNINGS PER SHARE Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Basic and diluted earnings per common share are calculated as follows: Three Months Ended March 31, (In millions, except per share amounts) 2020 2019 Earnings (loss) per share — basic: Goodyear net income (loss) $ (619 ) $ (61 ) Weighted average shares outstanding 234 232 Earnings (loss) per common share — basic $ (2.65 ) $ (0.26 ) Earnings (loss) per share — diluted: Goodyear net income (loss) $ (619 ) $ (61 ) Weighted average shares outstanding 234 232 Dilutive effect of stock options and other dilutive securities — — Weighted average shares outstanding — diluted 234 232 Earnings (loss) per common share — diluted $ (2.65 ) $ (0.26 ) Weighted average shares outstanding – diluted for the three months ended March 31, 2019 excludes the dilutive effect of approximately 3 million equivalent shares related primarily to options with exercise prices less than the average market price of our common shares (i.e., “in-the-money” options) as their inclusion would have been anti-dilutive due to the Goodyear net loss. There were no in-the-money options at March 31, 2020. Additionally, weighted average shares outstanding - diluted for the three months ended March 31, 2020 and 2019 exclude approximately 9 million and 2 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 7. BUSINESS SEGMENTS Three Months Ended March 31, (In millions) 2020 2019 Sales: Americas $ 1,673 $ 1,876 Europe, Middle East and Africa 995 1,221 Asia Pacific 388 501 Net Sales $ 3,056 $ 3,598 Segment Operating Income (Loss): Americas $ — $ 89 Europe, Middle East and Africa (53 ) 54 Asia Pacific 6 47 Total Segment Operating Income (Loss) $ (47 ) $ 190 Less: Goodwill impairment (Note 8) $ 182 $ — Rationalizations (Note 3) 9 103 Interest expense 73 85 Other (income) expense (Note 4) 27 22 Asset write-offs and accelerated depreciation 4 — Retained expenses of divested operations 2 3 Other 24 15 Income (Loss) before Income Taxes $ (368 ) $ (38 ) Non-cash goodwill impairment charges, as described in Note to the Consolidated Financial Statements No. 8, Goodwill and Intangible Assets; rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 4, Other (Income) Expense; and asset write-offs and accelerated depreciation were not charged to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended March 31, (In millions) 2020 2019 Goodwill Impairment: Europe, Middle East and Africa $ 182 $ — Total Goodwill Impairment $ 182 $ — Rationalizations: Americas $ 3 $ 7 Europe, Middle East and Africa 6 96 Total Rationalizations $ 9 $ 103 Net (Gains) Losses on Asset Sales: Europe, Middle East and Africa $ (1 ) $ (5 ) Total Net (Gains) Losses on Asset Sales $ (1 ) $ (5 ) Asset Write-offs and Accelerated Depreciation: Americas $ 4 $ — Total Asset Write-offs and Accelerated Depreciation $ 4 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 8. GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets totaled $369 million and $135 million, respectively, at March 31, 2020, compared to $565 million and $137 million, respectively, at December 31, 2019. Goodwill and intangible assets with indefinite useful lives are tested for impairment annually either on a quantitative or qualitative basis, or more frequently when events or circumstances change that indicate the fair value of the asset may be below its carrying amount. As a result of the COVID-19 pandemic and the resulting decline in the macroeconomic environment, as well as a significant decrease in our market capitalization, we performed an interim impairment analysis as of March 31, 2020 utilizing a discounted cash flow model. The most critical assumptions used in the calculation of the estimated fair value of our reporting units are the extent and duration of, as well as the timing of the recovery from, the ongoing COVID-19 pandemic, the projected long term operating margin and the discount rate. Since the date of our last annual quantitative goodwill impairment assessment, the overall discount rate increased, reflecting an increase in the risk premium components of the rate partially offset by a decrease in the risk-free interest rate component as a result of the current macroeconomic environment. Based on our current forecasts, we also gave consideration to the expected near-term negative cash flow impact of the ongoing COVID-19 pandemic and subsequent recovery, as well as the decrease in our market capitalization. Based on the results of our interim quantitative assessment, we recorded a non-cash impairment charge of $182 million for the EMEA reporting unit during the first quarter of 2020 to reduce the recorded balance of the EMEA reporting unit’s goodwill from $400 million to $218 million. As a result of this partial impairment, the fair value of the EMEA reporting unit now approximates its carrying value. As of March 31, 2020, the goodwill associated with reporting units in our Americas and Asia Pacific segments was $91 million and $60 million, respectively. If we make adverse revisions to our significant assumptions, including as a result of business performance or market conditions, or if our market capitalization declines further and if such a decline becomes indicative that the fair value of our reporting units has declined below their carrying values, we may need to record a material, non-cash goodwill impairment charge in a future period. Intangible assets with indefinite lives totaled $118 million at both March 31, 2020 and December 31, 2019. We also conducted an assessment of our intangible assets with indefinite lives as of March 31, 2020, which indicated no impairment existed. |
Other Assets and Investments
Other Assets and Investments | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets and Investments | NOTE 9. OTHER ASSETS AND INVESTMENTS The balance of our investment in TireHub, LLC (“TireHub”), a distribution joint venture in the United States, was $252 million and $262 million at March 31, 2020 and December 31, 2019, respectively, and was included in Other Assets on our Consolidated Balance Sheets. Our investment in TireHub is accounted for under the equity method of accounting and, as such, includes our 50% share of the net losses of TireHub, which totaled $12 million and $10 million for the first quarter of 2020 and 2019, respectively. We regularly review our investment in TireHub for potential impairment. Based on our assessment for the first quarter of 2020, we concluded that any decline in the fair value of our investment in TireHub as a result of current trends and factors is temporary in nature. As such, we did not adjust the balance recorded on our Consolidated Balance Sheet at March 31, 2020. However, if the current economic environment persists, an other-than-temporary decline in fair value could develop, necessitating the need for a future material non-cash impairment charge. |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Financing Arrangements And Derivative Financial Instruments [Abstract] | |
Financing Arrangements and Derivative Financial Instruments | NOTE 10. FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS At March 31, 2020, we had total credit arrangements of $8,618 million, of which $2,278 million were unused. At that date, 41% of our debt was at variable interest rates averaging 3.41%. Notes Payable and Overdrafts, Long Term Debt and Finance Leases due Within One Year and Short Term Financing Arrangements At March 31, 2020, we had short term committed and uncommitted credit arrangements totaling $869 million, of which $169 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: March 31, December 31, (In millions) 2020 2019 Chinese credit facilities $ 174 $ 118 Other domestic and foreign debt 517 230 Notes Payable and Overdrafts $ 691 $ 348 Weighted average interest rate 5.27 % 4.92 % Chinese credit facilities $ 93 $ 95 8.75% note due 2020 281 280 Other domestic and foreign debt (including finance leases) 247 187 Long Term Debt and Finance Leases due Within One Year $ 621 $ 562 Weighted average interest rate 5.98 % 6.58 % Total obligations due within one year $ 1,312 $ 910 Long Term Debt and Finance Leases and Financing Arrangements At March 31, 2020, we had long term credit arrangements totaling $7,749 million, of which $2,109 million were unused. The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: March 31, 2020 December 31, 2019 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 281 $ 280 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 274 281 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 420 1.92 % — — Second lien term loan facility due 2025 400 3.20 % 400 3.97 % European revolving credit facility due 2024 66 1.50 % — — Pan-European accounts receivable facility 166 1.10 % 327 0.98 % Mexican credit facility 200 3.41 % 200 3.44 % Chinese credit facilities 188 4.62 % 195 4.87 % Other foreign and domestic debt (1) 868 2.98 % 661 4.02 % 5,613 5,094 Unamortized deferred financing fees (27 ) (28 ) 5,586 5,066 Finance lease obligations (2) 247 249 5,833 5,315 Less portion due within one year (621 ) (562 ) $ 5,212 $ 4,753 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes non-cash financing additions of $1 million during the three month period ended March 31, 2020. NOTES At March 31, 2020, we had $3,305 million of outstanding notes, compared to $3,311 million at December 31, 2019. 