Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-1927 | ||
Entity Registrant Name | GOODYEAR TIRE & RUBBER CO | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0253240 | ||
Entity Address, Address Line One | 200 Innovation Way, | ||
Entity Address, City or Town | Akron, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44316-0001 | ||
City Area Code | 330 | ||
Local Phone Number | 796-2121 | ||
Title of 12(b) Security | Common Stock, Without Par Value | ||
Trading Symbol | GT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock Outstanding | 232,664,275 | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the Annual Meeting of Shareholders to be held on April 6, 2020 are incorporated by reference in Part III. | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Central Index Key | 0000042582 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net Sales | $ 14,745 | $ 15,475 | $ 15,377 |
Cost of Goods Sold | 11,602 | 11,961 | 11,680 |
Selling, Administrative and General Expense | 2,323 | 2,312 | 2,279 |
Rationalizations | 205 | 44 | 135 |
Interest Expense | 340 | 321 | 335 |
Other (Income) Expense | 98 | (174) | 70 |
Income before Income Taxes | 177 | 1,011 | 878 |
United States and Foreign Tax Expense (Note 6) | 474 | 303 | 513 |
Net Income (Loss) | (297) | 708 | 365 |
Less: Minority Shareholders’ Net Income | 14 | 15 | 19 |
Goodyear Net Income (Loss) | $ (311) | $ 693 | $ 346 |
Goodyear Net Income (Loss) — Per Share of Common Stock | |||
Basic (in dollars per share) | $ (1.33) | $ 2.92 | $ 1.39 |
Weighted Average Shares Outstanding (in shares) | 233 | 237 | 249 |
Diluted (in dollars per share) | $ (1.33) | $ 2.89 | $ 1.37 |
Weighted Average Shares Outstanding (in shares) | 233 | 239 | 253 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (297) | $ 708 | $ 365 |
Other Comprehensive Income (Loss): | |||
Foreign currency translation, net of tax of $4 in 2019 (($10) in 2018, $39 in 2017) | 5 | (264) | 257 |
Defined benefit plans: | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $33 in 2019 ($34 in 2018, $40 in 2017) | 104 | 105 | 77 |
(Increase)/decrease in net actuarial losses, net of tax of ($42) in 2019 ($1 in 2018, ($37) in 2017) | (169) | 16 | (100) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2019 ($5 in 2018, $14 in 2017) | 4 | 20 | 27 |
Prior service credit (cost) from plan amendments, net of tax of $1 in 2019 (($3) in 2018, ($2) in 2017) | 1 | (12) | (4) |
Deferred derivative gains (losses), net of tax of $0 in 2019 ($3 in 2018, ($8) in 2017) | 10 | 9 | (20) |
Reclassification adjustment for amounts recognized in income, net of tax of $0 in 2019 ($0 in 2018, $1 in 2017) | (14) | 7 | 1 |
Other Comprehensive Income (Loss) | (59) | (119) | 238 |
Comprehensive Income (Loss) | (356) | 589 | 603 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 15 | (4) | 35 |
Goodyear Comprehensive Income (Loss) | $ (371) | $ 593 | $ 568 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on foreign currency translation | $ 4 | $ (10) | $ 39 |
Defined benefit plans: | |||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 33 | 34 | 40 |
Tax on increase in net actuarial losses | (42) | 1 | (37) |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 2 | 5 | 14 |
Tax on prior service cost from plan amendments | 1 | (3) | (2) |
Tax effect of deferred derivative gains | 0 | 3 | (8) |
Tax effect of reclassification adjustment for amounts recognized in income | $ 0 | $ 0 | $ 1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and Cash Equivalents | $ 908 | $ 801 |
Accounts Receivable, net | 1,941 | 2,030 |
Inventories | 2,851 | 2,856 |
Prepaid Expenses and Other Current Assets | 234 | 238 |
Total Current Assets | 5,934 | 5,925 |
Goodwill | 565 | 569 |
Intangible Assets | 137 | 136 |
Deferred Income Taxes | 1,527 | 1,847 |
Other Assets | 959 | 1,136 |
Operating Lease Right-of-Use Assets | 855 | 0 |
Property, Plant and Equipment | 7,208 | |
Property, Plant and Equipment | 7,259 | |
Total Assets | 17,185 | 16,872 |
Current Liabilities: | ||
Accounts Payable — Trade | 2,908 | 2,920 |
Compensation and Benefits | 536 | 471 |
Other Current Liabilities | 734 | 737 |
Notes Payable and Overdrafts | 348 | 410 |
Operating Lease Liabilities due Within One Year | 199 | 0 |
Long Term Debt and Finance Leases Due Within One Year | 562 | 243 |
Total Current Liabilities | 5,287 | 4,781 |
Operating Lease Liabilities | 668 | 0 |
Long Term Debt and Finance Leases | 4,753 | 5,110 |
Compensation and Benefits | 1,334 | 1,345 |
Deferred Income Taxes | 90 | 95 |
Other Long Term Liabilities | 508 | 471 |
Total Liabilities | 12,640 | 11,802 |
Commitments and Contingent Liabilities | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 233 million (232 million in 2018) | 233 | 232 |
Capital Surplus | 2,141 | 2,111 |
Retained Earnings | 6,113 | 6,597 |
Accumulated Other Comprehensive Loss | (4,136) | (4,076) |
Goodyear Shareholders’ Equity | 4,351 | 4,864 |
Minority Shareholders’ Equity — Nonredeemable | 194 | 206 |
Total Shareholders’ Equity | 4,545 | 5,070 |
Total Liabilities and Shareholders’ Equity | $ 17,185 | $ 16,872 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value (in dollars per share) | $ 0 | $ 0 |
Common Stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, shares outstanding (in shares) | 233,000,000 | 232,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Goodyear Shareholders' Equity | Minority Shareholders' Equity - Non-Redeemable |
Common stock beginning balance (in shares) at Dec. 31, 2016 | 251,596,534 | ||||||
Beginning balance at Dec. 31, 2016 | $ 4,725 | $ 252 | $ 2,645 | $ 5,808 | $ (4,198) | $ 4,507 | $ 218 |
Comprehensive income (loss): | |||||||
Net income | 365 | 346 | 346 | 19 | |||
Foreign currency translation (net of tax) | 257 | 240 | 240 | 17 | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 77 | 77 | 77 | ||||
Decrease (increase) in net actuarial losses (net of tax) | (100) | (99) | (99) | (1) | |||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 27 | 27 | 27 | ||||
Prior service cost from plan amendments | (4) | (4) | (4) | ||||
Deferred derivative gains (losses) | (20) | (20) | (20) | ||||
Reclassification adjustment for amounts recognized in income | 1 | 1 | 1 | ||||
Other Comprehensive Income (Loss) | 238 | 222 | 16 | ||||
Comprehensive Income (Loss) | 603 | 568 | 35 | ||||
Stock-based compensation plans | 24 | 24 | 24 | ||||
Repurchase of common stock (in shares) | (12,755,547) | ||||||
Repurchase of common stock | (400) | $ (13) | (387) | (400) | |||
Dividends declared | (116) | (110) | (110) | (6) | |||
Common stock issued from treasury (in shares) | 1,313,615 | ||||||
Common stock issued from treasury | 14 | $ 1 | 13 | 14 | |||
Common stock ending balance (in shares) at Dec. 31, 2017 | 240,154,602 | ||||||
Ending balance at Dec. 31, 2017 | 4,850 | $ 240 | 2,295 | 6,044 | (3,976) | 4,603 | 247 |
Comprehensive income (loss): | |||||||
Net income | 708 | 693 | 693 | 15 | |||
Foreign currency translation (net of tax) | (264) | (245) | (245) | (19) | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 105 | 105 | 105 | ||||
Decrease (increase) in net actuarial losses (net of tax) | 16 | 16 | 16 | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 20 | 20 | 20 | ||||
Prior service cost from plan amendments | (12) | (12) | (12) | ||||
Deferred derivative gains (losses) | 9 | 9 | 9 | ||||
Reclassification adjustment for amounts recognized in income | 7 | 7 | 7 | ||||
Other Comprehensive Income (Loss) | (119) | (100) | (19) | ||||
Comprehensive Income (Loss) | 589 | 593 | (4) | ||||
Stock-based compensation plans | 19 | 19 | 19 | ||||
Repurchase of common stock (in shares) | (8,936,302) | ||||||
Repurchase of common stock | (220) | $ (9) | (211) | (220) | |||
Dividends declared | (147) | (139) | (139) | (8) | |||
Common stock issued from treasury (in shares) | 952,743 | ||||||
Common stock issued from treasury | 4 | $ 1 | 3 | 4 | |||
Purchase of minority shares | $ (24) | 5 | 5 | (29) | |||
Common stock ending balance (in shares) at Dec. 31, 2018 | 232,000,000 | 232,171,043 | |||||
Ending balance at Dec. 31, 2018 | $ 5,070 | $ 232 | 2,111 | 6,597 | (4,076) | 4,864 | 206 |
Comprehensive income (loss): | |||||||
Net income | (297) | (311) | (311) | 14 | |||
Foreign currency translation (net of tax) | 5 | 4 | 4 | 1 | |||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 104 | 104 | 104 | ||||
Decrease (increase) in net actuarial losses (net of tax) | (169) | (169) | (169) | ||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 4 | 4 | 4 | ||||
Prior service cost from plan amendments | 1 | 1 | 1 | ||||
Deferred derivative gains (losses) | 10 | 10 | 10 | ||||
Reclassification adjustment for amounts recognized in income | (14) | (14) | (14) | ||||
Other Comprehensive Income (Loss) | (59) | (60) | 1 | ||||
Comprehensive Income (Loss) | (356) | (371) | 15 | ||||
Stock-based compensation plans | 29 | 29 | 29 | ||||
Dividends declared | (155) | (150) | (150) | (5) | |||
Common stock issued from treasury (in shares) | 479,275 | ||||||
Common stock issued from treasury | 1 | $ 1 | 1 | ||||
Purchase of minority shares | $ (21) | 1 | 1 | (22) | |||
Common stock ending balance (in shares) at Dec. 31, 2019 | 233,000,000 | 232,650,318 | |||||
Ending balance at Dec. 31, 2019 | $ 4,545 | $ 233 | $ 2,141 | $ 6,113 | $ (4,136) | $ 4,351 | $ 194 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common treasury shares (in shares) | 45,813,109 | 46,292,384 | 38,308,825 | 26,866,893 |
Tax on foreign currency translation | $ 4 | $ (10) | $ 39 | |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 33 | 34 | 40 | |
Tax on increase in net actuarial losses | (42) | 1 | (37) | |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 2 | 5 | 14 | |
Tax on prior service cost from plan amendments | 1 | (3) | (2) | |
Tax effect of deferred derivative gains | 0 | 3 | (8) | |
Tax effect of reclassification adjustment for amounts recognized in income | $ 0 | $ 0 | $ 1 | |
Cash dividends declared per common share (in dollars per share) | $ 0.64 | $ 0.58 | $ 0.44 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ (297) | $ 708 | $ 365 |
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | |||
Depreciation and Amortization | 795 | 778 | 781 |
Amortization and Write-Off of Debt Issuance Costs | 15 | 15 | 21 |
Provision for Deferred Income Taxes | 323 | 131 | 366 |
Net Pension Curtailments and Settlements (Note 17) | 6 | 22 | 19 |
Net Rationalization Charges (Note 3) | 205 | 44 | 135 |
Rationalization Payments | (59) | (174) | (154) |
Net Gains on Asset Sales (Note 5) | (16) | (1) | (14) |
Gain on TireHub transaction, net of transaction costs (Note 5) | 0 | (272) | 0 |
Operating Lease Expense | 292 | ||
Operating Lease, Payments | (267) | ||
Pension Contributions and Direct Payments | (79) | (74) | (90) |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | |||
Accounts Receivable | 71 | (172) | (147) |
Inventories | 6 | (171) | (44) |
Accounts Payable — Trade | 5 | 223 | 85 |
Compensation and Benefits | 184 | (26) | (65) |
Other Current Liabilities | (50) | (181) | (76) |
Other Assets and Liabilities | 73 | 66 | (24) |
Total Cash Flows from Operating Activities | 1,207 | 916 | 1,158 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (770) | (811) | (881) |
Asset Dispositions (Note 5) | 12 | 2 | 12 |
Short Term Securities Acquired | (113) | (68) | (83) |
Short Term Securities Redeemed | 106 | 68 | 83 |
Notes Receivable | (7) | (55) | 0 |
Other Transactions | (28) | (3) | (10) |
Total Cash Flows from Investing Activities | (800) | (867) | (879) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 1,880 | 1,944 | 1,054 |
Short Term Debt and Overdrafts Paid | (1,933) | (1,795) | (1,046) |
Long Term Debt Incurred | 5,942 | 6,455 | 6,463 |
Long Term Debt Paid | (6,008) | (6,469) | (6,342) |
Common Stock Issued (Note 18) | 1 | 4 | 14 |
Common Stock Repurchased (Note 20) | 0 | (220) | (400) |
Common Stock Dividends Paid (Note 20) | (148) | (138) | (110) |
Transactions with Minority Interests in Subsidiaries | (26) | (31) | (7) |
Debt Related Costs and Other Transactions | (15) | 7 | (41) |
Total Cash Flows from Financing Activities | (307) | (243) | (415) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 1 | (43) | 57 |
Net Change in Cash, Cash Equivalents and Restricted Cash | 101 | (237) | (79) |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 873 | 1,110 | 1,189 |
Cash, Cash Equivalents and Restricted Cash at End of the Year | $ 974 | $ 873 | $ 1,110 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies A summary of the significant accounting policies used in the preparation of the accompanying consolidated financial statements follows: Basis of Presentation Recently Adopted Accounting Standards Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. We elected the optional transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. We also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard, and we have elected to not evaluate land easements that existed as of, or expired before, adoption of the new standard. In addition, we did not reassess whether any contracts entered into prior to adoption are leases. The adoption of this standards update had a material impact on our Consolidated Balance Sheets and related disclosures. In addition to recognizing right-of-use assets and lease liabilities for our operating leases, we recorded $23 million as a cumulative effect adjustment to decrease Retained Earnings as a result of using the modified retrospective adoption approach. The adoption of this standards update did not have a material impact on our results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 Effective January 1, 2019, we adopted an accounting standards update, 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 hedging strategies allowed and providing relief around the documentation and assessment requirements. The adoption of this standards update did not materially impact our consolidated financial statements. Effective January 1, 2019, we adopted an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) ("AOCL") to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States. We have elected not to reclassify the income tax effects of the Tax Act from AOCL to Retained Earnings. As such, the adoption of this standards update did not impact our consolidated financial statements. Our policy is to utilize an item-by-item approach to release stranded income tax effects from AOCL. Under this approach, the stranded income tax effects are released from AOCL when the related item ceases to exist. Effective October 31, 2019, in conjunction with our annual impairment testing, we early adopted 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, not to exceed the total goodwill allocated to that reporting unit. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In January 2020, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with clarifying guidance on the application of the measurement alternative for certain equity securities and the scoping assessment for forward contracts and purchased options on certain securities. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In December 2019, the FASB issued an accounting standards update with new guidance that changes the accounting for certain income tax transactions. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis. All other amendments should be applied on a prospective basis. We are currently assessing the impact of this standards update on our consolidated financial statements. In August 2018, the 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 standards update will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates, including those related to: • general and product liabilities and other litigation, • workers’ compensation, • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. Revenue Recognition and Accounts Receivable Valuation 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 cost of goods sold ("CGS"). Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk, considering both expected future losses as well as current incurred losses. The adequacy of the allowances are assessed quarterly. Research and Development Costs Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. Research and development expenditures were $430 million , $424 million and $406 million in 2019 , 2018 and 2017 , respectively. Warranty Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties we offer is on a prorated basis. Warranty reserves are based on past claims experience, sales history and other considerations. Refer to Note to the Consolidated Financial Statements No. 19, Commitments and Contingent Liabilities, in this Form 10-K. Environmental Cleanup Matters We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. We determine our liability on a site by site basis and record a liability at the time when it is probable and can be reasonably estimated. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Our estimated liability is not discounted or reduced for possible recoveries from insurance carriers. Refer to Note to the Consolidated Financial Statements No. 19, Commitments and Contingent Liabilities, in this Form 10-K. Legal Costs We record a liability for estimated legal and defense costs related to pending general and product liability claims, environmental matters and workers’ compensation claims. Refer to Note to the Consolidated Financial Statements No. 19, Commitments and Contingent Liabilities, in this Form 10-K. Advertising Costs Costs incurred for producing and communicating advertising are generally expensed when incurred as a component of selling, administrative and general expense ("SAG"). Costs incurred under our cooperative advertising programs with dealers and franchisees are generally recorded as reductions of sales as related revenues are recognized. Advertising costs, including costs for our cooperative advertising programs with dealers and franchisees, were $353 million , $345 million and $320 million in 2019 , 2018 and 2017 , respectively. Rationalizations We record costs for rationalization actions implemented to reduce excess and high-cost manufacturing capacity and operating and administrative costs. Associate-related costs include severance, supplemental unemployment compensation and benefits, medical benefits, pension curtailments, postretirement benefits, and other termination benefits. For ongoing benefit arrangements, a liability is recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. For one-time benefit arrangements, a liability is incurred and must be accrued at the date the plan is communicated to employees, unless they will be retained beyond a minimum retention period. In this case, the liability is calculated at the date the plan is communicated to employees and is accrued ratably over the future service period. For voluntary benefit arrangements, a liability is not estimable and is not recognized until eligible associates apply for the benefit and we accept the applications. Other costs generally include non-cancelable lease costs, contract terminations and relocation costs. A liability for these costs is recognized in the period in which the liability is incurred. Rationalization charges related to accelerated depreciation and asset impairments are recorded in CGS or SAG. Refer to Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-K. Income Taxes Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between carrying values of assets and liabilities for financial reporting purposes and such carrying values as measured under applicable tax laws. The effect on deferred tax assets or liabilities of a change in the tax law or tax rate is recognized in the period the change is enacted. Valuation allowances are recorded to reduce net deferred tax assets to the amount that is more likely than not to be realized. The calculation of our tax liabilities also involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. To the extent that we incur expense under the global intangible low-taxed income provisions we will treat it as a component of income tax expense in the period incurred. Refer to Note to the Consolidated Financial Statements No. 6, Income Taxes, in this Form 10-K. Cash and Cash Equivalents / Consolidated Statements of Cash Flows Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Substantially all of our cash and short-term investment securities are held with investment grade rated counterparties. At December 31, 2019 , our cash investments with any single counterparty did not exceed $170 million . Cash flows associated with derivative financial instruments designated as hedges of identifiable transactions or events are classified in the same category as the cash flows from the related hedged items. Cash flows associated with derivative financial instruments not designated as hedges are classified as operating activities. Bank overdrafts, if any, are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. Customer prepayments for products and government grants received that predominately relate to operations are reported as operating activities. Government grants received that are predominately related to capital expenditures are reported as investing activities. The Consolidated Statements of Cash Flows are presented net of finance leases of $36 million , $6 million and $5 million originating in the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash flows from investing activities in 2019 exclude $243 million of accrued capital expenditures remaining unpaid at December 31, 2019, and include payment for $266 million of capital expenditures that were accrued and unpaid at December 31, 2018. Cash flows from investing activities in 2018 exclude $266 million of accrued capital expenditures remaining unpaid at December 31, 2018, and include payment for $265 million of capital expenditures that were accrued and unpaid at December 31, 2017. Cash flows from investing activities in 2017 exclude $265 million of accrued capital expenditures remaining unpaid at December 31, 2017, and include payment for $264 million of capital expenditures that were accrued and unpaid at December 31, 2016. Restricted Cash The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: December 31, (In millions) 2019 2018 2017 Cash and Cash Equivalents $ 908 $ 801 $ 1,043 Restricted Cash 66 72 67 Total Cash, Cash Equivalents and Restricted Cash $ 974 $ 873 $ 1,110 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 Net Assets In certain countries where we operate, transfers of funds into or out of such countries by way of dividends, loans or advances are generally or periodically subject to various governmental regulations. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make cash distributions. At December 31, 2019 , approximately $711 million of net assets were subject to such regulations or limitations. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We determine a provision for excess and obsolete inventory based on management’s review of inventories on hand compared to estimated future usage and sales. Refer to Note to the Consolidated Financial Statements No. 10, Inventories, in this Form 10-K. Goodwill and Other Intangible Assets Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then an impairment loss will be recorded for the difference between the carrying value and the fair value, limited to the carrying amount of goodwill. We perform a quantitative assessment at least once every five years. In addition to annual testing, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives, and reviewed for impairment whenever events or circumstances warrant such a review. Refer to Note to the Consolidated Financial Statements No. 11, Goodwill and Intangible Assets, in this Form 10-K. Investments Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable equity securities are recorded in earnings. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recorded in AOCL, net of tax. Our investment in TireHub is accounted for under the equity method. We regularly review our investments to determine whether a decline in fair value below their recorded amount is other than temporary. If the decline in fair value is judged to be other than temporary, the investment is written down to fair value and the amount of the write-down is included in the Consolidated Statements of Operations. Refer to Notes to the Consolidated Financial Statements No. 12, Other Assets and Investments, No. 16, Fair Value Measurements, and No. 21, Reclassifications out of Accumulated Other Comprehensive Loss, in this Form 10-K. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are predominately related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. Depreciation expense for property, plant and equipment was $793 million , $776 million and $779 million in 2019 , 2018 and 2017 , respectively. Refer to Notes to the Consolidated Financial Statements No. 4, Interest Expense, and No. 13, Property, Plant and Equipment, in this Form 10-K. Foreign Currency Translation The functional currency for most subsidiaries outside the United States is the local currency. Financial statements of these subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. The U.S. dollar is used as the functional currency in countries with a history of high inflation and in countries that predominantly sell into the U.S. dollar export market. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in Other (Income) Expense. Translation adjustments are recorded in AOCL. Income taxes are generally not provided for foreign currency translation adjustments. Derivative Financial Instruments and Hedging Activities To qualify for hedge accounting, hedging instruments must be designated as hedges and meet defined correlation and effectiveness criteria. These criteria require that the anticipated cash flows and/or changes in fair value of the hedging instrument substantially offset those of the position being hedged. Derivative contracts are reported at fair value on the Consolidated Balance Sheets as Accounts Receivable, Other Assets, Other Current Liabilities or Other Long Term Liabilities. Deferred gains and losses on contracts designated as cash flow hedges are recorded net of tax in AOCL. