Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
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-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 233,010,046 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net Sales (Note 2) | $ 3,928 | $ 3,921 | $ 11,599 | $ 11,306 |
Cost of Goods Sold | 3,028 | 3,054 | 8,953 | 8,599 |
Selling, Administrative and General Expense | 553 | 545 | 1,732 | 1,700 |
Rationalizations (Note 3) | 5 | 46 | 40 | 102 |
Interest Expense | 82 | 84 | 236 | 260 |
Other (Income) Expense (Note 4) | (253) | 30 | (171) | 54 |
Income before Income Taxes | 513 | 162 | 809 | 591 |
United States and Foreign Tax Expense (Note 5) | 159 | 30 | 211 | 136 |
Net Income (Loss) | 354 | 132 | 598 | 455 |
Less: Minority Shareholders’ Net Income | 3 | 3 | 15 | 13 |
Goodyear Net Income | $ 351 | $ 129 | $ 583 | $ 442 |
Goodyear Net Income — Per Share of Common Stock | ||||
Basic (dollars per share) | $ 1.49 | $ 0.52 | $ 2.45 | $ 1.76 |
Weighted Average Shares Outstanding - Basic (Note 6) (shares) | 236 | 250 | 238 | 251 |
Diluted (dollars per share) | $ 1.48 | $ 0.50 | $ 2.42 | $ 1.73 |
Weighted Average Shares Outstanding - Diluted (Note 6) (shares) | 238 | 254 | 241 | 255 |
Cash Dividends Declared Per Common Share (Note 13) (dollars per share) | $ 0.14 | $ 0.1 | $ 0.42 | $ 0.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 354 | $ 132 | $ 598 | $ 455 |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation, net of tax of $0 and ($8) in 2018 ($25 and $44 in 2017) | (86) | 35 | (235) | 169 |
Defined benefit plans: | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 and $24 in 2018 ($10 and $31 in 2017) | 26 | 18 | 79 | 57 |
(Increase)/Decrease in net actuarial losses, net of tax of ($4) and $2 in 2018 (($16) and ($15) in 2017) | (20) | (26) | (1) | (23) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 and $4 in 2018 ($9 and $9 in 2017) | 9 | 15 | 13 | 15 |
Deferred derivative gains (losses), net of tax of $1 and $3 in 2018 (($2) and ($9) in 2017) | 0 | (5) | 6 | (19) |
Reclassification adjustment for amounts recognized in income, net of tax of $0 and $2 in 2018 ($0 and ($1) in 2017) | 1 | 1 | 6 | (2) |
Other Comprehensive Income (Loss) | (70) | 38 | (132) | 197 |
Comprehensive Income (Loss) | 284 | 170 | 466 | 652 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (6) | 4 | (10) | 27 |
Goodyear Comprehensive Income | $ 290 | $ 166 | $ 476 | $ 625 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation, tax | $ 0 | $ 25 | $ (8) | $ 44 |
Defined benefit plans: | ||||
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax | 8 | 10 | 24 | 31 |
(Increase)/Decrease in net actuarial losses, tax | (4) | (16) | 2 | (15) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax | 2 | 9 | 4 | 9 |
Deferred derivative gains (losses), tax | 1 | (2) | 3 | (9) |
Reclassification adjustment for amounts recognized in income, tax | $ 0 | $ 0 | $ 2 | $ (1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 896 | $ 1,043 |
Accounts Receivable, less Allowance — $117 ($116 in 2017) | 2,670 | 2,025 |
Inventories: | ||
Raw Materials | 567 | 466 |
Work in Process | 155 | 142 |
Finished Products | 2,216 | 2,179 |
Total Inventory | 2,938 | 2,787 |
Prepaid Expenses and Other Current Assets | 249 | 224 |
Total Current Assets | 6,753 | 6,079 |
Goodwill | 572 | 595 |
Intangible Assets | 137 | 139 |
Deferred Income Taxes (Note 5) | 1,908 | 2,008 |
Other Assets | 1,089 | 792 |
Property, Plant and Equipment, less Accumulated Depreciation — $10,199 ($10,078 in 2017) | 7,132 | 7,451 |
Total Assets | 17,591 | 17,064 |
Current Liabilities: | ||
Accounts Payable — Trade | 2,819 | 2,807 |
Compensation and Benefits (Notes 10 and 11) | 517 | 539 |
Other Current Liabilities | 795 | 1,026 |
Notes Payable and Overdrafts (Note 8) | 445 | 262 |
Long Term Debt and Capital Leases due Within One Year (Note 8) | 471 | 391 |
Total Current Liabilities | 5,047 | 5,025 |
Long Term Debt and Capital Leases (Note 8) | 5,604 | 5,076 |
Compensation and Benefits (Notes 10 and 11) | 1,350 | 1,515 |
Deferred Income Taxes (Note 5) | 95 | 100 |
Other Long Term Liabilities | 495 | 498 |
Total Liabilities | 12,591 | 12,214 |
Commitments and Contingent Liabilities (Note 12) | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 233 and 240 million in 2018 and 2017 after deducting 45 and 38 million treasury shares in 2018 and 2017 | 233 | 240 |
Capital Surplus | 2,125 | 2,295 |
Retained Earnings | 6,525 | 6,044 |
Accumulated Other Comprehensive Loss | (4,083) | (3,976) |
Goodyear Shareholders’ Equity | 4,800 | 4,603 |
Minority Shareholders’ Equity — Nonredeemable | 200 | 247 |
Total Shareholders’ Equity | 5,000 | 4,850 |
Total Liabilities and Shareholders’ Equity | $ 17,591 | $ 17,064 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Allowance for Accounts Receivable | $ 117 | $ 116 |
Accumulated Depreciation | $ 10,199 | $ 10,078 |
Goodyear Shareholders’ Equity: | ||
Common Stock, par value (dollars per share) | $ 0 | $ 0 |
Common Stock, authorized (shares) | 450,000,000 | 450,000,000 |
Common Stock, outstanding (shares) | 233,000,000 | 240,000,000 |
Treasury shares (shares) | 45,000,000 | 38,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 598 | $ 455 |
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 589 | 586 |
Amortization and Write-Off of Debt Issuance Costs | 11 | 17 |
Provision for Deferred Income Taxes | 59 | 33 |
Net Pension Curtailments and Settlements | 13 | 13 |
Net Rationalization Charges (Note 3) | 40 | 102 |
Rationalization Payments | (151) | (96) |
Net (Gains) Losses on Asset Sales (Note 4) | (1) | (14) |
Gain on TireHub Transaction, Net of Transaction Costs (Note 4) | (273) | 0 |
Pension Contributions and Direct Payments | (56) | (67) |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | ||
Accounts Receivable | (807) | (807) |
Inventories | (254) | (254) |
Accounts Payable — Trade | 235 | 5 |
Compensation and Benefits | 7 | (27) |
Other Current Liabilities | (119) | (51) |
Other Assets and Liabilities | 85 | (49) |
Total Cash Flows from Operating Activities | (24) | (154) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (615) | (683) |
Asset Dispositions (Note 4) | 2 | 9 |
Short Term Securities Acquired | (61) | (51) |
Short Term Securities Redeemed | 61 | 51 |
Notes Receivable | (50) | 0 |
Other Transactions | (1) | (1) |
Total Cash Flows from Investing Activities | (664) | (675) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 1,458 | 544 |
Short Term Debt and Overdrafts Paid | (1,267) | (523) |
Long Term Debt Incurred | 4,704 | 4,972 |
Long Term Debt Paid | (3,992) | (4,193) |
Common Stock Issued | 4 | 12 |
Common Stock Repurchased (Note 13) | (200) | (205) |
Common Stock Dividends Paid (Note 13) | (100) | (75) |
Transactions with Minority Interests in Subsidiaries | (27) | (6) |
Debt Related Costs and Other Transactions | (3) | (69) |
Total Cash Flows from Financing Activities | 577 | 457 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (37) | 51 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (148) | (321) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 1,110 | 1,189 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 962 | $ 868 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America ("US GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2018 . Recently Adopted Accounting Standards Effective January 1, 2018, we adopted an accounting standards update, and all related amendments, 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 or services. We applied the new guidance to all open contracts at the date of adoption using the modified retrospective method. We recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2017 New Standard January 1, 2018 Accounts Receivable $ 2,025 $ 3 $ 2,028 Prepaid Expenses and Other Current Assets 224 7 231 Deferred Income Taxes — Asset 2,008 1 2,009 Accounts Payable — Trade 2,807 7 2,814 Other Current Liabilities 1,026 7 1,033 Retained Earnings 6,044 (3 ) 6,041 The impact of the adoption of the standards update on our Consolidated Statements of Operations for the nine month period ended September 30, 2018 was an increase of $7 million to Net Sales and an increase of $5 million to Net Income . There was no impact to Net Sales or Net Income for the three month period ended September 30, 2018. The impact of the adoption of the standards update on our Consolidated Balance Sheet as of September 30, 2018 was as follows: As of September 30, 2018 Balances (In millions) As Reported Without Adoption Effect of Change Accounts Receivable $ 2,670 $ 2,658 $ 12 Prepaid Expenses and Other Current Assets 249 238 11 Deferred Income Taxes — Asset 1,908 1,909 (1 ) Accounts Payable — Trade 2,819 2,810 9 Other Current Liabilities 795 784 11 Retained Earnings 6,525 6,523 2 We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis. Effective January 1, 2018, we adopted an accounting standards update intended to improve the financial statement presentation of pension and postretirement benefits cost. The new guidance requires employers that offer defined benefit pension or other postretirement benefit plans to report service cost in the same income statement line as compensation costs and to report non-service related costs separately from service cost outside a sub-total of income from operations, if one is presented. In addition, the new guidance allows only service cost to be capitalized. We applied the new guidance using the retrospective method. In alignment with the new standards update, we reclassified $15 million and $27 million of expense from Cost of Goods Sold ("CGS") and $11 million and $18 million of expense from Selling, Administrative and General Expense (“SAG”), including corporate related costs of $16 million and $22 million , to Other (Income) Expense for the three and nine months ended September 30, 2017 , respectively. The provision of the new standards update that allows only service cost to be capitalized resulted in an additional one-time charge of $9 million which was recorded in Other (Income) Expense for the nine months ended September 30, 2018 . We expect service related costs of approximately $35 million per year, including approximately $5 million per year of corporate related costs, will remain in CGS and SAG. Further, we expect approximately $90 million of non-service related costs, including approximately $15 million of corporate related costs and excluding settlement/curtailment charges, to be classified in Other (Income) Expense during 2018. Effective January 1, 2018, we adopted an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers . As a result of using the modified retrospective adoption approach, $2 million was recorded as a cumulative effect adjustment to increase Retained Earnings, with Deferred Income Taxes increasing by $7 million and Other Assets decreasing by $5 million . We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis. Effective January 1, 2018, we adopted an accounting standards update with new guidance to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires the application of modification accounting if the value, vesting conditions or classification of the award changes. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with new guidance requiring a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize as an asset. The standards update is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In February 2018, the FASB issued an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act. The new guidance requires additional disclosures, regardless of whether the optional reclassification is elected. The standards update is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. Goodyear has elected not to adopt this optional reclassification. In August 2017, the FASB issued an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The standards update is effective using a modified retrospective approach, with the presentation and disclosure guidance required prospectively, for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements. In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet. The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. As originally issued, the standards update requires application at the beginning of the earliest comparative period presented at the time of adoption. In July 2018, the FASB issued new guidance allowing entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented. We plan to elect this optional transition method. The standard also provides for certain practical expedients. We have completed aggregating our worldwide lease contracts, are currently in the process of evaluating those lease contracts and are implementing a new lease accounting system to support the accounting and disclosure requirements of this standards update. The adoption of this standards update will have a material impact on our financial statements as we have significant operating lease commitments that are off-balance sheet in accordance with current US GAAP. Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. Restricted Cash The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: September 30, (In millions) 2018 2017 Cash and Cash Equivalents $ 896 $ 822 Restricted Cash 66 46 Total Cash, Cash Equivalents and Restricted Cash $ 962 $ 868 Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. Reclassifications and Adjustments Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Net Sales
Net Sales | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
NET SALES | NET SALES The following table shows disaggregated net sales from contracts with customers by major source: Three Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,647 $ 1,184 $ 479 $ 3,310 Other tire and related sales 166 100 32 298 Retail services and service related sales 145 5 19 169 Chemical 146 — — 146 Other 3 1 1 5 Net Sales by reportable segment $ 2,107 $ 1,290 $ 531 $ 3,928 Nine Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,721 $ 3,545 $ 1,508 $ 9,774 Other tire and related sales 460 303 94 857 Retail services and service related sales 426 29 60 515 Chemical 437 — — 437 Other 10 3 3 16 Net Sales by reportable segment $ 6,054 $ 3,880 $ 1,665 $ 11,599 Tire unit sales consist of consumer, commercial, farm and off-the-road tire sales, including the sale of new Company-branded tires through Company-owned retail channels. Other tire and related sales consist of aviation, race, motorcycle and all-terrain vehicle tire sales, retread sales and other tire related sales. Sales of tires in this category are not included in reported tire unit information. Retail services and service related sales consist of automotive services performed for customers through our Company-owned retail channels, and includes service related products. Chemical sales relate to the sale of synthetic rubber and other chemicals to third-parties, and excludes intercompany sales. Other sales include items such as franchise fees and ancillary tire parts, such as tire rims, tire valves and valve stems. Sales are recognized when obligations under the terms of a contract are satisfied and control is transferred. This generally occurs with shipment or delivery, depending on the terms of the underlying contract, or when services have been rendered. Sales are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The amount of consideration we receive and sales we recognize can vary due to changes in sales incentives, rebates, rights of return or other items we offer our customers, for which we estimate the expected amounts based on an analysis of historical experience, or as the most likely amount in a range of possible outcomes. Payment terms with customers vary by region and customer, but are generally 30-90 days or at the point of sale for our consumer retail locations. Net sales exclude sales, value added and other taxes. Costs to obtain contracts are generally expensed as incurred due to the short term nature of individual contracts. Incidental items that are immaterial in the context of the contract are recognized as expense as incurred. We have elected to recognize the costs incurred for transportation of products to customers as a component of CGS. When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities and Other Long Term Liabilities in the Consolidated Balance Sheet totaled $49 million and $43 million , respectively, at September 30, 2018 . We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met. The following table presents the balance of deferred revenue related to contracts with customers, and changes during the nine months ended September 30, 2018 : (In millions) Balance at December 31, 2017 $ 121 Revenue deferred during period 88 Revenue recognized during period (117 ) Impact of foreign currency translation — Balance at September 30, 2018 $ 92 |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS | COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and associate headcount. The following table shows the roll-forward of our liability between periods: Other Exit and Associate- Non-cancelable (In millions) Related Costs Lease Costs Total Balance at December 31, 2017 $ 210 $ 3 $ 213 2018 Charges 39 14 53 Incurred, including net Foreign Currency Translation of $2 million and $0 million, respectively (137 ) (16 ) (153 ) Reversed to the Statements of Operations (13 ) — (13 ) Balance at September 30, 2018 $ 99 $ 1 $ 100 The accrual balance of $100 million at September 30, 2018 is expected to be substantially utilized in the next 12 months and includes $47 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $38 million related to global plans to reduce SAG headcount as well as a separate SAG headcount reduction plan in EMEA, and $4 million related to the closure of our tire manufacturing facility in Philippsburg, Germany. The following table shows net rationalization charges included in Income before Income Taxes: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Current Year Plans Associate Severance and Other Related Costs $ — $ 26 $ 32 $ 51 Other Exit and Non-Cancelable Lease Costs 1 — 1 1 Current Year Plans - Net Charges $ 1 $ 26 $ 33 $ 52 Prior Year Plans Associate Severance and Other Related Costs $ 1 $ (5 ) $ (6 ) $ 12 Benefit Plan Curtailments and Settlements — 13 — 14 Other Exit and Non-Cancelable Lease Costs 3 12 13 24 Prior Year Plans - Net Charges 4 20 7 50 Total Net Charges $ 5 $ 46 $ 40 $ 102 Asset Write-off and Accelerated Depreciation Charges $ — $ 10 $ 2 $ 39 Substantially all of the new charges for the three and nine months ended September 30, 2018 and 2017 related to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2018 include charges of $1 million and $27 million , respectively, related to a global plan to reduce SAG headcount. Net current year plan charges for the nine months ended September 30, 2018 also include charges of $6 million related to a plan to improve operating efficiency in EMEA. Net current year plan charges for the three and nine months ended September 30, 2017 include charges of $25 million related to a global plan to reduce SAG headcount. Net current year plan charges for the nine months ended September 30, 2017 also include charges of $20 million related to SAG headcount reductions in EMEA and $7 million related to a plan to improve operating efficiency in EMEA. Net prior year plan charges for the three and nine months ended September 30, 2018 include charges of $2 million and $11 million , respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany and $2 million and $4 million , respectively, related to a plan to reduce manufacturing headcount in EMEA. Net prior year plan charges for the nine months ended September 30, 2018 also include charges of $3 million related to a global plan to reduce SAG headcount. Net prior year plan charges for the three and nine months ended September 30, 2018 include reversals of $1 million and $13 million , respectively, for actions no longer needed for their originally intended purposes. Net prior year plan charges for the three months ended September 30, 2017 include $9 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $9 million related to a global plan to reduce SAG headcount and $7 million related to manufacturing headcount reductions in EMEA. Net prior year plan charges for the nine months ended September 30, 2017 include $29 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $13 million related to a global plan to reduce SAG headcount and $11 million related to manufacturing headcount reductions in EMEA. Net charges for the three and nine months ended September 30, 2017 include reversals of $5 million and $7 million , respectively, for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $730 million in charges incurred prior to 2018 and approximately $12 million is expected to be incurred in future periods. Approximately 300 associates will be released under new plans initiated in 2018, of which approximately 200 were released through September 30, 2018 . In the first nine months of 2018 , approximately 500 associates were released under plans initiated in prior years. Approximately 300 associates remain to be released under all ongoing rationalization plans. Approximately 850 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note to the Consolidated Financial Statements No. 12, Commitments and Contingent Liabilities, in this Form 10-Q. Asset write-off and accelerated depreciation charges for the three and nine months ended September 30, 2018 and 2017 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany and were recorded in CGS. |
