Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GOODYEAR TIRE & RUBBER CO /OH/ | ||
Entity Central Index Key | 42,582 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 267,042,491 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8.1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||||
Net Sales | $ 16,443 | $ 18,138 | $ 19,540 | |
Cost of Goods Sold | 12,164 | 13,906 | 15,422 | |
Selling, Administrative and General Expense | 2,614 | 2,720 | 2,758 | |
Rationalizations | 114 | 95 | 58 | |
Interest Expense | 412 | 428 | 392 | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ 646 | 646 | 0 | 0 |
Other (Income) Expense | (115) | 302 | 97 | |
Income before Income Taxes | 608 | 687 | 813 | |
United States and Foreign Tax (Benefit) Expense | 232 | (1,834) | 138 | |
Net Income | 376 | 2,521 | 675 | |
Less: Minority Shareholders’ Net Income | 69 | 69 | 46 | |
Goodyear Net Income | 307 | 2,452 | 629 | |
Less: Preferred Stock Dividends | 0 | 7 | 29 | |
Goodyear Net Income available to Common Shareholders | $ 307 | $ 2,445 | $ 600 | |
Goodyear Net Income available to Common Shareholders — Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 1.14 | $ 9.13 | $ 2.44 | |
Weighted Average Shares Outstanding | 269 | 268 | 246 | |
Diluted (in dollars per share) | $ 1.12 | $ 8.78 | $ 2.28 | |
Weighted Average Shares Outstanding | 273 | 279 | 277 | |
Cash Dividends Declared Per Common Share (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 376 | $ 2,521 | $ 675 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation net of tax of $(52) in 2015 ($(46) in 2014, $0 in 2013) | (315) | (298) | (151) |
Reclassification adjustment for amounts recognized in income net of tax of $0 in all periods | 16 | 3 | 1 |
Defined benefit plans: | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost net of tax of $34 in 2015 ($36 in 2014, $10 in 2013) | 69 | 79 | 232 |
Decrease (Increase) in net actuarial losses net of tax of $(19) in 2015 ($(135) in 2014, $34 in 2013) | (68) | (82) | 519 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of $67 in 2015 ($13 in 2014, $1 in 2013) | 259 | 35 | 2 |
Prior service credit (cost) from plan amendments net of tax of $0 in in all periods | 0 | 0 | 31 |
Deferred derivative gains (losses) net of tax of $3 in 2015 ($1 in 2014, $1 in 2013) | 17 | 16 | 1 |
Reclassification adjustment for amounts recognized in income net of tax $(3) in 2015 ($(1) in 2014, $0 in 2013) | (25) | 1 | 2 |
Unrealized investment gains net of tax of $(2) in 2015 ($1 in 2014, $0 in 2013) | (4) | 2 | 8 |
Reclassification adjustment for amounts recognized in income net of tax $2 in 2015 ($0 in 2014, $0 in 2013) | (32) | 0 | 0 |
Deconsolidation of Venezuelan subsidiary net of tax of $0 | 248 | 0 | 0 |
Other Comprehensive Income (Loss) | 165 | (244) | 645 |
Comprehensive Income (Loss) | 541 | 2,277 | 1,320 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 6 | 20 | 78 |
Goodyear Comprehensive Income (Loss) | $ 535 | $ 2,257 | $ 1,242 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Loss) Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on foreign currency translation | $ (52) | $ (46) | $ 0 |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | 0 |
Defined benefit plans: | |||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 34 | 36 | 10 |
Tax on decrease (increase) in net actuarial losses | (19) | (135) | 34 |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 67 | 13 | 1 |
Tax on prior service credit (cost) from plan amendments | 0 | 0 | 0 |
Tax on deferred derivative gains (losses) | 3 | 1 | 1 |
Tax on reclassification adjustment for amounts recognized in income | (3) | (1) | 0 |
Tax on unrealized investment gains | (2) | 1 | 0 |
Tax on unrealized investment gains reclassification adjustment recognized in income | 2 | 0 | 0 |
Tax on deconsolidation of Venezuelan subsidiary | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,476 | $ 2,161 |
Accounts Receivable | 2,033 | 2,126 |
Inventories | 2,464 | 2,671 |
Prepaid Expenses and Other Current Assets | 168 | 201 |
Total Current Assets | 6,141 | 7,159 |
Goodwill | 555 | 601 |
Intangible Assets | 138 | 138 |
Deferred Income Taxes | 2,141 | 2,253 |
Other Assets | 687 | 740 |
Property, Plant and Equipment | 6,777 | 7,153 |
Total Assets | 16,439 | 18,044 |
Current Liabilities: | ||
Accounts Payable-Trade | 2,769 | 2,878 |
Compensation and Benefits | 666 | 724 |
Other Current Liabilities | 886 | 950 |
Notes Payable and Overdrafts | 49 | 30 |
Long Term Debt and Capital Leases Due Within One Year | 587 | 148 |
Total Current Liabilities | 4,957 | 4,730 |
Long Term Debt and Capital Leases | 5,120 | 6,216 |
Compensation and Benefits | 1,468 | 1,676 |
Deferred Income Taxes | 91 | 90 |
Other Long Term Liabilities | 661 | 905 |
Total Liabilities | $ 12,297 | $ 13,617 |
Commitments and Contingent Liabilities | ||
Minority Shareholders’ Equity | $ 0 | $ 582 |
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 267 million (269 million in 2014) | 267 | 269 |
Capital Surplus | 3,093 | 3,141 |
Retained Earnings | 4,570 | 4,331 |
Accumulated Other Comprehensive Loss | (4,010) | (4,131) |
Goodyear Shareholders’ Equity | 3,920 | 3,610 |
Minority Shareholders’ Equity — Nonredeemable | 222 | 235 |
Total Shareholders’ Equity | 4,142 | 3,845 |
Total Liabilities and Shareholders’ Equity | $ 16,439 | $ 18,044 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
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) | 267,000,000 | 269,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Goodyear Shareholders' Equity | Minority Shareholders' Equity - Non-Redeemable | Total Shareholders' Equity |
Increase (Decrease) in Stockholders' Equity | |||||||||
Adjustment to fair value method of Canadian pension expense | Restatement Adjustment | $ (12) | $ 12 | |||||||
Preferred stock beginning balance (shares) (Previously Reported) at Dec. 31, 2012 | 10,000,000 | ||||||||
Preferred stock beginning balance (shares) at Dec. 31, 2012 | 10,000,000 | ||||||||
Common stock beginning balance (shares) (Previously Reported) at Dec. 31, 2012 | 245,240,762 | ||||||||
Common stock beginning balance (shares) at Dec. 31, 2012 | 245,240,762 | ||||||||
Beginning balance (Previously Reported) at Dec. 31, 2012 | $ 500 | $ 245 | $ 2,815 | 1,370 | (4,560) | $ 370 | $ 255 | $ 625 | |
Beginning balance at Dec. 31, 2012 | 500 | $ 245 | 2,815 | 1,358 | (4,548) | 370 | 255 | 625 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | $ 675 | 629 | 629 | 45 | 674 | ||||
Foreign currency translation (net of tax) | (151) | (153) | (153) | (21) | (174) | ||||
Reclassification adjustment for amounts recognized in income (net of tax) | 1 | 1 | 1 | 1 | |||||
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 232 | 224 | 224 | 224 | |||||
Decrease (increase) in net actuarial losses (net of tax) | 519 | 498 | 498 | 498 | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 2 | 2 | 2 | 2 | |||||
Prior service credit from plan amendments (net of tax) | 31 | 30 | 30 | 30 | |||||
Deferred derivative gains (losses) (net of tax) | 1 | 1 | 1 | 1 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | 2 | 2 | 2 | 2 | |||||
Unrealized investment gains (losses) (net of tax) | 8 | 8 | 8 | 8 | |||||
Reclassification adjustment for amounts recognized in income net of tax $2 in 2015 ($0 in 2014, $0 in 2013) | 0 | ||||||||
Deconsolidation of Venezuelan subsidiary net of tax of $0 | 0 | ||||||||
Other Comprehensive Income (Loss) | 645 | 613 | (21) | 592 | |||||
Comprehensive Income (Loss) | 1,320 | 1,242 | 24 | 1,266 | |||||
Purchase of subsidiary shares from minority interest | (2) | (2) | (2) | (4) | |||||
Dividends declared to minority shareholders | (11) | (11) | |||||||
Stock-based compensation plans | 15 | 15 | 15 | ||||||
Dividends declared | (41) | (41) | (41) | ||||||
Common stock issued from treasury (shares) | 2,512,267 | ||||||||
Common stock issued from treasury | $ 3 | 19 | 22 | 22 | |||||
Other | (4) | (4) | |||||||
Ending balance at Dec. 31, 2013 | $ 500 | $ 248 | 2,847 | 1,946 | (3,935) | 1,606 | 262 | 1,868 | |
Preferred stock ending balance (shares) at Dec. 31, 2013 | 10,000,000 | ||||||||
Common stock ending balance (shares) at Dec. 31, 2013 | 247,753,029 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 2,521 | 2,452 | 2,452 | 23 | 2,475 | ||||
Foreign currency translation (net of tax) | (298) | (206) | (206) | (18) | (224) | ||||
Reclassification adjustment for amounts recognized in income (net of tax) | 3 | 3 | 3 | 3 | |||||
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 79 | 74 | 74 | 74 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (82) | (112) | (112) | (112) | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 35 | 31 | 31 | 31 | |||||
Prior service credit from plan amendments (net of tax) | 0 | ||||||||
Deferred derivative gains (losses) (net of tax) | 16 | 13 | 13 | 13 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | 1 | ||||||||
Unrealized investment gains (losses) (net of tax) | 2 | 2 | 2 | 2 | |||||
Reclassification adjustment for amounts recognized in income net of tax $2 in 2015 ($0 in 2014, $0 in 2013) | 0 | ||||||||
Deconsolidation of Venezuelan subsidiary net of tax of $0 | 0 | ||||||||
Other Comprehensive Income (Loss) | (244) | (195) | (18) | (213) | |||||
Comprehensive Income (Loss) | 2,277 | 2,257 | 5 | 2,262 | |||||
Purchase of subsidiary shares from minority interest | (4) | (1) | (5) | (16) | (21) | ||||
Dividends declared to minority shareholders | (16) | (16) | |||||||
Stock-based compensation plans | 20 | 20 | 20 | ||||||
Repurchase of common stock (shares) | (8,955,107) | ||||||||
Repurchase of common stock | $ (9) | (225) | (234) | (234) | |||||
Dividends declared | (67) | (67) | (67) | ||||||
Common stock issued from treasury (shares) | 3,111,843 | ||||||||
Common stock issued from treasury | $ 2 | 31 | 33 | 33 | |||||
Preferred stock conversion (shares) | (10,000,000) | 27,573,735 | |||||||
Preferred stock conversion | $ (500) | $ 28 | 472 | 0 | |||||
Ending balance at Dec. 31, 2014 | $ 3,845 | $ 0 | $ 269 | 3,141 | 4,331 | (4,131) | 3,610 | 235 | 3,845 |
Preferred stock ending balance (shares) at Dec. 31, 2014 | 0 | ||||||||
Common stock ending balance (shares) at Dec. 31, 2014 | 269,000,000 | 269,483,500 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | $ 376 | 307 | 307 | 22 | 329 | ||||
Foreign currency translation (net of tax) | (315) | (251) | (251) | (26) | (277) | ||||
Reclassification adjustment for amounts recognized in income (net of tax) | 16 | 16 | 16 | 16 | |||||
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 69 | 66 | 66 | 66 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (68) | (68) | (68) | (68) | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 259 | 259 | 259 | 259 | |||||
Prior service credit from plan amendments (net of tax) | 0 | ||||||||
Deferred derivative gains (losses) (net of tax) | 17 | 15 | 15 | 15 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | (25) | (21) | (21) | (21) | |||||
Unrealized investment gains (losses) (net of tax) | (4) | (4) | (4) | (4) | |||||
Reclassification adjustment for amounts recognized in income net of tax $2 in 2015 ($0 in 2014, $0 in 2013) | (32) | (32) | (32) | (32) | |||||
Deconsolidation of Venezuelan subsidiary net of tax of $0 | 248 | 248 | 248 | 248 | |||||
Other Comprehensive Income (Loss) | 165 | 228 | (26) | 202 | |||||
Comprehensive Income (Loss) | 541 | 535 | (4) | 531 | |||||
Purchase of subsidiary shares from minority interest | 60 | (107) | (47) | 0 | (47) | ||||
Dividends declared to minority shareholders | (9) | (9) | |||||||
Stock-based compensation plans | 19 | 19 | 19 | ||||||
Repurchase of common stock (shares) | (5,647,429) | ||||||||
Repurchase of common stock | $ (5) | (175) | (180) | (180) | |||||
Dividends declared | (68) | (68) | (68) | ||||||
Common stock issued from treasury (shares) | 3,181,911 | ||||||||
Common stock issued from treasury | $ 3 | 48 | 51 | 51 | |||||
Ending balance at Dec. 31, 2015 | $ 4,142 | $ 267 | $ 3,093 | $ 4,570 | $ (4,010) | $ 3,920 | $ 222 | $ 4,142 | |
Common stock ending balance (shares) at Dec. 31, 2015 | 267,000,000 | 267,017,982 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity Parenthetical - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tax on foreign currency translation | $ (52) | $ (46) | $ 0 | |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | 0 | |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 34 | 36 | 10 | |
Tax on decrease (increase) in net actuarial losses | (19) | (135) | 34 | |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 67 | 13 | 1 | |
Tax on prior service credit from plan amendments | 0 | 0 | 0 | |
Tax on deferred derivative gains | 3 | 1 | 1 | |
Tax on reclassification adjustment for amounts recognized in income | (3) | (1) | 0 | |
Tax on unrealized investment gains | (2) | 1 | 0 | |
Tax on unrealized investment gains reclassification adjustment recognized in income | $ 2 | $ 0 | $ 0 | |
Total Shareholders' Equity | ||||
Common treasury stock (shares) | 11,445,445 | 8,979,927 | 3,136,663 | 5,648,930 |
Tax on foreign currency translation | $ (52) | $ (46) | $ 0 | |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | 0 | |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 34 | 36 | 9 | |
Tax on decrease (increase) in net actuarial losses | (19) | (129) | 33 | |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 67 | 13 | 1 | |
Tax on prior service credit from plan amendments | 0 | |||
Tax on deferred derivative gains | 3 | 1 | 1 | |
Tax on reclassification adjustment for amounts recognized in income | (3) | 0 | ||
Tax on unrealized investment gains | (2) | $ 1 | $ 0 | |
Tax on unrealized investment gains reclassification adjustment recognized in income | 2 | |||
Tax on deconsolidation of subsidiary | $ 0 |
Consolidated Statements Of Sha9
Consolidated Statements Of Shareholders' Equity (Minority Equity) - USD ($) $ in Millions | Total | Minority Shareholders' Equity - Redeemable |
Balance at beginning of year at Dec. 31, 2012 | $ 534 | |
Increase (Decrease) in Stockholders' Equity | ||
Net income | $ 675 | 1 |
Foreign currency translation (net of tax) | (151) | 23 |
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 232 | 8 |
Decrease (increase) in net actuarial losses (net of tax) | 519 | 21 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 2 | 0 |
Prior service credit from plan amendments (net of tax) | 31 | 1 |
Deferred derivative gains (losses) (net of tax) | 1 | 0 |
Reclassification adjustment for amounts recognized in income (net of tax) | 2 | 0 |
Other Comprehensive Income (Loss) | 645 | 53 |
Comprehensive Income (Loss) | 1,320 | 54 |
Dividends declared to minority shareholders | (11) | |
Dissolution of global alliance | 0 | |
Balance at end of year at Dec. 31, 2013 | 577 | |
Increase (Decrease) in Stockholders' Equity | ||
Net income | 2,521 | 46 |
Foreign currency translation (net of tax) | (298) | (74) |
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 79 | 5 |
Decrease (increase) in net actuarial losses (net of tax) | (82) | 30 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 35 | 4 |
Prior service credit from plan amendments (net of tax) | 0 | 0 |
Deferred derivative gains (losses) (net of tax) | 16 | 3 |
Reclassification adjustment for amounts recognized in income (net of tax) | 1 | 1 |
Other Comprehensive Income (Loss) | (244) | (31) |
Comprehensive Income (Loss) | 2,277 | 15 |
Dividends declared to minority shareholders | (10) | |
Dissolution of global alliance | 0 | |
Balance at end of year at Dec. 31, 2014 | 582 | 582 |
Increase (Decrease) in Stockholders' Equity | ||
Net income | 376 | 47 |
Foreign currency translation (net of tax) | (315) | (38) |
Amortization of prior service cost and unrecognized gains and losses included in net periodic benefit cost (net of tax) | 69 | 3 |
Decrease (increase) in net actuarial losses (net of tax) | (68) | 0 |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 259 | 0 |
Prior service credit from plan amendments (net of tax) | 0 | 0 |
Deferred derivative gains (losses) (net of tax) | 17 | 2 |
Reclassification adjustment for amounts recognized in income (net of tax) | (25) | (4) |
Other Comprehensive Income (Loss) | 165 | (37) |
Comprehensive Income (Loss) | 541 | 10 |
Dividends declared to minority shareholders | 0 | |
Dissolution of global alliance | (592) | |
Balance at end of year at Dec. 31, 2015 | $ 0 | $ 0 |
Consolidated Statements Of Sh10
Consolidated Statements Of Shareholders' Equity (Minority Equity) Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax on foreign currency translation | $ (52) | $ (46) | $ 0 |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 34 | 36 | 10 |
Tax on decrease (increase) in net actuarial losses | (19) | (135) | 34 |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 67 | 13 | 1 |
Tax on prior service credit from plan amendments | 0 | 0 | 0 |
Tax on deferred derivative gains | 3 | 1 | 1 |
Tax on reclassification adjustment for amounts recognized in income | (3) | (1) | 0 |
Minority Shareholders' Equity - Redeemable | |||
Tax on foreign currency translation | 0 | 0 | 0 |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 0 | 0 | 1 |
Tax on decrease (increase) in net actuarial losses | 0 | (6) | 1 |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 0 | 0 |
Tax on prior service credit from plan amendments | 0 | 0 | 0 |
Tax on deferred derivative gains | 0 | 0 | 0 |
Tax on reclassification adjustment for amounts recognized in income | $ 0 | $ (1) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 376 | $ 2,521 | $ 675 |
Adjustments to Reconcile Net income to Cash Fows from Operating Activities: | |||
Depreciation and Amortization | 698 | 732 | 722 |
Amortization and Write-Off of Debt Issuance Costs | 23 | 14 | 18 |
Provision for Deferred Income Taxes | 79 | (1,970) | (34) |
Loss on Deconsolidation of Venezuelan Subsidiary | 646 | 0 | 0 |
Net Pension Curtailments and Settlements (Note 17) | 139 | 39 | 0 |
Net Rationalization Charges | 114 | 95 | 58 |
Rationalization Payments | (144) | (226) | (72) |
Net gains on asset sales | (71) | (3) | (8) |
Pension Contributions and Direct Payments | (103) | (1,338) | (1,162) |
Net Venezuela Currency Loss | 0 | 200 | 115 |
Gain on Recognition of Deferred Royalty Revenue (Note 4) | (155) | 0 | 0 |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | |||
Accounts Receivable | (31) | 75 | 79 |
Inventories | (89) | (35) | 366 |
Accounts Payable — Trade | 78 | (41) | (30) |
Compensation and Benefits | 66 | 223 | 243 |
Other Current Liabilities | (28) | (40) | (28) |
Other Assets and Liabilities | 89 | 94 | (4) |
Total Cash Flows from Operating Activities | 1,687 | 340 | 938 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (983) | (923) | (1,168) |
Asset Dispositions | 62 | 18 | 25 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | (320) | 0 | 0 |
(Increase) Decrease in Restricted Cash | (6) | 5 | 14 |
Short Term Securities Acquired | (77) | (72) | (105) |
Short Term Securities Redeemed | 69 | 95 | 89 |
Other Transactions | (7) | 26 | 9 |
Total Cash Flows from Investing Activities | (1,262) | (851) | (1,136) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 103 | 46 | 31 |
Short Term Debt and Overdrafts Paid | (84) | (24) | (120) |
Long Term Debt Incurred | 2,819 | 1,842 | 1,913 |
Long Term Debt Paid | (3,315) | (1,555) | (681) |
Common Stock Issued | 53 | 39 | 26 |
Common Stock Repurchased | (180) | (234) | (4) |
Common Stock Dividends Paid | (68) | (60) | (12) |
Preferred Stock Dividends Paid | 0 | (15) | (29) |
Transactions with Minority Interests in Subsidiaries | (9) | (49) | (26) |
Debt Related Costs and Other Transactions | (33) | (1) | (16) |
Dissolution of Global Alliance | (271) | 0 | 0 |
Total Cash Flows from Financing Activities | (985) | (11) | 1,082 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (125) | (313) | (169) |
Net Change in Cash and Cash Equivalents | (685) | (835) | 715 |
Cash and Cash Equivalents at Beginning of the Year | 2,161 | 2,996 | 2,281 |
Cash and Cash Equivalents at End of the Year | $ 1,476 | $ 2,161 | $ 2,996 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies A summary of the significant accounting policies used in the preparation of the accompanying consolidated financial statements follows: Basis of Presentation Recently Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance on simplifying the presentation of deferred income taxes that requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. We adopted the standards update effective October 1, 2015, electing to apply it retrospectively to all periods presented. The adoption of this standards update affects balance sheet presentation, and as of December 31, 2014 it resulted in an increase in noncurrent deferred income tax assets of $500 million , a reduction of current deferred income tax assets of $565 million , a reduction of noncurrent deferred income tax liabilities of $60 million and a reduction of current deferred income tax liabilities of $5 million . Effective January 1, 2015, we adopted an accounting standards update providing new guidance on the requirements for reporting a discontinued operation. The standards update allows only those disposals representing a strategic shift in operations with a major effect on the entity's operations and financial results to be reported as a discontinued operation. It also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operations. Additional disclosures are also required for discontinued operations and individually material disposal transactions that do not meet the definition of a discontinued operation. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In September 2015, the FASB issued an accounting standards update with new guidance that eliminates the requirement in a business combination to restate prior period financial statements for measurement period adjustments. Instead, measurement period adjustments will be recognized in the reporting period in which the adjustment is identified. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015. The amendments should be applied prospectively to measurement period adjustments that occur after the effective date of this update with early adoption permitted for financial statements that have not been issued. We will adopt this standards update as required and recognize any such future adjustments accordingly. In July 2015, the FASB issued an accounting standards update with new guidance on simplifying the measurement of inventory. Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact of adopting this standards update on our consolidated financial statements. In April 2015, the FASB issued an accounting standards update with new guidance on whether a cloud computing arrangement includes a software license and the accounting for such an arrangement. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the agreement should be accounted for as a service contract. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In April 2015, the FASB issued an accounting standards update with new guidance on the presentation of debt issuance costs that requires all costs incurred to issue debt to be presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. In August 2015, the FASB issued an accounting standards update that allows debt issuance costs incurred in connection with line of credit arrangements to be presented as an asset. The standards updates are effective for fiscal years and interim periods beginning after December 15, 2015 on a retrospective basis, with early adoption permitted. The adoption of these standards updates affects presentation only and is not expected to have a material impact on our consolidated financial statements. In August 2014, the FASB issued an accounting standards update with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management's mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standards update is effective for the first annual period ending after December 15, 2016, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. We are currently evaluating our significant contracts and assessing any impact of adopting this standards update on our consolidated financial statements. Other We were a party to shareholder agreements concerning certain of our less-than-wholly-owned consolidated subsidiaries. Under the terms of certain of these agreements, the minority shareholders had the right to require us to purchase their ownership interests in the respective subsidiaries if there was a change in control of the Company, a bankruptcy of the Company, or other circumstances. Accordingly, we have reported the minority equity in those subsidiaries outside of shareholders’ equity. On October 1, 2015, we completed the dissolution of our global alliance with Sumitomo Rubber Industries, Ltd. ("SRI"). Refer to Note 5. During the fourth quarter of 2015, the value of pension assets used in the calculation of pension expense for our Canadian plans was changed from market-related value to fair value. This change is considered preferable because it better reflects recent gains or losses from pension assets in pension expense. As a result, all of our pension plans now use fair value in the calculation of pension expense. The change to the fair value method for these plans was retrospectively applied by restating all periods presented. The impact on the consolidated financial statements for the prior periods presented was insignificant. 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. Deconsolidation of Venezuelan Subsidiary Our wholly-owned subsidiary, C.A. Goodyear de Venezuela, manufactures, markets and distributes consumer and commercial tires throughout Venezuela. Evolving conditions in Venezuela, including currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar fuerte and the U.S. dollar, and have restricted the ability of our Venezuelan subsidiary to pay dividends and royalties and to settle liabilities. These currency exchange regulations, combined with other government regulations such as price and profit margin controls and strict labor laws, have increasingly limited our ability to make and execute operational decisions at our Venezuelan subsidiary. This lack of currency exchangeability, combined with these other operating restrictions, have significantly limited our Venezuelan subsidiary's ability to maintain normal production and control over its operations. We expect these conditions to continue for the foreseeable future. As a result of these conditions, we concluded that effective as of December 31, 2015, we do not meet the accounting criteria for control over our Venezuelan subsidiary and began reporting the results of our Venezuelan subsidiary using the cost method of accounting. This change resulted in a pre-tax charge of $646 million in the fourth quarter of 2015. The pre-tax charge includes the derecognition of the carrying amounts of our Venezuelan subsidiary's assets and liabilities, including $320 million of Cash and Cash Equivalents, that are no longer reported in the Consolidated Balance Sheet as of December 31, 2015. The pre-tax charge also includes $248 million of foreign currency translation losses and pension losses previously included in Accumulated Other Comprehensive Loss ("AOCL") in the Company’s Consolidated Balance Sheet. We have determined the fair value of our investment in, and receivables from, our Venezuelan subsidiary to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. In future reporting periods, our financial results will not include the operating results of our Venezuelan subsidiary. We will record income from sales of inventory and raw materials or from dividends or royalties to the extent cash is received from our Venezuelan subsidiary. Our exposure to future losses resulting from our Venezuelan subsidiary is limited to the extent that we decide to provide raw materials or finished goods to, or make future investments in, our Venezuelan subsidiary. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates, including those related to: • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • workers’ compensation, • general and product liabilities and other litigation, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. Revenue Recognition and Accounts Receivable Valuation Revenues are recognized when finished products are shipped to unaffiliated customers, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, and collectability is reasonably assured. A provision for sales returns, discounts and allowances is recorded at the time of sale. Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk. The adequacy of the allowances are assessed quarterly. Shipping and Handling Costs Costs incurred for transportation of products to customers are recorded as a component of Cost of Goods Sold (“CGS”). Research and Development Costs Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. Research and development expenditures were $382 million , $399 million and $390 million in 2015 , 2014 and 2013 , respectively. Warranty Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties we offer is on a prorated basis. Warranty reserves are based on past claims experience, sales history and other considerations. Refer to Note 19 . Environmental Cleanup Matters We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. We determine our liability on a site by site basis and record a liability at the time when it is probable and can be reasonably estimated. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Our estimated liability is not discounted or reduced for possible recoveries from insurance carriers. Refer to Note 19 . Legal Costs We record a liability for estimated legal and defense costs related to pending general and product liability claims, environmental matters and workers’ compensation claims. Refer to Note 19 . Advertising Costs Costs incurred for producing and communicating advertising are generally expensed when incurred as a component of Selling, Administrative and General Expense (“SAG”). Costs incurred under our cooperative advertising programs with dealers and franchisees are generally recorded as reductions of sales as related revenues are recognized. Advertising costs, including costs for our cooperative advertising programs with dealers and franchisees, were $385 million , $430 million and $408 million in 2015 , 2014 and 2013 , respectively. Rationalizations We record costs for rationalization actions implemented to reduce excess and high-cost manufacturing capacity and operating and administrative costs. Associate-related costs include severance, supplemental unemployment compensation and benefits, medical benefits, pension curtailments, postretirement benefits, and other termination benefits. For ongoing benefit arrangements, a liability is recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. These conditions are generally met when the restructuring plan is approved by management. For one-time benefit arrangements, a liability is incurred and must be accrued at the date the plan is communicated to employees, unless they will be retained beyond a minimum retention period. In this case, the liability is calculated at the date the plan is communicated to employees and is accrued ratably over the future service period. Other costs generally include non-cancelable lease costs, contract terminations, and relocation costs. A liability for these costs is recognized in the period in which the liability is incurred. Rationalization charges related to accelerated depreciation and asset impairments are recorded in CGS or SAG. Refer to Note 2 . Income Taxes Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between carrying values of assets and liabilities for financial reporting purposes and such carrying values as measured under applicable tax laws. The effect on deferred tax assets or liabilities of a change in the tax law or tax rate is recognized in the period the change is enacted. Valuation allowances are recorded to reduce net deferred tax assets to the amount that is more likely than not to be realized. The calculation of our tax liabilities also involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. Refer to Note 6 . Cash and Cash Equivalents / Consolidated Statements of Cash Flows Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Substantially all of our cash and short-term investment securities are held with investment grade-rated counterparties. At December 31, 2015 , our cash investments with any single counterparty did not exceed $306 million . Cash flows associated with derivative financial instruments designated as hedges of identifiable transactions or events are classified in the same category as the cash flows from the related hedged items. Cash flows associated with derivative financial instruments not designated as hedges are classified as operating activities. Bank overdrafts are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. Customer prepayments for products and government grants received that are related to operations are reported as operating activities. Government grants received that are solely related to capital expenditures are reported as investing activities. The Consolidated Statements of Cash Flows are presented net of capital leases of $3 million , $12 million and $19 million originating in the years ended December 31, 2015 , 2014 and 2013 , respectively, and net of capitalized costs related to the Global and North America Headquarters facility and parking deck of $18 million for the year ended December 31, 2013 . Cash flows from investing activities in 2015 exclude $254 million of accrued capital expenditures remaining unpaid at December 31, 2015, and include payment for $212 million of capital expenditures that were accrued and unpaid at December 31, 2014. Restricted Net Assets In certain countries where we operate, transfers of funds into or out of such countries by way of dividends, loans or advances are generally or periodically subject to various governmental regulations. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make cash distributions. At December 31, 2015 , approximately $551 million of net assets were subject to such regulations or limitations. Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We determine a provision for excess and obsolete inventory based on management’s review of inventories on hand compared to estimated future usage and sales. Refer to Note 10 . Goodwill and Other Intangible Assets Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then the amount of the impairment loss, if any, must be measured. In addition to annual testing, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives, and reviewed for impairment whenever events or circumstances warrant such a review. Refer to Note 11 . Investments Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable securities classified as available-for-sale are recorded in AOCL, net of tax. We regularly review our investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the Consolidated Statements of Operations. Refer to Notes 12 and 21 . Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are solely related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. Depreciation expense for property, plant and equipment was $697 million , $730 million and $719 million in 2015 , 2014 and 2013 , respectively. Refer to Notes 3 and 13 . Foreign Currency Translation The functional currency for most subsidiaries outside the United States is the local currency. Financial statements of these subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. The U.S. dollar is used as the functional currency in countries with a history of high inflation and in countries that predominantly sell into the U.S. dollar export market. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in Other (Income) Expense. Translation adjustments are recorded in AOCL. Income taxes are generally not provided for foreign currency translation adjustments. Derivative Financial Instruments and Hedging Activities To qualify for hedge accounting, hedging instruments must be designated as hedges and meet defined correlation and effectiveness criteria. These criteria require that the anticipated cash flows and/or changes in fair value of the hedging instrument substantially offset those of the position being hedged. Derivative contracts are reported at fair value on the Consolidated Balance Sheets as Accounts Receivable or Other Current Liabilities. Deferred gains and losses on contracts designated as cash flow hedges are recorded net of tax in AOCL. Ineffectiveness in hedging relationships is recorded in Other (Income) Expense in the current period. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other Expense in the current period. Gains and losses on contracts with no hedging designation are also recorded in Other Expense in the current period. We do not include premiums or discounts on forward currency contracts in our assessment of hedge effectiveness. Premiums and discounts on contracts designated as hedges are recognized in Other (Income) Expense over the life of the contract. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — Gains and losses (including deferred gains and losses in AOCL) are recognized in Other (Income) Expense when contracts are terminated concurrently with the termination of the hedged position. To the extent that such position remains outstanding, gains and losses are amortized to Interest Expense or to Other Expense over the remaining life of that position. Gains and losses on contracts that we temporarily continue to hold after the early termination of a hedged position, or that otherwise no longer qualify for hedge accounting, are recognized in Other (Income) Expense. Refer to Note 15 . Stock-Based Compensation We measure compensation cost arising from the grant of stock-based awards to employees at fair value and recognize such cost in income over the period during which the service is provided, usually the vesting period. We recognize compensation expense using the straight-line approach. Stock-based awards to employees include grants of performance share units, restricted stock units and stock options. We measure the fair value of grants of performance share units and restricted stock 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. We estimate the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: • Expected term represents the period of time that options granted are expected to be outstanding based on our historical experience of option exercises; • Expected volatility is measured using the weighted average of historical daily changes in the market price of our common stock over the expected term of the award and implied volatility calculated for our exchange traded options with an expiration date greater than one year; • Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and • Forfeitures are based substantially on the history of cancellations of similar awards granted in prior years. Refer to Note 18. Earnings Per Share of Common Stock Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share primarily reflects the dilutive impact of outstanding stock options, mandatory convertible preferred stock and related dividends. All earnings per share amounts in these notes to the consolidated financial statements are diluted, unless otherwise noted. Refer to Note 7 . Fair Value Measurements Valuation Hierarchy Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Valuation methodologies used for assets and liabilities measured at fair value are as follows: Investments Where quoted prices are available in an active market, investments are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics or inputs other than quoted prices that are observable for the security, and would be classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities would be classified within Level 3 of the valuation hierarchy. Derivative Financial Instruments Exchange-traded derivative financial instruments that are valued using quoted prices would be classified within Level 1 of the valuation hierarchy. Derivative financial instruments valued using internally-developed models that use as their basis readily observable market parameters are classified within Level 2 of the valuation hierarchy. Derivative financial instruments that are valued based upon models with significant unobservable market parameters, and that are normally traded less actively, would be classified within Level 3 of the valuation hierarchy. Refer to Notes 15 and 16 . Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Rationalization Programs | Costs Associated with Rationalization Programs In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce excess and high-cost manufacturing capacity and to reduce associate headcount. The following table presents the roll-forward of the liability balance between periods: (In millions) Associate-related Costs Other Costs Total Balance at December 31, 2012 $ 229 $ 23 $ 252 2013 charges 58 17 75 Incurred, Net of Foreign Currency Translation of $7 million and $0 million, respectively (42 ) (31 ) (73 ) Reversed to the Statement of Operations (13 ) (4 ) (17 ) Balance at December 31, 2013 $ 232 $ 5 $ 237 2014 charges (1) 76 52 128 Incurred, Net of Foreign Currency Translation of $(18) million and $0 million, respectively (2) (186 ) (49 ) (235 ) Reversed to the Statement of Operations (5 ) (6 ) (11 ) Balance at December 31, 2014 $ 117 $ 2 $ 119 2015 charges (1) 86 30 116 Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively (2) (106 ) (25 ) (131 ) Reversed to the Statement of Operations (1 ) — (1 ) Balance at December 31, 2015 $ 96 $ 7 $ 103 (1) Charges in 2015 of $116 million exclude $1 million , and charges in 2014 of $128 million exclude $22 million , of pension curtailment gains recorded in Rationalizations in the Statement of Operations. (2) Incurred in 2015 of $131 million excludes $25 million , and incurred in 2014 of $235 million excludes $20 million , of rationalization payments for labor claims relating to a previously closed facility in Greece. Significant rationalization actions initiated in 2015 included a plan to close our Wolverhampton, U.K. mixing and retreading facility and to transfer the production to other manufacturing facilities in EMEA and a plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA. We also initiated plans for SAG headcount reductions in EMEA, North America and Latin America. The accrual balance of $103 million at December 31, 2015 is expected to be substantially utilized within the next 12 months and includes $36 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility and the plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA, as well as $27 million related to the plan to exit the farm tire business in EMEA and the closure of one of our manufacturing facilities in Amiens, France. The net rationalization charges included in Income before Income Taxes are as follows: (In millions) 2015 2014 2013 Current Year Plans Associate Severance and Other Related Costs $ 66 $ 22 $ 42 Other Exit and Non-Cancelable Lease Costs 7 1 3 Current Year Plans - Net Charges $ 73 $ 23 $ 45 Prior Year Plans Associate Severance and Other Related Costs $ 19 $ 49 $ 3 Pension Curtailment Gain (1 ) (22 ) — Other Exit and Non-Cancelable Lease Costs 23 45 10 Prior Year Plans - Net Charges 41 72 13 Total Net Charges $ 114 $ 95 $ 58 Asset Write-off and Accelerated Depreciation Charges $ 8 $ 7 $ 23 Rationalization activities initiated in 2015 consisted primarily of charges of $38 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility and a plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA. Additional charges for the year ended December 31, 2015 primarily related to plans to reduce manufacturing and SAG headcount in EMEA, North America and Latin America. Substantially all of the new charges related to future cash outflows. Net prior year plan charges recognized in the year ended December 31, 2015 include charges of $33 million for associate severance and idle plant costs related to the closure of one of our manufacturing facilities in Amiens, France and our exit from the farm tire business in EMEA. Approximately 800 associates will be released under plans initiated in 2015 , of which approximately 200 associates have been released as of December 31, 2015 . In 2015, approximately 200 associates were released under plans initiated in prior years, primarily related to the plan to exit the farm tire business in EMEA and the closure of one of our manufacturing facilities in Amiens, France. In total, approximately 700 associates remain to be released under rationalization plans. At December 31, 2015 , approximately 800 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note 19. Accelerated depreciation charges in 2015 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS. Rationalization activities initiated in 2014 consisted primarily of manufacturing headcount reductions related to EMEA's plans to improve operating efficiency. In addition, EMEA, Latin America and Asia Pacific also initiated plans to reduce SAG headcount. Net prior year plan charges for the year ended December 31, 2014 of $72 million include charges of $74 million for associate severance and idle plant costs, partially offset by a pension curtailment gain of $22 million , related to the closure of one of our manufacturing facilities in Amiens, France. Asset write-off and accelerated depreciation charges of $7 million in 2014 related to property and equipment in one of our manufacturing facilities in the U.K and property and equipment in one of our manufacturing facilities in Amiens, France. Rationalization activities initiated in 2013 consisted primarily of manufacturing headcount reductions related to EMEA's plans to improve efficiency and reduce manufacturing capacity in certain Western European countries. In addition, Asia Pacific also initiated plans primarily relating to SAG headcount reductions and the closure of retail facilities in Australia and New Zealand. Other rationalization actions in 2013 related to plans to reduce manufacturing and SAG through headcount reductions in all of our strategic business units. Asset write-off and accelerated depreciation charges of $23 million in 2013 related to property and equipment in one of our manufacturing facilities in Amiens, France. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Interest Expense | Interest Expense Interest expense includes interest and amortization of debt discounts, less amounts capitalized, as follows: (In millions) 2015 2014 2013 Interest expense before capitalization $ 431 $ 452 $ 431 Capitalized interest (19 ) (24 ) (39 ) $ 412 $ 428 $ 392 Cash payments for interest, net of amounts capitalized were $445 million , $419 million and $353 million in 2015 , 2014 and 2013 , respectively. In 2014, interest expense was favorably impacted by $6 million related to interest recovered on the settlement of certain indirect tax claims in Latin America. |