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. During the quarter ended March 31, 2020, amounts drawn under this facility b ore interest at LIBOR plus 125 basis points, and undrawn amounts under the facility w ere subject to an annual commitment fee of 30 basis points. Availability under the facility is subject to a borrowing base, which was 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 March 31, 2020, our borrowing base, and therefore our availability, under this facility was $501 million below the facility's stated amount of $2.0 billion. At March 31, 2020, we had $420 million of borrowings and $17 million of letters of credit issued under the revolving credit facility. At December 31, 2019, we had no borrowings and $37 million of letters of credit issued under the revolving credit facility. On April 9, 2020, we amended and restated the first lien revolving credit facility. Changes to the facility include extending the maturity to April 9, 2025 and increasing the borrowing base for the facility by increasing the amount attributable to the value of our principal trademarks by $100 million and adding the value of eligible machinery and equipment. The interest rate for loans under the facility increased by 50 basis points to LIBOR plus 175 basis points, based on our current liquidity, and undrawn amounts under the facility will be subject to an annual commitment fee of 25 basis points. 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, 2019. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. 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 March 31, 2020 and December 31, 2019, the amounts outstanding under this facility were $400 million. €800 million Amended and Restated Senior Secured European Revolving Credit Facility due 20 Our amended and restated European revolving credit facility consists of (i) a €180 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a €620 million all-borrower tranche that is available to Goodyear Europe B.V. (“GEBV”), GDTG and Goodyear Dunlop Tires Operations S.A. Up to €175 million of swingline loans and €75 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under this facility will bear interest at LIBOR plus 150 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 150 basis points for loans denominated in euros, and undrawn amounts under the facility are subject to an annual commitment fee of 25 basis points. GEBV and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GEBV and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2018. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At March 31, 2020, there were no of borrowings outstanding under the German tranche, $66 million (€60 million) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2019, 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 March 31, 2020, the amounts available and utilized under this program totaled $166 million (€151 million). At December 31, 2019, the amounts available and utilized under this program totaled $327 million (€291 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 2019 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 March 31, 2020, the gross amount of receivables sold was $460 million, compared to $548 million at December 31, 2019. Other Foreign Credit Facilities A Mexican subsidiary and a U.S. subsidiary have a revolving credit facility in Mexico. At March 31, 2020 and December 31, 2019, the amounts available and utilized under this facility were $200 million. The facility ultimately matures in 2022, has covenants relating to the Mexican and U.S. subsidiary, and has customary representations and warranties and default provisions relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the facility. A Chinese subsidiary has several financing arrangements in China. At March 31, 2020 and December 31, 2019, the amounts available under these facilities were $723 million and $735 million, respectively. At March 31, 2020, the amount utilized under these facilities was $362 million, of which $174 million represented notes payable and $188 million represented long term debt. At March 31, 2020, $93 million of the long term debt was due within a year. At December 31, 2019, the amount utilized under these facilities was $313 million, of which $118 million represented notes payable and $195 million represented long term debt. At December 31, 2019, $95 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 March 31, 2020 and December 31, 2019, the unused amounts available under these facilities were $107 million and $106 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: March 31, December 31, (In millions) 2020 2019 Fair Values — Current asset (liability): Accounts receivable $ 30 $ 1 Other current liabilities (8 ) (15 ) At March 31, 2020 and December 31, 2019, these outstanding foreign currency derivatives had notional amounts of $2,104 million and $1,707 million, respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $39 million and $15 million for the three months ended March 31, 2020 and 2019, 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: March 31, December 31, (In millions) 2020 2019 Fair Values — Current asset (liability): Accounts receivable $ 20 $ 9 Other current liabilities — (3 ) Fair Values — Long term asset (liability): Other assets $ 4 $ 1 Other long term liabilities — (1 ) At March 31, 2020 and December 31, 2019, these outstanding foreign currency derivatives had notional amounts of $342 million and $365 million, respectively, and primarily related to U.S. dollar denominated intercompany transactions. Based on our current forecasts, including the expected impacts of the COVID-19 pandemic, we believe that it is probable that the underlying hedge transactions will occur within an appropriate time frame in order to continue to qualify for cash flow hedge accounting treatment. We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets. The following table presents the classification of changes in fair values of foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended March 31, (In millions) 2020 2019 Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss ("AOCL") (1) $ 23 $ 5 Reclassification adjustment for amounts recognized in Cost of Goods Sold ("CGS") (1) (4 ) (3 ) (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the three months ended March 31, 2020 and 2019 were not material. The estimated net amount of deferred gains at March 31, 2020 that are expected to be reclassified to earnings within the next twelve months is $16 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 11. FAIR VALUE MEASUREMENTS The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at March 31, 2020 and December 31, 2019: 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) 2020 2019 2020 2019 2020 2019 2020 2019 Assets: Investments $ 9 $ 11 $ 9 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 54 11 — — 54 11 — — Total Assets at Fair Value $ 63 $ 22 $ 9 $ 11 $ 54 $ 11 $ — $ — Liabilities: Foreign Exchange Contracts $ 8 $ 19 $ — $ — $ 8 $ 19 $ — $ — Total Liabilities at Fair Value $ 8 $ 19 $ — $ — $ 8 $ 19 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at March 31, 2020 and December 31, 2019: March 31, December 31, (In millions) 2020 2019 Fixed Rate Debt: (1) Carrying amount — liability $ 3,436 $ 3,434 Fair value — liability 3,111 3,558 Variable Rate Debt: (1) Carrying amount — liability $ 2,150 $ 1,632 Fair value — liability 1,889 1,632 (1) Excludes Notes Payable and Overdrafts of $691 million and $348 million at March 31, 2020 and December 31, 2019, respectively, of which $199 million and $143 million, respectively, are at fixed rates and $492 million and $205 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 $3,300 million and $3,808 million at March 31, 2020 and December 31, 2019, respectively, were estimated using quoted Level 1 market prices. |
Pension, Savings and Other Post
Pension, Savings and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension, Other Postretirement Benefits and Savings Plans | NOTE 12. 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. Three Months Ended March 31, (In millions) 2020 2019 Service cost $ 1 $ 1 Interest cost 33 44 Expected return on plan assets (49 ) (56 ) Amortization of net losses 27 28 Net periodic pension cost $ 12 $ 17 Net curtailments/settlements/termination benefits 1 — Total defined benefit pension cost $ 13 $ 17 Non-U.S. Three Months Ended March 31, (In millions) 2020 2019 Service cost $ 7 $ 7 Interest cost 14 18 Expected return on plan assets (14 ) (15 ) Amortization of prior service cost 1 — Amortization of net losses 10 7 Net periodic pension cost $ 18 $ 17 Net curtailments/settlements/termination benefits 1 1 Total defined benefit pension cost $ 19 $ 18 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. 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 (credit) expense for the three months ended March 31, 2020 was ($3) million and included the curtailment credit of ($4) million discussed below. Other postretirement benefits (credit) expense for the three months ended March 31, 2019 was $2 million. During the first quarter of 2020, we recognized settlement charges of $2 million for defined benefit pension plans in Other (Income) Expense and a curtailment credit of ($4) million for one of our non-U.S. other postretirement benefit plans in Rationalizations, related to the exit of employees under an approved rationalization plan. We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2020. For the three months ended March 31, 2020, we contributed $7 million to our non-U.S. plans. The expense recognized for our contributions to defined contribution savings plans for the three months ended March 31, 2020 and 2019 was $30 million and $28 million, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Plans | NOTE 13. STOCK COMPENSATION PLANS Our Board of Directors granted 4.2 million stock options, 0.3 million restricted stock units and 0.2 million performance share units during the three months ended March 31, 2020 under our stock compensation plans. The weighted average exercise price per share and weighted average fair value per share of the stock option grants during the three months ended March 31, 2020 were $10.12 and $1.97, respectively. We estimated the fair value of the stock options using the following assumptions in our Black-Scholes model: Expected term: 7.5 years Interest rate: 1.29% Volatility: 41.28% Dividend yield: 6.54% 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 $10.12 for restricted stock units and $7.80 for performance share units granted during the three months ended March 31, 2020. We recognized stock-based compensation expense of $6 million and $3 million during the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, unearned compensation cost related to the unvested portion of all stock-based awards was approximately $39 million and is expected to be recognized over the remaining vesting period of the respective grants, through the first quarter of 2024. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | NOTE 14. COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters We have recorded liabilities totaling $48 million 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 General and Product Liability and Other Litigation We have recorded liabilities totaling $303 million and $293 million, including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at March 31, 2020 and December 31, 2019, respectively. Of these amounts, We have recorded an indemnification asset within Accounts Receivable of $3 million and within Other Assets of $22 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 152,900 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. Three Months Ended Year Ended (Dollars in millions) March 31, 2020 December 31, 2019 Pending claims, beginning of period 39,600 43,100 New claims filed 300 1,500 Claims settled/dismissed (700 ) (5,000 ) Pending claims, end of period 39,200 39,600 Payments (1) $ 2 $ 22 (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 $154 million and $153 million at March 31, 2020 and December 31, 2019, respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten-year 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 $95 million at both March 31, 2020 and December 31, 2019. We expect that approximately 60% of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $13 million was included in Current Assets as part of Accounts Receivable at both March 31, 2020 and December 31, 2019. 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, 2019, we had approximately $555 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 €140 million ($154 million) against Goodyear France SAS. 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 we apply consistent transfer pricing policies and practices globally, support transfer prices through economic studies, seek advance pricing agreements and joint audits to the extent possible and believe our 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 $70 million and $74 million at March 31, 2020 and December 31, 2019, 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 ($40 million) in connection with an indirect tax assessment in EMEA. This guarantee amount was subsequently increased to PLN 181 million ($44 million). We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of 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 March 31, 2020, this guarantee amount has been reduced to $26 million. We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2021. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Capital Stock [Abstract] | |
Capital Stock | NOTE 15. CAPITAL STOCK Dividends In the first three months of 2020, we paid cash dividends of $37 million on our common stock. This amount excludes dividends earned on stock-based compensation plans of approximately $1 million during the first quarter of 2020. On April 16, 2020, we announced that we have temporarily suspended the quarterly dividend on our common stock. Common Stock Repurchases We may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of stock options or the vesting or payment of stock awards. During the first quarter 2020, we did not repurchase any shares from employees. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | NOTE 16. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in AOCL, by component, for the three months ended March 31, 2020 and 2019: (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, 2019 $ (1,156 ) $ (2,983 ) $ 3 $ (4,136 ) Other comprehensive income (loss) before reclassifications, net of tax (216 ) (1 ) 18 (199 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 26 (4 ) 22 Balance at March 31, 2020 $ (1,372 ) $ (2,958 ) $ 17 $ (4,313 ) (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 30 4 5 39 Amounts reclassified from accumulated other comprehensive loss, net of tax — 26 (3 ) 23 Balance at March 31, 2019 $ (1,130 ) $ (2,893 ) $ 9 $ (4,014 ) The following table presents reclassifications out of AOCL: Three Months Ended March 31, 2020 2019 (In millions) (Income) Expense Amount Reclassified Affected Line Item in the Consolidated Component of AOCL from AOCL Statements of Operations Amortization of prior service cost and unrecognized gains and losses $ 36 $ 34 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (2 ) — Other (Income) Expense / Rationalizations Unrecognized net actuarial losses and prior service costs, before tax 34 — Tax effect (8 ) (8 ) United States and Foreign Taxes Net of tax $ 26 $ 26 Goodyear Net Income (Loss) Deferred derivative (gains) losses, before tax $ (4 ) $ (3 ) Cost of Goods Sold Tax effect — — United States and Foreign Taxes Net of tax $ (4 ) $ (3 ) Goodyear Net Income (Loss) Total reclassifications $ 22 $ 23 Goodyear Net Income (Loss) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 17. SUBSEQUENT EVENT On April 17, 2020, we reached a tentative bargaining agreement and subsequently approved a plan to permanently close our Gadsden, Alabama manufacturing facility as part 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. The tentative bargaining agreement remains subject to approval by the membership of the local union. We estimate the total pre-tax charges associated with this plan to be $280 million to $295 million, of which $170 million to $180 million are expected to be cash charges, primarily for severance and other associate-related costs of approximately $55 million and $40 million, respectively, and other closure costs of $75 million to $85 million. Non-cash charges, primarily related to asset write-offs and accelerated depreciation, are expected to be $110 million to $115 million. We expect to record approximately $170 million of these charges in the second quarter of 2020 and make cash payments of approximately $45 million in 2020. The remaining charges will be recorded and the remaining cash payments will be made thereafter, primarily in 2021 and 2022. We expect to substantially complete this rationalization plan by the fourth quarter of 2021. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America ("U.S. GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). We maintain a robust business continuity plan to adequately respond to situations such as the COVID-19 pandemic, including a framework for remote work arrangements, in order to effectively maintain operations, including financial reporting systems, internal controls over financial reporting and disclosure controls and procedures. Effective January 1, 2020, we early adopted, as permitted, SEC amendments to the financial disclosure requirements for registered debt securities with subsidiary guarantees. The amendments replace the condensed consolidating financial information with summarized financial information of the issuers and guarantors, require expanded qualitative disclosures with respect to information about guarantors, the terms and conditions of guarantees and the factors that may affect payment, and permit these disclosures to be provided outside the footnotes to the parent company’s audited annual and interim consolidated financial statements. We have elected to provide this information in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2020. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective January 1, 2020, we adopted 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. As a result of using the modified retrospective adoption approach, $12 million was recorded as a cumulative effect adjustment to decrease Retained Earnings, with Accounts Receivable decreasing by $15 million and Deferred Income Taxes increasing by $3 million. The following table presents the balance of allowances for credit losses, which represents our allowance for doubtful accounts associated with accounts receivable, and the changes during the three months ended March 31, 2020: (In millions) Balance at January 1, 2020 Current period provision Write-offs charged against the allowance Recoveries of amounts previously written off Translation Balance at March 31, 2020 Americas $ 38 $ — $ (1 ) $ — $ (3 ) $ 34 Europe, Middle East & Africa 78 14 (1 ) — (4 ) 87 Asia 10 — — — — 10 Total $ 126 $ 14 $ (2 ) $ — $ (7 ) $ 131 Effective January 1, 2020, we adopted 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 adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In January 2020, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which clarifies the interaction between the accounting for investments in equity securities, equity method investments and certain derivative instruments. The new standard is expected to reduce diversity in practice and increase comparability of the accounting for these interactions. In December 2019, the FASB issued an accounting standards update with new guidance that changes the accounting for certain income tax transactions. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis. All other amendments should be applied on a prospective basis. The adoption of this accounting standard s update is not expected to have a material impact on our consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. |