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other (Income) Expense in the current period. Gains and losses on contracts with no hedging designation are also recorded in Other (Income) Expense in the current period. We do not include premiums or discounts on forward currency contracts in our assessment of hedge effectiveness. Premiums and discounts on contracts designated as hedges are recorded in AOCL. The amounts are recognized in the Statement of Operations on a straight-line basis over the life of the contract on the same line that the hedged item is recognized in the Statement of Operations. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — Gains and losses (including deferred gains and losses in AOCL) are recognized in Other (Income) Expense when contracts are terminated concurrently with the termination of the hedged position. To the extent that such position remains outstanding, gains and losses are amortized to Interest Expense or to Other (Income) Expense over the remaining life of that position. Gains and losses on contracts that we temporarily continue to hold after the early termination of a hedged position, or that otherwise no longer qualify for hedge accounting, are recognized in Other (Income) Expense. Refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in this Form 10-K. Stock-Based Compensation We measure compensation cost arising from the grant of stock-based awards to employees at fair value and recognize such cost in income over the period during which the service is provided, usually the vesting period. We recognize compensation expense using the straight-line approach. Stock-based awards to employees include grants of performance share units, restricted stock units and stock options. We measure the fair value of grants of performance share units and restricted stock units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. We estimate the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: • Expected term represents the period of time that options granted are expected to be outstanding based on our historical experience of option exercises; • Expected volatility is measured using the weighted average of historical daily changes in the market price of our common stock over the expected term of the award and implied volatility calculated for our exchange traded options with an expiration date greater than one year; • Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and • Forfeitures are based substantially on the history of cancellations of similar awards granted in prior years. Refer to Note to the Consolidated Financial Statements No. 18, Stock Compensation Plans, in this Form 10-K. Earnings Per Share of Common Stock Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share primarily reflects the dilutive impact of outstanding stock options and other stock based awards. All earnings per share amounts in these notes to the consolidated financial statements are diluted, unless otherwise noted. Refer to Note to the Consolidated Financial Statements No. 7, Earnings Per Share, in this Form 10-K. Fair Value Measurements Valuation Hierarchy Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Valuation methodologies used for assets and liabilities measured at fair value are as follows: Investments Where quoted prices are available in an active market, investments are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics or inputs other than quoted prices that are observable for the security, and would be classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities would be classified within Level 3 of the valuation hierarchy. Derivative Financial Instruments Exchange-traded derivative financial instruments that are valued using quoted prices would be classified within Level 1 of the valuation hierarchy. Derivative financial instruments valued using internally-developed models that use as their basis readily observable market parameters are classified within Level 2 of the valuation hierarchy. Derivative financial instruments that are valued based upon models with significant unobservable market parameters, and that are normally traded less actively, would be classified within Level 3 of the valuation hierarchy. Refer to Notes to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, and No. 16, Fair Value Measurements, in this Form 10-K. Reclassifications and Adjustments |
Net Sales
Net Sales | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales The following table shows disaggregated net sales from contracts with customers by major source for the year ended December 31, 2019: Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 6,300 $ 4,300 $ 1,924 $ 12,524 Other tire and related sales 659 363 117 1,139 Retail services and service related sales 535 39 70 644 Chemical sales 403 — — 403 Other 25 6 4 35 Net Sales by reportable segment $ 7,922 $ 4,708 $ 2,115 $ 14,745 The following table shows disaggregated net sales from contracts with customers by major source for the year ended December 31, 2018: Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 6,381 $ 4,670 $ 2,009 $ 13,060 Other tire and related sales 656 379 127 1,162 Retail services and service related sales 564 34 77 675 Chemical sales 554 — — 554 Other 13 7 4 24 Net Sales by reportable segment $ 8,168 $ 5,090 $ 2,217 $ 15,475 Tire unit sales consist of consumer, commercial, farm and off-the-road tire sales, including the sale of new Company-branded tires through Company-owned retail channels. Other tire and related sales consist of aviation, race, motorcycle and all-terrain vehicle tire sales, retread sales and other tire related sales. Sales of tires in this category are not included in reported tire unit information. Retail services and service related sales consist of automotive services performed for customers through our Company-owned retail channels, and includes service related products. Chemical sales relate to the sale of synthetic rubber and other chemicals to third parties, and exclude intercompany sales. Other sales include items such as franchise fees and ancillary tire parts. When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities in the Consolidated Balance Sheets totaled $23 million and $39 million at December 31, 2019 and 2018, respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $31 million and $39 million at December 31, 2019 and 2018, respectively. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met. The following table presents the balances of deferred revenue related to contracts with customers, and changes during the years ended December 31: (In millions) 2019 2018 Balance at January 1 $ 78 $ 121 Revenue deferred during period 155 116 Revenue recognized during period (179 ) (159 ) Impact of foreign currency translation — — Balance at December 31 $ 54 $ 78 |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Rationalization Programs | Costs Associated with Rationalization Programs In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and associate headcount. The following table presents the roll-forward of the liability balance between periods: (In millions) Associate-Related Costs Other Costs Total Balance at December 31, 2016 $ 214 $ 5 $ 219 2017 charges (1) 103 32 135 Incurred, net of foreign currency translation of $25 million and $1 million, respectively (94 ) (34 ) (128 ) Reversed to the Statement of Operations (13 ) — (13 ) Balance at December 31, 2017 $ 210 $ 3 $ 213 2018 charges (1) 47 17 64 Incurred, net of foreign currency translation of $(3) million and $0 million, respectively (158 ) (19 ) (177 ) Reversed to the Statement of Operations (19 ) — (19 ) Balance at December 31, 2018 $ 80 $ 1 $ 81 2019 charges (1) 185 19 204 Incurred, net of foreign currency translation of $(2) million and $0 million, respectively (41 ) (20 ) (61 ) Reversed to the Statement of Operations (4 ) — (4 ) Balance at December 31, 2019 $ 220 $ — $ 220 (1) Charges of $204 million , $64 million and $135 million in 2019, 2018 and 2017, respectively, exclude $5 million , $(1) million and $13 million , respectively, of benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations. On March 18, 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. The plan is in furtherance of our strategy to strengthen the competitiveness of our manufacturing footprint and increase production of premium, large-rim diameter consumer tires. The plan will result in approximately 1,100 job reductions as a result of changes to the layout of the plants, efficiency gains from new equipment and a reduction in the production of tires for declining, less profitable market segments. We have $100 million accrued related to this plan at December 31, 2019, which is expected to be substantially paid through 2022. On September 16, 2019, we approved a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility, as part of our strategy to strengthen the competitiveness of our manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. Approximately 740 eligible associates submitted buy-out applications between October 1 and November 1, 2019, which have been accepted by us. We have $69 million accrued related to this plan at December 31, 2019, which is expected to be substantially paid in 2020. The remainder of the accrual balance at December 31, 2019 is expected to be substantially utilized in the next 12 months and includes $24 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $16 million related to global plans to reduce SAG headcount and $7 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas. The following table shows net rationalization charges included in Income before Income Taxes: (In millions) 2019 2018 2017 Current Year Plans Associate severance and other related costs $ 183 $ 40 $ 81 Benefit plan curtailment and special termination benefits 5 — — Other exit and non-cancelable lease costs 11 — 2 Current Year Plans - Net Charges $ 199 $ 40 $ 83 Prior Year Plans Associate severance and other related costs $ (2 ) $ (11 ) $ 9 Benefit plan curtailment and special termination benefits — (1 ) 13 Other exit and non-cancelable lease costs 8 16 30 Prior Year Plans - Net Charges 6 4 52 Total Net Charges $ 205 $ 44 $ 135 Asset write-off and accelerated depreciation charges $ 15 $ 4 $ 40 Substantially all of the new charges in 2019 related to future cash outflows. Current year plan charges recognized in the year ended December 31, 2019 include $105 million related to the plan to modernize two of our manufacturing facilities in Germany, $76 million related to the Gadsden, Alabama plan, and $18 million related to separate plans to reduce manufacturing headcount and improve operating efficiency in Americas and EMEA. Prior year plan charges recognized in the year ended December 31, 2019 include $10 million primarily related to EMEA manufacturing plans. Prior year plan charges for the year ended December 31, 2019 also include reversals of $4 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $930 million in charges through 2019 and approximately $50 million is expected to be incurred in future periods. Approximately 2,100 associates will be released under new plans initiated in 2019, of which approximately 800 were released through December 31, 2019. In 2019, approximately 400 associates were released under plans initiated in prior years. Approximately 1,450 associates remain to be released under all ongoing rationalization plans. At December 31, 2019, 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. 19, Commitments and Contingent Liabilities, in this Form 10-K. Asset write-off and accelerated depreciation charges in 2019 primarily related to the curtailment of production at our Gadsden, Alabama manufacturing facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS. Rationalization activities initiated in 2018 include current year charges of $28 million related to a global plan to reduce SAG headcount and $13 million related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA. Current year plan charges for the year ended December 31, 2018 also include reversals of $1 million for actions no longer needed for their originally intended purposes. Prior year plan charges recognized in the year ended December 31, 2018 include charges of $15 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $3 million related to a plan to reduce manufacturing headcount in EMEA, and $3 million related to a global plan to reduce SAG headcount. Prior year plan charges for the year ended December 31, 2018 also include reversals of $18 million for actions no longer needed for their originally intended purposes. Rationalization activities initiated in 2017 include current year charges of $30 million related to reductions in manufacturing headcount in EMEA, $25 million related to a global plan to reduce SAG headcount, $20 million related to SAG headcount reductions in EMEA, and $8 million related to a plan to improve operating efficiency in EMEA. Current year plan charges for the year ended December 31, 2017 also include reversals of $1 million for actions no longer needed for their originally intended purposes. Prior year plan charges recognized in the year ended December 31, 2017 include charges of $35 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $16 million related to manufacturing headcount reductions in EMEA, and $12 million related to a global plan to reduce SAG headcount. Prior year plan charges for the year ended December 31, 2017 also include reversals of $12 million for actions no longer needed for their originally intended purposes. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Interest Expense | Interest Expense Interest expense includes interest and the amortization of deferred financing fees and debt discounts, less amounts capitalized, as follows: (In millions) 2019 2018 2017 Interest expense before capitalization $ 351 $ 335 $ 358 Capitalized interest (11 ) (14 ) (23 ) $ 340 $ 321 $ 335 Cash payments for interest, net of amounts capitalized, were $324 million , $331 million and $314 million in 2019 , 2018 and 2017 |
Other (Income) Expense
Other (Income) Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Other (Income) Expense (In millions) 2019 2018 2017 Gain on TireHub transaction, net of transaction costs $ — $ (272 ) $ — Non-service related pension and other postretirement benefits costs 118 121 62 Interest income on indirect tax settlements in Brazil (8 ) (38 ) — Financing fees and financial instruments expense 34 36 55 Net foreign currency exchange (gains) losses (22 ) (16 ) (7 ) General and product liability expense - discontinued products 11 9 — Royalty income (19 ) (20 ) (32 ) Net (gains) losses on asset sales (16 ) (1 ) (14 ) Interest income (18 ) (16 ) (13 ) Miscellaneous expense 18 23 19 $ 98 $ (174 ) $ 70 Gain on TireHub transaction represents the difference between the fair value of the equity interest received and the net book value of the assets and liabilities contributed in connection with the formation of TireHub, LLC ("TireHub"), a distribution joint venture in the United States, net of transaction costs. For the year ended December 31, 2018, we recognized a gain of $286 million and incurred transaction costs of $14 million . Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. For further information, refer to Note to the Consolidated Financial Statements No. 17, Pension, Other Postretirement Benefits and Savings Plans, in this Form 10-K. We previously filed claims with the Brazilian tax authorities challenging the legality of the calculation of certain indirect taxes for the years 2001 through 2018. During 2018, we received favorable rulings related to these claims. As a result of the rulings, we recorded a gain of $53 million in CGS and related interest income of $38 million in Other (Income) Expense for the year ended December 31, 2018. During 2019, there were additional favorable rulings related to these claims. As a result, we recorded an additional gain of $11 million in CGS and related interest income of $8 million in Other (Income) Expense. Financing fees and financial instruments expense consists of commitment fees and charges incurred in connection with financing transactions. Financing fees and financial instruments expense in 2017 included a premium of $25 million related to the redemption of our $700 million 7% senior notes due 2022 in May 2017. Miscellaneous expense for the year ended December 31, 2019 includes expenses of $25 million incurred by the Company as a direct result of flooding at our Beaumont, Texas chemical facility during the third quarter of 2019. Miscellaneous expense in 2018 and 2017 includes $12 million and $14 million , respectively, related to expenses incurred by the Company as a direct result of hurricanes Harvey and Irma during 2017. Other (Income) Expense also includes net foreign currency exchange (gains) and losses; general and product liability expense - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries; royalty income which is derived primarily from licensing arrangements; net (gains) and losses on asset sales; and interest income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of Income before Income Taxes follow: (In millions) 2019 2018 2017 U.S. $ (39 ) $ 439 $ 394 Foreign 216 572 484 $ 177 $ 1,011 $ 878 A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense follows: (In millions) 2019 2018 2017 U.S. federal income tax expense at the statutory rate of 21% (35% for 2017) $ 37 $ 212 $ 307 Federal and state tax on accelerated royalty income transaction 334 — — Net establishment (release) of foreign valuation allowances 140 (5 ) 1 Net establishment (release) of U.S. valuation allowances (98 ) 25 5 Net foreign losses (income) with no tax due to valuation allowances 48 7 (7 ) U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction (17 ) 20 (23 ) Adjustment for foreign income taxed at different rates 16 30 (55 ) Net establishment (resolution) of uncertain tax positions 7 18 (6 ) Deferred tax impact of enacted tax rate and law changes 3 — 389 State income taxes, net of U.S. federal benefit (1 ) (1 ) 9 Provision for undistributed foreign earnings, net — (9 ) (162 ) Transition tax — 8 77 Domestic production activities deduction — (1 ) (16 ) Other 5 (1 ) (6 ) United States and Foreign Tax Expense $ 474 $ 303 $ 513 The components of United States and Foreign Tax Expense by taxing jurisdiction, follow: (In millions) 2019 2018 2017 Current: Federal $ — $ (15 ) $ (22 ) Foreign 134 188 166 State 17 (1 ) 3 151 172 147 Deferred: Federal 133 120 389 Foreign 153 6 (8 ) State 37 5 (15 ) 323 131 366 United States and Foreign Tax Expense $ 474 $ 303 $ 513 Income tax expense in 2019 was $474 million on income before income taxes of $177 million . In 2019 , income tax expense was unfavorably impacted by net discrete adjustments totaling $386 million . Discrete adjustments were due to non-cash charges of $334 million related to an acceleration of royalty income in the U.S. from the sale of certain European royalty payments to Luxembourg and $150 million related to an increase in our valuation allowance on tax losses in Luxembourg, which were partially offset by a non-cash tax benefit of $98 million related to a reduction of our U.S. valuation allowance for foreign tax credits. At December 31, 2019 , our valuation allowance on certain of our U.S. federal, state and local deferred tax assets was $13 million , primarily related to state tax loss and credit carryforwards, and our valuation allowance on our foreign deferred tax assets was $969 million . At December 31, 2018, our valuation allowance on certain U.S. federal, state and local deferred tax assets was $113 million and our valuation allowance on our foreign deferred tax assets was $204 million . We consider both positive and negative evidence when measuring the need for a valuation allowance. The weight given to the evidence is commensurate with the extent to which it may be objectively verified. Current and cumulative financial reporting results are a source of objectively verifiable evidence. We give operating results during the most recent three-year period a significant weight in our analysis. We typically only consider forecasts of future profitability when positive cumulative operating results exist in the most recent three-year period. We perform scheduling exercises to determine if sufficient taxable income of the appropriate character exists in the periods required in order to realize our deferred tax assets with limited lives (such as tax loss carryforwards and tax credits) prior to their expiration. We consider tax planning strategies available to accelerate taxable amounts if required to utilize expiring deferred tax assets. A valuation allowance is not required to the extent that, in our judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not that our deferred tax assets will be realized. At December 31, 2019, our net deferred tax assets include approximately $403 million of foreign tax credits, net of a valuation allowance of $3 million , as compared to $637 million , net of a valuation allowance of $103 million , at December 31, 2018. If not utilized, these foreign tax credits will expire from 2022 to 2028. These credits were generated primarily from the receipt of foreign dividends. Our earnings and forecasts of future profitability along with three significant sources of foreign income provide us sufficient positive evidence to utilize these credits, despite the negative evidence of their limited carryforward periods. Those sources of foreign income are (1) 100% of our domestic profitability can be re-characterized as foreign source income under current U.S. tax law to the extent domestic losses have offset foreign source income in prior years, (2) annual net foreign source income, exclusive of dividends, primarily from royalties, and (3) tax planning strategies, including capitalizing research and development costs, accelerating income on cross border sales of inventory or raw materials to our subsidiaries and reducing U.S. interest expense by, for example, reducing intercompany loans through repatriating current year earnings of foreign subsidiaries, all of which would increase our domestic profitability. Foreign source taxable income for the fourth quarter of 2019 includes accelerated royalty income in the U.S. of $2.1 billion received from Luxembourg as payment for the purchase of the right to receive technology royalties from our European operations for a period of 12 years . External specialists assisted management with this transaction. The royalty sale transaction resulted in a U.S. tax charge of $334 million and a deferred tax asset and offsetting valuation allowance of $576 million in Luxembourg. Foreign source taxable income for the fourth quarter of 2019 also includes $320 million of accelerated cross-border sales of inventory from the U.S. to Canada, resulting in a U.S. tax charge of approximately $70 million that was offset by the establishment of a deferred tax asset. The federal portion of the tax charges related to both the royalty acceleration and Canadian prepayment transactions was fully offset by the utilization of foreign tax credits of approximately $310 million . In addition, as a result of these transactions, we released an existing U.S. valuation allowance on foreign tax credits of $98 million . We considered our current forecasts of future profitability in assessing our ability to realize our remaining net foreign tax credits. These forecasts include the impact of recent trends, including various macroeconomic factors such as raw material prices, on our profitability, as well as the impact of tax planning strategies. Macroeconomic factors, including raw material prices, possess a high degree of volatility and can significantly impact our profitability. As such, there is a risk that future foreign source income will not be sufficient to fully utilize these foreign tax credits. However, we believe our forecasts of future profitability along with the three significant sources of foreign income described above provide us sufficient positive evidence to conclude that it is more likely than not that our foreign tax credits, net of remaining valuation allowances, will be fully utilized prior to their various expiration dates. Our losses in various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of our net deferred tax assets. In Luxembourg, we maintained a valuation allowance on all deferred tax assets with limited lives. As a result of recent negative evidence, including cumulative losses in the most recent three-year period and a forecast of continued losses for 2020, we increased our valuation allowance on our net deferred tax assets in Luxembourg to now include losses with unlimited lives, resulting in a non-cash tax charge of $150 million . Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. We do not believe that sufficient positive evidence required to release valuation allowances having a significant impact on our financial position or results of operations will exist within the next twelve months. In 2018 , income tax expense of $303 million was unfavorably impacted by net discrete adjustments of $65 million . Discrete adjustments were primarily due to charges totaling $135 million related to deferred tax assets for foreign tax credits, including the establishment of a valuation allowance on foreign tax credits of $98 million , partially offset by a tax benefit of $88 million related to a worthless stock deduction created by permanently ceasing operations of our Venezuelan subsidiary during the fourth quarter of 2018. Income tax expense in 2018 also included net charges of $18 million for various other discrete tax adjustments, including those related to finalizing our accounting for certain provisional items related to the Tax Act. In 2017, income tax expense of $513 million was unfavorably impacted by net discrete adjustments of $294 million , due to a net non-cash charge of $299 million related to the enactment of the Tax Act and a net benefit of $5 million for other miscellaneous discrete tax items. Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2019 2018 Tax loss carryforwards and credits $ 1,159 $ 1,473 Prepaid royalty income 576 — Capitalized research and development expenditures 416 404 Accrued expenses deductible as paid 347 261 Postretirement benefits and pensions 221 207 Rationalizations and other provisions 38 26 Vacation and sick pay 23 23 Deferred interest deductions — 40 Other 106 111 2,886 2,545 Valuation allowance (982 ) (317 ) Total deferred tax assets 1,904 2,228 Property basis differences (466 ) (475 ) Tax on undistributed earnings of subsidiaries (1 ) (1 ) Total net deferred tax assets $ 1,437 $ 1,752 At December 31, 2019 , we had $611 million of tax assets for net operating loss, capital loss and tax credit carryforwards related to certain foreign subsidiaries. These carryforwards are primarily from countries with unlimited carryforward periods, but include $63 million of tax credit carryforwards in various European countries that are subject to expiration from 2020 to 2029. On December 31, 2019, deferred taxes included $576 million for the prepaid royalty income in Luxembourg, as further described above. A valuation allowance totaling $969 million has been recorded against these and other deferred tax assets where recovery of the asset or carryforward is uncertain. In addition, we had $489 million of federal and $59 million of state tax assets for net operating loss and tax credit carryforwards. The federal carryforwards consist of $406 million of foreign tax credits that are subject to expiration from 2022 to 2028 and $83 million of tax assets related to research and development credits and other federal credits that are subject to expiration from 2030 to 2039. The state carryforwards are subject to expiration from 2020 to 2034. A valuation allowance of $13 million has been recorded against federal and state deferred tax assets where recovery is uncertain. At December 31, 2019 , we had unrecognized tax benefits of $82 million that if recognized, would have a favorable impact on our tax expense of $56 million . We had accrued interest of $1 million as of December 31, 2019 . If not favorably settled, $6 million of the unrecognized tax benefits and all of the accrued interest would require the use of our cash. We do not expect changes during 2020 to our unrecognized tax benefits to have a significant impact on our financial position or results of operations. Reconciliation of Unrecognized Tax Benefits (In millions) 2019 2018 2017 Balance at January 1 $ 71 $ 52 $ 63 Increases related to prior year tax positions 24 9 2 Decreases related to prior year tax positions — (1 ) (2 ) Settlements (11 ) (2 ) (8 ) Foreign currency impact (2 ) (5 ) — Increases related to current year tax positions — 21 — Lapse of statute of limitations — (3 ) (3 ) Balance at December 31 $ 82 $ 71 $ 52 We are open to examination in the United States for 2019 and in Germany from 2016 onward. Generally, for our remaining tax jurisdictions, years from 2014 onward are still open to examination. We have undistributed earnings and profits of our foreign subsidiaries totaling approximately $2.4 billion at December 31, 2019 . We have concluded that no provision for tax in the United States is required because substantially all of the remaining undistributed earnings and profits have been or will be reinvested in property, plant and equipment and working capital outside of the United States. A foreign withholding tax charge of approximately $80 million (net of foreign tax credits) would be required if these earnings and profits were to be distributed to the United States. Net cash payments for income taxes were $142 million , $178 million and $144 million in 2019 , 2018 and 2017 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock. Basic and diluted earnings per common share are calculated as follows: (In millions, except per share amounts) 2019 2018 2017 Earnings (loss) per share — basic: Goodyear net income (loss) $ (311 ) $ 693 $ 346 Weighted average shares outstanding 233 237 249 Earnings (loss) per common share — basic $ (1.33 ) $ 2.92 $ 1.39 Earnings (loss) per share — diluted: Goodyear net income (loss) $ (311 ) $ 693 $ 346 Weighted average shares outstanding 233 237 249 Dilutive effect of stock options and other dilutive securities — 2 4 Weighted average shares outstanding — diluted 233 239 253 Earnings (loss) per common share — diluted $ (1.33 ) $ 2.89 $ 1.37 Weighted average shares outstanding — diluted for 2019 excludes the dilutive effect of approximately 3 million equivalent shares, related primarily to options with exercise prices less than the average market price of our common shares (i.e., "in-the-money" options), as their inclusion would have been anti-dilutive due to the Goodyear net loss. Additionally, weighted average shares outstanding — diluted for 2019 excludes approximately 2 million equivalent shares related to options with exercise prices greater than the average market price of our common shares (i.e., “underwater” options). There were approximately 2 million and 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for 2018 and 2017, respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Segment information reflects our strategic business units (“SBUs”), which are organized to meet customer requirements and global competition. For the year ended December 31, 2019, we operated our business through three operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa; and Asia Pacific. Segment information is reported on the basis used for reporting to our Chief Executive Officer. Each of the three regional business segments is involved in the development, manufacture, distribution and sale of tires. Certain of the business segments also provide related products and services, which include retreads and automotive and commercial truck maintenance and repair services. Each segment also exports tires to other segments. Americas manufactures and sells tires for automobiles, trucks, buses, earthmoving, mining and industrial equipment, aircraft, and for various other applications throughout North, Central and South America. Americas also provides related products and services including retreaded tires, tread rubber, and automotive and commercial truck maintenance and repair services, as well as sells chemical and natural rubber products to our other business segments and to unaffiliated customers. EMEA manufactures and sells tires for automobiles, trucks, buses, aircraft, motorcycles, and earthmoving, mining and industrial equipment throughout Europe, the Middle East and Africa. EMEA also sells retreaded aviation tires, retreading and related services for commercial truck and earthmoving, mining and industrial equipment, and automotive maintenance and repair services. Asia Pacific manufactures and sells tires for automobiles, trucks, aircraft, farm, and earthmoving, mining and industrial equipment throughout the Asia Pacific region. Asia Pacific also provides related products and services including retreaded truck and aviation tires, tread rubber, and automotive maintenance and repair services. The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income before Income Taxes: (In millions) 2019 2018 2017 Sales Americas $ 7,922 $ 8,168 $ 8,212 Europe, Middle East and Africa 4,708 5,090 4,928 Asia Pacific 2,115 2,217 2,237 Net Sales $ 14,745 $ 15,475 $ 15,377 Segment Operating Income Americas $ 550 $ 654 $ 847 Europe, Middle East and Africa 202 363 367 Asia Pacific 193 257 342 Total Segment Operating Income 945 1,274 1,556 Less: Rationalizations 205 44 135 Interest expense 340 321 335 Other (income) expense (1) 98 (174 ) 70 Asset write-offs and accelerated depreciation 15 4 40 Corporate incentive compensation plans 50 13 33 Retained expenses of divested operations 10 9 13 Other (2) 50 46 52 Income before Income Taxes $ 177 $ 1,011 $ 878 (1) Refer to Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K. (2) Primarily represents unallocated corporate costs and the elimination of $17 million , $18 million and $30 million for the years ended December 31, 2019, 2018 and 2017, respectively, of royalty income attributable to the strategic business units. The following table presents segment assets at December 31: (In millions) 2019 2018 Assets Americas $ 7,606 $ 7,160 Europe, Middle East and Africa 4,724 4,809 Asia Pacific 2,711 2,602 Total Segment Assets 15,041 14,571 Corporate (1) 2,144 2,301 $ 17,185 $ 16,872 (1) Corporate includes substantially all of our U.S. net deferred tax assets. Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net sales less CGS (excluding asset write-offs and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates. Segment operating income does not include net rationalization charges, asset sales, and certain other items. The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets, only China was considered to be significant. (In millions) 2019 2018 2017 Net Sales United States $ 6,489 $ 6,692 $ 6,678 Germany (1) 979 1,691 1,874 Other international 7,277 7,092 6,825 $ 14,745 $ 15,475 $ 15,377 Long-Lived Assets United States $ 2,681 $ 2,734 China 722 762 Other international 3,805 3,763 $ 7,208 $ 7,259 (1) The 2018 and 2019 decrease in net sales primarily related to a business reorganization that centralized our OE sales for EMEA in Luxembourg. At December 31, 2019 , significant concentrations of cash and cash equivalents held by our international subsidiaries included the following amounts: • $337 million or 37% in Asia Pacific, primarily China, India and Japan ( $278 million or 35% at December 31, 2018), • $214 million or 24% in EMEA, primarily Belgium ( $261 million or 33% at December 31, 2018), and • $190 million or 21% in Americas, primarily Brazil, Canada and Chile ( $134 million or 17% at December 31, 2018). Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-K, net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K, and asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2019 2018 2017 Rationalizations Americas $ 90 $ 3 $ 6 Europe, Middle East and Africa 115 36 111 Asia Pacific — 3 2 Total Segment Rationalizations $ 205 $ 42 $ 119 Corporate — 2 16 $ 205 $ 44 $ 135 (In millions) 2019 2018 2017 Net (Gains) Losses on Asset Sales Americas (1) $ — $ (275 ) $ (4 ) Europe, Middle East and Africa (16 ) 2 (10 ) Total Segment Asset Sales $ (16 ) $ (273 ) $ (14 ) (1) Americas Net (Gains) Losses on Asset Sales for the year ended December 31, 2018 includes the gain of $272 million related to the TireHub transaction, net of transaction costs. (In millions) 2019 2018 2017 Asset Write-offs and Accelerated Depreciation Americas $ 13 $ — $ — Europe, Middle East and Africa 2 4 40 Total Segment Asset Write-offs and Accelerated Depreciation $ 15 $ 4 $ 40 The following tables present segment capital expenditures and depreciation and amortization: (In millions) 2019 2018 2017 Capital Expenditures Americas $ 369 $ 406 $ 525 Europe, Middle East and Africa 227 180 159 Asia Pacific 141 188 164 Total Segment Capital Expenditures $ 737 $ 774 $ 848 Corporate 33 37 33 $ 770 $ 811 $ 881 (In millions) 2019 2018 2017 Depreciation and Amortization Americas $ 430 $ 414 $ 398 Europe, Middle East and Africa 197 201 191 Asia Pacific 133 131 124 Total Segment Depreciation and Amortization $ 760 $ 746 $ 713 Corporate 35 32 68 $ 795 $ 778 $ 781 The following table presents segment equity in the net income of investees accounted for by the equity method: (In millions) 2019 2018 2017 Equity in (Income) Loss Americas $ 32 $ 11 $ (5 ) Europe, Middle East and Africa — (1 ) — Total Segment Equity in (Income) Loss $ 32 $ 10 $ (5 ) |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable (In millions) 2019 2018 Accounts receivable $ 2,052 $ 2,143 Allowance for doubtful accounts (111 ) (113 ) $ 1,941 $ 2,030 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) 2019 2018 Raw materials $ 530 $ 569 Work in process 143 152 Finished goods 2,178 2,135 $ 2,851 $ 2,856 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2019 : (In millions) Balance at December 31, 2018 Acquisitions Divestitures Translation Balance at December 31, 2019 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 415 2 — (6 ) 411 Asia Pacific 63 1 — (1 ) 63 $ 569 $ 3 $ — $ (7 ) $ 565 The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2018 : (In millions) Balance at December 31, 2017 Acquisitions Divestitures Translation Balance at December 31, 2018 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 437 2 — (24 ) 415 Asia Pacific 67 — — (4 ) 63 $ 595 $ 2 $ — $ (28 ) $ 569 The following table presents information about intangible assets: 2019 2018 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 124 $ (6 ) $ 118 $ 124 $ (6 ) $ 118 Trademarks and patents 24 (19 ) 5 23 (19 ) 4 Other intangible assets 25 (11 ) 14 23 (9 ) 14 $ 173 $ (36 ) $ 137 $ 170 $ (34 ) $ 136 (1) Includes impact of foreign currency translation. Intangible assets are primarily comprised of the rights to use the Dunlop brand name and related trademarks and certain other brand names and trademarks. Amortization expense for intangible assets totaled $2 million in 2019 , 2018 and 2017 . We estimate that annual amortization expense related to intangible assets will be approximately $2 million in 2020 through 2022, and $1 million in 2023 and 2024. The weighted average remaining amortization period is approximately 20 years . Our annual impairment analyses for 2019 , 2018 and 2017 indicated no impairment of goodwill or intangible assets with indefinite lives. Our quantitative goodwill analysis as of October 31, 2019 concluded that the fair values substantially exceeded the carrying amounts for each reporting unit tested, except for the EMEA reporting unit. There were no events or circumstances that indicated the quantitative impairment tests should be re-performed for goodwill or for intangible assets with indefinite lives for any reporting unit at December 31, 2019 . We determine the estimated fair value for each reporting unit based on discounted cash flow projections and market values for comparable businesses. EMEA had an estimated fair value that exceeded its carrying value, including goodwill, by approximately 10% . The most critical assumptions used in the calculation of the fair value of the EMEA reporting unit are the projected long term operating margin, discount rate and the selection of market multiples. If we make adverse revisions to our significant assumptions, including as a result of business performance or market conditions, or if our market capitalization declines further and if such a decline becomes indicative that the fair value of our reporting units has declined below their carrying values, we may need to record a material, non-cash goodwill impairment charge in a future period. |
Other Assets and Investments
Other Assets and Investments | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Investments | Other Assets and Investments Dividends received from our consolidated subsidiaries were $43 million , $608 million and $558 million in 2019 , 2018 and 2017 , respectively. Dividends received in 2019 were primarily from Singapore and Brazil and paid to the United States. Dividends received in 2018 were primarily from Singapore and Japan and paid to the United States. Dividends received in 2017 were primarily from Luxembourg and paid to the United States. Dividends received from our affiliates accounted for using the equity method were $4 million , $5 million and $5 million in 2019 , 2018 and 2017 , respectively. The balance of our investment in TireHub was $262 million and $270 million at December 31, 2019 and 2018, respectively, and was included in Other Assets on our Consolidated Balance Sheets. Our investment in TireHub is accounted for under the equity method of accounting and, as such, includes our 50% share of the net losses of TireHub, which totaled $33 million and $15 million in 2019 and 2018, respectively. In 2019, we contributed a loan receivable from TireHub of $30 million to their equity, which increased our investment in TireHub. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment 2019 2018 (In millions) Owned Finance Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 425 $ 1 $ 426 $ 427 $ — $ 427 Buildings (1) 2,431 227 2,658 2,564 29 2,593 Machinery and equipment 13,624 30 13,654 13,440 43 13,483 Construction in progress 681 1 682 654 1 655 17,161 259 17,420 17,085 73 17,158 Accumulated depreciation (10,438 ) (50 ) (10,488 ) (10,128 ) (33 ) (10,161 ) 6,723 209 6,932 6,957 40 6,997 Spare parts 276 — 276 262 — 262 $ 6,999 $ 209 $ 7,208 $ 7,219 $ 40 $ 7,259 (1) Includes finance lease obligations related to our Global and Americas Headquarters at December 31, 2019 as a result of the adoption of the new lease accounting standard. The range of useful lives of property used in arriving at the annual amount of depreciation are as follows: buildings and improvements, 3 to 45 years; and machinery and equipment, 3 to 40 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We determine if an arrangement is or contains a lease at inception. We enter into leases primarily for our distribution facilities, manufacturing equipment, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Our leases have remaining lease terms of less than 1 year to approximately 50 years . Most of our leases include options to extend the lease, with renewal terms ranging from 1 to 50 years years or more, and some include options to terminate the lease within 1 year . If it is reasonably certain that an option to extend or terminate a lease will be exercised, that option is considered in the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize short-term lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include variable lease payments, generally based on consumer price indices. Variable lease payments that are assigned to an index are determined based on the initial index at commencement, and the variability based on changes in the index is accounted for as it changes. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and are recorded as lease expense in the period incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components, which are accounted for separately. Operating leases are included in Operating Lease Right-of-Use (“ROU”) Assets, Operating Lease Liabilities due Within One Year and Operating Lease Liabilities on our Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Long Term Debt and Finance Leases due Within One Year, and Long Term Debt and Finance Leases on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Generally, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate stated in the lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. The components of lease expense included in Income before Income Taxes for the year ended December 31, 2019 are as follows: (In millions) 2019 Operating Lease Expense $ 292 Finance Lease Expense: Amortization of ROU assets 11 Interest on lease liabilities 21 Short Term Lease Expense 6 Variable Lease Expense 7 Sublease Income (15 ) Total Lease Expense $ 322 Net rental expense for the years ended December 31, 2018 and 2017 is comprised of the following: (In millions) 2018 2017 Gross rental expense $ 333 $ 332 Sublease rental income (16 ) (17 ) $ 317 $ 315 Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: (In millions) Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 267 Operating Cash Flows for Finance Leases 21 Financing Cash Flows for Finance Leases 7 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 197 Finance Leases 34 Supplemental balance sheet information related to leases as of December 31, 2019 is as follows: (In millions, except lease term and discount rate) Operating Leases Operating Lease ROU Assets $ 855 Operating Lease Liabilities due Within One Year $ 199 Operating Lease Liabilities 668 Total Operating Lease Liabilities $ 867 Finance Leases Property, Plant and Equipment, at cost $ 259 Accumulated Depreciation (50 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 6 Long Term Debt and Finance Leases 243 Total Finance Lease Liabilities $ 249 Weighted Average Remaining Lease Term Operating Leases 7.2 years Finance Leases 31.6 years Weighted Average Discount Rate Operating Leases 6.69 % Finance Leases 8.46 % Future maturities of our lease liabilities, excluding subleases, as of December 31, 2019 are as follows: (In millions) Operating Leases Finance Leases 2020 $ 242 $ 25 2021 192 35 2022 141 22 2023 109 21 2024 81 20 Thereafter 359 690 Total Lease Payments 1,124 813 Less: Imputed Interest 257 564 Total $ 867 $ 249 As of December 31, 2019, we have additional operating leases that have not yet commenced for which the present value of lease payments over the respective lease terms totals $48 million . Accordingly, these leases are not recorded on the Consolidated Balance Sheet at December 31, 2019. These operating leases will commence in 2020 with lease terms of 10 years to 15 years . |
Leases | Leases We determine if an arrangement is or contains a lease at inception. We enter into leases primarily for our distribution facilities, manufacturing equipment, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Our leases have remaining lease terms of less than 1 year to approximately 50 years . Most of our leases include options to extend the lease, with renewal terms ranging from 1 to 50 years years or more, and some include options to terminate the lease within 1 year . If it is reasonably certain that an option to extend or terminate a lease will be exercised, that option is considered in the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize short-term lease expense for these leases on a straight-line basis over the lease term. Certain of our lease agreements include variable lease payments, generally based on consumer price indices. Variable lease payments that are assigned to an index are determined based on the initial index at commencement, and the variability based on changes in the index is accounted for as it changes. The variable portion of payments is not included in the initial measurement of the right-of-use asset or lease liability due to the uncertainty of the payment amount and are recorded as lease expense in the period incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have lease agreements with lease and non-lease components, which are accounted for separately. Operating leases are included in Operating Lease Right-of-Use (“ROU”) Assets, Operating Lease Liabilities due Within One Year and Operating Lease Liabilities on our Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Long Term Debt and Finance Leases due Within One Year, and Long Term Debt and Finance Leases on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Generally, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate stated in the lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. The components of lease expense included in Income before Income Taxes for the year ended December 31, 2019 are as follows: (In millions) 2019 Operating Lease Expense $ 292 Finance Lease Expense: Amortization of ROU assets 11 Interest on lease liabilities 21 Short Term Lease Expense 6 Variable Lease Expense 7 Sublease Income (15 ) Total Lease Expense $ 322 Net rental expense for the years ended December 31, 2018 and 2017 is comprised of the following: (In millions) 2018 2017 Gross rental expense $ 333 $ 332 Sublease rental income (16 ) (17 ) $ 317 $ 315 Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: (In millions) Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 267 Operating Cash Flows for Finance Leases 21 Financing Cash Flows for Finance Leases 7 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 197 Finance Leases 34 Supplemental balance sheet information related to leases as of December 31, 2019 is as follows: (In millions, except lease term and discount rate) Operating Leases Operating Lease ROU Assets $ 855 Operating Lease Liabilities due Within One Year $ 199 Operating Lease Liabilities 668 Total Operating Lease Liabilities $ 867 Finance Leases Property, Plant and Equipment, at cost $ 259 Accumulated Depreciation (50 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 6 Long Term Debt and Finance Leases 243 Total Finance Lease Liabilities $ 249 Weighted Average Remaining Lease Term Operating Leases 7.2 years Finance Leases 31.6 years Weighted Average Discount Rate Operating Leases 6.69 % Finance Leases 8.46 % Future maturities of our lease liabilities, excluding subleases, as of December 31, 2019 are as follows: (In millions) Operating Leases Finance Leases 2020 $ 242 $ 25 2021 192 35 2022 141 22 2023 109 21 2024 81 20 Thereafter 359 690 Total Lease Payments 1,124 813 Less: Imputed Interest 257 564 Total $ 867 $ 249 As of December 31, 2019, we have additional operating leases that have not yet commenced for which the present value of lease payments over the respective lease terms totals $48 million . Accordingly, these leases are not recorded on the Consolidated Balance Sheet at December 31, 2019. These operating leases will commence in 2020 with lease terms of 10 years to 15 years . |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Financing Arrangements and Derivative Financial Instruments | Financing Arrangements and Derivative Financial Instruments At December 31, 2019 , we had total credit arrangements of $9,078 million , of which $3,578 million were unused. At that date, 32% of our debt was at variable interest rates averaging 3.81% . Notes Payable and Overdrafts, Long Term Debt and Finance Leases due Within One Year and Short Term Financing Arrangements At December 31, 2019 , we had short term committed and uncommitted credit arrangements totaling $758 million , of which $389 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates. The following table presents amounts due within one year: December 31, December 31, (In millions) 2019 2018 Chinese credit facilities $ 118 $ 122 Other domestic and foreign debt 230 288 Notes Payable and Overdrafts $ 348 $ 410 Weighted average interest rate 4.92 % 8.03 % Chinese credit facilities $ 95 $ 32 8.75% note due 2020 280 — Other domestic and foreign debt (including finance leases) 187 211 Long Term Debt and Finance Leases due Within One Year $ 562 $ 243 Weighted average interest rate 6.58 % 4.57 % Total obligations due within one year $ 910 $ 653 Long Term Debt and Finance Leases and Financing Arrangements At December 31, 2019 , we had long term credit arrangements totaling $8,320 million , of which $3,189 million were unused. The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: December 31, 2019 December 31, 2018 (In millions) Amount Interest Rate Amount Interest Rate Notes: 8.75% due 2020 $ 280 $ 278 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 281 286 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: First lien revolving credit facility due 2021 — — — — Second lien term loan facility due 2025 400 3.97 % 400 4.46 % European revolving credit facility due 2024 — — — — Pan-European accounts receivable facility 327 0.98 % 335 1.01 % Mexican credit facilities 200 3.44 % 200 4.30 % Chinese credit facilities 195 4.87 % 219 5.03 % Other foreign and domestic debt (1) 661 4.02 % 884 5.35 % 5,094 5,352 Unamortized deferred financing fees (28 ) (36 ) 5,066 5,316 Finance lease obligations (2) 249 37 5,315 5,353 Less portion due within one year (562 ) (243 ) $ 4,753 $ 5,110 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes finance lease obligations related to our Global and Americas Headquarters at December 31, 2019. NOTES $282 million 8.75% Senior Notes due 2020 At December 31, 2019 , $282 million aggregate principal amount of 8.75% notes due 2020 were outstanding. These notes had an effective yield of 9.20% at issuance. These notes are unsecured senior obligations, are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below, and will mature on August 15, 2020 . We have the option to redeem these notes, in whole or in part, at any time at a redemption price equal to the greater of 100% of the principal amount of these notes or the sum of the present values of the remaining scheduled payments on these notes, discounted using a defined treasury rate plus 50 basis points, plus in either case accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $1.0 billion 5.125% Senior Notes due 2023 At December 31, 2019 , $1.0 billion aggregate principal amount of 5.125% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on November 15, 2023. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time at a redemption price of 101.281% and 100% during the 12-month periods commencing on November 15, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit the ability of the Company and certain of its subsidiaries, including Goodyear Europe B.V. ("GEBV"), to (i) incur additional debt or issue redeemable preferred stock, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. For example, if these notes are assigned an investment grade rating by Moody's and Standard and Poor's and no default has occurred and is continuing, certain covenants will be suspended and we may elect to suspend the subsidiary guarantees. The indenture has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. €250 million 3.75% Senior Notes due 2023 of GEBV At December 31, 2019 , € 250 million aggregate principal amount of GEBV’s 3.75% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on December 15, 2023. These notes are unsecured senior obligations of GEBV and are guaranteed, on an unsecured senior basis, by the Company and our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time at a redemption price of 100.938% and 100% during the 12-month periods commencing on December 15, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 5.125% senior notes due 2023, described above. $900 million 5% Senior Notes due 2026 At December 31, 2019 , $900 million aggregate principal amount of 5% senior notes due 2026 were outstanding. These notes were sold at 100% of the principal amount and will mature on May 31, 2026. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after May 31, 2021 at a redemption price of 102.5% , 101.667% , 100.833% and 100% during the 12-month periods commencing on May 31, 2021, 2022, 2023 and 2024 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to May 31, 2021, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 5.125% senior notes due 2023, described above. $700 million 4.875% Senior Notes due 2027 At December 31, 2019 , $700 million aggregate principal amount of 4.875% senior notes due 2027 were outstanding. These notes were sold at 100% of the principal amount and will mature on March 15, 2027. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time prior to their maturity. If we elect to redeem the notes prior to December 15, 2026, we will pay a redemption price equal to the greater of 100% of the principal amount of the notes redeemed or the sum of the present values of the remaining scheduled payments on the notes redeemed, discounted using a defined treasury rate plus 50 basis points, plus in either case accrued and unpaid interest to the redemption date. If we elect to redeem the notes on or after December 15, 2026, we will pay a redemption price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur certain liens, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $150 million 7% Senior Notes due 2028 At December 31, 2019 , $150 million aggregate principal amount of 7% notes due 2028 were outstanding. These notes are unsecured senior obligations and will mature on March 15, 2028 . We have the option to redeem these notes, in whole or in part, at any time at a redemption price equal to the greater of 100% of the principal amount thereof or the sum of the present values of the remaining scheduled payments thereon, discounted using a defined treasury rate plus 15 basis points, plus in either case accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. CREDIT FACILITIES $2.0 billion Amended and Restated First Lien Revolving Credit Facility due 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 . Amounts drawn under this facility bear interest at LIBOR plus 125 basis points, based on our current liquidity as described below. Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in collateral that includes, subject to certain exceptions: • U.S. and Canadian accounts receivable and inventory; • certain of our U.S. manufacturing facilities; • equity interests in our U.S. subsidiaries and up to 65% of the equity interests in our directly owned foreign subsidiaries; and • substantially all other tangible and intangible assets, including equipment, contract rights and intellectual property. Availability under the facility is subject to a borrowing base, which is based primarily on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, after adjusting for customary factors that are subject to modification from time to time by the administrative agent or the majority lenders at their discretion (not to be exercised unreasonably), (ii) the value of our principal trademarks, and (iii) certain cash in an amount not to exceed $200 million . Modifications are based on the results of periodic collateral and borrowing base evaluations and appraisals. To the extent that our eligible accounts receivable, inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion . In addition, if the amount of outstanding borrowings and letters of credit under the facility exceeds the borrowing base, we are required to prepay borrowings and/or cash collateralize letters of credit sufficient to eliminate the excess. As of December 31, 2019 , our borrowing base, and therefore our availability, under this facility was $301 million below the facility's stated amount of $2.0 billion . The facility, which matures on April 7, 2021, contains certain covenants that, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur additional debt or issue redeemable preferred stock, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. In addition, in the event that the availability under the facility plus the aggregate amount of our Available Cash is less than $200 million , we will not be permitted to allow our ratio of EBITDA to Consolidated Interest Expense to be less than 2.0 to 1.0 for any period of four consecutive fiscal quarters. “Available Cash,” “EBITDA” and “Consolidated Interest Expense” have the meanings given them in the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2015. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. If Available Cash (as defined in the facility) plus the availability under the facility is greater than $1.0 billion , amounts drawn under the facility will bear interest, at our option, at (i) 125 basis points over LIBOR or (ii) 25 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points), and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points. If Available Cash plus the availability under the facility is equal to or less than $1.0 billion , then amounts drawn under the facility will bear interest, at our option, at (i) 150 basis points over LIBOR or (ii) 50 basis points over an alternative base rate, and undrawn amounts under the facility will be subject to an annual commitment fee of 25 basis points. At December 31, 2019 and 2018, we had no borrowings and $37 million of letters of credit issued under the revolving credit facility. Amended and Restated Second Lien Term Loan Facility due 2025 Our amended and restated second lien term loan facility matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility. Our obligations under our second lien term loan facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries and are secured by second priority security interests in the same collateral securing the $2.0 billion first lien revolving credit facility. The facility contains covenants, representations, warranties and defaults similar to those in the $2.0 billion first lien revolving credit facility. In addition, if our Pro Forma Senior Secured Leverage Ratio (the ratio of Consolidated Net Secured Indebtedness to EBITDA) for any period of four consecutive fiscal quarters is greater than 3.0 to 1.0, before we may use cash proceeds from certain asset sales to repay any junior lien, senior unsecured or subordinated indebtedness, we must first offer to use such cash proceeds to prepay borrowings under the second lien term loan facility. "Pro Forma Senior Secured Leverage Ratio," "Consolidated Net Secured Indebtedness" and "EBITDA" have the meanings given them in the facility. At December 31, 2019 and 2018, the amounts outstanding under this facility were $400 million . €800 million Amended and Restated Senior Secured European Revolving Credit Facility due 2024 On March 27, 2019, we amended and restated our European revolving credit facility. Significant changes to the European revolving credit facility include extending the maturity to March 27, 2024, increasing the available commitments thereunder from €550 million to €800 million , decreasing the interest rate margin by 25 basis points and decreasing the annual commitment fee by 5 basis points to 25 basis points. Loans will now bear interest at LIBOR plus 150 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 150 basis points for loans denominated in euros. The European revolving credit facility consists of (i) a €180 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a €620 million all-borrower tranche that is available to GEBV, GDTG and Goodyear Dunlop Tires Operations S.A. Up to €175 million of swingline loans and €75 million in letters of credit are available for issuance under the all-borrower tranche. Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to €200 million . GEBV and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. GEBV’s obligations under the facility and the obligations of its subsidiaries under the related guarantees are secured by security interests in collateral that includes, subject to certain exceptions: • the capital stock of the principal subsidiaries of GEBV; and • a substantial portion of the tangible and intangible assets of GEBV and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany, including real property, equipment, inventory, contract rights, intercompany receivables and cash accounts, but excluding accounts receivable and certain cash accounts in subsidiaries that are or may become parties to securitization or factoring transactions. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GEBV and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility contains covenants similar to those in our first lien revolving credit facility, with additional limitations applicable to GEBV and its subsidiaries. In addition, under the facility, GEBV’s ratio of Consolidated Net GEBV Indebtedness to Consolidated GEBV EBITDA for a period of four consecutive fiscal quarters is not permitted to be greater than 3.0 to 1.0 at the end of any fiscal quarter. “Consolidated Net GEBV Indebtedness” and “Consolidated GEBV EBITDA” have the meanings given them in the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2018. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At December 31, 2019 and 2018, there were no borrowings and no letters of credit outstanding under the European revolving credit facility. Accounts Receivable Securitization Facilities (On-Balance Sheet) GEBV and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2023. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €30 million and not more than €450 million . For the period from October 18, 2018 through October 15, 2020, the designated maximum amount of the facility is €320 million . The facility involves an ongoing daily sale of substantially all of the trade accounts receivable of certain GEBV subsidiaries. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances. The funding commitments under the facility will expire upon the earliest to occur of: (a) September 26, 2023 , (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 15, 2020 . At December 31, 2019 , the amounts available and utilized under this program totaled $327 million ( €291 million ). At December 31, 2018 , the amounts available and utilized under this program totaled $335 million ( €293 million ). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Finance Leases. 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 December 31, 2019 and 2018 , the amount of receivables sold was $548 million and $568 million , respectively. Other Foreign Credit Facilities A Mexican subsidiary and a U.S. subsidiary have a revolving credit facility in Mexico. At December 31, 2019, the amounts available and utilized under this facility was $200 million . The facility ultimately matures in 2022, has covenants relating to the Mexican and U.S. subsidiary, and has customary representations and warranties and default provisions relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the facility. At December 31, 2018 , the subsidiaries had several financing arrangements in Mexico, and the amounts available and utilized under these facilities were $340 million and $200 million , respectively. A Chinese subsidiary has several financing arrangements in China. At December 31, 2019 and 2018, the amounts available under these facilities were $735 million and $672 million , respectively. At December 31, 2019, the amount utilized under these facilities was $313 million , of which $118 million represented notes payable and $195 million represented long term debt. At December 31, 2019, $95 million of the long term debt was due within a year. At December 31, 2018, the amount utilized under these facilities was $341 million , of which $122 million represented notes payable and $219 million represented long term debt. At December 31, 2018, $32 million of the long term debt was due within a year. The facilities contain covenants relating to the Chinese subsidiary and have customary representations and warranties and defaults relating to the Chinese subsidiary’s ability to perform its obligations under the facilities. Certain of the facilities can only be used to finance the expansion of our manufacturing facility in China and, at December 31, 2019 and 2018, the unused amounts available under these restricted facilities were $106 million and $116 million , respectively. Debt Maturities The annual aggregate maturities of our debt (excluding the impact of deferred financing fees and unamortized discounts) and finance leases for the five years subsequent to December 31, 2019 are presented below. Maturities of debt credit agreements have been reported on the basis that the commitments to lend under these agreements will be terminated effective at the end of their current terms. (In millions) 2020 2021 2022 2023 2024 U.S. $ 283 $ 1 $ 166 $ 998 $ — Foreign 628 264 227 651 87 $ 911 $ 265 $ 393 $ 1,649 $ 87 DERIVATIVE FINANCIAL INSTRUMENTS We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes. Foreign Currency Contracts We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation. The following table presents the fair values for foreign currency hedge contracts that do not meet the criteria to be accounted for as cash flow hedging instruments: December 31, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts Receivable $ 1 $ 7 Other Current Liabilities (15 ) (6 ) At December 31, 2019 and 2018 , these outstanding foreign currency derivatives had notional amounts of $1,707 million and $1,240 million , respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $22 million and $80 million in 2019 and 2018 , respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures. The following table presents fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: December 31, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts Receivable $ 9 $ 9 Other Current Liabilities (3 ) (1 ) Fair Values — Long term asset (liability): Other Assets $ 1 $ 2 Other Long Term Liabilities (1 ) — At December 31, 2019 and 2018 , these outstanding foreign currency derivatives had notional amounts of $365 million and $347 million , respectively, and primarily related to U.S. dollar denominated intercompany transactions. We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets. The following table presents the classification of changes in fair values of foreign currency contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) 2019 2018 Amount of gains (losses) deferred to AOCL (1) $ 10 $ 12 Reclassification adjustment for amounts recognized in CGS (1) (14 ) 7 (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the twelve months ended December 31, 2019 and 2018 were not material. The estimated net amount of the deferred gains at December 31, 2019 that is expected to be reclassified to earnings within the next twelve months is $3 million . The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that were recognized market makers at the time we entered into those contracts. We seek to control our credit exposure to these counterparties by diversifying across multiple counterparties, by setting counterparty credit limits based on long term credit ratings and other indicators of counterparty credit risk such as credit default swap spreads, and by monitoring the financial strength of these counterparties on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to counterparties in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a counterparty. However, the inability of a counterparty to fulfill its contractual obligations to us could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheet at December 31: Total Carrying Value in the Consolidated Balance Sheet Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) 2019 2018 2019 2018 2019 2018 2019 2018 Assets: Investments $ 11 $ 10 $ 11 $ 10 $ — $ — $ — $ — Foreign Exchange Contracts 11 18 — — 11 18 — — Total Assets at Fair Value $ 22 $ 28 $ 11 $ 10 $ 11 $ 18 $ — $ — Liabilities: Foreign Exchange Contracts $ 19 $ 7 $ — $ — $ 19 $ 7 $ — $ — Total Liabilities at Fair Value $ 19 $ 7 $ — $ — $ 19 $ 7 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at December 31: December 31, December 31, (In millions) 2019 2018 Fixed Rate Debt (1) : Carrying amount — liability $ 3,434 $ 3,609 Fair value — liability 3,558 3,443 Variable Rate Debt (1) : Carrying amount — liability $ 1,632 $ 1,707 Fair value — liability 1,632 1,689 (1) Excludes Notes Payable and Overdrafts of $348 million and $410 million at December 31, 2019 and 2018, respectively, of which $143 million and $230 million , respectively, are at fixed rates and $205 million and $180 million , respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. Long term debt with fair values of $3,808 million and $3,496 million at December 31, 2019 and 2018, respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions . |
Pension, Other Postretirement B
Pension, Other Postretirement Benefits and Savings Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension, Other Postretirement Benefits and Savings Plans | Pension, Other Postretirement Benefits and Savings Plans We provide employees with defined benefit pension or defined contribution savings plans. Our hourly U.S. pension plans are frozen and provide benefits based on length of service. The principal salaried U.S. pension plans are frozen and provide benefits based on final five-year average earnings formulas. Salaried employees who made voluntary contributions to these plans receive higher benefits. We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Substantial portions of the health care benefits for U.S. salaried retirees are not insured and are funded from operations. During 2019, we recognized settlement charges of $6 million in Other (Income) Expense primarily related to certain of our U.S. pension plans. The settlement charges resulted from total lump sum payments exceeding annual service and interest cost of the applicable plans. During 2019, we also recognized curtailment and special termination benefit charges of $5 million in Rationalizations, primarily related to the acceptance of voluntary buy-outs at our tire manufacturing facility in Gadsden, Alabama. During 2018, we recognized settlement charges of $13 million in Other (Income) Expense for our frozen U.K. pension plan. These settlement charges 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 $103 million , primarily related to this offer, were made from existing plan assets in 2018. As a result, total lump sum payments related to this plan exceeded annual interest cost for 2018. During 2018, we recognized settlement charges of $8 million in Other (Income) Expense related to certain of our U.S. pension plans. The settlement charges resulted from total lump sum payments exceeding annual service and interest cost for the applicable plans. During 2018, we increased the obligation for our U.K. pension plan by $13 million to recognize the estimated impact to our plan from an October 2018 court ruling, involving a plan with similar features to ours that was sponsored by another company, that required equal guaranteed minimum pension benefits for males and females. The increase was recognized in AOCL as prior service cost from plan amendments. The actual impact to our U.K. pension plan is still subject to the finalization of plan amendments in response to the court ruling and potential future judicial decisions. During 2018, the Brazil pension regulator approved our plan to replace certain benefits in our Brazil retiree medical plan with an increase in benefits in our Brazil pension plan. The changes were effective in the fourth quarter of 2019 and resulted in an increase to our pension obligation of $16 million and a decrease in our other postretirement benefits obligation of $14 million at December 31, 2018. The increase to the pension obligation and decrease to the other postretirement benefits obligation were recognized in AOCL as prior service cost and prior service credit, respectively. During 2017, we recognized settlement charges of $32 million , primarily related to our frozen salaried U.S. pension plan. The settlement charges resulted from total lump sum benefit payments exceeding annual interest cost. Of the total settlement charges, $19 million was recorded in Other (Income) Expense and $13 million was included in Rationalizations for employees who terminated service as a result of ongoing rationalization plans. Total benefits cost (credit) and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Benefits cost (credit): Service cost $ 3 $ 4 $ 4 $ 26 $ 28 $ 31 $ 2 $ 3 $ 4 Interest cost 173 157 160 69 69 71 11 12 13 Expected return on plan assets (223 ) (219 ) (241 ) (59 ) (70 ) (80 ) — — (1 ) Amortization of prior service cost (credit) — — — 2 — — (9 ) (8 ) (29 ) Amortization of net losses 112 112 111 29 29 32 3 4 6 Net periodic cost (credit) $ 65 $ 54 $ 34 $ 67 $ 56 $ 54 $ 7 $ 11 $ (7 ) Net curtailments/settlements/termination benefits 8 8 29 3 13 3 — — — Total benefits cost (credit) $ 73 $ 62 $ 63 $ 70 $ 69 $ 57 $ 7 $ 11 $ (7 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service cost (credit) from plan amendments $ — $ — $ — $ (2 ) $ 31 $ 3 $ — $ (16 ) $ 3 Increase (decrease) in net actuarial losses 4 14 128 201 (18 ) 25 6 (14 ) (15 ) Amortization of prior service (cost) credit in net periodic cost — — — (2 ) — — 9 8 29 Amortization of net losses in net periodic cost (112 ) (112 ) (111 ) (29 ) (30 ) (29 ) (3 ) (5 ) (6 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures (5 ) (11 ) (29 ) (3 ) (14 ) (12 ) 2 — — Total recognized in other comprehensive (income) loss before tax and minority (113 ) (109 ) (12 ) 165 (31 ) (13 ) 14 (27 ) 11 Total recognized in total benefits cost (credit) and other comprehensive (income) loss before tax and minority $ (40 ) $ (47 ) $ 51 $ 235 $ 38 $ 44 $ 21 $ (16 ) $ 4 Service cost is recorded in CGS or SAG. Other components of net periodic cost (credit) are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan. We use the fair value of pension