Other (Income) Expense
Other (Income) Expense | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Other (Income) Expense (In millions) 2015 2014 2013 Royalty income $ (192 ) $ (35 ) $ (51 ) Financing fees and financial instruments 111 77 64 Net foreign currency exchange losses 77 239 118 Net gains on asset sales (71 ) (3 ) (8 ) General and product liability — discontinued products (gains) losses (25 ) 25 15 Interest income (22 ) (28 ) (41 ) Miscellaneous 7 27 — $ (115 ) $ 302 $ 97 Royalty income in 2015 was $192 million , compared to income of $35 million and $51 million in 2014 and 2013 , respectively. Royalty income in 2015 included a one-time pre-tax gain of $155 million on the recognition of deferred income resulting from the termination of a licensing agreement associated with the sale of our former Engineered Products business ("Veyance"). The licensing agreement was terminated following the acquisition of Veyance by Continental AG in January 2015. Royalty income in 2013 included a one-time royalty of $11 million related to our chemical operations. Royalty income is derived primarily from licensing arrangements related to divested businesses. Financing fees and financial instruments expense was $111 million in 2015 , compared to $77 million in 2014 and $64 million in 2013 . Financing fees and financial instruments expense consists of the amortization of deferred financing fees, commitment fees and charges incurred in connection with financing transactions. Financing fees in 2015 included a $41 million redemption premium and $14 million of expense for the write-off of deferred financing fees and unamortized discount related to the redemption of the $1.0 billion 8.25% senior notes due 2020. Net foreign currency exchange losses in 2015 were $77 million , compared to losses of $239 million and $118 million in 2014 and 2013 , respectively. Net foreign currency exchange losses in 2014 and 2013 included net charges of $200 million and $115 million , respectively, resulting from the devaluation of the Venezuelan bolivar fuerte against the U.S. dollar. Foreign currency exchange in all periods reflected net gains and losses resulting from the effect of exchange rate changes on various foreign currency transactions worldwide, including $34 million of losses in 2015 related to changes in the SICAD exchange rate in Venezuela. Prior to the deconsolidation of our Venezuelan subsidiary, we were required to remeasure our bolivar-denominated monetary assets and liabilities at the rate expected to be available for future dividend remittances by our Venezuelan subsidiary. Effective February 13, 2013, Venezuela's official exchange rate changed from 4.3 to 6.3 bolivares fuertes to the U.S. dollar for substantially all goods. In the first quarter of 2013, we recorded a $115 million remeasurement loss on bolivar-denominated net monetary assets and liabilities, including deferred taxes, primarily related to cash deposits in Venezuela. Effective January 24, 2014, Venezuela’s exchange rate applicable to the settlement of certain transactions, including payments of dividends and royalties, changed to an auction-based floating rate, the Complementary System of Foreign Currency Administration (“SICAD”) rate, which was 11.4 , 12.0 and 13.5 bolivares fuertes to the U.S. dollar at January 24, 2014, December 31, 2014 and December 31, 2015, respectively. We expected that future remittances of dividends by our Venezuelan subsidiary would be transacted at the SICAD rate and, therefore, in 2014 we recorded net foreign currency exchange losses of $200 million related to the remeasurement of our bolivar-denominated monetary assets and liabilities using the SICAD rate. Net gains on asset sales in 2015 were $71 million and included a gain of $48 million related to the dissolution of the global alliance with SRI and a gain of $30 million on the sale of our investment in shares of SRI. Refer to Note 5. Net gains on asset sales in 2015 also included losses of $14 million in EMEA, primarily related to the sales of certain sub-Saharan Africa retail businesses. General and product liability — discontinued products includes charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries. General and product liability — discontinued products for the year ended December 31, 2015 included a benefit of $25 million for the recovery of past costs from one of our asbestos insurers and a benefit of $21 million related to changes in assumptions for probable insurance recoveries for asbestos claims in future periods. The benefits were partially offset by an $8 million increase in the net asbestos liability based on updated assumptions for defense and indemnity costs in future periods based on historical cost data and trends. Interest income consists primarily of amounts earned on cash deposits. Interest income in 2014 also included $10 million earned on the settlement of indirect tax claims and in 2013 also included $11 million earned on favorable tax judgments, both in Latin America. Miscellaneous expense in 2015, 2014 and 2013 includes $4 million , $22 million and $ 6 million , respectively, of charges for labor claims relating to a previously closed facility in Greece. These claims have been settled and we do not expect any additional charges. Miscellaneous expense in 2014 also includes a charge of $16 million related to a government investigation involving our compliance with the U.S. Foreign Corrupt Practices Act in certain countries in Africa. |
Dissolution of Global Alliance
Dissolution of Global Alliance With Sumitomo Rubber Industries | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dissolution of Global Alliance with Sumitomo Rubber Industries | Dissolution of Global Alliance with Sumitomo Rubber Industries On October 1, 2015, the Company completed the previously announced dissolution of its global alliance with SRI in accordance with the terms and conditions set forth in the Framework Agreement, dated as of June 4, 2015, by and between the Company and SRI. Prior to the dissolution, the Company owned 75% and SRI owned 25% of two companies, Goodyear Dunlop Tires Europe B.V. (“GDTE”) and Goodyear Dunlop Tires North America, Ltd. (“GDTNA”). GDTE owns and operates substantially all of the Company’s tire businesses in Western Europe. GDTNA had rights to the Dunlop brand and operated certain related businesses in North America. In Japan, the Company owned 25% , and SRI owned 75% , of two companies, one, Nippon Goodyear Ltd. (“NGY”), for the sale of Goodyear-brand passenger and truck tires for replacement in Japan and the other, Dunlop Goodyear Tires Ltd. (“DGT”), for the sale of Goodyear-brand and Dunlop-brand tires to vehicle manufacturers in Japan. Pursuant to the Framework Agreement, the Company has sold to SRI its 75% interest in GDTNA, 25% interest in DGT and Huntsville, Alabama test track used by GDTNA. Accordingly, the Company no longer has any remaining ownership interests in GDTNA, DGT or the Huntsville, Alabama test track. With the sale of GDTNA, SRI obtained full ownership of the Dunlop motorcycle tire business in North America and the rights to sell Dunlop-brand tires to Japanese vehicle manufacturers in the United States, Canada and Mexico. The Company retained exclusive rights to sell Dunlop-brand tires in both the consumer and commercial replacement markets of the United States, Canada and Mexico as well as to non-Japanese vehicle manufacturers in those countries. The Company also has acquired from SRI its 75% interest in NGY and 25% interest in GDTE. Accordingly, the Company now has full ownership interests in NGY and GDTE. In addition, SRI obtained exclusive rights to sell Dunlop-brand tires in those countries that were previously non-exclusive under the global alliance, including Russia, Turkey and certain countries in Africa. We paid SRI a net amount of $271 million upon closing of the transactions described above. In addition, we delivered a promissory note to GDTNA in an initial principal amount of $56 million , with a maturity date three years following the date of dissolution, and at an interest rate of LIBOR plus 0.1% . The Framework Agreement also provides that we and SRI will conduct an orderly sale of the SRI common stock held by us and the Goodyear common stock held by SRI. As of December 31, 2015, the Company has sold all of its common stock in SRI resulting in total proceeds of $47 million and a pre-tax gain of $30 million recorded within Other (Income) Expense. In addition to the gain recognized on the sale of SRI common stock, the Company recognized a pre-tax gain of $48 million on the transactions described above, recorded in Other (Income) Expense. The net gain on the transaction, after taxes, was $38 million . The net gain on the transaction primarily resulted from the sale of GDTNA and DGT as well as the fair value of the rights acquired by SRI from the Company to sell Dunlop-brand tires in those countries that were previously non-exclusive under the global alliance, net of transaction costs. Included in the net gain on the transaction is a pre-tax loss of $28 million for the difference between the general and product liabilities retained by the Company resulting from GDTNA’s historical operations and the amount recorded for the indemnification of those liabilities provided by SRI to the Company under the Framework Agreement. Prior to October 1, 2015, GDTE’s assets and liabilities were included in our consolidated balance sheets and GDTE’s results of operations were included in our consolidated statements of operations, which also reflected SRI’s minority interest in GDTE. Subsequent to October 1, 2015, we continue to include GDTE in our consolidated balance sheets and consolidated statements of operations; however, there is no minority interest impact to our results of operations related to GDTE. Additionally, prior to October 1, 2015, we accounted for NGY under the equity method as we did not have a controlling financial interest in NGY. Subsequent to October 1, 2015, we have a controlling interest in NGY and, accordingly, NGY’s assets and liabilities are included in our consolidated balance sheet as of December 31, 2015, and NGY’s results of operations for the fourth quarter of 2015 are included in our consolidated statements of operations. The effects of the acquisition of NGY were not material to our consolidated balance sheet or results of operations as of and for the year ended December 31, 2015. The assets and liabilities of GDTNA, the Huntsville, Alabama test track, and our investment in DGT were classified as held for sale as of September 30, 2015 and are no longer included in our consolidated balance sheet as of December 31, 2015. The Company has classified the closing payment of $271 million as cash flows from financing activities as the acquisition of the minority shareholder’s equity in GDTE represents the predominant use of these proceeds. The Company and SRI entered into various supply agreements, licenses, transition services agreements, releases and other ancillary agreements in connection with the Framework Agreement to give effect to the dissolution and/or to set forth arrangements between the Company and SRI following the dissolution. The Company and SRI also each agreed to indemnify the other for certain losses arising out of breaches of representations and warranties, covenants and other specified matters, including product liability matters. The Company has recorded an indemnification asset within Accounts Receivable of $6 million and within Other Assets of $26 million for SRI’s obligation to reimburse the Company for certain general and product liability claims related to periods prior to the dissolution, subject to certain caps and restrictions. The range of possible outcomes for the indemnification receivable is not material to the Company’s financial statements. As a result of the sale of GDTNA and the acquisition of the minority interest in GDTE, we recognized a net decrease in AOCL of $77 million , comprised of a reduction of $184 million for GDTNA accumulated pension-related losses that were recognized in the net gain on sale for the transaction, partially offset by an increase of $107 million primarily for GDTE pension-related losses that were reclassified from minority shareholders’ equity into AOCL. We also recognized an increase in our capital surplus of $60 million related to our acquisition of the minority interest in GDTE. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of Income before Income Taxes follow: (In millions) 2015 2014 2013 U.S. $ 284 $ 400 $ 396 Foreign 324 287 417 $ 608 $ 687 $ 813 A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax (Benefit) Expense follows: (In millions) 2015 2014 2013 U.S. Federal income tax expense (benefit) at the statutory rate of 35% $ 213 $ 240 $ 284 Deconsolidation of Venezuelan subsidiary 157 — — U.S. credits (R&D, foreign tax credits) and benefits offset to OCI (72 ) — — Adjustment for foreign income taxed at different rates (39 ) (37 ) (2 ) Net foreign losses (income) with no tax benefit due to valuation allowances (19 ) 49 42 Net (resolution) establishment of uncertain tax positions (13 ) 3 10 State income taxes, net of U.S. Federal benefit 10 12 — Release of U.S. valuation allowance (8 ) (2,318 ) — Net establishment (release) of foreign valuation allowances 4 51 (8 ) Deferred tax impact of enacted tax rate and law changes (2 ) 33 (13 ) Provision for undistributed foreign earnings — 131 — U.S. (income) with no tax due to valuation allowance — — (136 ) Poland special enterprise zone tax credit — — (42 ) Other 1 2 3 United States and Foreign Tax (Benefit) Expense $ 232 $ (1,834 ) $ 138 The components of United States and Foreign Tax (Benefit) Expense by taxing jurisdiction, follow: (In millions) 2015 2014 2013 Current: Federal $ — $ — $ (6 ) Foreign 154 135 176 State (1 ) 1 2 153 136 172 Deferred: Federal 74 (2,103 ) 2 Foreign 5 84 (36 ) State — 49 — 79 (1,970 ) (34 ) United States and Foreign Tax (Benefit) Expense $ 232 $ (1,834 ) $ 138 In 2015, income tax expense included net discrete tax benefits of $18 million unrelated to current year income, due primarily to a $9 million benefit from the conclusion of non-U.S. tax claims and an $8 million benefit from the release of a valuation allowance related to certain state deferred tax assets. Our tax expense for 2015 also included a U.S. tax benefit of $69 million related to the pre-tax loss of $646 million on the deconsolidation of our Venezuelan subsidiary (Refer to Note 1), and a current year benefit of $10 million related to recently enacted U.S. legislation extending the research and development credit. At December 31, 2014, our U.S. operations were in a position of cumulative profits for the most recent three-year period. We concluded that as a consequence of our three-year cumulative profits, achieving full year profitability in 2013 and 2014, our successful completion of labor negotiations with the United Steelworkers in 2013, our full funding of our U.S. pension plans during 2013 and 2014, and our business plan for 2015 and beyond showing continued profitability, that it was more likely than not that a significant portion of our U.S. deferred tax assets would be realized. In 2014, income tax benefit of $1,834 million was favorably impacted by net discrete tax adjustments of $1,980 million , due primarily to a net tax benefit of $2,179 million from the December 31, 2014 release of substantially all of the valuation allowance on our net U.S. deferred tax assets and a charge of $131 million to establish a provision for potential U.S. Federal taxation of certain undistributed earnings of certain foreign subsidiaries. The 2014 income tax benefit also included charges of $37 million to establish valuation allowances on the net deferred tax assets of our Venezuelan and Brazilian subsidiaries, due to continuing operating losses and currency devaluations in Venezuela, a charge of $9 million to establish a valuation allowance on the net deferred tax assets of a Luxembourg subsidiary and a charge of $11 million due to an enacted law change in Chile. In 2013, income tax expense included net discrete tax benefits of $43 million unrelated to current year income, due primarily to a $33 million benefit from a Poland special enterprise zone tax credit and a $13 million benefit related to enacted law changes. Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2015 2014 Tax loss carryforwards and credits $ 1,415 $ 1,550 Capitalized research and development expenditures 655 622 Accrued expenses deductible as paid 501 583 Postretirement benefits and pensions 288 388 Investment and receivables related to Venezuelan deconsolidation 157 — Alternative minimum tax credit carryforwards (1) 78 85 Rationalizations and other provisions 22 49 Vacation and sick pay 37 36 Other 121 100 3,274 3,413 Valuation allowance (621 ) (632 ) Total deferred tax assets 2,653 2,781 Property basis differences (459 ) (448 ) Tax on undistributed earnings of subsidiaries (144 ) (170 ) Total net deferred tax assets $ 2,050 $ 2,163 (1) Unlimited carryforward period. At December 31, 2015 , we had $519 million of tax assets for net operating loss, capital loss and tax credit carryforwards related to certain foreign subsidiaries. These carryforwards are primarily from countries with unlimited carryforward periods, but include $15 million of special enterprise zone tax credits subject to expiration in 2017. A valuation allowance totaling $523 million has been recorded against these and other deferred tax assets where recovery of the asset or carryforward is uncertain. In addition, we had $795 million of Federal and $101 million of state tax assets for net operating loss and tax credit carryforwards. The Federal carryforwards consist of $38 million of Federal tax assets for net operating losses that expire from 2029 to 2034, $686 million of foreign tax credits that are subject to expiration from 2016 to 2025 and $71 million of tax assets related to research and development credits that are subject to expiration from 2027 to 2034. The amount of deferred tax assets reflected in the table above has been reduced by $57 million related to unrealized stock option deductions. The state carryforwards are subject to expiration from 2016 to 2034. A valuation allowance of $98 million has been recorded against Federal and state deferred tax assets where recovery is uncertain. 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 foreign deferred tax assets. However, it is reasonably possible that sufficient positive evidence required to release all, or a portion, of certain valuation allowances will exist during 2016. This may result in a reduction of the valuation allowance by up to $275 million . At December 31, 2015 , we had unrecognized tax benefits of $54 million that if recognized, would have a favorable impact on our tax expense of $40 million . We had accrued interest of $5 million as of December 31, 2015 . If not favorably settled, $9 million of the unrecognized tax benefits and all of the accrued interest would require the use of our cash. We do not expect changes during 2016 to our unrecognized tax benefits to have a significant impact on our financial position or results of operations. Reconciliation of Unrecognized Tax Benefits (In millions) 2015 2014 2013 Balance at January 1 $ 81 $ 88 $ 82 Increases related to prior year tax positions 10 15 27 Decreases related to prior year tax positions (10 ) (12 ) (6 ) Settlements (14 ) (6 ) (9 ) Foreign currency impact (15 ) (4 ) (6 ) Increases related to current year tax positions 2 — 1 Lapse of statute of limitations — — (1 ) Balance at December 31 $ 54 $ 81 $ 88 Generally, years from 2010 onward are still open to examination by foreign taxing authorities. We are open to examination in Germany from 2011 onward and in the United States for 2015. We have undistributed earnings of foreign subsidiaries of approximately $1.4 billion for which deferred taxes have not been provided, including a portion of which has already been subject to U.S. Federal income taxation. No provision for Federal income or foreign withholding tax on any of these undistributed earnings is required because such earnings have been or will be reinvested in property, plant and equipment and working capital. Quantification of the deferred tax liability net of applicable foreign tax credits, if any, associated with these undistributed earnings is not practicable. We have not recorded deferred tax assets for the excess of tax basis over book basis in our foreign subsidiaries as it is not expected to reverse in the foreseeable future. Net cash payments for income taxes were $113 million , $127 million and $186 million in 2015 , 2014 and 2013 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Basic and diluted earnings per common share are calculated as follows: (In millions, except per share amounts) 2015 2014 2013 Earnings per share — basic: Goodyear net income $ 307 $ 2,452 $ 629 Less: Preferred stock dividends — 7 29 Goodyear net income available to common shareholders $ 307 $ 2,445 $ 600 Weighted average shares outstanding 269 268 246 Earnings per common share — basic $ 1.14 $ 9.13 $ 2.44 Earnings per share — diluted: Goodyear net income $ 307 $ 2,452 $ 629 Less: Preferred stock dividends — — — Goodyear net income available to common shareholders $ 307 $ 2,452 $ 629 Weighted average shares outstanding 269 268 246 Dilutive effect of mandatory convertible preferred stock — 7 28 Dilutive effect of stock options and other dilutive securities 4 4 3 Weighted average shares outstanding — diluted 273 279 277 Earnings per common share — diluted $ 1.12 $ 8.78 $ 2.28 Weighted average shares outstanding — diluted for 2014 and 2013 excludes approximately 2 million and 3 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common stock (i.e., “underwater” options). On April 1, 2014, all outstanding shares of mandatory convertible preferred stock automatically converted into 27,573,735 shares of common stock, net of fractional shares, at a conversion rate of 2.7574 shares of common stock per share of preferred stock. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Segment information reflects our strategic business units (“SBUs”), which are organized to meet customer requirements and global competition. Through December 31, 2015, we operated our business through four operating segments representing our regional tire businesses: North America; Europe, Middle East and Africa; Asia Pacific; and Latin America. Segment information is reported on the basis used for reporting to our Chief Executive Officer. Each of the four regional business segments is involved in the development, manufacture, distribution and sale of tires. Certain of the business segments also provide related products and services, which include retreads, automotive and commercial truck repair services and merchandise purchased for resale. Each segment also exports tires to other segments. North America manufactures and sells tires for automobiles, trucks, buses, earthmoving and mining equipment, commercial and military aviation, and industrial equipment in the United States and Canada. North America also provides related products and services including retread tires, tread rubber, automotive and commercial truck maintenance and repair services, as well as sells chemical and natural rubber products to our other business segments and to unaffiliated customers. Europe, Middle East and Africa manufactures and sells tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving and mining equipment and industrial equipment throughout Europe, the Middle East and Africa. EMEA also sells retreaded aviation tires, retreading and related services for commercial truck and construction and mining equipment, and automotive maintenance and repair services. Asia Pacific manufactures and sells tires for automobiles, trucks, aircraft, and farm, earthmoving and mining equipment throughout the Asia Pacific region. Asia Pacific also provides related products and services including retreaded truck and aviation tires, tread rubber, and automotive maintenance and repair services. Latin America manufactures and sells tires for automobiles, trucks, and earthmoving and mining equipment throughout Central and South America and in Mexico. Latin America also provides related products and services including retreaded tires and tread rubber for trucks. Latin America's 2015 segment sales and operating income include the results of our Venezuelan subsidiary, which was deconsolidated on December 31, 2015. Refer to Note 1. The deconsolidation of our Venezuelan subsidiary did not have an impact on segment sales or operating income for any of the periods presented. Effective January 1, 2016, we combined our North America and Latin America strategic business units into one Americas strategic business unit. We have combined the North America and Latin America reportable segments effective on this date to align with the new organizational structure and the basis used for reporting to our Chief Executive Officer beginning in 2016. Our first quarter 2016 Form 10-Q will reflect the new segment structure with prior periods recast for comparable disclosure. The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income before Income Taxes: (In millions) 2015 2014 2013 Sales North America $ 7,774 $ 8,085 $ 8,684 Europe, Middle East and Africa 5,115 6,180 6,567 Asia Pacific 1,958 2,077 2,226 Latin America 1,596 1,796 2,063 Net Sales $ 16,443 $ 18,138 $ 19,540 Segment Operating Income North America $ 1,108 $ 803 $ 691 Europe, Middle East and Africa 435 438 298 Asia Pacific 319 301 308 Latin America 160 170 283 Total Segment Operating Income 2,022 1,712 1,580 Less: Rationalizations 114 95 58 Interest expense 412 428 392 Other (income) expense (1) (115 ) 302 97 Asset write-offs and accelerated depreciation 8 7 23 Corporate incentive compensation plans 103 97 108 Corporate pension curtailments/settlements (2) 137 33 — Intercompany profit elimination 3 (4 ) (4 ) Loss on deconsolidation of Venezuelan subsidiary 646 — — — — Retained expenses of divested operations 14 16 24 Other (3) 92 51 69 Income before Income Taxes $ 608 $ 687 $ 813 (1) Refer to Note 4. (2) Substantially all of the pension settlement charges of $137 million for the year ended December 31, 2015 and pension curtailment charges of $33 million for the year ended December 31, 2014 noted above related to our North America SBU; however, such costs were not included in North America segment operating income for purposes of management's assessment of SBU operating performance. (3) Primarily represents unallocated corporate costs including, in 2015, certain costs for one-time strategic global initiatives. Also includes the elimination of $25 million , $24 million and $39 million for the years ended December 31, 2015, 2014 and 2013, respectively, of royalty income attributable to the strategic business units. The following table presents segment assets at December 31: (In millions) 2015 2014 2013 Assets North America $ 4,808 $ 4,929 $ 4,977 Europe, Middle East and Africa 4,383 4,957 5,532 Asia Pacific 2,559 2,594 2,613 Latin America (1) 1,469 2,090 2,384 Total Segment Assets 13,219 14,570 15,506 Corporate (2) 3,220 3,474 1,931 $ 16,439 $ 18,044 $ 17,437 (1) Decrease in Latin America segment assets at December 31, 2015 was due primarily to the deconsolidation of our Venezuelan subsidiary on December 31, 2015. Refer to Note 1. (2) Corporate includes substantially all of our U.S. net deferred tax assets. Corporate assets increased in 2014 by $2,080 million due primarily to the release of substantially all of the valuation allowance on our net U.S. deferred tax assets. Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net sales less CGS (excluding asset write-offs and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates. Segment operating income does not include net rationalization charges, asset sales and certain other items. The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets only China and Germany were considered to be significant. (In millions) 2015 2014 2013 Net Sales United States $ 7,338 $ 7,558 $ 7,820 Germany 1,905 2,288 2,372 Other international 7,200 8,292 9,348 $ 16,443 $ 18,138 $ 19,540 Long-Lived Assets United States $ 2,468 $ 2,464 $ 2,389 China 766 809 821 Germany 778 833 891 Other international 2,765 3,047 3,219 $ 6,777 $ 7,153 $ 7,320 At December 31, 2015 , significant concentrations of cash and cash equivalents held by our international subsidiaries included the following amounts: • $513 million or 35% in Europe, Middle East and Africa, primarily Belgium ( $517 million or 24% at December 31, 2014), • $415 million or 28% in Asia, primarily China, India and Australia ( $462 million or 21% at December 31, 2014), and • $114 million or 8% in Latin America, primarily Brazil ( $409 million or 19% at December 31, 2014, which primarily related to Venezuela and Brazil). Rationalizations, as described in Note 2, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 4, Other (Income) Expense, and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2015 2014 2013 Rationalizations North America $ 9 $ (6 ) $ 12 Europe, Middle East and Africa 95 89 26 Asia Pacific 4 9 16 Latin America 6 3 4 Total Segment Rationalizations $ 114 $ 95 $ 58 (In millions) 2015 2014 2013 Net (Gains) Losses on Asset Sales North America $ (1 ) $ (8 ) $ (4 ) Europe, Middle East and Africa 14 7 (1 ) Asia Pacific (5 ) — (2 ) Latin America (1 ) — (1 ) Total Segment Asset Sales 7 (1 ) (8 ) Corporate (1) (78 ) (2 ) — $ (71 ) $ (3 ) $ (8 ) (1) Corporate gain on asset sales in 2015 included a $48 million gain on the dissolution of our global alliance with SRI and a $30 million gain on the sale of our investment in shares of SRI. Refer to Note 5. (In millions) 2015 2014 2013 Asset Write-offs and Accelerated Depreciation Europe, Middle East and Africa $ 8 $ 7 $ 23 Total Segment Asset Write-offs and Accelerated Depreciation $ 8 $ 7 $ 23 The following tables present segment capital expenditures, depreciation and amortization: (In millions) 2015 2014 2013 Capital Expenditures North America $ 353 $ 282 $ 262 Europe, Middle East and Africa 223 266 332 Asia Pacific 124 154 257 Latin America 125 152 243 Total Segment Capital Expenditures 825 854 1,094 Corporate (1) 158 69 74 $ 983 $ 923 $ 1,168 (1) Corporate capital expenditures in 2015 include approximately $140 million related to the construction of our new manufacturing facility in San Luis Potosi, Mexico. (In millions) 2015 2014 2013 Depreciation and Amortization North America $ 270 $ 274 $ 275 Europe, Middle East and Africa 186 220 228 Asia Pacific 114 105 93 Latin America 94 102 84 Total Segment Depreciation and Amortization 664 701 680 Corporate 34 31 42 $ 698 $ 732 $ 722 The following table presents segment equity in the net income of investees accounted for by the equity method: (In millions) 2015 2014 2013 Equity in (Income) North America $ (3 ) $ (5 ) $ (8 ) Europe, Middle East and Africa (1 ) — — Asia Pacific (1) (12 ) (23 ) (23 ) Total Segment Equity in (Income) $ (16 ) $ (28 ) $ (31 ) (1) Substantially all of the Asia Pacific segment equity in income related to 25% interests in NGY and DGT which ceased to be recognized effective October 1, 2015 following the dissolution of the global alliance with SRI. Refer to Note 5. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable (In millions) 2015 2014 Accounts receivable $ 2,138 $ 2,215 Allowance for doubtful accounts (105 ) (89 ) $ 2,033 $ 2,126 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) 2015 2014 Raw materials $ 419 $ 535 Work in process 138 149 Finished goods 1,907 1,987 $ 2,464 $ 2,671 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2015 : (In millions) Balance at December 31, 2014 Acquisitions Divestitures Translation Balance at December 31, 2015 North America $ 93 $ — $ (2 ) $ — $ 91 Europe, Middle East and Africa 448 — (2 ) (45 ) 401 Asia Pacific 60 6 — (3 ) 63 $ 601 $ 6 $ (4 ) $ (48 ) $ 555 The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2014 : (In millions) Balance at December 31, 2013 Acquisitions Divestitures Translation Balance at December 31, 2014 North America $ 93 $ — $ — $ — $ 93 Europe, Middle East and Africa 511 — — (63 ) 448 Asia Pacific 64 — — (4 ) 60 $ 668 $ — $ — $ (67 ) $ 601 The following table presents information about intangible assets: 2015 2014 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 128 $ (6 ) $ 122 $ 127 $ (6 ) $ 121 Trademarks and patents 12 (8 ) 4 15 (10 ) 5 Other intangible assets 21 (9 ) 12 21 (9 ) 12 $ 161 $ (23 ) $ 138 $ 163 $ (25 ) $ 138 (1) Includes impact of foreign currency translation. Intangible assets primarily comprise the rights to use the Dunlop brand name and related trademarks and certain other brand names and trademarks. Amortization expense for intangible assets totaled $1 million , $2 million and $3 million in 2015 , 2014 and 2013 , respectively. We estimate that annual amortization expense related to intangible assets will be approximately $1 million in 2016 through 2020, and the weighted average remaining amortization period is approximately 29 years . Our annual impairment analyses for 2015 , 2014 and 2013 indicated no impairment of goodwill or intangible assets with indefinite lives. In addition, there were no events or circumstances that indicated the impairment tests should be re-performed for goodwill or for intangible assets with indefinite lives for any segment at December 31, 2015 . |
Other Assets and Investments
Other Assets and Investments | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Investments | Other Assets and Investments We owned 3,421,306 shares of SRI at December 31, 2014 (the “Sumitomo Investment”). The fair value of the Sumitomo Investment was $51 million at December 31, 2014 and was included in Other Assets as we had classified the Sumitomo Investment as available-for-sale. At December 31, 2014 , AOCL included gross unrealized holding gains on the Sumitomo Investment of $35 million ( $36 million after-tax). During the fourth quarter of 2015, we sold 100% of the Sumitomo Investment resulting in a gain of $30 million included in Other (Income) Expense. Refer to Note 5. Dividends received from our consolidated subsidiaries were $46 million , $273 million and $88 million in 2015 , 2014 and 2013 , respectively. Dividends received from our affiliates accounted for using the equity method were $24 million , $24 million and $21 million in 2015 , 2014 and 2013 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment 2015 2014 (In millions) Owned Capital Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 387 $ — $ 387 $ 413 $ — $ 413 Buildings 2,230 32 2,262 2,375 36 2,411 Machinery and equipment 11,719 68 11,787 12,322 70 12,392 Construction in progress 783 — 783 733 — 733 15,119 100 15,219 15,843 106 15,949 Accumulated depreciation (8,605 ) (32 ) (8,637 ) (9,002 ) (27 ) (9,029 ) 6,514 68 6,582 6,841 79 6,920 Spare parts 195 — 195 233 — 233 $ 6,709 $ 68 $ 6,777 $ 7,074 $ 79 $ 7,153 The range of useful lives of property used in arriving at the annual amount of depreciation are as follows: buildings and improvements, 3 to 45 years; machinery and equipment, 3 to 40 years. |
Leased Assets
Leased Assets | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leased Assets | Leased Assets Net rental expense comprised the following: (In millions) 2015 2014 2013 Gross rental expense $ 324 $ 387 $ 400 Sublease rental income (33 ) (40 ) (43 ) $ 291 $ 347 $ 357 We enter into leases primarily for our wholesale distribution facilities, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Many of the leases require us to pay taxes assessed against leased property and the cost of insurance and maintenance. A portion of our retail distribution network is sublet to independent dealers. While substantially all subleases and some operating leases are cancelable for periods beyond 2016 , management expects that in the normal course of its business nearly all of its independent dealer distribution network will be actively operated. As leases and subleases for existing locations expire, we would normally expect to evaluate such leases and either renew the leases or substitute another more favorable retail location. The following table presents minimum future lease payments: 2021 and (In millions) 2016 2017 2018 2019 2020 Beyond Total Capital Leases Minimum lease payments $ 12 $ 11 $ 8 $ 5 $ 3 $ 41 $ 80 Imputed interest (4 ) (3 ) (3 ) (3 ) (2 ) (17 ) (32 ) Present value $ 8 $ 8 $ 5 $ 2 $ 1 $ 24 $ 48 Operating Leases Minimum lease payments $ 279 $ 215 $ 158 $ 118 $ 94 $ 299 $ 1,163 Minimum sublease rentals (26 ) (17 ) (10 ) (6 ) (3 ) (7 ) (69 ) $ 253 $ 198 $ 148 $ 112 $ 91 $ 292 $ 1,094 Imputed interest (208 ) Present value $ 886 |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Financing Arrangements and Derivative Financial Instruments | Financing Arrangements and Derivative Financial Instruments At December 31, 2015 , we had total credit arrangements of $8,699 million , of which $2,676 million were unused. At that date, 31% of our debt was at variable interest rates averaging 6.55% . Notes Payable and Overdrafts, Long Term Debt and Capital Leases due Within One Year and Short Term Financing Arrangements At December 31, 2015 , we had short term committed and uncommitted credit arrangements totaling $467 million , of which $418 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: December 31, December 31, (In millions) 2015 2014 Notes payable and overdrafts: $ 49 $ 30 Weighted average interest rate 9.42 % 10.63 % Long term debt and capital leases due within one year: Other domestic and foreign debt (including capital leases) (1) $ 587 $ 148 Weighted average interest rate 6.68 % 7.75 % Total obligations due within one year $ 636 $ 178 (1) The increase in long term debt and capital leases due within one year was due primarily to the €250 million 6.75% senior notes due 2019 being classified as current at December 31, 2015 in connection with the irrevocable call for their redemption in January 2016. Long Term Debt and Capital Leases and Financing Arrangements At December 31, 2015 , we had long term credit arrangements totaling $8,232 million , of which $2,258 million were unused. The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: December 31, 2015 December 31, 2014 Interest Interest (In millions) Amount Rate Amount Rate Notes: 6.75% Euro Notes due 2019 $ 272 $ 303 8.25% due 2020 — 996 8.75% due 2020 271 269 6.5% due 2021 900 900 7% due 2022 700 700 5.125% due 2023 1,000 — 3.75% Euro Notes due 2023 272 — 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2017 — — — — $1.2 billion second lien term loan facility due 2019 598 3.75 % 1,196 4.75 % €550 million revolving credit facility due 2020 — — — — Pan-European accounts receivable facility 125 1.35 % 343 1.54 % Chinese credit facilities 465 5.22 % 535 5.65 % Other foreign and domestic debt (1) 906 9.42 % 913 8.70 % 5,659 6,305 Capital lease obligations 48 59 5,707 6,364 Less portion due within one year (587 ) (148 ) $ 5,120 $ 6,216 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and North America Headquarters. NOTES €250 million 6.75% Senior Notes due 2019 of Goodyear Dunlop Tires Europe B.V. (“GDTE”) At December 31, 2015 , €250 million aggregate principal amount of GDTE's 6.75% senior notes due 2019 were outstanding. On January 14, 2016, we redeemed all of the outstanding notes at a redemption price of 103.375% of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date. $1.0 billion 8.25% Senior Notes due 2020 On December 7, 2015, we redeemed all of our outstanding $1.0 billion aggregate principal amount of 8.25% senior notes due 2020 including a $41 million redemption premium plus accrued and unpaid interest to the redemption date. We also recorded $14 million of expense for the write-off of deferred financing fees and unamortized discount as a result of the redemption. $282 million 8.75% Senior Notes due 2020 At December 31, 2015 , $282 million aggregate principal amount of 8.75% notes due 2020 were outstanding. These notes had an effective yield of 9.20% at issuance. These notes are unsecured senior obligations, are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below, and will mature on August 15, 2020 . We have the option to redeem these notes, in whole or in part, at any time at a redemption price equal to the greater of 100% of the principal amount of these notes or the sum of the present values of the remaining scheduled payments on these notes, discounted using a defined treasury rate plus 50 basis points, plus in either case accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $900 million 6.5% Senior Notes due 2021 At December 31, 2015 , $900 million aggregate principal amount of 6.5% senior notes due 2021 were outstanding. These notes were sold at 100% of the principal amount and will mature on March 1, 2021 . These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after March 1, 2016 at a redemption price of 104.875% , 103.25% , 101.625% and 100% during the 12-month periods commencing on March 1, 2016, 2017, 2018 and 2019 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to March 1, 2016, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to March 1, 2016, we may redeem up to 35% of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 106.5% of the principal amount plus accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit the ability of the Company and certain of its subsidiaries, including GDTE, to (i) incur additional debt or issue redeemable preferred stock, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. For example, if these notes are assigned an investment grade rating by Moody’s and Standard & Poor's and no default has occurred and is continuing, certain covenants will be suspended and we may elect to suspend the subsidiary guarantees. The indenture has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. $700 million 7% Senior Notes due 2022 At December 31, 2015 , $700 million aggregate principal amount of 7% senior notes due 2022 were outstanding. These notes were sold at 100% of the principal amount and will mature on May 15, 2022 . These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after May 15, 2017 at a redemption price of 103.5% , 102.333% , 101.167% and 100% during the 12-month periods commencing on May 15, 2017 , 2018 , 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to May 15, 2017, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 6.5% senior notes due 2021, described above. $1.0 billion 5.125% Senior Notes due 2023 At December 31, 2015, $1.0 billion aggregate principal amount of 5.125% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on November 15, 2023. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after November 15, 2018 at a redemption price of 102.563% , 101.281% and 100% during the 12-month periods commencing on November 15, 2018, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to November 15, 2018, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to November 15, 2018, we may redeem up to 35% of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 105.125% of the principal amount plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 6.5% senior notes due 2021, described above. €250 million 3.75% Senior Notes due 2023 of GDTE At December 31, 2015, € 250 million aggregate principal amount of GDTE’s 3.75% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on December 15, 2023. These notes are unsecured senior obligations of GDTE and are guaranteed, on an unsecured senior basis, by the Company and our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after December 15, 2018 at a redemption price of 101.875% , 100.938% and 100% during the 12-month periods commencing on December 15, 2018, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to December 15, 2018, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to December 15, 2018, we may redeem up to 35% of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 103.75% of the principal amount plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 6.5% senior notes due 2021, described above. $150 million 7% Senior Notes due 2028 At December 31, 2015 , $150 million aggregate principal amount of our 7% notes due 2028 were outstanding. These notes are unsecured senior obligations and will mature on March 15, 2028 . We have the option to redeem these notes, in whole or in part, at any time at a redemption price equal to the greater of 100% of the principal amount thereof or the sum of the present values of the remaining scheduled payments thereon, discounted using a defined treasury rate plus 15 basis points, plus in either case accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. CREDIT FACILITIES $2.0 billion Amended and Restated First Lien Revolving Credit Facility due 2017 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 . Amounts drawn under this facility bear interest at LIBOR plus 150 basis points , based on our current liquidity as described below. 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 collateral that includes, subject to certain exceptions: • U.S. and Canadian accounts receivable and inventory; • certain of our U.S. manufacturing facilities; • equity interests in our U.S. subsidiaries and up to 65% of the equity interests in our directly owned foreign subsidiaries, excluding GDTE and its subsidiaries; and • substantially all other tangible and intangible assets, including equipment, contract rights and intellectual property. Availability under the facility is subject to a borrowing base, which is based on eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, after adjusting for customary factors that are subject to modification from time to time by the administrative agent or the majority lenders at their discretion (not to be exercised unreasonably). Modifications are based on the results of periodic collateral and borrowing base evaluations and appraisals. To the extent that our eligible accounts receivable and inventory decline, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. In addition, if the amount of outstanding borrowings and letters of credit under the facility exceeds the borrowing base, we are required to prepay borrowings and/or cash collateralize letters of credit sufficient to eliminate the excess. As of December 31, 2015 , our borrowing base, and therefore our availability, under this facility was $536 million below the facility's stated amount of $2.0 billion . The facility, which matures on April 30, 2017 , contains certain covenants that, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur additional debt or issue redeemable preferred stock, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. In addition, in the event that the availability under the facility plus the aggregate amount of our Available Cash is less than $200 million , we will not be permitted to allow our ratio of EBITDA to Consolidated Interest Expense to be less than 2.0 to 1.0 for any period of four consecutive fiscal quarters. “Available Cash,” “EBITDA” and “Consolidated Interest Expense” have the meanings given them in 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, 2011. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. If Available Cash (as defined in the facility) plus the availability under the facility is greater than $1.0 billion , amounts drawn under the facility will bear interest, at our option, at (i) 150 basis points over LIBOR or (ii) 50 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points or LIBOR plus 100 basis points), and undrawn amounts under the facility will be subject to an annual commitment fee of 37.5 basis points. If Available Cash plus the availability under the facility is equal to or less than $1.0 billion , then amounts drawn under the facility will bear interest, at our option, at (i) 175 basis points over LIBOR or (ii) 75 basis points over an alternative base rate, and undrawn amounts under the facility will be subject to an annual commitment fee of 25 basis points. At December 31, 2015 , we had no borrowings and $315 million of letters of credit issued under the revolving credit facility. At December 31, 2014 , we had no borrowings and $377 million of letters of credit issued under the revolving credit facility. $1.2 billion Amended and Restated Second Lien Term Loan Facility due 2019 In June 2015, we amended our second lien term loan facility. As a result of the amendment, the term loan now bears interest, at our option, at (i) 300 basis points over LIBOR (subject to a minimum LIBOR rate of 75 basis points) or (ii) 200 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points or LIBOR plus 100 basis points). After June 16, 2015 and prior to June 16, 2016 , (i) loans under the facility may not be prepaid or repaid with the proceeds of term loan indebtedness, or converted into or replaced by new term loans, bearing interest at an effective interest rate that is less than the effective interest rate then applicable to such loans and (ii) no amendment of the facility may be made that, directly or indirectly, reduces the effective interest rate applicable to the loans under the facility, in each case unless we pay a fee equal to 1.0% of the principal amount of the loans so affected. 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. This facility may be increased by up to $300 million at our request, subject to the consent of the lenders making such additional term loans. At December 31, 2015 and 2014, the amounts outstanding under this facility were $598 million and $1,196 million , respectively. On February 3, 2015, we repaid $200 million and on December 30, 2015 we repaid $400 million of the borrowings under this facility. Repayments are not able to be redrawn. €550 million Amended and Restated Senior Secured European Revolving Credit Facility due 2020 In May 2015, we amended and restated our existing €400 million European revolving credit facility. Significant changes to the facility included extending the maturity to May 12, 2020 , increasing the available commitments thereunder from €400 million to €550 million and decreasing the annual commitment fee by 20 basis points to 30 basis points. Loans will bear interest at LIBOR plus 175 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 175 basis points for loans denominated in euros. Our amended and restated €550 million European revolving credit facility consists of (i) a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH ("GDTG") and (ii) a €425 million all-borrower tranche that is available to GDTE, GDTG and Goodyear Dunlop Tires Operations S.A. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche. GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. GDTE’s obligations under the facility and the obligations of its subsidiaries under the related guarantees are secured by security interests in collateral that includes, subject to certain exceptions: • the capital stock of the principal subsidiaries of GDTE; and • a substantial portion of the tangible and intangible assets of GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany, including real property, equipment, inventory, contract rights, intercompany receivables and cash accounts, but excluding accounts receivable and certain cash accounts in subsidiaries that are or may become parties to securitization or factoring transactions. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GDTE 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. subsidiaries and primary Canadian subsidiary that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility contains covenants similar to those in our first lien revolving credit facility, with additional limitations applicable to GDTE and its subsidiaries. In addition, under the facility, GDTE’s ratio of Consolidated Net J.V. Indebtedness to Consolidated European J.V. EBITDA for a period of four consecutive fiscal quarters is not permitted to be greater than 3.0 to 1.0 at the end of any fiscal quarter. “Consolidated Net J.V. Indebtedness” and “Consolidated European J.V. EBITDA” have the meanings given them in 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, 2014. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At December 31, 2015 and December 31, 2014 , we had no borrowings and no letters of credit issued under the European revolving credit facility. Accounts Receivable Securitization Facilities (On-Balance Sheet) GDTE and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2019. 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 €45 million and not more than €450 million . For the period beginning October 16, 2014 to October 15, 2015, the designated maximum amount of the facility was €380 million . For the period beginning October 16, 2015 to October 15, 2016, the designated maximum amount of the facility is €340 million . The facility involves an ongoing daily sale of substantially all of the trade accounts receivable of certain GDTE subsidiaries to a bankruptcy-remote French company controlled by one of the liquidity banks in the facility. 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 25, 2019 , (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, 2016 . At December 31, 2015 , the amounts available and utilized under this program totaled $276 million ( €254 million ) and $125 million ( €115 million ), respectively. At December 31, 2014 , the amounts available and utilized under this program totaled $343 million ( €283 million ). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases. In addition to the pan-European accounts receivable securitization facility discussed above, subsidiaries in Australia have an accounts receivable securitization program that provides up to $62 million ( 85 million Australian dollars) of funding. The terms of the facility provide the flexibility to designate semi-annually the maximum amount of funding available under the facility in an amount of not less than 60 million Australian dollars and not more than 85 million Australian dollars. At December 31, 2015 , the amounts available and utilized under this program were $34 million and $19 million , respectively. At December 31, 2014 , the amounts available and utilized under this program were $43 million and $23 million , respectively. The receivables sold under this program also serve as collateral for the related facility. We retain the risk of loss related to these receivables in the event of non-payment. These amounts are included in Long Term Debt and Capital Leases. Accounts Receivable Factoring Facilities (Off-Balance Sheet) Various subsidiaries sold certain of their trade receivables under off-balance sheet programs during 2015 and 2014 . For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At December 31, 2015 and 2014 , the gross amount of receivables sold was $299 million and $365 million , respectively. Other Foreign Credit Facilities A Chinese subsidiary has several financing arrangements in China. At December 31, 2015 , these non-revolving credit facilities had total unused availability of $66 million and can only be used to finance the expansion of our manufacturing facility in China. At December 31, 2015 and 2014, the amounts outstanding under these facilities were $465 million and $535 million , respectively. The facilities ultimately mature in 2023 and principal amortization began in 2015. 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. At December 31, 2015 and 2014 , restricted cash related to funds obtained under these credit facilities was $11 million and $4 million , respectively. Other Domestic Debt In 2011, we entered into agreements for the construction of our Global and North America Headquarters facility in Akron, Ohio. We concurrently entered into an agreement to occupy the facility under a 27 -year lease, including the two -year construction period, with multiple renewal options available at our discretion. Additionally, we entered into similar agreements for the construction and lease of a new parking deck adjacent to the Headquarters facility. Due to our continuing involvement with the financing during construction of the Headquarters facility and the parking deck, we recorded a non-cash increase to fixed assets and financing liabilities on our Consolidated Balance Sheets as costs were incurred during the construction period. The total financing liability of approximately $151 million , including capitalized interest, has been recorded in Long Term Debt and Capital Leases at December 31, 2015 . Debt Maturities The annual aggregate maturities of our debt and capital leases for the five years subsequent to December 31, 2015 are presented below. Maturities of debt credit agreements have been reported on the basis that the commitments to lend under these agreements will be terminated effective at the end of their current terms. (In millions) 2016 2017 2018 2019 2020 U.S. $ 6 $ 5 $ 59 $ 599 $ 271 Foreign 630 425 225 270 54 $ 636 $ 430 $ 284 $ 869 $ 325 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 fair values for foreign currency contracts not designated as hedging instruments: December 31, December 31, (In millions) 2015 2014 Fair Values — asset (liability): Accounts receivable $ 10 $ 20 Other current liabilities (10 ) (4 ) At December 31, 2015 and 2014 , these outstanding foreign currency derivatives had notional amounts of $1,094 million and $878 million , respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains of $79 million and $54 million in 2015 and 2014 , respectively, on foreign currency derivatives. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures. The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: December 31, December 31, (In millions) 2015 2014 Fair Values — asset (liability): Accounts receivable $ 5 $ 10 Other current liabilities (1 ) — At December 31, 2015 and 2014 , these outstanding foreign currency derivatives had notional amounts of $168 million and $157 million , respectively, and primarily related to U.S. dollar denominated intercompany transactions. We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets. The following table presents the classification of changes in fair values of foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) (Income) Expense 2015 2014 Amounts deferred to AOCL $ (20 ) $ (17 ) Amount of deferred loss (gain) reclassified from AOCL into CGS (28 ) — Amounts excluded from effectiveness testing 1 1 The estimated net amount of the deferred gains at December 31, 2015 that is expected to be reclassified to earnings within the next twelve months is $6 million . The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that are 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 | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheet at December 31, 2015 and December 31, 2014 : 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) 2015 2014 2015 2014 2015 2014 2015 2014 Assets: Investments $ 7 $ 56 $ 7 $ 56 $ — $ — $ — $ — Foreign Exchange Contracts 15 30 — — 15 30 — — Total Assets at Fair Value $ 22 $ 86 $ 7 $ 56 $ 15 $ 30 $ — $ — Liabilities: Foreign Exchange Contracts $ 11 $ 4 $ — $ — $ 11 $ 4 $ — $ — Total Liabilities at Fair Value $ 11 $ 4 $ — $ — $ 11 $ 4 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at December 31, 2015 and December 31, 2014. Long term debt with a fair value of $4,337 million and $4,603 million at December 31, 2015 and December 31, 2014, respectively, was estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions . December 31, December 31, (In millions) 2015 2014 Fixed Rate Debt: Carrying amount — liability $ 3,890 $ 3,680 Fair value — liability 4,065 3,773 Variable Rate Debt: Carrying amount — liability $ 1,769 $ 2,625 Fair value — liability 1,767 2,622 In the third quarter of 2015, we corrected the presentation of both the carrying amount and fair value of certain variable rate debt that had previously been disclosed as fixed rate debt, resulting in a revision of $452 million between fixed rate debt and variable rate debt at December 31, 2014. This revision did not impact the Consolidated Balance Sheet. We do not consider the change in presentation to be material to any previously issued financial statements. |
Pension, Other Postretirement B
Pension, Other Postretirement Benefits and Savings Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension, Other Postretirement Benefits and Savings Plans | Pension, Other Postretirement Benefits and Savings Plans We provide employees with defined benefit pension or defined contribution savings plans. Our hourly U.S. pension plans are frozen and provide benefits based on length of service. The principal salaried U.S. pension plans are frozen and provide benefits based on final five-year average earnings formulas. Salaried employees who made voluntary contributions to these plans receive higher benefits. 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. Substantial portions of the health care benefits for U.S. salaried retirees are not insured and are funded from operations. During 2015, we offered lump sum payments over a limited time to certain former employees in our U.S. pension plans. Payments of $190 million related to this offer were made from existing plan assets in the fourth quarter of 2015. As a result, total lump sum payments from these plans exceeded annual service and interest cost in 2015, and we recognized a pre-tax corporate pension settlement charge of $137 million in the fourth quarter of 2015. During the first quarter of 2014, we made contributions of $1,167 million , including discretionary contributions of $907 million , to fully fund our hourly U.S. pension plans. As a result, and in accordance with our master collective bargaining agreement with the United Steelworkers, the hourly U.S. pension plans were frozen to future accruals effective April 30, 2014. As a result of the accrual freezes to pension plans related to our North America SBU, we recognized curtailment charges of $33 million in the first quarter of 2014. In the first quarter of 2014, we ceased production at one of our manufacturing facilities in Amiens, France and recorded curtailment gains of $22 million during 2014, which is included in rationalization charges, related to the termination of employees at that facility who were participants in France's retirement indemnity plan. During the first quarter of 2013, we made contributions of $868 million , including discretionary contributions of $834 million , to fully fund our salaried U.S. pension plans. Total benefits cost and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Benefits cost: Service cost $ 4 $ 15 $ 45 $ 43 $ 34 $ 39 $ 3 $ 4 $ 6 Interest cost 238 256 243 113 131 131 15 19 19 Expected return on plan assets (295 ) (311 ) (335 ) (107 ) (118 ) (111 ) — (1 ) (1 ) Amortization of prior service cost (credit) — 1 17 1 1 1 (45 ) (45 ) (45 ) Amortization of net losses 106 114 205 32 35 50 7 8 12 Net periodic cost 53 75 175 82 83 110 (20 ) (15 ) (9 ) Curtailments/settlements 137 32 — 2 (13 ) 4 — — — Total benefits cost $ 190 $ 107 $ 175 $ 84 $ 70 $ 114 $ (20 ) $ (15 ) $ (9 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service (credit) cost from plan amendments $ — $ (1 ) $ (30 ) $ — $ 1 $ (1 ) $ — $ — $ — Increase (decrease) in net actuarial losses 150 292 (374 ) (45 ) (78 ) (128 ) (19 ) 3 (51 ) Amortization of prior service (cost) credit in net periodic cost — (1 ) (17 ) (1 ) (1 ) (1 ) 45 45 47 Amortization of net losses in net periodic cost (106 ) (114 ) (205 ) (34 ) (36 ) (53 ) (7 ) (8 ) (13 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures (386 ) (32 ) — (5 ) (16 ) (3 ) 4 — — Deconsolidation of Venezuelan subsidiary (Note 1) — — — (62 ) — — — — — Total recognized in other comprehensive loss (income) before tax and minority (342 ) 144 (626 ) (147 ) (130 ) (186 ) 23 40 (17 ) Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority $ (152 ) $ 251 $ (451 ) $ (63 ) $ (60 ) $ (72 ) $ 3 $ 25 $ (26 ) We use the fair value of pension assets in the calculation of pension expense for all plans. Total benefits (credit) cost for our other postretirement benefits was $(28) million , $(24) million and $(24) million for our U.S. plans in 2015 , 2014 and 2013 , respectively, and $8 million , $9 million and $15 million for our non-U.S. plans in 2015 , 2014 and 2013 , respectively. The estimated net actuarial loss for the defined benefit pension plans that will be amortized from AOCL into benefits cost in 2016 is $108 million for our U.S. plans and $27 million for our non-U.S. plans. The estimated prior service credit and net actuarial loss for the other postretirement benefit plans that will be amortized from AOCL into benefits cost in 2016 are a benefit of $44 million and expense of $6 million , respectively. The Medicare Prescription Drug Improvement and Modernization Act provides plan sponsors a federal subsidy for certain qualifying prescription drug benefits covered under the sponsor’s postretirement health care plans. Our other postretirement benefits cost is presented net of this subsidy. The change in benefit obligation and plan assets for 2015 and 2014 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2015 and 2014 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Beginning balance $ (6,507 ) $ (5,981 ) $ (3,178 ) $ (3,129 ) $ (361 ) (388 ) Newly adopted plans — — (9 ) (3 ) — — Service cost — benefits earned (4 ) (15 ) (43 ) (34 ) (3 ) (4 ) Interest cost (238 ) (256 ) (113 ) (131 ) (15 ) (19 ) Plan amendments — 1 — (2 ) — — Actuarial gain (loss) 262 (693 ) (5 ) (394 ) 22 — Participant contributions — — (2 ) (2 ) (15 ) (16 ) Curtailments/settlements 285 1 19 69 — — Divestitures 500 — — — 6 — Deconsolidation of Venezuelan subsidiary (Note 1) — — 80 — — — Foreign currency translation — — 303 284 35 17 Benefit payments 364 436 140 164 40 49 Ending balance $ (5,338 ) $ (6,507 ) $ (2,808 ) $ (3,178 ) $ (291 ) $ (361 ) Change in plan assets: Beginning balance $ 6,250 $ 4,800 $ 2,721 $ 2,455 $ 5 $ 5 Newly adopted plans — — 9 — — — Actual return on plan assets (117 ) 711 60 505 — — Company contributions to plan assets — 1,167 60 118 2 2 Cash funding of direct participant payments 7 9 36 44 23 31 Participant contributions — — 2 2 15 16 Settlements (285 ) (1 ) (18 ) (39 ) — — Divestitures (480 ) — — — — — Foreign currency translation — — (237 ) (200 ) (2 ) — Benefit payments (364 ) (436 ) (140 ) (164 ) (40 ) (49 ) Ending balance $ 5,011 $ 6,250 $ 2,493 $ 2,721 $ 3 $ 5 Funded status at end of year $ (327 ) $ (257 ) $ (315 ) $ (457 ) $ (288 ) $ (356 ) Other postretirement benefits funded status was $(164) million and $(190) million for our U.S. plans at December 31, 2015 and 2014 , respectively, and $(124) million and $(166) million for our non-U.S. plans at December 31, 2015 and 2014 , respectively. The funded status recognized in the Consolidated Balance Sheets consists of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Noncurrent assets $ — $ 9 $ 249 $ 274 $ — $ — Current liabilities (12 ) (10 ) (19 ) (24 ) (23 ) (28 ) Noncurrent liabilities (315 ) (256 ) (545 ) (707 ) (265 ) (328 ) Net amount recognized $ (327 ) $ (257 ) $ (315 ) $ (457 ) $ (288 ) $ (356 ) The amounts recognized in AOCL, net of tax, consist of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Prior service (credit) cost $ (4 ) $ (4 ) $ 2 $ 4 $ (104 ) $ (152 ) Net actuarial loss 2,643 2,985 693 838 74 99 Gross amount recognized 2,639 2,981 695 842 (30 ) (53 ) Deferred income taxes (128 ) (177 ) (96 ) (137 ) (9 ) (1 ) Minority shareholders’ equity — (62 ) — (109 ) — 1 Net amount recognized $ 2,511 $ 2,742 $ 599 $ 596 $ (39 ) $ (53 ) The following table presents significant weighted average assumptions used to determine benefit obligations at December 31: Pension Plans Other Postretirement Benefits 2015 2014 2015 2014 Discount rate: — U.S. 4.20 % 3.89 % 3.86 % 3.59 % — Non-U.S. 3.47 3.31 5.30 4.89 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 2.63 2.88 N/A N/A The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31: Pension Plans Other Postretirement Benefits 2015 2014 2013 2015 2014 2013 Discount rate: — U.S. 3.89 % 4.40 % 3.77 % 3.59 % 4.06 % 3.30 % — Non-U.S. 3.31 4.36 4.12 4.89 6.62 5.64 Expected long term return on plan assets: — U.S. 5.00 5.47 7.16 N/A N/A N/A — Non-U.S. 4.12 5.12 5.01 N/A N/A N/A Rate of compensation increase: — U.S. N/A N/A N/A N/A N/A N/A — Non-U.S. 2.88 3.11 3.23 N/A N/A N/A For 2015 , a weighted average discount rate of 3.89% was used for the U.S. pension plans. This rate was developed from a portfolio of bonds from issuers rated AA or higher by established rating agencies as of December 31, 2014, with cash flows similar to the timing of our expected benefit payment cash flows. For our non-U.S. locations, a weighted average discount rate of 3.31 % was used. This rate was developed based on the nature of the liabilities and local environments, using available bond indices, yield curves, and long term inflation. Effective January 1, 2016, we changed the method used to measure the service and interest components of net periodic cost for pension and other postretirement benefits for plans that utilize a yield curve approach. We elected to utilize a full yield curve approach in the measurement of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We believe this new approach provides a more precise measurement of service and interest costs by aligning the timing of projected benefit cash flows to the corresponding spot rates on the yield curve. This change does not affect the measurement of our plan benefit obligations. We have accounted for this change as a change in accounting estimate. For 2015 , an assumed weighted average long term rate of return of 5.00% was used for the U.S. pension plans. In developing the long term rate of return, we evaluated input from our pension fund consultant on asset class return expectations, including determining the appropriate rate of return for our plans, which are primarily invested in fixed income securities. For our non-U.S. locations, an assumed weighted average long term rate of return of 4.12% was used. Input from local pension fund consultants concerning asset class return expectations and long term inflation form the basis of this assumption. The U.S. pension plan mortality assumption is based on our actual historical experience and expected future mortality improvements based on published actuarial tables. For our non-U.S. locations, mortality assumptions are based on published actuarial tables which include projections of future mortality improvements. The following table presents estimated future benefit payments from the plans as of December 31, 2015 . Benefit payments for other postretirement benefits are presented net of retiree contributions: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. Without Medicare Part D Subsidy Medicare Part D Subsidy Receipts 2016 $ 421 $ 134 $ 25 $ 1 2017 405 128 25 1 2018 394 131 24 1 2019 384 135 23 1 2020 376 138 22 1 2021-2025 1,767 742 103 5 The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2015 2014 2015 2014 All plans: Accumulated benefit obligation $ 5,329 $ 6,495 $ 2,722 $ 3,040 Plans not fully-funded: Projected benefit obligation $ 5,336 $ 5,087 $ 876 $ 1,112 Accumulated benefit obligation 5,327 5,076 811 994 Fair value of plan assets 5,009 4,822 316 384 Certain non-U.S. subsidiaries maintain unfunded pension plans consistent with local practices and requirements. At December 31, 2015 , these plans accounted for $233 million of our accumulated pension benefit obligation, $256 million of our projected pension benefit obligation, and $68 million of our AOCL adjustment. At December 31, 2014 , these plans accounted for $288 million of our accumulated pension benefit obligation, $348 million of our projected pension benefit obligation, and $132 million of our AOCL adjustment. We expect to contribute approximately $50 million to $75 million to our funded non-U.S. pension plans in 2016. Assumed health care cost trend rates at December 31 follow: 2015 2014 Health care cost trend rate assumed for the next year 6.5 % 7.0 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 5.0 Year that the rate reaches the ultimate trend rate 2022 2022 A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2015 and the aggregate service and interest cost for the year then ended as follows: (In millions) 1% Increase 1% Decrease Accumulated other postretirement benefits obligation $ 15 $ (13 ) Aggregate service and interest cost 1 (1 ) Our pension plan weighted average investment allocation at December 31, by asset category, follows: U.S. Non-U.S. 2015 2014 2015 2014 Cash and short term securities 5 % 4 % 1 % 1 % Equity securities 6 6 12 15 Debt securities 89 90 74 73 Alternatives — — 13 11 Total 100 % 100 % 100 % 100 % Our pension investment policy recognizes the long term nature of pension liabilities, the benefits of diversification across asset classes and the effects of inflation. The portfolio for plans that are fully funded is designed to offset the future impact of discount rate movements on the funded status for those plans. The diversified portfolio for plans that are not fully funded is designed to maximize returns consistent with levels of liquidity and investment risk that are prudent and reasonable. All assets are managed externally according to target asset allocation guidelines we have established. Manager guidelines prohibit the use of any type of investment derivative without our prior approval. Portfolio risk is controlled by having managers comply with guidelines, establishing the maximum size of any single holding in their portfolios and by using managers with different investment styles. We periodically undertake asset and liability modeling studies to determine the appropriateness of the investments. The portfolio of our U.S. pension plan assets includes holdings of global high quality and high yield fixed income securities, short term interest bearing deposits, and private equities. The target asset allocation of our U.S. pension plans is 94% in duration-matched fixed income securities and 6% in equity securities. Actual U.S. pension fund asset allocations are reviewed on a periodic basis and the pension funds are rebalanced to target ranges on an as needed basis. The portfolios of our non-U.S. pension plans include holdings of U.S. and non-U.S. equities, global high quality and high yield fixed income securities, hedge funds, currency derivatives, insurance contracts, repurchase agreements, and short term interest bearing deposits. The weighted average target asset allocation of the non-U.S. pension funds is approximately 10% equities, 80% fixed income, and 10% alternative investments. The fair values of our pension plan assets at December 31, 2015 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 240 $ 237 $ 3 $ — $ 30 $ 28 $ 2 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds 6 — 6 — 231 17 214 — Mutual Funds — — — — 61 3 58 — Partnership Interests 295 — 75 220 — — — — Debt Securities Corporate Bonds 2,413 — 2,413 — 151 14 137 — Government Bonds 1,091 — 1,091 — 2,097 67 2,030 — Repurchase Agreements — — — — (719 ) — (719 ) — Asset Backed Securities 158 — 158 — 11 2 2 7 Commingled Funds 714 — 714 — 342 — 342 — Mutual Funds 86 — 86 — 8 3 5 — Alternatives Commingled Funds — — — — 125 — 6 119 Real Estate — — — — 143 — 2 141 Other Investments — — (2 ) 2 68 1 6 61 Total Investments 5,003 $ 237 $ 4,544 $ 222 2,567 $ 154 $ 2,085 $ 328 Other 8 (74 ) Total Plan Assets $ 5,011 $ 2,493 The fair values of our pension plan assets at December 31, 2014 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 229 $ 218 $ 11 $ — $ 32 $ 27 $ 5 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds 12 — 12 — 328 19 309 — Mutual Funds — — — — 70 7 63 — Partnership Interests 362 — 133 229 — — — — Debt Securities Corporate Bonds 2,678 — 2,678 — 179 17 162 — Government Bonds 1,401 — 1,401 — 616 57 559 — Asset Backed Securities 123 — 123 — 4 2 2 — Commingled Funds 960 — 960 — 1,204 — 1,204 — Mutual Funds 468 — 468 — 28 23 5 — Alternatives Commingled Funds — — — — 129 — 7 122 Real Estate — — — — 136 — 2 134 Other Investments 2 — — 2 24 3 — 21 Total Investments 6,235 $ 218 $ 5,786 $ 231 2,769 $ 174 $ 2,318 $ 277 Other 15 (48 ) Total Plan Assets $ 6,250 $ 2,721 At December 31, 2015 and 2014 , the Plans did not directly hold any of our common stock. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Valuation methodologies used for assets and liabilities measured at fair value are as follows: • Cash and Short Term Securities: Cash and cash equivalents consist of U.S. and foreign currencies. Foreign currencies are reported in U.S. dollars based on currency exchange rates readily available in active markets. Short term securities are valued at the net asset value of units held at year end, as determined by the investment manager. • Equity Securities: Common and preferred stock are valued at the closing price reported on the active market on which the individual securities are traded. Commingled funds are valued at the net asset value of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the net asset value of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. Partnership interests are priced based on valuations using the partnership’s available financial statements coinciding with our year end, adjusted for any cash transactions which occurred between the date of those financial statements and our year end. • Debt Securities: Corporate and government bonds, including asset backed securities, are valued at the closing price reported on the active market on which the individual securities are traded, or based on institutional bid evaluations using proprietary models if an active market is not available. Repurchase agreements are valued at the contract price plus accrued interest. These secured borrowings are collateralized by government bonds held by the non-U.S. plans and have maturities less than one year. Commingled funds are valued at the net asset value of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the net asset value of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. • Alternatives: Commingled funds are invested in hedge funds and currency derivatives, which are valued at the net asset value as determined by the fund manager based on the most recent financial information available, which typically represents significant unobservable data. Real estate held in real estate investment trusts are valued at the closing price reported on the active market on which the individual securities are traded. Participation in real estate funds are valued at the net asset value as determined by the fund manager based on the most recent financial information available, which typically represents significant unobservable data. Other investments include derivative financial instruments, which are primarily valued using independent pricing sources which utilize industry standard derivative valuation models and directed insurance contracts, which are valued as reported by the issuer. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2015 : U.S. Non-U.S. (In millions) Partnership Interests Other Commingled Funds Real Estate Asset Backed Securities Other Balance, beginning of year $ 229 $ 2 $ 122 $ 134 $ — $ 21 Realized gains (losses) 21 — — — — — Unrealized (losses) gains relating to instruments still held at the reporting date (12 ) — 2 12 — — Purchases, sales, issuances and settlements (net) (18 ) — 1 2 7 44 Foreign currency translation — — (6 ) (7 ) — (4 ) Balance, end of year $ 220 $ 2 $ 119 $ 141 $ 7 $ 61 The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2014 : U.S. Non-U.S. (In millions) Partnership Interests Other Commingled Funds Real Estate Other Balance, beginning of year $ 209 $ 6 $ 163 $ 170 $ 19 Realized gains (losses) 31 — 1 1 — Unrealized (losses) gains relating to instruments still held at the reporting date (15 ) — 7 18 — Purchases, sales, issuances and settlements (net) 4 (4 ) (42 ) (47 ) 5 Foreign currency translation — — (7 ) (8 ) (3 ) Balance, end of year $ 229 $ 2 $ 122 $ 134 $ 21 Other postretirement benefits plan assets at December 31, 2015 and 2014 , which relate to a non-U.S. plan, are invested primarily in mutual funds and are considered a Level 1 investment. Savings Plans Substantially all employees in the U.S. and employees of certain non-U.S. locations are eligible to participate in a defined contribution savings plan. Expenses recognized for contributions to these plans were $125 million , $112 million and $106 million for 2015 , 2014 and 2013 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Our stock compensation plans (collectively, the “Plans”) permit the grant of stock options, stock appreciation rights (“SARs”), performance share units, restricted stock, restricted stock units and other stock-based awards to employees and directors. Our current stock compensation plan, the 2013 Performance Plan, was adopted on April 15, 2013 and expires on April 14, 2023. A total of 11,000,000 shares of our common stock may be issued in respect of grants made under the 2013 Performance Plan. Any shares of common stock that are subject to awards of stock options or SARs will be counted as one share for each share granted for purposes of the aggregate share limit and any shares of common stock that are subject to any other awards will be counted as 1.61 shares for each share granted for purposes of the aggregate share limit. In addition, shares of common stock that are subject to awards issued under the 2013 Performance Plan or certain prior stock compensation plans that expire according to their terms or are forfeited, terminated, canceled or surrendered or are settled, or can be paid, only in cash, or are surrendered in payment of taxes associated with such awards (other than stock options or SARs) will be available for issuance pursuant to a new award under the 2013 Performance Plan. Shares issued under our stock compensation plans are usually issued from shares of our common stock held in treasury. Stock Options Grants of stock options and SARs (collectively referred to as “options”) under the Plans generally have a graded vesting period of four years whereby one-fourth of the awards vest on each of the first four anniversaries of the grant date, an exercise price equal to the fair market value of one share of our common stock on the date of grant (calculated as the average of the high and low price or the closing market price on that date depending on the terms of the related Plan) and a contractual term of ten years. The exercise of tandem SARs cancels an equivalent number of stock options and conversely, the exercise of stock options cancels an equivalent number of tandem SARs. Option grants are cancelled on, or 90 days following, termination of employment unless termination is due to retirement, death or disability under certain circumstances, in which case, all outstanding options vest fully and remain outstanding for a term set forth in the related grant agreement. With respect to stock options granted prior to 2008, the exercise of those stock options through a share swap, whereby the employee exercising the stock options tenders shares of our common stock then owned by such employee towards the exercise price plus taxes, if any, due from such employee, results in an immediate grant of new options (hereinafter referred to as “reload” options) equal to the number of shares so tendered plus any shares tendered to satisfy the employee’s income tax obligations on the transaction. Each such grant of reload options vests on the first anniversary of its respective grant date, has an exercise price equal to the fair market value of one share of our common stock on the date of grant (calculated as the average of the high and low price on that date) and a contractual term equal to the remaining contractual term of the original option. The subsequent exercise of such reload options through a share swap does not result in the grant of any additional reload options. The 2013 Performance Plan does not permit the grant of reload options. The following table summarizes the activity related to options during 2015 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 10,350,633 $ 16.75 Options granted 802,871 27.32 Options exercised (3,028,112 ) 18.35 $ 40 Options expired (52,687 ) 17.15 Options cancelled (290,009 ) 18.67 Outstanding at December 31 7,782,696 17.15 5.8 121 Vested and expected to vest at December 31 7,493,529 17.03 5.7 119 Exercisable at December 31 5,153,908 15.55 4.7 89 Available for grant at December 31 8,645,222 In addition, the aggregate intrinsic value of options exercised in 2014 and 2013 was $37 million and $23 million , respectively. Significant option groups outstanding at December 31, 2015 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/23/2015 719,164 — $ 27.16 9.2 2/24/2014 502,513 111,397 26.44 8.2 2/28/2013 1,512,308 695,216 12.98 7.2 2/27/2012 1,139,048 805,963 12.94 6.2 2/22/2011 729,512 729,512 13.91 5.2 2/23/2010 547,334 547,334 12.74 4.2 2/26/2009 489,562 489,562 4.81 3.2 2/21/2008 486,390 486,390 26.74 2.2 2/27/2007 477,584 477,584 24.71 1.2 All other 1,179,281 810,950 (1 ) (1 ) 7,782,696 5,153,908 (1) Options in the “All other” category had exercise prices ranging from $6.22 to $36.25 . The weighted average exercise price for options outstanding and exercisable in that category was $18.65 and $16.63 , respectively, while the remaining weighted average contractual term was 6.1 and 5.0 , respectively. Weighted average grant date fair values of stock options and the assumptions used in estimating those fair values are as follows: 2015 2014 2013 Weighted average grant date fair value $ 11.51 $ 11.48 $ 6.28 Black-Scholes model assumptions (1) : Expected term (years) 7.30 7.40 6.25 Interest rate 1.83 % 2.10 % 1.11 % Volatility 42.00 % 43.45 % 46.66 % Dividend yield 0.88 % 0.81 % — (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. Performance Share Units Performance share units granted under the Plans are earned over a three-year period beginning January 1 of the year of grant. Total units earned for grants made in 2015, 2014 and 2013, may vary between 0% and 200% of the units granted based on the attainment of performance targets during the related three -year period and continued service. The performance targets are established by the Board of Directors. All of the units earned will be settled through the issuance of an equivalent number of shares of our common stock and are equity classified. The following table summarizes the activity related to performance share units during 2015 : Units Weighted Average Grant Date Fair Value Unvested at January 1 322,098 $ 20.47 Units granted 225,392 28.44 Units vested (157,989 ) 12.29 Units forfeited (71,231 ) 23.93 Unvested at December 31 318,270 28.64 We measure the fair value of grants of 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. Restricted Stock Units Restricted stock units granted under the Plans typically vest over a three-year period beginning on the date of grant. Restricted stock units will be settled through the issuance of an equivalent number of shares of our common stock and are equity classified. The following table summarizes the activity related to restricted stock units during 2015 : Units Weighted Average Grant Date Fair Value Unvested at January 1 482,177 $ 22.36 Units granted 330,388 28.43 Units vested and settled (87,972 ) 13.60 Units forfeited (51,500 ) 26.33 Unvested at December 31 673,093 26.16 We measure the fair value of grants of restricted stock units based on the closing market price of a share of our common stock on the date of the grant. Other Information Stock-based compensation expense, cash payments made to settle SARs and cash received from the exercise of stock options follows: (In millions) 2015 2014 2013 Stock-based compensation expense recognized $ 19 $ 20 $ 18 Tax benefit (7 ) (7 ) — After-tax stock-based compensation expense $ 12 $ 13 $ 18 Cash payments to settle SARs $ 2 $ 2 $ 1 Cash received from stock option exercises $ 53 $ 39 $ 22 As of December 31, 2015 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $32 million and is expected to be recognized over the remaining vesting period of the respective grants, through October 2020. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Environmental Matters We have recorded liabilities totaling $50 million and $46 million at December 31, 2015 and December 31, 2014 , respectively, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $12 million and $9 million were included in Other Current Liabilities at December 31, 2015 and December 31, 2014 , respectively. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims. Since many of the remediation activities related to environmental matters vary substantially in duration and cost from site to site and the associated costs for each vary depending on the mix of unique site characteristics, in some cases we cannot reasonably estimate a range of possible losses. Although it is not possible to estimate with certainty the outcome of all of our environmental matters, management believes that potential losses in excess of current reserves for environmental matters, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. Workers’ Compensation We have recorded liabilities, on a discounted basis, totaling $264 million and $306 million for anticipated costs related to workers’ compensation at December 31, 2015 and December 31, 2014 , respectively. Of these amounts, $54 million and $71 million were included in Current Liabilities as part of Compensation and Benefits at December 31, 2015 and December 31, 2014 , respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The decrease in liability from December 31, 2014 to December 31, 2015 reflects the dissolution of the global alliance with SRI and actuarial adjustments, which were partially offset by increased claim activity related to a previously closed facility. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At December 31, 2015 and December 31, 2014 , the liability was discounted using a risk-free rate of return. At December 31, 2015, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $31 million . General and Product Liability and Other Litigation We have recorded liabilities totaling $315 million and $324 million , including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at December 31, 2015 and December 31, 2014 , respectively. Of these amounts, $45 million and $46 million were included in Other Current Liabilities at December 31, 2015 and December 31, 2014 , respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at December 31, 2015 , we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates. We have recorded an indemnification asset within Accounts Receivable of $6 million and within Other Assets of $26 million for SRI's obligation to indemnify us for certain product liability claims related to products manufactured by GDTNA during the existence of the global alliance with SRI, subject to certain caps. 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 117,800 claims by defending and obtaining the dismissal thereof or by entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $497 million and $458 million through December 31, 2015 and December 31, 2014 , respectively. 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. (Dollars in millions) 2015 2014 2013 Pending claims, beginning of year 73,800 74,000 73,200 New claims filed during the year 1,900 1,900 2,600 Claims settled/dismissed during the year (8,300 ) (2,100 ) (1,800 ) Pending claims, end of year 67,400 73,800 74,000 Payments (1) $ 19 $ 20 $ 19 (1) Represents amount spent 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 $171 million and $151 million at December 31, 2015 and December 31, 2014 , respectively. The increase in the liability during 2015 is based on updated assumptions for defense costs and indemnity costs in future periods based on historical cost data and trends. The recorded liability represents our estimated liability over the next ten years, which represents the period over which the liability can be reasonably estimated. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future could result in an increase in the recorded obligation in an amount that cannot be reasonably estimated, and that increase could be significant. We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery. We recorded a receivable related to asbestos claims of $117 million at December 31, 2015 and $71 million at December 31, 2014 . The increase in the receivable is related to changes in assumptions for probable insurance recoveries for asbestos claims in future periods which positively impacted the receivable by $21 million , as well as an increase in anticipated insurance recoveries corresponding to the increase in the gross liability. We expect that approximately 70% of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $12 million and $13 million were included in Current Assets as part of Accounts Receivable at December 31, 2015 and December 31, 2014 , respectively. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary carriers 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, 2015 , we had approximately $410 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements, which increased as a result of recent changes in assumptions for insurance recoveries. We also had additional unsettled excess level policy limits potentially applicable to such costs. We also 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. We believe that our reserve for asbestos claims, and the receivable for recoveries from insurance carriers recorded in respect of these claims, reflects reasonable and probable estimates of these amounts, subject to the exclusion of claims for which it is not feasible to make reasonable estimates. The estimate of the assets and liabilities related to pending and expected future asbestos claims and insurance recoveries is subject to numerous uncertainties, including, but not limited to, changes in: • the litigation environment, • Federal and state law governing the compensation of asbestos claimants, • recoverability of receivables due to potential insolvency of carriers, • our approach to defending and resolving claims, and • the level of payments made to claimants from other sources, including other defendants and 524(g) trusts. As a result, 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. Depending upon the nature of these characteristics, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us. Amiens Labor Claims Approximately 800 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €111 million ( $121 million ) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims. Other Actions We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations. Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods. Income Tax Matters The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, result in a reduction in our effective tax rate in the period of resolution. While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims. Binding Commitments and Guarantees At December 31, 2015 , we had binding commitments for raw materials, capital expenditures, utilities and various other types of contracts. Total commitments on contracts that extend beyond 2016 are expected to total approximately $4,000 million . In addition, we have other contractual commitments, the amounts of which cannot be estimated, pursuant to certain long term agreements under which we will purchase varying amounts of certain raw materials and finished goods at agreed upon base prices that may be subject to periodic adjustments for changes in raw material costs and market price adjustments, or in quantities that may be subject to periodic adjustments for changes in our or our suppliers' production levels. We have off-balance sheet financial guarantees and other commitments totaling approximately $49 million and $7 million at December 31, 2015 and December 31, 2014 , respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. Normally there is no separate premium received by us as consideration for the issuance of guarantees. 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 GDTNA's outstanding workers' compensation claims arising during the existence of the global alliance. 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 decrease over time as GDTNA pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2020. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. Indemnifications At December 31, 2015 , we were a party to various agreements under which we had assumed obligations to indemnify the counterparties from certain potential claims and losses. These agreements typically involve standard commercial activities undertaken by us in the normal course of business; the sale of assets by us; the formation or dissolution of joint venture businesses to which we had contributed assets in exchange for ownership interests; and other financial transactions. Indemnifications provided by us pursuant to these agreements relate to various matters including, among other things, environmental, tax and shareholder matters; intellectual property rights; government regulations and employment-related matters; and dealer, supplier and other commercial matters. Certain indemnifications expire from time to time, and certain other indemnifications are not subject to an expiration date. In addition, our potential liability under certain indemnifications is subject to maximum caps, while other indemnifications are not subject to caps. Although we have been subject to indemnification claims in the past, we cannot reasonably estimate the number, type and size of indemnification claims that may arise in the future. Due to these and other uncertainties associated with the indemnifications, our maximum exposure to loss under these agreements cannot be estimated. We have determined that there are no indemnifications or guarantees other than liabilities for which amounts are already recorded or reserved in our consolidated financial statements under which it is probable that we have incurred a liability. Warranty We recorded $17 million and $22 million for potential claims under warranties offered by us at December 31, 2015 and 2014 , respectively, the majority of which is recorded in Other Current Liabilities. The following table presents changes in the warranty reserve during 2015 and 2014 : (in millions) 2015 2014 Balance at January 1 $ 22 $ 21 Payments made during the period (37 ) (39 ) Expense recorded during the period 33 41 Translation adjustment (1 ) (1 ) Balance at December 31 $ 17 $ 22 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Capital Stock [Abstract] | |
Capital Stock | Capital Stock Mandatory Convertible Preferred Stock On April 1, 2014, all outstanding shares of mandatory convertible preferred stock automatically converted into 27,573,735 shares of common stock, net of fractional shares, at a conversion rate of 2.7574 shares of common stock per share of preferred stock. Dividends During 2014 and 2013, we paid cash dividends of $15 million and $29 million , respectively, on our mandatory convertible preferred stock. No further dividends will be paid on our preferred stock following the conversion of shares into common stock on April 1, 2014. During 2015, 2014 and 2013 we paid cash dividends of $68 million , $60 million and $12 million , respectively, on our common stock. On January 15, 2016 , the Company’s Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.07 per share on our common stock, or approximately $19 million in the aggregate. The cash dividend will be paid on March 1, 2016 to stockholders of record as of the close of business of February 1, 2016 . Future quarterly dividends are subject to Board approval. Common Stock Repurchases On September 18, 2013, the Board of Directors authorized $100 million for use in our common stock repurchase program. On May 27, 2014, the Board of Directors approved an increase in that authorization to $450 million . On February 4, 2016, the Board of Directors approved a further increase in that authorization to $1.1 billion . This program expires on December 31, 2018. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During 2015, we repurchased 5,571,909 shares at an average price, including commissions, of $32.32 per share, or $180 million in the aggregate. Since 2013, we repurchased 14,507,718 shares at an average price, including commissions, of $28.49 per share, or $413 million in the aggregate. In addition, we 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 2015, we repurchased 75,520 shares from employees. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of Accumulated Other Comprehensive Loss The following table presents changes in Accumulated Other Comprehensive Loss (AOCL) by component, for the year ended December 31, 2015 and 2014: (In millions) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Unrealized Investment Gains Total Balance at December 31, 2013 $ (690 ) $ (3,278 ) $ (1 ) $ 34 $ (3,935 ) Other comprehensive income (loss) before reclassifications (206 ) (112 ) 13 2 (303 ) Amounts reclassified from accumulated other comprehensive loss 3 105 — — 108 Purchase of subsidiary shares from minority interest (1 ) — — — (1 ) Balance at December 31, 2014 $ (894 ) $ (3,285 ) $ 12 $ 36 $ (4,131 ) Other comprehensive income (loss) before reclassifications (251 ) (68 ) 15 (4 ) (308 ) Amounts reclassified from accumulated other comprehensive loss 16 325 (21 ) (32 ) 288 Purchase of subsidiary shares from minority interest (3 ) (105 ) 1 — (107 ) Deconsolidation of Venezuelan subsidiary (Note 1) 186 62 — — 248 Balance at December 31, 2015 $ (946 ) $ (3,071 ) $ 7 $ — $ (4,010 ) The following table presents reclassifications out of AOCL for the year ended December 31, 2015 and 2014: Year Ended December 31, (In millions) 2015 2014 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Foreign Currency Translation Adjustment, before tax $ 16 $ 3 Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) 186 — Loss on Deconsolidation of Venezuelan Subsidiary Tax effect — — United States and Foreign Taxes Minority interest — — Minority Shareholders' Net Income Net of tax $ 202 $ 3 Goodyear Net Income Amortization of prior service cost and unrecognized gains and losses $ 103 $ 115 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments and settlements 142 48 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to divestitures 184 — Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) 62 — Loss on Deconsolidation of Venezuelan Subsidiary Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 491 $ 163 Tax effect (101 ) (49 ) United States and Foreign Taxes Minority interest (3 ) (9 ) Minority Shareholders' Net Income Net of tax $ 387 $ 105 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ (28 ) $ — Cost of Goods Sold Tax effect 3 1 United States and Foreign Taxes Minority interest 4 (1 ) Minority Shareholders' Net Income Net of tax $ (21 ) $ — Goodyear Net Income Unrealized Investment (Gains), before tax $ (30 ) $ — Other (Income) Expense Tax effect (2 ) — United States and Foreign Taxes Minority interest — — Minority Shareholders' Net Income Net of tax $ (32 ) $ — Goodyear Net Income Total reclassifications $ 536 $ 108 Goodyear Net Income |
Consolidating Financial Informa
Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidating Financial Information | Consolidating Financial Information Certain of our subsidiaries have guaranteed our obligations under the $282 million outstanding principal amount of 8.75% notes due 2020 , the $900 million outstanding principal amount of 6.5% senior notes due 2021 , the $700 million outstanding principal amount of 7% senior notes due 2022 and the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for: (i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations; (ii) Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes; (iii) Non-guarantor subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and (v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis. Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of the capital stock of various subsidiaries, loans and other capital transactions between members of the consolidated group. In 2015, the Parent Company acquired the common shares of a non-guarantor subsidiary from another non-guarantor subsidiary at a cost of $145 million. The transaction was settled by the cancellation of intercompany balances between the Parent Company and the transferring non-guarantor subsidiary. In addition, in 2015 the Parent Company capitalized approximately $90 million of intercompany receivables from a non-guarantor subsidiary with a corresponding increase in equity of the subsidiary. Certain non-guarantor subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries. Condensed Consolidating Balance Sheet December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 354 $ 70 $ 1,052 $ — $ 1,476 Accounts Receivable 814 136 1,083 — 2,033 Accounts Receivable From Affiliates — 609 — (609 ) — Inventories 1,199 157 1,152 (44 ) 2,464 Prepaid Expenses and Other Current Assets 51 3 111 3 168 Total Current Assets 2,418 975 3,398 (650 ) 6,141 Goodwill — 24 407 124 555 Intangible Assets 118 — 20 — 138 Deferred Income Taxes 2,049 19 73 — 2,141 Other Assets 246 81 353 7 687 Investments in Subsidiaries 4,088 383 — (4,471 ) — Property, Plant and Equipment 2,377 216 4,213 (29 ) 6,777 Total Assets $ 11,296 $ 1,698 $ 8,464 $ (5,019 ) $ 16,439 Liabilities: Current Liabilities: Accounts Payable-Trade $ 1,002 $ 189 $ 1,578 $ — $ 2,769 Accounts Payable to Affiliates 540 — 69 (609 ) — Compensation and Benefits 411 29 226 — 666 Other Current Liabilities 328 16 547 (5 ) 886 Notes Payable and Overdrafts — — 49 — 49 Long Term Debt and Capital Leases Due Within One Year 6 — 581 — 587 Total Current Liabilities 2,287 234 3,050 (614 ) 4,957 Long Term Debt and Capital Leases 3,835 — 1,285 — 5,120 Compensation and Benefits 725 97 646 — 1,468 Deferred Income Taxes — 1 92 (2 ) 91 Other Long Term Liabilities 529 15 119 (2 ) 661 Total Liabilities 7,376 347 5,192 (618 ) 12,297 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 267 — — — 267 Other Equity 3,653 1,351 3,050 (4,401 ) 3,653 Goodyear Shareholders’ Equity 3,920 1,351 3,050 (4,401 ) 3,920 Minority Shareholders’ Equity — Nonredeemable — — 222 — 222 Total Shareholders’ Equity 3,920 1,351 3,272 (4,401 ) 4,142 Total Liabilities and Shareholders’ Equity $ 11,296 $ 1,698 $ 8,464 $ (5,019 ) $ 16,439 Condensed Consolidating Balance Sheet December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 674 $ 89 $ 1,398 $ — $ 2,161 Accounts Receivable 833 166 1,127 — 2,126 Accounts Receivable From Affiliates — 623 — (623 ) — Inventories 1,151 148 1,410 (38 ) 2,671 Prepaid Expenses and Other Current Assets 39 2 160 — 201 Total Current Assets 2,697 1,028 4,095 (661 ) 7,159 Goodwill — 24 462 115 601 Intangible Assets 114 — 24 — 138 Deferred Income Taxes 2,126 31 95 1 2,253 Other Assets 234 86 411 9 740 Investments in Subsidiaries 4,054 416 — (4,470 ) — Property, Plant and Equipment 2,329 132 4,721 (29 ) 7,153 Total Assets $ 11,554 $ 1,717 $ 9,808 $ (5,035 ) $ 18,044 Liabilities: Current Liabilities: Accounts Payable-Trade $ 910 $ 191 $ 1,777 $ — $ 2,878 Accounts Payable to Affiliates 557 — 66 (623 ) — Compensation and Benefits 392 31 301 — 724 Other Current Liabilities 350 23 581 (4 ) 950 Notes Payable and Overdrafts — — 30 — 30 Long Term Debt and Capital Leases Due Within One Year 6 — 142 — 148 Total Current Liabilities 2,215 245 2,897 (627 ) 4,730 Long Term Debt and Capital Leases 4,375 — 1,841 — 6,216 Compensation and Benefits 666 127 883 — 1,676 Deferred Income Taxes — 1 91 (2 ) 90 Other Long Term Liabilities 688 35 188 (6 ) 905 Total Liabilities 7,944 408 5,900 (635 ) 13,617 Commitments and Contingent Liabilities Minority Shareholders’ Equity — — 392 190 582 Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 269 — — — 269 Other Equity 3,341 1,309 3,281 (4,590 ) 3,341 Goodyear Shareholders’ Equity 3,610 1,309 3,281 (4,590 ) 3,610 Minority Shareholders’ Equity — Nonredeemable — — 235 — 235 Total Shareholders’ Equity 3,610 1,309 3,516 (4,590 ) 3,845 Total Liabilities and Shareholders’ Equity $ 11,554 $ 1,717 $ 9,808 $ (5,035 ) $ 18,044 Consolidating Statements of Operations Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,566 $ 2,129 $ 10,308 $ (3,560 ) $ 16,443 Cost of Goods Sold 5,804 1,915 8,090 (3,645 ) 12,164 Selling, Administrative and General Expense 1,053 172 1,392 (3 ) 2,614 Rationalizations 13 — 101 — 114 Interest Expense 317 22 131 (58 ) 412 Loss on Deconsolidation of Venezuelan Subsidiary 374 — 272 — 646 Other (Income) Expense (433 ) (13 ) 177 154 (115 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 438 33 145 (8 ) 608 United States and Foreign Tax Expense 104 10 112 6 232 Equity in Earnings (Loss) of Subsidiaries (27 ) 19 — 8 — Net Income (Loss) 307 42 33 (6 ) 376 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) $ 307 $ 42 $ (36 ) $ (6 ) $ 307 Comprehensive Income (Loss) $ 535 $ 54 $ 46 $ (94 ) $ 541 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 32 (26 ) 6 Goodyear Comprehensive Income (Loss) $ 535 $ 54 $ 14 $ (68 ) $ 535 Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,915 $ 2,487 $ 12,051 $ (4,315 ) $ 18,138 Cost of Goods Sold 6,457 2,237 9,622 (4,410 ) 13,906 Selling, Administrative and General Expense 916 166 1,645 (7 ) 2,720 Rationalizations (6 ) — 101 — 95 Interest Expense 332 26 133 (63 ) 428 Other (Income) Expense (91 ) (11 ) 228 176 302 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 69 322 (11 ) 687 United States and Foreign Tax (Benefit) Expense (2,026 ) 14 174 4 (1,834 ) Equity in Earnings of Subsidiaries 119 28 — (147 ) — Net Income (Loss) 2,452 83 148 (162 ) 2,521 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 2,452 83 79 (162 ) 2,452 Less: Preferred Stock Dividends 7 — — — 7 Goodyear Net Income (Loss) available to Common Shareholders $ 2,445 $ 83 $ 79 $ (162 ) $ 2,445 Comprehensive Income (Loss) $ 2,257 $ 89 $ (11 ) $ (58 ) $ 2,277 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 46 (26 ) 20 Goodyear Comprehensive Income (Loss) $ 2,257 $ 89 $ (57 ) $ (32 ) $ 2,257 Consolidating Statements of Operations Year Ended December 31, 2013 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 8,324 $ 2,690 $ 12,721 $ (4,195 ) $ 19,540 Cost of Goods Sold 7,001 2,415 10,399 (4,393 ) 15,422 Selling, Administrative and General Expense 946 171 1,658 (17 ) 2,758 Rationalizations 6 3 49 — 58 Interest Expense 315 29 114 (66 ) 392 Other (Income) Expense (251 ) 5 83 260 97 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 67 418 21 813 United States and Foreign Tax (Benefit) Expense 22 43 88 (15 ) 138 Equity in Earnings of Subsidiaries 344 5 — (349 ) — Net Income (Loss) 629 29 330 (313 ) 675 Less: Minority Shareholders’ Net Income — — 46 — 46 Goodyear Net Income (Loss) 629 29 284 (313 ) 629 Less: Preferred Stock Dividends 29 — — — 29 Goodyear Net Income (Loss) available to Common Shareholders $ 600 $ 29 $ 284 $ (313 ) $ 600 Comprehensive Income (Loss) $ 1,242 $ 107 $ 353 $ (382 ) $ 1,320 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 69 9 78 Goodyear Comprehensive Income (Loss) $ 1,242 $ 107 $ 284 $ (391 ) $ 1,242 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 979 $ 149 $ 612 $ (53 ) $ 1,687 Cash Flows from Investing Activities: Capital Expenditures (315 ) (119 ) (558 ) 9 (983 ) Asset Dispositions 48 — 14 — 62 Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary — — (320 ) — (320 ) Decrease (Increase) in Restricted Cash — — (6 ) — (6 ) Short Term Securities Acquired — — (77 ) — (77 ) Short Term Securities Redeemed — — 69 — 69 Capital Contributions Received and Loans Incurred (70 ) — (90 ) 160 — Capital Redemptions and Loans Paid 122 — 125 (247 ) — Other Transactions — — (7 ) — (7 ) Total Cash Flows from Investing Activities (215 ) (119 ) (850 ) (78 ) (1,262 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 55 — 118 (70 ) 103 Short Term Debt and Overdrafts Paid (15 ) (16 ) (123 ) 70 (84 ) Long Term Debt Incurred 1,736 — 1,083 — 2,819 Long Term Debt Paid (2,341 ) — (974 ) — (3,315 ) Common Stock Issued 53 — — — 53 Common Stock Repurchased (180 ) — — — (180 ) Common Stock Dividends Paid (68 ) — — — (68 ) Capital Contributions Received and Loans Incurred 90 12 58 (160 ) — Capital Redemptions and Loans Paid (125 ) (15 ) (107 ) 247 — Intercompany Dividends Paid — (17 ) (27 ) 44 — Transactions with Minority Interests in Subsidiaries — — (9 ) — (9 ) Debt Related Costs and Other Transactions (18 ) — (15 ) — (33 ) Dissolution of Global Alliance (271 ) — — — (271 ) Total Cash Flows from Financing Activities (1,084 ) (36 ) 4 131 (985 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (13 ) (112 ) — (125 ) Net Change in Cash and Cash Equivalents (320 ) (19 ) (346 ) — (685 ) Cash and Cash Equivalents at Beginning of the Year 674 89 1,398 — 2,161 Cash and Cash Equivalents at End of the Year $ 354 $ 70 $ 1,052 $ — $ 1,476 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ (334 ) $ 195 $ 758 $ (279 ) $ 340 Cash Flows from Investing Activities: Capital Expenditures (303 ) (19 ) (607 ) 6 (923 ) Asset Dispositions 9 2 7 — 18 Decrease (Increase) in Restricted Cash (1 ) — 6 — 5 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 95 — 95 Capital Contributions Received and Loans Incurred (382 ) — (457 ) 839 — Capital Redemptions and Loans Paid 459 — 244 (703 ) — Other Transactions 13 — 13 — 26 Total Cash Flows from Investing Activities (205 ) (17 ) (771 ) 142 (851 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 22 — 60 (36 ) 46 Short Term Debt and Overdrafts Paid (14 ) (22 ) (24 ) 36 (24 ) Long Term Debt Incurred 601 — 1,241 — 1,842 Long Term Debt Paid (608 ) — (947 ) — (1,555 ) Common Stock Issued 39 — — — 39 Common Stock Repurchased (234 ) — — — (234 ) Common Stock Dividends Paid (60 ) — — — (60 ) Preferred Stock Dividends Paid (15 ) — — — (15 ) Capital Contributions Received and Loans Incurred 457 47 335 (839 ) — Capital Redemptions and Loans Paid (244 ) — (459 ) 703 — Intercompany Dividends Paid — (203 ) (70 ) 273 — Transactions with Minority Interests in Subsidiaries — — (49 ) — (49 ) Debt Related Costs and Other Transactions — — (1 ) — (1 ) Total Cash Flows from Financing Activities (56 ) (178 ) 86 137 (11 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (5 ) (308 ) — (313 ) Net Change in Cash and Cash Equivalents (595 ) (5 ) (235 ) — (835 ) Cash and Cash Equivalents at Beginning of the Year 1,269 94 1,633 — 2,996 Cash and Cash Equivalents at End of the Year $ 674 $ 89 $ 1,398 $ — $ 2,161 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 17 $ 16 $ 1,009 $ (104 ) $ 938 Cash Flows from Investing Activities: Capital Expenditures (220 ) (19 ) (940 ) 11 (1,168 ) Asset Dispositions 2 — 23 — 25 Decrease (Increase) in Restricted Cash — — 14 — 14 Short Term Securities Acquired — — (105 ) — (105 ) Short Term Securities Redeemed — — 89 — 89 Capital Contributions Received and Loans Incurred (91 ) (11 ) (170 ) 272 — Capital Redemptions and Loans Paid 214 — 403 (617 ) — Other Transactions — — 9 — 9 Total Cash Flows from Investing Activities (95 ) (30 ) (677 ) (334 ) (1,136 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 14 — 121 (104 ) 31 Short Term Debt and Overdrafts Paid (90 ) (14 ) (120 ) 104 (120 ) Long Term Debt Incurred 900 — 1,013 — 1,913 Long Term Debt Paid (11 ) — (670 ) — (681 ) Common Stock Issued 26 — — — 26 Common Stock Repurchased (4 ) — — — (4 ) Common Stock Dividends Paid (12 ) — — — (12 ) Preferred Stock Dividends Paid (29 ) — — — (29 ) Capital Contributions Received and Loans Incurred 170 58 44 (272 ) — Capital Redemptions and Loans Paid (403 ) — (214 ) 617 — Intercompany Dividends Paid — — (93 ) 93 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions (16 ) — — — (16 ) Total Cash Flows from Financing Activities 545 44 55 438 1,082 Effect of Exchange Rate Changes on Cash and Cash Equivalents — (4 ) (165 ) — (169 ) Net Change in Cash and Cash Equivalents 467 26 222 — 715 Cash and Cash Equivalents at Beginning of the Year 802 68 1,411 — 2,281 Cash and Cash Equivalents at End of the Year $ 1,269 $ 94 $ 1,633 $ — $ 2,996 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Year Ended December 31, (In millions) Additions Description Balance at beginning of period Charged (credited) to income Charged (credited) to AOCL Deductions from reserves Translation adjustment during period Balance at end of period 2015 Allowance for doubtful accounts $ 89 $ 32 $ — $ (8 ) (a) $ (8 ) $ 105 Valuation allowance — deferred tax assets 632 31 8 (4 ) (46 ) 621 2014 Allowance for doubtful accounts $ 99 $ 19 $ — $ (39 ) (a) $ 10 $ 89 Valuation allowance — deferred tax assets 2,968 (2,253 ) (32 ) — (51 ) 632 2013 Allowance for doubtful accounts $ 99 $ 18 $ — $ (20 ) (a) $ 2 $ 99 Valuation allowance — deferred tax assets 3,393 (206 ) (234 ) — 15 2,968 Note: (a) Accounts receivable charged off. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued and Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance on simplifying the presentation of deferred income taxes that requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. We adopted the standards update effective October 1, 2015, electing to apply it retrospectively to all periods presented. The adoption of this standards update affects balance sheet presentation, and as of December 31, 2014 it resulted in an increase in noncurrent deferred income tax assets of $500 million , a reduction of current deferred income tax assets of $565 million , a reduction of noncurrent deferred income tax liabilities of $60 million and a reduction of current deferred income tax liabilities of $5 million . Effective January 1, 2015, we adopted an accounting standards update providing new guidance on the requirements for reporting a discontinued operation. The standards update allows only those disposals representing a strategic shift in operations with a major effect on the entity's operations and financial results to be reported as a discontinued operation. It also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operations. Additional disclosures are also required for discontinued operations and individually material disposal transactions that do not meet the definition of a discontinued operation. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In September 2015, the FASB issued an accounting standards update with new guidance that eliminates the requirement in a business combination to restate prior period financial statements for measurement period adjustments. Instead, measurement period adjustments will be recognized in the reporting period in which the adjustment is identified. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015. The amendments should be applied prospectively to measurement period adjustments that occur after the effective date of this update with early adoption permitted for financial statements that have not been issued. We will adopt this standards update as required and recognize any such future adjustments accordingly. In July 2015, the FASB issued an accounting standards update with new guidance on simplifying the measurement of inventory. Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact of adopting this standards update on our consolidated financial statements. In April 2015, the FASB issued an accounting standards update with new guidance on whether a cloud computing arrangement includes a software license and the accounting for such an arrangement. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistently with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the agreement should be accounted for as a service contract. The standards update is effective for fiscal years and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In April 2015, the FASB issued an accounting standards update with new guidance on the presentation of debt issuance costs that requires all costs incurred to issue debt to be presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. In August 2015, the FASB issued an accounting standards update that allows debt issuance costs incurred in connection with line of credit arrangements to be presented as an asset. The standards updates are effective for fiscal years and interim periods beginning after December 15, 2015 on a retrospective basis, with early adoption permitted. The adoption of these standards updates affects presentation only and is not expected to have a material impact on our consolidated financial statements. In August 2014, the FASB issued an accounting standards update with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management's mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standards update is effective for the first annual period ending after December 15, 2016, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. We are currently evaluating our significant contracts and assessing any impact of adopting this standards update on our consolidated financial statements. |
Other | Other We were a party to shareholder agreements concerning certain of our less-than-wholly-owned consolidated subsidiaries. Under the terms of certain of these agreements, the minority shareholders had the right to require us to purchase their ownership interests in the respective subsidiaries if there was a change in control of the Company, a bankruptcy of the Company, or other circumstances. Accordingly, we have reported the minority equity in those subsidiaries outside of shareholders’ equity. On October 1, 2015, we completed the dissolution of our global alliance with Sumitomo Rubber Industries, Ltd. ("SRI"). Refer to Note 5. |
Pension and Other Postretirement Plans | During the fourth quarter of 2015, the value of pension assets used in the calculation of pension expense for our Canadian plans was changed from market-related value to fair value. This change is considered preferable because it better reflects recent gains or losses from pension assets in pension expense. As a result, all of our pension plans now use fair value in the calculation of pension expense. The change to the fair value method for these plans was retrospectively applied by restating all periods presented. The impact on the consolidated financial statements for the prior periods presented was insignificant. |
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. Deconsolidation of Venezuelan Subsidiary Our wholly-owned subsidiary, C.A. Goodyear de Venezuela, manufactures, markets and distributes consumer and commercial tires throughout Venezuela. Evolving conditions in Venezuela, including currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar fuerte and the U.S. dollar, and have restricted the ability of our Venezuelan subsidiary to pay dividends and royalties and to settle liabilities. These currency exchange regulations, combined with other government regulations such as price and profit margin controls and strict labor laws, have increasingly limited our ability to make and execute operational decisions at our Venezuelan subsidiary. This lack of currency exchangeability, combined with these other operating restrictions, have significantly limited our Venezuelan subsidiary's ability to maintain normal production and control over its operations. We expect these conditions to continue for the foreseeable future. As a result of these conditions, we concluded that effective as of December 31, 2015, we do not meet the accounting criteria for control over our Venezuelan subsidiary and began reporting the results of our Venezuelan subsidiary using the cost method of accounting. This change resulted in a pre-tax charge of $646 million in the fourth quarter of 2015. The pre-tax charge includes the derecognition of the carrying amounts of our Venezuelan subsidiary's assets and liabilities, including $320 million of Cash and Cash Equivalents, that are no longer reported in the Consolidated Balance Sheet as of December 31, 2015. The pre-tax charge also includes $248 million of foreign currency translation losses and pension losses previously included in Accumulated Other Comprehensive Loss ("AOCL") in the Company’s Consolidated Balance Sheet. We have determined the fair value of our investment in, and receivables from, our Venezuelan subsidiary to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. In future reporting periods, our financial results will not include the operating results of our Venezuelan subsidiary. We will record income from sales of inventory and raw materials or from dividends or royalties to the extent cash is received from our Venezuelan subsidiary. Our exposure to future losses resulting from our Venezuelan subsidiary is limited to the extent that we decide to provide raw materials or finished goods to, or make future investments in, our Venezuelan subsidiary. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates, including those related to: • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • workers’ compensation, • general and product liabilities and other litigation, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. |
Revenue Recognition | Revenue Recognition and Accounts Receivable Valuation Revenues are recognized when finished products are shipped to unaffiliated customers, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, and collectability is reasonably assured. |
Accounts Receivable Valuation | A provision for sales returns, discounts and allowances is recorded at the time of sale. Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk. The adequacy of the allowances are assessed quarterly. |
Shipping and Handling Costs | Shipping and Handling Costs Costs incurred for transportation of products to customers are recorded as a component of Cost of Goods Sold (“CGS”). |
Research and Development Costs | Research and Development Costs Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. |
Warranty | Warranty Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties we offer is on a prorated basis. Warranty reserves are based on past claims experience, sales history and other considerations. Refer to Note 19 . |
Environmental Cleanup Matters | Environmental Cleanup Matters We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. We determine our liability on a site by site basis and record a liability at the time when it is probable and can be reasonably estimated. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Our estimated liability is not discounted or reduced for possible recoveries from insurance carriers. Refer to Note 19 . |
Legal Costs | Legal Costs We record a liability for estimated legal and defense costs related to pending general and product liability claims, environmental matters and workers’ compensation claims. Refer to Note 19 . |
Advertising Costs | Advertising Costs Costs incurred for producing and communicating advertising are generally expensed when incurred as a component of Selling, Administrative and General Expense (“SAG”). Costs incurred under our cooperative advertising programs with dealers and franchisees are generally recorded as reductions of sales as related revenues are recognized. |
Rationalizations | Rationalizations We record costs for rationalization actions implemented to reduce excess and high-cost manufacturing capacity and operating and administrative costs. Associate-related costs include severance, supplemental unemployment compensation and benefits, medical benefits, pension curtailments, postretirement benefits, and other termination benefits. For ongoing benefit arrangements, a liability is recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. These conditions are generally met when the restructuring plan is approved by management. For one-time benefit arrangements, a liability is incurred and must be accrued at the date the plan is communicated to employees, unless they will be retained beyond a minimum retention period. In this case, the liability is calculated at the date the plan is communicated to employees and is accrued ratably over the future service period. Other costs generally include non-cancelable lease costs, contract terminations, and relocation costs. A liability for these costs is recognized in the period in which the liability is incurred. Rationalization charges related to accelerated depreciation and asset impairments are recorded in CGS or SAG. Refer to Note 2 . |
Income Taxes | Income Taxes Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between carrying values of assets and liabilities for financial reporting purposes and such carrying values as measured under applicable tax laws. The effect on deferred tax assets or liabilities of a change in the tax law or tax rate is recognized in the period the change is enacted. Valuation allowances are recorded to reduce net deferred tax assets to the amount that is more likely than not to be realized. The calculation of our tax liabilities also involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. Refer to Note 6 . |
Cash and Cash Equivalents | Cash and Cash Equivalents / Consolidated Statements of Cash Flows Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Substantially all of our cash and short-term investment securities are held with investment grade-rated counterparties. |
Consolidated Statements Of Cash Flows | Cash flows associated with derivative financial instruments designated as hedges of identifiable transactions or events are classified in the same category as the cash flows from the related hedged items. Cash flows associated with derivative financial instruments not designated as hedges are classified as operating activities. Bank overdrafts are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. Customer prepayments for products and government grants received that are related to operations are reported as operating activities. Government grants received that are solely related to capital expenditures are reported as investing activities. The Consolidated Statements of Cash Flows are presented net of capital leases of $3 million , $12 million and $19 million originating in the years ended December 31, 2015 , 2014 and 2013 , respectively, and net of capitalized costs related to the Global and North America Headquarters facility and parking deck of $18 million for the year ended December 31, 2013 . |
Restricted Net Assets | Restricted Net Assets In certain countries where we operate, transfers of funds into or out of such countries by way of dividends, loans or advances are generally or periodically subject to various governmental regulations. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make cash distributions. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We determine a provision for excess and obsolete inventory based on management’s review of inventories on hand compared to estimated future usage and sales. Refer to Note 10 . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then the amount of the impairment loss, if any, must be measured. In addition to annual testing, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives, and reviewed for impairment whenever events or circumstances warrant such a review. Refer to Note 11 . |