Restricted Cash | Restricted Cash The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: March 31, (In millions) 2020 2019 Cash and Cash Equivalents $ 971 $ 860 Restricted Cash 65 50 Total Cash, Cash Equivalents and Restricted Cash $ 1,036 $ 910 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 | 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) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Balance of Allowances for Credit Losses, Doubtful Accounts with Accounts Receivable and Changes | The following table presents the balance of allowances for credit losses, which represents our allowance for doubtful accounts associated with accounts receivable, and the changes during the three months ended March 31, 2020: (In millions) Balance at January 1, 2020 Current period provision Write-offs charged against the allowance Recoveries of amounts previously written off Translation Balance at March 31, 2020 Americas $ 38 $ — $ (1 ) $ — $ (3 ) $ 34 Europe, Middle East & Africa 78 14 (1 ) — (4 ) 87 Asia 10 — — — — 10 Total $ 126 $ 14 $ (2 ) $ — $ (7 ) $ 131 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: March 31, (In millions) 2020 2019 Cash and Cash Equivalents $ 971 $ 860 Restricted Cash 65 50 Total Cash, Cash Equivalents and Restricted Cash $ 1,036 $ 910 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,306 $ 904 $ 343 $ 2,553 Other tire and related sales 142 72 32 246 Retail services and service related sales 133 18 12 163 Chemical sales 91 — — 91 Other 1 1 1 3 Net Sales by reportable segment $ 1,673 $ 995 $ 388 $ 3,056 Three Months Ended March 31, 2019 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,487 $ 1,120 $ 453 $ 3,060 Other tire and related sales 143 91 32 266 Retail services and service related sales 132 8 15 155 Chemical sales 109 — — 109 Other 5 2 1 8 Net Sales by reportable segment $ 1,876 $ 1,221 $ 501 $ 3,598 |
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 three months ended March 31, 2020: (In millions) Balance at December 31, 2019 $ 54 Revenue deferred during period 29 Revenue recognized during period (31 ) Impact of foreign currency translation — Balance at March 31, 2020 $ 52 |
Costs Associated with Rationa_2
Costs Associated with Rationalization Programs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Roll-Forward of Liability Balance | The following table shows the roll-forward of our liability between periods: Associate- (In millions) Related Costs Other Costs Total Balance at December 31, 2019 $ 220 $ — $ 220 2020 Charges (1) 8 5 13 Incurred, net of foreign currency translation of $(4) million and $0 million, respectively (72 ) (5 ) (77 ) Reversed to the Statement of Operations — — — Balance at March 31, 2020 $ 156 $ — $ 156 (1) Charges of $13 million in 2020 exclude a $4 million credit for benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations. |
Net Rationalization Charges Included in Income (Loss) Before Income Taxes | The following table shows net rationalization charges included in Income (Loss) before Income Taxes: Three Months Ended March 31, (In millions) 2020 2019 Current Year Plans Associate Severance and Other Related Costs $ 2 $ 98 Benefit Plan Termination Benefits — 1 Other Exit Costs — 1 Current Year Plans - Net Charges $ 2 $ 100 Prior Year Plans Associate Severance and Other Related Costs $ 6 $ — Benefit Plan Termination Benefits (4 ) — Other Exit Costs 5 3 Prior Year Plans - Net Charges 7 3 Total Net Charges $ 9 $ 103 Asset Write-off and Accelerated Depreciation Charges $ 4 $ — |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Income and Expense | Three Months Ended March 31, (In millions) 2020 2019 Non-service related pension and other postretirement benefits cost $ 26 $ 30 Financing fees and financial instruments expense 7 8 Net foreign currency exchange (gains) losses (1 ) (7 ) General and product liability expense - discontinued products 2 6 Royalty income (5 ) (5 ) Net (gains) losses on asset sales (1 ) (5 ) Interest income (3 ) (3 ) Miscellaneous (income) expense 2 (2 ) $ 27 $ 22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, (In millions, except per share amounts) 2020 2019 Earnings (loss) per share — basic: Goodyear net income (loss) $ (619 ) $ (61 ) Weighted average shares outstanding 234 232 Earnings (loss) per common share — basic $ (2.65 ) $ (0.26 ) Earnings (loss) per share — diluted: Goodyear net income (loss) $ (619 ) $ (61 ) Weighted average shares outstanding 234 232 Dilutive effect of stock options and other dilutive securities — — Weighted average shares outstanding — diluted 234 232 Earnings (loss) per common share — diluted $ (2.65 ) $ (0.26 ) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | Three Months Ended March 31, (In millions) 2020 2019 Sales: Americas $ 1,673 $ 1,876 Europe, Middle East and Africa 995 1,221 Asia Pacific 388 501 Net Sales $ 3,056 $ 3,598 Segment Operating Income (Loss): Americas $ — $ 89 Europe, Middle East and Africa (53 ) 54 Asia Pacific 6 47 Total Segment Operating Income (Loss) $ (47 ) $ 190 Less: Goodwill impairment (Note 8) $ 182 $ — Rationalizations (Note 3) 9 103 Interest expense 73 85 Other (income) expense (Note 4) 27 22 Asset write-offs and accelerated depreciation 4 — Retained expenses of divested operations 2 3 Other 24 15 Income (Loss) before Income Taxes $ (368 ) $ (38 ) |
Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs | Non-cash goodwill impairment charges, as described in Note to the Consolidated Financial Statements No. 8, Goodwill and Intangible Assets; rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 4, Other (Income) Expense; and asset write-offs and accelerated depreciation were not charged to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended March 31, (In millions) 2020 2019 Goodwill Impairment: Europe, Middle East and Africa $ 182 $ — Total Goodwill Impairment $ 182 $ — Rationalizations: Americas $ 3 $ 7 Europe, Middle East and Africa 6 96 Total Rationalizations $ 9 $ 103 Net (Gains) Losses on Asset Sales: Europe, Middle East and Africa $ (1 ) $ (5 ) Total Net (Gains) Losses on Asset Sales $ (1 ) $ (5 ) Asset Write-offs and Accelerated Depreciation: Americas $ 4 $ — Total Asset Write-offs and Accelerated Depreciation $ 4 $ — |
Financing Arrangements and De_2
Financing Arrangements and Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financing Arrangements And Derivative Financial Instruments [Abstract] | |
Long Term Debt and Capital Leases Due Within One Year | The following table presents amounts due within one year: March 31, December 31, (In millions) 2020 2019 Chinese credit facilities $ 174 $ 118 Other domestic and foreign debt 517 230 Notes Payable and Overdrafts $ 691 $ 348 Weighted average interest rate 5.27 % 4.92 % Chinese credit facilities $ 93 $ 95 8.75% note due 2020 281 280 Other domestic and foreign debt (including finance leases) 247 187 Long Term Debt and Finance Leases due Within One Year $ 621 $ 562 Weighted average interest rate 5.98 % 6.58 % Total obligations due within one year $ 1,312 $ 910 |
Schedule of Debt | The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: March 31, 2020 December 31, 2019 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 281 $ 280 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 274 281 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 420 1.92 % — — Second lien term loan facility due 2025 400 3.20 % 400 3.97 % European revolving credit facility due 2024 66 1.50 % — — Pan-European accounts receivable facility 166 1.10 % 327 0.98 % Mexican credit facility 200 3.41 % 200 3.44 % Chinese credit facilities 188 4.62 % 195 4.87 % Other foreign and domestic debt (1) 868 2.98 % 661 4.02 % 5,613 5,094 Unamortized deferred financing fees (27 ) (28 ) 5,586 5,066 Finance lease obligations (2) 247 249 5,833 5,315 Less portion due within one year (621 ) (562 ) $ 5,212 $ 4,753 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes non-cash financing additions of $1 million during the three month period ended March 31, 2020. |
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: March 31, December 31, (In millions) 2020 2019 Fair Values — Current asset (liability): Accounts receivable $ 30 $ 1 Other current liabilities (8 ) (15 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedges | 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: March 31, December 31, (In millions) 2020 2019 Fair Values — Current asset (liability): Accounts receivable $ 20 $ 9 Other current liabilities — (3 ) Fair Values — Long term asset (liability): Other assets $ 4 $ 1 Other long term liabilities — (1 ) |
Classification of Changes in Fair Values of Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Three Months Ended March 31, (In millions) 2020 2019 Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss ("AOCL") (1) $ 23 $ 5 Reclassification adjustment for amounts recognized in Cost of Goods Sold ("CGS") (1) (4 ) (3 ) (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the three months ended March 31, 2020 and 2019 were not material. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities at Fair Value | The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at March 31, 2020 and December 31, 2019: 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) 2020 2019 2020 2019 2020 2019 2020 2019 Assets: Investments $ 9 $ 11 $ 9 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 54 11 — — 54 11 — — Total Assets at Fair Value $ 63 $ 22 $ 9 $ 11 $ 54 $ 11 $ — $ — Liabilities: Foreign Exchange Contracts $ 8 $ 19 $ — $ — $ 8 $ 19 $ — $ — Total Liabilities at Fair Value $ 8 $ 19 $ — $ — $ 8 $ 19 $ — $ — |
Supplemental Fair Value Information | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at March 31, 2020 and December 31, 2019: March 31, December 31, (In millions) 2020 2019 Fixed Rate Debt: (1) Carrying amount — liability $ 3,436 $ 3,434 Fair value — liability 3,111 3,558 Variable Rate Debt: (1) Carrying amount — liability $ 2,150 $ 1,632 Fair value — liability 1,889 1,632 (1) Excludes Notes Payable and Overdrafts of $691 million and $348 million at March 31, 2020 and December 31, 2019, respectively, of which $199 million and $143 million, respectively, are at fixed rates and $492 million and $205 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. |
Pension, Savings and Other Po_2