assets in the calculation of pension expense for all plans. Total benefits cost (credit) for our other postretirement benefits was $3 million , $4 million and $(17) million for our U.S. plans in 2019 , 2018 and 2017 , respectively, and $4 million , $7 million and $10 million for our non-U.S. plans in 2019 , 2018 and 2017 , respectively. The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from AOCL into benefits cost in 2020 is approximately $110 million and $0 million , respectively, for our U.S. plans and approximately $38 million and $2 million , respectively, for our non-U.S. plans. The estimated prior service credit and net actuarial loss for the other postretirement benefit plans that will be amortized from AOCL into benefits cost in 2020 are a benefit of $9 million and expense of $4 million , respectively. The Medicare Prescription Drug Improvement and Modernization Act provides plan sponsors a federal subsidy for certain qualifying prescription drug benefits covered under the sponsor’s postretirement health care plans. Our other postretirement benefits cost is presented net of this subsidy, which is less than $1 million annually. The change in benefit obligation and plan assets for 2019 and 2018 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2019 and 2018 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Change in benefit obligation: Beginning balance $ (4,734 ) $ (5,331 ) $ (2,774 ) $ (3,109 ) $ (234 ) $ (286 ) Newly adopted plans — — (19 ) — — — Service cost — benefits earned (3 ) (4 ) (26 ) (28 ) (2 ) (3 ) Interest cost (173 ) (157 ) (69 ) (69 ) (11 ) (12 ) Plan amendments — — 2 (29 ) — 14 Actuarial (loss) gain (477 ) 315 (381 ) 40 (6 ) 19 Participant contributions — — (2 ) (2 ) (12 ) (13 ) Curtailments/settlements/termination benefits 12 25 5 113 (2 ) — Foreign currency translation — — (62 ) 177 (5 ) 15 Benefit payments 366 418 131 133 31 32 Ending balance $ (5,009 ) $ (4,734 ) $ (3,195 ) $ (2,774 ) $ (241 ) $ (234 ) Change in plan assets: Beginning balance $ 4,445 $ 4,978 $ 2,464 $ 2,806 $ 3 $ 4 Newly adopted plans — — 19 — — — Actual return on plan assets 696 (110 ) 252 4 — — Company contributions to plan assets — — 39 36 — 2 Cash funding of direct participant payments 20 17 20 21 16 16 Participant contributions — — 2 2 12 13 Settlements (15 ) (22 ) (5 ) (112 ) — — Foreign currency translation — — 80 (160 ) — — Benefit payments (366 ) (418 ) (131 ) (133 ) (31 ) (32 ) Ending balance $ 4,780 $ 4,445 $ 2,740 $ 2,464 $ — $ 3 Funded status at end of year $ (229 ) $ (289 ) $ (455 ) $ (310 ) $ (241 ) $ (231 ) Other postretirement benefits unfunded status was $106 million and $112 million for our U.S. plans at December 31, 2019 and 2018 , respectively, and $135 million and $119 million for our non-U.S. plans at December 31, 2019 and 2018 , respectively. The funded status recognized in the Consolidated Balance Sheets consists of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Noncurrent assets $ — $ — $ 237 $ 325 $ — $ — Current liabilities (16 ) (20 ) (20 ) (20 ) (16 ) (17 ) Noncurrent liabilities (213 ) (269 ) (672 ) (615 ) (225 ) (214 ) Net amount recognized $ (229 ) $ (289 ) $ (455 ) $ (310 ) $ (241 ) $ (231 ) The amounts recognized in AOCL, net of tax, consist of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Prior service (credit) cost $ (3 ) $ (3 ) $ 25 $ 31 $ (23 ) $ (32 ) Net actuarial loss 2,380 2,493 782 611 30 25 Gross amount recognized 2,377 2,490 807 642 7 (7 ) Deferred income taxes (50 ) (77 ) (135 ) (105 ) (22 ) (19 ) Minority shareholders’ equity — — (1 ) (1 ) — — Net amount recognized $ 2,327 $ 2,413 $ 671 $ 536 $ (15 ) $ (26 ) The following table presents significant weighted average assumptions used to determine benefit obligations at December 31: Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Discount rate: — U.S. 3.22 % 4.24 % 3.14 % 4.16 % — Non-U.S. 1.98 2.69 4.39 5.03 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 2.92 2.91 N/A N/A The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31: Pension Plans Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Discount rate for determining interest cost: — U.S. 3.85 % 3.09 % 3.18 % 3.79 % 2.99 % 3.02 % — Non-U.S. 2.84 2.56 2.70 6.25 6.13 5.98 Expected long term return on plan assets: — U.S. 5.25 4.58 5.08 N/A N/A N/A — Non-U.S. 2.95 3.02 3.12 N/A N/A N/A Rate of compensation increase: — U.S. N/A N/A N/A N/A N/A N/A — Non-U.S. 2.91 2.91 3.18 N/A N/A N/A For 2019 , a weighted average discount rate of 3.85% was used to determine interest cost for the U.S. pension plans. This rate was derived from spot rates along a yield curve developed from a portfolio of bonds from issuers rated AA or higher by established rating agencies as of December 31, 2018, applied to our expected benefit payment cash flows. For our non-U.S. locations, a weighted average discount rate of 2.84% was used. This rate was developed based on the nature of the liabilities and local environments, using available bond indices, yield curves, projected cash flows, and long term inflation. For 2019 , an assumed weighted average long term rate of return of 5.25% was used for the U.S. pension plans. In developing the long term rate of return, we evaluated input from our pension fund consultant on asset class return expectations, including determining the appropriate rate of return for our plans, which are primarily invested in fixed income securities. For our non-U.S. locations, an assumed weighted average long term rate of return of 2.95% was used. Input from local pension fund consultants concerning asset class return expectations and long term inflation form the basis of this assumption. The U.S. pension plan mortality assumption is based on our actual historical experience and expected future mortality improvements based on published actuarial tables. For our non-U.S. locations, mortality assumptions are based on published actuarial tables which include projections of future mortality improvements. The following table presents estimated future benefit payments from the plans as of December 31, 2019 . Benefit payments for other postretirement benefits are presented net of retiree contributions and Medicare Part D Subsidy Receipts: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. 2020 $ 437 $ 133 $ 17 2021 390 124 17 2022 373 128 16 2023 359 130 16 2024 346 138 15 2025-2029 1,623 721 72 The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2019 2018 2019 2018 All plans: Accumulated benefit obligation $ 4,994 $ 4,725 $ 3,097 $ 2,688 Plans not fully-funded: Projected benefit obligation $ 5,009 $ 4,732 $ 1,059 $ 908 Accumulated benefit obligation 4,994 4,723 991 852 Fair value of plan assets 4,780 4,443 370 281 Certain non-U.S. subsidiaries maintain unfunded pension plans consistent with local practices and requirements. At December 31, 2019 , these plans accounted for $247 million of our accumulated pension benefit obligation, $277 million of our projected pension benefit obligation, and $82 million of our AOCL adjustment. At December 31, 2018 , these plans accounted for $218 million of our accumulated pension benefit obligation, $244 million of our projected pension benefit obligation, and $59 million of our AOCL adjustment. We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2020. Assumed health care cost trend rates at December 31 follow: 2019 2018 Health care cost trend rate assumed for the next year 6.3 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 5.0 Year that the rate reaches the ultimate trend rate 2025 2025 A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2019 and the aggregate service and interest cost for the year then ended as follows: (In millions) 1% Increase 1% Decrease Accumulated other postretirement benefits obligation $ 13 $ (10 ) Aggregate service and interest cost 1 (1 ) Our pension plan weighted average investment allocation at December 31, by asset category, follows: U.S. Non-U.S. 2019 2018 2019 2018 Cash and short term securities 2 % 2 % 1 % 1 % Equity securities 6 6 3 4 Debt securities 92 92 96 94 Alternatives — — — 1 Total 100 % 100 % 100 % 100 % Our pension investment policy recognizes the long term nature of pension liabilities, and is primarily designed to offset the future impact of discount rate movements on the funded status for our plans. All assets are managed externally according to target asset allocation guidelines we have established. Manager guidelines prohibit the use of any type of investment derivative without our prior approval. Portfolio risk is controlled by having managers comply with guidelines, establishing the maximum size of any single holding in their portfolios, and using managers with different investment styles. We periodically undertake asset and liability modeling studies to determine the appropriateness of the investments. The portfolio of our U.S. pension plan assets includes holdings of global high quality and high yield fixed income securities, short term interest bearing deposits, and private equities. The target asset allocation of our U.S. pension plans is 94% in duration-matched fixed income securities and 6% in equity securities. Actual U.S. pension fund asset allocations are reviewed on a periodic basis and the pension funds are rebalanced to target ranges on an as needed basis. The portfolios of our non-U.S. pension plans include holdings of U.S. and non-U.S. equities, global high quality and high yield fixed income securities, hedge funds, currency derivatives, insurance contracts, repurchase agreements, and short term interest bearing deposits. The weighted average target asset allocation of the non-U.S. pension funds is approximately 95% fixed income and 5% equities. The fair values of our pension plan assets at December 31, 2019 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 47 $ 47 $ — $ — $ 33 $ 29 $ 4 $ — Equity Securities Common and Preferred Stock — — — — 24 24 — — Commingled Funds — — — — 36 36 — — Mutual Funds — — — — 5 5 — — Debt Securities Corporate Bonds 2,577 — 2,576 1 190 10 180 — Government Bonds 1,120 — 1,120 — 2,271 60 2,211 — Repurchase Agreements — — — — (511 ) — (511 ) — Asset Backed Securities 283 — 282 1 74 5 69 — Mutual Funds — — — — 19 9 10 — Alternatives Insurance Contracts 2 — — 2 22 — — 22 Other Investments 2 — 2 — (4 ) — (5 ) 1 Total Investments in the Fair Value Hierarchy 4,031 $ 47 $ 3,980 $ 4 2,159 $ 178 $ 1,958 $ 23 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 9 69 Mutual Funds — 11 Partnership Interests 267 — Debt Securities Mutual Funds 141 7 Commingled Funds 310 604 Short Term Securities Commingled Funds 67 4 Alternatives Commingled Funds — 6 Total Investments 4,825 2,860 Other (45 ) (120 ) Total Plan Assets $ 4,780 $ 2,740 The fair values of our pension plan assets at December 31, 2018 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 48 $ 48 $ — $ — $ 29 $ 26 $ 3 $ — Equity Securities Common and Preferred Stock — — — — 19 19 — — Commingled Funds — — — — 14 14 — — Mutual Funds — — — — 4 4 — — Debt Securities Corporate Bonds 2,344 — 2,344 — 171 17 154 — Government Bonds 968 — 968 — 2,158 62 2,096 — Repurchase Agreements — — — — (641 ) — (641 ) — Asset Backed Securities 63 — 63 — 67 5 62 — Mutual Funds — — — — 18 8 10 — Alternatives Insurance Contracts 2 — — 2 19 — — 19 Other Investments — — — — 6 — 4 2 Total Investments in the Fair Value Hierarchy 3,425 $ 48 $ 3,375 $ 2 1,864 $ 155 $ 1,688 $ 21 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 11 56 Mutual Funds — 7 Partnership Interests 247 — Debt Securities Mutual Funds 90 7 Commingled Funds 603 638 Short Term Securities Commingled Funds 59 7 Alternatives Commingled Funds — 5 Total Investments 4,435 2,584 Other 10 (120 ) Total Plan Assets $ 4,445 $ 2,464 At December 31, 2019 and 2018 , the Plans did not directly hold any of our common stock. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Investments that are measured at Net Asset Value ("NAV") as a practical expedient to estimate fair value are not classified in the fair value hierarchy. Under the practical expedient approach, the NAV is based on the fair value of the underlying investments held by each fund less its liabilities. This practical expedient would not be used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total plan assets. Valuation methodologies used for assets and liabilities measured at fair value are as follows: • Cash and Short Term Securities: Cash and cash equivalents consist of U.S. and foreign currencies. Foreign currencies are reported in U.S. dollars based on currency exchange rates readily available in active markets. Short term securities held in commingled funds are valued at the NAV of units held at year end, as determined by the investment manager. • Equity Securities: Common and preferred stock, which are held in non-U.S. companies, are valued at the closing price reported on the active market on which the individual securities are traded. Commingled funds are valued at the NAV of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the NAV of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. Partnership interests are priced based on valuations using the partnership’s available financial statements coinciding with our year end and the plan's percent ownership, adjusted for any cash transactions which occurred between the date of those financial statements and our year end. • Debt Securities: Corporate and government bonds, including asset backed securities, are valued at the closing price reported on the active market on which the individual securities are traded, or based on institutional bid evaluations using proprietary models if an active market is not available. Repurchase agreements are valued at the contract price plus accrued interest. These secured borrowings are collateralized by government bonds held by the non-U.S. plans and have maturities less than one year. Commingled funds are valued at the NAV of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the NAV of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. • Alternatives: Commingled funds are valued based on the NAV as determined by the fund manager using the most recent financial information available. Other investments primarily include derivative financial instruments, which are valued using independent pricing sources which utilize industry standard derivative valuation models. Directed insurance contracts are valued as reported by the issuer. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2019 : Non-U.S. (In millions) Insurance Contracts Other Balance, beginning of year $ 19 $ 2 Unrealized (losses) gains relating to instruments still held at the reporting date 1 — Purchases, sales, issuances and settlements (net) 2 (1 ) Balance, end of year $ 22 $ 1 The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2018 : Non-U.S. (In millions) Insurance Contracts Real Estate Equity Securities - Commingled Funds Other Balance, beginning of year $ 18 $ 4 $ 131 $ 3 Realized gains (losses) — — (1 ) — Purchases, sales, issuances and settlements (net) 2 (4 ) (128 ) (1 ) Foreign currency translation (1 ) — (2 ) — Balance, end of year $ 19 $ — $ — $ 2 Other postretirement benefits plan assets at December 31, 2018, which relate to a non-U.S. plan, are invested primarily in mutual funds, which are traded on an active market, and are considered a Level 1 investment. Savings Plans Substantially all employees in the U.S. and employees of certain non-U.S. locations are eligible to participate in a defined contribution savings plan. Expenses recognized for contributions to these plans were $110 million , $111 million and $111 million for 2019 , 2018 and 2017 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Our stock compensation plans (collectively, the “Plans”) permit the grant of stock options, stock appreciation rights (“SARs”), performance share units, restricted stock, restricted stock units and other stock-based awards to employees and directors. Our current stock compensation plan, the 2017 Performance Plan, was adopted on April 10, 2017 and expires on April 9, 2027. A total of 18 million shares of our common stock may be issued in respect of grants made under the 2017 Performance Plan. Any shares of common stock that are subject to awards of stock options or SARs will be counted as one share for each share granted for purposes of the aggregate share limit and any shares of common stock that are subject to any other awards will be counted as 2 shares for each share granted for purposes of the aggregate share limit. In addition, shares of common stock that are subject to awards issued under the 2017 Performance Plan or certain prior stock compensation plans that expire according to their terms or are forfeited, terminated, canceled or surrendered or are settled, or can be paid, only in cash, or are surrendered in payment of taxes associated with such awards (other than stock options or SARs) will be available for issuance pursuant to a new award under the 2017 Performance Plan. Shares issued under our stock compensation plans are usually issued from shares of our common stock held in treasury. Stock Options Grants of stock options and SARs (collectively referred to as “options”) under the Plans generally have a graded vesting period of four years whereby one-fourth of the awards vest on each of the first four anniversaries of the grant date, an exercise price equal to the fair market value of one share of our common stock on the date of grant (i.e., the closing market price on that date) and a contractual term of ten years . The exercise of tandem SARs cancels an equivalent number of stock options and, conversely, the exercise of stock options cancels an equivalent number of tandem SARs. Option grants are cancelled on, or 90 days following, termination of employment unless termination is due to retirement, death or disability under certain circumstances, in which case, all outstanding options vest fully and remain outstanding for a term set forth in the related grant agreement. The following table summarizes the activity related to options during 2019 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 5,580,452 $ 20.14 Options granted — — Options exercised (240,237 ) 8.07 $ 3 Options expired (73,556 ) 12.08 Options cancelled (268,638 ) 24.11 Outstanding at December 31 4,998,021 20.61 3.7 7 Vested and expected to vest at December 31 4,966,300 20.53 3.7 6 Exercisable at December 31 4,709,647 19.83 3.5 7 Available for grant at December 31 12,305,582 In addition, the aggregate intrinsic value of options exercised in 2018 and 2017 was $9 million and $18 million , respectively. Significant option groups outstanding at December 31, 2019 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/27/2017 564,976 378,284 $ 35.26 7.2 2/22/2016 549,546 459,160 29.90 6.2 2/23/2015 493,730 493,730 27.16 5.2 2/24/2014 381,617 381,617 26.44 4.2 2/28/2013 913,705 913,705 12.98 3.2 2/27/2012 729,530 729,530 12.94 2.2 2/22/2011 530,288 530,288 13.91 1.1 2/23/2010 322,387 322,387 12.74 0.1 All Other 512,242 500,946 (1 ) (1 ) 4,998,021 4,709,647 (1) Options in the “All other” category had exercise prices ranging from $9.54 to $32.72 . The weighted average exercise price for options outstanding and exercisable in that category was $20.27 and $20.00 , respectively, while the remaining weighted average contractual term was 3.7 and 3.6 , respectively. Weighted average grant date fair values of stock options and the assumptions used in estimating those fair values are as follows: 2017 Weighted average grant date fair value $ 12.05 Black-Scholes model assumptions (1) : Expected term (years) 7.20 Interest rate 2.13 % Volatility 33.63 % Dividend yield 1.13 % (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of grants of options by our Board of Directors. There were no stock options granted during 2019 or 2018. Performance Share Units Performance share units granted under the Plans are earned over a three -year period beginning January 1 of the year of grant. Total units earned for grants made in 2019, 2018 and 2017 may vary between 0% and 200% of the units granted based on the attainment of performance targets during the related three -year period and continued service. The performance targets are established by the Board of Directors. All of the units earned will be settled through the issuance of an equivalent number of shares of our common stock and are equity classified. The following table summarizes the activity related to performance share units during 2019 : Units Weighted Average Grant Date Fair Value Unvested at January 1 333,196 $ 32.30 Units granted 453,795 18.01 Units vested (123,681 ) 36.78 Units forfeited (75,310 ) 27.24 Unvested at December 31 588,000 20.98 We measure the fair value of grants of performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. Restricted Stock Units Restricted stock units granted under the Plans typically vest over a three -year period beginning on the date of grant. Restricted stock units will be settled through the issuance of an equivalent number of shares of our common stock and are equity classified. The following table summarizes the activity related to restricted stock units during 2019 : Units Weighted Average Grant Date Fair Value Unvested at January 1 1,388,433 $ 29.81 Units granted 1,883,570 19.05 Units vested and settled (280,593 ) 29.64 Units forfeited (256,935 ) 25.49 Unvested at December 31 2,734,475 23.21 We measure the fair value of grants of restricted stock units based on the closing market price of a share of our common stock on the date of the grant. Other Information Stock-based compensation expense, cash payments made to settle SARs and cash received from the exercise of stock options follows: (In millions) 2019 2018 2017 Stock-based compensation expense recognized $ 27 $ 16 $ 22 Tax benefit (7 ) (4 ) (6 ) After-tax stock-based compensation expense $ 20 $ 12 $ 16 Cash payments to settle SARs $ — $ 1 $ 1 Cash received from stock option exercises $ 2 $ 9 $ 19 As of December 31, 2019 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $36 million and is expected to be recognized over the remaining vesting period of the respective grants, through the fourth quarter of 2022. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Environmental Matters We have recorded liabilities totaling $48 million and $45 million at December 31, 2019 and 2018 , respectively, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $13 million and $10 million was included in Other Current Liabilities at December 31, 2019 and 2018 , respectively. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims. Since many of the remediation activities related to environmental matters vary substantially in duration and cost from site to site and the associated costs for each vary depending on the mix of unique site characteristics, in some cases we cannot reasonably estimate a range of possible losses. Although it is not possible to estimate with certainty the outcome of all of our environmental matters, management believes that potential losses in excess of current reserves for environmental matters, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations. Workers’ Compensation We have recorded liabilities, on a discounted basis, totaling $198 million and $224 million for anticipated costs related to workers’ compensation at December 31, 2019 and 2018 , respectively. Of these amounts, $39 million and $42 million were included in Current Liabilities as part of Compensation and Benefits at December 31, 2019 and 2018 , respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At December 31, 2019 and 2018 , the liability was discounted using a risk-free rate of return. At December 31, 2019, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $25 million . General and Product Liability and Other Litigation We have recorded liabilities totaling $293 million and $322 million , including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at December 31, 2019 and 2018 , respectively. Of these amounts, $43 million and $57 million were included in Other Current Liabilities at December 31, 2019 and 2018 , respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at December 31, 2019 , we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates. We have recorded an indemnification asset within Accounts Receivable of $3 million and within Other Assets of $22 million for Sumitomo Rubber Industries, Ltd.'s ("SRI") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions. Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 152,200 claims by defending, obtaining a 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 $554 million and $545 million through December 31, 2019 and 2018 , respectively. A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. (Dollars in millions) 2019 2018 2017 Pending claims, beginning of year 43,100 54,300 64,400 New claims filed during the year 1,500 1,300 1,900 Claims settled/dismissed (5,000 ) (12,500 ) (12,000 ) Pending claims, end of year 39,600 43,100 54,300 Payments (1) $ 22 $ 18 $ 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 $153 million and $166 million at December 31, 2019 and 2018 , respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten -year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant. We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery. We recorded an insurance receivable related to asbestos claims of $95 million and $108 million at December 31, 2019 and 2018 , respectively. We expect that approximately 60% of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $13 million was included in Current Assets as part of Accounts Receivable at both December 31, 2019 and 2018 . The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers. We believe that, at December 31, 2019 , we had approximately $555 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements. We also had additional unsettled excess level policy limits potentially applicable to such costs. In addition, we had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements. We believe that our reserve for asbestos claims, and the receivable for recoveries from insurance carriers recorded in respect of these claims, reflects reasonable and probable estimates of these amounts. The estimate of the liabilities and assets related to pending and expected future asbestos claims and insurance recoveries is subject to numerous uncertainties, including, but not limited to, changes in: • the litigation environment, • federal and state law governing the compensation of asbestos claimants, • recoverability of receivables due to potential insolvency of insurance carriers, • our approach to defending and resolving claims, and • the level of payments made to claimants from other sources, including other defendants and 524(g) trusts. As a result, with respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Recoveries may also be limited by insurer insolvencies or financial difficulties. Depending upon the nature of these characteristics or events, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us. Amiens Labor Claims Approximately 850 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €140 million ( $157 million ) against Goodyear France SAS (formerly known as 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. Binding Commitments and Guarantees At December 31, 2019 , we had binding commitments for raw materials, capital expenditures, utilities and various other types of contracts. Total commitments on contracts that extend beyond 2020 are expected to total approximately $1,600 million . In addition, we have other contractual commitments, the amounts of which cannot be estimated, pursuant to certain long term agreements under which we will purchase varying amounts of certain raw materials and finished goods at agreed upon base prices that may be subject to periodic adjustments for changes in raw material costs and market price adjustments, or in quantities that may be subject to periodic adjustments for changes in our or our suppliers' production levels. We have off-balance sheet financial guarantees and other commitments totaling approximately $74 million and $73 million at December 31, 2019 and 2018 , respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not receive a separate premium as consideration for, and do not require collateral in connection with, the issuance of these guarantees. In 2017, we issued a guarantee of approximately PLN 165 million ( $47 million ) in connection with an indirect tax assessment in EMEA. As of December 31, 2019, this guarantee amount has been increased to PLN 181 million ( $48 million ). We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of 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 December 31, 2019 , this guarantee amount has been reduced to $26 million . We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2021. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. At December 31, 2019, we had an agreement to provide a revolving loan commitment to TireHub of $50 million . No amounts were drawn on that commitment as of December 31, 2019. Indemnifications At December 31, 2019 , we were a party to various agreements under which we had assumed obligations to indemnify the counterparties from certain potential claims and losses. These agreements typically involve standard commercial activities undertaken by us in the normal course of business; the sale of assets by us; the formation or dissolution of joint venture businesses to which we had contributed assets in exchange for ownership interests; and other financial transactions. Indemnifications provided by us pursuant to these agreements relate to various matters including, among other things, environmental, tax and shareholder matters; intellectual property rights; government regulations; employment-related matters; and dealer, supplier and other commercial matters. Certain indemnifications expire from time to time, and certain other indemnifications are not subject to an expiration date. In addition, our potential liability under certain indemnifications is subject to maximum caps, while other indemnifications are not subject to caps. Although we have been subject to indemnification claims in the past, we cannot reasonably estimate the number, type and size of indemnification claims that may arise in the future. Due to these and other uncertainties associated with the indemnifications, our maximum exposure to loss under these agreements cannot be estimated. We have determined that there are no indemnifications or guarantees other than liabilities for which amounts are already recorded or reserved in our consolidated financial statements under which it is probable that we have incurred a liability. Warranty We recorded $22 million and $18 million for potential claims under warranties offered by us at December 31, 2019 and 2018 , respectively, the majority of which are recorded in Other Current Liabilities. The following table presents changes in the warranty reserve during 2019 and 2018 : (In millions) 2019 2018 Balance at January 1 $ 18 $ 17 Payments made during the period (25 ) (26 ) Expense recorded during the period 29 28 Translation adjustment — (1 ) Balance at December 31 $ 22 $ 18 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Capital Stock [Abstract] | |
Capital Stock | Capital Stock Dividends During 2019 , 2018 and 2017 we paid cash dividends of $148 million , $138 million and $110 million , respectively, on our common stock. This amount excludes dividends earned on stock based compensation plans of $2 million for 2019 and $1 million for 2018. On January 14, 2020 , the Company’s Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.16 per share on our common stock, or approximately $37 million in the aggregate. The cash dividend will be paid on March 2, 2020 to stockholders of record as of the close of business on February 3, 2020 . 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 and, from time to time, approved increases in the amount authorized to be purchased under that program. The program expired on December 31, 2019. During 2019, we did not repurchase any shares under this program. Since 2013, we repurchased 52,905,959 shares at an average price, including commissions, of $28.99 per share, or $1,534 million in the aggregate. In addition, we may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of stock options or the vesting or payment of stock awards. During 2019, we did not repurchase any shares from employees. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of Accumulated Other Comprehensive Loss The following table presents changes in AOCL by component, for the years ended December 31, 2019 , 2018 and 2017, after tax and minority interest: (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 240 (103 ) (20 ) 117 Amounts reclassified from accumulated other comprehensive loss — 104 1 105 Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications (245 ) 4 9 (232 ) Amounts reclassified from accumulated other comprehensive loss — 125 7 132 Balance at December 31, 2018 $ (1,160 ) $ (2,923 ) $ 7 $ (4,076 ) Other comprehensive income (loss) before reclassifications (1) 4 (168 ) 10 (154 ) Amounts reclassified from accumulated other comprehensive loss — 108 (14 ) 94 Balance at December 31, 2019 $ (1,156 ) $ (2,983 ) $ 3 $ (4,136 ) (1) Includes an increase to AOCL of $32 million in 2019 to adjust the 2018 obligation of our frozen U.K. pension plan. The following table presents reclassifications out of AOCL for the years ended December 31, 2019 , 2018 and 2017: Year Ended December 31, (In millions) (Income) Expense 2019 2018 2017 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Amortization of prior service cost and unrecognized gains and losses $ 137 $ 139 $ 117 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures 6 25 41 Other (Income) Expense / Rationalizations Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 143 $ 164 $ 158 Tax effect (35 ) (39 ) (54 ) United States and Foreign Taxes Net of tax $ 108 $ 125 $ 104 Goodyear Net Income (Loss) Deferred Derivative (Gains) Losses, before tax $ (14 ) $ 7 $ 2 Cost of Goods Sold Tax effect — — (1 ) United States and Foreign Taxes Net of tax $ (14 ) $ 7 $ 1 Goodyear Net Income (Loss) Total reclassifications $ 94 $ 132 $ 105 Goodyear Net Income (Loss) |
Consolidating Financial Informa
Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidating Financial Information | Consolidating Financial Information Certain of our subsidiaries have guaranteed our obligations under the $282 million outstanding principal amount of 8.75% notes due 2020, the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023, the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for: (i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations; (ii) Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes; (iii) Non-guarantor subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and (v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis. Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of 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 December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 165 $ 46 $ 697 $ — $ 908 Accounts Receivable, net 644 105 1,192 — 1,941 Accounts Receivable From Affiliates 2,176 — — (2,176 ) — Inventories 1,425 59 1,398 (31 ) 2,851 Prepaid Expenses and Other Current Assets 74 321 332 (493 ) 234 Total Current Assets 4,484 531 3,619 (2,700 ) 5,934 Goodwill 24 — 418 123 565 Intangible Assets 116 1 20 — 137 Deferred Income Taxes 1,736 19 272 (500 ) 1,527 Other Assets 468 56 2,376 (1,941 ) 959 Investments in Subsidiaries 3,564 393 — (3,957 ) — Operating Lease Right-of-Use Assets 534 11 310 — 855 Property, Plant and Equipment 2,428 443 4,358 (21 ) 7,208 Total Assets $ 13,354 $ 1,454 $ 11,373 $ (8,996 ) $ 17,185 Liabilities: Current Liabilities: Accounts Payable — Trade $ 943 $ 134 $ 1,831 $ — $ 2,908 Accounts Payable to Affiliates — 24 2,152 (2,176 ) — Compensation and Benefits 326 14 196 — 536 Other Current Liabilities 857 6 365 (494 ) 734 Notes Payable and Overdrafts — — 348 — 348 Operating Lease Liabilities due Within One Year 107 5 87 — 199 Long Term Debt and Finance Leases Due Within One Year 283 — 279 — 562 Total Current Liabilities 2,516 183 5,258 (2,670 ) 5,287 Operating Lease Liabilities 437 7 224 — 668 Long Term Debt and Finance Leases 3,313 167 1,273 — 4,753 Compensation and Benefits 485 98 751 — 1,334 Deferred Income Taxes — — 90 — 90 Other Long Term Liabilities 2,252 7 174 (1,925 ) 508 Total Liabilities 9,003 462 7,770 (4,595 ) 12,640 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,118 992 3,409 (4,401 ) 4,118 Goodyear Shareholders’ Equity 4,351 992 3,409 (4,401 ) 4,351 Minority Shareholders’ Equity — Nonredeemable — — 194 — 194 Total Shareholders’ Equity 4,351 992 3,603 (4,401 ) 4,545 Total Liabilities and Shareholders’ Equity $ 13,354 $ 1,454 $ 11,373 $ (8,996 ) $ 17,185 Condensed Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 30 $ 644 $ — $ 801 Accounts Receivable, net 672 110 1,248 — 2,030 Accounts Receivable From Affiliates 294 280 — (574 ) — Inventories 1,425 71 1,387 (27 ) 2,856 Prepaid Expenses and Other Current Assets 76 3 155 4 238 Total Current Assets 2,594 494 3,434 (597 ) 5,925 Goodwill 24 1 420 124 569 Intangible Assets 117 — 19 — 136 Deferred Income Taxes 1,422 27 395 3 1,847 Other Assets 524 48 564 — 1,136 Investments in Subsidiaries 3,758 445 — (4,203 ) — Operating Lease Right-of-Use Assets — — — — — Property, Plant and Equipment 2,482 430 4,371 (24 ) 7,259 Total Assets $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Liabilities: Current Liabilities: Accounts Payable — Trade $ 960 $ 131 $ 1,829 $ — $ 2,920 Accounts Payable to Affiliates — — 574 (574 ) — Compensation and Benefits 286 14 171 — 471 Other Current Liabilities 310 (4 ) 431 — 737 Notes Payable and Overdrafts 25 — 385 — 410 Operating Lease Liabilities due Within One Year — — — — — Long Term Debt and Finance Leases Due Within One Year 2 — 241 — 243 Total Current Liabilities 1,583 141 3,631 (574 ) 4,781 Operating Lease Liabilities — — — — — Long Term Debt and Finance Leases 3,550 167 1,393 — 5,110 Compensation and Benefits 569 93 683 — 1,345 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 355 8 108 — 471 Total Liabilities 6,057 409 5,910 (574 ) 11,802 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 232 — — — 232 Other Equity 4,632 1,036 3,087 (4,123 ) 4,632 Goodyear Shareholders’ Equity 4,864 1,036 3,087 (4,123 ) 4,864 Minority Shareholders’ Equity — Nonredeemable — — 206 — 206 Total Shareholders’ Equity 4,864 1,036 3,293 (4,123 ) 5,070 Total Liabilities and Shareholders’ Equity $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Consolidating Statements of Operations Year Ended December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,165 $ 1,403 $ 9,178 $ (3,001 ) $ 14,745 Cost of Goods Sold 5,765 1,303 7,565 (3,031 ) 11,602 Selling, Administrative and General Expense 1,101 34 1,189 (1 ) 2,323 Rationalizations 86 — 119 — 205 Interest Expense 222 28 129 (39 ) 340 Other (Income) Expense 29 15 (18 ) 72 98 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries (38 ) 23 194 (2 ) 177 United States and Foreign Taxes (289 ) 6 254 503 474 Equity in Earnings of Subsidiaries (562 ) (28 ) — 590 — Net Income (Loss) (311 ) (11 ) (60 ) 85 (297 ) Less: Minority Shareholders’ Net Income (Loss) — — 14 — 14 Goodyear Net Income (Loss) $ (311 ) $ (11 ) $ (74 ) $ 85 $ (311 ) Comprehensive Income (Loss) $ (371 ) $ (43 ) $ (193 ) $ 251 $ (356 ) Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 15 — 15 Goodyear Comprehensive Income (Loss) $ (371 ) $ (43 ) $ (208 ) $ 251 $ (371 ) Consolidating Statements of Operations Year Ended December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,382 $ 1,320 $ 9,567 $ (2,794 ) $ 15,475 Cost of Goods Sold 5,947 1,270 7,616 (2,872 ) 11,961 Selling, Administrative and General Expense 1,042 35 1,235 — 2,312 Rationalizations 3 1 40 — 44 Interest Expense 221 23 105 (28 ) 321 Other (Income) Expense (320 ) 12 30 104 (174 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 489 (21 ) 541 2 1,011 United States and Foreign Taxes 129 (6 ) 179 1 303 Equity in Earnings of Subsidiaries 333 47 — (380 ) — Net Income (Loss) 693 32 362 (379 ) 708 Less: Minority Shareholders’ Net Income (Loss) — — 15 — 15 Goodyear Net Income (Loss) $ 693 $ 32 $ 347 $ (379 ) $ 693 Comprehensive Income (Loss) $ 593 $ 28 $ 143 $ (175 ) $ 589 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (4 ) — (4 ) Goodyear Comprehensive Income (Loss) $ 593 $ 28 $ 147 $ (175 ) $ 593 Consolidating Statements of Operations Year Ended December 31, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,378 $ 1,186 $ 9,499 $ (2,686 ) $ 15,377 Cost of Goods Sold 5,774 1,125 7,537 (2,756 ) 11,680 Selling, Administrative and General Expense 980 34 1,265 — 2,279 Rationalizations 20 1 114 — 135 Interest Expense 254 10 122 (51 ) 335 Other (Income) Expense (60 ) 12 (12 ) 130 70 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 410 4 473 (9 ) 878 United States and Foreign Taxes 417 (2 ) 101 (3 ) 513 Equity in Earnings of Subsidiaries 353 39 — (392 ) — Net Income (Loss) 346 45 372 (398 ) 365 Less: Minority Shareholders’ Net Income (Loss) — — 19 — 19 Goodyear Net Income (Loss) $ 346 $ 45 $ 353 $ (398 ) $ 346 Comprehensive Income (Loss) $ 568 $ 62 $ 656 $ (683 ) $ 603 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 35 — 35 Goodyear Comprehensive Income (Loss) $ 568 $ 62 $ 621 $ (683 ) $ 568 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 3,541 $ (273 ) $ 82 $ (2,143 ) $ 1,207 Cash Flows from Investing Activities: Capital Expenditures (288 ) (40 ) (442 ) — (770 ) Asset Dispositions — — 12 — 12 Short Term Securities Acquired — — (113 ) — (113 ) Short Term Securities Redeemed — — 106 — 106 Capital Contributions and Loans Incurred (3,286 ) — (320 ) 3,606 — Capital Redemptions and Loans Paid 269 — — (269 ) — Notes Receivable (7 ) — — — (7 ) Other Transactions (18 ) — (2,110 ) 2,100 (28 ) Total Cash Flows from Investing Activities (3,330 ) (40 ) (2,867 ) 5,437 (800 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 398 — 1,482 — 1,880 Short Term Debt and Overdrafts Paid (423 ) — (1,510 ) — (1,933 ) Long Term Debt Incurred 2,981 — 2,961 — 5,942 Long Term Debt Paid (2,983 ) — (3,025 ) — (6,008 ) Common Stock Issued 1 — — — 1 Common Stock Repurchased — — — — — Common Stock Dividends Paid (148 ) — — — (148 ) Capital Contributions and Loans Incurred — 388 3,218 (3,606 ) — Capital Redemptions and Loans Paid — (57 ) (212 ) 269 — Intercompany Dividends Paid — (3 ) (40 ) 43 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions (1 ) — (14 ) — (15 ) Total Cash Flows from Financing Activities (175 ) 328 2,834 (3,294 ) (307 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 1 — — 1 Net Change in Cash, Cash Equivalents and Restricted Cash 36 16 49 — 101 Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 168 30 675 — 873 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 204 $ 46 $ 724 $ — $ 974 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 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 $ 1,771 $ 32 $ (279 ) $ (608 ) $ 916 Cash Flows from Investing Activities: Capital Expenditures (307 ) (61 ) (443 ) — (811 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (68 ) — (68 ) Short Term Securities Redeemed — — 68 — 68 Capital Contributions and Loans Incurred (1,205 ) — (283 ) 1,488 — Capital Redemptions and Loans Paid 282 88 430 (800 ) — Notes Receivable (55 ) — — — (55 ) Other Transactions 1 — (4 ) — (3 ) Total Cash Flows from Investing Activities (1,284 ) 29 (300 ) 688 (867 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 965 — 979 — 1,944 Short Term Debt and Overdrafts Paid (940 ) — (855 ) — (1,795 ) Long Term Debt Incurred 3,200 15 3,240 — 6,455 Long Term Debt Paid (3,260 ) — (3,209 ) — (6,469 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (220 ) — — — (220 ) Common Stock Dividends Paid (138 ) — — — (138 ) Capital Contributions and Loans Incurred 283 67 1,138 (1,488 ) — Capital Redemptions and Loans Paid (430 ) (77 ) (293 ) 800 — Intercompany Dividends Paid — (65 ) (543 ) 608 — Transactions with Minority Interests in Subsidiaries — — (31 ) — (31 ) Debt Related Costs and Other Transactions 16 — (9 ) — 7 Total Cash Flows from Financing Activities (520 ) (60 ) 417 (80 ) (243 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (3 ) (40 ) — (43 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (2 ) (202 ) — (237 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 168 $ 30 $ 675 $ — $ 873 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 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 $ 1,192 $ 67 $ 577 $ (678 ) $ 1,158 Cash Flows from Investing Activities: Capital Expenditures (305 ) (136 ) (442 ) 2 (881 ) Asset Dispositions 1 1 10 — 12 Short Term Securities Acquired — — (83 ) — (83 ) Short Term Securities Redeemed — — 83 — 83 Capital Contributions and Loans Incurred (79 ) — (292 ) 371 — Capital Redemptions and Loans Paid 76 — 563 (639 ) — Notes Receivable — — — — — Other Transactions (3 ) — (7 ) — (10 ) Total Cash Flows from Investing Activities (310 ) (135 ) (168 ) (266 ) (879 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 420 — 634 — 1,054 Short Term Debt and Overdrafts Paid (420 ) — (626 ) — (1,046 ) Long Term Debt Incurred 3,062 204 3,197 — 6,463 Long Term Debt Paid (3,151 ) (52 ) (3,139 ) — (6,342 ) Common Stock Issued 14 — — — 14 Common Stock Repurchased (400 ) — — — (400 ) Common Stock Dividends Paid (110 ) — — — (110 ) Capital Contributions and Loans Incurred 292 66 13 (371 ) — Capital Redemptions and Loans Paid (563 ) (48 ) (28 ) 639 — Intercompany Dividends Paid — (128 ) (548 ) 676 — Transactions with Minority Interests in Subsidiaries — — (7 ) — (7 ) Debt Related Costs and Other Transactions (35 ) — (6 ) — (41 ) Total Cash Flows from Financing Activities (891 ) 42 (510 ) 944 (415 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 3 54 — 57 Net Change in Cash, Cash Equivalents and Restricted Cash (9 ) (23 ) (47 ) — (79 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 210 55 924 — 1,189 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 201 $ 32 $ 877 $ — $ 1,110 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Year Ended December 31, (In millions) Additions Description Balance at beginning of period Charged (credited) to income Charged (credited) to AOCL Deductions from reserves Translation adjustment during period Balance at end of period 2019 Allowance for doubtful accounts $ 113 $ 13 $ — $ (14 ) (a) $ (1 ) $ 111 Valuation allowance — deferred tax assets 317 661 4 — — 982 2018 Allowance for doubtful accounts $ 116 $ 21 $ — $ (19 ) (a) $ (5 ) $ 113 Valuation allowance — deferred tax assets 318 18 (1 ) — (18 ) 317 2017 Allowance for doubtful accounts $ 101 $ 12 $ — $ (6 ) (a) $ 9 $ 116 Valuation allowance — deferred tax assets 326 (19 ) — — 11 318 Note: (a) Accounts receivable charged off. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective January 1, 2019, we adopted an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. The new guidance requires lessees to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The standards update retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases are now required to be recognized on the balance sheet. The standards update also requires quantitative and qualitative disclosures regarding key information about leasing arrangements. We elected the optional transition method and applied the new guidance at the date of adoption, without adjusting the comparative periods presented. We also elected the practical expedients permitted under the transition guidance that retain the lease classification and initial direct costs for any leases that existed prior to adoption of the standard, and we have elected to not evaluate land easements that existed as of, or expired before, adoption of the new standard. In addition, we did not reassess whether any contracts entered into prior to adoption are leases. The adoption of this standards update had a material impact on our Consolidated Balance Sheets and related disclosures. In addition to recognizing right-of-use assets and lease liabilities for our operating leases, we recorded $23 million as a cumulative effect adjustment to decrease Retained Earnings as a result of using the modified retrospective adoption approach. The adoption of this standards update did not have a material impact on our results of operations or cash flows. The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 Effective January 1, 2019, we adopted an accounting standards update, 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 hedging strategies allowed and providing relief around the documentation and assessment requirements. The adoption of this standards update did not materially impact our consolidated financial statements. Effective January 1, 2019, we adopted an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) ("AOCL") to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States. We have elected not to reclassify the income tax effects of the Tax Act from AOCL to Retained Earnings. As such, the adoption of this standards update did not impact our consolidated financial statements. Our policy is to utilize an item-by-item approach to release stranded income tax effects from AOCL. Under this approach, the stranded income tax effects are released from AOCL when the related item ceases to exist. Effective October 31, 2019, in conjunction with our annual impairment testing, we early adopted 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, not to exceed the total goodwill allocated to that reporting unit. The adoption of this standards update did not impact our consolidated financial statements. Recently Issued Accounting Standards In January 2020, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update with clarifying guidance on the application of the measurement alternative for certain equity securities and the scoping assessment for forward contracts and purchased options on certain securities. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In December 2019, the FASB issued an accounting standards update with new guidance that changes the accounting for certain income tax transactions. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The amendments in this update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis. All other amendments should be applied on a prospective basis. We are currently assessing the impact of this standards update on our consolidated financial statements. In August 2018, the 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 standards update will not have a material impact on our consolidated financial statements. In June 2016, the FASB issued an accounting standards update with new guidance on accounting for credit losses on financial instruments. The new guidance includes an impairment model for estimating credit losses that is based on expected losses, rather than incurred losses. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. |
Principles of Consolidation | The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates, including those related to: • general and product liabilities and other litigation, • workers’ compensation, • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. |
Revenue Recognition | 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 cost of goods sold ("CGS"). Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk, considering both expected future losses as well as current incurred losses. The adequacy of the allowances are assessed quarterly. |
Research and Development Costs | Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. |
Warranty | Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties we offer is on a prorated basis. Warranty reserves are based on past claims experience, sales history and other considerations. |
Environmental Cleanup Matters | We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. We determine our liability on a site by site basis and record a liability at the time when it is probable and can be reasonably estimated. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Our estimated liability is not discounted or reduced for possible recoveries from insurance carriers. |