Investments | Investments Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable securities classified as available-for-sale are recorded in AOCL, net of tax. We regularly review our investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the Consolidated Statements of Operations. Refer to Notes 12 and 21 . |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are solely related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for most subsidiaries outside the United States is the local currency. Financial statements of these subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. The U.S. dollar is used as the functional currency in countries with a history of high inflation and in countries that predominantly sell into the U.S. dollar export market. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in Other (Income) Expense. Translation adjustments are recorded in AOCL. Income taxes are generally not provided for foreign currency translation adjustments. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities To qualify for hedge accounting, hedging instruments must be designated as hedges and meet defined correlation and effectiveness criteria. These criteria require that the anticipated cash flows and/or changes in fair value of the hedging instrument substantially offset those of the position being hedged. Derivative contracts are reported at fair value on the Consolidated Balance Sheets as Accounts Receivable or Other Current Liabilities. Deferred gains and losses on contracts designated as cash flow hedges are recorded net of tax in AOCL. Ineffectiveness in hedging relationships is recorded in Other (Income) Expense in the current period. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other Expense in the current period. Gains and losses on contracts with no hedging designation are also recorded in Other Expense in the current period. We do not include premiums or discounts on forward currency contracts in our assessment of hedge effectiveness. Premiums and discounts on contracts designated as hedges are recognized in Other (Income) Expense over the life of the contract. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — Gains and losses (including deferred gains and losses in AOCL) are recognized in Other (Income) Expense when contracts are terminated concurrently with the termination of the hedged position. To the extent that such position remains outstanding, gains and losses are amortized to Interest Expense or to Other Expense over the remaining life of that position. Gains and losses on contracts that we temporarily continue to hold after the early termination of a hedged position, or that otherwise no longer qualify for hedge accounting, are recognized in Other (Income) Expense. Refer to Note 15 . |
Share-Based Compensation | Stock-Based Compensation We measure compensation cost arising from the grant of stock-based awards to employees at fair value and recognize such cost in income over the period during which the service is provided, usually the vesting period. We recognize compensation expense using the straight-line approach. Stock-based awards to employees include grants of performance share units, restricted stock units and stock options. We measure the fair value of grants of performance share units and restricted stock 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. We estimate the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: • Expected term represents the period of time that options granted are expected to be outstanding based on our historical experience of option exercises; • Expected volatility is measured using the weighted average of historical daily changes in the market price of our common stock over the expected term of the award and implied volatility calculated for our exchange traded options with an expiration date greater than one year; • Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and • Forfeitures are based substantially on the history of cancellations of similar awards granted in prior years. |
Earnings Per Share of Common Stock | Earnings Per Share of Common Stock Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share primarily reflects the dilutive impact of outstanding stock options, mandatory convertible preferred stock and related dividends. All earnings per share amounts in these notes to the consolidated financial statements are diluted, unless otherwise noted. Refer to Note 7 . |
Fair Value Measurements | Fair Value Measurements Valuation Hierarchy Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Valuation methodologies used for assets and liabilities measured at fair value are as follows: Investments Where quoted prices are available in an active market, investments are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics or inputs other than quoted prices that are observable for the security, and would be classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities would be classified within Level 3 of the valuation hierarchy. Derivative Financial Instruments Exchange-traded derivative financial instruments that are valued using quoted prices would be classified within Level 1 of the valuation hierarchy. Derivative financial instruments valued using internally-developed models that use as their basis readily observable market parameters are classified within Level 2 of the valuation hierarchy. Derivative financial instruments that are valued based upon models with significant unobservable market parameters, and that are normally traded less actively, would be classified within Level 3 of the valuation hierarchy. Refer to Notes 15 and 16 . |
Reclassifications | Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Costs Associated with Rationa36
Costs Associated with Rationalization Programs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Liability Balance Roll-forward | The following table presents the roll-forward of the liability balance between periods: (In millions) Associate-related Costs Other Costs Total Balance at December 31, 2012 $ 229 $ 23 $ 252 2013 charges 58 17 75 Incurred, Net of Foreign Currency Translation of $7 million and $0 million, respectively (42 ) (31 ) (73 ) Reversed to the Statement of Operations (13 ) (4 ) (17 ) Balance at December 31, 2013 $ 232 $ 5 $ 237 2014 charges (1) 76 52 128 Incurred, Net of Foreign Currency Translation of $(18) million and $0 million, respectively (2) (186 ) (49 ) (235 ) Reversed to the Statement of Operations (5 ) (6 ) (11 ) Balance at December 31, 2014 $ 117 $ 2 $ 119 2015 charges (1) 86 30 116 Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively (2) (106 ) (25 ) (131 ) Reversed to the Statement of Operations (1 ) — (1 ) Balance at December 31, 2015 $ 96 $ 7 $ 103 (1) Charges in 2015 of $116 million exclude $1 million , and charges in 2014 of $128 million exclude $22 million , of pension curtailment gains recorded in Rationalizations in the Statement of Operations. (2) Incurred in 2015 of $131 million excludes $25 million , and incurred in 2014 of $235 million excludes $20 million , of rationalization payments for labor claims relating to a previously closed facility in Greece. |
Schedule of Net Rationalization Charges Included in Income Before Income Taxes. | The net rationalization charges included in Income before Income Taxes are as follows: (In millions) 2015 2014 2013 Current Year Plans Associate Severance and Other Related Costs $ 66 $ 22 $ 42 Other Exit and Non-Cancelable Lease Costs 7 1 3 Current Year Plans - Net Charges $ 73 $ 23 $ 45 Prior Year Plans Associate Severance and Other Related Costs $ 19 $ 49 $ 3 Pension Curtailment Gain (1 ) (22 ) — Other Exit and Non-Cancelable Lease Costs 23 45 10 Prior Year Plans - Net Charges 41 72 13 Total Net Charges $ 114 $ 95 $ 58 Asset Write-off and Accelerated Depreciation Charges $ 8 $ 7 $ 23 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Interest Expense | Interest expense includes interest and amortization of debt discounts, less amounts capitalized, as follows: (In millions) 2015 2014 2013 Interest expense before capitalization $ 431 $ 452 $ 431 Capitalized interest (19 ) (24 ) (39 ) $ 412 $ 428 $ 392 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income and Expense | (In millions) 2015 2014 2013 Royalty income $ (192 ) $ (35 ) $ (51 ) Financing fees and financial instruments 111 77 64 Net foreign currency exchange losses 77 239 118 Net gains on asset sales (71 ) (3 ) (8 ) General and product liability — discontinued products (gains) losses (25 ) 25 15 Interest income (22 ) (28 ) (41 ) Miscellaneous 7 27 — $ (115 ) $ 302 $ 97 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Taxes | The components of Income before Income Taxes follow: (In millions) 2015 2014 2013 U.S. $ 284 $ 400 $ 396 Foreign 324 287 417 $ 608 $ 687 $ 813 |
Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax (Benefit) Expense | A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax (Benefit) Expense follows: (In millions) 2015 2014 2013 U.S. Federal income tax expense (benefit) at the statutory rate of 35% $ 213 $ 240 $ 284 Deconsolidation of Venezuelan subsidiary 157 — — U.S. credits (R&D, foreign tax credits) and benefits offset to OCI (72 ) — — Adjustment for foreign income taxed at different rates (39 ) (37 ) (2 ) Net foreign losses (income) with no tax benefit due to valuation allowances (19 ) 49 42 Net (resolution) establishment of uncertain tax positions (13 ) 3 10 State income taxes, net of U.S. Federal benefit 10 12 — Release of U.S. valuation allowance (8 ) (2,318 ) — Net establishment (release) of foreign valuation allowances 4 51 (8 ) Deferred tax impact of enacted tax rate and law changes (2 ) 33 (13 ) Provision for undistributed foreign earnings — 131 — U.S. (income) with no tax due to valuation allowance — — (136 ) Poland special enterprise zone tax credit — — (42 ) Other 1 2 3 United States and Foreign Tax (Benefit) Expense $ 232 $ (1,834 ) $ 138 |
Schedule of Components of United States and Foreign Tax (Benefit) Expense | The components of United States and Foreign Tax (Benefit) Expense by taxing jurisdiction, follow: (In millions) 2015 2014 2013 Current: Federal $ — $ — $ (6 ) Foreign 154 135 176 State (1 ) 1 2 153 136 172 Deferred: Federal 74 (2,103 ) 2 Foreign 5 84 (36 ) State — 49 — 79 (1,970 ) (34 ) United States and Foreign Tax (Benefit) Expense $ 232 $ (1,834 ) $ 138 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2015 2014 Tax loss carryforwards and credits $ 1,415 $ 1,550 Capitalized research and development expenditures 655 622 Accrued expenses deductible as paid 501 583 Postretirement benefits and pensions 288 388 Investment and receivables related to Venezuelan deconsolidation 157 — Alternative minimum tax credit carryforwards (1) 78 85 Rationalizations and other provisions 22 49 Vacation and sick pay 37 36 Other 121 100 3,274 3,413 Valuation allowance (621 ) (632 ) Total deferred tax assets 2,653 2,781 Property basis differences (459 ) (448 ) Tax on undistributed earnings of subsidiaries (144 ) (170 ) Total net deferred tax assets $ 2,050 $ 2,163 (1) Unlimited carryforward period. |
Reconciliation of Unrecognized Tax Benefits | Reconciliation of Unrecognized Tax Benefits (In millions) 2015 2014 2013 Balance at January 1 $ 81 $ 88 $ 82 Increases related to prior year tax positions 10 15 27 Decreases related to prior year tax positions (10 ) (12 ) (6 ) Settlements (14 ) (6 ) (9 ) Foreign currency impact (15 ) (4 ) (6 ) Increases related to current year tax positions 2 — 1 Lapse of statute of limitations — — (1 ) Balance at December 31 $ 54 $ 81 $ 88 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Common Share | Basic and diluted earnings per common share are calculated as follows: (In millions, except per share amounts) 2015 2014 2013 Earnings per share — basic: Goodyear net income $ 307 $ 2,452 $ 629 Less: Preferred stock dividends — 7 29 Goodyear net income available to common shareholders $ 307 $ 2,445 $ 600 Weighted average shares outstanding 269 268 246 Earnings per common share — basic $ 1.14 $ 9.13 $ 2.44 Earnings per share — diluted: Goodyear net income $ 307 $ 2,452 $ 629 Less: Preferred stock dividends — — — Goodyear net income available to common shareholders $ 307 $ 2,452 $ 629 Weighted average shares outstanding 269 268 246 Dilutive effect of mandatory convertible preferred stock — 7 28 Dilutive effect of stock options and other dilutive securities 4 4 3 Weighted average shares outstanding — diluted 273 279 277 Earnings per common share — diluted $ 1.12 $ 8.78 $ 2.28 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income before Income Taxes: (In millions) 2015 2014 2013 Sales North America $ 7,774 $ 8,085 $ 8,684 Europe, Middle East and Africa 5,115 6,180 6,567 Asia Pacific 1,958 2,077 2,226 Latin America 1,596 1,796 2,063 Net Sales $ 16,443 $ 18,138 $ 19,540 Segment Operating Income North America $ 1,108 $ 803 $ 691 Europe, Middle East and Africa 435 438 298 Asia Pacific 319 301 308 Latin America 160 170 283 Total Segment Operating Income 2,022 1,712 1,580 Less: Rationalizations 114 95 58 Interest expense 412 428 392 Other (income) expense (1) (115 ) 302 97 Asset write-offs and accelerated depreciation 8 7 23 Corporate incentive compensation plans 103 97 108 Corporate pension curtailments/settlements (2) 137 33 — Intercompany profit elimination 3 (4 ) (4 ) Loss on deconsolidation of Venezuelan subsidiary 646 — — — — Retained expenses of divested operations 14 16 24 Other (3) 92 51 69 Income before Income Taxes $ 608 $ 687 $ 813 (1) Refer to Note 4. (2) Substantially all of the pension settlement charges of $137 million for the year ended December 31, 2015 and pension curtailment charges of $33 million for the year ended December 31, 2014 noted above related to our North America SBU; however, such costs were not included in North America segment operating income for purposes of management's assessment of SBU operating performance. (3) Primarily represents unallocated corporate costs including, in 2015, certain costs for one-time strategic global initiatives. Also includes the elimination of $25 million , $24 million and $39 million for the years ended December 31, 2015, 2014 and 2013, respectively, of royalty income attributable to the strategic business units. |
Schedule of Segment Reporting Information, by Segment | The following table presents segment assets at December 31: (In millions) 2015 2014 2013 Assets North America $ 4,808 $ 4,929 $ 4,977 Europe, Middle East and Africa 4,383 4,957 5,532 Asia Pacific 2,559 2,594 2,613 Latin America (1) 1,469 2,090 2,384 Total Segment Assets 13,219 14,570 15,506 Corporate (2) 3,220 3,474 1,931 $ 16,439 $ 18,044 $ 17,437 (1) Decrease in Latin America segment assets at December 31, 2015 was due primarily to the deconsolidation of our Venezuelan subsidiary on December 31, 2015. Refer to Note 1. (2) Corporate includes substantially all of our U.S. net deferred tax assets. Corporate assets increased in 2014 by $2,080 million due primarily to the release of substantially all of the valuation allowance on our net U.S. deferred tax assets. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets only China and Germany were considered to be significant. (In millions) 2015 2014 2013 Net Sales United States $ 7,338 $ 7,558 $ 7,820 Germany 1,905 2,288 2,372 Other international 7,200 8,292 9,348 $ 16,443 $ 18,138 $ 19,540 Long-Lived Assets United States $ 2,468 $ 2,464 $ 2,389 China 766 809 821 Germany 778 833 891 Other international 2,765 3,047 3,219 $ 6,777 $ 7,153 $ 7,320 |
Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs | Rationalizations, as described in Note 2, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 4, Other (Income) Expense, and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2015 2014 2013 Rationalizations North America $ 9 $ (6 ) $ 12 Europe, Middle East and Africa 95 89 26 Asia Pacific 4 9 16 Latin America 6 3 4 Total Segment Rationalizations $ 114 $ 95 $ 58 (In millions) 2015 2014 2013 Net (Gains) Losses on Asset Sales North America $ (1 ) $ (8 ) $ (4 ) Europe, Middle East and Africa 14 7 (1 ) Asia Pacific (5 ) — (2 ) Latin America (1 ) — (1 ) Total Segment Asset Sales 7 (1 ) (8 ) Corporate (1) (78 ) (2 ) — $ (71 ) $ (3 ) $ (8 ) (1) Corporate gain on asset sales in 2015 included a $48 million gain on the dissolution of our global alliance with SRI and a $30 million gain on the sale of our investment in shares of SRI. Refer to Note 5. (In millions) 2015 2014 2013 Asset Write-offs and Accelerated Depreciation Europe, Middle East and Africa $ 8 $ 7 $ 23 Total Segment Asset Write-offs and Accelerated Depreciation $ 8 $ 7 $ 23 |
Segment Capital Expenditures Depreciation and Amortization | The following tables present segment capital expenditures, depreciation and amortization: (In millions) 2015 2014 2013 Capital Expenditures North America $ 353 $ 282 $ 262 Europe, Middle East and Africa 223 266 332 Asia Pacific 124 154 257 Latin America 125 152 243 Total Segment Capital Expenditures 825 854 1,094 Corporate (1) 158 69 74 $ 983 $ 923 $ 1,168 (1) Corporate capital expenditures in 2015 include approximately $140 million related to the construction of our new manufacturing facility in San Luis Potosi, Mexico. (In millions) 2015 2014 2013 Depreciation and Amortization North America $ 270 $ 274 $ 275 Europe, Middle East and Africa 186 220 228 Asia Pacific 114 105 93 Latin America 94 102 84 Total Segment Depreciation and Amortization 664 701 680 Corporate 34 31 42 $ 698 $ 732 $ 722 |
Segment Equity In Net Income of Investees Accounted For By Equity Method | The following table presents segment equity in the net income of investees accounted for by the equity method: (In millions) 2015 2014 2013 Equity in (Income) North America $ (3 ) $ (5 ) $ (8 ) Europe, Middle East and Africa (1 ) — — Asia Pacific (1) (12 ) (23 ) (23 ) Total Segment Equity in (Income) $ (16 ) $ (28 ) $ (31 ) (1) Substantially all of the Asia Pacific segment equity in income related to 25% interests in NGY and DGT which ceased to be recognized effective October 1, 2015 following the dissolution of the global alliance with SRI. Refer to Note 5. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | (In millions) 2015 2014 Accounts receivable $ 2,138 $ 2,215 Allowance for doubtful accounts (105 ) (89 ) $ 2,033 $ 2,126 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (In millions) 2015 2014 Raw materials $ 419 $ 535 Work in process 138 149 Finished goods 1,907 1,987 $ 2,464 $ 2,671 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reporting Unit | The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2015 : (In millions) Balance at December 31, 2014 Acquisitions Divestitures Translation Balance at December 31, 2015 North America $ 93 $ — $ (2 ) $ — $ 91 Europe, Middle East and Africa 448 — (2 ) (45 ) 401 Asia Pacific 60 6 — (3 ) 63 $ 601 $ 6 $ (4 ) $ (48 ) $ 555 The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2014 : (In millions) Balance at December 31, 2013 Acquisitions Divestitures Translation Balance at December 31, 2014 North America $ 93 $ — $ — $ — $ 93 Europe, Middle East and Africa 511 — — (63 ) 448 Asia Pacific 64 — — (4 ) 60 $ 668 $ — $ — $ (67 ) $ 601 |
Schedule of Intangible Assets | The following table presents information about intangible assets: 2015 2014 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 128 $ (6 ) $ 122 $ 127 $ (6 ) $ 121 Trademarks and patents 12 (8 ) 4 15 (10 ) 5 Other intangible assets 21 (9 ) 12 21 (9 ) 12 $ 161 $ (23 ) $ 138 $ 163 $ (25 ) $ 138 (1) Includes impact of foreign currency translation. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2015 2014 (In millions) Owned Capital Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 387 $ — $ 387 $ 413 $ — $ 413 Buildings 2,230 32 2,262 2,375 36 2,411 Machinery and equipment 11,719 68 11,787 12,322 70 12,392 Construction in progress 783 — 783 733 — 733 15,119 100 15,219 15,843 106 15,949 Accumulated depreciation (8,605 ) (32 ) (8,637 ) (9,002 ) (27 ) (9,029 ) 6,514 68 6,582 6,841 79 6,920 Spare parts 195 — 195 233 — 233 $ 6,709 $ 68 $ 6,777 $ 7,074 $ 79 $ 7,153 |
Leased Assets (Tables)
Leased Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Rental Expense | Net rental expense comprised the following: (In millions) 2015 2014 2013 Gross rental expense $ 324 $ 387 $ 400 Sublease rental income (33 ) (40 ) (43 ) $ 291 $ 347 $ 357 |
Schedule of Minimum Future Lease Payments | The following table presents minimum future lease payments: 2021 and (In millions) 2016 2017 2018 2019 2020 Beyond Total Capital Leases Minimum lease payments $ 12 $ 11 $ 8 $ 5 $ 3 $ 41 $ 80 Imputed interest (4 ) (3 ) (3 ) (3 ) (2 ) (17 ) (32 ) Present value $ 8 $ 8 $ 5 $ 2 $ 1 $ 24 $ 48 Operating Leases Minimum lease payments $ 279 $ 215 $ 158 $ 118 $ 94 $ 299 $ 1,163 Minimum sublease rentals (26 ) (17 ) (10 ) (6 ) (3 ) (7 ) (69 ) $ 253 $ 198 $ 148 $ 112 $ 91 $ 292 $ 1,094 Imputed interest (208 ) Present value $ 886 |
Financing Arrangements and De47
Financing Arrangements and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Schedule of Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year | The following table presents amounts due within one year: December 31, December 31, (In millions) 2015 2014 Notes payable and overdrafts: $ 49 $ 30 Weighted average interest rate 9.42 % 10.63 % Long term debt and capital leases due within one year: Other domestic and foreign debt (including capital leases) (1) $ 587 $ 148 Weighted average interest rate 6.68 % 7.75 % Total obligations due within one year $ 636 $ 178 (1) The increase in long term debt and capital leases due within one year was due primarily to the €250 million 6.75% senior notes due 2019 being classified as current at December 31, 2015 in connection with the irrevocable call for their redemption in January 2016. |
Schedule of Long Term Debt and Capital Leases, Net of Unamortized Discounts, and Interest Rates | The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: December 31, 2015 December 31, 2014 Interest Interest (In millions) Amount Rate Amount Rate Notes: 6.75% Euro Notes due 2019 $ 272 $ 303 8.25% due 2020 — 996 8.75% due 2020 271 269 6.5% due 2021 900 900 7% due 2022 700 700 5.125% due 2023 1,000 — 3.75% Euro Notes due 2023 272 — 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2017 — — — — $1.2 billion second lien term loan facility due 2019 598 3.75 % 1,196 4.75 % €550 million revolving credit facility due 2020 — — — — Pan-European accounts receivable facility 125 1.35 % 343 1.54 % Chinese credit facilities 465 5.22 % 535 5.65 % Other foreign and domestic debt (1) 906 9.42 % 913 8.70 % 5,659 6,305 Capital lease obligations 48 59 5,707 6,364 Less portion due within one year (587 ) (148 ) $ 5,120 $ 6,216 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and North America Headquarters. |
Schedule of Maturities of Long-term Debt and Capital Leases | The annual aggregate maturities of our debt and capital leases for the five years subsequent to December 31, 2015 are presented below. Maturities of debt credit agreements have been reported on the basis that the commitments to lend under these agreements will be terminated effective at the end of their current terms. (In millions) 2016 2017 2018 2019 2020 U.S. $ 6 $ 5 $ 59 $ 599 $ 271 Foreign 630 425 225 270 54 $ 636 $ 430 $ 284 $ 869 $ 325 |
Schedule of Fair Values for Foreign Currency Contracts not Designated as Hedging Instruments | The following table presents fair values for foreign currency contracts not designated as hedging instruments: December 31, December 31, (In millions) 2015 2014 Fair Values — asset (liability): Accounts receivable $ 10 $ 20 Other current liabilities (10 ) (4 ) |
Schedule of Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedges | The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: December 31, December 31, (In millions) 2015 2014 Fair Values — asset (liability): Accounts receivable $ 5 $ 10 Other current liabilities (1 ) — |
Schedule of the Classification of Changes in Fair Values of Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) (Income) Expense 2015 2014 Amounts deferred to AOCL $ (20 ) $ (17 ) Amount of deferred loss (gain) reclassified from AOCL into CGS (28 ) — Amounts excluded from effectiveness testing 1 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Sheet at December 31, 2015 and December 31, 2014 : 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) 2015 2014 2015 2014 2015 2014 2015 2014 Assets: Investments $ 7 $ 56 $ 7 $ 56 $ — $ — $ — $ — Foreign Exchange Contracts 15 30 — — 15 30 — — Total Assets at Fair Value $ 22 $ 86 $ 7 $ 56 $ 15 $ 30 $ — $ — Liabilities: Foreign Exchange Contracts $ 11 $ 4 $ — $ — $ 11 $ 4 $ — $ — Total Liabilities at Fair Value $ 11 $ 4 $ — $ — $ 11 $ 4 $ — $ — |
Fair Value of Long-term Fixed Rate and Variable Rate Debt Excluding Capital Leases | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at December 31, 2015 and December 31, 2014. Long term debt with a fair value of $4,337 million and $4,603 million at December 31, 2015 and December 31, 2014, respectively, was estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions . December 31, December 31, (In millions) 2015 2014 Fixed Rate Debt: Carrying amount — liability $ 3,890 $ 3,680 Fair value — liability 4,065 3,773 Variable Rate Debt: Carrying amount — liability $ 1,769 $ 2,625 Fair value — liability 1,767 2,622 |
Pension, Other Postretirement49
Pension, Other Postretirement Benefits and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss | Total benefits cost and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Benefits cost: Service cost $ 4 $ 15 $ 45 $ 43 $ 34 $ 39 $ 3 $ 4 $ 6 Interest cost 238 256 243 113 131 131 15 19 19 Expected return on plan assets (295 ) (311 ) (335 ) (107 ) (118 ) (111 ) — (1 ) (1 ) Amortization of prior service cost (credit) — 1 17 1 1 1 (45 ) (45 ) (45 ) Amortization of net losses 106 114 205 32 35 50 7 8 12 Net periodic cost 53 75 175 82 83 110 (20 ) (15 ) (9 ) Curtailments/settlements 137 32 — 2 (13 ) 4 — — — Total benefits cost $ 190 $ 107 $ 175 $ 84 $ 70 $ 114 $ (20 ) $ (15 ) $ (9 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service (credit) cost from plan amendments $ — $ (1 ) $ (30 ) $ — $ 1 $ (1 ) $ — $ — $ — Increase (decrease) in net actuarial losses 150 292 (374 ) (45 ) (78 ) (128 ) (19 ) 3 (51 ) Amortization of prior service (cost) credit in net periodic cost — (1 ) (17 ) (1 ) (1 ) (1 ) 45 45 47 Amortization of net losses in net periodic cost (106 ) (114 ) (205 ) (34 ) (36 ) (53 ) (7 ) (8 ) (13 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures (386 ) (32 ) — (5 ) (16 ) (3 ) 4 — — Deconsolidation of Venezuelan subsidiary (Note 1) — — — (62 ) — — — — — Total recognized in other comprehensive loss (income) before tax and minority (342 ) 144 (626 ) (147 ) (130 ) (186 ) 23 40 (17 ) Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority $ (152 ) $ 251 $ (451 ) $ (63 ) $ (60 ) $ (72 ) $ 3 $ 25 $ (26 ) |
Schedule of Changes in Benefit Obligation and Plan Assets | The change in benefit obligation and plan assets for 2015 and 2014 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2015 and 2014 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Change in benefit obligation: Beginning balance $ (6,507 ) $ (5,981 ) $ (3,178 ) $ (3,129 ) $ (361 ) (388 ) Newly adopted plans — — (9 ) (3 ) — — Service cost — benefits earned (4 ) (15 ) (43 ) (34 ) (3 ) (4 ) Interest cost (238 ) (256 ) (113 ) (131 ) (15 ) (19 ) Plan amendments — 1 — (2 ) — — Actuarial gain (loss) 262 (693 ) (5 ) (394 ) 22 — Participant contributions — — (2 ) (2 ) (15 ) (16 ) Curtailments/settlements 285 1 19 69 — — Divestitures 500 — — — 6 — Deconsolidation of Venezuelan subsidiary (Note 1) — — 80 — — — Foreign currency translation — — 303 284 35 17 Benefit payments 364 436 140 164 40 49 Ending balance $ (5,338 ) $ (6,507 ) $ (2,808 ) $ (3,178 ) $ (291 ) $ (361 ) Change in plan assets: Beginning balance $ 6,250 $ 4,800 $ 2,721 $ 2,455 $ 5 $ 5 Newly adopted plans — — 9 — — — Actual return on plan assets (117 ) 711 60 505 — — Company contributions to plan assets — 1,167 60 118 2 2 Cash funding of direct participant payments 7 9 36 44 23 31 Participant contributions — — 2 2 15 16 Settlements (285 ) (1 ) (18 ) (39 ) — — Divestitures (480 ) — — — — — Foreign currency translation — — (237 ) (200 ) (2 ) — Benefit payments (364 ) (436 ) (140 ) (164 ) (40 ) (49 ) Ending balance $ 5,011 $ 6,250 $ 2,493 $ 2,721 $ 3 $ 5 Funded status at end of year $ (327 ) $ (257 ) $ (315 ) $ (457 ) $ (288 ) $ (356 ) |
Schedule of the Funded Status Recognized in the Balance Sheet | The funded status recognized in the Consolidated Balance Sheets consists of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Noncurrent assets $ — $ 9 $ 249 $ 274 $ — $ — Current liabilities (12 ) (10 ) (19 ) (24 ) (23 ) (28 ) Noncurrent liabilities (315 ) (256 ) (545 ) (707 ) (265 ) (328 ) Net amount recognized $ (327 ) $ (257 ) $ (315 ) $ (457 ) $ (288 ) $ (356 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | The amounts recognized in AOCL, net of tax, consist of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2015 2014 2015 2014 2015 2014 Prior service (credit) cost $ (4 ) $ (4 ) $ 2 $ 4 $ (104 ) $ (152 ) Net actuarial loss 2,643 2,985 693 838 74 99 Gross amount recognized 2,639 2,981 695 842 (30 ) (53 ) Deferred income taxes (128 ) (177 ) (96 ) (137 ) (9 ) (1 ) Minority shareholders’ equity — (62 ) — (109 ) — 1 Net amount recognized $ 2,511 $ 2,742 $ 599 $ 596 $ (39 ) $ (53 ) |
Schedule of Weighted Average Assumptions Used | The following table presents significant weighted average assumptions used to determine benefit obligations at December 31: Pension Plans Other Postretirement Benefits 2015 2014 2015 2014 Discount rate: — U.S. 4.20 % 3.89 % 3.86 % 3.59 % — Non-U.S. 3.47 3.31 5.30 4.89 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 2.63 2.88 N/A N/A The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31: Pension Plans Other Postretirement Benefits 2015 2014 2013 2015 2014 2013 Discount rate: — U.S. 3.89 % 4.40 % 3.77 % 3.59 % 4.06 % 3.30 % — Non-U.S. 3.31 4.36 4.12 4.89 6.62 5.64 Expected long term return on plan assets: — U.S. 5.00 5.47 7.16 N/A N/A N/A — Non-U.S. 4.12 5.12 5.01 N/A N/A N/A Rate of compensation increase: — U.S. N/A N/A N/A N/A N/A N/A — Non-U.S. 2.88 3.11 3.23 N/A N/A N/A |
Schedule of Estimated Future Benefit Payments | The following table presents estimated future benefit payments from the plans as of December 31, 2015 . Benefit payments for other postretirement benefits are presented net of retiree contributions: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. Without Medicare Part D Subsidy Medicare Part D Subsidy Receipts 2016 $ 421 $ 134 $ 25 $ 1 2017 405 128 25 1 2018 394 131 24 1 2019 384 135 23 1 2020 376 138 22 1 2021-2025 1,767 742 103 5 |
Schedule of Selected Pension Plan Information | The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2015 2014 2015 2014 All plans: Accumulated benefit obligation $ 5,329 $ 6,495 $ 2,722 $ 3,040 Plans not fully-funded: Projected benefit obligation $ 5,336 $ 5,087 $ 876 $ 1,112 Accumulated benefit obligation 5,327 5,076 811 994 Fair value of plan assets 5,009 4,822 316 384 |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31 follow: 2015 2014 Health care cost trend rate assumed for the next year 6.5 % 7.0 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 5.0 Year that the rate reaches the ultimate trend rate 2022 2022 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2015 and the aggregate service and interest cost for the year then ended as follows: (In millions) 1% Increase 1% Decrease Accumulated other postretirement benefits obligation $ 15 $ (13 ) Aggregate service and interest cost 1 (1 ) |
Schedule of Pension Plan Weighted Average Investment Allocation | Our pension plan weighted average investment allocation at December 31, by asset category, follows: U.S. Non-U.S. 2015 2014 2015 2014 Cash and short term securities 5 % 4 % 1 % 1 % Equity securities 6 6 12 15 Debt securities 89 90 74 73 Alternatives — — 13 11 Total 100 % 100 % 100 % 100 % |
Schedule of Fair Values of Pension Plan Assets | The fair values of our pension plan assets at December 31, 2014 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 229 $ 218 $ 11 $ — $ 32 $ 27 $ 5 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds 12 — 12 — 328 19 309 — Mutual Funds — — — — 70 7 63 — Partnership Interests 362 — 133 229 — — — — Debt Securities Corporate Bonds 2,678 — 2,678 — 179 17 162 — Government Bonds 1,401 — 1,401 — 616 57 559 — Asset Backed Securities 123 — 123 — 4 2 2 — Commingled Funds 960 — 960 — 1,204 — 1,204 — Mutual Funds 468 — 468 — 28 23 5 — Alternatives Commingled Funds — — — — 129 — 7 122 Real Estate — — — — 136 — 2 134 Other Investments 2 — — 2 24 3 — 21 Total Investments 6,235 $ 218 $ 5,786 $ 231 2,769 $ 174 $ 2,318 $ 277 Other 15 (48 ) Total Plan Assets $ 6,250 $ 2,721 The fair values of our pension plan assets at December 31, 2015 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 240 $ 237 $ 3 $ — $ 30 $ 28 $ 2 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds 6 — 6 — 231 17 214 — Mutual Funds — — — — 61 3 58 — Partnership Interests 295 — 75 220 — — — — Debt Securities Corporate Bonds 2,413 — 2,413 — 151 14 137 — Government Bonds 1,091 — 1,091 — 2,097 67 2,030 — Repurchase Agreements — — — — (719 ) — (719 ) — Asset Backed Securities 158 — 158 — 11 2 2 7 Commingled Funds 714 — 714 — 342 — 342 — Mutual Funds 86 — 86 — 8 3 5 — Alternatives Commingled Funds — — — — 125 — 6 119 Real Estate — — — — 143 — 2 141 Other Investments — — (2 ) 2 68 1 6 61 Total Investments 5,003 $ 237 $ 4,544 $ 222 2,567 $ 154 $ 2,085 $ 328 Other 8 (74 ) Total Plan Assets $ 5,011 $ 2,493 |
Schedule of Changes in Fair Value of Plan Assets | The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2015 : U.S. Non-U.S. (In millions) Partnership Interests Other Commingled Funds Real Estate Asset Backed Securities Other Balance, beginning of year $ 229 $ 2 $ 122 $ 134 $ — $ 21 Realized gains (losses) 21 — — — — — Unrealized (losses) gains relating to instruments still held at the reporting date (12 ) — 2 12 — — Purchases, sales, issuances and settlements (net) (18 ) — 1 2 7 44 Foreign currency translation — — (6 ) (7 ) — (4 ) Balance, end of year $ 220 $ 2 $ 119 $ 141 $ 7 $ 61 The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2014 : U.S. Non-U.S. (In millions) Partnership Interests Other Commingled Funds Real Estate Other Balance, beginning of year $ 209 $ 6 $ 163 $ 170 $ 19 Realized gains (losses) 31 — 1 1 — Unrealized (losses) gains relating to instruments still held at the reporting date (15 ) — 7 18 — Purchases, sales, issuances and settlements (net) 4 (4 ) (42 ) (47 ) 5 Foreign currency translation — — (7 ) (8 ) (3 ) Balance, end of year $ 229 $ 2 $ 122 $ 134 $ 21 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activity related to options during 2015 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 10,350,633 $ 16.75 Options granted 802,871 27.32 Options exercised (3,028,112 ) 18.35 $ 40 Options expired (52,687 ) 17.15 Options cancelled (290,009 ) 18.67 Outstanding at December 31 7,782,696 17.15 5.8 121 Vested and expected to vest at December 31 7,493,529 17.03 5.7 119 Exercisable at December 31 5,153,908 15.55 4.7 89 Available for grant at December 31 8,645,222 |
Schedule of Significant Options Groups | Significant option groups outstanding at December 31, 2015 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/23/2015 719,164 — $ 27.16 9.2 2/24/2014 502,513 111,397 26.44 8.2 2/28/2013 1,512,308 695,216 12.98 7.2 2/27/2012 1,139,048 805,963 12.94 6.2 2/22/2011 729,512 729,512 13.91 5.2 2/23/2010 547,334 547,334 12.74 4.2 2/26/2009 489,562 489,562 4.81 3.2 2/21/2008 486,390 486,390 26.74 2.2 2/27/2007 477,584 477,584 24.71 1.2 All other 1,179,281 810,950 (1 ) (1 ) 7,782,696 5,153,908 (1) Options in the “All other” category had exercise prices ranging from $6.22 to $36.25 . The weighted average exercise price for options outstanding and exercisable in that category was $18.65 and $16.63 , respectively, while the remaining weighted average contractual term was 6.1 and 5.0 , respectively. |
Schedule of Stock Options Weighted Average Grant Date Fair Values and Assumptions Used | Weighted average grant date fair values of stock options and the assumptions used in estimating those fair values are as follows: 2015 2014 2013 Weighted average grant date fair value $ 11.51 $ 11.48 $ 6.28 Black-Scholes model assumptions (1) : Expected term (years) 7.30 7.40 6.25 Interest rate 1.83 % 2.10 % 1.11 % Volatility 42.00 % 43.45 % 46.66 % Dividend yield 0.88 % 0.81 % — (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. |
Schedule of Stock-based Compensation Expense and Cash Activity | Stock-based compensation expense, cash payments made to settle SARs and cash received from the exercise of stock options follows: (In millions) 2015 2014 2013 Stock-based compensation expense recognized $ 19 $ 20 $ 18 Tax benefit (7 ) (7 ) — After-tax stock-based compensation expense $ 12 $ 13 $ 18 Cash payments to settle SARs $ 2 $ 2 $ 1 Cash received from stock option exercises $ 53 $ 39 $ 22 |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of Nonvested Share Activity | The following table summarizes the activity related to performance share units during 2015 : Units Weighted Average Grant Date Fair Value Unvested at January 1 322,098 $ 20.47 Units granted 225,392 28.44 Units vested (157,989 ) 12.29 Units forfeited (71,231 ) 23.93 Unvested at December 31 318,270 28.64 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Schedule of Nonvested Share Activity | The following table summarizes the activity related to restricted stock units during 2015 : Units Weighted Average Grant Date Fair Value Unvested at January 1 482,177 $ 22.36 Units granted 330,388 28.43 Units vested and settled (87,972 ) 13.60 Units forfeited (51,500 ) 26.33 Unvested at December 31 673,093 26.16 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. (Dollars in millions) 2015 2014 2013 Pending claims, beginning of year 73,800 74,000 73,200 New claims filed during the year 1,900 1,900 2,600 Claims settled/dismissed during the year (8,300 ) (2,100 ) (1,800 ) Pending claims, end of year 67,400 73,800 74,000 Payments (1) $ 19 $ 20 $ 19 (1) Represents amount spent by us and our insurers on asbestos litigation defense and claim resolution. |
Schedule of Changes in the Warranty Reserve | The following table presents changes in the warranty reserve during 2015 and 2014 : (in millions) 2015 2014 Balance at January 1 $ 22 $ 21 Payments made during the period (37 ) (39 ) Expense recorded during the period 33 41 Translation adjustment (1 ) (1 ) Balance at December 31 $ 17 $ 22 |
Reclassifications out of Accu52
Reclassifications out of Accumulated Other Comprehensive Loss Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following table presents changes in Accumulated Other Comprehensive Loss (AOCL) by component, for the year ended December 31, 2015 and 2014: (In millions) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Unrealized Investment Gains Total Balance at December 31, 2013 $ (690 ) $ (3,278 ) $ (1 ) $ 34 $ (3,935 ) Other comprehensive income (loss) before reclassifications (206 ) (112 ) 13 2 (303 ) Amounts reclassified from accumulated other comprehensive loss 3 105 — — 108 Purchase of subsidiary shares from minority interest (1 ) — — — (1 ) Balance at December 31, 2014 $ (894 ) $ (3,285 ) $ 12 $ 36 $ (4,131 ) Other comprehensive income (loss) before reclassifications (251 ) (68 ) 15 (4 ) (308 ) Amounts reclassified from accumulated other comprehensive loss 16 325 (21 ) (32 ) 288 Purchase of subsidiary shares from minority interest (3 ) (105 ) 1 — (107 ) Deconsolidation of Venezuelan subsidiary (Note 1) 186 62 — — 248 Balance at December 31, 2015 $ (946 ) $ (3,071 ) $ 7 $ — $ (4,010 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL for the year ended December 31, 2015 and 2014: Year Ended December 31, (In millions) 2015 2014 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Foreign Currency Translation Adjustment, before tax $ 16 $ 3 Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) 186 — Loss on Deconsolidation of Venezuelan Subsidiary Tax effect — — United States and Foreign Taxes Minority interest — — Minority Shareholders' Net Income Net of tax $ 202 $ 3 Goodyear Net Income Amortization of prior service cost and unrecognized gains and losses $ 103 $ 115 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments and settlements 142 48 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to divestitures 184 — Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) 62 — Loss on Deconsolidation of Venezuelan Subsidiary Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 491 $ 163 Tax effect (101 ) (49 ) United States and Foreign Taxes Minority interest (3 ) (9 ) Minority Shareholders' Net Income Net of tax $ 387 $ 105 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ (28 ) $ — Cost of Goods Sold Tax effect 3 1 United States and Foreign Taxes Minority interest 4 (1 ) Minority Shareholders' Net Income Net of tax $ (21 ) $ — Goodyear Net Income Unrealized Investment (Gains), before tax $ (30 ) $ — Other (Income) Expense Tax effect (2 ) — United States and Foreign Taxes Minority interest — — Minority Shareholders' Net Income Net of tax $ (32 ) $ — Goodyear Net Income Total reclassifications $ 536 $ 108 Goodyear Net Income |
Consolidating Financial Infor53
Consolidating Financial Information Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 354 $ 70 $ 1,052 $ — $ 1,476 Accounts Receivable 814 136 1,083 — 2,033 Accounts Receivable From Affiliates — 609 — (609 ) — Inventories 1,199 157 1,152 (44 ) 2,464 Prepaid Expenses and Other Current Assets 51 3 111 3 168 Total Current Assets 2,418 975 3,398 (650 ) 6,141 Goodwill — 24 407 124 555 Intangible Assets 118 — 20 — 138 Deferred Income Taxes 2,049 19 73 — 2,141 Other Assets 246 81 353 7 687 Investments in Subsidiaries 4,088 383 — (4,471 ) — Property, Plant and Equipment 2,377 216 4,213 (29 ) 6,777 Total Assets $ 11,296 $ 1,698 $ 8,464 $ (5,019 ) $ 16,439 Liabilities: Current Liabilities: Accounts Payable-Trade $ 1,002 $ 189 $ 1,578 $ — $ 2,769 Accounts Payable to Affiliates 540 — 69 (609 ) — Compensation and Benefits 411 29 226 — 666 Other Current Liabilities 328 16 547 (5 ) 886 Notes Payable and Overdrafts — — 49 — 49 Long Term Debt and Capital Leases Due Within One Year 6 — 581 — 587 Total Current Liabilities 2,287 234 3,050 (614 ) 4,957 Long Term Debt and Capital Leases 3,835 — 1,285 — 5,120 Compensation and Benefits 725 97 646 — 1,468 Deferred Income Taxes — 1 92 (2 ) 91 Other Long Term Liabilities 529 15 119 (2 ) 661 Total Liabilities 7,376 347 5,192 (618 ) 12,297 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 267 — — — 267 Other Equity 3,653 1,351 3,050 (4,401 ) 3,653 Goodyear Shareholders’ Equity 3,920 1,351 3,050 (4,401 ) 3,920 Minority Shareholders’ Equity — Nonredeemable — — 222 — 222 Total Shareholders’ Equity 3,920 1,351 3,272 (4,401 ) 4,142 Total Liabilities and Shareholders’ Equity $ 11,296 $ 1,698 $ 8,464 $ (5,019 ) $ 16,439 Condensed Consolidating Balance Sheet December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 674 $ 89 $ 1,398 $ — $ 2,161 Accounts Receivable 833 166 1,127 — 2,126 Accounts Receivable From Affiliates — 623 — (623 ) — Inventories 1,151 148 1,410 (38 ) 2,671 Prepaid Expenses and Other Current Assets 39 2 160 — 201 Total Current Assets 2,697 1,028 4,095 (661 ) 7,159 Goodwill — 24 462 115 601 Intangible Assets 114 — 24 — 138 Deferred Income Taxes 2,126 31 95 1 2,253 Other Assets 234 86 411 9 740 Investments in Subsidiaries 4,054 416 — (4,470 ) — Property, Plant and Equipment 2,329 132 4,721 (29 ) 7,153 Total Assets $ 11,554 $ 1,717 $ 9,808 $ (5,035 ) $ 18,044 Liabilities: Current Liabilities: Accounts Payable-Trade $ 910 $ 191 $ 1,777 $ — $ 2,878 Accounts Payable to Affiliates 557 — 66 (623 ) — Compensation and Benefits 392 31 301 — 724 Other Current Liabilities 350 23 581 (4 ) 950 Notes Payable and Overdrafts — — 30 — 30 Long Term Debt and Capital Leases Due Within One Year 6 — 142 — 148 Total Current Liabilities 2,215 245 2,897 (627 ) 4,730 Long Term Debt and Capital Leases 4,375 — 1,841 — 6,216 Compensation and Benefits 666 127 883 — 1,676 Deferred Income Taxes — 1 91 (2 ) 90 Other Long Term Liabilities 688 35 188 (6 ) 905 Total Liabilities 7,944 408 5,900 (635 ) 13,617 Commitments and Contingent Liabilities Minority Shareholders’ Equity — — 392 190 582 Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 269 — — — 269 Other Equity 3,341 1,309 3,281 (4,590 ) 3,341 Goodyear Shareholders’ Equity 3,610 1,309 3,281 (4,590 ) 3,610 Minority Shareholders’ Equity — Nonredeemable — — 235 — 235 Total Shareholders’ Equity 3,610 1,309 3,516 (4,590 ) 3,845 Total Liabilities and Shareholders’ Equity $ 11,554 $ 1,717 $ 9,808 $ (5,035 ) $ 18,044 |