Pension, Savings and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Cost | Defined benefit pension cost follows: U.S. Three Months Ended March 31, (In millions) 2020 2019 Service cost $ 1 $ 1 Interest cost 33 44 Expected return on plan assets (49 ) (56 ) Amortization of net losses 27 28 Net periodic pension cost $ 12 $ 17 Net curtailments/settlements/termination benefits 1 — Total defined benefit pension cost $ 13 $ 17 Non-U.S. Three Months Ended March 31, (In millions) 2020 2019 Service cost $ 7 $ 7 Interest cost 14 18 Expected return on plan assets (14 ) (15 ) Amortization of prior service cost 1 — Amortization of net losses 10 7 Net periodic pension cost $ 18 $ 17 Net curtailments/settlements/termination benefits 1 1 Total defined benefit pension cost $ 19 $ 18 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Estimated Fair Value of Stock Options using Assumptions in Black-Scholes Model | We estimated the fair value of the stock options using the following assumptions in our Black-Scholes model: Expected term: 7.5 years Interest rate: 1.29% Volatility: 41.28% Dividend yield: 6.54% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Recent Approximate Asbestos Claims Activity | A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. Three Months Ended Year Ended (Dollars in millions) March 31, 2020 December 31, 2019 Pending claims, beginning of period 39,600 43,100 New claims filed 300 1,500 Claims settled/dismissed (700 ) (5,000 ) Pending claims, end of period 39,200 39,600 Payments (1) $ 2 $ 22 (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) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present changes in AOCL, by component, for the three months ended March 31, 2020 and 2019: (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, 2019 $ (1,156 ) $ (2,983 ) $ 3 $ (4,136 ) Other comprehensive income (loss) before reclassifications, net of tax (216 ) (1 ) 18 (199 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 26 (4 ) 22 Balance at March 31, 2020 $ (1,372 ) $ (2,958 ) $ 17 $ (4,313 ) (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 30 4 5 39 Amounts reclassified from accumulated other comprehensive loss, net of tax — 26 (3 ) 23 Balance at March 31, 2019 $ (1,130 ) $ (2,893 ) $ 9 $ (4,014 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL: Three Months Ended March 31, 2020 2019 (In millions) (Income) Expense Amount Reclassified Affected Line Item in the Consolidated Component of AOCL from AOCL Statements of Operations Amortization of prior service cost and unrecognized gains and losses $ 36 $ 34 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (2 ) — Other (Income) Expense / Rationalizations Unrecognized net actuarial losses and prior service costs, before tax 34 — Tax effect (8 ) (8 ) United States and Foreign Taxes Net of tax $ 26 $ 26 Goodyear Net Income (Loss) Deferred derivative (gains) losses, before tax $ (4 ) $ (3 ) Cost of Goods Sold Tax effect — — United States and Foreign Taxes Net of tax $ (4 ) $ (3 ) Goodyear Net Income (Loss) Total reclassifications $ 22 $ 23 Goodyear Net Income (Loss) |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 5,444 | $ 6,113 | |
Accounts receivable | 2,025 | 1,941 | |
Deferred income taxes | $ 1,261 | $ 1,527 | |
Accounting Standards Update 2016-13 | Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (12) | ||
Accounts receivable | (15) | ||
Deferred income taxes | $ 3 |
Accounting Policies - Summary o
Accounting Policies - Summary of Balance of Allowances for Credit Losses, Doubtful Accounts with Accounts Receivable and Changes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance at January 1, 2020 | $ 126 |
Current period provision | 14 |
Write-offs charged against the allowance | (2) |
Recoveries of amounts previously written off | 0 |
Translation | (7) |
Balance at March 31, 2020 | 131 |
Americas | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance at January 1, 2020 | 38 |
Current period provision | 0 |
Write-offs charged against the allowance | (1) |
Recoveries of amounts previously written off | 0 |
Translation | (3) |
Balance at March 31, 2020 | 34 |
Europe, Middle East & Africa | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance at January 1, 2020 | 78 |
Current period provision | 14 |
Write-offs charged against the allowance | (1) |
Recoveries of amounts previously written off | 0 |
Translation | (4) |
Balance at March 31, 2020 | 87 |
Asia | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Balance at January 1, 2020 | 10 |
Current period provision | 0 |
Write-offs charged against the allowance | 0 |
Recoveries of amounts previously written off | 0 |
Translation | 0 |
Balance at March 31, 2020 | $ 10 |
Accounting Policies - Restricte
Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 971 | $ 908 | $ 860 | |
Restricted Cash | 65 | 50 | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 1,036 | $ 974 | $ 910 | $ 873 |
Net Sales - Schedule of Disaggr
Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | $ 3,056 | $ 3,598 |
Tire unit sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 2,553 | 3,060 |
Other tire and related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 246 | 266 |
Retail services and service related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 163 | 155 |
Chemical | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 91 | 109 |
Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 3 | 8 |
Americas | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 1,673 | 1,876 |
Americas | Tire unit sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 1,306 | 1,487 |
Americas | Other tire and related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 142 | 143 |
Americas | Retail services and service related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 133 | 132 |
Americas | Chemical | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 91 | 109 |
Americas | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 1 | 5 |
Europe, Middle East and Africa | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 995 | 1,221 |
Europe, Middle East and Africa | Tire unit sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 904 | 1,120 |
Europe, Middle East and Africa | Other tire and related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 72 | 91 |
Europe, Middle East and Africa | Retail services and service related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 18 | 8 |
Europe, Middle East and Africa | Chemical | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 0 | 0 |
Europe, Middle East and Africa | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 1 | 2 |
Asia Pacific | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 388 | 501 |
Asia Pacific | Tire unit sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 343 | 453 |
Asia Pacific | Other tire and related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 32 | 32 |
Asia Pacific | Retail services and service related sales | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 12 | 15 |
Asia Pacific | Chemical | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | 0 | 0 |
Asia Pacific | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Sales | $ 1 | $ 1 |
Net Sales - Schedule of Balance
Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue, current | $ 24 | $ 23 |
Deferred revenue, noncurrent | 28 | $ 31 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance at December 31, 2019 | 54 | |
Revenue deferred during period | 29 | |
Revenue recognized during period | (31) | |
Impact of foreign currency translation | 0 | |
Balance at March 31, 2020 | $ 52 |
Costs Associated with Rationa_3
Costs Associated with Rationalization Programs - Roll-Forward of Liability Balance (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Reserve | |
Beginning Balance | $ 220 |
New Charges | 13 |
Incurred, Net of Foreign Currency Translation | (77) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 156 |
Rationalizations | |
Restructuring Reserve | |
Curtailments and settlements benefits plan credit | 4 |
Associate-Related Costs | |
Restructuring Reserve | |
Beginning Balance | 220 |
New Charges | 8 |
Incurred, Net of Foreign Currency Translation | (72) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 156 |
Foreign currency translation | (4) |
Other Costs | |
Restructuring Reserve | |
Beginning Balance | 0 |
New Charges | 5 |
Incurred, Net of Foreign Currency Translation | (5) |
Reversed to the Statement of Operations | 0 |
Ending Balance | 0 |
Foreign currency translation | $ 0 |
Costs Associated with Rationa_4
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)facilityemployee | Mar. 31, 2019USD ($)facility | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | $ 156 | $ 220 | |
Rationalizations | 9 | $ 103 | |
Rationalization reversals | 0 | ||
Rationalization charges to date | $ 930 | ||
Future rationalization charges expected | $ 45 | ||
Expected number of position to be released (in employees) | employee | 900 | ||
Amiens Labor Claims | |||
Restructuring Cost and Reserve [Line Items] | |||
Loss contingency, number of plaintiffs | employee | 850 | ||
Rationalizations | |||
Restructuring Cost and Reserve [Line Items] | |||
Curtailments and settlements benefits plan credit | $ 4 | ||
Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 2 | 100 | |
Expected number of position to be released (in employees) | employee | 50 | ||
Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 7 | 3 | |
Rationalization reversals | $ 2 | ||
Number of associates released | employee | 600 | ||
Prior Year Plans | Rationalizations | |||
Restructuring Cost and Reserve [Line Items] | |||
Curtailments and settlements benefits plan credit | $ 4 | ||
Modernizing Tire Manufacturing Facilities in Germany | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | $ 99 | ||
Number of facilities affected | facility | 2 | 2 | |
Modernizing Tire Manufacturing Facilities in Germany | Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 93 | ||
Modernizing Tire Manufacturing Facilities in Germany | Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 5 | ||
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 20 | ||