Other (Income) Expense
Other (Income) Expense | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE | OTHER (INCOME) EXPENSE Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Gain on TireHub transaction, net of transaction costs $ (287 ) $ — $ (273 ) $ — Non-service related pension and other postretirement benefits cost 33 26 92 45 Financing fees and financial instruments 9 8 27 48 Royalty income (5 ) (10 ) (15 ) (26 ) Interest income (6 ) (3 ) (12 ) (10 ) Net foreign currency exchange (gains) losses (2 ) (1 ) (7 ) (4 ) General and product liability expense (income) - discontinued products 5 (3 ) 3 — Net (gains) losses on asset sales (1 ) (1 ) (1 ) (14 ) Miscellaneous expense 1 14 15 15 $ (253 ) $ 30 $ (171 ) $ 54 On April 16, 2018, we announced an agreement to form a 50/50 joint venture with Bridgestone Americas, Inc. ("Bridgestone") that would combine our Company-Owned Wholesale Distribution (“COWD”) business and Bridgestone’s tire wholesale warehouse business to create TireHub, LLC ("TireHub"), a national tire distributor in the United States. On July 1, 2018, the transaction closed and TireHub commenced operations. Upon closing, we transferred certain assets and liabilities of the COWD business, with a net book value of $6 million , to TireHub. With the assistance of a third party valuation specialist, we determined the fair value of our equity interest in TireHub to be $292 million as of July 1, 2018, using a discounted cash flow method. As a result, we recognized a gain of $286 million , which represents the difference between the fair value of the equity interest received and the net book value of the assets and liabilities contributed. For the three and nine months ended September 30, 2018, we incurred transaction costs of $(1) million and $13 million in connection with the formation of the joint venture. Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. Non-service related pension and other postretirement benefits cost for the nine months ended September 30, 2018 includes expense of $9 million related to the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory. For further information, refer to Note to the Consolidated Financial Statements No. 10, Pension, Savings and Other Postretirement Benefit Plans, in this Form 10-Q. Financing fees and financial instruments consist of commitment fees and charges incurred in connection with financing transactions. Financing fees and financial instruments for the nine months ended September 30, 2017 include a redemption premium of $25 million related to the redemption of our $700 million 7% senior notes due 2022 in May 2017. Miscellaneous expense for the three and nine months ended September 30, 2018 includes continuing repair expenses of $2 million and $12 million , respectively, incurred by the Company as a direct result of hurricanes Harvey and Irma during the third quarter of 2017. Miscellaneous expense for the three and nine months ended September 30, 2017 includes $12 million related to expenses incurred by the Company as a direct result of the hurricanes. Other (Income) Expense also includes royalty income which is derived primarily from licensing arrangements related to divested businesses as well as other licensing arrangements, interest income, which primarily consists of amounts earned on cash deposits, net foreign currency exchange (gains) and losses, general and product liability expense (income) - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries, and net (gains) losses on asset sales. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the third quarter of 2018 , we recorded tax expense of $159 million on income before income taxes of $513 million . For the first nine months of 2018, we recorded tax expense of $211 million on income before income taxes of $809 million . Income tax expense for the three and nine months ended September 30, 2018 includes net discrete charges of $31 million and $10 million , respectively. The Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017 in the United States included a one-time tax on certain previously untaxed accumulated earnings and profits of foreign subsidiaries (the "transition tax"). During the second quarter of 2018, we received dividends, primarily from subsidiaries in Japan and Singapore, and recorded a $25 million discrete tax benefit to claim foreign tax credits for taxes that were not creditable for purposes of the transition tax obligation. On August 1, 2018, the Department of Treasury and the Internal Revenue Service released a proposed regulation regarding the transition tax. The proposed regulation provides that income taxes on income subject to the transition tax that are not creditable for purposes of the transition tax obligation, will not be a creditable foreign tax. As a result, we have recorded a third quarter discrete charge of $25 million primarily to reverse the tax benefit recorded in the second quarter. The proposed regulation also would require accumulated deficits of foreign subsidiaries to be excluded for purposes of calculating taxes creditable against the transition tax. As such, we recorded a third quarter charge of $11 million to adjust our transition tax obligation based upon that proposed regulation. For the nine months ended September 30, 2018, we have recorded a discrete net tax charge of $14 million related to the transition tax. Discrete tax charges for the three and nine months ended September 30, 2018 also include net benefits of $5 million and $4 million , respectively, for various other tax adjustments. We were able to reasonably estimate the transition tax and record an initial provisional tax obligation of $77 million at December 31, 2017. Adjusted for guidance provided through September 30, 2018, we have now recorded a provisional transition tax obligation totaling $91 million . At December 31, 2017, we established a provisional reserve of $19 million related to foreign withholding taxes that we would incur should we repatriate certain earnings. During the nine months ending September 30, 2018, our reserve decreased to $10 million to reflect payments of withholding tax on dividends from foreign subsidiaries. In the fourth quarter of 2018, we will further adjust our provisional amounts to reflect the impact of changes to earnings and profits of our subsidiaries resulting from our 2017 corporate income tax return. We also will continue to consider new guidance related to our provisional amounts and will complete our accounting during the fourth quarter of 2018. In the third quarter of 2017, we recorded tax expense of $30 million on income before income taxes of $162 million . For the first nine months of 2017, we recorded tax expense of $136 million on income before income taxes of $591 million . Income tax expense for the three and nine months ended September 30, 2017 was favorably impacted by $12 million and $23 million , respectively, of various discrete tax adjustments. We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate for the three and nine months ended September 30, 2018 and the U.S. statutory rate of 21% primarily relates to the discrete items noted above and an overall higher effective tax rate in the foreign jurisdictions in which we operate, partially offset by a benefit from our foreign derived intangible income deduction provided for in the Tax Act. The difference between our effective tax rate for the three and nine months ended September 30, 2017 and the then applicable U.S. statutory rate of 35% was primarily attributable to the discrete items noted above and an overall lower effective tax rate in the foreign jurisdictions in which we operate. The Tax Act subjects a U.S. parent to the base erosion minimum tax ("BEAT") and a current tax on its global intangible low-taxed income ("GILTI"). We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We estimate that the impact from the BEAT and GILTI taxes will not be material to our income tax provision. Our losses in various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of our net deferred tax assets. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. If recent positive evidence provided by the profitability of our Brazilian subsidiary continues, it will provide us the opportunity to apply greater significance to our forecasts in assessing the need for a valuation allowance. We believe it is reasonably possible that sufficient positive evidence required to release all, or a portion, of its valuation allowance will exist within the next twelve months. This may result in a reduction of the valuation allowance and a one-time tax benefit of up to $25 million . Based on positive evidence and future sources of income in the U.S., it is more likely than not that our foreign tax credits of approximately $750 million as of December 31, 2017, will be fully utilized. We are open to examination in the United States for 2017 and in Germany from 2013 onward. Generally, for our remaining tax jurisdictions, years from 2012 onward are still open to examination. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Basic and diluted earnings per common share are calculated as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2018 2017 2018 2017 Earnings per share — basic: Goodyear net income $ 351 $ 129 $ 583 $ 442 Weighted average shares outstanding 236 250 238 251 Earnings per common share — basic $ 1.49 $ 0.52 $ 2.45 $ 1.76 Earnings per share — diluted: Goodyear net income $ 351 $ 129 $ 583 $ 442 Weighted average shares outstanding 236 250 238 251 Dilutive effect of stock options and other dilutive securities 2 4 3 4 Weighted average shares outstanding — diluted 238 254 241 255 Earnings per common share — diluted $ 1.48 $ 0.50 $ 2.42 $ 1.73 Weighted average shares outstanding - diluted for the three and nine months ended September 30, 2018 exclude approximately 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and nine months ended September 30, 2017. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Sales: Americas $ 2,107 $ 2,041 $ 6,054 $ 6,028 Europe, Middle East and Africa 1,290 1,311 3,880 3,664 Asia Pacific 531 569 1,665 1,614 Net Sales $ 3,928 $ 3,921 $ 11,599 $ 11,306 Segment Operating Income: Americas $ 194 $ 196 $ 475 $ 630 Europe, Middle East and Africa 111 90 289 271 Asia Pacific 57 81 203 225 Total Segment Operating Income $ 362 $ 367 $ 967 $ 1,126 Less: Rationalizations $ 5 $ 46 $ 40 $ 102 Interest expense 82 84 236 260 Other (income) expense (Note 4) (253 ) 30 (171 ) 54 Asset write-offs and accelerated depreciation — 10 2 39 Corporate incentive compensation plans (1 ) — 6 27 Intercompany profit elimination 2 21 (2 ) 16 Retained expenses of divested operations 2 3 7 9 Other 12 11 40 28 Income before Income Taxes $ 513 $ 162 $ 809 $ 591 Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales and Asset write-offs and accelerated depreciation were not charged (credited) to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Rationalizations: Americas $ — $ 4 $ 3 $ 6 Europe, Middle East and Africa 5 25 31 78 Asia Pacific — 1 3 2 Total Segment Rationalizations $ 5 $ 30 $ 37 $ 86 Corporate — 16 3 16 Total Rationalizations $ 5 $ 46 $ 40 $ 102 Net (Gains) Losses on Asset Sales: Americas (1) $ (288 ) $ (1 ) $ (276 ) $ (4 ) Europe, Middle East and Africa — — 2 (10 ) Total Net (Gains) Losses on Asset Sales $ (288 ) $ (1 ) $ (274 ) $ (14 ) (1) Americas Net (Gains) Losses on Asset Sales for the three and nine months ended September 30, 2018 includes gains of $287 million and $273 million , respectively, related to the TireHub transaction, net of transaction costs. Asset Write-offs and Accelerated Depreciation: Europe, Middle East and Africa $ — $ 10 $ 2 $ 39 Total Asset Write-offs and Accelerated Depreciation $ — $ 10 $ 2 $ 39 |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS | FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS At September 30, 2018 , we had total credit arrangements of $8,689 million , of which $2,132 million were unused. At that date, 40% of our debt was at variable interest rates averaging 4.42% . Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year and Short Term Financing Arrangements At September 30, 2018 , we had short term committed and uncommitted credit arrangements totaling $681 million , of which $236 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates. The following table presents amounts due within one year: September 30, December 31, (In millions) 2018 2017 Notes payable and overdrafts $ 445 $ 262 Weighted average interest rate 6.63 % 5.00 % Chinese credit facilities $ 43 $ 113 Mexican credit facilities 90 — Other foreign and domestic debt (including capital leases) 338 278 Long term debt and capital leases due within one year $ 471 $ 391 Weighted average interest rate 3.49 % 6.86 % Total obligations due within one year $ 916 $ 653 Long Term Debt and Capital Leases and Financing Arrangements At September 30, 2018 , we had long term credit arrangements totaling $8,008 million , of which $1,896 million were unused. The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: September 30, 2018 December 31, 2017 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 277 $ 275 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 290 300 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2021 325 3.41 % — — Second lien term loan facility due 2025 400 4.15 % 400 3.50 % €550 million revolving credit facility due 2020 360 3.90 % — — Pan-European accounts receivable facility 221 0.89 % 224 0.90 % Mexican credit facilities 340 3.90 % 340 3.14 % Chinese credit facilities 157 4.98 % 212 4.87 % Other foreign and domestic debt (1) 955 5.28 % 967 6.02 % 6,075 5,468 Unamortized deferred financing fees (37 ) (41 ) 6,038 5,427 Capital lease obligations 37 40 6,075 5,467 Less portion due within one year (471 ) (391 ) $ 5,604 $ 5,076 (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 Americas Headquarters. NOTES At September 30, 2018 , we had $3,317 million of outstanding notes, compared to $3,325 million at December 31, 2017 . CREDIT FACILITIES $2.0 billion Amended and Restated First Lien Revolving Credit Facility due 2021 Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million . Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to $250 million . Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in a variety of collateral. Based on our current liquidity, amounts drawn under this facility bear interest at LIBOR plus 125 basis points, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points. Availability under the facility is subject to a borrowing base, which is based primarily on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the value of our principal trademarks, and (iii) certain cash in an amount not to exceed $200 million. To the extent that our eligible accounts receivable and inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. As of September 30, 2018 , our borrowing base, and therefore our availability, under this facility was $302 million below the facility's stated amount of $2.0 billion . The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2015. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At September 30, 2018 , we had $325 million of borrowings and $37 million of letters of credit issued under the revolving credit facility. At December 31, 2017 , we had no borrowings and $37 million of letters of credit issued under the revolving credit facility. $400 million Amended and Restated Second Lien Term Loan Facility due 2025 In March 2018, we amended and restated our second lien term loan facility. As a result of the amendment, the term loan, which previously matured on April 30, 2019, now matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility. Our obligations under our second lien term loan facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries and are secured by second priority security interests in the same collateral securing the $2.0 billion first lien revolving credit facility. At September 30, 2018 and December 31, 2017, the amounts outstanding under this facility were $400 million . €550 million Amended and Restated Senior Secured European Revolving Credit Facility due 2020 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 Goodyear Dunlop Tires Europe B.V. ("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. Amounts drawn under this facility 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, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points. GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. 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. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2014. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At September 30, 2018 , there were $140 million ( €121 million ) of borrowings outstanding under the German tranche, $220 million ( €190 million ) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2017 , there were no borrowings and no letters of credit outstanding under the European revolving credit facility. Accounts Receivable Securitization Facilities (On-Balance Sheet) On September 28, 2018, GDTE and certain other of our European subsidiaries amended and restated the definitive agreements for our pan-European accounts receivable securitization facility, extending the term through 2023. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €30 million and not more than €450 million . For the period from October 16, 2017 to October 17, 2018, the designated maximum amount of the facility was €275 million . Effective October 18, 2018, the designated maximum amount of the facility was increased to €320 million . The facility involves the ongoing daily sale of substantially all of the trade accounts receivable of certain GDTE subsidiaries. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances . The funding commitments under the facility will expire upon the earliest to occur of: (a) September 26, 2023, (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 17, 2019. At September 30, 2018 , the amounts available and utilized under this program totaled $221 million ( €191 million ). At December 31, 2017 , the amounts available and utilized under this program totaled $224 million ( €187 million ). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases. For a description of the collateral securing the credit facilities described above as well as the covenants applicable to them, refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in our 2017 Form 10-K. Accounts Receivable Factoring Facilities (Off-Balance Sheet) We have sold certain of our trade receivables under off-balance sheet programs. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At September 30, 2018 , the gross amount of receivables sold was $540 million , compared to $572 million at December 31, 2017 . Other Foreign Credit Facilities A Mexican subsidiary and a U.S. subsidiary have several financing arrangements in Mexico. At September 30, 2018 , the amounts available and utilized under these facilities were $340 million , of which $90 million is due within a year. At December 31, 2017 , the amounts available and utilized under these facilities were $340 million . The facilities ultimately mature in 2020. The facilities contain covenants relating to the Mexican and U.S. subsidiary and have customary representations and warranties and defaults relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the applicable facilities. A Chinese subsidiary has several financing arrangements in China. At September 30, 2018 , these non-revolving credit facilities had total unused availability of $116 million and can only be used to finance the expansion of our manufacturing facility in China. At September 30, 2018 and December 31, 2017 , the amounts outstanding under these facilities were $157 million and $212 million , respectively. The facilities ultimately mature in 2025 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 September 30, 2018 and December 31, 2017 , restricted cash related to funds obtained under these credit facilities was $5 million and $7 million , respectively. DERIVATIVE FINANCIAL INSTRUMENTS We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes. Foreign Currency Contracts We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation. The following table presents the fair values for foreign currency contracts not designated as hedging instruments: September 30, December 31, (In millions) 2018 2017 Fair Values — Current asset (liability): Accounts receivable $ 22 $ 3 Other current liabilities (3 ) (9 ) At September 30, 2018 and December 31, 2017 , these outstanding foreign currency derivatives had notional amounts of $2,576 million and $1,409 million , respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $7 million and $52 million for the three and nine months ended September 30, 2018 , respectively, and net transaction losses on derivatives of $10 million and $55 million for the three and nine months ended September 30, 2017 , respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures. The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: September 30, December 31, (In millions) 2018 2017 Fair Values — Current asset (liability): Accounts receivable $ 6 $ 1 Other current liabilities (2 ) (8 ) Fair Values — Long term asset (liability): Other assets $ 2 $ — Other long term liabilities — (2 ) At September 30, 2018 and December 31, 2017 , these outstanding foreign currency derivatives had notional amounts of $273 million and $250 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 information related to foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Three Months Ended Nine Months Ended September 30, September 30, (In millions) (Income) Expense 2018 2017 2018 2017 Amounts deferred to Accumulated Other Comprehensive Loss ("AOCL") $ (1 ) $ 7 $ (9 ) $ 28 Amount of deferred (gain) loss reclassified from AOCL into CGS 1 1 8 (3 ) Amounts excluded from effectiveness testing — (1 ) (1 ) (2 ) The estimated net amount of deferred gains at September 30, 2018 that are expected to be reclassified to earnings within the next twelve months is $2 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 | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at September 30, 2018 and December 31, 2017 : 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) 2018 2017 2018 2017 2018 2017 2018 2017 Assets: Investments $ 11 $ 11 $ 11 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 30 4 — — 30 4 — — Total Assets at Fair Value $ 41 $ 15 $ 11 $ 11 $ 30 $ 4 $ — $ — Liabilities: Foreign Exchange Contracts $ 5 $ 19 $ — $ — $ 5 $ 19 $ — $ — Total Liabilities at Fair Value $ 5 $ 19 $ — $ — $ 5 $ 19 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at September 30, 2018 and December 31, 2017 : September 30, December 31, (In millions) 2018 2017 Fixed Rate Debt (1) : Carrying amount — liability $ 3,601 $ 3,616 Fair value — liability 3,551 3,786 Variable Rate Debt (1) : Carrying amount — liability $ 2,437 $ 1,811 Fair value — liability 2,421 1,811 (1) Excludes Notes Payable and Overdrafts of $ 445 million and $ 262 million at September 30, 2018 and December 31, 2017, respectively, of which $ 245 million and $ 110 million , respectively, are at fixed rates and $ 200 million and $ 152 million , respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. Long term debt with fair values of $3,632 million and $3,857 million at September 30, 2018 and December 31, 2017 , respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions . |
Pension, Savings and Other Post
Pension, Savings and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS We provide employees with defined benefit pension or defined contribution savings plans. Defined benefit pension cost follows: U.S. U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 39 39 118 120 Expected return on plan assets (55 ) (60 ) (164 ) (181 ) Amortization of net losses 28 27 84 83 Net periodic pension cost $ 13 $ 7 $ 41 $ 25 Net curtailments/settlements/termination benefits — 24 3 25 Total defined benefit pension cost $ 13 $ 31 $ 44 $ 50 Non-U.S. Non-U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Service cost $ 7 $ 8 $ 21 $ 23 Interest cost 17 18 52 53 Expected return on plan assets (17 ) (20 ) (53 ) (59 ) Amortization of net losses 7 8 22 24 Net periodic pension cost $ 14 $ 14 $ 42 $ 41 Net curtailments/settlements/termination benefits 10 2 10 2 Total defined benefit pension cost $ 24 $ 16 $ 52 $ 43 Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments and settlements are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan. During the third quarter of 2018, we recognized a settlement charge of $ 9 million in Other (Income) Expense for our frozen U.K. pension plan. This settlement charge is related primarily to an offer of lump sum payments over a limited time during 2018 to non-retiree participants of the plan. Lump sum payments of $ 74 million , primarily related to this offer, were made from existing plan assets for the nine months ended September 30, 2018. As a result, total lump sum payments related to this plan exceeded annual interest cost for 2018. We expect to incur incremental settlement charges in the fourth quarter of 2018 due to additional lump sum payments to be made during that quarter. During the third quarter of 2017, we recognized a settlement charge of $ 24 million in connection with our frozen salaried U.S. pension plan. The settlement charge resulted from total lump sum benefit payments exceeding annual interest cost. For the three and nine months ended September 30, 2017, net curtailment and settlement charges of $ 13 million and $ 14 million , respectively, were included in rationalization charges for employees who terminated service as a result of ongoing rationalization plans, and net curtailment and settlement charges of $ 13 million in each period were recorded in Other (Income) Expense. We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2018. For the three and nine months ended September 30, 2018 , we contributed $7 million and $26 million , respectively, to our non-U.S. plans. The expense recognized for our contributions to defined contribution savings plans for the three months ended September 30, 2018 and 2017 was $27 million and $28 million , respectively, and for the nine months ended September 30, 2018 and 2017 was $84 million and $86 million , respectively. We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense (credit) for the three months ended September 30, 2018 and 2017 was $2 million and $(2) million , respectively, and for the nine months ended September 30, 2018 and 2017 was $8 million and $ (5) million , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS Our Board of Directors granted 0.8 million restricted stock units and 0.2 million performance share units during the nine months ended September 30, 2018 under our stock compensation plans. We measure the fair value of grants of restricted stock units and performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. The weighted average fair value per share was $29.17 for restricted stock units and $29.04 for performance share units granted during the nine months ended September 30, 2018 . We recognized stock-based compensation expense of $6 million and $11 million during the three and nine months ended September 30, 2018 , respectively. At September 30, 2018 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $33 million and is expected to be recognized over the remaining vesting period of the respective grants, through the third quarter of 2022 . We recognized stock-based compensation expense of $5 million and $17 million during the three and nine months ended September 30, 2017 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters We have recorded liabilities totaling $47 million and $46 million at September 30, 2018 and December 31, 2017 , 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, $10 million was included in Other Current Liabilities at both September 30, 2018 and December 31, 2017 , 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 $240 million and $243 million for anticipated costs related to workers’ compensation at September 30, 2018 and December 31, 2017 , respectively. Of these amounts, $44 million and $45 million were included in Current Liabilities as part of Compensation and Benefits at September 30, 2018 and December 31, 2017 , respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At September 30, 2018 and December 31, 2017 , the liability was discounted using a risk-free rate of return. At September 30, 2018 , we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $30 million . General and Product Liability and Other Litigation We have recorded liabilities totaling $330 million and $316 million , including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at September 30, 2018 and December 31, 2017 , respectively. Of these amounts, $48 million and $55 million were included in Other Current Liabilities at September 30, 2018 and December 31, 2017 , respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at September 30, 2018 , we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates. We have recorded an indemnification asset within Accounts Receivable of $5 million and within Other Assets of $31 million for Sumitomo Rubber Industries, Ltd.'s ("SRI") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions. Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 146,300 claims by defending, obtaining the dismissal thereof, or entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $546 million through September 30, 2018 and $529 million through December 31, 2017 . A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. Nine Months Ended Year Ended (Dollars in millions) September 30, 2018 December 31, 2017 Pending claims, beginning of period 54,300 64,400 New claims filed 1,000 1,900 Claims settled/dismissed (11,600 ) (12,000 ) Pending claims, end of period 43,700 54,300 Payments (1) $ 8 $ 16 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $176 million and $167 million at September 30, 2018 and December 31, 2017 , respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten -year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant. We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery. We recorded a receivable related to asbestos claims of $121 million and $113 million at September 30, 2018 and December 31, 2017 , respectively. 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, $15 million was included in Current Assets as part of Accounts Receivable at September 30, 2018 and December 31, 2017, respectively. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers. We believe that, at December 31, 2017, we had approximately $440 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements. We also had additional unsettled excess level policy limits potentially applicable to such costs. We had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements. With respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Recoveries may be limited by insurer insolvencies or financial difficulties. Depending upon the nature of these characteristics or events, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us. Amiens Labor Claims Approximately 850 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €120 million ( $139 million ) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims. Other Actions We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations. Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods. Income Tax Matters The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, would result in a reduction in our effective tax rate in the period of resolution. While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims. Guarantees We have off-balance sheet financial guarantees and other commitments totaling approximately $79 million and $82 million at September 30, 2018 and December 31, 2017 , respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not require collateral in connection with the issuance of these guarantees. In 2017, we issued a guarantee of approximately $47 million in connection with an indirect tax assessment in EMEA. As of September 30, 2018 , this guarantee amount has been reduced to $45 million . We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of approximately $46 million to an insurance company related to SRI's obligation to pay certain outstanding workers' compensation claims of a formerly consolidated joint venture entity. As of September 30, 2018 , this guarantee amount has been reduced to $33 million . We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event , we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer , or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2020 . We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2018 | |
Captial Stock [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Dividends In the first nine months of 2018, we paid cash dividends of $100 million on our common stock. On October 9, 2018 , the Board of Directors (or duly authorized committee thereof) declared cash dividends of $0.16 per share of common stock, or approximately $37 million in the aggregate. The dividend will be paid on December 3, 2018 , to stockholders of record as of the close of business on November 1, 2018 . Future quarterly dividends are subject to Board approval. Common Stock Repurchases On September 18, 2013 , the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion . This program expires on December 31, 2019. 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 the third quarter of 2018 , we repurchased 4,188,492 shares at an average price, including commissions, of $23.87 per share, or $100 million in the aggregate. During the first nine months of 2018 , we repurchased 8,039,584 shares at an average price, including commissions, of $24.88 per share, or $200 million in the aggregate. Since 2013, we repurchased 52,009,241 shares at an average price, including commissions, of $29.10 per share, or $1,514 million in the aggregate. In addition, we may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of the stock options or the vesting or payment of stock awards. During the first nine months of 2018 , we did not repurchase any shares from employees. |
Changes in Shareholders' Equity
Changes in Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
CHANGES IN SHAREHOLDERS' EQUITY | CHANGES IN SHAREHOLDERS’ EQUITY The following tables present the changes in shareholders’ equity for the nine months ended September 30, 2018 and 2017 : September 30, 2018 September 30, 2017 (In millions) Goodyear Shareholders’ Equity Minority Shareholders’ Equity – Nonredeemable Total Shareholders’ Equity Goodyear Shareholders’ Equity Minority Shareholders’ Equity – Nonredeemable Total Shareholders’ Equity Balance at beginning of period $ 4,603 $ 247 $ 4,850 $ 4,507 $ 218 $ 4,725 Comprehensive income (loss): Net income 583 15 598 442 13 455 Foreign currency translation, net of tax of ($8) in 2018 ($44 in 2017) (210 ) (25 ) (235 ) 155 14 169 Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $24 in 2018 ($31 in 2017) 79 — 79 57 — 57 (Increase)/Decrease in net actuarial losses, net of tax of $2 in 2018 (($15) in 2017) (1 ) — (1 ) (23 ) — (23 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $4 in 2018 ($9 in 2017) 13 — 13 15 — 15 Deferred derivative gains (losses), net of tax of $3 in 2018 (($9) in 2017) 6 — 6 (19 ) — (19 ) Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017) 6 — 6 (2 ) — (2 ) Other comprehensive income (loss) (107 ) (25 ) (132 ) 183 14 197 Total comprehensive income (loss) 476 (10 ) 466 625 27 652 Adoption of new accounting standards updates (Note 1) (1 ) — (1 ) — — — Dividends declared to minority shareholders — (8 ) (8 ) — (6 ) (6 ) Stock-based compensation plans (Note 11) 14 — 14 17 — 17 Repurchase of common stock (Note 13) (200 ) — (200 ) (205 ) — (205 ) Dividends declared (Note 13) (101 ) — (101 ) (75 ) — (75 ) Common stock issued from treasury 4 — 4 13 — 13 Purchase of minority shares 5 (29 ) (24 ) — — — Balance at end of period $ 4,800 $ 200 $ 5,000 $ 4,882 $ 239 $ 5,121 |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 and 2017 : (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications, net of tax (210 ) (1 ) 6 (205 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 92 6 98 Balance at September 30, 2018 $ (1,125 ) $ (2,961 ) $ 3 $ (4,083 ) (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2016 $ (1,155 ) $ (3,053 ) $ 10 $ (4,198 ) Other comprehensive income (loss) before reclassifications, net of tax 155 (23 ) (19 ) 113 Amounts reclassified from accumulated other comprehensive loss, net of tax — 72 (2 ) 70 Balance at September 30, 2017 $ (1,000 ) $ (3,004 ) $ (11 ) $ (4,015 ) The following table presents reclassifications out of Accumulated Other Comprehensive Loss: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Statements of Operations Component of AOCL from AOCL from AOCL Amortization of prior service cost and unrecognized gains and losses $ 34 $ 28 $ 103 $ 88 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures 11 24 17 24 Other (Income) Expense Unrecognized Net Actuarial Losses and Prior Service Costs, before tax 45 52 120 112 Tax effect (10 ) (19 ) (28 ) (40 ) United States and Foreign Taxes Net of tax $ 35 $ 33 $ 92 $ 72 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ 1 $ 1 $ 8 $ (3 ) Cost of Goods Sold Tax effect — — (2 ) 1 United States and Foreign Taxes Net of tax $ 1 $ 1 $ 6 $ (2 ) Goodyear Net Income Total reclassifications $ 36 $ 34 $ 98 $ 70 Goodyear Net Income |
Consolidating Financial Informa
Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATING FINANCIAL INFORMATION | CONSOLIDATING FINANCIAL INFORMATION Certain of our subsidiaries have guaranteed our obligations under the $282 million outstanding principal amount of 8.75% notes due 2020 , the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 , the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for: (i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations; (ii) Guarantor Subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes; (iii) Non-Guarantor Subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and (v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis. Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of capital stock, loans and other capital transactions between members of the consolidated group. Certain Non-Guarantor Subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries. Condensed Consolidating Balance Sheet September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 26 $ 743 $ — $ 896 Accounts Receivable, net 732 166 1,772 — 2,670 Accounts Receivable From Affiliates 235 192 — (427 ) — Inventories 1,506 71 1,393 (32 ) 2,938 Prepaid Expenses and Other Current Assets 78 2 165 4 249 Total Current Assets 2,678 457 4,073 (455 ) 6,753 Goodwill 24 1 423 124 572 Intangible Assets 118 — 19 — 137 Deferred Income Taxes 1,487 30 388 3 1,908 Other Assets 554 51 484 — 1,089 Investments in Subsidiaries 3,943 516 — (4,459 ) — Property, Plant and Equipment, net 2,455 434 4,268 (25 ) 7,132 Total Assets $ 11,259 $ 1,489 $ 9,655 $ (4,812 ) $ 17,591 Liabilities: Current Liabilities: Accounts Payable-Trade $ 921 $ 121 $ 1,777 $ — $ 2,819 Accounts Payable to Affiliates — — 427 (427 ) — Compensation and Benefits 278 16 223 — 517 Other Current Liabilities 359 (7 ) 443 — 795 Notes Payable and Overdrafts 25 — 420 — 445 Long Term Debt and Capital Leases Due Within One Year 58 — 413 — 471 Total Current Liabilities 1,641 130 3,703 (427 ) 5,047 Long Term Debt and Capital Leases 3,873 167 1,564 — 5,604 Compensation and Benefits 575 97 678 — 1,350 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 370 9 116 — 495 Total Liabilities 6,459 403 6,156 (427 ) 12,591 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,567 1,086 3,299 (4,385 ) 4,567 Goodyear Shareholders’ Equity 4,800 1,086 3,299 (4,385 ) 4,800 Minority Shareholders’ Equity — Nonredeemable — — 200 — 200 Total Shareholders’ Equity 4,800 1,086 3,499 (4,385 ) 5,000 Total Liabilities and Shareholders’ Equity $ 11,259 $ 1,489 $ 9,655 $ (4,812 ) $ 17,591 Condensed Consolidating Balance Sheet December 31, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 176 $ 32 $ 835 $ — $ 1,043 Accounts Receivable, net 649 116 1,260 — 2,025 Accounts Receivable From Affiliates — 254 71 (325 ) — Inventories 1,444 43 1,329 (29 ) 2,787 Prepaid Expenses and Other Current Assets 59 3 157 5 224 Total Current Assets 2,328 448 3,652 (349 ) 6,079 Goodwill 24 1 444 126 595 Intangible Assets 119 — 20 — 139 Deferred Income Taxes 1,549 35 424 — 2,008 Other Assets 221 51 518 2 792 Investments in Subsidiaries 4,424 503 — (4,927 ) — Property, Plant and Equipment, net 2,491 420 4,569 (29 ) 7,451 Total Assets $ 11,156 $ 1,458 $ 9,627 $ (5,177 ) $ 17,064 Liabilities: Current Liabilities: Accounts Payable-Trade $ 927 $ 115 $ 1,765 $ — $ 2,807 Accounts Payable to Affiliates 325 — — (325 ) — Compensation and Benefits 322 15 202 — 539 Other Current Liabilities 323 2 701 — 1,026 Notes Payable and Overdrafts — — 262 — 262 Long Term Debt and Capital Leases Due Within One Year 60 — 331 — 391 Total Current Liabilities 1,957 132 3,261 (325 ) 5,025 Long Term Debt and Capital Leases 3,544 152 1,380 — 5,076 Compensation and Benefits 682 109 724 — 1,515 Deferred Income Taxes — 1 99 — 100 Other Long Term Liabilities 370 8 120 — 498 Total Liabilities 6,553 402 5,584 (325 ) 12,214 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 240 — — — 240 Other Equity 4,363 1,056 3,796 (4,852 ) 4,363 Goodyear Shareholders’ Equity 4,603 1,056 3,796 (4,852 ) 4,603 Minority Shareholders’ Equity — Nonredeemable — — 247 — 247 Total Shareholders’ Equity 4,603 1,056 4,043 (4,852 ) 4,850 Total Liabilities and Shareholders’ Equity $ 11,156 $ 1,458 $ 9,627 $ (5,177 ) $ 17,064 Consolidating Statements of Operations Three Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,922 $ 342 $ 2,373 $ (709 ) $ 3,928 Cost of Goods Sold 1,547 319 1,879 (717 ) 3,028 Selling, Administrative and General Expense 239 8 306 — 553 Rationalizations 1 — 4 — 5 Interest Expense 55 6 28 (7 ) 82 Other (Income) Expense (295 ) 3 11 28 (253 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 375 6 145 (13 ) 513 United States and Foreign Taxes 111 1 48 (1 ) 159 Equity in Earnings of Subsidiaries 87 10 — (97 ) — Net Income (Loss) 351 15 97 (109 ) 354 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 351 $ 15 $ 94 $ (109 ) $ 351 Comprehensive Income (Loss) $ 290 $ (5 ) $ (3 ) $ 2 $ 284 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (6 ) — (6 ) Goodyear Comprehensive Income (Loss) $ 290 $ (5 ) $ 3 $ 2 $ 290 Consolidating Statements of Operations Three Months Ended September 30, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,790 $ 294 $ 2,448 $ (611 ) $ 3,921 Cost of Goods Sold 1,393 261 2,021 (621 ) 3,054 Selling, Administrative and General Expense 225 9 311 — 545 Rationalizations 20 — 26 — 46 Interest Expense 62 2 34 (14 ) 84 Other (Income) Expense (37 ) (5 ) 9 63 30 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 127 27 47 (39 ) 162 United States and Foreign Taxes 9 6 12 3 30 Equity in Earnings of Subsidiaries 11 (3 ) — (8 ) — Net Income (Loss) 129 18 35 (50 ) 132 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 129 $ 18 $ 32 $ (50 ) $ 129 Comprehensive Income (Loss) $ 166 $ 16 $ 86 $ (98 ) $ 170 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 4 — 4 Goodyear Comprehensive Income (Loss) $ 166 $ 16 $ 82 $ (98 ) $ 166 Consolidating Statements of Operations Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,440 $ 980 $ 7,236 $ (2,057 ) $ 11,599 Cost of Goods Sold 4,376 927 5,756 (2,106 ) 8,953 Selling, Administrative and General Expense 756 26 950 — 1,732 Rationalizations 6 — 34 — 40 Interest Expense 165 16 73 (18 ) 236 Other (Income) Expense (271 ) 13 19 68 (171 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 408 (2 ) 404 (1 ) 809 United States and Foreign Taxes 71 (1 ) 140 1 211 Equity in Earnings of Subsidiaries 246 44 — (290 ) — Net Income (Loss) 583 43 264 (292 ) 598 Less: Minority Shareholders’ Net Income — — 15 — 15 Goodyear Net Income (Loss) $ 583 $ 43 $ 249 $ (292 ) $ 583 Comprehensive Income (Loss) $ 476 $ 25 $ 29 $ (64 ) $ 466 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (10 ) — (10 ) Goodyear Comprehensive Income (Loss) $ 476 $ 25 $ 39 $ (64 ) $ 476 Consolidating Statements of Operations Nine Months Ended September 30, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,420 $ 883 $ 7,066 $ (2,063 ) $ 11,306 Cost of Goods Sold 4,230 818 5,655 (2,104 ) 8,599 Selling, Administrative and General Expense 731 26 943 — 1,700 Rationalizations 22 — 80 — 102 Interest Expense 196 6 96 (38 ) 260 Other (Income) Expense (50 ) 1 (6 ) 109 54 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 291 32 298 (30 ) 591 United States and Foreign Taxes 69 6 61 — 136 Equity in Earnings of Subsidiaries 220 28 — (248 ) — Net Income (Loss) 442 54 237 (278 ) 455 Less: Minority Shareholders’ Net Income — — 13 — 13 Goodyear Net Income (Loss) $ 442 $ 54 $ 224 $ (278 ) $ 442 Comprehensive Income (Loss) $ 625 $ 57 $ 426 $ (456 ) $ 652 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 27 — 27 Goodyear Comprehensive Income (Loss) $ 625 $ 57 $ 399 $ (456 ) $ 625 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 815 $ (5 ) $ (295 ) $ (539 ) $ (24 ) Cash Flows from Investing Activities: Capital Expenditures (248 ) (55 ) (311 ) (1 ) (615 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (61 ) — (61 ) Short Term Securities Redeemed — — 61 — 61 Capital Contributions and Loans Incurred (597 ) — (213 ) 810 — Capital Redemptions and Loans Paid 193 — 430 (623 ) — Notes Receivable (50 ) — — — (50 ) Other Transactions 3 — (4 ) — (1 ) Total Cash Flows from Investing Activities (699 ) (53 ) (98 ) 186 (664 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 800 — 658 — 1,458 Short Term Debt and Overdrafts Paid (775 ) — (492 ) — (1,267 ) Long Term Debt Incurred 2,305 15 2,384 — 4,704 Long Term Debt Paid (1,982 ) — (2,010 ) — (3,992 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (200 ) — — — (200 ) Common Stock Dividends Paid (100 ) — — — (100 ) Capital Contributions and Loans Incurred 213 52 545 (810 ) — Capital Redemptions and Loans Paid (430 ) (14 ) (179 ) 623 — Intercompany Dividends Paid — — (540 ) 540 — Transactions with Minority Interests in Subsidiaries — — (27 ) — (27 ) Debt Related Costs and Other Transactions 16 — (19 ) — (3 ) Total Cash Flows from Financing Activities (149 ) 53 320 353 577 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (1 ) (36 ) — (37 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (6 ) (109 ) — (148 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 168 $ 26 $ 768 $ — $ 962 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (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 $ 179 $ — $ (303 ) $ (30 ) $ (154 ) Cash Flows from Investing Activities: Capital Expenditures (247 ) (115 ) (323 ) 2 (683 ) Asset Dispositions 1 — 8 — 9 Short Term Securities Acquired — — (51 ) — (51 ) Short Term Securities Redeemed — — 51 — 51 Capital Contributions and Loans Incurred (75 ) — (41 ) 116 — Capital Redemptions and Loans Paid 21 — 61 (82 ) — Other Transactions — — (1 ) — (1 ) Total Cash Flows from Investing Activities (300 ) (115 ) (296 ) 36 (675 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 175 — 369 — 544 Short Term Debt and Overdrafts Paid (145 ) — (378 ) — (523 ) Long Term Debt Incurred 2,597 52 2,323 — 4,972 Long Term Debt Paid (2,310 ) — (1,883 ) — (4,193 ) Common Stock Issued 12 — — — 12 Common Stock Repurchased (205 ) — — — (205 ) Common Stock Dividends Paid (75 ) — — — (75 ) Capital Contributions and Loans Incurred 41 62 13 (116 ) — Capital Redemptions and Loans Paid (61 ) (21 ) — 82 — Intercompany Dividends Paid — — (28 ) 28 — Transactions with Minority Interests in Subsidiaries — — (6 ) — (6 ) Debt Related Costs and Other Transactions (38 ) — (31 ) — (69 ) Total Cash Flows from Financing Activities (9 ) 93 379 (6 ) 457 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 3 48 — 51 Net Change in Cash, Cash Equivalents and Restricted Cash (130 ) (19 ) (172 ) — (321 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 210 55 924 — 1,189 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 80 $ 36 $ 752 $ — $ 868 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America ("US GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “ 2017 Form 10-K”). Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2018 . |
Recently Issued and Adopted Accounting Standards | Effective January 1, 2018, we adopted an accounting standards update, and all related amendments, 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 or services. We applied the new guidance to all open contracts at the date of adoption using the modified retrospective method. We recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2017 New Standard January 1, 2018 Accounts Receivable $ 2,025 $ 3 $ 2,028 Prepaid Expenses and Other Current Assets 224 7 231 Deferred Income Taxes — Asset 2,008 1 2,009 Accounts Payable — Trade 2,807 7 2,814 Other Current Liabilities 1,026 7 1,033 Retained Earnings 6,044 (3 ) 6,041 The impact of the adoption of the standards update on our Consolidated Statements of Operations for the nine month period ended September 30, 2018 was an increase of $7 million to Net Sales and an increase of $5 million to Net Income . There was no impact to Net Sales or Net Income for the three month period ended September 30, 2018. The impact of the adoption of the standards update on our Consolidated Balance Sheet as of September 30, 2018 was as follows: As of September 30, 2018 Balances (In millions) As Reported Without Adoption Effect of Change Accounts Receivable $ 2,670 $ 2,658 $ 12 Prepaid Expenses and Other Current Assets 249 238 11 Deferred Income Taxes — Asset 1,908 1,909 (1 ) Accounts Payable — Trade 2,819 2,810 9 Other Current Liabilities 795 784 11 Retained Earnings 6,525 6,523 2 We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis. Effective January 1, 2018, we adopted an accounting standards update intended to improve the financial statement presentation of pension and postretirement benefits cost. The new guidance requires employers that offer defined benefit pension or other postretirement benefit plans to report service cost in the same income statement line as compensation costs and to report non-service related costs separately from service cost outside a sub-total of income from operations, if one is presented. In addition, the new guidance allows only service cost to be capitalized. We applied the new guidance using the retrospective method. In alignment with the new standards update, we reclassified $15 million and $27 million of expense from Cost of Goods Sold ("CGS") and $11 million and $18 million of expense from Selling, Administrative and General Expense (“SAG”), including corporate related costs of $16 million and $22 million , to Other (Income) Expense for the three and nine months ended September 30, 2017 , respectively. The provision of the new standards update that allows only service cost to be capitalized resulted in an additional one-time charge of $9 million which was recorded in Other (Income) Expense for the nine months ended September 30, 2018 . We expect service related costs of approximately $35 million per year, including approximately $5 million per year of corporate related costs, will remain in CGS and SAG. Further, we expect approximately $90 million of non-service related costs, including approximately $15 million of corporate related costs and excluding settlement/curtailment charges, to be classified in Other (Income) Expense during 2018. Effective January 1, 2018, we adopted an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers . As a result of using the modified retrospective adoption approach, $2 million was recorded as a cumulative effect adjustment to increase Retained Earnings, with Deferred Income Taxes increasing by $7 million and Other Assets decreasing by $5 million . We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis. Effective January 1, 2018, we adopted an accounting standards update with new guidance to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires the application of modification accounting if the value, vesting conditions or classification of the award changes. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with new guidance requiring a customer in a cloud computing arrangement that is a service contract to follow existing internal-use software guidance to determine which implementation costs to capitalize as an asset. The standards update is effective for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In February 2018, the FASB issued an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act. The new guidance requires additional disclosures, regardless of whether the optional reclassification is elected. The standards update is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. Goodyear has elected not to adopt this optional reclassification. In August 2017, the FASB issued an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The standards update is effective using a modified retrospective approach, with the presentation and disclosure guidance required prospectively, for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements. In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet. The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. As originally issued, the standards update requires application at the beginning of the earliest comparative period presented at the time of adoption. In July 2018, the FASB issued new guidance allowing entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented. We plan to elect this optional transition method. The standard also provides for certain practical expedients. We have completed aggregating our worldwide lease contracts, are currently in the process of evaluating those lease contracts and are implementing a new lease accounting system to support the accounting and disclosure requirements of this standards update. The adoption of this standards update will have a material impact on our financial statements as we have significant operating lease commitments that are off-balance sheet in accordance with current US GAAP. |
Principles of Consolidation | The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. |
Restricted Cash | Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. |
Reclassifications and Adjustments | Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2017 New Standard January 1, 2018 Accounts Receivable $ 2,025 $ 3 $ 2,028 Prepaid Expenses and Other Current Assets 224 7 231 Deferred Income Taxes — Asset 2,008 1 2,009 Accounts Payable — Trade 2,807 7 2,814 Other Current Liabilities 1,026 7 1,033 Retained Earnings 6,044 (3 ) 6,041 The impact of the adoption of the standards update on our Consolidated Balance Sheet as of September 30, 2018 was as follows: As of September 30, 2018 Balances (In millions) As Reported Without Adoption Effect of Change Accounts Receivable $ 2,670 $ 2,658 $ 12 Prepaid Expenses and Other Current Assets 249 238 11 Deferred Income Taxes — Asset 1,908 1,909 (1 ) Accounts Payable — Trade 2,819 2,810 9 Other Current Liabilities 795 784 11 Retained Earnings 6,525 6,523 2 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: September 30, (In millions) 2018 2017 Cash and Cash Equivalents $ 896 $ 822 Restricted Cash 66 46 Total Cash, Cash Equivalents and Restricted Cash $ 962 $ 868 |
Restrictions on Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: September 30, (In millions) 2018 2017 Cash and Cash Equivalents $ 896 $ 822 Restricted Cash 66 46 Total Cash, Cash Equivalents and Restricted Cash $ 962 $ 868 |
Net Sales (Tables)
Net Sales (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Net Sales From Contracts with Customers | Nine Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 4,721 $ 3,545 $ 1,508 $ 9,774 Other tire and related sales 460 303 94 857 Retail services and service related sales 426 29 60 515 Chemical 437 — — 437 Other 10 3 3 16 Net Sales by reportable segment $ 6,054 $ 3,880 $ 1,665 $ 11,599 The following table shows disaggregated net sales from contracts with customers by major source: Three Months Ended September 30, 2018 Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 1,647 $ 1,184 $ 479 $ 3,310 Other tire and related sales 166 100 32 298 Retail services and service related sales 145 5 19 169 Chemical 146 — — 146 Other 3 1 1 5 Net Sales by reportable segment $ 2,107 $ 1,290 $ 531 $ 3,928 |
Balance and Changes in Deferred Revenue Related to Contracts with Customers | The following table presents the balance of deferred revenue related to contracts with customers, and changes during the nine months ended September 30, 2018 : (In millions) Balance at December 31, 2017 $ 121 Revenue deferred during period 88 Revenue recognized during period (117 ) Impact of foreign currency translation — Balance at September 30, 2018 $ 92 |
Costs Associated with Rationa_2
Costs Associated with Rationalization Programs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Roll-Forward of the Rationalization Liability Between Periods | The following table shows the roll-forward of our liability between periods: Other Exit and Associate- Non-cancelable (In millions) Related Costs Lease Costs Total Balance at December 31, 2017 $ 210 $ 3 $ 213 2018 Charges 39 14 53 Incurred, including net Foreign Currency Translation of $2 million and $0 million, respectively (137 ) (16 ) (153 ) Reversed to the Statements of Operations (13 ) — (13 ) Balance at September 30, 2018 $ 99 $ 1 $ 100 |
Net Rationalization Charges Included in Income Before Income Taxes | The following table shows net rationalization charges included in Income before Income Taxes: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Current Year Plans Associate Severance and Other Related Costs $ — $ 26 $ 32 $ 51 Other Exit and Non-Cancelable Lease Costs 1 — 1 1 Current Year Plans - Net Charges $ 1 $ 26 $ 33 $ 52 Prior Year Plans Associate Severance and Other Related Costs $ 1 $ (5 ) $ (6 ) $ 12 Benefit Plan Curtailments and Settlements — 13 — 14 Other Exit and Non-Cancelable Lease Costs 3 12 13 24 Prior Year Plans - Net Charges 4 20 7 50 Total Net Charges $ 5 $ 46 $ 40 $ 102 Asset Write-off and Accelerated Depreciation Charges $ — $ 10 $ 2 $ 39 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Income) Expense | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Gain on TireHub transaction, net of transaction costs $ (287 ) $ — $ (273 ) $ — Non-service related pension and other postretirement benefits cost 33 26 92 45 Financing fees and financial instruments 9 8 27 48 Royalty income (5 ) (10 ) (15 ) (26 ) Interest income (6 ) (3 ) (12 ) (10 ) Net foreign currency exchange (gains) losses (2 ) (1 ) (7 ) (4 ) General and product liability expense (income) - discontinued products 5 (3 ) 3 — Net (gains) losses on asset sales (1 ) (1 ) (1 ) (14 ) Miscellaneous expense 1 14 15 15 $ (253 ) $ 30 $ (171 ) $ 54 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | Basic and diluted earnings per common share are calculated as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2018 2017 2018 2017 Earnings per share — basic: Goodyear net income $ 351 $ 129 $ 583 $ 442 Weighted average shares outstanding 236 250 238 251 Earnings per common share — basic $ 1.49 $ 0.52 $ 2.45 $ 1.76 Earnings per share — diluted: Goodyear net income $ 351 $ 129 $ 583 $ 442 Weighted average shares outstanding 236 250 238 251 Dilutive effect of stock options and other dilutive securities 2 4 3 4 Weighted average shares outstanding — diluted 238 254 241 255 Earnings per common share — diluted $ 1.48 $ 0.50 $ 2.42 $ 1.73 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Sales: Americas $ 2,107 $ 2,041 $ 6,054 $ 6,028 Europe, Middle East and Africa 1,290 1,311 3,880 3,664 Asia Pacific 531 569 1,665 1,614 Net Sales $ 3,928 $ 3,921 $ 11,599 $ 11,306 Segment Operating Income: Americas $ 194 $ 196 $ 475 $ 630 Europe, Middle East and Africa 111 90 289 271 Asia Pacific 57 81 203 225 Total Segment Operating Income $ 362 $ 367 $ 967 $ 1,126 Less: Rationalizations $ 5 $ 46 $ 40 $ 102 Interest expense 82 84 236 260 Other (income) expense (Note 4) (253 ) 30 (171 ) 54 Asset write-offs and accelerated depreciation — 10 2 39 Corporate incentive compensation plans (1 ) — 6 27 Intercompany profit elimination 2 21 (2 ) 16 Retained expenses of divested operations 2 3 7 9 Other 12 11 40 28 Income before Income Taxes $ 513 $ 162 $ 809 $ 591 |