Consolidating Statement of Operations | Consolidating Statements of Operations Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,566 $ 2,129 $ 10,308 $ (3,560 ) $ 16,443 Cost of Goods Sold 5,804 1,915 8,090 (3,645 ) 12,164 Selling, Administrative and General Expense 1,053 172 1,392 (3 ) 2,614 Rationalizations 13 — 101 — 114 Interest Expense 317 22 131 (58 ) 412 Loss on Deconsolidation of Venezuelan Subsidiary 374 — 272 — 646 Other (Income) Expense (433 ) (13 ) 177 154 (115 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 438 33 145 (8 ) 608 United States and Foreign Tax Expense 104 10 112 6 232 Equity in Earnings (Loss) of Subsidiaries (27 ) 19 — 8 — Net Income (Loss) 307 42 33 (6 ) 376 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) $ 307 $ 42 $ (36 ) $ (6 ) $ 307 Comprehensive Income (Loss) $ 535 $ 54 $ 46 $ (94 ) $ 541 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 32 (26 ) 6 Goodyear Comprehensive Income (Loss) $ 535 $ 54 $ 14 $ (68 ) $ 535 Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,915 $ 2,487 $ 12,051 $ (4,315 ) $ 18,138 Cost of Goods Sold 6,457 2,237 9,622 (4,410 ) 13,906 Selling, Administrative and General Expense 916 166 1,645 (7 ) 2,720 Rationalizations (6 ) — 101 — 95 Interest Expense 332 26 133 (63 ) 428 Other (Income) Expense (91 ) (11 ) 228 176 302 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 69 322 (11 ) 687 United States and Foreign Tax (Benefit) Expense (2,026 ) 14 174 4 (1,834 ) Equity in Earnings of Subsidiaries 119 28 — (147 ) — Net Income (Loss) 2,452 83 148 (162 ) 2,521 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 2,452 83 79 (162 ) 2,452 Less: Preferred Stock Dividends 7 — — — 7 Goodyear Net Income (Loss) available to Common Shareholders $ 2,445 $ 83 $ 79 $ (162 ) $ 2,445 Comprehensive Income (Loss) $ 2,257 $ 89 $ (11 ) $ (58 ) $ 2,277 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 46 (26 ) 20 Goodyear Comprehensive Income (Loss) $ 2,257 $ 89 $ (57 ) $ (32 ) $ 2,257 Consolidating Statements of Operations Year Ended December 31, 2013 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 8,324 $ 2,690 $ 12,721 $ (4,195 ) $ 19,540 Cost of Goods Sold 7,001 2,415 10,399 (4,393 ) 15,422 Selling, Administrative and General Expense 946 171 1,658 (17 ) 2,758 Rationalizations 6 3 49 — 58 Interest Expense 315 29 114 (66 ) 392 Other (Income) Expense (251 ) 5 83 260 97 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 67 418 21 813 United States and Foreign Tax (Benefit) Expense 22 43 88 (15 ) 138 Equity in Earnings of Subsidiaries 344 5 — (349 ) — Net Income (Loss) 629 29 330 (313 ) 675 Less: Minority Shareholders’ Net Income — — 46 — 46 Goodyear Net Income (Loss) 629 29 284 (313 ) 629 Less: Preferred Stock Dividends 29 — — — 29 Goodyear Net Income (Loss) available to Common Shareholders $ 600 $ 29 $ 284 $ (313 ) $ 600 Comprehensive Income (Loss) $ 1,242 $ 107 $ 353 $ (382 ) $ 1,320 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 69 9 78 Goodyear Comprehensive Income (Loss) $ 1,242 $ 107 $ 284 $ (391 ) $ 1,242 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 979 $ 149 $ 612 $ (53 ) $ 1,687 Cash Flows from Investing Activities: Capital Expenditures (315 ) (119 ) (558 ) 9 (983 ) Asset Dispositions 48 — 14 — 62 Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary — — (320 ) — (320 ) Decrease (Increase) in Restricted Cash — — (6 ) — (6 ) Short Term Securities Acquired — — (77 ) — (77 ) Short Term Securities Redeemed — — 69 — 69 Capital Contributions Received and Loans Incurred (70 ) — (90 ) 160 — Capital Redemptions and Loans Paid 122 — 125 (247 ) — Other Transactions — — (7 ) — (7 ) Total Cash Flows from Investing Activities (215 ) (119 ) (850 ) (78 ) (1,262 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 55 — 118 (70 ) 103 Short Term Debt and Overdrafts Paid (15 ) (16 ) (123 ) 70 (84 ) Long Term Debt Incurred 1,736 — 1,083 — 2,819 Long Term Debt Paid (2,341 ) — (974 ) — (3,315 ) Common Stock Issued 53 — — — 53 Common Stock Repurchased (180 ) — — — (180 ) Common Stock Dividends Paid (68 ) — — — (68 ) Capital Contributions Received and Loans Incurred 90 12 58 (160 ) — Capital Redemptions and Loans Paid (125 ) (15 ) (107 ) 247 — Intercompany Dividends Paid — (17 ) (27 ) 44 — Transactions with Minority Interests in Subsidiaries — — (9 ) — (9 ) Debt Related Costs and Other Transactions (18 ) — (15 ) — (33 ) Dissolution of Global Alliance (271 ) — — — (271 ) Total Cash Flows from Financing Activities (1,084 ) (36 ) 4 131 (985 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (13 ) (112 ) — (125 ) Net Change in Cash and Cash Equivalents (320 ) (19 ) (346 ) — (685 ) Cash and Cash Equivalents at Beginning of the Year 674 89 1,398 — 2,161 Cash and Cash Equivalents at End of the Year $ 354 $ 70 $ 1,052 $ — $ 1,476 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ (334 ) $ 195 $ 758 $ (279 ) $ 340 Cash Flows from Investing Activities: Capital Expenditures (303 ) (19 ) (607 ) 6 (923 ) Asset Dispositions 9 2 7 — 18 Decrease (Increase) in Restricted Cash (1 ) — 6 — 5 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 95 — 95 Capital Contributions Received and Loans Incurred (382 ) — (457 ) 839 — Capital Redemptions and Loans Paid 459 — 244 (703 ) — Other Transactions 13 — 13 — 26 Total Cash Flows from Investing Activities (205 ) (17 ) (771 ) 142 (851 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 22 — 60 (36 ) 46 Short Term Debt and Overdrafts Paid (14 ) (22 ) (24 ) 36 (24 ) Long Term Debt Incurred 601 — 1,241 — 1,842 Long Term Debt Paid (608 ) — (947 ) — (1,555 ) Common Stock Issued 39 — — — 39 Common Stock Repurchased (234 ) — — — (234 ) Common Stock Dividends Paid (60 ) — — — (60 ) Preferred Stock Dividends Paid (15 ) — — — (15 ) Capital Contributions Received and Loans Incurred 457 47 335 (839 ) — Capital Redemptions and Loans Paid (244 ) — (459 ) 703 — Intercompany Dividends Paid — (203 ) (70 ) 273 — Transactions with Minority Interests in Subsidiaries — — (49 ) — (49 ) Debt Related Costs and Other Transactions — — (1 ) — (1 ) Total Cash Flows from Financing Activities (56 ) (178 ) 86 137 (11 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (5 ) (308 ) — (313 ) Net Change in Cash and Cash Equivalents (595 ) (5 ) (235 ) — (835 ) Cash and Cash Equivalents at Beginning of the Year 1,269 94 1,633 — 2,996 Cash and Cash Equivalents at End of the Year $ 674 $ 89 $ 1,398 $ — $ 2,161 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 17 $ 16 $ 1,009 $ (104 ) $ 938 Cash Flows from Investing Activities: Capital Expenditures (220 ) (19 ) (940 ) 11 (1,168 ) Asset Dispositions 2 — 23 — 25 Decrease (Increase) in Restricted Cash — — 14 — 14 Short Term Securities Acquired — — (105 ) — (105 ) Short Term Securities Redeemed — — 89 — 89 Capital Contributions Received and Loans Incurred (91 ) (11 ) (170 ) 272 — Capital Redemptions and Loans Paid 214 — 403 (617 ) — Other Transactions — — 9 — 9 Total Cash Flows from Investing Activities (95 ) (30 ) (677 ) (334 ) (1,136 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 14 — 121 (104 ) 31 Short Term Debt and Overdrafts Paid (90 ) (14 ) (120 ) 104 (120 ) Long Term Debt Incurred 900 — 1,013 — 1,913 Long Term Debt Paid (11 ) — (670 ) — (681 ) Common Stock Issued 26 — — — 26 Common Stock Repurchased (4 ) — — — (4 ) Common Stock Dividends Paid (12 ) — — — (12 ) Preferred Stock Dividends Paid (29 ) — — — (29 ) Capital Contributions Received and Loans Incurred 170 58 44 (272 ) — Capital Redemptions and Loans Paid (403 ) — (214 ) 617 — Intercompany Dividends Paid — — (93 ) 93 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions (16 ) — — — (16 ) Total Cash Flows from Financing Activities 545 44 55 438 1,082 Effect of Exchange Rate Changes on Cash and Cash Equivalents — (4 ) (165 ) — (169 ) Net Change in Cash and Cash Equivalents 467 26 222 — 715 Cash and Cash Equivalents at Beginning of the Year 802 68 1,411 — 2,281 Cash and Cash Equivalents at End of the Year $ 1,269 $ 94 $ 1,633 $ — $ 2,996 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncurrent deferred tax liabilities | $ 91 | $ 91 | $ 90 | |
Loss on deconsolidation of Venezuelan subsidiary | 646 | 646 | 0 | $ 0 |
Derecognition of the carrying amounts of assets and liabilities included in deconsolidation charge | 320 | 0 | 0 | |
Losses previously included in Accumulated Other Comprehensive Loss included in deconsolidation charge | 248 | 0 | 0 | |
Research and development expenditures | 382 | 399 | 390 | |
Advertising costs | 385 | 430 | 408 | |
Maximum cash investments with single counterparty | 306 | 306 | ||
Capital lease obligations | 3 | 12 | 19 | |
Capitalized costs related to the Global and North America Headquarters facility and parking deck | 18 | |||
Accrued capital expenditures remaining unpaid | 254 | |||
Payments for capital expenditures accrued and unpaid in prior year | 212 | |||
Restricted net assets | $ 551 | 551 | ||
Depreciation expense for property, plant and equipment | $ 697 | 730 | $ 719 | |
New Accounting Pronouncement, Early Adoption, Effect | ||||
Increase in noncurrent deferred income tax assets | 500 | |||
Decrease in current deferred income tax assets | 565 | |||
Noncurrent deferred tax liabilities | (60) | |||
Decrease in current deferred income tax liabilities | $ 5 |
Costs Associated with Rationa55
Costs Associated with Rationalization Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 119 | $ 237 | $ 252 |
New charges | 116 | 128 | 75 |
Incurred, Net of Foreign Currency Translation | (131) | (235) | (73) |
Reversed to the Statement of Operations | (1) | (11) | (17) |
Ending Balance | 103 | 119 | 237 |
Associate-related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 117 | 232 | 229 |
New charges | 86 | 76 | 58 |
Incurred, Net of Foreign Currency Translation | (106) | (186) | (42) |
Reversed to the Statement of Operations | (1) | (5) | (13) |
Ending Balance | 96 | 117 | 232 |
Foreign currency translation | (12) | (18) | 7 |
Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 2 | 5 | 23 |
New charges | 30 | 52 | 17 |
Incurred, Net of Foreign Currency Translation | (25) | (49) | (31) |
Reversed to the Statement of Operations | 0 | (6) | (4) |
Ending Balance | 7 | 2 | 5 |
Foreign currency translation | $ 0 | $ 0 | $ 0 |
Costs Associated with Rationa56
Costs Associated with Rationalization Programs (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 114 | $ 95 | $ 58 |
Asset Write-off and Accelerated Depreciation Charges | 8 | 7 | 23 |
Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 73 | 23 | 45 |
Current Year Plans | Associate Severance and Other Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 66 | 22 | 42 |
Current Year Plans | Other Exit and Non-Cancelable Lease Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 7 | 1 | 3 |
Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 41 | 72 | 13 |
Prior Year Plans | Associate Severance and Other Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 19 | 49 | 3 |
Prior Year Plans | Pension Curtailment Gain | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | (1) | (22) | 0 |
Prior Year Plans | Other Exit and Non-Cancelable Lease Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 23 | $ 45 | $ 10 |
Costs Associated with Rationa57
Costs Associated with Rationalization Programs (Textual) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)Employees | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
New charges | $ 116 | $ 128 | $ 75 | |
Restructuring reserve settled with cash and non cash considerations | 131 | 235 | 73 | |
Payments for legal settlements | 25 | 20 | ||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Restructuring reserve | $ 103 | 119 | 237 | $ 252 |
Number of positions eliminated, remain to be released | Employees | 700 | |||
Asset write-off and accelerated depreciation charges | $ 8 | 7 | 23 | |
Rationalizations | 114 | 95 | 58 | |
Pension Curtailment Gain | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment gain | 1 | 22 | ||
Wolverhampton Restructuring Plan | ||||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Restructuring reserve | 36 | |||
Amiens Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment gain | 33 | |||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Restructuring reserve | $ 27 | |||
Number of employees with claims filed | Employees | 800 | |||
Current Year Plans | ||||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Number of positions to be eliminated | Employees | 800 | |||
Number of positions eliminated, inception to date | Employees | 200 | |||
Rationalizations | $ 73 | 23 | 45 | |
Current Year Plans | Wolverhampton Restructuring Plan | ||||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Rationalizations | $ 38 | |||
Prior Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment gain | 72 | |||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Number of positions eliminated, inception to date | Employees | 200 | |||
Rationalizations | $ 41 | 72 | 13 | |
Prior Year Plans | Pension Curtailment Gain | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment gain | 22 | |||
Costs Associated with Rationalization Programs (Textuals) [Abstract] | ||||
Rationalizations | $ (1) | (22) | $ 0 | |
Prior Year Plans | Amiens Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension curtailment gain | $ 74 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense [Abstract] | |||
Interest expense before capitalization | $ 431 | $ 452 | $ 431 |
Capitalized interest | (19) | (24) | (39) |
Interest expense | 412 | 428 | 392 |
Interest paid, net | $ 445 | 419 | $ 353 |
Interest recovered on the settlement of tax claims | $ 6 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expense | |||
Royalty income | $ (192) | $ (35) | $ (51) |
Financing fees and financial instruments | 111 | 77 | 64 |
Net foreign currency exchange losses | 77 | 239 | 118 |
Net gains on asset sales | (71) | (3) | (8) |
General and product liability — discontinued products (gains) losses | (25) | 25 | 15 |
Interest income | (22) | (28) | (41) |
Miscellaneous | 7 | 27 | 0 |
Other (income) expense | $ (115) | $ 302 | $ 97 |
Other (Income) Expense (Textual
Other (Income) Expense (Textual) (Details) $ in Millions | Dec. 07, 2015USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($)VEF / $ | Dec. 31, 2014USD ($)VEF / $ | Dec. 31, 2013USD ($) | Oct. 01, 2015USD ($) | Jan. 24, 2014VEF / $ | Feb. 13, 2013VEF / $ | Feb. 12, 2013VEF / $ |
Other Expense [Line Items] | |||||||||
Royalty income | $ 192 | $ 35 | $ 51 | ||||||
Gain on recognition of deferred income | 155 | 0 | 0 | ||||||
Financing fees and financial instruments | 111 | 77 | 64 | ||||||
Net foreign currency exchange losses | 77 | 239 | 118 | ||||||
Net exchange rate remeasurement loss | $ 115 | $ 0 | $ 200 | 115 | |||||
Venezuela's official exchange rate | VEF / $ | 13.5 | 12 | 11.4 | 6.3 | 4.3 | ||||
Net gains (losses) on asset sales | $ 71 | $ 3 | 8 | ||||||
General and product liability — discontinued products (gains) losses | (25) | 25 | 15 | ||||||
Interest income | 22 | 28 | 41 | ||||||
Latin America | |||||||||
Other Expense [Line Items] | |||||||||
Interest income | 10 | 11 | |||||||
Asbestos Related Product Liability | |||||||||
Other Expense [Line Items] | |||||||||
General and product liability — discontinued products (gains) losses | (25) | ||||||||
Unasserted Claim | |||||||||
Other Expense [Line Items] | |||||||||
Miscellaneous expense | 4 | 22 | 6 | ||||||
Unfavorable Regulatory Action | |||||||||
Other Expense [Line Items] | |||||||||
Miscellaneous expense | $ 16 | ||||||||
Change in Assumptions Benefit | Asbestos Related Product Liability | |||||||||
Other Expense [Line Items] | |||||||||
General and product liability — discontinued products (gains) losses | (21) | ||||||||
Change in Assumptions Expense | Asbestos Related Product Liability | |||||||||
Other Expense [Line Items] | |||||||||
General and product liability — discontinued products (gains) losses | 8 | ||||||||
8.25% due 2020 | Senior Notes | |||||||||
Other Expense [Line Items] | |||||||||
Redemption premium | $ 41 | 41 | |||||||
Write-off of deferred financing fees and unamortized discount | 14 | 14 | |||||||
Debt instrument, principal amount | $ 1,000 | ||||||||
SRI | |||||||||
Other Expense [Line Items] | |||||||||
Debt instrument, principal amount | $ 56 | ||||||||
Net gains (losses) on asset sales | 48 | ||||||||
Pre-tax gain on sale of common stock in SRI | 30 | ||||||||
Other (Income) Expense | SRI | |||||||||
Other Expense [Line Items] | |||||||||
Pre-tax gain on sale of common stock in SRI | 30 | ||||||||
Chemical | |||||||||
Other Expense [Line Items] | |||||||||
Royalty income | $ 11 | ||||||||
Certain Sub-Saharan Retail Businesses | |||||||||
Other Expense [Line Items] | |||||||||
Net gains (losses) on asset sales | (14) | ||||||||
Venezuelan bolívar fuerte | |||||||||
Other Expense [Line Items] | |||||||||
Net foreign currency exchange losses | $ 34 |
Dissolution of Global Allianc61
Dissolution of Global Alliance With Sumitomo Rubber Industries (Details) - USD ($) $ in Millions | Oct. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain on asset sales | $ 71 | $ 3 | $ 8 | |
Decrease (increase) in accumulated other comprehensive loss | (69) | $ (79) | $ (232) | |
NGY | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest acquired | 75.00% | |||
GDTE | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest acquired | 25.00% | |||
Decrease (increase) in accumulated other comprehensive loss | (107) | |||
Increase in capital surplus | 60 | |||
SRI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net amount paid upon closing transactions | $ 271 | |||
Debt instrument, principal amount | $ 56 | |||
Promissory note, term | 3 years | |||
Proceeds on sale of common stock in SRI | 47 | |||
Pre-tax gain on sale of common stock in SRI | 30 | |||
Pre-tax gain on asset sales | 48 | |||
Net gain on asset sales | 38 | |||
Pre-tax loss for the difference between liabilities retained and indemnification of those liabilities | 28 | |||
Decrease (increase) in accumulated other comprehensive loss | 77 | |||
SRI | London Interbank Offered Rate (LIBOR) | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Promissory note, basis spread on variable rate | 0.10% | |||
Accounts receivable | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Indemnification asset | 6 | |||
Other Assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Indemnification asset | 26 | |||
GDTNA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Decrease (increase) in accumulated other comprehensive loss | 184 | |||
Other (Income) Expense | SRI | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain on sale of common stock in SRI | $ 30 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | GDTNA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity interest prior to dissolution | 75.00% | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | DGT | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity interest prior to dissolution | 25.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, domestic | $ 284 | $ 400 | $ 396 |
Income before income taxes, foreign | 324 | 287 | 417 |
Income before income taxes | $ 608 | $ 687 | $ 813 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
U.S. Federal income tax expense (benefit) at the statutory rate of 35% | $ 213 | $ 240 | $ 284 |
Deconsolidation of Venezuelan subsidiary | 157 | 0 | 0 |
U.S. credits (R&D, foreign tax credits) and benefits offset to OCI | (72) | 0 | 0 |
Adjustment for foreign income taxed at different rates | (39) | (37) | (2) |
Net foreign losses (income) with no tax benefit due to valuation allowances | (19) | 49 | 42 |
Net (resolution) establishment of uncertain tax positions | (13) | 3 | 10 |
State income taxes, net of U.S. Federal benefit | 10 | 12 | 0 |
Deferred tax impact of enacted tax rate and law changes | (2) | 33 | (13) |
Provision for undistributed foreign earnings | 0 | 131 | 0 |
U.S. (income) with no tax due to valuation allowance | 0 | 0 | (136) |
Poland special enterprise zone tax credit | 0 | 0 | (42) |
Other | 1 | 2 | 3 |
United States and Foreign Tax (Benefit) Expense | 232 | (1,834) | 138 |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Net (release) establishment of valuation allowances | (8) | (2,318) | 0 |
Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Net (release) establishment of valuation allowances | $ 4 | $ 51 | $ (8) |
Income Taxes - Components of Un
Income Taxes - Components of United States and Foreign Tax (Benefit) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 0 | $ 0 | $ (6) |
Current Foreign | 154 | 135 | 176 |
Current State | (1) | 1 | 2 |
Current income tax expense | 153 | 136 | 172 |
Deferred Federal | 74 | (2,103) | 2 |
Deferred Foreign | 5 | 84 | (36) |
Deferred State | 0 | 49 | 0 |
Deferred income tax expense (benefit) | 79 | (1,970) | (34) |
United States and Foreign Tax (Benefit) Expense | $ 232 | $ (1,834) | $ 138 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Tax loss carryforwards and credits | $ 1,415 | $ 1,550 |
Capitalized research and development expenditures | 655 | 622 |
Accrued expenses deductible as paid | 501 | 583 |
Postretirement benefits and pensions | 288 | 388 |
Investment and receivables related to Venezuelan deconsolidation | 157 | 0 |
Alternative minimum tax credit carryforwards | 78 | 85 |
Rationalizations and other provisions | 22 | 49 |
Vacation and sick pay | 37 | 36 |
Other | 121 | 100 |
Total gross deferred tax assets | 3,274 | 3,413 |
Valuation allowance | (621) | (632) |
Total deferred tax assets | 2,653 | 2,781 |
Property basis differences | (459) | (448) |
Tax on undistributed earnings of subsidiaries | (144) | (170) |
Total net deferred tax assets | $ 2,050 | $ 2,163 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 81 | $ 88 | $ 82 |
Increases related to prior year tax positions | 10 | 15 | 27 |
Decreases related to prior year tax positions | (10) | (12) | (6) |
Settlements | (14) | (6) | (9) |
Foreign currency impact | (15) | (4) | (6) |
Increases related to current year tax positions | 2 | 0 | 1 |
Lapse of statute of limitations | 0 | 0 | (1) |
Balance at end of period | $ 54 | $ 81 | $ 88 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||||
Tax benefit from the conclusion of non-U.S. tax claims | $ 9 | ||||
Loss on deconsolidation of Venezuelan subsidiary | $ 646 | 646 | $ 0 | $ 0 | |
Tax benefit from research and development tax credit | 10 | ||||
United States and Foreign Tax (Benefit) Expense | 232 | (1,834) | 138 | ||
Tax adjustments | (18) | (1,980) | (43) | ||
Provision for potential U.S. Federal taxation of certain undistributed earnings of foreign subsidiaries | 0 | 131 | 0 | ||
Deferred tax impact of enacted tax rate and law changes | (2) | 33 | (13) | ||
Benefit from Poland special enterprise zone credit | (33) | ||||
Benefit related to enacted law changes | (13) | ||||
Foreign tax assets for net operating loss, capital loss and tax credit carryforwards | 519 | 519 | |||
Valuation allowance | (621) | (621) | (632) | ||
Federal tax assets for net operating loss and tax credit carryforwards | 795 | 795 | |||
State tax assets for net operating loss and tax credit carryforwards | 101 | 101 | |||
Federal tax assets for net operating losses subject to expiration | 38 | 38 | |||
Foreign tax credits subject to expiration | 686 | 686 | |||
R&D tax credits subject to expiration | 71 | 71 | |||
Unrealized stock option deductions to deferred assets | 57 | 57 | |||
Reduction of the valuation allowance | 275 | 275 | |||
Unrecognized tax benefits | 54 | 54 | 81 | 88 | $ 82 |
Favorable tax expense impact of unrecognized tax benefits, if recognized | 40 | 40 | |||
Accrued interest | 5 | 5 | |||
Unrecognized tax benefits requiring the use of cash if not favorably settled | 9 | 9 | |||
Undistributed foreign subsidiaries earnings | 1,400 | 1,400 | |||
Income tax cash payments, net | 113 | 127 | 186 | ||
Domestic Tax Authority | |||||
Income Taxes [Line Items] | |||||
Net (release) establishment of valuation allowances | (8) | (2,318) | 0 | ||
Tax benefit from loss on deconsolidation of subsidiary | 69 | ||||
Tax adjustments | (2,179) | ||||
Valuation allowance | (98) | (98) | |||
Venezuelan & Brazilian subsidiaries | |||||
Income Taxes [Line Items] | |||||
Net (release) establishment of valuation allowances | 37 | ||||
Luxembourg subsidiary | |||||
Income Taxes [Line Items] | |||||
Net (release) establishment of valuation allowances | 9 | ||||
Chile | |||||
Income Taxes [Line Items] | |||||
Deferred tax impact of enacted tax rate and law changes | 11 | ||||
Poland | |||||
Income Taxes [Line Items] | |||||
Foreign tax assets for net operating loss, capital loss and tax credit carryforwards | 15 | 15 | |||
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Net (release) establishment of valuation allowances | 4 | $ 51 | $ (8) | ||
Valuation allowance | $ (523) | $ (523) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 01, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Goodyear net income | $ 307 | $ 2,452 | $ 629 | |
Less: Preferred stock dividends | 0 | 7 | 29 | |
Goodyear net income available to common shareholders | $ 307 | $ 2,445 | $ 600 | |
Weighted average shares outstanding | 269,000,000 | 268,000,000 | 246,000,000 | |
Earnings per common share-basic (in dollars per share) | $ 1.14 | $ 9.13 | $ 2.44 | |
Less: Preferred stock dividends | $ 0 | $ 0 | $ 0 | |
Goodyear net income available to common shareholders | $ 307 | $ 2,452 | $ 629 | |
Dilutive effect of mandatory convertible preferred stock (in shares) | 0 | 7,000,000 | 28,000,000 | |
Dilutive effect of stock options and other dilutive securities (in shares) | 4,000,000 | 4,000,000 | 3,000,000 | |
Weighted average shares outstanding — diluted | 273,000,000 | 279,000,000 | 277,000,000 | |
Earnings per common share-diluted (in dollars per share) | $ 1.12 | $ 8.78 | $ 2.28 | |
Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares converted from preferred stock, net of fractional shares (in shares) | 27,573,735 | |||
Rate of conversion from preferred to common stock (in shares) | 2.7574 | |||
Underwater Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 2,000,000 | 3,000,000 |
Business Segments - Business S
Business Segments - Business Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Operating Income: | ||||
Net Sales | $ 16,443 | $ 18,138 | $ 19,540 | |
Segment Operating Income | 2,022 | 1,712 | 1,580 | |
Rationalizations | 114 | 95 | 58 | |
Interest expense | 412 | 428 | 392 | |
Other (income) expense | (115) | 302 | 97 | |
Asset write-offs and accelerated depreciation | 8 | 7 | 23 | |
Curtailments/settlements | 137 | 33 | ||
Loss on deconsolidation of Venezuelan subsidiary | $ 646 | 646 | 0 | 0 |
Income before Income Taxes | 608 | 687 | 813 | |
Royalty income | 192 | 35 | 51 | |
Segment Reconciling Items | ||||
Segment Operating Income: | ||||
Rationalizations | 114 | 95 | 58 | |
Interest expense | 412 | 428 | 392 | |
Other (income) expense | (115) | 302 | 97 | |
Asset write-offs and accelerated depreciation | 8 | 7 | 23 | |
Corporate incentive compensation plans | 103 | 97 | 108 | |
Curtailments/settlements | 137 | 33 | 0 | |
Intercompany profit elimination | 3 | (4) | (4) | |
Loss on deconsolidation of Venezuelan subsidiary | 646 | 0 | 0 | |
Retained expenses of divested operations | 14 | 16 | 24 | |
Other | 92 | 51 | 69 | |
Intersegment Eliminations | ||||
Segment Operating Income: | ||||
Royalty income | 25 | 24 | 39 | |
North America | Operating Segments | ||||
Segment Operating Income: | ||||
Net Sales | 7,774 | 8,085 | 8,684 | |
Segment Operating Income | 1,108 | 803 | 691 | |
Rationalizations | 9 | (6) | 12 | |
Europe, Middle East and Africa | Operating Segments | ||||
Segment Operating Income: | ||||
Net Sales | 5,115 | 6,180 | 6,567 | |
Segment Operating Income | 435 | 438 | 298 | |
Rationalizations | 95 | 89 | 26 | |
Asset write-offs and accelerated depreciation | 8 | 7 | 23 | |
Asia Pacific | Operating Segments | ||||
Segment Operating Income: | ||||
Net Sales | 1,958 | 2,077 | 2,226 | |
Segment Operating Income | 319 | 301 | 308 | |
Rationalizations | 4 | 9 | 16 | |
Latin America | Operating Segments | ||||
Segment Operating Income: | ||||
Net Sales | 1,596 | 1,796 | 2,063 | |
Segment Operating Income | 160 | 170 | 283 | |
Rationalizations | $ 6 | $ 3 | $ 4 |
Business Segments - Segment Re
Business Segments - Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 18,044 | $ 16,439 | $ 17,437 |
Increase in corporate assets | 2,080 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 14,570 | 13,219 | 15,506 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,929 | 4,808 | 4,977 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,957 | 4,383 | 5,532 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,594 | 2,559 | 2,613 |
Operating Segments | Latin America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,090 | 1,469 | 2,384 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,474 | $ 3,220 | $ 1,931 |
Business Segments - Revenue fr
Business Segments - Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | $ 16,443 | $ 18,138 | $ 19,540 |
Long-Lived Assets | 6,777 | 7,153 | 7,320 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 7,338 | 7,558 | 7,820 |
Long-Lived Assets | 2,468 | 2,464 | 2,389 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 1,905 | 2,288 | 2,372 |
Long-Lived Assets | 778 | 833 | 891 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 7,200 | 8,292 | 9,348 |
Long-Lived Assets | 2,765 | 3,047 | 3,219 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 766 | $ 809 | $ 821 |
Business Segments - Rationaliz
Business Segments - Rationalizations, Asset Sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Rationalizations | $ 114 | $ 95 | $ 58 |
Net gains (losses) on asset sales | 71 | 3 | 8 |
Asset write-offs and accelerated depreciation | 8 | 7 | 23 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net gains (losses) on asset sales | (7) | 1 | 8 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 9 | (6) | 12 |
Net gains (losses) on asset sales | 1 | 8 | 4 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 95 | 89 | 26 |
Net gains (losses) on asset sales | (14) | (7) | 1 |
Asset write-offs and accelerated depreciation | 8 | 7 | 23 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 4 | 9 | 16 |
Net gains (losses) on asset sales | 5 | 0 | 2 |
Operating Segments | Latin America | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 6 | 3 | 4 |
Net gains (losses) on asset sales | 1 | 0 | 1 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net gains (losses) on asset sales | 78 | $ 2 | $ 0 |
SRI | |||
Segment Reporting Information [Line Items] | |||
Net gains (losses) on asset sales | 48 | ||
Pre-tax gain on sale of common stock in SRI | $ 30 |
Business Segments - Capital Ex
Business Segments - Capital Expenditures Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 983 | $ 923 | $ 1,168 |
Depreciation and amortization | 698 | 732 | 722 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 825 | 854 | 1,094 |
Depreciation and amortization | 664 | 701 | 680 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 353 | 282 | 262 |
Depreciation and amortization | 270 | 274 | 275 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 223 | 266 | 332 |
Depreciation and amortization | 186 | 220 | 228 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 124 | 154 | 257 |
Depreciation and amortization | 114 | 105 | 93 |
Operating Segments | Latin America | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 125 | 152 | 243 |
Depreciation and amortization | 94 | 102 | 84 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 158 | 69 | 74 |
Depreciation and amortization | 34 | $ 31 | $ 42 |
San Luis Potosi, Mexico | Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 140 |
Business Segments - Equity In
Business Segments - Equity In Net Income of Investees Accounted For By Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Equity in income | $ 0 | $ 0 | $ 0 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Equity in income | (16) | (28) | (31) |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Equity in income | (3) | (5) | (8) |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Equity in income | (1) | 0 | 0 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Equity in income | (12) | (23) | (23) |
Guarantor Subsidiaries | |||
Segment Reporting Information [Line Items] | |||
Equity in income | $ (19) | $ (28) | $ (5) |
Business Segments - Narrative
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)segment | Oct. 01, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 4 | ||||
Concentrations of cash and cash equivalents | $ 1,476 | $ 2,161 | $ 2,996 | $ 2,281 | |
Operating Segments | Europe, Middle East and Africa | |||||
Segment Reporting Information [Line Items] | |||||
Concentrations of cash and cash equivalents | $ 513 | $ 517 | |||
Percent of concentrations of cash and cash equivalents | 35.00% | 24.00% | |||
Operating Segments | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Concentrations of cash and cash equivalents | $ 415 | $ 462 | |||
Percent of concentrations of cash and cash equivalents | 28.00% | 21.00% | |||
Operating Segments | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Concentrations of cash and cash equivalents | $ 114 | $ 409 | |||
Percent of concentrations of cash and cash equivalents | 8.00% | 19.00% | |||
NGY | |||||
Segment Reporting Information [Line Items] | |||||
Equity interest prior to dissolution | 25.00% | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | DGT | |||||
Segment Reporting Information [Line Items] | |||||
Equity interest prior to dissolution | 25.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accounts receivable | $ 2,138 | $ 2,215 |
Allowance for doubtful accounts | (105) | (89) |
Accounts receivable, net | $ 2,033 | $ 2,126 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 419 | $ 535 |
Work in process | 138 | 149 |
Finished goods | 1,907 | 1,987 |
Total inventory | $ 2,464 | $ 2,671 |
Goodwill and Intangible Asset78
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 601 | $ 668 |
Acquisitions | 6 | 0 |
Divestitures | (4) | 0 |
Translation | (48) | (67) |
Ending balance | 555 | 601 |
North America | ||
Goodwill [Roll Forward] | ||
Beginning balance | 93 | 93 |
Acquisitions | 0 | 0 |
Divestitures | (2) | 0 |
Translation | 0 | 0 |
Ending balance | 91 | 93 |
Europe, Middle East and Africa | ||
Goodwill [Roll Forward] | ||
Beginning balance | 448 | 511 |
Acquisitions | 0 | 0 |
Divestitures | (2) | 0 |
Translation | (45) | (63) |
Ending balance | 401 | 448 |
Asia Pacific | ||
Goodwill [Roll Forward] | ||
Beginning balance | 60 | 64 |
Acquisitions | 6 | 0 |
Divestitures | 0 | 0 |
Translation | (3) | (4) |
Ending balance | $ 63 | $ 60 |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets with indefinite lives, gross | $ 128 | $ 127 | |
Intangible assets with indefinite lives, accumulated amortization | (6) | (6) | |
Intangible assets with indefinite lives, net | 122 | 121 | |
Intangible assets, gross | 161 | 163 | |
Intangible assets, accumulated amortization | (23) | (25) | |
Intangible assets, net | 138 | 138 | |
Amortization of intangible assets | 1 | 2 | $ 3 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,016 | 1 | ||
2,017 | 1 | ||
2,018 | 1 | ||
2,019 | 1 | ||
2,020 | $ 1 | ||
Intangible asset weighted average remaining amortization period | 29 years | ||
Impairment of goodwill or intangible assets with indefinite lives | $ 0 | 0 | $ 0 |
Trademarks and Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 12 | 15 | |
Finite-lived intangible assets, accumulated amortization | (8) | (10) | |
Finite-lived intangible assets, net | 4 | 5 | |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 21 | 21 | |
Finite-lived intangible assets, accumulated amortization | (9) | (9) | |
Finite-lived intangible assets, net | $ 12 | $ 12 |
Other Assets and Investments (D
Other Assets and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment in Sumitomo Rubber Industries, Ltd. (in shares) | 3,421,306 | ||
Fair value of the Sumitomo Investment | $ 51 | ||
Unrealized holding gains on the Sumitomo Investment, gross | 35 | ||
Unrealized holding gains on the Sumitomo Investment, after-tax | 36 | ||
Dividends received from consolidated subsidiaries | $ 46 | 273 | $ 88 |
Dividends received from affiliates accounted for using the equity method | $ 24 | $ 24 | $ 21 |
SRI | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Percentage of investment shares sold | 100.00% | ||
Pre-tax gain on sale of common stock in SRI | $ 30 | ||
Other (Income) Expense | SRI | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Pre-tax gain on sale of common stock in SRI | $ 30 |
Property, Plant and Equipment81
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 387 | $ 413 |
Buildings | 2,262 | 2,411 |
Machinery and equipment | 11,787 | 12,392 |
Construction in progress | 783 | 733 |
Property, plant and equipment, gross | 15,219 | 15,949 |
Accumulated depreciation | (8,637) | (9,029) |
Property plant and equipment, net before spare parts | 6,582 | 6,920 |
Spare parts | 195 | 233 |
Property, plant and equipment, net | 6,777 | 7,153 |
Owned | ||
Property, Plant and Equipment [Line Items] | ||
Land | 387 | 413 |
Buildings | 2,230 | 2,375 |
Machinery and equipment | 11,719 | 12,322 |
Construction in progress | 783 | 733 |
Property, plant and equipment, gross | 15,119 | 15,843 |
Accumulated depreciation | (8,605) | (9,002) |
Property plant and equipment, net before spare parts | 6,514 | 6,841 |
Spare parts | 195 | 233 |
Property, plant and equipment, net | 6,709 | 7,074 |
Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Land | 0 | 0 |
Buildings | 32 | 36 |
Machinery and equipment | 68 | 70 |
Construction in progress | 0 | 0 |
Property, plant and equipment, gross | 100 | 106 |
Accumulated depreciation | (32) | (27) |
Property plant and equipment, net before spare parts | 68 | 79 |
Spare parts | 0 | 0 |
Property, plant and equipment, net | $ 68 | $ 79 |
Minimum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Maximum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 45 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years |
Leased Assets (Details)
Leased Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Gross rental expense | $ 324 | $ 387 | $ 400 |
Sublease rental income | (33) | (40) | (43) |
Rent expense, net | 291 | $ 347 | $ 357 |
Capital leases, minimum lease payments, due in 2016 | 12 | ||
Capital leases, minimum lease payments, due in 2017 | 11 | ||
Capital leases, minimum lease payments, due in 2018 | 8 | ||
Capital leases, minimum lease payments, due in 2019 | 5 | ||
Capital leases, minimum lease payments, due in 2020 | 3 | ||
Capital leases, minimum lease payments, due thereafter | 41 | ||
Capital leases, minimum lease payments | 80 | ||
Capital leases, imputed interest, due in 2016 | (4) | ||
Capital leases, imputed interest, due in 2017 | (3) | ||
Capital leases, imputed interest, due in 2018 | (3) | ||
Capital leases, imputed interest, due in 2019 | (3) | ||
Capital leases, imputed interest, due in 2020 | (2) | ||
Capital leases, imputed interest, due thereafter | (17) | ||
Capital leases, imputed interest | (32) | ||
Capital leases. present value, due in 2016 | 8 | ||
Capital leases. present value, due in 2017 | 8 | ||
Capital leases. present value, due in 2018 | 5 | ||
Capital leases. present value, due in 2019 | 2 | ||
Capital leases. present value, due in 2020 | 1 | ||
Capital leases. present value, due thereafter | 24 | ||
Capital leases. present value | 48 | ||
Operating leases, minimum lease payments, due in 2016 | 279 | ||
Operating leases, minimum lease payments, due in 2017 | 215 | ||
Operating leases, minimum lease payments, due in 2018 | 158 | ||
Operating leases, minimum lease payments, due in 2019 | 118 | ||
Operating leases, minimum lease payments, due in 2020 | 94 | ||
Operating leases, minimum lease payments, due thereafter | 299 | ||
Operating leases, minimum lease payments | 1,163 | ||
Operating leases, minimum sublease rentals, due in 2016 | (26) | ||
Operating leases, minimum sublease rentals, due in 2017 | (17) | ||
Operating leases, minimum sublease rentals, due in 2018 | (10) | ||
Operating leases, minimum sublease rentals, due in 2019 | (6) | ||
Operating leases, minimum sublease rentals, due in 2020 | (3) | ||
Operating leases, minimum sublease rentals, due thereafter | (7) | ||
Operating leases, minimum sublease rentals | (69) | ||
Operating leases, due in 2016 | 253 | ||
Operating leases, due in 2017 | 198 | ||
Operating leases, due in 2018 | 148 | ||
Operating leases, due in 2019 | 112 | ||
Operating leases, due in 2020 | 91 | ||
Operating leases, due thereafter | 292 | ||
Operating leases | 1,094 | ||
Operating leases, imputed interest | (208) | ||
Operating leases, present value | $ 886 |
Financing Arrangements and De83
Financing Arrangements and Derivative Financial Instruments - Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Notes payable and overdrafts long term debt and capital leases due with in one year | ||
Notes payable and overdrafts | $ 49 | $ 30 |
Long term debt and capital leases due within one year: | ||
Other domestic and foreign debt (including capital leases) | 587 | 148 |
Total obligations due within one year | $ 636 | $ 178 |
Notes Payable and Overdrafts | ||
Notes payable and overdrafts long term debt and capital leases due with in one year | ||
Weighted average interest rate | 9.42% | 10.63% |
Long Term Debt and Capital Leases Due Within One Year | ||
Long term debt and capital leases due within one year: | ||
Weighted average interest rate | 6.68% | 7.75% |
Financing Arrangements and De84
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Capital Leases, Net of Unamortized Discounts, and Interest Rates (Details) € in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 07, 2015 | Oct. 15, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) |
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 5,659 | $ 6,305 | ||||
Capital lease obligations | 48 | 59 | ||||
Long-term debt and capital lease obligations, including current maturities | 5,707 | 6,364 | ||||
Less portion due within one year | (587) | (148) | ||||
Long-term debt and capital leases, excluding current maturities | 5,120 | 6,216 | ||||
Other Foreign and Domestic Debt | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 906 | $ 913 | ||||
Weighted average interest rate | 9.42% | 9.42% | 8.70% | 8.70% | ||
6.75% Euro Notes due 2019 | Euro Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 272 | $ 303 | ||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | 6.75% | ||
8.25% due 2020 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 0 | $ 996 | ||||
Interest rate, stated percentage | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | |
8.75% due 2020 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 271 | $ 269 | ||||
Interest rate, stated percentage | 8.75% | 8.75% | 8.75% | 8.75% | ||
6.5% due 2021 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 900 | $ 900 | ||||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | ||
7% due 2022 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 700 | $ 700 | ||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | ||
5.125% due 2023 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 1,000 | $ 0 | ||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | ||
3.75% Euro Notes due 2023 | Euro Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 272 | $ 0 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | ||
7% due 2028 | Senior Notes | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 150 | $ 150 | ||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | ||
Revolving Credit Facility | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 0 | $ 0 | ||||
Weighted average interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||
Line of credit facility, maximum borrowing capacity | $ 2,000 | $ 2,000 | ||||
Revolving Credit Facility | €550 million revolving credit facility due 2020 | Line of Credit | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 0 | $ 0 | ||||