Reduce SAG Headcount | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 14 | ||
Gadsden Restructuring Plan to Offer Voluntary Buy-outs to Certain Associates | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 14 | ||
Gadsden Restructuring Plan to Offer Voluntary Buy-outs to Certain Associates | 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] | |||
Restructuring reserve | $ 4 | ||
Americas Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 7 | ||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 3 |
Costs Associated with Rationa_5
Costs Associated with Rationalization Programs - Schedule of Net Rationalization Charges Included in Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | $ 9 | $ 103 |
Asset Write-off and Accelerated Depreciation Charges | 4 | 0 |
Current Year Plans | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 2 | 100 |
Current Year Plans | Associate severance and other related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 2 | 98 |
Current Year Plans | Benefit Plan Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 0 | 1 |
Current Year Plans | Other Exit Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 0 | 1 |
Prior Year Plans | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 7 | 3 |
Prior Year Plans | Associate severance and other related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | 6 | 0 |
Prior Year Plans | Benefit Plan Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | (4) | 0 |
Prior Year Plans | Other Exit Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalizations | $ 5 | $ 3 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | ||
Non-service related pension and other postretirement benefits cost | $ 26 | $ 30 |
Financing fees and financial instruments expense | 7 | 8 |
Net foreign currency exchange (gains) losses | (1) | (7) |
General and product liability expense - discontinued products | 2 | 6 |
Royalty income | (5) | (5) |
Net (gains) losses on asset sales | (1) | (5) |
Interest income | (3) | (3) |
Miscellaneous (income) expense | 2 | (2) |
Other (income) expense | $ 27 | $ 22 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 3 Months Ended | |||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)Installment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 249 | $ 6 | ||
Income (loss) before income taxes | (368) | (38) | ||
Net discrete tax adjustments | $ 290 | $ 7 | ||
U.S. statutory rate | 21.00% | 21.00% | ||
Non-cash goodwill impairment charge | $ 182 | $ 0 | ||
Deferred tax asset, tax credit carryforwards, foreign | $ 108 | $ 403 | ||
CARES act of 2020, net operating loss carryback period | 5 years | |||
Number of equal annual installments to receive refund alternative minimum tax credit carryforwards | Installment | 2 | |||
Scenario Forecast | ||||
Income Taxes [Line Items] | ||||
CARES Act Of 2020 refundable alternative minimum tax credit carryforwards | $ 5 | |||
Domestic and State and Local Authority | ||||
Income Taxes [Line Items] | ||||
Net deferred tax assets | $ 1,000 | |||
Valuation allowance | 308 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | 939 | |||
Tax credit carryforward, valuation allowance | $ 295 | $ 3 | ||
Tax credit carryforward expiration year | 2025 | |||
Deferred tax assets | $ 1,200 | |||
Foreign Tax Authority | Luxembourg | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 850 | |||
Foreign Tax Authority | Beginning Year | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward expiration year | 2025 | |||
Foreign Tax Authority | Ending Year | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward expiration year | 2028 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings (loss) per share — basic: | ||
Goodyear net income (loss) | $ (619) | $ (61) |
Weighted Average Shares Outstanding (in shares) | 234 | 232 |
Earnings (loss) per common share-basic (in dollars per share) | $ (2.65) | $ (0.26) |
Earnings (loss) per share — diluted: | ||
Goodyear net income (loss) | $ (619) | $ (61) |
Weighted Average Shares Outstanding (in shares) | 234 | 232 |
Dilutive effect of stock options and other dilutive securities (in shares) | 0 | 0 |
Weighted average shares outstanding — diluted (in shares) | 234 | 232 |
Earnings (loss) per common share-diluted (in dollars per share) | $ (2.65) | $ (0.26) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
In-the-money Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 0 | 3 |
Underwater Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 9 | 2 |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Operating Income: | ||
Net Sales | $ 3,056 | $ 3,598 |
Less: | ||
Income (Loss) before Income Taxes | (368) | (38) |
Goodwill impairment (Note 8) | 182 | 0 |
Rationalizations | 9 | 103 |
Interest Expense | 73 | 85 |
Other (Income) Expense | 27 | 22 |
Asset write-offs and accelerated depreciation | 4 | 0 |
Operating Segments | ||
Less: | ||
Income (Loss) before Income Taxes | (47) | 190 |
Segment Reconciling Items | ||
Less: | ||
Rationalizations | 9 | 103 |
Interest Expense | 73 | 85 |
Other (Income) Expense | 27 | 22 |
Asset write-offs and accelerated depreciation | 4 | 0 |
Retained expenses of divested operations | 2 | 3 |
Corporate and Eliminations | ||
Less: | ||
Other | 24 | 15 |
Americas | ||
Segment Operating Income: | ||
Net Sales | 1,673 | 1,876 |
Less: | ||
Asset write-offs and accelerated depreciation | 4 | 0 |
Americas | Operating Segments | ||
Less: | ||
Income (Loss) before Income Taxes | 0 | 89 |
Rationalizations | 3 | 7 |
Europe, Middle East and Africa | ||
Segment Operating Income: | ||
Net Sales | 995 | 1,221 |
Europe, Middle East and Africa | Operating Segments | ||
Less: | ||
Income (Loss) before Income Taxes | (53) | 54 |
Goodwill impairment (Note 8) | 182 | 0 |
Rationalizations | 6 | 96 |
Asia Pacific | ||
Segment Operating Income: | ||
Net Sales | 388 | 501 |
Asia Pacific | Operating Segments | ||
Less: | ||
Income (Loss) before Income Taxes | $ 6 | $ 47 |
Business Segments - Rationaliza
Business Segments - Rationalizations, Asset Sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Goodwill Impairment | $ 182 | $ 0 |
Rationalizations | 9 | 103 |
Asset write-offs and accelerated depreciation | 4 | 0 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Asset write-offs and accelerated depreciation | 4 | 0 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net (gains) losses on asset sales | (1) | (5) |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Rationalizations | 3 | 7 |
Operating Segments | Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Goodwill Impairment | 182 | 0 |
Rationalizations | 6 | 96 |
Net (gains) losses on asset sales | $ (1) | $ (5) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill | $ 369 | $ 565 | |
Intangible assets | 135 | 137 | |
Goodwill Impairment | 182 | $ 0 | |
Indefinite-lived intangible assets | 118 | $ 118 | |
EMEA | |||
Goodwill [Line Items] | |||
Goodwill | 218 | ||
Goodwill Impairment | 182 | ||
Goodwill prior to recording impairment charge | 400 | ||
Americas | |||
Goodwill [Line Items] | |||
Goodwill | 91 | ||
Asia Pacific | |||
Goodwill [Line Items] | |||
Goodwill | $ 60 |
Other Assets and Investments (D
Other Assets and Investments (Details) - United States - TireHub - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Equity method investments | $ 252 | $ 262 | |
Equity ownership percentage | 50.00% | ||
Equity method investment, loss | $ 12 | $ 10 |
Financing Arrangements and De_3
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 8,618 |
Credit arrangements, unused amount | $ 2,278 |
Debt, percentage bearing variable interest | 41.00% |
Long-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 7,749 |
Credit arrangements, unused amount | 2,109 |
Short-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | 869 |
Credit arrangements, unused amount | $ 169 |
Variable Rate Credit Arrangements | |
Debt Instrument [Line Items] | |
Interest rate | 3.41% |
Financing Arrangements and De_4
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases Due Within One Year (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 691 | $ 348 |
Long term debt and finance leases due within one year | 621 | 562 |
Total obligations due within one year | 1,312 | 910 |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 247 | $ 187 |
Weighted average interest rate | 2.98% | 4.02% |
Long Term Debt And Capital Leases, Current | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 5.98% | 6.58% |
Chinese credit facilities | Foreign Line of Credit | Line of Credit | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 93 | $ 95 |
Weighted average interest rate | 4.62% | 4.87% |
8.75% due 2020 | Senior Notes | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 281 | $ 280 |
Interest rate, stated percentage | 8.75% | 8.75% |
Line of Credit | Chinese credit facilities | Foreign Line of Credit | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 174 | $ 118 |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 517 | $ 230 |
Notes Payable and Overdrafts | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 5.27% | 4.92% |
Financing Arrangements and De_5
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases, Net of Unamortized Discounts, and Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 5,613 | $ 5,094 |
Unamortized deferred financing fees | (27) | (28) |
Total long term debt excluding capital leases | 5,586 | 5,066 |
Finance lease obligations | 247 | 249 |
Long-term debt and capital leases | 5,833 | 5,315 |
Less portion due within one year | (621) | (562) |
Long-term debt and capital leases, excluding current maturities | 5,212 | 4,753 |
Other Foreign and Domestic Debt | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | 868 | 661 |
Less portion due within one year | $ (247) | $ (187) |
Interest rate | 2.98% | 4.02% |
8.75% due 2020 | Senior Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 281 | $ 280 |
Less portion due within one year | $ (281) | $ (280) |
Interest rate, stated percentage | 8.75% | 8.75% |