Charges and Credits Attributable to the SBUs | Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales and Asset write-offs and accelerated depreciation were not charged (credited) to the strategic business units ("SBUs") for performance evaluation purposes but were attributable to the SBUs as follows: Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Rationalizations: Americas $ — $ 4 $ 3 $ 6 Europe, Middle East and Africa 5 25 31 78 Asia Pacific — 1 3 2 Total Segment Rationalizations $ 5 $ 30 $ 37 $ 86 Corporate — 16 3 16 Total Rationalizations $ 5 $ 46 $ 40 $ 102 Net (Gains) Losses on Asset Sales: Americas (1) $ (288 ) $ (1 ) $ (276 ) $ (4 ) Europe, Middle East and Africa — — 2 (10 ) Total Net (Gains) Losses on Asset Sales $ (288 ) $ (1 ) $ (274 ) $ (14 ) (1) Americas Net (Gains) Losses on Asset Sales for the three and nine months ended September 30, 2018 includes gains of $287 million and $273 million , respectively, related to the TireHub transaction, net of transaction costs. Asset Write-offs and Accelerated Depreciation: Europe, Middle East and Africa $ — $ 10 $ 2 $ 39 Total Asset Write-offs and Accelerated Depreciation $ — $ 10 $ 2 $ 39 |
Financing Arrangements and De_2
Financing Arrangements and Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year | The following table presents amounts due within one year: September 30, December 31, (In millions) 2018 2017 Notes payable and overdrafts $ 445 $ 262 Weighted average interest rate 6.63 % 5.00 % Chinese credit facilities $ 43 $ 113 Mexican credit facilities 90 — Other foreign and domestic debt (including capital leases) 338 278 Long term debt and capital leases due within one year $ 471 $ 391 Weighted average interest rate 3.49 % 6.86 % Total obligations due within one year $ 916 $ 653 |
Long Term Debt and Capital Leases, Net | The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: September 30, 2018 December 31, 2017 Interest Interest (In millions) Amount Rate Amount Rate Notes: 8.75% due 2020 $ 277 $ 275 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 290 300 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2021 325 3.41 % — — Second lien term loan facility due 2025 400 4.15 % 400 3.50 % €550 million revolving credit facility due 2020 360 3.90 % — — Pan-European accounts receivable facility 221 0.89 % 224 0.90 % Mexican credit facilities 340 3.90 % 340 3.14 % Chinese credit facilities 157 4.98 % 212 4.87 % Other foreign and domestic debt (1) 955 5.28 % 967 6.02 % 6,075 5,468 Unamortized deferred financing fees (37 ) (41 ) 6,038 5,427 Capital lease obligations 37 40 6,075 5,467 Less portion due within one year (471 ) (391 ) $ 5,604 $ 5,076 (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 Americas Headquarters. |
Fair Values for Foreign Currency Contracts Not Designated as Hedging Instruments | The following table presents the fair values for foreign currency contracts not designated as hedging instruments: September 30, December 31, (In millions) 2018 2017 Fair Values — Current asset (liability): Accounts receivable $ 22 $ 3 Other current liabilities (3 ) (9 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: September 30, December 31, (In millions) 2018 2017 Fair Values — Current asset (liability): Accounts receivable $ 6 $ 1 Other current liabilities (2 ) (8 ) Fair Values — Long term asset (liability): Other assets $ 2 $ — Other long term liabilities — (2 ) |
Information Related to Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents information related to foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Three Months Ended Nine Months Ended September 30, September 30, (In millions) (Income) Expense 2018 2017 2018 2017 Amounts deferred to Accumulated Other Comprehensive Loss ("AOCL") $ (1 ) $ 7 $ (9 ) $ 28 Amount of deferred (gain) loss reclassified from AOCL into CGS 1 1 8 (3 ) Amounts excluded from effectiveness testing — (1 ) (1 ) (2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Information About Assets and Liabilities Recorded at Fair Value | The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at September 30, 2018 and December 31, 2017 : 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) 2018 2017 2018 2017 2018 2017 2018 2017 Assets: Investments $ 11 $ 11 $ 11 $ 11 $ — $ — $ — $ — Foreign Exchange Contracts 30 4 — — 30 4 — — Total Assets at Fair Value $ 41 $ 15 $ 11 $ 11 $ 30 $ 4 $ — $ — Liabilities: Foreign Exchange Contracts $ 5 $ 19 $ — $ — $ 5 $ 19 $ — $ — Total Liabilities at Fair Value $ 5 $ 19 $ — $ — $ 5 $ 19 $ — $ — |
Supplemental Fair Value Information About Debt, Excluding Capital Leases | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at September 30, 2018 and December 31, 2017 : September 30, December 31, (In millions) 2018 2017 Fixed Rate Debt (1) : Carrying amount — liability $ 3,601 $ 3,616 Fair value — liability 3,551 3,786 Variable Rate Debt (1) : Carrying amount — liability $ 2,437 $ 1,811 Fair value — liability 2,421 1,811 (1) Excludes Notes Payable and Overdrafts of $ 445 million and $ 262 million at September 30, 2018 and December 31, 2017, respectively, of which $ 245 million and $ 110 million , respectively, are at fixed rates and $ 200 million and $ 152 million , respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. |
Pension Savings And Other Postr
Pension Savings And Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Cost | Defined benefit pension cost follows: U.S. U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 3 $ 3 Interest cost 39 39 118 120 Expected return on plan assets (55 ) (60 ) (164 ) (181 ) Amortization of net losses 28 27 84 83 Net periodic pension cost $ 13 $ 7 $ 41 $ 25 Net curtailments/settlements/termination benefits — 24 3 25 Total defined benefit pension cost $ 13 $ 31 $ 44 $ 50 Non-U.S. Non-U.S. Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2018 2017 2018 2017 Service cost $ 7 $ 8 $ 21 $ 23 Interest cost 17 18 52 53 Expected return on plan assets (17 ) (20 ) (53 ) (59 ) Amortization of net losses 7 8 22 24 Net periodic pension cost $ 14 $ 14 $ 42 $ 41 Net curtailments/settlements/termination benefits 10 2 10 2 Total defined benefit pension cost $ 24 $ 16 $ 52 $ 43 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Asbestos Claims Activity | A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. Nine Months Ended Year Ended (Dollars in millions) September 30, 2018 December 31, 2017 Pending claims, beginning of period 54,300 64,400 New claims filed 1,000 1,900 Claims settled/dismissed (11,600 ) (12,000 ) Pending claims, end of period 43,700 54,300 Payments (1) $ 8 $ 16 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. |
Changes in Shareholders' Equi_2
Changes in Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Changes In Shareholders' Equity | The following tables present the changes in shareholders’ equity for the nine months ended September 30, 2018 and 2017 : September 30, 2018 September 30, 2017 (In millions) Goodyear Shareholders’ Equity Minority Shareholders’ Equity – Nonredeemable Total Shareholders’ Equity Goodyear Shareholders’ Equity Minority Shareholders’ Equity – Nonredeemable Total Shareholders’ Equity Balance at beginning of period $ 4,603 $ 247 $ 4,850 $ 4,507 $ 218 $ 4,725 Comprehensive income (loss): Net income 583 15 598 442 13 455 Foreign currency translation, net of tax of ($8) in 2018 ($44 in 2017) (210 ) (25 ) (235 ) 155 14 169 Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $24 in 2018 ($31 in 2017) 79 — 79 57 — 57 (Increase)/Decrease in net actuarial losses, net of tax of $2 in 2018 (($15) in 2017) (1 ) — (1 ) (23 ) — (23 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $4 in 2018 ($9 in 2017) 13 — 13 15 — 15 Deferred derivative gains (losses), net of tax of $3 in 2018 (($9) in 2017) 6 — 6 (19 ) — (19 ) Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017) 6 — 6 (2 ) — (2 ) Other comprehensive income (loss) (107 ) (25 ) (132 ) 183 14 197 Total comprehensive income (loss) 476 (10 ) 466 625 27 652 Adoption of new accounting standards updates (Note 1) (1 ) — (1 ) — — — Dividends declared to minority shareholders — (8 ) (8 ) — (6 ) (6 ) Stock-based compensation plans (Note 11) 14 — 14 17 — 17 Repurchase of common stock (Note 13) (200 ) — (200 ) (205 ) — (205 ) Dividends declared (Note 13) (101 ) — (101 ) (75 ) — (75 ) Common stock issued from treasury 4 — 4 13 — 13 Purchase of minority shares 5 (29 ) (24 ) — — — Balance at end of period $ 4,800 $ 200 $ 5,000 $ 4,882 $ 239 $ 5,121 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table presents changes in Accumulated Other Comprehensive Loss (AOCL), by component, for the nine months ended September 30, 2018 and 2017 : (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications, net of tax (210 ) (1 ) 6 (205 ) Amounts reclassified from accumulated other comprehensive loss, net of tax — 92 6 98 Balance at September 30, 2018 $ (1,125 ) $ (2,961 ) $ 3 $ (4,083 ) (In millions) Income (Loss) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Total Balance at December 31, 2016 $ (1,155 ) $ (3,053 ) $ 10 $ (4,198 ) Other comprehensive income (loss) before reclassifications, net of tax 155 (23 ) (19 ) 113 Amounts reclassified from accumulated other comprehensive loss, net of tax — 72 (2 ) 70 Balance at September 30, 2017 $ (1,000 ) $ (3,004 ) $ (11 ) $ (4,015 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated Other Comprehensive Loss: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In millions) (Income) Expense Amount Reclassified Amount Reclassified Affected Line Item in the Consolidated Statements of Operations Component of AOCL from AOCL from AOCL Amortization of prior service cost and unrecognized gains and losses $ 34 $ 28 $ 103 $ 88 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures 11 24 17 24 Other (Income) Expense Unrecognized Net Actuarial Losses and Prior Service Costs, before tax 45 52 120 112 Tax effect (10 ) (19 ) (28 ) (40 ) United States and Foreign Taxes Net of tax $ 35 $ 33 $ 92 $ 72 Goodyear Net Income Deferred Derivative (Gains) Losses, before tax $ 1 $ 1 $ 8 $ (3 ) Cost of Goods Sold Tax effect — — (2 ) 1 United States and Foreign Taxes Net of tax $ 1 $ 1 $ 6 $ (2 ) Goodyear Net Income Total reclassifications $ 36 $ 34 $ 98 $ 70 Goodyear Net Income |
Consolidating Financial Infor_2
Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 26 $ 743 $ — $ 896 Accounts Receivable, net 732 166 1,772 — 2,670 Accounts Receivable From Affiliates 235 192 — (427 ) — Inventories 1,506 71 1,393 (32 ) 2,938 Prepaid Expenses and Other Current Assets 78 2 165 4 249 Total Current Assets 2,678 457 4,073 (455 ) 6,753 Goodwill 24 1 423 124 572 Intangible Assets 118 — 19 — 137 Deferred Income Taxes 1,487 30 388 3 1,908 Other Assets 554 51 484 — 1,089 Investments in Subsidiaries 3,943 516 — (4,459 ) — Property, Plant and Equipment, net 2,455 434 4,268 (25 ) 7,132 Total Assets $ 11,259 $ 1,489 $ 9,655 $ (4,812 ) $ 17,591 Liabilities: Current Liabilities: Accounts Payable-Trade $ 921 $ 121 $ 1,777 $ — $ 2,819 Accounts Payable to Affiliates — — 427 (427 ) — Compensation and Benefits 278 16 223 — 517 Other Current Liabilities 359 (7 ) 443 — 795 Notes Payable and Overdrafts 25 — 420 — 445 Long Term Debt and Capital Leases Due Within One Year 58 — 413 — 471 Total Current Liabilities 1,641 130 3,703 (427 ) 5,047 Long Term Debt and Capital Leases 3,873 167 1,564 — 5,604 Compensation and Benefits 575 97 678 — 1,350 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 370 9 116 — 495 Total Liabilities 6,459 403 6,156 (427 ) 12,591 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,567 1,086 3,299 (4,385 ) 4,567 Goodyear Shareholders’ Equity 4,800 1,086 3,299 (4,385 ) 4,800 Minority Shareholders’ Equity — Nonredeemable — — 200 — 200 Total Shareholders’ Equity 4,800 1,086 3,499 (4,385 ) 5,000 Total Liabilities and Shareholders’ Equity $ 11,259 $ 1,489 $ 9,655 $ (4,812 ) $ 17,591 Condensed Consolidating Balance Sheet December 31, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 176 $ 32 $ 835 $ — $ 1,043 Accounts Receivable, net 649 116 1,260 — 2,025 Accounts Receivable From Affiliates — 254 71 (325 ) — Inventories 1,444 43 1,329 (29 ) 2,787 Prepaid Expenses and Other Current Assets 59 3 157 5 224 Total Current Assets 2,328 448 3,652 (349 ) 6,079 Goodwill 24 1 444 126 595 Intangible Assets 119 — 20 — 139 Deferred Income Taxes 1,549 35 424 — 2,008 Other Assets 221 51 518 2 792 Investments in Subsidiaries 4,424 503 — (4,927 ) — Property, Plant and Equipment, net 2,491 420 4,569 (29 ) 7,451 Total Assets $ 11,156 $ 1,458 $ 9,627 $ (5,177 ) $ 17,064 Liabilities: Current Liabilities: Accounts Payable-Trade $ 927 $ 115 $ 1,765 $ — $ 2,807 Accounts Payable to Affiliates 325 — — (325 ) — Compensation and Benefits 322 15 202 — 539 Other Current Liabilities 323 2 701 — 1,026 Notes Payable and Overdrafts — — 262 — 262 Long Term Debt and Capital Leases Due Within One Year 60 — 331 — 391 Total Current Liabilities 1,957 132 3,261 (325 ) 5,025 Long Term Debt and Capital Leases 3,544 152 1,380 — 5,076 Compensation and Benefits 682 109 724 — 1,515 Deferred Income Taxes — 1 99 — 100 Other Long Term Liabilities 370 8 120 — 498 Total Liabilities 6,553 402 5,584 (325 ) 12,214 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 240 — — — 240 Other Equity 4,363 1,056 3,796 (4,852 ) 4,363 Goodyear Shareholders’ Equity 4,603 1,056 3,796 (4,852 ) 4,603 Minority Shareholders’ Equity — Nonredeemable — — 247 — 247 Total Shareholders’ Equity 4,603 1,056 4,043 (4,852 ) 4,850 Total Liabilities and Shareholders’ Equity $ 11,156 $ 1,458 $ 9,627 $ (5,177 ) $ 17,064 |
Consolidating Statements of Operations | Consolidating Statements of Operations Three Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,922 $ 342 $ 2,373 $ (709 ) $ 3,928 Cost of Goods Sold 1,547 319 1,879 (717 ) 3,028 Selling, Administrative and General Expense 239 8 306 — 553 Rationalizations 1 — 4 — 5 Interest Expense 55 6 28 (7 ) 82 Other (Income) Expense (295 ) 3 11 28 (253 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 375 6 145 (13 ) 513 United States and Foreign Taxes 111 1 48 (1 ) 159 Equity in Earnings of Subsidiaries 87 10 — (97 ) — Net Income (Loss) 351 15 97 (109 ) 354 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 351 $ 15 $ 94 $ (109 ) $ 351 Comprehensive Income (Loss) $ 290 $ (5 ) $ (3 ) $ 2 $ 284 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (6 ) — (6 ) Goodyear Comprehensive Income (Loss) $ 290 $ (5 ) $ 3 $ 2 $ 290 Consolidating Statements of Operations Three Months Ended September 30, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 1,790 $ 294 $ 2,448 $ (611 ) $ 3,921 Cost of Goods Sold 1,393 261 2,021 (621 ) 3,054 Selling, Administrative and General Expense 225 9 311 — 545 Rationalizations 20 — 26 — 46 Interest Expense 62 2 34 (14 ) 84 Other (Income) Expense (37 ) (5 ) 9 63 30 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 127 27 47 (39 ) 162 United States and Foreign Taxes 9 6 12 3 30 Equity in Earnings of Subsidiaries 11 (3 ) — (8 ) — Net Income (Loss) 129 18 35 (50 ) 132 Less: Minority Shareholders’ Net Income — — 3 — 3 Goodyear Net Income (Loss) $ 129 $ 18 $ 32 $ (50 ) $ 129 Comprehensive Income (Loss) $ 166 $ 16 $ 86 $ (98 ) $ 170 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 4 — 4 Goodyear Comprehensive Income (Loss) $ 166 $ 16 $ 82 $ (98 ) $ 166 Consolidating Statements of Operations Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,440 $ 980 $ 7,236 $ (2,057 ) $ 11,599 Cost of Goods Sold 4,376 927 5,756 (2,106 ) 8,953 Selling, Administrative and General Expense 756 26 950 — 1,732 Rationalizations 6 — 34 — 40 Interest Expense 165 16 73 (18 ) 236 Other (Income) Expense (271 ) 13 19 68 (171 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 408 (2 ) 404 (1 ) 809 United States and Foreign Taxes 71 (1 ) 140 1 211 Equity in Earnings of Subsidiaries 246 44 — (290 ) — Net Income (Loss) 583 43 264 (292 ) 598 Less: Minority Shareholders’ Net Income — — 15 — 15 Goodyear Net Income (Loss) $ 583 $ 43 $ 249 $ (292 ) $ 583 Comprehensive Income (Loss) $ 476 $ 25 $ 29 $ (64 ) $ 466 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (10 ) — (10 ) Goodyear Comprehensive Income (Loss) $ 476 $ 25 $ 39 $ (64 ) $ 476 Consolidating Statements of Operations Nine Months Ended September 30, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 5,420 $ 883 $ 7,066 $ (2,063 ) $ 11,306 Cost of Goods Sold 4,230 818 5,655 (2,104 ) 8,599 Selling, Administrative and General Expense 731 26 943 — 1,700 Rationalizations 22 — 80 — 102 Interest Expense 196 6 96 (38 ) 260 Other (Income) Expense (50 ) 1 (6 ) 109 54 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 291 32 298 (30 ) 591 United States and Foreign Taxes 69 6 61 — 136 Equity in Earnings of Subsidiaries 220 28 — (248 ) — Net Income (Loss) 442 54 237 (278 ) 455 Less: Minority Shareholders’ Net Income — — 13 — 13 Goodyear Net Income (Loss) $ 442 $ 54 $ 224 $ (278 ) $ 442 Comprehensive Income (Loss) $ 625 $ 57 $ 426 $ (456 ) $ 652 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 27 — 27 Goodyear Comprehensive Income (Loss) $ 625 $ 57 $ 399 $ (456 ) $ 625 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 815 $ (5 ) $ (295 ) $ (539 ) $ (24 ) Cash Flows from Investing Activities: Capital Expenditures (248 ) (55 ) (311 ) (1 ) (615 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (61 ) — (61 ) Short Term Securities Redeemed — — 61 — 61 Capital Contributions and Loans Incurred (597 ) — (213 ) 810 — Capital Redemptions and Loans Paid 193 — 430 (623 ) — Notes Receivable (50 ) — — — (50 ) Other Transactions 3 — (4 ) — (1 ) Total Cash Flows from Investing Activities (699 ) (53 ) (98 ) 186 (664 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 800 — 658 — 1,458 Short Term Debt and Overdrafts Paid (775 ) — (492 ) — (1,267 ) Long Term Debt Incurred 2,305 15 2,384 — 4,704 Long Term Debt Paid (1,982 ) — (2,010 ) — (3,992 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (200 ) — — — (200 ) Common Stock Dividends Paid (100 ) — — — (100 ) Capital Contributions and Loans Incurred 213 52 545 (810 ) — Capital Redemptions and Loans Paid (430 ) (14 ) (179 ) 623 — Intercompany Dividends Paid — — (540 ) 540 — Transactions with Minority Interests in Subsidiaries — — (27 ) — (27 ) Debt Related Costs and Other Transactions 16 — (19 ) — (3 ) Total Cash Flows from Financing Activities (149 ) 53 320 353 577 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (1 ) (36 ) — (37 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (6 ) (109 ) — (148 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 168 $ 26 $ 768 $ — $ 962 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (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 $ 179 $ — $ (303 ) $ (30 ) $ (154 ) Cash Flows from Investing Activities: Capital Expenditures (247 ) (115 ) (323 ) 2 (683 ) Asset Dispositions 1 — 8 — 9 Short Term Securities Acquired — — (51 ) — (51 ) Short Term Securities Redeemed — — 51 — 51 Capital Contributions and Loans Incurred (75 ) — (41 ) 116 — Capital Redemptions and Loans Paid 21 — 61 (82 ) — Other Transactions — — (1 ) — (1 ) Total Cash Flows from Investing Activities (300 ) (115 ) (296 ) 36 (675 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 175 — 369 — 544 Short Term Debt and Overdrafts Paid (145 ) — (378 ) — (523 ) Long Term Debt Incurred 2,597 52 2,323 — 4,972 Long Term Debt Paid (2,310 ) — (1,883 ) — (4,193 ) Common Stock Issued 12 — — — 12 Common Stock Repurchased (205 ) — — — (205 ) Common Stock Dividends Paid (75 ) — — — (75 ) Capital Contributions and Loans Incurred 41 62 13 (116 ) — Capital Redemptions and Loans Paid (61 ) (21 ) — 82 — Intercompany Dividends Paid — — (28 ) 28 — Transactions with Minority Interests in Subsidiaries — — (6 ) — (6 ) Debt Related Costs and Other Transactions (38 ) — (31 ) — (69 ) Total Cash Flows from Financing Activities (9 ) 93 379 (6 ) 457 Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 3 48 — 51 Net Change in Cash, Cash Equivalents and Restricted Cash (130 ) (19 ) (172 ) — (321 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Period 210 55 924 — 1,189 Cash, Cash Equivalents and Restricted Cash at End of the Period $ 80 $ 36 $ 752 $ — $ 868 |