Weighted average interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||
Line of credit facility, maximum borrowing capacity | $ 550 | $ 550 | ||||
Secured Debt | $1.2 billion second lien term loan facility due 2019 | Line of Credit | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 598 | $ 1,196 | ||||
Weighted average interest rate | 3.75% | 3.75% | 4.75% | 4.75% | ||
Line of credit facility, maximum borrowing capacity | $ 1,200 | $ 1,200 | ||||
Secured Debt | Pan-European accounts receivable facility | Line of Credit | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 125 | € 115 | $ 343 | € 283 | ||
Weighted average interest rate | 1.35% | 1.35% | 1.54% | 1.54% | ||
Line of credit facility, maximum borrowing capacity | € | € 340 | € 380 | ||||
Foreign Line of Credit | Chinese credit facilities | Line of Credit | ||||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||||
Total long term debt excluding capital leases | $ 465 | $ 535 | ||||
Weighted average interest rate | 5.22% | 5.22% | 5.65% | 5.65% |
Financing Arrangements and De85
Financing Arrangements and Derivative Financial Instruments - Maturities of Long-term Debt and Capital Leases (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 636 |
2,017 | 430 |
2,018 | 284 |
2,019 | 869 |
2,020 | 325 |
U.S. | |
Debt Instrument [Line Items] | |
2,016 | 6 |
2,017 | 5 |
2,018 | 59 |
2,019 | 599 |
2,020 | 271 |
Foreign | |
Debt Instrument [Line Items] | |
2,016 | 630 |
2,017 | 425 |
2,018 | 225 |
2,019 | 270 |
2,020 | $ 54 |
Financing Arrangements and De86
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, net transaction gains | $ 79 | $ 54 |
Accounts receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts receivable fair value, foreign currency contracts not designated as hedging instruments | 10 | 20 |
Accounts receivable fair value, foreign currency contracts designated as cash flow hedging instruments | 5 | 10 |
Other current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other current liabilities fair value, foreign currency contracts not designated as hedging instruments | (10) | (4) |
Other current liabilities fair value, foreign currency contracts designated as cash flow hedging instruments | (1) | 0 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, notional amount | 1,094 | 878 |
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, notional amount | $ 168 | $ 157 |
Financing Arrangements and De87
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | ||
Amounts deferred to AOCL | $ (20) | $ (17) |
Amount of deferred loss (gain) reclassified from AOCL into CGS | (28) | 0 |
Amounts excluded from effectiveness testing | 1 | $ 1 |
Deferred gains to be reclassified in next twelve months | $ 6 |
Financing Arrangements and De88
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Credit arrangements | $ 8,699 | ||
Credit arrangements, unused borrowing capacity | $ 2,676 | ||
Debt, percentage bearing variable interest | 31.00% | 31.00% | |
Facility lease term | 27 years | ||
Construction period included in facility lease term | 2 years | ||
Variable rate credit arrangements | |||
Debt Instrument [Line Items] | |||
Average variable interest rate | 6.55% | 6.55% | |
Short-term Debt | |||
Debt Instrument [Line Items] | |||
Credit arrangements | $ 467 | ||
Credit arrangements, unused borrowing capacity | 418 | ||
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Credit arrangements | 8,232 | ||
Credit arrangements, unused borrowing capacity | $ 2,258 | ||
6.75% Euro Notes due 2019 | Euro Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, principal amount | € | € 250 | ||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% |
Financing Arrangements and De89
Financing Arrangements and Derivative Financial Instruments - Senior Notes Narrative (Details) € in Millions, $ in Millions | Jan. 14, 2016 | Dec. 07, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014 |
6.75% Euro Notes due 2019 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | € | € 250 | ||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | ||
8.25% due 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 1,000 | ||||
Interest rate, stated percentage | 8.25% | 8.25% | 8.25% | 8.25% | |
Redemption premium | $ 41 | $ 41 | |||
Write-off of deferred financing fees and unamortized discount | $ 14 | 14 | |||
8.75% due 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 282 | ||||
Interest rate, stated percentage | 8.75% | 8.75% | 8.75% | ||
Debt instrument, maturity date | Aug. 15, 2020 | ||||
Debt instrument, restrictive covenants | The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. | ||||
Interest rate, effective percentage | 9.20% | 9.20% | |||
6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 900 | ||||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | ||
Notes sold at as a percentage of principle amount | 100.00% | 100.00% | |||
Debt instrument, maturity date | Mar. 1, 2021 | ||||
Percent of notes that may be redeemed with certain equity offerings | 35.00% | ||||
7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 700 | ||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | ||
Notes sold at as a percentage of principle amount | 100.00% | 100.00% | |||
Debt instrument, maturity date | May 15, 2022 | ||||
5.125% due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 1,000 | ||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | ||
Notes sold at as a percentage of principle amount | 100.00% | 100.00% | |||
Percent of notes that may be redeemed with certain equity offerings | 35.00% | ||||
3.75% Euro Notes due 2023 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | € | € 250 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | ||
Notes sold at as a percentage of principle amount | 100.00% | 100.00% | |||
Percent of notes that may be redeemed with certain equity offerings | 35.00% | ||||
7% due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 150 | ||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | ||
Debt instrument, maturity date | Mar. 15, 2028 | ||||
Debt instrument, restrictive covenants | The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. | ||||
Period Commencing March 1, 2016 | 6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 104.875% | ||||
Period Commencing March 1, 2017 | 6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 103.25% | ||||
Period Commencing March 1, 2018 | 6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.625% | ||||
Period Commencing March 1, 2019 | 6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Period Prior to March 1, 2016 | 6.5% due 2021 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Redemption price as percentage of principal amount plus accrued and unpaid interest | 106.50% | ||||
Period Commencing May 15, 2017 | 7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 103.50% | ||||
Period Commencing May 15, 2018 | 7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 102.333% | ||||
Period Commencing May 15, 2019 | 7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.167% | ||||
Period Commencing May 15, 2020 | 7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Period Prior to May 15, 2017 | 7% due 2022 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Period Commencing November 15, 2018 | 5.125% due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 102.563% | ||||
Period Commencing November 15, 2019 | 5.125% due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.281% | ||||
Period Commencing November 15, 2020 | 5.125% due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Period Prior to November 15, 2018 | 5.125% due 2023 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Redemption price as percentage of principal amount plus accrued and unpaid interest | 105.125% | ||||
Period Commencing December 15, 2018 | 3.75% Euro Notes due 2023 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.875% | ||||
Period Commencing December 15, 2019 | 3.75% Euro Notes due 2023 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.938% | ||||
Period Commencing December 15, 2020 | 3.75% Euro Notes due 2023 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Period Prior to December 15, 2018 | 3.75% Euro Notes due 2023 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Redemption price as percentage of principal amount plus accrued and unpaid interest | 103.75% | ||||
At Any Time Plus Make Whole Premium | 8.75% due 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
At Any Time Plus Make Whole Premium | 7% due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Subsequent Event | 6.75% Euro Notes due 2019 | Euro Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 103.375% | ||||
Treasury Rate | 8.75% due 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Basis spread | 0.50% |
Financing Arrangements and De90
Financing Arrangements and Derivative Financial Instruments - Credit Facilities - Narrative (Details) AUD in Millions | Dec. 30, 2015USD ($) | Feb. 03, 2015USD ($) | Jun. 30, 2015 | May. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015AUD | Oct. 15, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) |
Line of Credit Facility [Line Items] | ||||||||||
Total long term debt excluding capital leases | $ 5,659,000,000 | $ 6,305,000,000 | ||||||||
$2.0 billion first lien revolving credit facility due 2017 | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum percentage of equity interest In foreign subsidiaries to guarantee debt obligation | 65.00% | 65.00% | 65.00% | |||||||
$2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | 2,000,000,000 | ||||||||
Line of credit facility, expiration date | Apr. 30, 2017 | |||||||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | $ 250,000,000 | |||||||||
Basis spread | 1.50% | |||||||||
Debt instrument, collateral | 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 collateral that includes, subject to certain exceptions: | |||||||||
Line of credit facility, borrowing capacity description | Availability under the facility is subject to a borrowing base, which is based on eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, after adjusting for customary factors that are subject to modification from time to time by the administrative agent or the majority lenders at their discretion (not to be exercised unreasonably). Modifications are based on the results of periodic collateral and borrowing base evaluations and appraisals. To the extent that our eligible accounts receivable and inventory decline, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. In addition, if the amount of outstanding borrowings and letters of credit under the facility exceeds the borrowing base, we are required to prepay borrowings and/or cash collateralize letters of credit sufficient to eliminate the excess. | |||||||||
Line of credit facility, borrowing base amount below stated amount | $ 536,000,000 | |||||||||
Amount of availability under the facility plus available cash, less than | $ 200,000,000 | |||||||||
Minimum EBITDA ratio permitted in four consecutive quarters if Available Cash is less than $200 Million | 2 | |||||||||
Available cash plus availability under facility | $ 1,000,000,000 | |||||||||
Annual commitment fee percentage on undrawn amounts | 0.25% | |||||||||
Line of credit facility, amount outstanding | $ 0 | 0 | ||||||||
Total long term debt excluding capital leases | $ 0 | 0 | ||||||||
$2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Annual commitment fee percentage on undrawn amounts | 0.375% | |||||||||
$2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Letter of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||||
Letters of credit, amount outstanding | 315,000,000 | 377,000,000 | ||||||||
$1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 1,200,000,000 | 1,200,000,000 | ||||||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | $ 300,000,000 | |||||||||
Line of credit facility, fee percentage to amend the facility | 1.00% | |||||||||
Total long term debt excluding capital leases | $ 598,000,000 | 1,196,000,000 | ||||||||
Repayments of long-term lines of credit | $ 400,000,000 | $ 200,000,000 | ||||||||
European Revolving Credit Facility Member | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | € 400,000,000 | € 550,000,000 | ||||||||
Line of credit facility, amount outstanding | 0 | 0 | ||||||||
Increase (decrease) in commitment fee percentage | (0.20%) | |||||||||
Annual commitment fee percentage | 0.30% | |||||||||
European Revolving Credit Facility Member | Line of Credit | Revolving Credit Facility | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||||||||
European Revolving Credit Facility Member | Line of Credit | Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 550,000,000 | |||||||||
European Revolving Credit Facility Member | Line of Credit | Letter of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | 50,000,000 | |||||||||
Letters of credit, amount outstanding | € | 0 | € 0 | ||||||||
European Revolving Credit Facility Member | Line of Credit | German Tranche | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | 125,000,000 | |||||||||
European Revolving Credit Facility Member | Line of Credit | All Borrower Tranche | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | 425,000,000 | |||||||||
European Revolving Credit Facility Member | Line of Credit | Bridge Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||||||
Pan-European accounts receivable facility | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | 340,000,000 | € 380,000,000 | ||||||||
Line of credit facility, expiration date | Sep. 25, 2019 | |||||||||
Debt instrument, collateral | Utilization under this facility is based on eligible receivable balances. | |||||||||
Total long term debt excluding capital leases | $ 125,000,000 | 115,000,000 | 343,000,000 | 283,000,000 | ||||||
Line of credit facility, current borrowing capacity | 276,000,000 | 254,000,000 | 343,000,000 | € 283,000,000 | ||||||
Pan-European accounts receivable facility | Line of Credit | Secured Debt | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | 45,000,000 | |||||||||
Pan-European accounts receivable facility | Line of Credit | Secured Debt | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | € 450,000,000 | |||||||||
Chinese credit facilities | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, amount outstanding | 465,000,000 | 535,000,000 | ||||||||
Line of credit facility, remaining borrowing capacity | 66,000,000 | |||||||||
Restricted cash related to funds obtained under credit facilities | 11,000,000 | 4,000,000 | ||||||||
Global and North American Tire Headquarters | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, amount outstanding | 151,000,000 | |||||||||
Accounts Receivable Factoring Facilities | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Off-balance sheet accounts receivable securitization | 299,000,000 | 365,000,000 | ||||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 62,000,000 | |||||||||
Debt instrument, collateral | The receivables sold under this program also serve as collateral for the related facility. | |||||||||
Line of credit facility, amount outstanding | $ 19,000,000 | 23,000,000 | ||||||||
Line of credit facility, current borrowing capacity | $ 34,000,000 | $ 43,000,000 | ||||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | AUD | AUD 60 | |||||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | AUD | AUD 85 | |||||||||
London Interbank Offered Rate (LIBOR) | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.00% | |||||||||
London Interbank Offered Rate (LIBOR) | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.50% | |||||||||
London Interbank Offered Rate (LIBOR) | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.75% | |||||||||
London Interbank Offered Rate (LIBOR) | $1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.00% | |||||||||
London Interbank Offered Rate (LIBOR) | $1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 0.75% | |||||||||
London Interbank Offered Rate (LIBOR) | $1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 3.00% | |||||||||
London Interbank Offered Rate (LIBOR) | European Revolving Credit Facility Member | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.75% | |||||||||
Base Rate | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 0.50% | |||||||||
Base Rate | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 0.75% | |||||||||
Base Rate | $1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 2.00% | |||||||||
Federal Funds Rate | $2.0 billion first lien revolving credit facility due 2017 | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 0.50% | |||||||||
Federal Funds Rate | $1.2 billion second lien term loan facility due 2019 | Line of Credit | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 0.50% | |||||||||
European Interbank Offer Rate (EURIBOR) | European Revolving Credit Facility Member | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread | 1.75% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Assets: | ||
Investments | $ 56 | $ 7 |
Foreign Exchange Contracts | 30 | 15 |
Total Assets at Fair Value | 86 | 22 |
Liabilities: | ||
Foreign Exchange Contracts | 4 | 11 |
Total Liabilities at Fair Value | 4 | 11 |
Fair Value of Long Term Fixed Rate and Variable Rate Debt, excluding Capital Leases | ||
Carrying amount — liability | 6,305 | 5,659 |
Prior period reclassification adjustment between fixed rate debt and variable debt | 452 | |
Fixed Rate Debt, Excluding Capital Leases | ||
Fair Value of Long Term Fixed Rate and Variable Rate Debt, excluding Capital Leases | ||
Carrying amount — liability | 3,680 | 3,890 |
Fair value — liability | 3,773 | 4,065 |
Variable Rate Debt, Excluding Capital Leases | ||
Fair Value of Long Term Fixed Rate and Variable Rate Debt, excluding Capital Leases | ||
Carrying amount — liability | 2,625 | 1,769 |
Fair value — liability | 2,622 | 1,767 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 56 | 7 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 56 | 7 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Fair Value of Long Term Fixed Rate and Variable Rate Debt, excluding Capital Leases | ||
Fair value — liability | 4,603 | 4,337 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 30 | 15 |
Total Assets at Fair Value | 30 | 15 |
Liabilities: | ||
Foreign Exchange Contracts | 4 | 11 |
Total Liabilities at Fair Value | 4 | 11 |
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, Other Postretirement92
Pension, Other Postretirement Benefits and Savings Plans - Schedule of Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Benefits cost: | |||
Curtailments/settlements | $ 137 | $ 33 | |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Deconsolidation of Venezuelan subsidiary | 248 | ||
U.S. | |||
Benefits cost: | |||
Service cost | 4 | 15 | $ 45 |
Interest cost | 238 | 256 | 243 |
Expected return on plan assets | (295) | (311) | (335) |
Amortization of prior service cost (credit) | 0 | 1 | 17 |
Amortization of net losses | 106 | 114 | 205 |
Net periodic cost | 53 | 75 | 175 |
Curtailments/settlements | 137 | 32 | 0 |
Total benefits cost | 190 | 107 | 175 |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service (credit) cost from plan amendments | 0 | (1) | (30) |
Increase (decrease) in net actuarial losses | 150 | 292 | (374) |
Amortization of prior service (cost) credit in net periodic cost | 0 | (1) | (17) |
Amortization of net losses in net periodic cost | (106) | (114) | (205) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (386) | (32) | 0 |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) before tax and minority | (342) | 144 | (626) |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | (152) | 251 | (451) |
Non-U.S. | |||
Benefits cost: | |||
Service cost | 43 | 34 | 39 |
Interest cost | 113 | 131 | 131 |
Expected return on plan assets | (107) | (118) | (111) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Amortization of net losses | 32 | 35 | 50 |
Net periodic cost | 82 | 83 | 110 |
Curtailments/settlements | 2 | (13) | 4 |
Total benefits cost | 84 | 70 | 114 |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service (credit) cost from plan amendments | 0 | 1 | (1) |
Increase (decrease) in net actuarial losses | (45) | (78) | (128) |
Amortization of prior service (cost) credit in net periodic cost | (1) | (1) | (1) |
Amortization of net losses in net periodic cost | (34) | (36) | (53) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (5) | (16) | (3) |
Deconsolidation of Venezuelan subsidiary | (62) | 0 | 0 |
Total recognized in other comprehensive loss (income) before tax and minority | (147) | (130) | (186) |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | (63) | (60) | (72) |
Other Postretirement Benefits | |||
Benefits cost: | |||
Service cost | 3 | 4 | 6 |
Interest cost | 15 | 19 | 19 |
Expected return on plan assets | 0 | (1) | (1) |
Amortization of prior service cost (credit) | (45) | (45) | (45) |
Amortization of net losses | 7 | 8 | 12 |
Net periodic cost | (20) | (15) | (9) |
Curtailments/settlements | 0 | 0 | 0 |
Total benefits cost | (20) | (15) | (9) |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service (credit) cost from plan amendments | 0 | 0 | 0 |
Increase (decrease) in net actuarial losses | (19) | 3 | (51) |
Amortization of prior service (cost) credit in net periodic cost | 45 | 45 | 47 |
Amortization of net losses in net periodic cost | (7) | (8) | (13) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 4 | 0 | 0 |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) before tax and minority | 23 | 40 | (17) |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | $ 3 | $ 25 | $ (26) |
Pension, Other Postretirement93
Pension, Other Postretirement Benefits and Savings Plans - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in benefit obligation: | |||
Curtailments/settlements | $ 139 | $ 39 | $ 0 |
U.S. | |||
Change in benefit obligation: | |||
Beginning balance | (6,507) | (5,981) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (4) | (15) | (45) |
Interest cost | (238) | (256) | (243) |
Plan amendments | 0 | 1 | |
Actuarial gain (loss) | 262 | (693) | |
Participant contributions | 0 | 0 | |
Curtailments/settlements | 285 | 1 | |
Divestitures | 500 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit payments | 364 | 436 | |
Ending balance | (5,338) | (6,507) | (5,981) |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 6,250 | 4,800 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | (117) | 711 | |
Company contributions to plan assets | 0 | 1,167 | |
Cash funding of direct participant payments | 7 | 9 | |
Participant contributions | 0 | 0 | |
Settlements | (285) | (1) | |
Divestitures | (480) | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit payments | (364) | (436) | |
Ending balance | 5,011 | 6,250 | 4,800 |
Funded status at end of year | (327) | (257) | |
Non-U.S. | |||
Change in benefit obligation: | |||
Beginning balance | (3,178) | (3,129) | |
Newly adopted plans | (9) | (3) | |
Service cost — benefits earned | (43) | (34) | (39) |
Interest cost | (113) | (131) | (131) |
Plan amendments | 0 | (2) | |
Actuarial gain (loss) | (5) | (394) | |
Participant contributions | (2) | (2) | |
Curtailments/settlements | 19 | 69 | |
Divestitures | 0 | 0 | |
Deconsolidation of Venezuelan subsidiary | 80 | 0 | |
Foreign currency translation | 303 | 284 | |
Benefit payments | 140 | 164 | |
Ending balance | (2,808) | (3,178) | (3,129) |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 2,721 | 2,455 | |
Newly adopted plans | 9 | 0 | |
Actual return on plan assets | 60 | 505 | |
Company contributions to plan assets | 60 | 118 | |
Cash funding of direct participant payments | 36 | 44 | |
Participant contributions | 2 | 2 | |
Settlements | (18) | (39) | |
Divestitures | 0 | 0 | |
Foreign currency translation | (237) | (200) | |
Benefit payments | (140) | (164) | |
Ending balance | 2,493 | 2,721 | 2,455 |
Funded status at end of year | (315) | (457) | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Beginning balance | (361) | (388) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (3) | (4) | (6) |
Interest cost | (15) | (19) | (19) |
Plan amendments | 0 | 0 | |
Actuarial gain (loss) | 22 | 0 | |
Participant contributions | (15) | (16) | |
Curtailments/settlements | 0 | 0 | |
Divestitures | 6 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | |
Foreign currency translation | 35 | 17 | |
Benefit payments | 40 | 49 | |
Ending balance | (291) | (361) | (388) |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 5 | 5 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions to plan assets | 2 | 2 | |
Cash funding of direct participant payments | 23 | 31 | |
Participant contributions | 15 | 16 | |
Settlements | 0 | 0 | |
Divestitures | 0 | 0 | |
Foreign currency translation | (2) | 0 | |
Benefit payments | (40) | (49) | |
Ending balance | 3 | 5 | $ 5 |
Funded status at end of year | $ (288) | $ (356) |
Pension, Other Postretirement94
Pension, Other Postretirement Benefits and Savings Plans - Funded Status Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ (4,957) | $ (4,730) |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 9 |
Current liabilities | (12) | (10) |
Noncurrent liabilities | (315) | (256) |
Net amount recognized | (327) | (257) |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 249 | 274 |
Current liabilities | (19) | (24) |
Noncurrent liabilities | (545) | (707) |
Net amount recognized | (315) | (457) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (23) | (28) |
Noncurrent liabilities | (265) | (328) |
Net amount recognized | $ (288) | $ (356) |
Pension, Other Postretirement95
Pension, Other Postretirement Benefits and Savings Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | $ (104) | $ (152) |
Net actuarial loss | 74 | 99 |
Gross amount recognized | (30) | (53) |
Deferred income taxes | (9) | (1) |
Minority shareholders’ equity | 0 | 1 |
Net amount recognized | (39) | (53) |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | (4) | (4) |
Net actuarial loss | 2,643 | 2,985 |
Gross amount recognized | 2,639 | 2,981 |
Deferred income taxes | (128) | (177) |
Minority shareholders’ equity | 0 | (62) |
Net amount recognized | 2,511 | 2,742 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | 2 | 4 |
Net actuarial loss | 693 | 838 |
Gross amount recognized | 695 | 842 |
Deferred income taxes | (96) | (137) |
Minority shareholders’ equity | 0 | (109) |
Net amount recognized | $ 599 | $ 596 |
Pension, Other Postretirement96
Pension, Other Postretirement Benefits and Savings Plans - Weighted Average Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 4.20% | 3.89% | |
Discount rate, benefit costs | 3.89% | 4.40% | 3.77% |
Expected long term return on plan assets, benefit costs | 5.00% | 5.47% | 7.16% |
Non-U.S. | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.47% | 3.31% | |
Rate of compensation increase, benefit obligations | 2.63% | 2.88% | |
Discount rate, benefit costs | 3.31% | 4.36% | 4.12% |
Expected long term return on plan assets, benefit costs | 4.12% | 5.12% | 5.01% |
Rate of compensation increase, benefit cost | 2.88% | 3.11% | 3.23% |
U.S. Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.86% | 3.59% | |
Discount rate, benefit costs | 3.59% | 4.06% | 3.30% |
Non-U.S. Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 5.30% | 4.89% | |
Discount rate, benefit costs | 4.89% | 6.62% | 5.64% |
Pension, Other Postretirement97
Pension, Other Postretirement Benefits and Savings Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | $ 421 |
2,017 | 405 |
2,018 | 394 |
2,019 | 384 |
2,020 | 376 |
2021-2025 | 1,767 |
Non-U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 134 |
2,017 | 128 |
2,018 | 131 |
2,019 | 135 |
2,020 | 138 |
2021-2025 | 742 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 25 |
Subsidy Receipts in 2016 | 1 |
2,017 | 25 |
Subsidy Receipts in 2017 | 1 |
2,018 | 24 |
Subsidy Receipts in 2018 | 1 |
2,019 | 23 |
Subsidy Receipts in 2019 | 1 |
2,020 | 22 |
Subsidy Receipts in 2020 | 1 |
2021-2025 | 103 |
Subsidy Receipts in 2021-2025 | $ 5 |
Pension, Other Postretirement98
Pension, Other Postretirement Benefits and Savings Plans - Selected Pension Plan Information (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | ||
All plans: | ||
Accumulated benefit obligation | $ 5,329 | $ 6,495 |
Plans not fully-funded: | ||
Projected benefit obligation | 5,336 | 5,087 |
Accumulated benefit obligation | 5,327 | 5,076 |
Fair value of plan assets | 5,009 | 4,822 |
Non-U.S. | ||
All plans: | ||
Accumulated benefit obligation | 2,722 | 3,040 |
Plans not fully-funded: | ||
Projected benefit obligation | 876 | 1,112 |
Accumulated benefit obligation | 811 | 994 |
Fair value of plan assets | $ 316 | $ 384 |
Pension, Other Postretirement99
Pension, Other Postretirement Benefits and Savings Plans - Health Care Cost Trends (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for the next year | 6.50% | 7.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,022 | 2,022 |
Accumulated other postretirement benefits obligation, effect of 1% increase | $ 15 | |
Accumulated other postretirement benefits obligation, effect of 1% decrease | (13) | |
Aggregate service and interest cost, effect of 1% Increase | 1 | |
Aggregate service and interest costs, effect of 1% Decrease | $ (1) |
Pension, Other Postretiremen100
Pension, Other Postretirement Benefits and Savings Plans - Pension Plan Weighted Average Investment Allocation (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 100.00% | 100.00% |
Cash and short term securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 5.00% | 4.00% |
Cash and short term securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 1.00% | 1.00% |
Equity securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 6.00% | 6.00% |
Equity securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 12.00% | 15.00% |
Debt securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 89.00% | 90.00% |
Debt securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 74.00% | 73.00% |
Alternatives | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 0.00% | 0.00% |
Alternatives | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, actual plan asset allocations | 13.00% | 11.00% |
Pension, Other Postretiremen101
Pension, Other Postretirement Benefits and Savings Plans - Fair Values of Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 5,011 | $ 6,250 | $ 4,800 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,493 | 2,721 | 2,455 |
Cash and Short Term Securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 240 | 229 | |
Cash and Short Term Securities | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 30 | 32 | |
Cash and Short Term Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 237 | 218 | |
Cash and Short Term Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 28 | 27 | |
Cash and Short Term Securities | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 3 | 11 | |
Cash and Short Term Securities | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2 | 5 | |
Cash and Short Term Securities | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash and Short Term Securities | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 19 | 19 | |
Non-U.S. Companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 19 | 19 | |
Non-U.S. Companies | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Non-U.S. Companies | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 6 | 12 | |
Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 231 | 328 | |
Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 17 | 19 | |
Commingled Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 6 | 12 | |
Commingled Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 214 | 309 | |
Commingled Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 61 | 70 | |
Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 3 | 7 | |
Mutual Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 58 | 63 | |
Mutual Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Partnership Interests | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 295 | 362 | |
Partnership Interests | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Partnership Interests | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Partnership Interests | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Partnership Interests | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 75 | 133 | |
Partnership Interests | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Partnership Interests | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 220 | 229 | |
Partnership Interests | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Corporate Bonds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,413 | 2,678 | |
Corporate Bonds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 151 | 179 | |
Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 14 | 17 | |
Corporate Bonds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,413 | 2,678 | |
Corporate Bonds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 137 | 162 | |
Corporate Bonds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Corporate Bonds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Government Bonds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 1,091 | 1,401 | |
Government Bonds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,097 | 616 | |
Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 67 | 57 | |
Government Bonds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 1,091 | 1,401 | |
Government Bonds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,030 | 559 | |
Government Bonds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Government Bonds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Repurchase Agreements | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Repurchase Agreements | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | (719) | ||
Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Repurchase Agreements | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Repurchase Agreements | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | (719) | ||
Repurchase Agreements | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Repurchase Agreements | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | ||
Asset Backed Securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 158 | 123 | |
Asset Backed Securities | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 11 | 4 | |
Asset Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2 | 2 | |
Asset Backed Securities | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 158 | 123 | |
Asset Backed Securities | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2 | 2 | |
Asset Backed Securities | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset Backed Securities | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Purchases, sales, issuances and settlements (net) | 7 | ||
Plan assets, fair value | 7 | 0 | |
Realized gains (losses) | 0 | ||
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | ||
Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 714 | 960 | |
Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 342 | 1,204 | |
Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 714 | 960 | |
Commingled Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 342 | 1,204 | |
Commingled Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Commingled Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 86 | 468 | |
Mutual Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 8 | 28 | |
Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 3 | 23 | |
Mutual Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 86 | 468 | |
Mutual Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 5 | 5 | |
Mutual Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 125 | 129 | |
Alternatives, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 6 | 7 | |
Alternatives, Commingled Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Commingled Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Purchases, sales, issuances and settlements (net) | 1 | (42) | |
Plan assets, fair value | 119 | 122 | 163 |
Realized gains (losses) | 0 | 1 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 2 | 7 | |
Alternatives, Real Estate | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 143 | 136 | |
Alternatives, Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2 | 2 | |
Alternatives, Real Estate | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Purchases, sales, issuances and settlements (net) | 2 | (47) | |
Plan assets, fair value | 141 | 134 | $ 170 |
Realized gains (losses) | 0 | 1 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 12 | 18 | |
Alternatives, Other Investments | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 2 | |
Alternatives, Other Investments | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 68 | 24 | |
Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 1 | 3 | |
Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | (2) | 0 | |
Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 6 | 0 | |
Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2 | 2 | |
Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 61 | 21 | |
Total Investments | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 5,003 | 6,235 | |
Total Investments | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,567 | 2,769 | |
Total Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 237 | 218 | |
Total Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 154 | 174 | |
Total Investments | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 4,544 | 5,786 | |
Total Investments | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 2,085 | 2,318 | |
Total Investments | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 222 | 231 | |
Total Investments | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 328 | 277 | |
Other | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 8 | 15 | |
Other | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ (74) | $ (48) |
Pension, Other Postretiremen102
Pension, Other Postretirement Benefits and Savings Plans - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 6,250 | $ 4,800 |
Foreign currency translation | 0 | 0 |
Ending balance | 5,011 | 6,250 |
U.S. | Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
U.S. | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
U.S. | Asset Backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 123 | |
Ending balance | 158 | 123 |
U.S. | Significant Other Unobservable Inputs (Level 3) | Partnership Interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 229 | 209 |
Realized gains (losses) | 21 | 31 |
Unrealized (losses) gains relating to instruments still held at the reporting date | (12) | (15) |
Purchases, sales, issuances and settlements (net) | (18) | 4 |
Foreign currency translation | 0 | 0 |
Ending balance | 220 | 229 |
U.S. | Significant Other Unobservable Inputs (Level 3) | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 2 | 6 |
Realized gains (losses) | 0 | 0 |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | 0 |
Purchases, sales, issuances and settlements (net) | 0 | (4) |
Foreign currency translation | 0 | 0 |
Ending balance | 2 | 2 |
U.S. | Significant Other Unobservable Inputs (Level 3) | Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
U.S. | Significant Other Unobservable Inputs (Level 3) | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
U.S. | Significant Other Unobservable Inputs (Level 3) | Asset Backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Non-U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 2,721 | 2,455 |
Foreign currency translation | (237) | (200) |
Ending balance | 2,493 | 2,721 |
Non-U.S. | Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 129 | |
Ending balance | 125 | 129 |
Non-U.S. | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 136 | |
Ending balance | 143 | 136 |
Non-U.S. | Asset Backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 4 | |
Ending balance | 11 | 4 |
Non-U.S. | Significant Other Unobservable Inputs (Level 3) | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 21 | 19 |
Realized gains (losses) | 0 | 0 |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | 0 |
Purchases, sales, issuances and settlements (net) | 44 | 5 |
Foreign currency translation | (4) | (3) |
Ending balance | 61 | 21 |
Non-U.S. | Significant Other Unobservable Inputs (Level 3) | Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 122 | 163 |
Realized gains (losses) | 0 | 1 |
Unrealized (losses) gains relating to instruments still held at the reporting date | 2 | 7 |
Purchases, sales, issuances and settlements (net) | 1 | (42) |
Foreign currency translation | (6) | (7) |
Ending balance | 119 | 122 |
Non-U.S. | Significant Other Unobservable Inputs (Level 3) | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 134 | 170 |
Realized gains (losses) | 0 | 1 |
Unrealized (losses) gains relating to instruments still held at the reporting date | 12 | 18 |
Purchases, sales, issuances and settlements (net) | 2 | (47) |
Foreign currency translation | (7) | (8) |
Ending balance | 141 | 134 |
Non-U.S. | Significant Other Unobservable Inputs (Level 3) | Asset Backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 0 | |
Realized gains (losses) | 0 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | |
Purchases, sales, issuances and settlements (net) | 7 | |
Foreign currency translation | 0 | |
Ending balance | $ 7 | $ 0 |
Pension, Other Postretiremen103
Pension, Other Postretirement Benefits and Savings Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailments/settlements | $ (137) | $ (33) | |||
Defined contribution plans, contribution expenses | 125 | 112 | $ 106 | ||
U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, Lump Sum Program, payments | 190 | ||||
Total benefits cost | 190 | 107 | 175 | ||
Curtailments/settlements | (137) | (32) | $ 0 | ||
Pension contributions | $ 1,167 | ||||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in 2016 | (108) | ||||
Postretirement benefits funded status | $ (327) | $ (257) | |||
Weighted average discount rate | 3.89% | 4.40% | 3.77% | ||
Assumed weighted average long term rate of return | 5.00% | 5.47% | 7.16% | ||
Company contributions to plan assets | $ 0 | $ 1,167 | |||
U.S. Pension Plans | Debt securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation | 94.00% | ||||
U.S. Pension Plans | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation | 6.00% | ||||
Other Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension contributions | 907 | ||||
Curtailment gains (charges) | (33) | ||||
United States Postretirement Benefit Plan of US Entity | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefits cost | $ (28) | (24) | $ (24) | ||
Postretirement benefits funded status | $ (164) | $ (190) | |||
Weighted average discount rate | 3.59% | 4.06% | 3.30% | ||
Foreign Postretirement Benefit Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefits cost | $ 8 | $ 9 | $ 15 | ||
Postretirement benefits funded status | $ (124) | $ (166) | |||
Weighted average discount rate | 4.89% | 6.62% | 5.64% | ||
Non-U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefits cost | $ 84 | $ 70 | $ 114 | ||
Curtailments/settlements | (2) | 13 | $ (4) | ||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in 2016 | (27) | ||||
Postretirement benefits funded status | $ (315) | $ (457) | |||
Weighted average discount rate | 3.31% | 4.36% | 4.12% | ||
Assumed weighted average long term rate of return | 4.12% | 5.12% | 5.01% | ||
Unfunded pension plans, accumulated pension benefit obligation | $ 233 | $ 288 | |||
Unfunded pension plans, pension benefit obligation | 256 | 348 | |||
Unfunded pension plans, AOCL adjustment | 68 | 132 | |||
Company contributions to plan assets | $ 60 | 118 | |||
Non-U.S. Pension Plans | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation | 10.00% | ||||
Non-U.S. Pension Plans | Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation | 80.00% | ||||
Non-U.S. Pension Plans | Alternatives | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation | 10.00% | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total benefits cost | $ (20) | (15) | $ (9) | ||
Curtailments/settlements | 0 | 0 | $ 0 | ||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in 2016 | (6) | ||||
Estimated prior service credit that will be amortized from AOCL into benefits cost in 2016 | (44) | ||||