5.125% due 2023 | Senior Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 1,000 | $ 1,000 |
Interest rate, stated percentage | 5.125% | 5.125% |
3.75% Euro Notes due 2023 | Euro Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 274 | $ 281 |
Interest rate, stated percentage | 3.75% | 3.75% |
5% due 2026 | Senior Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 900 | $ 900 |
Interest rate, stated percentage | 5.00% | 5.00% |
4.875% due 2027 | Senior Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 700 | $ 700 |
Interest rate, stated percentage | 4.875% | 4.875% |
7% due 2028 | Senior Notes | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 150 | $ 150 |
Interest rate, stated percentage | 7.00% | 7.00% |
Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 420 | $ 0 |
Interest rate | 1.92% | 0.00% |
Second lien term loan facility due 2025 | Senior Notes | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 400 | $ 400 |
Interest rate | 3.20% | 3.97% |
European revolving credit facility due 2024 | Revolving Credit Facility | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 66 | $ 0 |
Interest rate | 1.50% | 0.00% |
Pan-European accounts receivable facility | Senior Notes | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 166 | $ 327 |
Interest rate | 1.10% | 0.98% |
Mexican credit facility | Foreign Line of Credit | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 200 | $ 200 |
Interest rate | 3.41% | 3.44% |
Chinese credit facilities | Foreign Line of Credit | Line of Credit | ||
Long-term Debt and Lease Obligation [Abstract] | ||
Long-term debt, before deferred financing fees | $ 188 | $ 195 |
Less portion due within one year | $ (93) | $ (95) |
Interest rate | 4.62% | 4.87% |
Financing Arrangements and De_6
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases, Net of Unamortized Discounts, and Interest Rates (Parenthetical) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Arrangements And Derivative Financial Instruments [Abstract] | |
Non-cash financing additions | $ 1 |
Financing Arrangements and De_7
Financing Arrangements and Derivative Financial Instruments - Notes Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Arrangements And Derivative Financial Instruments [Abstract] | ||
Notes payable | $ 3,305 | $ 3,311 |
Financing Arrangements and De_8
Financing Arrangements and Derivative Financial Instruments - Credit Facilities Narrative (Details) | Apr. 09, 2020USD ($) | Mar. 27, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Mar. 27, 2019EUR (€) |
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 8,618,000,000 | ||||||
Long-term debt, before deferred financing fees | 5,613,000,000 | $ 5,094,000,000 | |||||
Notes payable and overdrafts | 691,000,000 | 348,000,000 | |||||
Long term debt and finance leases due within one year | 621,000,000 | 562,000,000 | |||||
Accounts Receivable Factoring Facilities | Secured Debt | |||||||
Line Of Credit Facility [Line Items] | |||||||
Off-balance sheet accounts receivable securitization | 460,000,000 | 548,000,000 | |||||
Chinese credit facilities | Secured Debt | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 723,000,000 | 735,000,000 | |||||
Line of credit facility, amount outstanding | 362,000,000 | 313,000,000 | |||||
Line of credit facility, remaining borrowing capacity | 107,000,000 | 106,000,000 | |||||
Chinese credit facilities | Foreign Line of Credit | Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Notes payable and overdrafts | 174,000,000 | 118,000,000 | |||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 2,000,000,000 | ||||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | 250,000,000 | ||||||
Line of credit facility, maximum borrowing capacity inputs, increase based on value of cash | 200,000,000 | ||||||
Line of credit facility, borrowing base amount below stated amount | 501,000,000 | ||||||
Line of credit facility, amount outstanding | 420,000,000 | 0 | |||||
Letters of credit, amount outstanding | 17,000,000 | 37,000,000 | |||||
Long-term debt, before deferred financing fees | $ 420,000,000 | 0 | |||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | Subsequent Event | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 0.50% | ||||||
Increase in value of principal trademarks | $ 100,000,000 | ||||||
Commitment fee percentage | 0.25% | ||||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Annual commitment fee percentage on undrawn amounts | 0.30% | ||||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 1.25% | ||||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Subsequent Event | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 1.75% | ||||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Letter of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | ||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | |||||||
Line Of Credit Facility [Line Items] | |||||||
Required total leverage ratio | 1.25 | 1.25 | |||||
Optional reduction of basis spreads | 25.00% | ||||||
Long-term debt, before deferred financing fees | $ 400,000,000 | ||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | London Interbank Offered Rate (LIBOR) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 2.00% | ||||||
Basis spread on reference rate | 1.00% | ||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | Base Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 1.00% | ||||||
Line of Credit | Second lien term loan facility due 2025 | Secured Debt | Federal Funds Rate | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread on reference rate | 0.50% | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | ||||||
Annual commitment fee percentage on undrawn amounts | 0.25% | ||||||
Line of credit facility, amount outstanding | 0 | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 1.50% | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | European Interbank Offer Rate (Euribor) | |||||||
Line Of Credit Facility [Line Items] | |||||||
Basis spread | 1.50% | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Letter of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | € 75,000,000 | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | German Tranche | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | 180,000,000 | ||||||
Line of credit facility, amount outstanding | $ 0 | ||||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | All-Borrower Tranche | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | 620,000,000 | ||||||
Line of credit facility, amount outstanding | 66,000,000 | € 60,000,000 | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Bridge Loan | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | € 175,000,000 | ||||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | 320,000,000 | ||||||
Line of credit facility, current borrowing capacity | 166,000,000 | 151,000,000 | 327,000,000 | € 291,000,000 | |||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | 30,000,000 | ||||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Maximum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | € | € 450,000,000 | ||||||
Line of Credit | Mexican Credit Facilities | Foreign Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Long-term debt, before deferred financing fees | 200,000,000 | 200,000,000 | |||||
Line of credit facility, current borrowing capacity | 200,000,000 | 200,000,000 | |||||
Line of Credit | Chinese credit facilities | Foreign Line of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Long-term debt, before deferred financing fees | 188,000,000 | 195,000,000 | |||||
Long term debt and finance leases due within one year | $ 93,000,000 | $ 95,000,000 |
Financing Arrangements and De_9
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | $ 2,104 | $ 1,707 | |
Foreign currency derivatives, net transaction gains (losses) | 39 | $ 15 | |
Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | 342 | 365 | |
Accounts receivable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value - asset, not designated as hedging instrument | 30 | 1 | |
Fair value - asset, designated as hedging instrument | 20 | 9 | |
Other Current Liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value - asset, not designated as hedging instrument | (8) | (15) | |
Fair value - liability, designated as hedging instrument | 0 | (3) | |
Other Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value - asset, designated as hedging instrument | 4 | 1 | |
Other Long Term Liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value - liability, designated as hedging instrument | $ 0 | $ (1) |
Financing Arrangements and D_10
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 16 | |
Foreign Exchange Contract | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Amount of gains (losses) deferred to Accumulated Other Comprehensive Loss ("AOCL") | 23 | $ 5 |
Foreign Exchange Contract | 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") | $ (4) | $ (3) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Investments | $ 9 | $ 11 |
Foreign Exchange Contracts | 54 | 11 |
Total Assets at Fair Value | 63 | 22 |
Liabilities: | ||
Foreign Exchange Contracts | 8 | 19 |
Total Liabilities at Fair Value | 8 | 19 |
Supplemental Fair Value Information | ||
Carrying amount — liability | 5,586 | 5,066 |
Notes Payable and Overdrafts | 691 | 348 |
Fixed Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 3,436 | 3,434 |
Fair value — liability | 3,111 | 3,558 |
Notes Payable and Overdrafts | 199 | 143 |
Variable Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 2,150 | 1,632 |
Fair value — liability | 1,889 | 1,632 |
Notes Payable and Overdrafts | 492 | 205 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 9 | 11 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 9 | 11 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Supplemental Fair Value Information | ||
Fair value — liability | 3,300 | 3,808 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 54 | 11 |