Legal Costs | We record a liability for estimated legal and defense costs related to pending general and product liability claims, environmental matters and workers’ compensation claims. |
Advertising Costs | Costs incurred for producing and communicating advertising are generally expensed when incurred as a component of selling, administrative and general expense ("SAG"). Costs incurred under our cooperative advertising programs with dealers and franchisees are generally recorded as reductions of sales as related revenues are recognized. |
Rationalizations | We record costs for rationalization actions implemented to reduce excess and high-cost manufacturing capacity and operating and administrative costs. Associate-related costs include severance, supplemental unemployment compensation and benefits, medical benefits, pension curtailments, postretirement benefits, and other termination benefits. For ongoing benefit arrangements, a liability is recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. For one-time benefit arrangements, a liability is incurred and must be accrued at the date the plan is communicated to employees, unless they will be retained beyond a minimum retention period. In this case, the liability is calculated at the date the plan is communicated to employees and is accrued ratably over the future service period. For voluntary benefit arrangements, a liability is not estimable and is not recognized until eligible associates apply for the benefit and we accept the applications. Other costs generally include non-cancelable lease costs, contract terminations and relocation costs. A liability for these costs is recognized in the period in which the liability is incurred. Rationalization charges related to accelerated depreciation and asset impairments are recorded in CGS or SAG. |
Income Taxes | Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between carrying values of assets and liabilities for financial reporting purposes and such carrying values as measured under applicable tax laws. The effect on deferred tax assets or liabilities of a change in the tax law or tax rate is recognized in the period the change is enacted. Valuation allowances are recorded to reduce net deferred tax assets to the amount that is more likely than not to be realized. The calculation of our tax liabilities also involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. To the extent that we incur expense under the global intangible low-taxed income provisions we will treat it as a component of income tax expense in the period incurred. |
Cash and Cash Equivalents | Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Substantially all of our cash and short-term investment securities are held with investment grade rated counterparties. |
Consolidated Statements Of Cash Flows | Cash flows associated with derivative financial instruments designated as hedges of identifiable transactions or events are classified in the same category as the cash flows from the related hedged items. Cash flows associated with derivative financial instruments not designated as hedges are classified as operating activities. Bank overdrafts, if any, are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. |
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 Net Assets | In certain countries where we operate, transfers of funds into or out of such countries by way of dividends, loans or advances are generally or periodically subject to various governmental regulations. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make cash distributions. |
Inventories | Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We |
Goodwill and Other Intangible Assets | Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then an impairment loss will be recorded for the difference between the carrying value and the fair value, limited to the carrying amount of goodwill. We perform a quantitative assessment at least once every five years. |
Investments | Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable equity securities are recorded in earnings. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recorded in AOCL, net of tax. Our investment in TireHub is accounted for under the equity method. |
Property, Plant and Equipment | Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are predominately related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. |
Foreign Currency Translation | The functional currency for most subsidiaries outside the United States is the local currency. Financial statements of these subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. The U.S. dollar is used as the functional currency in countries with a history of high inflation and in countries that predominantly sell into the U.S. dollar export market. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in Other (Income) Expense. Translation adjustments are recorded in AOCL. Income taxes are generally not provided for foreign currency translation adjustments. |
Derivative Financial Instruments and Hedging Activities | To qualify for hedge accounting, hedging instruments must be designated as hedges and meet defined correlation and effectiveness criteria. These criteria require that the anticipated cash flows and/or changes in fair value of the hedging instrument substantially offset those of the position being hedged. Derivative contracts are reported at fair value on the Consolidated Balance Sheets as Accounts Receivable, Other Assets, Other Current Liabilities or Other Long Term Liabilities. Deferred gains and losses on contracts designated as cash flow hedges are recorded net of tax in AOCL. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other (Income) Expense in the current period. Gains and losses on contracts with no hedging designation are also recorded in Other (Income) Expense in the current period. We do not include premiums or discounts on forward currency contracts in our assessment of hedge effectiveness. Premiums and discounts on contracts designated as hedges are recorded in AOCL. The amounts are recognized in the Statement of Operations on a straight-line basis over the life of the contract on the same line that the hedged item is recognized in the Statement of Operations. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — |
Share-Based Compensation | We measure compensation cost arising from the grant of stock-based awards to employees at fair value and recognize such cost in income over the period during which the service is provided, usually the vesting period. We recognize compensation expense using the straight-line approach. Stock-based awards to employees include grants of performance share units, restricted stock units and stock options. We measure the fair value of grants of performance share units and restricted stock units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. We estimate the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: • Expected term represents the period of time that options granted are expected to be outstanding based on our historical experience of option exercises; • Expected volatility is measured using the weighted average of historical daily changes in the market price of our common stock over the expected term of the award and implied volatility calculated for our exchange traded options with an expiration date greater than one year; • Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and • Forfeitures are based substantially on the history of cancellations of similar awards granted in prior years. |
Earnings Per Share of Common Stock | Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share primarily reflects the dilutive impact of outstanding stock options and other stock based awards. All earnings per share amounts in these notes to the consolidated financial statements are diluted, unless otherwise noted. |
Fair Value Measurements | Valuation Hierarchy Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Valuation methodologies used for assets and liabilities measured at fair value are as follows: Investments Where quoted prices are available in an active market, investments are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics or inputs other than quoted prices that are observable for the security, and would be classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities would be classified within Level 3 of the valuation hierarchy. Derivative Financial Instruments Exchange-traded derivative financial instruments that are valued using quoted prices would be classified within Level 1 of the valuation hierarchy. Derivative financial instruments valued using internally-developed models that use as their basis readily observable market parameters are classified within Level 2 of the valuation hierarchy. Derivative financial instruments that are valued based upon models with significant unobservable market parameters, and that are normally traded less actively, would be classified within Level 3 |
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) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to our January 1, 2019 balance sheet for the adoption of the standards update was as follows: Balance at Adjustment for Balance at (In millions) December 31, 2018 New Standard January 1, 2019 Deferred Income Taxes — Asset $ 1,847 $ 7 $ 1,854 Operating Lease Right-of-Use Assets — 882 882 Property, Plant and Equipment, less Accumulated Depreciation 7,259 (16 ) 7,243 Operating Lease Liabilities due Within One Year — 204 204 Operating Lease Liabilities — 684 684 Long Term Debt and Finance Leases 5,110 14 5,124 Other Long Term Liabilities 471 (6 ) 465 Retained Earnings 6,597 (23 ) 6,574 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows: December 31, (In millions) 2019 2018 2017 Cash and Cash Equivalents $ 908 $ 801 $ 1,043 Restricted Cash 66 72 67 Total Cash, Cash Equivalents and Restricted Cash $ 974 $ 873 $ 1,110 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Net Sales From Contracts with Customers | The following table shows disaggregated net sales from contracts with customers by major source for the year ended December 31, 2019: Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 6,300 $ 4,300 $ 1,924 $ 12,524 Other tire and related sales 659 363 117 1,139 Retail services and service related sales 535 39 70 644 Chemical sales 403 — — 403 Other 25 6 4 35 Net Sales by reportable segment $ 7,922 $ 4,708 $ 2,115 $ 14,745 The following table shows disaggregated net sales from contracts with customers by major source for the year ended December 31, 2018: Europe, Middle East (In millions) Americas and Africa Asia Pacific Total Tire unit sales $ 6,381 $ 4,670 $ 2,009 $ 13,060 Other tire and related sales 656 379 127 1,162 Retail services and service related sales 564 34 77 675 Chemical sales 554 — — 554 Other 13 7 4 24 Net Sales by reportable segment $ 8,168 $ 5,090 $ 2,217 $ 15,475 |
Balance and Changes in Deferred Revenue Related to Contracts with Customers | The following table presents the balances of deferred revenue related to contracts with customers, and changes during the years ended December 31: (In millions) 2019 2018 Balance at January 1 $ 78 $ 121 Revenue deferred during period 155 116 Revenue recognized during period (179 ) (159 ) Impact of foreign currency translation — — Balance at December 31 $ 54 $ 78 |
Costs Associated with Rationa_2
Costs Associated with Rationalization Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Roll-Forward of Liability Balance | The following table presents the roll-forward of the liability balance between periods: (In millions) Associate-Related Costs Other Costs Total Balance at December 31, 2016 $ 214 $ 5 $ 219 2017 charges (1) 103 32 135 Incurred, net of foreign currency translation of $25 million and $1 million, respectively (94 ) (34 ) (128 ) Reversed to the Statement of Operations (13 ) — (13 ) Balance at December 31, 2017 $ 210 $ 3 $ 213 2018 charges (1) 47 17 64 Incurred, net of foreign currency translation of $(3) million and $0 million, respectively (158 ) (19 ) (177 ) Reversed to the Statement of Operations (19 ) — (19 ) Balance at December 31, 2018 $ 80 $ 1 $ 81 2019 charges (1) 185 19 204 Incurred, net of foreign currency translation of $(2) million and $0 million, respectively (41 ) (20 ) (61 ) Reversed to the Statement of Operations (4 ) — (4 ) Balance at December 31, 2019 $ 220 $ — $ 220 (1) Charges of $204 million , $64 million and $135 million in 2019, 2018 and 2017, respectively, exclude $5 million , $(1) million and $13 million , respectively, of benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations. |
Net Rationalization Charges Included in Income Before Income Taxes | The following table shows net rationalization charges included in Income before Income Taxes: (In millions) 2019 2018 2017 Current Year Plans Associate severance and other related costs $ 183 $ 40 $ 81 Benefit plan curtailment and special termination benefits 5 — — Other exit and non-cancelable lease costs 11 — 2 Current Year Plans - Net Charges $ 199 $ 40 $ 83 Prior Year Plans Associate severance and other related costs $ (2 ) $ (11 ) $ 9 Benefit plan curtailment and special termination benefits — (1 ) 13 Other exit and non-cancelable lease costs 8 16 30 Prior Year Plans - Net Charges 6 4 52 Total Net Charges $ 205 $ 44 $ 135 Asset write-off and accelerated depreciation charges $ 15 $ 4 $ 40 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Interest Expense | Interest expense includes interest and the amortization of deferred financing fees and debt discounts, less amounts capitalized, as follows: (In millions) 2019 2018 2017 Interest expense before capitalization $ 351 $ 335 $ 358 Capitalized interest (11 ) (14 ) (23 ) $ 340 $ 321 $ 335 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income and Expense | (In millions) 2019 2018 2017 Gain on TireHub transaction, net of transaction costs $ — $ (272 ) $ — Non-service related pension and other postretirement benefits costs 118 121 62 Interest income on indirect tax settlements in Brazil (8 ) (38 ) — Financing fees and financial instruments expense 34 36 55 Net foreign currency exchange (gains) losses (22 ) (16 ) (7 ) General and product liability expense - discontinued products 11 9 — Royalty income (19 ) (20 ) (32 ) Net (gains) losses on asset sales (16 ) (1 ) (14 ) Interest income (18 ) (16 ) (13 ) Miscellaneous expense 18 23 19 $ 98 $ (174 ) $ 70 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of Income before Income Taxes follow: (In millions) 2019 2018 2017 U.S. $ (39 ) $ 439 $ 394 Foreign 216 572 484 $ 177 $ 1,011 $ 878 |
Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax (Benefit) Expense | A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax Expense follows: (In millions) 2019 2018 2017 U.S. federal income tax expense at the statutory rate of 21% (35% for 2017) $ 37 $ 212 $ 307 Federal and state tax on accelerated royalty income transaction 334 — — Net establishment (release) of foreign valuation allowances 140 (5 ) 1 Net establishment (release) of U.S. valuation allowances (98 ) 25 5 Net foreign losses (income) with no tax due to valuation allowances 48 7 (7 ) U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction (17 ) 20 (23 ) Adjustment for foreign income taxed at different rates 16 30 (55 ) Net establishment (resolution) of uncertain tax positions 7 18 (6 ) Deferred tax impact of enacted tax rate and law changes 3 — 389 State income taxes, net of U.S. federal benefit (1 ) (1 ) 9 Provision for undistributed foreign earnings, net — (9 ) (162 ) Transition tax — 8 77 Domestic production activities deduction — (1 ) (16 ) Other 5 (1 ) (6 ) United States and Foreign Tax Expense $ 474 $ 303 $ 513 |
Components of United States and Foreign Tax (Benefit) Expense | The components of United States and Foreign Tax Expense by taxing jurisdiction, follow: (In millions) 2019 2018 2017 Current: Federal $ — $ (15 ) $ (22 ) Foreign 134 188 166 State 17 (1 ) 3 151 172 147 Deferred: Federal 133 120 389 Foreign 153 6 (8 ) State 37 5 (15 ) 323 131 366 United States and Foreign Tax Expense $ 474 $ 303 $ 513 |
Deferred Tax Assets and Liabilities | Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2019 2018 Tax loss carryforwards and credits $ 1,159 $ 1,473 Prepaid royalty income 576 — Capitalized research and development expenditures 416 404 Accrued expenses deductible as paid 347 261 Postretirement benefits and pensions 221 207 Rationalizations and other provisions 38 26 Vacation and sick pay 23 23 Deferred interest deductions — 40 Other 106 111 2,886 2,545 Valuation allowance (982 ) (317 ) Total deferred tax assets 1,904 2,228 Property basis differences (466 ) (475 ) Tax on undistributed earnings of subsidiaries (1 ) (1 ) Total net deferred tax assets $ 1,437 $ 1,752 |
Reconciliation of Unrecognized Tax Benefits | Reconciliation of Unrecognized Tax Benefits (In millions) 2019 2018 2017 Balance at January 1 $ 71 $ 52 $ 63 Increases related to prior year tax positions 24 9 2 Decreases related to prior year tax positions — (1 ) (2 ) Settlements (11 ) (2 ) (8 ) Foreign currency impact (2 ) (5 ) — Increases related to current year tax positions — 21 — Lapse of statute of limitations — (3 ) (3 ) Balance at December 31 $ 82 $ 71 $ 52 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per common share are calculated as follows: (In millions, except per share amounts) 2019 2018 2017 Earnings (loss) per share — basic: Goodyear net income (loss) $ (311 ) $ 693 $ 346 Weighted average shares outstanding 233 237 249 Earnings (loss) per common share — basic $ (1.33 ) $ 2.92 $ 1.39 Earnings (loss) per share — diluted: Goodyear net income (loss) $ (311 ) $ 693 $ 346 Weighted average shares outstanding 233 237 249 Dilutive effect of stock options and other dilutive securities — 2 4 Weighted average shares outstanding — diluted 233 239 253 Earnings (loss) per common share — diluted $ (1.33 ) $ 2.89 $ 1.37 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Reporting Information | The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income before Income Taxes: (In millions) 2019 2018 2017 Sales Americas $ 7,922 $ 8,168 $ 8,212 Europe, Middle East and Africa 4,708 5,090 4,928 Asia Pacific 2,115 2,217 2,237 Net Sales $ 14,745 $ 15,475 $ 15,377 Segment Operating Income Americas $ 550 $ 654 $ 847 Europe, Middle East and Africa 202 363 367 Asia Pacific 193 257 342 Total Segment Operating Income 945 1,274 1,556 Less: Rationalizations 205 44 135 Interest expense 340 321 335 Other (income) expense (1) 98 (174 ) 70 Asset write-offs and accelerated depreciation 15 4 40 Corporate incentive compensation plans 50 13 33 Retained expenses of divested operations 10 9 13 Other (2) 50 46 52 Income before Income Taxes $ 177 $ 1,011 $ 878 (1) Refer to Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K. (2) Primarily represents unallocated corporate costs and the elimination of $17 million , $18 million and $30 million |
Segment Assets | The following table presents segment assets at December 31: (In millions) 2019 2018 Assets Americas $ 7,606 $ 7,160 Europe, Middle East and Africa 4,724 4,809 Asia Pacific 2,711 2,602 Total Segment Assets 15,041 14,571 Corporate (1) 2,144 2,301 $ 17,185 $ 16,872 (1) Corporate includes substantially all of our U.S. net deferred tax assets. |
Geographic Information | The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets, only China was considered to be significant. (In millions) 2019 2018 2017 Net Sales United States $ 6,489 $ 6,692 $ 6,678 Germany (1) 979 1,691 1,874 Other international 7,277 7,092 6,825 $ 14,745 $ 15,475 $ 15,377 Long-Lived Assets United States $ 2,681 $ 2,734 China 722 762 Other international 3,805 3,763 $ 7,208 $ 7,259 (1) The 2018 and 2019 decrease in net sales primarily related to a business reorganization that centralized our OE sales for EMEA in Luxembourg. |
Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs | Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, in this Form 10-K, net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 5, Other (Income) Expense, in this Form 10-K, and asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2019 2018 2017 Rationalizations Americas $ 90 $ 3 $ 6 Europe, Middle East and Africa 115 36 111 Asia Pacific — 3 2 Total Segment Rationalizations $ 205 $ 42 $ 119 Corporate — 2 16 $ 205 $ 44 $ 135 (In millions) 2019 2018 2017 Net (Gains) Losses on Asset Sales Americas (1) $ — $ (275 ) $ (4 ) Europe, Middle East and Africa (16 ) 2 (10 ) Total Segment Asset Sales $ (16 ) $ (273 ) $ (14 ) (1) Americas Net (Gains) Losses on Asset Sales for the year ended December 31, 2018 includes the gain of $272 million related to the TireHub transaction, net of transaction costs. (In millions) 2019 2018 2017 Asset Write-offs and Accelerated Depreciation Americas $ 13 $ — $ — Europe, Middle East and Africa 2 4 40 Total Segment Asset Write-offs and Accelerated Depreciation $ 15 $ 4 $ 40 |
Segment Capital Expenditures, Depreciation and Amortization | The following tables present segment capital expenditures and depreciation and amortization: (In millions) 2019 2018 2017 Capital Expenditures Americas $ 369 $ 406 $ 525 Europe, Middle East and Africa 227 180 159 Asia Pacific 141 188 164 Total Segment Capital Expenditures $ 737 $ 774 $ 848 Corporate 33 37 33 $ 770 $ 811 $ 881 (In millions) 2019 2018 2017 Depreciation and Amortization Americas $ 430 $ 414 $ 398 Europe, Middle East and Africa 197 201 191 Asia Pacific 133 131 124 Total Segment Depreciation and Amortization $ 760 $ 746 $ 713 Corporate 35 32 68 $ 795 $ 778 $ 781 |
Segment Equity In Net Income of Investees Accounted For By the Equity Method | The following table presents segment equity in the net income of investees accounted for by the equity method: (In millions) 2019 2018 2017 Equity in (Income) Loss Americas $ 32 $ 11 $ (5 ) Europe, Middle East and Africa — (1 ) — Total Segment Equity in (Income) Loss $ 32 $ 10 $ (5 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | (In millions) 2019 2018 Accounts receivable $ 2,052 $ 2,143 Allowance for doubtful accounts (111 ) (113 ) $ 1,941 $ 2,030 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (In millions) 2019 2018 Raw materials $ 530 $ 569 Work in process 143 152 Finished goods 2,178 2,135 $ 2,851 $ 2,856 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reporting Unit | The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2019 : (In millions) Balance at December 31, 2018 Acquisitions Divestitures Translation Balance at December 31, 2019 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 415 2 — (6 ) 411 Asia Pacific 63 1 — (1 ) 63 $ 569 $ 3 $ — $ (7 ) $ 565 The following table presents the net carrying amount of goodwill allocated by segment, and changes during 2018 : (In millions) Balance at December 31, 2017 Acquisitions Divestitures Translation Balance at December 31, 2018 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 437 2 — (24 ) 415 Asia Pacific 67 — — (4 ) 63 $ 595 $ 2 $ — $ (28 ) $ 569 |
Indefinite-Lived Intangible Assets | The following table presents information about intangible assets: 2019 2018 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 124 $ (6 ) $ 118 $ 124 $ (6 ) $ 118 Trademarks and patents 24 (19 ) 5 23 (19 ) 4 Other intangible assets 25 (11 ) 14 23 (9 ) 14 $ 173 $ (36 ) $ 137 $ 170 $ (34 ) $ 136 (1) Includes impact of foreign currency translation. |
Finite-Lived Intangible Assets | The following table presents information about intangible assets: 2019 2018 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 124 $ (6 ) $ 118 $ 124 $ (6 ) $ 118 Trademarks and patents 24 (19 ) 5 23 (19 ) 4 Other intangible assets 25 (11 ) 14 23 (9 ) 14 $ 173 $ (36 ) $ 137 $ 170 $ (34 ) $ 136 (1) Includes impact of foreign currency translation. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2019 2018 (In millions) Owned Finance Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 425 $ 1 $ 426 $ 427 $ — $ 427 Buildings (1) 2,431 227 2,658 2,564 29 2,593 Machinery and equipment 13,624 30 13,654 13,440 43 13,483 Construction in progress 681 1 682 654 1 655 17,161 259 17,420 17,085 73 17,158 Accumulated depreciation (10,438 ) (50 ) (10,488 ) (10,128 ) (33 ) (10,161 ) 6,723 209 6,932 6,957 40 6,997 Spare parts 276 — 276 262 — 262 $ 6,999 $ 209 $ 7,208 $ 7,219 $ 40 $ 7,259 (1) Includes finance lease obligations related to our Global and Americas Headquarters at December 31, 2019 as a result of the adoption of the new lease accounting standard. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense included in Income before Income Taxes for the year ended December 31, 2019 are as follows: (In millions) 2019 Operating Lease Expense $ 292 Finance Lease Expense: Amortization of ROU assets 11 Interest on lease liabilities 21 Short Term Lease Expense 6 Variable Lease Expense 7 Sublease Income (15 ) Total Lease Expense $ 322 |
Schedule of Rent Expense | Net rental expense for the years ended December 31, 2018 and 2017 is comprised of the following: (In millions) 2018 2017 Gross rental expense $ 333 $ 332 Sublease rental income (16 ) (17 ) $ 317 $ 315 |
Direct Financing Lease, Lease Income | Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: (In millions) Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 267 Operating Cash Flows for Finance Leases 21 Financing Cash Flows for Finance Leases 7 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 197 Finance Leases 34 |
Operating Lease, Lease Income | Supplemental cash flow information related to leases for the year ended December 31, 2019 is as follows: (In millions) Cash Paid for Amounts Included in the Measurement of Lease Liabilities Operating Cash Flows for Operating Leases $ 267 Operating Cash Flows for Finance Leases 21 Financing Cash Flows for Finance Leases 7 ROU Assets Obtained in Exchange for Lease Obligations Operating Leases 197 Finance Leases 34 |