Postretirement benefits funded status | (288) | (356) | |||
Company contributions to plan assets | 2 | $ 2 | |||
Amiens Restructuring Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gains (charges) | $ 22 | ||||
Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contribution to funded non-U.S. pension plans in 2016 | 50 | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contribution to funded non-U.S. pension plans in 2016 | $ 75 | ||||
Salaried Employees | U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contributions to plan assets | $ 868 | ||||
Discretionary contributions to plan assets | $ 834 |
Stock Compensation Plans - Text
Stock Compensation Plans - Textual (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Potential shares of common stock issued under current stock compensation plan | 11,000,000 | |||
Common stock shares | 1 | |||
Number of shares that count towards shares authorized limit | 1.61 | |||
Days after termination of employment | 90 days | |||
Aggregate intrinsic value of options exercised | $ 40 | $ 37 | $ 23 | |
Other options exercise price range, lower range limit | $ 6.22 | |||
Other options exercise price range, upper range limit | 36.25 | |||
Weighted average exercise price, other options outstanding | 17.15 | $ 16.75 | ||
Weighted average exercise price, other options exercisable | $ 15.55 | |||
Weighted average remaining contractual term, other options outstanding (in years) | 5 years 9 months 18 days | |||
Weighted average remaining contractual term, other options exercisable (in years) | 4 years 8 months 12 days | |||
Unvested portion of all stock-based awards | $ 32 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [1] | 7 years 3 months 18 days | 7 years 4 months 23 days | 6 years 3 months |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of units earned to units granted | 0.00% | 0.00% | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of units earned to units granted | 200.00% | 200.00% | ||
All Other Grant Dates | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Weighted average exercise price, other options outstanding | $ 18.65 | |||
Weighted average exercise price, other options exercisable | $ 16.63 | |||
Weighted average remaining contractual term, other options outstanding (in years) | 6 years 1 month 6 days | |||
Weighted average remaining contractual term, other options exercisable (in years) | 5 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 3 years | |||
Employee Stock Option and Stock Appreciation Rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award performance period | 3 years | |||
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of units earned to units granted | 0.00% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of units earned to units granted | 200.00% | |||
Year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 25.00% | |||
Year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 50.00% | |||
Year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 75.00% | |||
Year 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting percentage | 100.00% | |||
[1] | We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. |
Stock Compensation Plans - Opti
Stock Compensation Plans - Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | ||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, beginning of period (in shares) | 10,350,633 | ||||
Options granted (in shares) | 802,871 | ||||
Options exercised (in shares) | (3,028,112) | ||||
Options expired (in shares) | (52,687) | ||||
Options cancelled (in shares) | (290,009) | ||||
Options outstanding, end of period (in shares) | 7,782,696 | 10,350,633 | |||
Options Weighted Average Exercise Price | |||||
Options outstanding weighted average exercise price, beginning of period | $ 16.75 | ||||
Options granted weighted average exercise price | 27.32 | ||||
Options exercised weighted average exercise price | 18.35 | ||||
Options expired weighted average exercise price | 17.15 | ||||
Options cancelled weighted average exercise price | 18.67 | ||||
Options outstanding weighted average exercise price, end of period | $ 17.15 | $ 16.75 | |||
Vested and expected to vest, options | 7,493,529 | ||||
Vested and expected to vest, options weighted average exercise price | $ 17.03 | ||||
Options exercisable | 5,153,908 | ||||
Options exercisable, weighted average exercise price | $ 15.55 | ||||
Available for grant, options | 8,645,222 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 5 years 9 months 18 days | ||||
Options vested and expected to vest, weighted average remaining contractual term (in years) | 5 years 8 months 12 days | ||||
Options exercisable, weighted average remaining contractual term (in years) | 4 years 8 months 12 days | ||||
Options exercised, aggregate intrinsic value | $ 40 | $ 37 | $ 23 | ||
Options outstanding, aggregate intrinsic value | $ 121 | ||||
Options vested and expected to vest, aggregate intrinsic value | 119 | ||||
Options exercisable, aggregate intrinsic value | $ 89 | ||||
Options outstanding (in shares) | 10,350,633 | 10,350,633 | 7,782,696 | ||
Weighted average grant date fair value, stock options | $ 11.51 | $ 11.48 | $ 6.28 | ||
Black-Scholes model assumptions: | |||||
Expected term (years) | [1] | 7 years 3 months 18 days | 7 years 4 months 23 days | 6 years 3 months | |
Interest rate | [1] | 1.83% | 2.10% | 1.11% | |
Volatility | [1] | 42.00% | 43.45% | 46.66% | |
Dividend yield | [1] | 0.88% | 0.81% | 0.00% | |
Grant Date February 23 2015 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 719,164 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 0 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 9 years 2 months 6 days | ||||
Options outstanding (in shares) | 719,164 | 719,164 | |||
Options exercise price | $ 27.16 | ||||
Grant Date February 24 2014 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 502,513 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 111,397 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 8 years 2 months 12 days | ||||
Options outstanding (in shares) | 502,513 | 502,513 | |||
Options exercise price | $ 26.44 | ||||
Grant Date February 28 2013 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 1,512,308 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 695,216 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 7 years 2 months 12 days | ||||
Options outstanding (in shares) | 1,512,308 | 1,512,308 | |||
Options exercise price | $ 12.98 | ||||
Grant Date February 27 2012 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 1,139,048 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 805,963 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 6 years 2 months 12 days | ||||
Options outstanding (in shares) | 1,139,048 | 1,139,048 | |||
Options exercise price | $ 12.94 | ||||
Grant Date February 22 2011 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 729,512 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 729,512 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 5 years 2 months 12 days | ||||
Options outstanding (in shares) | 729,512 | 729,512 | |||
Options exercise price | $ 13.91 | ||||
Grant Date February 23 2010 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 547,334 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 547,334 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 4 years 2 months 12 days | ||||
Options outstanding (in shares) | 547,334 | 547,334 | |||
Options exercise price | $ 12.74 | ||||
Grant Date February 26 2009 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 489,562 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 489,562 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 3 years 2 months 12 days | ||||
Options outstanding (in shares) | 489,562 | 489,562 | |||
Options exercise price | $ 4.81 | ||||
Grant Date February 21 2008 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 486,390 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 486,390 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 2 years 2 months 12 days | ||||
Options outstanding (in shares) | 486,390 | 486,390 | |||
Options exercise price | $ 26.74 | ||||
Grant Date February 27 2007 | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 477,584 | ||||
Options Weighted Average Exercise Price | |||||
Options exercisable | 477,584 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 1 year 2 months 12 days | ||||
Options outstanding (in shares) | 477,584 | 477,584 | |||
Options exercise price | $ 24.71 | ||||
All Other Grant Dates | |||||
Summary of Stock Options Outstanding Activity | |||||
Options outstanding, end of period (in shares) | 1,179,281 | ||||
Options Weighted Average Exercise Price | |||||
Options outstanding weighted average exercise price, end of period | $ 18.65 | ||||
Options exercisable | 810,950 | ||||
Options exercisable, weighted average exercise price | $ 16.63 | ||||
Options outstanding, weighted average remaining contractual term (in years) | 6 years 1 month 6 days | ||||
Options exercisable, weighted average remaining contractual term (in years) | 5 years | ||||
Options outstanding (in shares) | 1,179,281 | 1,179,281 | |||
[1] | We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation | |||
Stock-based compensation expense recognized | $ 19 | $ 20 | $ 18 |
Tax benefit | (7) | (7) | 0 |
After-tax stock-based compensation expense | 12 | 13 | 18 |
Cash payments to settle SARs | 2 | 2 | 1 |
Cash received from stock option exercises | $ 53 | $ 39 | $ 22 |
Restricted Stock Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period | 482,177 | ||
Units granted | 330,388 | ||
Units vested | (87,972) | ||
Units forfeited | (51,500) | ||
Unvested units, end of period | 673,093 | 482,177 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Weighted average grant date fair value, unvested units, beginning of period (in dollars per share) | $ 22.36 | ||
Weighted average grant date fair value, units granted (in dollars per share) | 28.43 | ||
Weighted average grant date fair value, units vested (in dollars per share) | 13.60 | ||
Weighted average grant date fair value, units forfeited (in dollars per share) | 26.33 | ||
Weighted average grant date fair value, unvested units, end of period (in dollars per share) | $ 26.16 | $ 22.36 | |
Performance Share Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period | 322,098 | ||
Units granted | 225,392 | ||
Units vested | (157,989) | ||
Units forfeited | (71,231) | ||
Unvested units, end of period | 318,270 | 322,098 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Weighted average grant date fair value, unvested units, beginning of period (in dollars per share) | $ 20.47 | ||
Weighted average grant date fair value, units granted (in dollars per share) | 28.44 | ||
Weighted average grant date fair value, units vested (in dollars per share) | 12.29 | ||
Weighted average grant date fair value, units forfeited (in dollars per share) | 23.93 | ||
Weighted average grant date fair value, unvested units, end of period (in dollars per share) | $ 28.64 | $ 20.47 |
Commitments and Contingent L107
Commitments and Contingent Liabilities (Details) - Asbestos Related Product Liability $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)claims | Dec. 31, 2014USD ($)claims | Dec. 31, 2013USD ($)claims | |
Number of claims filed | |||
Pending claims, beginning of year | 73,800 | 74,000 | 73,200 |
New claims filed during the year | 1,900 | 1,900 | 2,600 |
Claims settled/dismissed during the year | (8,300) | (2,100) | (1,800) |
Pending claims, end of year | 67,400 | 73,800 | 74,000 |
Payments | $ | $ 19 | $ 20 | $ 19 |
Commitments and Contingent L108
Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Warranty reserve, beginning of period | $ 22 | $ 21 |
Payments made during the period | (37) | (39) |
Expense recorded during the period | 33 | 41 |
Translation adjustment | (1) | (1) |
Warranty reserve, end of period | $ 17 | $ 22 |
Commitments and Contingent L109
Commitments and Contingent Liabilities (Textual) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)Employeesclaims | Dec. 31, 2015EUR (€)claims | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Loss Contingencies [Line Items] | ||||
Anticipated costs related to various environmental matters | $ 50 | |||
Anticipated costs for environmental matters included in other current liabilities | $ 12 | $ 9 | ||
Affect of the amount of the environmental loss liability | The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. | |||
Workers compensation liability | $ 264 | 306 | ||
Current portion of workers compensation liability | 54 | 71 | ||
Loss Contingency, Receivable, Additions | 21 | |||
Commitments on contracts that extend beyond 2016 | 4,000 | |||
Off-balance sheet financial guarantees written and other commitments | $ 49 | 7 | ||
Triggering event | non-payment or another specified event, | |||
Recourse | recourse to the affiliate, lessor, customer, or SRI. | |||
Expiration of guarantees | expire at various times through 2020. | |||
Warranty reserve | $ 17 | 22 | $ 21 | |
Amiens Labor Claims | ||||
Loss Contingencies [Line Items] | ||||
Contingent loss | $ 121 | € 111 | ||
Loss contingency, number of plaintiffs | Employees | 800 | |||
Workers' Compensation | ||||
Loss Contingencies [Line Items] | ||||
Potential workers' compensation liability in excess of recorded amount | $ 31 | |||
General Product Liability | ||||
Loss Contingencies [Line Items] | ||||
Recorded liability for potential product liability and other tort claims, including legal fees | 315 | 324 | ||
Asbestos Related Product Liability | ||||
Loss Contingencies [Line Items] | ||||
Recorded liability for potential product liability and other tort claims, including legal fees | $ 171 | 151 | ||
Approximate asbestos claims settled and dismissed to date | claims | 117,800 | 117,800 | ||
Sum of accrued asbestos related liability and gross payments to date, including legal costs | $ 497 | 458 | ||
Asbestos insurance receivable | $ 117 | 71 | ||
Expected percentage of asbestos claim related losses recoverable through insurance | 70.00% | 70.00% | ||
Current portion of asbestos insurance receivable | $ 12 | 13 | ||
Aggregate limits of excess insurance policies | 410 | |||
Workers' Compensation Claims | ||||
Loss Contingencies [Line Items] | ||||
Guarantee to insurance company | 46 | |||
Other Current Liabilities | General Product Liability | ||||
Loss Contingencies [Line Items] | ||||
Anticipated costs related to various environmental matters | 46 | |||
Recorded liability for potential product liability and other tort claims, including legal fees | 45 | $ 46 | ||
Accounts Receivable | ||||
Loss Contingencies [Line Items] | ||||
Indemnification asset | 6 | |||
Other Assets | ||||
Loss Contingencies [Line Items] | ||||
Indemnification asset | $ 26 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | Mar. 01, 2016 | Feb. 01, 2016 | Jan. 15, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Feb. 04, 2016 | May. 27, 2014 | Apr. 01, 2014 | Sep. 18, 2013 |
Class of Stock [Line Items] | |||||||||||
Preferred stock dividends paid | $ 0 | $ 15,000,000 | $ 29,000,000 | ||||||||
Common stock dividends paid | $ 68,000,000 | $ 60,000,000 | $ 12,000,000 | ||||||||
Cash dividends declared per common share (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.05 | ||||||||
Payments for repurchase of common stock | $ 180,000,000 | $ 234,000,000 | $ 4,000,000 | ||||||||
Aggregate treasury stock shares repurchased | 14,507,718 | ||||||||||
Aggregate treasury stock repurchased, average cost per share | $ 28.49 | ||||||||||
Aggregate payments for repurchase of common stock | $ 413,000,000 | ||||||||||
Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares converted from preferred stock | 27,573,735 | ||||||||||
Rate of conversion from preferred to common stock (in shares) | 2.7574 | ||||||||||
Preferred stock dividends paid | 15,000,000 | 29,000,000 | |||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock dividends paid | $ 68,000,000 | $ 60,000,000 | $ 12,000,000 | ||||||||
Stock repurchase program, authorized amount | $ 450,000,000 | $ 100,000,000 | |||||||||
Treasury stock shares repurchased | 5,571,909 | ||||||||||
Treasury stock repurchased, average cost per share | $ 32.32 | ||||||||||
Payments for repurchase of common stock | $ 180,000,000 | ||||||||||
Subsequent Event | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends payable, date declared | Jan. 15, 2016 | ||||||||||
Cash dividends declared per common share (in dollars per share) | $ 0.07 | ||||||||||
Dividends declared on common stock | $ 19,000,000 | ||||||||||
Dividends payable, date of record | Feb. 1, 2016 | ||||||||||
Stock repurchase program, authorized amount | $ 1,100,000,000 | ||||||||||
Payments for Share Repurchases Related to Employee Stock Based Compensation | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Treasury stock shares repurchased | 75,520 | ||||||||||
Scenario, Forecast | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends payable, date to be paid | Mar. 1, 2016 |
Reclassifications out of Acc111
Reclassifications out of Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ (4,131) | $ (3,935) |
Other comprehensive income (loss) before reclassifications | (308) | (303) |
Amounts reclassified from accumulated other comprehensive loss | 288 | 108 |
Purchase of subsidiary shares from minority interest | (107) | (1) |
Deconsolidation of Venezuelan subsidiary | 248 | |
Balance at end of period | (4,010) | (4,131) |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (894) | (690) |
Other comprehensive income (loss) before reclassifications | (251) | (206) |
Amounts reclassified from accumulated other comprehensive loss | 16 | 3 |
Purchase of subsidiary shares from minority interest | (3) | (1) |
Deconsolidation of Venezuelan subsidiary | 186 | |
Balance at end of period | (946) | (894) |
Unrecognized Net Actuarial Losses and Prior Service Costs | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (3,285) | (3,278) |
Other comprehensive income (loss) before reclassifications | (68) | (112) |
Amounts reclassified from accumulated other comprehensive loss | 325 | 105 |
Purchase of subsidiary shares from minority interest | (105) | 0 |
Deconsolidation of Venezuelan subsidiary | 62 | |
Balance at end of period | (3,071) | (3,285) |
Deferred Derivative Gains (Losses) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 12 | (1) |
Other comprehensive income (loss) before reclassifications | 15 | 13 |
Amounts reclassified from accumulated other comprehensive loss | (21) | 0 |
Purchase of subsidiary shares from minority interest | 1 | 0 |
Deconsolidation of Venezuelan subsidiary | 0 | |
Balance at end of period | 7 | 12 |
Unrealized Investment Gains | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 36 | 34 |
Other comprehensive income (loss) before reclassifications | (4) | 2 |
Amounts reclassified from accumulated other comprehensive loss | (32) | 0 |
Purchase of subsidiary shares from minority interest | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | |
Balance at end of period | $ 0 | $ 36 |
Reclassifications out of Acc112
Reclassifications out of Accumulated Other Comprehensive Loss Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | $ (115) | $ 302 | $ 97 | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ 646 | 646 | 0 | 0 |
Cost of Goods Sold | 12,164 | 13,906 | 15,422 | |
United States and Foreign Tax (Benefit) Expense | 232 | (1,834) | 138 | |
Minority Shareholders' Net Income | 69 | 69 | 46 | |
Goodyear Net Income | (307) | (2,452) | $ (629) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Benefit Cost | 491 | 163 | ||
Goodyear Net Income | 536 | 108 | ||
Foreign Currency Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 16 | 3 | ||
Loss on Deconsolidation of Venezuelan Subsidiary | 186 | 0 | ||
United States and Foreign Tax (Benefit) Expense | 0 | 0 | ||
Minority Shareholders' Net Income | 0 | 0 | ||
Goodyear Net Income | 202 | 3 | ||
Amortization of Prior Service Cost and Unrecognized Gains and Losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Benefit Cost | 103 | 115 | ||
Immediate Recognition of Prior Service Cost and Unrecognized Gains and Losses Due to Curtailments and Settlements | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total Benefit Cost | 142 | 48 | ||
Immediate Recognition of Prior Service Cost and Unrecognized Gains and Losses due to Divestitures | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 184 | 0 | ||
Unrecognized Net Actuarial Losses and Prior Service Costs | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss on Deconsolidation of Venezuelan Subsidiary | 62 | 0 | ||
United States and Foreign Tax (Benefit) Expense | (101) | (49) | ||
Minority Shareholders' Net Income | (3) | (9) | ||
Goodyear Net Income | 387 | 105 | ||
Deferred Derivative Gains (Losses) | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Goods Sold | (28) | 0 | ||
United States and Foreign Tax (Benefit) Expense | 3 | 1 | ||
Minority Shareholders' Net Income | 4 | (1) | ||
Goodyear Net Income | (21) | 0 | ||
Unrealized Investment Gains | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | (30) | 0 | ||
United States and Foreign Tax (Benefit) Expense | (2) | 0 | ||
Minority Shareholders' Net Income | 0 | 0 | ||
Goodyear Net Income | $ (32) | $ 0 |
Consolidating Financial Info113
Consolidating Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,476 | $ 2,161 | $ 2,996 | $ 2,281 |
Accounts Receivable | 2,033 | 2,126 | ||
Accounts Receivable From Affiliates | 0 | 0 | ||
Inventories | 2,464 | 2,671 | ||
Prepaid Expenses and Other Current Assets | 168 | 201 | ||
Total Current Assets | 6,141 | 7,159 | ||
Goodwill | 555 | 601 | 668 | |
Intangible Assets | 138 | 138 | ||
Deferred Income Taxes | 2,141 | 2,253 | ||
Other Assets | 687 | 740 | ||
Investments in Subsidiaries | 0 | 0 | ||
Property, Plant and Equipment | 6,777 | 7,153 | ||
Total Assets | 16,439 | 18,044 | 17,437 | |
Current Liabilities: | ||||
Accounts Payable-Trade | 2,769 | 2,878 | ||
Accounts Payable to Affiliates | 0 | 0 | ||
Compensation and Benefits | 666 | 724 | ||
Other Current Liabilities | 886 | 950 | ||
Notes Payable and Overdrafts | 49 | 30 | ||
Long Term Debt and Capital Leases Due Within One Year | 587 | 148 | ||
Total Current Liabilities | 4,957 | 4,730 | ||
Long Term Debt and Capital Leases | 5,120 | 6,216 | ||
Compensation and Benefits | 1,468 | 1,676 | ||
Deferred Income Taxes | 91 | 90 | ||
Other Long Term Liabilities | 661 | 905 | ||
Total Liabilities | $ 12,297 | $ 13,617 | ||
Commitments and Contingent Liabilities | ||||
Minority Shareholders’ Equity | $ 0 | $ 582 | ||
Goodyear Shareholders’ Equity | ||||
Common Stock | 267 | 269 | ||
Other Equity | 3,653 | 3,341 | ||
Goodyear Shareholders’ Equity | 3,920 | 3,610 | ||
Minority Shareholders’ Equity — Nonredeemable | 222 | 235 | ||
Total Shareholders’ Equity | 4,142 | 3,845 | ||
Total Liabilities and Shareholders’ Equity | 16,439 | 18,044 | ||
Parent Company | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 354 | 674 | 1,269 | 802 |
Accounts Receivable | 814 | 833 | ||
Accounts Receivable From Affiliates | 0 | 0 | ||
Inventories | 1,199 | 1,151 | ||
Prepaid Expenses and Other Current Assets | 51 | 39 | ||
Total Current Assets | 2,418 | 2,697 | ||
Goodwill | 0 | 0 | ||
Intangible Assets | 118 | 114 | ||
Deferred Income Taxes | 2,049 | 2,126 | ||
Other Assets | 246 | 234 | ||
Investments in Subsidiaries | 4,088 | 4,054 | ||
Property, Plant and Equipment | 2,377 | 2,329 | ||
Total Assets | 11,296 | 11,554 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 1,002 | 910 | ||
Accounts Payable to Affiliates | 540 | 557 | ||
Compensation and Benefits | 411 | 392 | ||
Other Current Liabilities | 328 | 350 | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 6 | 6 | ||
Total Current Liabilities | 2,287 | 2,215 | ||
Long Term Debt and Capital Leases | 3,835 | 4,375 | ||
Compensation and Benefits | 725 | 666 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Long Term Liabilities | 529 | 688 | ||
Total Liabilities | $ 7,376 | 7,944 | ||
Commitments and Contingent Liabilities | ||||
Minority Shareholders’ Equity | 0 | |||
Goodyear Shareholders’ Equity | ||||
Common Stock | $ 267 | 269 | ||
Other Equity | 3,653 | 3,341 | ||
Goodyear Shareholders’ Equity | 3,920 | 3,610 | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | 3,920 | 3,610 | ||
Total Liabilities and Shareholders’ Equity | 11,296 | 11,554 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 70 | 89 | 94 | 68 |
Accounts Receivable | 136 | 166 | ||
Accounts Receivable From Affiliates | 609 | 623 | ||
Inventories | 157 | 148 | ||
Prepaid Expenses and Other Current Assets | 3 | 2 | ||
Total Current Assets | 975 | 1,028 | ||
Goodwill | 24 | 24 | ||
Intangible Assets | 0 | 0 | ||
Deferred Income Taxes | 19 | 31 | ||
Other Assets | 81 | 86 | ||
Investments in Subsidiaries | 383 | 416 | ||
Property, Plant and Equipment | 216 | 132 | ||
Total Assets | 1,698 | 1,717 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 189 | 191 | ||
Accounts Payable to Affiliates | 0 | 0 | ||
Compensation and Benefits | 29 | 31 | ||
Other Current Liabilities | 16 | 23 | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 0 | 0 | ||
Total Current Liabilities | 234 | 245 | ||
Long Term Debt and Capital Leases | 0 | 0 | ||
Compensation and Benefits | 97 | 127 | ||
Deferred Income Taxes | 1 | 1 | ||
Other Long Term Liabilities | 15 | 35 | ||
Total Liabilities | $ 347 | 408 | ||
Commitments and Contingent Liabilities | ||||
Minority Shareholders’ Equity | 0 | |||
Goodyear Shareholders’ Equity | ||||
Common Stock | $ 0 | 0 | ||
Other Equity | 1,351 | 1,309 | ||
Goodyear Shareholders’ Equity | 1,351 | 1,309 | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | 1,351 | 1,309 | ||
Total Liabilities and Shareholders’ Equity | 1,698 | 1,717 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 1,052 | 1,398 | $ 1,633 | $ 1,411 |
Accounts Receivable | 1,083 | 1,127 | ||
Accounts Receivable From Affiliates | 0 | 0 | ||
Inventories | 1,152 | 1,410 | ||
Prepaid Expenses and Other Current Assets | 111 | 160 | ||
Total Current Assets | 3,398 | 4,095 | ||
Goodwill | 407 | 462 | ||
Intangible Assets | 20 | 24 | ||
Deferred Income Taxes | 73 | 95 | ||
Other Assets | 353 | 411 | ||
Investments in Subsidiaries | 0 | 0 | ||
Property, Plant and Equipment | 4,213 | 4,721 | ||
Total Assets | 8,464 | 9,808 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 1,578 | 1,777 | ||
Accounts Payable to Affiliates | 69 | 66 | ||
Compensation and Benefits | 226 | 301 | ||
Other Current Liabilities | 547 | 581 | ||
Notes Payable and Overdrafts | 49 | 30 | ||
Long Term Debt and Capital Leases Due Within One Year | 581 | 142 | ||
Total Current Liabilities | 3,050 | 2,897 | ||
Long Term Debt and Capital Leases | 1,285 | 1,841 | ||
Compensation and Benefits | 646 | 883 | ||
Deferred Income Taxes | 92 | 91 | ||
Other Long Term Liabilities | 119 | 188 | ||
Total Liabilities | $ 5,192 | 5,900 | ||
Commitments and Contingent Liabilities | ||||
Minority Shareholders’ Equity | 392 | |||
Goodyear Shareholders’ Equity | ||||
Common Stock | $ 0 | 0 | ||
Other Equity | 3,050 | 3,281 | ||
Goodyear Shareholders’ Equity | 3,050 | 3,281 | ||
Minority Shareholders’ Equity — Nonredeemable | 222 | 235 | ||
Total Shareholders’ Equity | 3,272 | 3,516 | ||
Total Liabilities and Shareholders’ Equity | 8,464 | 9,808 | ||
Consolidating Entries and Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Accounts Receivable | 0 | 0 | ||
Accounts Receivable From Affiliates | (609) | (623) | ||
Inventories | (44) | (38) | ||
Prepaid Expenses and Other Current Assets | 3 | 0 | ||
Total Current Assets | (650) | (661) | ||
Goodwill | 124 | 115 | ||
Intangible Assets | 0 | 0 | ||
Deferred Income Taxes | 0 | 1 | ||
Other Assets | 7 | 9 | ||
Investments in Subsidiaries | (4,471) | (4,470) | ||
Property, Plant and Equipment | (29) | (29) | ||
Total Assets | (5,019) | (5,035) | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 0 | 0 | ||
Accounts Payable to Affiliates | (609) | (623) | ||
Compensation and Benefits | 0 | 0 | ||
Other Current Liabilities | (5) | (4) | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 0 | 0 | ||
Total Current Liabilities | (614) | (627) | ||
Long Term Debt and Capital Leases | 0 | 0 | ||
Compensation and Benefits | 0 | 0 | ||
Deferred Income Taxes | (2) | (2) | ||
Other Long Term Liabilities | (2) | (6) | ||
Total Liabilities | $ (618) | (635) | ||
Commitments and Contingent Liabilities | ||||
Minority Shareholders’ Equity | 190 | |||
Goodyear Shareholders’ Equity | ||||
Common Stock | $ 0 | 0 | ||
Other Equity | (4,401) | (4,590) | ||
Goodyear Shareholders’ Equity | (4,401) | (4,590) | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | (4,401) | (4,590) | ||
Total Liabilities and Shareholders’ Equity | $ (5,019) | $ (5,035) |
Consolidating Financial Info114
Consolidating Financial Information (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidating Statement of Operations | ||||
Net Sales | $ 16,443 | $ 18,138 | $ 19,540 | |
Cost of Goods Sold | 12,164 | 13,906 | 15,422 | |
Selling, Administrative and General Expense | 2,614 | 2,720 | 2,758 | |
Rationalizations | 114 | 95 | 58 | |
Interest Expense | 412 | 428 | 392 | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ 646 | 646 | 0 | 0 |
Other (income) expense | (115) | 302 | 97 | |
Income before Income Taxes | 608 | 687 | 813 | |
United States and Foreign Tax Expense | 232 | (1,834) | 138 | |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | |
Net Income | 376 | 2,521 | 675 | |
Less: Minority Shareholders’ Net Income | 69 | 69 | 46 | |
Goodyear Net Income | 307 | 2,452 | 629 | |
Less: Preferred Stock Dividends | 0 | 7 | 29 | |
Goodyear Net Income available to Common Shareholders | 307 | 2,445 | 600 | |
Comprehensive Income (Loss) | 541 | 2,277 | 1,320 | |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 6 | 20 | 78 | |
Goodyear Comprehensive Income (Loss) | 535 | 2,257 | 1,242 | |
Parent Company | ||||
Consolidating Statement of Operations | ||||
Net Sales | 7,566 | 7,915 | 8,324 | |
Cost of Goods Sold | 5,804 | 6,457 | 7,001 | |
Selling, Administrative and General Expense | 1,053 | 916 | 946 | |
Rationalizations | 13 | (6) | 6 | |
Interest Expense | 317 | 332 | 315 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 374 | |||
Other (income) expense | (433) | (91) | (251) | |
Income before Income Taxes | 438 | 307 | 307 | |
United States and Foreign Tax Expense | 104 | (2,026) | 22 | |
Equity in Earnings (Loss) of Subsidiaries | (27) | 119 | 344 | |
Net Income | 307 | 2,452 | 629 | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | 307 | 2,452 | 629 | |
Less: Preferred Stock Dividends | 7 | 29 | ||
Goodyear Net Income available to Common Shareholders | 2,445 | 600 | ||
Comprehensive Income (Loss) | 535 | 2,257 | 1,242 | |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | |
Goodyear Comprehensive Income (Loss) | 535 | 2,257 | 1,242 | |
Guarantor Subsidiaries | ||||
Consolidating Statement of Operations | ||||
Net Sales | 2,129 | 2,487 | 2,690 | |
Cost of Goods Sold | 1,915 | 2,237 | 2,415 | |
Selling, Administrative and General Expense | 172 | 166 | 171 | |
Rationalizations | 0 | 0 | 3 | |
Interest Expense | 22 | 26 | 29 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | |||
Other (income) expense | (13) | (11) | 5 | |
Income before Income Taxes | 33 | 69 | 67 | |
United States and Foreign Tax Expense | 10 | 14 | 43 | |
Equity in Earnings (Loss) of Subsidiaries | 19 | 28 | 5 | |
Net Income | 42 | 83 | 29 | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | 42 | 83 | 29 | |
Less: Preferred Stock Dividends | 0 | 0 | ||
Goodyear Net Income available to Common Shareholders | 83 | 29 | ||
Comprehensive Income (Loss) | 54 | 89 | 107 | |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | |
Goodyear Comprehensive Income (Loss) | 54 | 89 | 107 | |
Non-Guarantor Subsidiaries | ||||
Consolidating Statement of Operations | ||||
Net Sales | 10,308 | 12,051 | 12,721 | |
Cost of Goods Sold | 8,090 | 9,622 | 10,399 | |
Selling, Administrative and General Expense | 1,392 | 1,645 | 1,658 | |
Rationalizations | 101 | 101 | 49 | |
Interest Expense | 131 | 133 | 114 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 272 | |||
Other (income) expense | 177 | 228 | 83 | |
Income before Income Taxes | 145 | 322 | 418 | |
United States and Foreign Tax Expense | 112 | 174 | 88 | |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | |
Net Income | 33 | 148 | 330 | |
Less: Minority Shareholders’ Net Income | 69 | 69 | 46 | |
Goodyear Net Income | (36) | 79 | 284 | |
Less: Preferred Stock Dividends | 0 | 0 | ||
Goodyear Net Income available to Common Shareholders | 79 | 284 | ||
Comprehensive Income (Loss) | 46 | (11) | 353 | |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 32 | 46 | 69 | |
Goodyear Comprehensive Income (Loss) | 14 | (57) | 284 | |
Consolidating Entries and Eliminations | ||||
Consolidating Statement of Operations | ||||
Net Sales | (3,560) | (4,315) | (4,195) | |
Cost of Goods Sold | (3,645) | (4,410) | (4,393) | |
Selling, Administrative and General Expense | (3) | (7) | (17) | |
Rationalizations | 0 | 0 | 0 | |
Interest Expense | (58) | (63) | (66) | |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | |||
Other (income) expense | 154 | 176 | 260 | |
Income before Income Taxes | (8) | (11) | 21 | |
United States and Foreign Tax Expense | 6 | 4 | (15) | |
Equity in Earnings (Loss) of Subsidiaries | 8 | (147) | (349) | |
Net Income | (6) | (162) | (313) | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | (6) | (162) | (313) | |
Less: Preferred Stock Dividends | 0 | 0 | ||
Goodyear Net Income available to Common Shareholders | (162) | (313) | ||
Comprehensive Income (Loss) | (94) | (58) | (382) | |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (26) | (26) | 9 | |
Goodyear Comprehensive Income (Loss) | $ (68) | $ (32) | $ (391) |
Consolidating Financial Info115
Consolidating Financial Information (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||
Total Cash Flows from Operating Activities | $ 1,687 | $ 340 | $ 938 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (983) | (923) | (1,168) |
Asset Dispositions | 62 | 18 | 25 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | (320) | 0 | 0 |
Decrease (Increase) in Restricted Cash | (6) | 5 | 14 |
Short Term Securities Acquired | (77) | (72) | (105) |
Short Term Securities Redeemed | 69 | 95 | 89 |
Capital Contributions Received and Loans Incurred | 0 | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 | 0 |
Other Transactions | (7) | 26 | 9 |
Total Cash Flows from Investing Activities | (1,262) | (851) | (1,136) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 103 | 46 | 31 |
Short Term Debt and Overdrafts Paid | (84) | (24) | (120) |
Long Term Debt Incurred | 2,819 | 1,842 | 1,913 |
Long Term Debt Paid | (3,315) | (1,555) | (681) |
Common Stock Issued | 53 | 39 | 26 |
Common Stock Repurchased | (180) | (234) | (4) |
Common Stock Dividends Paid | (68) | (60) | (12) |
Preferred Stock Dividends Paid | 0 | (15) | (29) |
Capital Contributions Received and Loans Incurred | 0 | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 | 0 |
Intercompany Dividends Paid | 0 | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | (9) | (49) | (26) |
Debt Related Costs and Other Transactions | (33) | (1) | (16) |
Dissolution of Global Alliance | (271) | 0 | 0 |
Total Cash Flows from Financing Activities | (985) | (11) | 1,082 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (125) | (313) | (169) |
Net Change in Cash and Cash Equivalents | (685) | (835) | 715 |
Cash and Cash Equivalents at Beginning of the Year | 2,161 | 2,996 | 2,281 |
Cash and Cash Equivalents at End of the Year | 1,476 | 2,161 | 2,996 |
Parent Company | |||
Cash Flows from Operating Activities: | |||
Total Cash Flows from Operating Activities | 979 | (334) | 17 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (315) | (303) | (220) |
Asset Dispositions | 48 | 9 | 2 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||
Decrease (Increase) in Restricted Cash | 0 | (1) | 0 |
Short Term Securities Acquired | 0 | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 | 0 |
Capital Contributions Received and Loans Incurred | (70) | (382) | (91) |
Capital Redemptions and Loans Paid | 122 | 459 | 214 |
Other Transactions | 0 | 13 | 0 |
Total Cash Flows from Investing Activities | (215) | (205) | (95) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 55 | 22 | 14 |
Short Term Debt and Overdrafts Paid | (15) | (14) | (90) |
Long Term Debt Incurred | 1,736 | 601 | 900 |
Long Term Debt Paid | (2,341) | (608) | (11) |
Common Stock Issued | 53 | 39 | 26 |
Common Stock Repurchased | (180) | (234) | (4) |
Common Stock Dividends Paid | (68) | (60) | (12) |
Preferred Stock Dividends Paid | (15) | (29) | |
Capital Contributions Received and Loans Incurred | 90 | 457 | 170 |
Capital Redemptions and Loans Paid | (125) | (244) | (403) |
Intercompany Dividends Paid | 0 | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 |
Debt Related Costs and Other Transactions | (18) | 0 | (16) |
Dissolution of Global Alliance | (271) | ||
Total Cash Flows from Financing Activities | (1,084) | (56) | 545 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | (320) | (595) | 467 |
Cash and Cash Equivalents at Beginning of the Year | 674 | 1,269 | 802 |
Cash and Cash Equivalents at End of the Year | 354 | 674 | 1,269 |
Guarantor Subsidiaries | |||
Cash Flows from Operating Activities: | |||
Total Cash Flows from Operating Activities | 149 | 195 | 16 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (119) | (19) | (19) |
Asset Dispositions | 0 | 2 | 0 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||
Decrease (Increase) in Restricted Cash | 0 | 0 | 0 |
Short Term Securities Acquired | 0 | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 | 0 |
Capital Contributions Received and Loans Incurred | 0 | 0 | (11) |
Capital Redemptions and Loans Paid | 0 | 0 | 0 |
Other Transactions | 0 | 0 | 0 |
Total Cash Flows from Investing Activities | (119) | (17) | (30) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 0 | 0 | 0 |
Short Term Debt and Overdrafts Paid | (16) | (22) | (14) |
Long Term Debt Incurred | 0 | 0 | 0 |
Long Term Debt Paid | 0 | 0 | 0 |
Common Stock Issued | 0 | 0 | 0 |
Common Stock Repurchased | 0 | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 | 0 |
Preferred Stock Dividends Paid | 0 | 0 | |
Capital Contributions Received and Loans Incurred | 12 | 47 | 58 |
Capital Redemptions and Loans Paid | (15) | 0 | 0 |
Intercompany Dividends Paid | (17) | (203) | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 | 0 |
Dissolution of Global Alliance | 0 | ||
Total Cash Flows from Financing Activities | (36) | (178) | 44 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (13) | (5) | (4) |
Net Change in Cash and Cash Equivalents | (19) | (5) | 26 |
Cash and Cash Equivalents at Beginning of the Year | 89 | 94 | 68 |
Cash and Cash Equivalents at End of the Year | 70 | 89 | 94 |
Non-Guarantor Subsidiaries | |||
Cash Flows from Operating Activities: | |||
Total Cash Flows from Operating Activities | 612 | 758 | 1,009 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (558) | (607) | (940) |
Asset Dispositions | 14 | 7 | 23 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | (320) | ||
Decrease (Increase) in Restricted Cash | (6) | 6 | 14 |
Short Term Securities Acquired | (77) | (72) | (105) |
Short Term Securities Redeemed | 69 | 95 | 89 |
Capital Contributions Received and Loans Incurred | (90) | (457) | (170) |
Capital Redemptions and Loans Paid | 125 | 244 | 403 |
Other Transactions | (7) | 13 | 9 |
Total Cash Flows from Investing Activities | (850) | (771) | (677) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 118 | 60 | 121 |
Short Term Debt and Overdrafts Paid | (123) | (24) | (120) |
Long Term Debt Incurred | 1,083 | 1,241 | 1,013 |
Long Term Debt Paid | (974) | (947) | (670) |
Common Stock Issued | 0 | 0 | 0 |
Common Stock Repurchased | 0 | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 | 0 |
Preferred Stock Dividends Paid | 0 | 0 | |
Capital Contributions Received and Loans Incurred | 58 | 335 | 44 |
Capital Redemptions and Loans Paid | (107) | (459) | (214) |
Intercompany Dividends Paid | (27) | (70) | (93) |
Transactions with Minority Interests in Subsidiaries | (9) | (49) | (26) |
Debt Related Costs and Other Transactions | (15) | (1) | 0 |
Dissolution of Global Alliance | 0 | ||
Total Cash Flows from Financing Activities | 4 | 86 | 55 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (112) | (308) | (165) |
Net Change in Cash and Cash Equivalents | (346) | (235) | 222 |
Cash and Cash Equivalents at Beginning of the Year | 1,398 | 1,633 | 1,411 |
Cash and Cash Equivalents at End of the Year | 1,052 | 1,398 | 1,633 |
Consolidating Entries and Eliminations | |||
Cash Flows from Operating Activities: | |||
Total Cash Flows from Operating Activities | (53) | (279) | (104) |
Cash Flows from Investing Activities: | |||
Capital Expenditures | 9 | 6 | 11 |
Asset Dispositions | 0 | 0 | 0 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||
Decrease (Increase) in Restricted Cash | 0 | 0 | 0 |
Short Term Securities Acquired | 0 | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 | 0 |
Capital Contributions Received and Loans Incurred | 160 | 839 | 272 |
Capital Redemptions and Loans Paid | (247) | (703) | (617) |
Other Transactions | 0 | 0 | 0 |
Total Cash Flows from Investing Activities | (78) | 142 | (334) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | (70) | (36) | (104) |
Short Term Debt and Overdrafts Paid | 70 | 36 | 104 |
Long Term Debt Incurred | 0 | 0 | 0 |
Long Term Debt Paid | 0 | 0 | 0 |
Common Stock Issued | 0 | 0 | 0 |
Common Stock Repurchased | 0 | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 | 0 |
Preferred Stock Dividends Paid | 0 | 0 | |
Capital Contributions Received and Loans Incurred | (160) | (839) | (272) |
Capital Redemptions and Loans Paid | 247 | 703 | 617 |
Intercompany Dividends Paid | 44 | 273 | 93 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 | 0 |
Dissolution of Global Alliance | 0 | ||
Total Cash Flows from Financing Activities | 131 | 137 | 438 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 |
Net Change in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents at Beginning of the Year | 0 | 0 | 0 |
Cash and Cash Equivalents at End of the Year | $ 0 | $ 0 | $ 0 |
Consolidating Financial Info116
Consolidating Financial Information (Details Textuals) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Additional Consolidating Financial Information (Textuals) | |
Parent Company ownership percentage over each guarantor subsidiary | 100.00% |
Guarantor Obligations, Related Party Disclosure | The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. |
Consolidating Financial Information Restrictions on Remittance of Funds | Certain non-guarantor subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries. |
5.125% due 2023 | |
Consolidating Financial Information (Textuals) | |
Debt instrument, principal amount | $ 1,000 |
Interest rate, stated percentage | 5.125% |
Maturity date | Nov. 15, 2023 |
8.75% due 2020 | |
Consolidating Financial Information (Textuals) | |
Debt instrument, principal amount | $ 282 |
Interest rate, stated percentage | 8.75% |
Maturity date | Aug. 15, 2020 |
6.5% due 2021 | |
Consolidating Financial Information (Textuals) | |
Debt instrument, principal amount | $ 900 |
Interest rate, stated percentage | 6.50% |
Maturity date | Mar. 1, 2021 |
7% due 2022 | |
Consolidating Financial Information (Textuals) | |
Debt instrument, principal amount | $ 700 |
Interest rate, stated percentage | 7.00% |
Maturity date | May 15, 2022 |
Schedule II Valuation and Qu117
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 89 | $ 99 | $ 99 |
Additions, charged (credited) to income | 32 | 19 | 18 |
Additions, charged (credited) to AOCL | 0 | 0 | 0 |
Deductions from reserves | (8) | (39) | (20) |
Translation adjustment during period | (8) | 10 | 2 |
Balance at end of period | 105 | 89 | 99 |
Valuation allowance — deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 632 | 2,968 | 3,393 |
Additions, charged (credited) to income | 31 | (2,253) | (206) |
Additions, charged (credited) to AOCL | 8 | (32) | (234) |
Deductions from reserves | (4) | 0 | 0 |
Translation adjustment during period | (46) | (51) | 15 |
Balance at end of period | $ 621 | $ 632 | $ 2,968 |