Accounting Policies - Schedule
Accounting Policies - Schedule of Changes in Accounting Policy (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, net | $ 2,670 | $ 2,028 | $ 2,025 |
Prepaid Expenses and Other Current Assets | 249 | 231 | 224 |
Deferred Income Taxes | 1,908 | 2,009 | 2,008 |
Accounts Payable — Trade | 2,819 | 2,814 | 2,807 |
Other Current Liabilities | 795 | 1,033 | 1,026 |
Retained Earnings | 6,525 | 6,041 | 6,044 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, net | 2,025 | ||
Prepaid Expenses and Other Current Assets | 224 | ||
Deferred Income Taxes | 2,008 | ||
Accounts Payable — Trade | 2,807 | ||
Other Current Liabilities | 1,026 | ||
Retained Earnings | $ 6,044 | ||
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, net | 2,658 | ||
Prepaid Expenses and Other Current Assets | 238 | ||
Deferred Income Taxes | 1,909 | ||
Accounts Payable — Trade | 2,810 | ||
Other Current Liabilities | 784 | ||
Retained Earnings | 6,523 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts Receivable, net | 12 | 3 | |
Prepaid Expenses and Other Current Assets | 11 | 7 | |
Deferred Income Taxes | (1) | 1 | |
Accounts Payable — Trade | 9 | 7 | |
Other Current Liabilities | 11 | 7 | |
Retained Earnings | $ 2 | $ (3) |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net Sales | $ 3,928,000,000 | $ 3,921,000,000 | $ 11,599,000,000 | $ 11,306,000,000 | |||
Net Income | 354,000,000 | 132,000,000 | 598,000,000 | 455,000,000 | |||
Cost of Goods Sold | (3,028,000,000) | (3,054,000,000) | (8,953,000,000) | (8,599,000,000) | |||
Selling, general and administrative expense reclassified | (553,000,000) | (545,000,000) | (1,732,000,000) | (1,700,000,000) | |||
Other (income) expense reclassified | (253,000,000) | 30,000,000 | (171,000,000) | 54,000,000 | |||
Cumulative effect of adoption of new accounting standards | $ (1,000,000) | $ 0 | |||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net Sales | 0 | 7,000,000 | |||||
Net Income | $ 0 | 5,000,000 | |||||
Accounting Standards Update 2016-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cost of Goods Sold | 15,000,000 | 27,000,000 | |||||
Selling, general and administrative expense reclassified | 11,000,000 | 18,000,000 | |||||
General and administrative expense reclassified | $ 16,000,000 | $ 22,000,000 | |||||
Other (income) expense reclassified | $ 9,000,000 | ||||||
Accounting Standards Update 2016-09 | Scenario, Forecast | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net periodic defined benefits expense (reversal of expense) | $ 35,000,000 | ||||||
Net periodic defined benefits expense (reversal of expense), corporate related costs | 5,000,000 | ||||||
Net periodic defined benefits expense (reversal of expense), excluding service cost component | 90,000,000 | ||||||
Net periodic defined benefits expense (reversal of expense), excluding service cost component, corporate related costs | $ 15,000,000 | ||||||
Accounting Standards Update 2016-16 | Deferred Income Taxes | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adoption of new accounting standards | 7,000,000 | ||||||
Accounting Standards Update 2016-16 | Other Assets | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adoption of new accounting standards | (5,000,000) | ||||||
Accounting Standards Update 2016-16 | Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adoption of new accounting standards | $ 2,000,000 |
Accounting Policies - Reconcili
Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 896 | $ 1,043 | $ 822 | |
Restricted Cash | 66 | 46 | ||
Total Cash, Cash Equivalents and Restricted Cash | $ 962 | $ 1,110 | $ 868 | $ 1,189 |
Net Sales - Schedule of Disaggr
Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 3,928 | $ 3,921 | $ 11,599 | $ 11,306 |
Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 3,310 | 9,774 | ||
Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 298 | 857 | ||
Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 169 | 515 | ||
Chemical | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 146 | 437 | ||
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 5 | 16 | ||
Americas | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 2,107 | 2,041 | 6,054 | 6,028 |
Americas | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,647 | 4,721 | ||
Americas | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 166 | 460 | ||
Americas | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 145 | 426 | ||
Americas | Chemical | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 146 | 437 | ||
Americas | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 3 | 10 | ||
Europe, Middle East and Africa | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,290 | 1,311 | 3,880 | 3,664 |
Europe, Middle East and Africa | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1,184 | 3,545 | ||
Europe, Middle East and Africa | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 100 | 303 | ||
Europe, Middle East and Africa | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 5 | 29 | ||
Europe, Middle East and Africa | Chemical | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | ||
Europe, Middle East and Africa | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 1 | 3 | ||
Asia Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 531 | $ 569 | 1,665 | $ 1,614 |
Asia Pacific | Tire unit sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 479 | 1,508 | ||
Asia Pacific | Other tire and related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 32 | 94 | ||
Asia Pacific | Retail services and service related sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 19 | 60 | ||
Asia Pacific | Chemical | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | 0 | 0 | ||
Asia Pacific | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net Sales | $ 1 | $ 3 |
Net Sales - Schedule of Balance
Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, current | $ 49 |
Deferred revenue, noncurrent | 43 |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at December 31, 2017 | 121 |
Revenue deferred during period | 88 |
Revenue recognized during period | (117) |
Impact of foreign currency translation | 0 |
Balance at September 30, 2018 | $ 92 |
Costs Associated with Rationa_3
Costs Associated with Rationalization Programs - Roll-Forward of the Rationalization Liability Between Periods (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 213 | |||
2018 Charges | 53 | |||
Incurred, including net Foreign Currency Translation of $2 million and $0 million, respectively | (153) | |||
Reversed to the Statements of Operations | $ (1) | $ (5) | (13) | $ (7) |
Ending balance | 100 | 100 | ||
Associate Severance and Other Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 210 | |||
2018 Charges | 39 | |||
Incurred, including net Foreign Currency Translation of $2 million and $0 million, respectively | (137) | |||
Reversed to the Statements of Operations | (13) | |||
Ending balance | 99 | 99 | ||
Foreign currency translation gain (loss) | 2 | |||
Other Exit and Non-Cancelable Lease Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3 | |||
2018 Charges | 14 | |||
Incurred, including net Foreign Currency Translation of $2 million and $0 million, respectively | (16) | |||
Reversed to the Statements of Operations | 0 | |||
Ending balance | $ 1 | 1 | ||
Foreign currency translation gain (loss) | $ 0 |
Costs Associated with Rationa_4
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)employee | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations accrual balance | $ 100 | $ 100 | $ 213 | ||
Rationalizations | 5 | $ 46 | 40 | $ 102 | |
Rationalization reversals | 1 | 5 | 13 | 7 | |
Rationalization charges incurred to date | $ 730 | ||||
Rationalization charges expected to be incurred in future periods | 12 | $ 12 | |||
Expected number of positions eliminated | employee | 300 | ||||
Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 1 | 26 | $ 33 | 52 | |
Expected number of positions eliminated | employee | 300 | ||||
Number of positions eliminated | employee | 200 | ||||
Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 4 | 20 | $ 7 | 50 | |
Number of positions eliminated | employee | 500 | ||||
Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations accrual balance | 38 | $ 38 | |||
Employee Severance | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 1 | 25 | 27 | 20 | |
Employee Severance | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 9 | 3 | 13 | ||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations accrual balance | 47 | 47 | |||
EMEA Restructuring, Manufacturing Employee Severance | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 2 | 7 | 4 | 11 | |
Philippsburg Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations accrual balance | 4 | 4 | |||
Philippsburg Restructuring | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 2 | $ 9 | 11 | 29 | |
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 6 | $ 7 | |||
Amiens Restructuring Plan | Amiens Labor Claims | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Loss contingency, number of plaintiffs | employee | 850 |
Costs Associated with Rationa_5
Costs Associated with Rationalization Programs - Net Rationalization Charges Included in Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 5 | $ 46 | $ 40 | $ 102 |
Asset Write-off and Accelerated Depreciation Charges | 0 | 10 | 2 | 39 |
Current Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 1 | 26 | 33 | 52 |
Current Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 26 | 32 | 51 |
Current Year Plans | Other Exit and Non-Cancelable Lease Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 1 | 0 | 1 | 1 |
Prior Year Plans | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 4 | 20 | 7 | 50 |
Prior Year Plans | Associate Severance and Other Related Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 1 | (5) | (6) | 12 |
Prior Year Plans | Pension Curtailment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | 0 | 13 | 0 | 14 |
Prior Year Plans | Other Exit and Non-Cancelable Lease Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Rationalizations | $ 3 | $ 12 | $ 13 | $ 24 |
Other (Income) Expense - Schedu
Other (Income) Expense - Schedule of Other Income and Expense (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Other Income and Expenses [Abstract] | |||||
Gain on TireHub transaction, net of transaction costs | $ (286) | $ (287) | $ 0 | $ (273) | $ 0 |
Non-service related pension and other postretirement benefits cost | 33 | 26 | 92 | 45 | |
Financing fees and financial instruments | 9 | 8 | 27 | 48 | |
Royalty income | (5) | (10) | (15) | (26) | |
Interest income | (6) | (3) | (12) | (10) | |
Net foreign currency exchange (gains) losses | (2) | (1) | (7) | (4) | |
General and product liability expense (income) - discontinued products | 5 | (3) | 3 | 0 | |
Net (gains) losses on asset sales | (1) | (1) | (1) | (14) | |
Miscellaneous expense | 1 | 14 | 15 | 15 | |
Other (income) expense | $ (253) | $ 30 | $ (171) | $ 54 |
Other (Income) Expense - Narrat
Other (Income) Expense - Narrative (Details) - USD ($) | Jul. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 30, 2017 |
Other (Income) Expense [Line Items] | ||||||
Assets (liabilities) transferred to joint venture | $ 6,000,000 | |||||
Fair value of equity investment | 292,000,000 | |||||
Gain (loss) on investments | $ 286,000,000 | $ 287,000,000 | $ 0 | $ 273,000,000 | $ 0 | |
Professional fees | (1,000,000) | 13,000,000 | ||||
Other (Income) Expense | (253,000,000) | 30,000,000 | (171,000,000) | 54,000,000 | ||
Insurance deductible | $ 2,000,000 | $ 12,000,000 | 12,000,000 | 12,000,000 | ||
7% Senior Notes Due 2022 | Senior Notes | ||||||
Other (Income) Expense [Line Items] | ||||||
Payment for debt extinguishment or debt prepayment cost | $ 25,000,000 | |||||
Debt instrument, face amount | $ 700,000,000 | |||||
Interest rate, stated percentage | 7.00% | |||||
Accounting Standards Update, Pension and Postretirement Benefits Cost | Restatement Adjustment | ||||||
Other (Income) Expense [Line Items] | ||||||
Other (Income) Expense | $ 9,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||||
Tax expense | $ 159 | $ 30 | $ 211 | $ 136 | |||
Income before income taxes | 513 | 162 | 809 | 591 | |||
Impact on income tax expense, discrete tax adjustments | (31) | (10) | |||||
Foreign tax credits on dividends | 25 | $ (25) | |||||
Provisional income tax expense (benefit) | 11 | 14 | |||||
Other adjustments, amount | 5 | $ 12 | 4 | $ 23 | |||
Provisional liability | 91 | 91 | $ 77 | ||||
Provision for undistributed foreign earnings amount | $ 10 | $ 10 | 19 | ||||
Tax credit carryforwards, foreign | $ 750 | ||||||
Scenario, Forecast | |||||||
Income Tax Contingency [Line Items] | |||||||
Change in valuation allowance (up to) | $ 25 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings per share — basic: | ||||
Goodyear net income | $ 351 | $ 129 | $ 583 | $ 442 |
Weighted average shares outstanding (shares) | 236 | 250 | 238 | 251 |
Earnings per common share — basic (dollars per share) | $ 1.49 | $ 0.52 | $ 2.45 | $ 1.76 |
Earnings per share — diluted: | ||||
Goodyear net income | $ 351 | $ 129 | $ 583 | $ 442 |
Weighted average shares outstanding (shares) | 236 | 250 | 238 | 251 |
Dilutive effect of stock options and other dilutive securities (shares) | 2 | 4 | 3 | 4 |
Weighted average shares outstanding — diluted (shares) | 238 | 254 | 241 | 255 |
Earnings per common share — diluted (dollars per share) | $ 1.48 | $ 0.50 | $ 2.42 | $ 1.73 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Underwater Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares excluded from weighted average shares outstanding (shares) | 2 | 1 | 2 | 1 |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Segment Reporting Information | ||||
Net Sales | $ 3,928 | $ 3,921 | $ 11,599 | $ 11,306 |
Rationalizations | 5 | 46 | 40 | 102 |
Interest expense | 82 | 84 | 236 | 260 |
Other (Income) Expense (Note 4) | (253) | 30 | (171) | 54 |
Asset write-offs and accelerated depreciation | 0 | 10 | 2 | 39 |
Income before Income Taxes | 513 | 162 | 809 | 591 |
Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 5 | 30 | 37 | 86 |
Income before Income Taxes | 362 | 367 | 967 | 1,126 |
Segment Reconciling Items | ||||
Business Segment Reporting Information | ||||
Rationalizations | 5 | 46 | 40 | 102 |
Interest expense | 82 | 84 | 236 | 260 |
Other (Income) Expense (Note 4) | (253) | 30 | (171) | 54 |
Asset write-offs and accelerated depreciation | 0 | 10 | 2 | 39 |
Corporate incentive compensation plans | (1) | 0 | 6 | 27 |
Intercompany profit elimination | 2 | 21 | (2) | 16 |
Retained expenses of divested operations | 2 | 3 | 7 | 9 |
Other | ||||
Business Segment Reporting Information | ||||
Other | 12 | 11 | 40 | 28 |
Americas | ||||
Business Segment Reporting Information | ||||
Net Sales | 2,107 | 2,041 | 6,054 | 6,028 |
Americas | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 0 | 4 | 3 | 6 |
Income before Income Taxes | 194 | 196 | 475 | 630 |
Europe, Middle East and Africa | ||||
Business Segment Reporting Information | ||||
Net Sales | 1,290 | 1,311 | 3,880 | 3,664 |
Asset write-offs and accelerated depreciation | 0 | 10 | 2 | 39 |
Europe, Middle East and Africa | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 5 | 25 | 31 | 78 |
Income before Income Taxes | 111 | 90 | 289 | 271 |
Asia Pacific | ||||
Business Segment Reporting Information | ||||
Net Sales | 531 | 569 | 1,665 | 1,614 |
Asia Pacific | Operating Segments | ||||
Business Segment Reporting Information | ||||
Rationalizations | 0 | 1 | 3 | 2 |
Income before Income Taxes | $ 57 | $ 81 | $ 203 | $ 225 |
Business Segments - Charges and
Business Segments - Charges and Credits Attributable to the SBUs (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Segment Reporting Information [Line Items] | |||||
Rationalizations | $ 5 | $ 46 | $ 40 | $ 102 | |
Total Net (Gains) Losses on Asset Sales | 288 | 1 | 274 | 14 | |
Gain on TireHub transaction, net of transaction costs | $ 286 | 287 | 0 | 273 | 0 |
Asset write-offs and accelerated depreciation | 0 | 10 | 2 | 39 | |
Americas | |||||
Segment Reporting Information [Line Items] | |||||
Total Net (Gains) Losses on Asset Sales | 288 | 1 | 276 | 4 | |
Europe, Middle East and Africa | |||||
Segment Reporting Information [Line Items] | |||||
Total Net (Gains) Losses on Asset Sales | 0 | 0 | (2) | 10 | |
Asset write-offs and accelerated depreciation | 0 | 10 | 2 | 39 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Rationalizations | 5 | 30 | 37 | 86 | |
Operating Segments | Americas | |||||
Segment Reporting Information [Line Items] | |||||
Rationalizations | 0 | 4 | 3 | 6 | |
Operating Segments | Europe, Middle East and Africa | |||||
Segment Reporting Information [Line Items] | |||||
Rationalizations | 5 | 25 | 31 | 78 | |
Operating Segments | Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Rationalizations | 0 | 1 | 3 | 2 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Rationalizations | $ 0 | $ 16 | $ 3 | $ 16 |
Financing Arrangements and De_3
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
Credit arrangements | $ 8,689 |
Credit arrangements, unused amount | $ 2,132 |
Debt, percentage bearing variable interest rate | 40.00% |
Long-term Debt | |
Debt Instrument [Line Items] | |
Credit arrangements | $ 8,008 |
Credit arrangements, unused amount | 1,896 |
Short-term Debt | |
Debt Instrument [Line Items] | |
Credit arrangements | 681 |
Credit arrangements, unused amount | $ 236 |
Variable Rate Credit Arrangements | |
Debt Instrument [Line Items] | |
Interest rate | 4.42% |
Financing Arrangements and De_4
Financing Arrangements and Derivative Financial Instruments - Schedule of Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Notes payable and overdrafts | $ 445 | $ 262 |
Long term debt and capital leases due within one year | ||
Long term debt and capital leases due within one year | 471 | 391 |
Total obligations due within one year | 916 | 653 |
Other Foreign and Domestic Debt | ||
Long term debt and capital leases due within one year | ||
Long term debt and capital leases due within one year | $ 338 | $ 278 |
Weighted average interest rate | 5.28% | 6.02% |
Chinese Credit Facilities | Foreign Line of Credit | Line of Credit | ||
Long term debt and capital leases due within one year | ||
Long term debt and capital leases due within one year | $ 43 | $ 113 |
Weighted average interest rate | 4.98% | 4.87% |
Mexican credit facilities | Foreign Line of Credit | Line of Credit | ||
Long term debt and capital leases due within one year | ||
Long term debt and capital leases due within one year | $ 90 | $ 0 |
Weighted average interest rate | 3.90% | 3.14% |
Notes payable and overdrafts | ||
Notes payable and overdrafts, long term debt and capital leases due within one year | ||
Weighted average interest rate | 6.63% | 5.00% |
Long term debt and capital leases due within one year | ||
Long term debt and capital leases due within one year | ||
Weighted average interest rate | 3.49% | 6.86% |
Financing Arrangements and De_5
Financing Arrangements and Derivative Financial Instruments - Schedule of Long Term Debt and Capital Leases and Financing Arrangements (Details) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 6,075,000,000 | $ 5,468,000,000 | ||
Unamortized deferred financing fees | (37,000,000) | (41,000,000) | ||
Total long term debt excluding capital leases | 6,038,000,000 | 5,427,000,000 | ||
Capital lease obligations | 37,000,000 | 40,000,000 | ||
Long-term debt and capital lease obligations, including current maturities | 6,075,000,000 | 5,467,000,000 | ||
Less portion due within one year | (471,000,000) | (391,000,000) | ||
Long-term debt and capital lease obligations, excluding current maturities | 5,604,000,000 | 5,076,000,000 | ||
Senior Notes | 8.75% due 2020 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 277,000,000 | $ 275,000,000 | ||
Interest rate, stated percentage | 8.75% | 8.75% | 8.75% | 8.75% |
Senior Notes | 5.125% due 2023 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 1,000,000,000 | $ 1,000,000,000 | ||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% |
Senior Notes | 5% due 2026 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 900,000,000 | $ 900,000,000 | ||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | 5.00% |