Total Assets at Fair Value | 54 | 11 |
Liabilities: | ||
Foreign Exchange Contracts | 8 | 19 |
Total Liabilities at Fair Value | 8 | 19 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Pension, Savings and Other Po_3
Pension, Savings and Other Postretirement Benefit Plans - Defined Benefit Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | us-gaap:PensionPlansDefinedBenefitMember |
Service cost | $ 1 | $ 1 |
Interest cost | 33 | 44 |
Expected return on plan assets | (49) | (56) |
Amortization of net losses | 27 | 28 |
Net periodic pension cost | 12 | 17 |
Net curtailments/settlements/termination benefits | 1 | 0 |
Total defined benefit pension cost | $ 13 | $ 17 |
Non-U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | us-gaap:PensionPlansDefinedBenefitMember |
Service cost | $ 7 | $ 7 |
Interest cost | 14 | 18 |
Expected return on plan assets | (14) | (15) |
Amortization of prior service cost | 1 | 0 |
Amortization of net losses | 10 | 7 |
Net periodic pension cost | 18 | 17 |
Net curtailments/settlements/termination benefits | 1 | 1 |
Total defined benefit pension cost | $ 19 | $ 18 |
Pension, Savings and Other Po_4
Pension, Savings and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Postretirement benefits expense (credit) | $ (3) | $ 2 |
Defined contribution plans, contribution expenses | 30 | $ 28 |
Non-U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions to pension plans | 7 | |
Non-U.S. | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution to funded pension plans in current year | 25 | |
Non-U.S. | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution to funded pension plans in current year | 50 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Curtailment charge (credit) | (4) | |
Other Postretirement Benefits | Non-U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Curtailment charge (credit) | (4) | |
Settlement charges | $ 2 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted (shares) | 4.2 | |
Stpcl option granted, weighted average exercise price per share | $ 10.12 | |
Stock option granted, weighted average fair value per share | $ 1.97 | |
Stock-based compensation expense | $ 6 | $ 3 |
Unearned compensation cost related to the unvested portion of all stock-based awards | $ 39 | |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity instruments granted (shares) | 0.3 | |
Weighted average fair value per share granted (dollars per share) | $ 10.12 | |
Performance Share Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity instruments granted (shares) | 0.2 | |
Weighted average fair value per share granted (dollars per share) | $ 7.80 |
Stock Compensation Plans - Esti
Stock Compensation Plans - Estimated Fair Value of Stock Options using Assumptions in Black-Scholes Model (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected term (years) | 7 years 6 months |
Interest rate | 1.29% |
Volatility | 41.28% |
Dividend yield | 6.54% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, zł in Millions, claim in Millions, $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2020USD ($)employeeclaim | Mar. 31, 2020EUR (€)claim | Dec. 31, 2019USD ($) | Dec. 31, 2019PLN (zł) | Dec. 31, 2017USD ($) | Dec. 31, 2017PLN (zł) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||||||
Liability for anticipated environmental matters | $ 48 | $ 48 | |||||
Liability for anticipated environment matters, current | 12 | 13 | |||||
Workers' compensation liability | 198 | 198 | |||||
Workers' compensation liability, current | 40 | 39 | |||||
Off-balance sheet financial guarantees and other commitments | 70 | 74 | |||||
Accounts receivable | |||||||
Loss Contingencies [Line Items] | |||||||
Indemnification asset | 3 | ||||||
Other Assets | |||||||
Loss Contingencies [Line Items] | |||||||
Indemnification asset | 22 | ||||||
Workers' Compensation | |||||||
Loss Contingencies [Line Items] | |||||||
Potential workers' compensation liability in excess of recorded amount | 25 | ||||||
General Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | 303 | 293 | |||||
General Product Liability | Other Current Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | 43 | 43 | |||||
Asbestos Related Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | $ 154 | 153 | |||||
Asbestos claims dismissed to date (in claims) | claim | 152,900 | 152,900 | |||||
Accrued asbestos-related liability and gross payments to date | $ 557 | 554 | |||||
Product liability contingency, evaluation period | 10 years | ||||||
Asbestos claims receivable | $ 95 | 95 | |||||
Expected percentage of asbestos claim related losses recoverable through insurance | 60.00% | 60.00% | |||||
Asbestos claims receivable, current | $ 13 | 13 | |||||
Limits of excess insurance policies | 555 | ||||||
Amiens Labor Claims | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of plaintiffs | employee | 850 | ||||||
Contingent loss | $ 154 | € 140 | |||||
Unfavorable Regulatory Action | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantee issued | $ 44 | zł 181 | $ 40 | zł 165 | |||
Workers' Compensation Claims | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantee issued | $ 26 | $ 46 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)claim | Dec. 31, 2019USD ($)claim | |
Number of claims filed | ||
Pending claims, beginning of period | 39,600 | 43,100 |
New claims filed | 300 | 1,500 |
Claims settled/dismissed | (700) | (5,000) |
Pending claims, end of period | 39,200 | 39,600 |
Payments | $ | $ 2 | $ 22 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||
Common stock cash dividends paid | $ 37 | $ 37 |
Dividends, share-based compensation | 1 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Common stock cash dividends paid | $ 37 | |
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation | ||
Class of Stock [Line Items] | ||
Common stock repurchased (in shares) | 0 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 4,545 | $ 5,070 |
Ending balance | 3,697 | 5,031 |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,156) | (1,160) |
Other comprehensive income (loss) before reclassifications, net of tax | (216) | 30 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Ending balance | (1,372) | (1,130) |
Unrecognized Net Actuarial Losses and Prior Service Costs | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (2,983) | (2,923) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) | 4 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 26 | 26 |
Ending balance | (2,958) | (2,893) |
Deferred Derivative Gains (Losses) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 3 | 7 |
Other comprehensive income (loss) before reclassifications, net of tax | 18 | 5 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (4) | (3) |
Ending balance | 17 | 9 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (4,136) | (4,076) |
Other comprehensive income (loss) before reclassifications, net of tax | (199) | 39 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 22 | 23 |
Ending balance | $ (4,313) | $ (4,014) |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Loss - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (Income) Expense | $ (27) | $ (22) |
United States and Foreign Taxes | (249) | (6) |
Goodyear Net Income (Loss) | (619) | (61) |
Cost of Goods Sold | (2,552) | (2,879) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Goodyear Net Income (Loss) | 22 | 23 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (Income) Expense | 36 | 34 |
Income (Loss) Attributable to Parent | 34 | 0 |
United States and Foreign Taxes | (8) | (8) |
Goodyear Net Income (Loss) | 26 | 26 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent, Due to Divestitures | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (Income) Expense | (2) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
United States and Foreign Taxes | 0 | 0 |
Goodyear Net Income (Loss) | (4) | (3) |
Cost of Goods Sold | $ (4) | $ (3) |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) | Apr. 17, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||||
Pre-tax charges | $ 9,000,000 | $ 103,000,000 | |||
Cash payments | 73,000,000 | 18,000,000 | |||
Non-cash charges related to asset write Offs and accelerated depreciation | $ 4,000,000 | $ 0 | |||
Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility as Part of Strategy to Strengthen Competitiveness of Manufacturing Footprint | Scenario Forecast | |||||
Subsequent Event [Line Items] | |||||
Pre-tax charges | $ 170,000,000 | ||||
Cash payments | $ 45,000,000 | ||||
Subsequent Event | Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility as Part of Strategy to Strengthen Competitiveness of Manufacturing Footprint | |||||
Subsequent Event [Line Items] | |||||
Severance restructuring costs | $ 55,000,000 | ||||
Subsequent Event | Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility as Part of Strategy to Strengthen Competitiveness of Manufacturing Footprint | Other Associate | |||||
Subsequent Event [Line Items] | |||||
Other restructuring related costs | 40,000,000 | ||||
Subsequent Event | Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility as Part of Strategy to Strengthen Competitiveness of Manufacturing Footprint | Minimum | |||||
Subsequent Event [Line Items] | |||||
Estimated total pre-tax charges | 280,000,000 | ||||
Expected pre-tax cash charges | 170,000,000 | ||||
Other restructuring related costs | 75,000,000 | ||||
Non-cash charges related to asset write Offs and accelerated depreciation | 110,000,000 | ||||
Subsequent Event | Facility Closing | Plan to Permanently Close Gadsden, Alabama Manufacturing Facility as Part of Strategy to Strengthen Competitiveness of Manufacturing Footprint | Maximum | |||||
Subsequent Event [Line Items] | |||||
Estimated total pre-tax charges | 295,000,000 | ||||
Expected pre-tax cash charges | 180,000,000 | ||||
Other restructuring related costs | 85,000,000 | ||||
Non-cash charges related to asset write Offs and accelerated depreciation | $ 115,000,000 |