Senior Notes | 4.875% due 2027 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 700,000,000 | $ 700,000,000 | ||
Interest rate, stated percentage | 4.875% | 4.875% | 4.875% | 4.875% |
Senior Notes | 7% due 2028 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 150,000,000 | $ 150,000,000 | ||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% |
Euro Notes | 3.75% Euro Notes due 2023 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 290,000,000 | $ 300,000,000 | ||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% |
Line of Credit | $2.0 billion first lien revolving credit facility due 2021 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Maximum borrowing capacity | $ 2,000,000,000 | |||
Line of Credit | Revolving Credit Facility | $2.0 billion first lien revolving credit facility due 2021 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 325,000,000 | $ 0 | ||
Interest rate | 3.41% | 3.41% | 0.00% | 0.00% |
Maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | ||
Line of Credit | Revolving Credit Facility | €550 million revolving credit facility due 2020 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 360,000,000 | $ 0 | ||
Interest rate | 3.90% | 3.90% | 0.00% | 0.00% |
Maximum borrowing capacity | € | € 550,000,000 | € 550,000,000 | ||
Line of Credit | Secured Debt | Second lien term loan facility due 2025 | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 400,000,000 | $ 400,000,000 | ||
Interest rate | 4.15% | 4.15% | 3.50% | 3.50% |
Line of Credit | Secured Debt | Pan-European accounts receivable facility | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 221,000,000 | $ 224,000,000 | ||
Interest rate | 0.89% | 0.89% | 0.90% | 0.90% |
Line of Credit | Foreign Line of Credit | Mexican credit facilities | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 340,000,000 | $ 340,000,000 | ||
Less portion due within one year | $ (90,000,000) | $ 0 | ||
Interest rate | 3.90% | 3.90% | 3.14% | 3.14% |
Line of Credit | Foreign Line of Credit | Chinese credit facilities | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 157,000,000 | $ 212,000,000 | ||
Less portion due within one year | $ (43,000,000) | $ (113,000,000) | ||
Interest rate | 4.98% | 4.98% | 4.87% | 4.87% |
Other Foreign and Domestic Debt | ||||
Long-term Debt and Capital Lease Obligations [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 955,000,000 | $ 967,000,000 | ||
Less portion due within one year | $ (338,000,000) | $ (278,000,000) | ||
Interest rate | 5.28% | 5.28% | 6.02% | 6.02% |
Financing Arrangements and De_6
Financing Arrangements and Derivative Financial Instruments - Notes and Credit Facilities Narrative (Details) | 1 Months Ended | 9 Months Ended | |||||
Mar. 31, 2018 | Sep. 30, 2018USD ($) | Oct. 18, 2018EUR (€) | Oct. 17, 2018EUR (€) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Debt Instrument [Line Items] | |||||||
Notes payable | $ 3,317,000,000 | $ 3,325,000,000 | |||||
Long-term debt, before deferred financing fees | 6,075,000,000 | 5,468,000,000 | |||||
Long term debt and capital leases due within one year | 471,000,000 | 391,000,000 | |||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 2,000,000,000 | ||||||
Additional borrowing capacity which may be requested | 250,000,000 | ||||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 800,000,000 | ||||||
Letters of credit outstanding | $ 37,000,000 | 37,000,000 | |||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 2,000,000,000 | 2,000,000,000 | |||||
Annual commitment fee on undrawn amounts | 0.30% | ||||||
Borrowing base amount below stated amount | $ 302,000,000 | ||||||
Long-term debt, before deferred financing fees | 325,000,000 | 0 | |||||
Maximum borrowing base increase based on value of certain cash | 200,000,000 | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | $ 400,000,000 | 400,000,000 | |||||
Leverage ratio threshold | 1.25 | 1.25 | |||||
Debt instrument, optional reduction of basis spreads on variable rates | 0.25% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Debt instrument, basis spread on reference rate | 1.00% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Alternative Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on reference rate | 0.50% | ||||||
European Revolving Credit Facility | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 50,000,000 | ||||||
Letters of credit outstanding | $ 0 | 0 | |||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 550,000,000 | ||||||
Annual commitment fee on undrawn amounts | 0.30% | ||||||
Amount outstanding | 0 | ||||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | EURIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||
European Revolving Credit Facility | Line of Credit | German Tranche | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 125,000,000 | ||||||
Amount outstanding | $ 140,000,000 | 121,000,000 | |||||
European Revolving Credit Facility | Line of Credit | All-borrower Tranche | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 425,000,000 | ||||||
Amount outstanding | 220,000,000 | 190,000,000 | |||||
European Revolving Credit Facility | Line of Credit | Swingline Loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 150,000,000 | ||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | 221,000,000 | 224,000,000 | |||||
Current borrowing capacity | 221,000,000 | 191,000,000 | 224,000,000 | € 187,000,000 | |||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 320,000,000 | € 275,000,000 | |||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | 30,000,000 | ||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | € | € 450,000,000 | ||||||
Accounts Receivable Factoring Facilities | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Off-balance sheet receivables sold | 540,000,000 | 572,000,000 | |||||
Mexican credit facilities | Line of Credit | Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | 340,000,000 | 340,000,000 | |||||
Long term debt and capital leases due within one year | 90,000,000 | 0 | |||||
Chinese Credit Facilities | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Amount outstanding | 157,000,000 | 212,000,000 | |||||
Unused availability | 116,000,000 | ||||||
Restricted cash related to funds obtained under credit facilities | 5,000,000 | 7,000,000 | |||||
Chinese Credit Facilities | Line of Credit | Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, before deferred financing fees | 157,000,000 | 212,000,000 | |||||
Long term debt and capital leases due within one year | $ 43,000,000 | $ 113,000,000 |
Financing Arrangements and De_7
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Foreign currency derivatives, notional amount | $ 2,576 | $ 2,576 | $ 1,409 | ||
Foreign currency derivatives, net transaction gains (losses) | 7 | $ (10) | 52 | $ (55) | |
Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Foreign currency derivatives, notional amount | 273 | 273 | 250 | ||
Accounts receivable | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - asset, not designated as hedging instruments | 22 | 22 | 3 | ||
Fair value - asset, designated as hedging instruments | 6 | 6 | 1 | ||
Other current liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - liability, not designated as hedging instruments | (3) | (3) | (9) | ||
Fair value - liability, designated as hedging instruments | (2) | (2) | (8) | ||
Other assets | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - asset, designated as hedging instruments | 2 | 2 | 0 | ||
Other long term liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures | |||||
Fair value - liability, designated as hedging instruments | $ 0 | $ 0 | $ (2) |
Financing Arrangements and De_8
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | ||||
Amounts deferred to Accumulated Other Comprehensive Loss (AOCL) | $ (1) | $ 7 | $ (9) | $ 28 |
Amount of deferred (gain) loss reclassified from AOCL into CGS | 1 | 1 | 8 | (3) |
Amounts excluded from effectiveness testing | 0 | $ (1) | (1) | $ (2) |
Deferred gains expected to be reclassified | $ 2 | $ 2 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Investments | $ 11 | $ 11 |
Foreign Exchange Contracts | 30 | 4 |
Total Assets at Fair Value | 41 | 15 |
Liabilities: | ||
Foreign Exchange Contracts | 5 | 19 |
Total Liabilities at Fair Value | 5 | 19 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 11 | 11 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 11 | 11 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 30 | 4 |
Total Assets at Fair Value | 30 | 4 |
Liabilities: | ||
Foreign Exchange Contracts | 5 | 19 |
Total Liabilities at Fair Value | 5 | 19 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Long-Term Fixed Rate and Variable Rate Debt Excluding Capital Leases (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | $ 6,038 | $ 5,427 |
Notes payable and overdrafts | 445 | 262 |
Fixed Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | 3,601 | 3,616 |
Fair value — liability | 3,551 | 3,786 |
Notes payable and overdrafts | 245 | 110 |
Variable Rate Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount — liability | 2,437 | 1,811 |
Fair value — liability | 2,421 | 1,811 |
Notes payable and overdrafts | $ 200 | $ 152 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 3,632 | $ 3,857 |
Pension, Savings and Other Po_2
Pension, Savings and Other Postretirement Benefit Plans - Defined Benefit Pension Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost | $ 1 | $ 1 | $ 3 | $ 3 |
Interest cost | 39 | 39 | 118 | 120 |
Expected return on plan assets | (55) | (60) | (164) | (181) |
Amortization of net losses | 28 | 27 | 84 | 83 |
Net periodic pension cost | 13 | 7 | 41 | 25 |
Net curtailments/settlements/termination benefits | 0 | 24 | 3 | 25 |
Total defined benefit pension cost | 13 | 31 | 44 | 50 |
Non-U.S. | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost | 7 | 8 | 21 | 23 |
Interest cost | 17 | 18 | 52 | 53 |
Expected return on plan assets | (17) | (20) | (53) | (59) |
Amortization of net losses | 7 | 8 | 22 | 24 |
Net periodic pension cost | 14 | 14 | 42 | 41 |
Net curtailments/settlements/termination benefits | 10 | 2 | 10 | 2 |
Total defined benefit pension cost | $ 24 | $ 16 | $ 52 | $ 43 |
Pension, Savings and Other Po_3
Pension, Savings and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, cost | $ 27 | $ 28 | $ 84 | $ 86 |
Postretirement benefits expense (credit) | 2 | (2) | 8 | (5) |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlements | 24 | |||
Pension curtailments/settlements | 0 | 24 | 3 | 25 |
Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlements | 9 | |||
Payment for settlement | 74 | |||
Pension curtailments/settlements | 10 | 2 | 10 | 2 |
Contributions to pension plans | 7 | 26 | ||
Minimum | Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | 25 | 25 | ||
Maximum | Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to funded pension plans in current year | $ 50 | $ 50 | ||
Prior Year Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension curtailments/settlements | 13 | 14 | ||
Other Nonoperating Income (Expense) | Prior Year Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension curtailments/settlements | $ 13 | $ 13 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6 | $ 5 | $ 11 | $ 17 |
Unearned compensation cost related to the unvested portion of all stock-based awards | $ 33 | $ 33 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 0.8 | |||
Weighted average fair value per share granted (dollars per share) | $ 29.17 | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments granted (shares) | 0.2 | |||
Weighted average fair value per share granted (dollars per share) | $ 29.04 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2018USD ($)employeeclaim | Sep. 30, 2018EUR (€)claim | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||
Environmental matters liability | $ 47 | $ 46 | ||
Workers' compensation liability | $ 240 | 243 | ||
Period covered by liability | 10 years | |||
Off-balance sheet financial guarantees written and other commitments | $ 79 | 82 | ||
Workers' Compensation | ||||
Loss Contingencies [Line Items] | ||||
Potential workers' compensation liability in excess of recorded amount | 30 | |||
General Product Liability Member | ||||
Loss Contingencies [Line Items] | ||||
Potential product liability or claim, including related legal fees | 330 | 316 | ||
Asbestos Related Product Liability | ||||
Loss Contingencies [Line Items] | ||||
Potential product liability or claim, including related legal fees | $ 176 | 167 | ||
Number of asbestos claims settled and dismissed, to date | claim | 146,300 | 146,300 | ||
Sum of accrued asbestos-related liability and gross payments to date, including legal costs | $ 546 | 529 | ||
Loss contingency, receivable | $ 121 | 113 | ||
Percentage of asbestos claim related losses recoverable through insurance | 70.00% | 70.00% | ||
Aggregate limits of excess insurance policies | 440 | |||
Loss Contingency, Receivable, Current | $ 15 | 15 | ||
Amiens Labor Claims | ||||
Loss Contingencies [Line Items] | ||||
Wrongful termination or other claims against company | $ 139 | € 120 | ||
Amiens Labor Claims | Amiens Restructuring Plan | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, number of plaintiffs | employee | 850 | |||
Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure | $ 45 | 47 | ||
Insurance Claims | ||||
Loss Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure | 33 | $ 46 | ||
Other Current Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Environmental matters liability, current | 10 | 10 | ||
Other Current Liabilities | General Product Liability Member | ||||
Loss Contingencies [Line Items] | ||||
Potential product liability or claim, including related legal fees | 48 | 55 | ||
Compensation and Benefits | ||||
Loss Contingencies [Line Items] | ||||
Workers' compensation liability, current | 44 | $ 45 | ||
Accounts receivable | SRI | ||||
Loss Contingencies [Line Items] | ||||
Indemnification asset | 5 | |||
Other Assets | ||||
Loss Contingencies [Line Items] | ||||
Indemnification asset | $ 31 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Summary of Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)claim | Dec. 31, 2017USD ($)claim | |
Number of claims filed | ||
Pending claims, beginning of period | 54,300 | 64,400 |
New claims filed | 1,000 | 1,900 |
Claims settled/dismissed | (11,600) | (12,000) |
Pending claims, end of period | 43,700 | 54,300 |
Payments | $ | $ 8 | $ 16 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | Oct. 09, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Feb. 02, 2017 |
Class of Stock [Line Items] | |||||||
Cash dividends paid | $ 100,000,000 | $ 75,000,000 | |||||
Cash dividends declared (dollars per share) | $ 0.14 | $ 0.1 | $ 0.42 | $ 0.3 | |||
Payments for repurchase of stock | $ 200,000,000 | $ 205,000,000 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends paid | $ 100,000,000 | ||||||
Stock repurchase program, authorized amount | $ 2,100,000,000 | ||||||
Shares repurchased (shares) | 4,188,492 | 8,039,584 | 52,009,241 | ||||
Average price of shares repurchased (dollars per share) | $ 23.87 | $ 24.88 | $ 29.10 | ||||
Payments for repurchase of stock | $ 100,000,000 | $ 200,000,000 | $ 1,514,000,000 | ||||
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased (shares) | 0 | ||||||
Common Stock | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends declared (dollars per share) | $ 0.16 | ||||||
Cash dividends declared | $ 37,000,000 |
Changes in Shareholders' Equi_3
Changes in Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of period | $ 4,850 | $ 4,725 | ||||
Comprehensive income (loss): | ||||||
Net income | $ 354 | $ 132 | 598 | 455 | ||
Foreign currency translation, net of tax of ($8) in 2018 ($44 in 2017) | (86) | 35 | (235) | 169 | ||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $24 in 2018 ($31 in 2017) | 26 | 18 | 79 | 57 | ||
(Increase)/Decrease in net actuarial losses, net of tax of $2 in 2018 (($15) in 2017) | (20) | (26) | (1) | (23) | ||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $4 in 2018 ($9 in 2017) | 9 | 15 | 13 | 15 | ||
Deferred derivative gains (losses), net of tax of $3 in 2018 (($9) in 2017) | 0 | (5) | 6 | (19) | ||
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017) | 1 | 1 | 6 | (2) | ||
Other Comprehensive Income (Loss) | (70) | 38 | (132) | 197 | ||
Comprehensive Income (Loss) | 284 | 170 | 466 | 652 | ||
Adoption of new accounting standards updates (Note 1) | $ (1) | $ 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (8) | (6) | ||||
Stock-based compensation plans | 14 | 17 | ||||
Repurchase of common stock | (200) | (205) | ||||
Dividends declared | (101) | (75) | ||||
Common stock issued from treasury | 4 | 13 | ||||
Purchase of minority shares | (24) | 0 | ||||
Balance at end of period | 5,000 | 5,121 | 5,000 | 5,121 | ||
Foreign currency translation, tax | 0 | 25 | (8) | 44 | ||
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax | 8 | 10 | 24 | 31 | ||
(Increase)/Decrease in net actuarial losses, tax | (4) | (16) | 2 | (15) | ||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax | 2 | 9 | 4 | 9 | ||
Deferred derivative gains (losses), tax | 1 | (2) | 3 | (9) | ||
Reclassification adjustment for amounts recognized in income, tax | 0 | 0 | 2 | (1) | ||
Goodyear Shareholders’ Equity | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of period | 4,603 | 4,507 | ||||
Comprehensive income (loss): | ||||||
Net income | 583 | 442 | ||||
Foreign currency translation, net of tax of ($8) in 2018 ($44 in 2017) | (210) | 155 | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $24 in 2018 ($31 in 2017) | 79 | 57 | ||||
(Increase)/Decrease in net actuarial losses, net of tax of $2 in 2018 (($15) in 2017) | (1) | (23) | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $4 in 2018 ($9 in 2017) | 13 | 15 | ||||
Deferred derivative gains (losses), net of tax of $3 in 2018 (($9) in 2017) | 6 | (19) | ||||
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017) | 6 | (2) | ||||
Other Comprehensive Income (Loss) | (107) | 183 | ||||
Comprehensive Income (Loss) | 476 | 625 | ||||
Adoption of new accounting standards updates (Note 1) | (1) | 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 0 | 0 | ||||
Stock-based compensation plans | 14 | 17 | ||||
Repurchase of common stock | (200) | (205) | ||||
Dividends declared | (101) | (75) | ||||
Common stock issued from treasury | 4 | 13 | ||||
Purchase of minority shares | 5 | 0 | ||||
Balance at end of period | 4,800 | 4,882 | 4,800 | 4,882 | ||
Minority Shareholders’ Equity – Nonredeemable | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Balance at beginning of period | 247 | 218 | ||||
Comprehensive income (loss): | ||||||
Net income | 15 | 13 | ||||
Foreign currency translation, net of tax of ($8) in 2018 ($44 in 2017) | (25) | 14 | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $24 in 2018 ($31 in 2017) | 0 | 0 | ||||
(Increase)/Decrease in net actuarial losses, net of tax of $2 in 2018 (($15) in 2017) | 0 | 0 | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $4 in 2018 ($9 in 2017) | 0 | 0 | ||||
Deferred derivative gains (losses), net of tax of $3 in 2018 (($9) in 2017) | 0 | 0 | ||||
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017) | 0 | 0 | ||||
Other Comprehensive Income (Loss) | (25) | 14 | ||||
Comprehensive Income (Loss) | (10) | 27 | ||||
Adoption of new accounting standards updates (Note 1) | $ 0 | $ 0 | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (8) | (6) | ||||
Stock-based compensation plans | 0 | 0 | ||||
Repurchase of common stock | 0 | 0 | ||||
Dividends declared | 0 | 0 | ||||
Common stock issued from treasury | 0 | 0 | ||||
Purchase of minority shares | (29) | 0 | ||||
Balance at end of period | $ 200 | $ 239 | $ 200 | $ 239 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | $ 4,850 | $ 4,725 |
Balance at end of period | 5,000 | 5,121 |
Foreign Currency Translation Adjustment | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (915) | (1,155) |
Other comprehensive income (loss) before reclassifications, net of tax | (210) | 155 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Balance at end of period | (1,125) | (1,000) |
Unrecognized Net Actuarial Losses and Prior Service Costs | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (3,052) | (3,053) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) | (23) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 92 | 72 |
Balance at end of period | (2,961) | (3,004) |
Deferred Derivative Gains (Losses) | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (9) | 10 |
Other comprehensive income (loss) before reclassifications, net of tax | 6 | (19) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 6 | (2) |
Balance at end of period | 3 | (11) |
Total | ||
Changes in Accumulated Other Comprehensive Loss [Roll Forward] | ||
Balance at beginning of period | (3,976) | (4,198) |
Other comprehensive income (loss) before reclassifications, net of tax | (205) | 113 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 98 | 70 |
Balance at end of period | $ (4,083) | $ (4,015) |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Loss - Reclassifications out of AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (income) expense reclassified | $ (253) | $ 30 | $ (171) | $ 54 |
Cost of Goods Sold | 3,028 | 3,054 | 8,953 | 8,599 |
Tax expense | 159 | 30 | 211 | 136 |
Goodyear Net Income | (351) | (129) | (583) | (442) |
Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Goodyear Net Income | 36 | 34 | 98 | 70 |
Unrecognized Net Actuarial Losses and Prior Service Costs Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (income) expense reclassified | 34 | 28 | 103 | 88 |
Income (loss), before tax | 45 | 52 | 120 | 112 |
Tax expense | (10) | (19) | (28) | (40) |
Goodyear Net Income | 35 | 33 | 92 | 72 |
Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Other (income) expense reclassified | 11 | 24 | 17 | 24 |
Deferred Derivative (Gains) Losses Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss | ||||
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Cost of Goods Sold | 1 | 1 | 8 | (3) |
Tax expense | 0 | 0 | (2) | 1 |
Goodyear Net Income | $ 1 | $ 1 | $ 6 | $ (2) |
Consolidating Financial Infor_3
Consolidating Financial Information - Narrative (Details) - Senior Notes - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
8.75% due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 282,000,000 | |
Interest rate, stated percentage | 8.75% | 8.75% |
5.125% due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000,000 | |
Interest rate, stated percentage | 5.125% | 5.125% |
5% due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 900,000,000 | |
Interest rate, stated percentage | 5.00% | 5.00% |
4.875% due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 700,000,000 | |
Interest rate, stated percentage | 4.875% | 4.875% |
Consolidating Financial Infor_4
Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | |||||
Cash and Cash Equivalents | $ 896 | $ 1,043 | $ 822 | ||
Accounts Receivable, net | 2,670 | $ 2,028 | 2,025 | ||
Accounts Receivable From Affiliates | 0 | 0 | |||
Inventories | 2,938 | 2,787 | |||
Prepaid Expenses and Other Current Assets | 249 | 231 | 224 | ||
Total Current Assets | 6,753 | 6,079 | |||
Goodwill | 572 | 595 | |||
Intangible Assets | 137 | 139 | |||
Deferred Income Taxes | 1,908 | 2,009 | 2,008 | ||
Other Assets | 1,089 | 792 | |||
Investments in Subsidiaries | 0 | 0 | |||
Property, Plant and Equipment, net | 7,132 | 7,451 | |||
Total Assets | 17,591 | 17,064 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 2,819 | 2,814 | 2,807 | ||
Accounts Payable to Affiliates | 0 | 0 | |||
Compensation and Benefits | 517 | 539 | |||
Other Current Liabilities | 795 | $ 1,033 | 1,026 | ||
Notes Payable and Overdrafts | 445 | 262 | |||
Long Term Debt and Capital Leases due Within One Year (Note 8) | 471 | 391 | |||
Total Current Liabilities | 5,047 | 5,025 | |||
Long Term Debt and Capital Leases | 5,604 | 5,076 | |||
Compensation and Benefits | 1,350 | 1,515 | |||
Deferred Income Taxes | 95 | 100 | |||
Other Long Term Liabilities | 495 | 498 | |||
Total Liabilities | 12,591 | 12,214 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 233 | 240 | |||
Other Equity | 4,567 | 4,363 | |||
Goodyear Shareholders’ Equity | 4,800 | 4,603 | |||
Minority Shareholders’ Equity — Nonredeemable | 200 | 247 | |||
Total Shareholders’ Equity | 5,000 | 4,850 | $ 5,121 | $ 4,725 | |
Total Liabilities and Shareholders’ Equity | 17,591 | 17,064 | |||
Reportable Legal Entities | Parent Company | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 127 | 176 | |||
Accounts Receivable, net | 732 | 649 | |||
Accounts Receivable From Affiliates | 235 | 0 | |||
Inventories | 1,506 | 1,444 | |||
Prepaid Expenses and Other Current Assets | 78 | 59 | |||
Total Current Assets | 2,678 | 2,328 | |||
Goodwill | 24 | 24 | |||
Intangible Assets | 118 | 119 | |||
Deferred Income Taxes | 1,487 | 1,549 | |||
Other Assets | 554 | 221 | |||
Investments in Subsidiaries | 3,943 | 4,424 | |||
Property, Plant and Equipment, net | 2,455 | 2,491 | |||
Total Assets | 11,259 | 11,156 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 921 | 927 | |||
Accounts Payable to Affiliates | 0 | 325 | |||
Compensation and Benefits | 278 | 322 | |||
Other Current Liabilities | 359 | 323 | |||
Notes Payable and Overdrafts | 25 | 0 | |||
Long Term Debt and Capital Leases due Within One Year (Note 8) | 58 | 60 | |||
Total Current Liabilities | 1,641 | 1,957 | |||
Long Term Debt and Capital Leases | 3,873 | 3,544 | |||
Compensation and Benefits | 575 | 682 | |||
Deferred Income Taxes | 0 | 0 | |||
Other Long Term Liabilities | 370 | 370 | |||
Total Liabilities | 6,459 | 6,553 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 233 | 240 | |||
Other Equity | 4,567 | 4,363 | |||
Goodyear Shareholders’ Equity | 4,800 | 4,603 | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | 4,800 | 4,603 | |||
Total Liabilities and Shareholders’ Equity | 11,259 | 11,156 | |||
Reportable Legal Entities | Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 26 | 32 | |||
Accounts Receivable, net | 166 | 116 | |||
Accounts Receivable From Affiliates | 192 | 254 | |||
Inventories | 71 | 43 | |||
Prepaid Expenses and Other Current Assets | 2 | 3 | |||
Total Current Assets | 457 | 448 | |||
Goodwill | 1 | 1 | |||
Intangible Assets | 0 | 0 | |||
Deferred Income Taxes | 30 | 35 | |||
Other Assets | 51 | 51 | |||
Investments in Subsidiaries | 516 | 503 | |||
Property, Plant and Equipment, net | 434 | 420 | |||
Total Assets | 1,489 | 1,458 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 121 | 115 | |||
Accounts Payable to Affiliates | 0 | 0 | |||
Compensation and Benefits | 16 | 15 | |||
Other Current Liabilities | (7) | 2 | |||
Notes Payable and Overdrafts | 0 | 0 | |||
Long Term Debt and Capital Leases due Within One Year (Note 8) | 0 | 0 | |||
Total Current Liabilities | 130 | 132 | |||
Long Term Debt and Capital Leases | 167 | 152 | |||
Compensation and Benefits | 97 | 109 | |||
Deferred Income Taxes | 0 | 1 | |||
Other Long Term Liabilities | 9 | 8 | |||
Total Liabilities | 403 | 402 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | 1,086 | 1,056 | |||
Goodyear Shareholders’ Equity | 1,086 | 1,056 | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | 1,086 | 1,056 | |||
Total Liabilities and Shareholders’ Equity | 1,489 | 1,458 | |||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 743 | 835 | |||
Accounts Receivable, net | 1,772 | 1,260 | |||
Accounts Receivable From Affiliates | 0 | 71 | |||
Inventories | 1,393 | 1,329 | |||
Prepaid Expenses and Other Current Assets | 165 | 157 | |||
Total Current Assets | 4,073 | 3,652 | |||
Goodwill | 423 | 444 | |||
Intangible Assets | 19 | 20 | |||
Deferred Income Taxes | 388 | 424 | |||
Other Assets | 484 | 518 | |||
Investments in Subsidiaries | 0 | 0 | |||
Property, Plant and Equipment, net | 4,268 | 4,569 | |||
Total Assets | 9,655 | 9,627 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 1,777 | 1,765 | |||
Accounts Payable to Affiliates | 427 | 0 | |||
Compensation and Benefits | 223 | 202 | |||
Other Current Liabilities | 443 | 701 | |||
Notes Payable and Overdrafts | 420 | 262 | |||
Long Term Debt and Capital Leases due Within One Year (Note 8) | 413 | 331 | |||
Total Current Liabilities | 3,703 | 3,261 | |||
Long Term Debt and Capital Leases | 1,564 | 1,380 | |||
Compensation and Benefits | 678 | 724 | |||
Deferred Income Taxes | 95 | 99 | |||
Other Long Term Liabilities | 116 | 120 | |||
Total Liabilities | 6,156 | 5,584 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | 3,299 | 3,796 | |||
Goodyear Shareholders’ Equity | 3,299 | 3,796 | |||
Minority Shareholders’ Equity — Nonredeemable | 200 | 247 | |||
Total Shareholders’ Equity | 3,499 | 4,043 | |||
Total Liabilities and Shareholders’ Equity | 9,655 | 9,627 | |||
Consolidating Entries and Eliminations | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 0 | 0 | |||
Accounts Receivable, net | 0 | 0 | |||
Accounts Receivable From Affiliates | (427) | (325) | |||
Inventories | (32) | (29) | |||
Prepaid Expenses and Other Current Assets | 4 | 5 | |||
Total Current Assets | (455) | (349) | |||
Goodwill | 124 | 126 | |||
Intangible Assets | 0 | 0 | |||
Deferred Income Taxes | 3 | 0 | |||
Other Assets | 0 | 2 | |||
Investments in Subsidiaries | (4,459) | (4,927) | |||
Property, Plant and Equipment, net | (25) | (29) | |||
Total Assets | (4,812) | (5,177) | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 0 | 0 | |||
Accounts Payable to Affiliates | (427) | (325) | |||
Compensation and Benefits | 0 | 0 | |||
Other Current Liabilities | 0 | 0 | |||
Notes Payable and Overdrafts | 0 | 0 | |||
Long Term Debt and Capital Leases due Within One Year (Note 8) | 0 | 0 | |||
Total Current Liabilities | (427) | (325) | |||
Long Term Debt and Capital Leases | 0 | 0 | |||
Compensation and Benefits | 0 | 0 | |||
Deferred Income Taxes | 0 | 0 | |||
Other Long Term Liabilities | 0 | 0 | |||
Total Liabilities | (427) | (325) | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | (4,385) | (4,852) | |||
Goodyear Shareholders’ Equity | (4,385) | (4,852) | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | (4,385) | (4,852) | |||
Total Liabilities and Shareholders’ Equity | $ (4,812) | $ (5,177) |
Consolidating Financial Infor_5
Consolidating Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net Sales | $ 3,928 | $ 3,921 | $ 11,599 | $ 11,306 |
Cost of Goods Sold | 3,028 | 3,054 | 8,953 | 8,599 |
Consolidating Statements of Operations | ||||
Selling, Administrative and General Expense | 553 | 545 | 1,732 | 1,700 |
Rationalizations | 5 | 46 | 40 | 102 |
Interest Expense | 82 | 84 | 236 | 260 |
Other (Income) Expense | (253) | 30 | (171) | 54 |
Income before Income Taxes | 513 | 162 | 809 | 591 |
United States and Foreign Taxes | 159 | 30 | 211 | 136 |
Equity in Earnings of Subsidiaries | 0 | 0 | 0 | 0 |
Net Income (Loss) | 354 | 132 | 598 | 455 |
Less: Minority Shareholders’ Net Income | 3 | 3 | 15 | 13 |
Goodyear Net Income | 351 | 129 | 583 | 442 |
Comprehensive Income (Loss) | 284 | 170 | 466 | 652 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (6) | 4 | (10) | 27 |
Goodyear Comprehensive Income | 290 | 166 | 476 | 625 |
Reportable Legal Entities | Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Sales | 1,922 | 1,790 | 5,440 | 5,420 |
Cost of Goods Sold | 1,547 | 1,393 | 4,376 | 4,230 |
Consolidating Statements of Operations | ||||
Selling, Administrative and General Expense | 239 | 225 | 756 | 731 |
Rationalizations | 1 | 20 | 6 | 22 |
Interest Expense | 55 | 62 | 165 | 196 |
Other (Income) Expense | (295) | (37) | (271) | (50) |
Income before Income Taxes | 375 | 127 | 408 | 291 |
United States and Foreign Taxes | 111 | 9 | 71 | 69 |
Equity in Earnings of Subsidiaries | 87 | 11 | 246 | 220 |
Net Income (Loss) | 351 | 129 | 583 | 442 |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 |
Goodyear Net Income | 351 | 129 | 583 | 442 |
Comprehensive Income (Loss) | 290 | 166 | 476 | 625 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 |
Goodyear Comprehensive Income | 290 | 166 | 476 | 625 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Sales | 342 | 294 | 980 | 883 |
Cost of Goods Sold | 319 | 261 | 927 | 818 |
Consolidating Statements of Operations | ||||
Selling, Administrative and General Expense | 8 | 9 | 26 | 26 |
Rationalizations | 0 | 0 | 0 | 0 |
Interest Expense | 6 | 2 | 16 | 6 |
Other (Income) Expense | 3 | (5) | 13 | 1 |
Income before Income Taxes | 6 | 27 | (2) | 32 |
United States and Foreign Taxes | 1 | 6 | (1) | 6 |
Equity in Earnings of Subsidiaries | 10 | (3) | 44 | 28 |
Net Income (Loss) | 15 | 18 | 43 | 54 |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 |
Goodyear Net Income | 15 | 18 | 43 | 54 |
Comprehensive Income (Loss) | (5) | 16 | 25 | 57 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 |
Goodyear Comprehensive Income | (5) | 16 | 25 | 57 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Sales | 2,373 | 2,448 | 7,236 | 7,066 |
Cost of Goods Sold | 1,879 | 2,021 | 5,756 | 5,655 |
Consolidating Statements of Operations | ||||
Selling, Administrative and General Expense | 306 | 311 | 950 | 943 |
Rationalizations | 4 | 26 | 34 | 80 |
Interest Expense | 28 | 34 | 73 | 96 |
Other (Income) Expense | 11 | 9 | 19 | (6) |
Income before Income Taxes | 145 | 47 | 404 | 298 |
United States and Foreign Taxes | 48 | 12 | 140 | 61 |
Equity in Earnings of Subsidiaries | 0 | 0 | 0 | 0 |
Net Income (Loss) | 97 | 35 | 264 | 237 |
Less: Minority Shareholders’ Net Income | 3 | 3 | 15 | 13 |
Goodyear Net Income | 94 | 32 | 249 | 224 |
Comprehensive Income (Loss) | (3) | 86 | 29 | 426 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | (6) | 4 | (10) | 27 |
Goodyear Comprehensive Income | 3 | 82 | 39 | 399 |
Consolidating Entries and Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Sales | (709) | (611) | (2,057) | (2,063) |
Cost of Goods Sold | (717) | (621) | (2,106) | (2,104) |
Consolidating Statements of Operations | ||||
Selling, Administrative and General Expense | 0 | 0 | 0 | 0 |
Rationalizations | 0 | 0 | 0 | 0 |
Interest Expense | (7) | (14) | (18) | (38) |
Other (Income) Expense | 28 | 63 | 68 | 109 |
Income before Income Taxes | (13) | (39) | (1) | (30) |
United States and Foreign Taxes | (1) | 3 | 1 | 0 |
Equity in Earnings of Subsidiaries | (97) | (8) | (290) | (248) |
Net Income (Loss) | (109) | (50) | (292) | (278) |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | 0 |
Goodyear Net Income | (109) | (50) | (292) | (278) |
Comprehensive Income (Loss) | 2 | (98) | (64) | (456) |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 | 0 |
Goodyear Comprehensive Income | $ 2 | $ (98) | $ (64) | $ (456) |
Consolidating Financial Infor_6
Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | $ (24) | $ (154) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (615) | (683) |
Asset Dispositions | 2 | 9 |
Short Term Securities Acquired | (61) | (51) |
Short Term Securities Redeemed | 61 | 51 |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Notes Receivable | (50) | 0 |
Other Transactions | (1) | (1) |
Total Cash Flows from Investing Activities | (664) | (675) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 1,458 | 544 |
Short Term Debt and Overdrafts Paid | (1,267) | (523) |
Long Term Debt Incurred | 4,704 | 4,972 |
Long Term Debt Paid | (3,992) | (4,193) |
Common Stock Issued | 4 | 12 |
Common Stock Repurchased | (200) | (205) |
Common Stock Dividends Paid | (100) | (75) |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | (27) | (6) |
Debt Related Costs and Other Transactions | (3) | (69) |
Total Cash Flows from Financing Activities | 577 | 457 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (37) | 51 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (148) | (321) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 1,110 | 1,189 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 962 | 868 |
Reportable Legal Entities | Parent Company | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | 815 | 179 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (248) | (247) |
Asset Dispositions | 0 | 1 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | (597) | (75) |
Capital Redemptions and Loans Paid | 193 | 21 |
Notes Receivable | (50) | |
Other Transactions | 3 | 0 |
Total Cash Flows from Investing Activities | (699) | (300) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 800 | 175 |
Short Term Debt and Overdrafts Paid | (775) | (145) |
Long Term Debt Incurred | 2,305 | 2,597 |
Long Term Debt Paid | (1,982) | (2,310) |
Common Stock Issued | 4 | 12 |
Common Stock Repurchased | (200) | (205) |
Common Stock Dividends Paid | (100) | (75) |
Capital Contributions and Loans Incurred | 213 | 41 |
Capital Redemptions and Loans Paid | (430) | (61) |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 16 | (38) |
Total Cash Flows from Financing Activities | (149) | (9) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (33) | (130) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 201 | 210 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 168 | 80 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (5) | 0 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (55) | (115) |
Asset Dispositions | 2 | 0 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | 0 | 0 |
Capital Redemptions and Loans Paid | 0 | 0 |
Notes Receivable | 0 | |
Other Transactions | 0 | 0 |
Total Cash Flows from Investing Activities | (53) | (115) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 0 | 0 |
Short Term Debt and Overdrafts Paid | 0 | 0 |
Long Term Debt Incurred | 15 | 52 |
Long Term Debt Paid | 0 | 0 |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | 52 | 62 |
Capital Redemptions and Loans Paid | (14) | (21) |
Intercompany Dividends Paid | 0 | 0 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 |
Total Cash Flows from Financing Activities | 53 | 93 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (1) | 3 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (6) | (19) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 32 | 55 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 26 | 36 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (295) | (303) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (311) | (323) |
Asset Dispositions | 0 | 8 |
Short Term Securities Acquired | (61) | (51) |
Short Term Securities Redeemed | 61 | 51 |
Capital Contributions and Loans Incurred | (213) | (41) |
Capital Redemptions and Loans Paid | 430 | 61 |
Notes Receivable | 0 | |
Other Transactions | (4) | (1) |
Total Cash Flows from Investing Activities | (98) | (296) |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 658 | 369 |
Short Term Debt and Overdrafts Paid | (492) | (378) |
Long Term Debt Incurred | 2,384 | 2,323 |
Long Term Debt Paid | (2,010) | (1,883) |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | 545 | 13 |
Capital Redemptions and Loans Paid | (179) | 0 |
Intercompany Dividends Paid | (540) | (28) |
Transactions with Minority Interests in Subsidiaries | (27) | (6) |
Debt Related Costs and Other Transactions | (19) | (31) |
Total Cash Flows from Financing Activities | 320 | 379 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (36) | 48 |
Net Change in Cash, Cash Equivalents and Restricted Cash | (109) | (172) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 877 | 924 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | 768 | 752 |
Consolidating Entries and Eliminations | ||
Cash Flows from Operating Activities: | ||
Total Cash Flows from Operating Activities | (539) | (30) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (1) | 2 |
Asset Dispositions | 0 | 0 |
Short Term Securities Acquired | 0 | 0 |
Short Term Securities Redeemed | 0 | 0 |
Capital Contributions and Loans Incurred | 810 | 116 |
Capital Redemptions and Loans Paid | (623) | (82) |
Notes Receivable | 0 | |
Other Transactions | 0 | 0 |
Total Cash Flows from Investing Activities | 186 | 36 |
Cash Flows from Financing Activities: | ||
Short Term Debt and Overdrafts Incurred | 0 | 0 |
Short Term Debt and Overdrafts Paid | 0 | 0 |
Long Term Debt Incurred | 0 | 0 |
Long Term Debt Paid | 0 | 0 |
Common Stock Issued | 0 | 0 |
Common Stock Repurchased | 0 | 0 |
Common Stock Dividends Paid | 0 | 0 |
Capital Contributions and Loans Incurred | (810) | (116) |
Capital Redemptions and Loans Paid | 623 | 82 |
Intercompany Dividends Paid | 540 | 28 |
Transactions with Minority Interests in Subsidiaries | 0 | 0 |
Debt Related Costs and Other Transactions | 0 | 0 |
Total Cash Flows from Financing Activities | 353 | (6) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Net Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash at End of the Period | $ 0 | $ 0 |