Lessee, Balance Sheet Information | Supplemental balance sheet information related to leases as of December 31, 2019 is as follows: (In millions, except lease term and discount rate) Operating Leases Operating Lease ROU Assets $ 855 Operating Lease Liabilities due Within One Year $ 199 Operating Lease Liabilities 668 Total Operating Lease Liabilities $ 867 Finance Leases Property, Plant and Equipment, at cost $ 259 Accumulated Depreciation (50 ) Property, Plant and Equipment, net $ 209 Long Term Debt and Finance Leases due Within One Year $ 6 Long Term Debt and Finance Leases 243 Total Finance Lease Liabilities $ 249 Weighted Average Remaining Lease Term Operating Leases 7.2 years Finance Leases 31.6 years Weighted Average Discount Rate Operating Leases 6.69 % Finance Leases 8.46 % |
Lessee, Operating Lease, Liability, Maturity | Future maturities of our lease liabilities, excluding subleases, as of December 31, 2019 are as follows: (In millions) Operating Leases Finance Leases 2020 $ 242 $ 25 2021 192 35 2022 141 22 2023 109 21 2024 81 20 Thereafter 359 690 Total Lease Payments 1,124 813 Less: Imputed Interest 257 564 Total $ 867 $ 249 |
Finance Lease, Liability, Maturity | Future maturities of our lease liabilities, excluding subleases, as of December 31, 2019 are as follows: (In millions) Operating Leases Finance Leases 2020 $ 242 $ 25 2021 192 35 2022 141 22 2023 109 21 2024 81 20 Thereafter 359 690 Total Lease Payments 1,124 813 Less: Imputed Interest 257 564 Total $ 867 $ 249 |
Financing Arrangements and De_2
Financing Arrangements and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Long Term Debt and Capital Leases Due Within One Year | The following table presents amounts due within one year: December 31, December 31, (In millions) 2019 2018 Chinese credit facilities $ 118 $ 122 Other domestic and foreign debt 230 288 Notes Payable and Overdrafts $ 348 $ 410 Weighted average interest rate 4.92 % 8.03 % Chinese credit facilities $ 95 $ 32 8.75% note due 2020 280 — Other domestic and foreign debt (including finance leases) 187 211 Long Term Debt and Finance Leases due Within One Year $ 562 $ 243 Weighted average interest rate 6.58 % 4.57 % Total obligations due within one year $ 910 $ 653 |
Schedule of Debt | The following table presents long term debt and finance leases, net of unamortized discounts, and interest rates: December 31, 2019 December 31, 2018 (In millions) Amount Interest Rate Amount Interest Rate Notes: 8.75% due 2020 $ 280 $ 278 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 281 286 5% due 2026 900 900 4.875% due 2027 700 700 7% due 2028 150 150 Credit Facilities: First lien revolving credit facility due 2021 — — — — Second lien term loan facility due 2025 400 3.97 % 400 4.46 % European revolving credit facility due 2024 — — — — Pan-European accounts receivable facility 327 0.98 % 335 1.01 % Mexican credit facilities 200 3.44 % 200 4.30 % Chinese credit facilities 195 4.87 % 219 5.03 % Other foreign and domestic debt (1) 661 4.02 % 884 5.35 % 5,094 5,352 Unamortized deferred financing fees (28 ) (36 ) 5,066 5,316 Finance lease obligations (2) 249 37 5,315 5,353 Less portion due within one year (562 ) (243 ) $ 4,753 $ 5,110 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions. (2) Includes finance lease obligations related to our Global and Americas Headquarters at December 31, 2019. |
Maturities of Long-term Debt and Capital Leases | The annual aggregate maturities of our debt (excluding the impact of deferred financing fees and unamortized discounts) and finance leases for the five years subsequent to December 31, 2019 are presented below. Maturities of debt credit agreements have been reported on the basis that the commitments to lend under these agreements will be terminated effective at the end of their current terms. (In millions) 2020 2021 2022 2023 2024 U.S. $ 283 $ 1 $ 166 $ 998 $ — Foreign 628 264 227 651 87 $ 911 $ 265 $ 393 $ 1,649 $ 87 |
Fair Values for Foreign Currency Contracts not Designated as Hedging Instruments | The following table presents the fair values for foreign currency hedge contracts that do not meet the criteria to be accounted for as cash flow hedging instruments: December 31, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts Receivable $ 1 $ 7 Other Current Liabilities (15 ) (6 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedges | The following table presents fair values for foreign currency hedge contracts that meet the criteria to be accounted for as cash flow hedging instruments: December 31, December 31, (In millions) 2019 2018 Fair Values — Current asset (liability): Accounts Receivable $ 9 $ 9 Other Current Liabilities (3 ) (1 ) Fair Values — Long term asset (liability): Other Assets $ 1 $ 2 Other Long Term Liabilities (1 ) — |
Classification of Changes in Fair Values of Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency contracts that meet the criteria to be accounted for as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) 2019 2018 Amount of gains (losses) deferred to AOCL (1) $ 10 $ 12 Reclassification adjustment for amounts recognized in CGS (1) (14 ) 7 (1) Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the twelve months ended December 31, 2019 and 2018 were not material. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities at Fair Value | The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheet at December 31: Total Carrying Value in the Consolidated Balance Sheet Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) 2019 2018 2019 2018 2019 2018 2019 2018 Assets: Investments $ 11 $ 10 $ 11 $ 10 $ — $ — $ — $ — Foreign Exchange Contracts 11 18 — — 11 18 — — Total Assets at Fair Value $ 22 $ 28 $ 11 $ 10 $ 11 $ 18 $ — $ — Liabilities: Foreign Exchange Contracts $ 19 $ 7 $ — $ — $ 19 $ 7 $ — $ — Total Liabilities at Fair Value $ 19 $ 7 $ — $ — $ 19 $ 7 $ — $ — |
Supplemental Fair Value Information | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at December 31: December 31, December 31, (In millions) 2019 2018 Fixed Rate Debt (1) : Carrying amount — liability $ 3,434 $ 3,609 Fair value — liability 3,558 3,443 Variable Rate Debt (1) : Carrying amount — liability $ 1,632 $ 1,707 Fair value — liability 1,632 1,689 (1) Excludes Notes Payable and Overdrafts of $348 million and $410 million at December 31, 2019 and 2018, respectively, of which $143 million and $230 million , respectively, are at fixed rates and $205 million and $180 million , respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities. |
Pension, Other Postretirement_2
Pension, Other Postretirement Benefits and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss | Total benefits cost (credit) and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2017 2019 2018 2017 2019 2018 2017 Benefits cost (credit): Service cost $ 3 $ 4 $ 4 $ 26 $ 28 $ 31 $ 2 $ 3 $ 4 Interest cost 173 157 160 69 69 71 11 12 13 Expected return on plan assets (223 ) (219 ) (241 ) (59 ) (70 ) (80 ) — — (1 ) Amortization of prior service cost (credit) — — — 2 — — (9 ) (8 ) (29 ) Amortization of net losses 112 112 111 29 29 32 3 4 6 Net periodic cost (credit) $ 65 $ 54 $ 34 $ 67 $ 56 $ 54 $ 7 $ 11 $ (7 ) Net curtailments/settlements/termination benefits 8 8 29 3 13 3 — — — Total benefits cost (credit) $ 73 $ 62 $ 63 $ 70 $ 69 $ 57 $ 7 $ 11 $ (7 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service cost (credit) from plan amendments $ — $ — $ — $ (2 ) $ 31 $ 3 $ — $ (16 ) $ 3 Increase (decrease) in net actuarial losses 4 14 128 201 (18 ) 25 6 (14 ) (15 ) Amortization of prior service (cost) credit in net periodic cost — — — (2 ) — — 9 8 29 Amortization of net losses in net periodic cost (112 ) (112 ) (111 ) (29 ) (30 ) (29 ) (3 ) (5 ) (6 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures (5 ) (11 ) (29 ) (3 ) (14 ) (12 ) 2 — — Total recognized in other comprehensive (income) loss before tax and minority (113 ) (109 ) (12 ) 165 (31 ) (13 ) 14 (27 ) 11 Total recognized in total benefits cost (credit) and other comprehensive (income) loss before tax and minority $ (40 ) $ (47 ) $ 51 $ 235 $ 38 $ 44 $ 21 $ (16 ) $ 4 |
Changes in Benefit Obligation and Plan Assets | The change in benefit obligation and plan assets for 2019 and 2018 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2019 and 2018 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Change in benefit obligation: Beginning balance $ (4,734 ) $ (5,331 ) $ (2,774 ) $ (3,109 ) $ (234 ) $ (286 ) Newly adopted plans — — (19 ) — — — Service cost — benefits earned (3 ) (4 ) (26 ) (28 ) (2 ) (3 ) Interest cost (173 ) (157 ) (69 ) (69 ) (11 ) (12 ) Plan amendments — — 2 (29 ) — 14 Actuarial (loss) gain (477 ) 315 (381 ) 40 (6 ) 19 Participant contributions — — (2 ) (2 ) (12 ) (13 ) Curtailments/settlements/termination benefits 12 25 5 113 (2 ) — Foreign currency translation — — (62 ) 177 (5 ) 15 Benefit payments 366 418 131 133 31 32 Ending balance $ (5,009 ) $ (4,734 ) $ (3,195 ) $ (2,774 ) $ (241 ) $ (234 ) Change in plan assets: Beginning balance $ 4,445 $ 4,978 $ 2,464 $ 2,806 $ 3 $ 4 Newly adopted plans — — 19 — — — Actual return on plan assets 696 (110 ) 252 4 — — Company contributions to plan assets — — 39 36 — 2 Cash funding of direct participant payments 20 17 20 21 16 16 Participant contributions — — 2 2 12 13 Settlements (15 ) (22 ) (5 ) (112 ) — — Foreign currency translation — — 80 (160 ) — — Benefit payments (366 ) (418 ) (131 ) (133 ) (31 ) (32 ) Ending balance $ 4,780 $ 4,445 $ 2,740 $ 2,464 $ — $ 3 Funded status at end of year $ (229 ) $ (289 ) $ (455 ) $ (310 ) $ (241 ) $ (231 ) |
Funded Status Recognized in the Consolidated Balance Sheets | The funded status recognized in the Consolidated Balance Sheets consists of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Noncurrent assets $ — $ — $ 237 $ 325 $ — $ — Current liabilities (16 ) (20 ) (20 ) (20 ) (16 ) (17 ) Noncurrent liabilities (213 ) (269 ) (672 ) (615 ) (225 ) (214 ) Net amount recognized $ (229 ) $ (289 ) $ (455 ) $ (310 ) $ (241 ) $ (231 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss | The amounts recognized in AOCL, net of tax, consist of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2019 2018 2019 2018 2019 2018 Prior service (credit) cost $ (3 ) $ (3 ) $ 25 $ 31 $ (23 ) $ (32 ) Net actuarial loss 2,380 2,493 782 611 30 25 Gross amount recognized 2,377 2,490 807 642 7 (7 ) Deferred income taxes (50 ) (77 ) (135 ) (105 ) (22 ) (19 ) Minority shareholders’ equity — — (1 ) (1 ) — — Net amount recognized $ 2,327 $ 2,413 $ 671 $ 536 $ (15 ) $ (26 ) |
Weighted Average Assumptions Used | The following table presents significant weighted average assumptions used to determine benefit obligations at December 31: Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Discount rate: — U.S. 3.22 % 4.24 % 3.14 % 4.16 % — Non-U.S. 1.98 2.69 4.39 5.03 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 2.92 2.91 N/A N/A The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31: Pension Plans Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Discount rate for determining interest cost: — U.S. 3.85 % 3.09 % 3.18 % 3.79 % 2.99 % 3.02 % — Non-U.S. 2.84 2.56 2.70 6.25 6.13 5.98 Expected long term return on plan assets: — U.S. 5.25 4.58 5.08 N/A N/A N/A — Non-U.S. 2.95 3.02 3.12 N/A N/A N/A Rate of compensation increase: — U.S. N/A N/A N/A N/A N/A N/A — Non-U.S. 2.91 2.91 3.18 N/A N/A N/A |
Estimated Future Benefit Payments | The following table presents estimated future benefit payments from the plans as of December 31, 2019 . Benefit payments for other postretirement benefits are presented net of retiree contributions and Medicare Part D Subsidy Receipts: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. 2020 $ 437 $ 133 $ 17 2021 390 124 17 2022 373 128 16 2023 359 130 16 2024 346 138 15 2025-2029 1,623 721 72 |
Selected Pension Plan Information | The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2019 2018 2019 2018 All plans: Accumulated benefit obligation $ 4,994 $ 4,725 $ 3,097 $ 2,688 Plans not fully-funded: Projected benefit obligation $ 5,009 $ 4,732 $ 1,059 $ 908 Accumulated benefit obligation 4,994 4,723 991 852 Fair value of plan assets 4,780 4,443 370 281 |
Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31 follow: 2019 2018 Health care cost trend rate assumed for the next year 6.3 % 6.5 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.0 5.0 Year that the rate reaches the ultimate trend rate 2025 2025 |
Effect of 1% Change in Assumed Health Care Cost Trend Rates | A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2019 and the aggregate service and interest cost for the year then ended as follows: (In millions) 1% Increase 1% Decrease Accumulated other postretirement benefits obligation $ 13 $ (10 ) Aggregate service and interest cost 1 (1 ) |
Pension Plan Weighted Average Investment Allocation | Our pension plan weighted average investment allocation at December 31, by asset category, follows: U.S. Non-U.S. 2019 2018 2019 2018 Cash and short term securities 2 % 2 % 1 % 1 % Equity securities 6 6 3 4 Debt securities 92 92 96 94 Alternatives — — — 1 Total 100 % 100 % 100 % 100 % |
Fair Values of Pension Plan Assets | The fair values of our pension plan assets at December 31, 2019 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 47 $ 47 $ — $ — $ 33 $ 29 $ 4 $ — Equity Securities Common and Preferred Stock — — — — 24 24 — — Commingled Funds — — — — 36 36 — — Mutual Funds — — — — 5 5 — — Debt Securities Corporate Bonds 2,577 — 2,576 1 190 10 180 — Government Bonds 1,120 — 1,120 — 2,271 60 2,211 — Repurchase Agreements — — — — (511 ) — (511 ) — Asset Backed Securities 283 — 282 1 74 5 69 — Mutual Funds — — — — 19 9 10 — Alternatives Insurance Contracts 2 — — 2 22 — — 22 Other Investments 2 — 2 — (4 ) — (5 ) 1 Total Investments in the Fair Value Hierarchy 4,031 $ 47 $ 3,980 $ 4 2,159 $ 178 $ 1,958 $ 23 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 9 69 Mutual Funds — 11 Partnership Interests 267 — Debt Securities Mutual Funds 141 7 Commingled Funds 310 604 Short Term Securities Commingled Funds 67 4 Alternatives Commingled Funds — 6 Total Investments 4,825 2,860 Other (45 ) (120 ) Total Plan Assets $ 4,780 $ 2,740 The fair values of our pension plan assets at December 31, 2018 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 48 $ 48 $ — $ — $ 29 $ 26 $ 3 $ — Equity Securities Common and Preferred Stock — — — — 19 19 — — Commingled Funds — — — — 14 14 — — Mutual Funds — — — — 4 4 — — Debt Securities Corporate Bonds 2,344 — 2,344 — 171 17 154 — Government Bonds 968 — 968 — 2,158 62 2,096 — Repurchase Agreements — — — — (641 ) — (641 ) — Asset Backed Securities 63 — 63 — 67 5 62 — Mutual Funds — — — — 18 8 10 — Alternatives Insurance Contracts 2 — — 2 19 — — 19 Other Investments — — — — 6 — 4 2 Total Investments in the Fair Value Hierarchy 3,425 $ 48 $ 3,375 $ 2 1,864 $ 155 $ 1,688 $ 21 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 11 56 Mutual Funds — 7 Partnership Interests 247 — Debt Securities Mutual Funds 90 7 Commingled Funds 603 638 Short Term Securities Commingled Funds 59 7 Alternatives Commingled Funds — 5 Total Investments 4,435 2,584 Other 10 (120 ) Total Plan Assets $ 4,445 $ 2,464 |
Changes in Fair Value of Pension Plan Investments Classified as Level 3 | The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2019 : Non-U.S. (In millions) Insurance Contracts Other Balance, beginning of year $ 19 $ 2 Unrealized (losses) gains relating to instruments still held at the reporting date 1 — Purchases, sales, issuances and settlements (net) 2 (1 ) Balance, end of year $ 22 $ 1 The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2018 : Non-U.S. (In millions) Insurance Contracts Real Estate Equity Securities - Commingled Funds Other Balance, beginning of year $ 18 $ 4 $ 131 $ 3 Realized gains (losses) — — (1 ) — Purchases, sales, issuances and settlements (net) 2 (4 ) (128 ) (1 ) Foreign currency translation (1 ) — (2 ) — Balance, end of year $ 19 $ — $ — $ 2 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Summary of Stock Option Activity | The following table summarizes the activity related to options during 2019 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 5,580,452 $ 20.14 Options granted — — Options exercised (240,237 ) 8.07 $ 3 Options expired (73,556 ) 12.08 Options cancelled (268,638 ) 24.11 Outstanding at December 31 4,998,021 20.61 3.7 7 Vested and expected to vest at December 31 4,966,300 20.53 3.7 6 Exercisable at December 31 4,709,647 19.83 3.5 7 Available for grant at December 31 12,305,582 |
Significant Options Groups Outstanding | Significant option groups outstanding at December 31, 2019 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/27/2017 564,976 378,284 $ 35.26 7.2 2/22/2016 549,546 459,160 29.90 6.2 2/23/2015 493,730 493,730 27.16 5.2 2/24/2014 381,617 381,617 26.44 4.2 2/28/2013 913,705 913,705 12.98 3.2 2/27/2012 729,530 729,530 12.94 2.2 2/22/2011 530,288 530,288 13.91 1.1 2/23/2010 322,387 322,387 12.74 0.1 All Other 512,242 500,946 (1 ) (1 ) 4,998,021 4,709,647 (1) Options in the “All other” category had exercise prices ranging from $9.54 to $32.72 . The weighted average exercise price for options outstanding and exercisable in that category was $20.27 and $20.00 , respectively, while the remaining weighted average contractual term was 3.7 and 3.6 , respectively. |
Weighted Average Grant Date Fair Values of Stock Options and the Assumptions Used | Weighted average grant date fair values of stock options and the assumptions used in estimating those fair values are as follows: 2017 Weighted average grant date fair value $ 12.05 Black-Scholes model assumptions (1) : Expected term (years) 7.20 Interest rate 2.13 % Volatility 33.63 % Dividend yield 1.13 % (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of grants of options by our Board of Directors. There were no stock options granted during 2019 or 2018. |
Stock-based Compensation Expense and Cash Activity | Stock-based compensation expense, cash payments made to settle SARs and cash received from the exercise of stock options follows: (In millions) 2019 2018 2017 Stock-based compensation expense recognized $ 27 $ 16 $ 22 Tax benefit (7 ) (4 ) (6 ) After-tax stock-based compensation expense $ 20 $ 12 $ 16 Cash payments to settle SARs $ — $ 1 $ 1 Cash received from stock option exercises $ 2 $ 9 $ 19 |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested Share Activity | The following table summarizes the activity related to performance share units during 2019 : Units Weighted Average Grant Date Fair Value Unvested at January 1 333,196 $ 32.30 Units granted 453,795 18.01 Units vested (123,681 ) 36.78 Units forfeited (75,310 ) 27.24 Unvested at December 31 588,000 20.98 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested Share Activity | The following table summarizes the activity related to restricted stock units during 2019 : Units Weighted Average Grant Date Fair Value Unvested at January 1 1,388,433 $ 29.81 Units granted 1,883,570 19.05 Units vested and settled (280,593 ) 29.64 Units forfeited (256,935 ) 25.49 Unvested at December 31 2,734,475 23.21 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Recent Approximate Asbestos Claims Activity | A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly. (Dollars in millions) 2019 2018 2017 Pending claims, beginning of year 43,100 54,300 64,400 New claims filed during the year 1,500 1,300 1,900 Claims settled/dismissed (5,000 ) (12,500 ) (12,000 ) Pending claims, end of year 39,600 43,100 54,300 Payments (1) $ 22 $ 18 $ 16 (1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution. |
Changes in the Warranty Reserve | The following table presents changes in the warranty reserve during 2019 and 2018 : (In millions) 2019 2018 Balance at January 1 $ 18 $ 17 Payments made during the period (25 ) (26 ) Expense recorded during the period 29 28 Translation adjustment — (1 ) Balance at December 31 $ 22 $ 18 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following table presents changes in AOCL by component, for the years ended December 31, 2019 , 2018 and 2017, after tax and minority interest: (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 240 (103 ) (20 ) 117 Amounts reclassified from accumulated other comprehensive loss — 104 1 105 Balance at December 31, 2017 $ (915 ) $ (3,052 ) $ (9 ) $ (3,976 ) Other comprehensive income (loss) before reclassifications (245 ) 4 9 (232 ) Amounts reclassified from accumulated other comprehensive loss — 125 7 132 Balance at December 31, 2018 $ (1,160 ) $ (2,923 ) $ 7 $ (4,076 ) Other comprehensive income (loss) before reclassifications (1) 4 (168 ) 10 (154 ) Amounts reclassified from accumulated other comprehensive loss — 108 (14 ) 94 Balance at December 31, 2019 $ (1,156 ) $ (2,983 ) $ 3 $ (4,136 ) (1) Includes an increase to AOCL of $32 million in 2019 to adjust the 2018 obligation of our frozen U.K. pension plan. |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL for the years ended December 31, 2019 , 2018 and 2017: Year Ended December 31, (In millions) (Income) Expense 2019 2018 2017 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Amortization of prior service cost and unrecognized gains and losses $ 137 $ 139 $ 117 Other (Income) Expense Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures 6 25 41 Other (Income) Expense / Rationalizations Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 143 $ 164 $ 158 Tax effect (35 ) (39 ) (54 ) United States and Foreign Taxes Net of tax $ 108 $ 125 $ 104 Goodyear Net Income (Loss) Deferred Derivative (Gains) Losses, before tax $ (14 ) $ 7 $ 2 Cost of Goods Sold Tax effect — — (1 ) United States and Foreign Taxes Net of tax $ (14 ) $ 7 $ 1 Goodyear Net Income (Loss) Total reclassifications $ 94 $ 132 $ 105 Goodyear Net Income (Loss) |
Consolidating Financial Infor_2
Consolidating Financial Information Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 165 $ 46 $ 697 $ — $ 908 Accounts Receivable, net 644 105 1,192 — 1,941 Accounts Receivable From Affiliates 2,176 — — (2,176 ) — Inventories 1,425 59 1,398 (31 ) 2,851 Prepaid Expenses and Other Current Assets 74 321 332 (493 ) 234 Total Current Assets 4,484 531 3,619 (2,700 ) 5,934 Goodwill 24 — 418 123 565 Intangible Assets 116 1 20 — 137 Deferred Income Taxes 1,736 19 272 (500 ) 1,527 Other Assets 468 56 2,376 (1,941 ) 959 Investments in Subsidiaries 3,564 393 — (3,957 ) — Operating Lease Right-of-Use Assets 534 11 310 — 855 Property, Plant and Equipment 2,428 443 4,358 (21 ) 7,208 Total Assets $ 13,354 $ 1,454 $ 11,373 $ (8,996 ) $ 17,185 Liabilities: Current Liabilities: Accounts Payable — Trade $ 943 $ 134 $ 1,831 $ — $ 2,908 Accounts Payable to Affiliates — 24 2,152 (2,176 ) — Compensation and Benefits 326 14 196 — 536 Other Current Liabilities 857 6 365 (494 ) 734 Notes Payable and Overdrafts — — 348 — 348 Operating Lease Liabilities due Within One Year 107 5 87 — 199 Long Term Debt and Finance Leases Due Within One Year 283 — 279 — 562 Total Current Liabilities 2,516 183 5,258 (2,670 ) 5,287 Operating Lease Liabilities 437 7 224 — 668 Long Term Debt and Finance Leases 3,313 167 1,273 — 4,753 Compensation and Benefits 485 98 751 — 1,334 Deferred Income Taxes — — 90 — 90 Other Long Term Liabilities 2,252 7 174 (1,925 ) 508 Total Liabilities 9,003 462 7,770 (4,595 ) 12,640 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 233 — — — 233 Other Equity 4,118 992 3,409 (4,401 ) 4,118 Goodyear Shareholders’ Equity 4,351 992 3,409 (4,401 ) 4,351 Minority Shareholders’ Equity — Nonredeemable — — 194 — 194 Total Shareholders’ Equity 4,351 992 3,603 (4,401 ) 4,545 Total Liabilities and Shareholders’ Equity $ 13,354 $ 1,454 $ 11,373 $ (8,996 ) $ 17,185 Condensed Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 127 $ 30 $ 644 $ — $ 801 Accounts Receivable, net 672 110 1,248 — 2,030 Accounts Receivable From Affiliates 294 280 — (574 ) — Inventories 1,425 71 1,387 (27 ) 2,856 Prepaid Expenses and Other Current Assets 76 3 155 4 238 Total Current Assets 2,594 494 3,434 (597 ) 5,925 Goodwill 24 1 420 124 569 Intangible Assets 117 — 19 — 136 Deferred Income Taxes 1,422 27 395 3 1,847 Other Assets 524 48 564 — 1,136 Investments in Subsidiaries 3,758 445 — (4,203 ) — Operating Lease Right-of-Use Assets — — — — — Property, Plant and Equipment 2,482 430 4,371 (24 ) 7,259 Total Assets $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 Liabilities: Current Liabilities: Accounts Payable — Trade $ 960 $ 131 $ 1,829 $ — $ 2,920 Accounts Payable to Affiliates — — 574 (574 ) — Compensation and Benefits 286 14 171 — 471 Other Current Liabilities 310 (4 ) 431 — 737 Notes Payable and Overdrafts 25 — 385 — 410 Operating Lease Liabilities due Within One Year — — — — — Long Term Debt and Finance Leases Due Within One Year 2 — 241 — 243 Total Current Liabilities 1,583 141 3,631 (574 ) 4,781 Operating Lease Liabilities — — — — — Long Term Debt and Finance Leases 3,550 167 1,393 — 5,110 Compensation and Benefits 569 93 683 — 1,345 Deferred Income Taxes — — 95 — 95 Other Long Term Liabilities 355 8 108 — 471 Total Liabilities 6,057 409 5,910 (574 ) 11,802 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 232 — — — 232 Other Equity 4,632 1,036 3,087 (4,123 ) 4,632 Goodyear Shareholders’ Equity 4,864 1,036 3,087 (4,123 ) 4,864 Minority Shareholders’ Equity — Nonredeemable — — 206 — 206 Total Shareholders’ Equity 4,864 1,036 3,293 (4,123 ) 5,070 Total Liabilities and Shareholders’ Equity $ 10,921 $ 1,445 $ 9,203 $ (4,697 ) $ 16,872 |
Consolidating Statements of Operations | Consolidating Statements of Operations Year Ended December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,165 $ 1,403 $ 9,178 $ (3,001 ) $ 14,745 Cost of Goods Sold 5,765 1,303 7,565 (3,031 ) 11,602 Selling, Administrative and General Expense 1,101 34 1,189 (1 ) 2,323 Rationalizations 86 — 119 — 205 Interest Expense 222 28 129 (39 ) 340 Other (Income) Expense 29 15 (18 ) 72 98 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries (38 ) 23 194 (2 ) 177 United States and Foreign Taxes (289 ) 6 254 503 474 Equity in Earnings of Subsidiaries (562 ) (28 ) — 590 — Net Income (Loss) (311 ) (11 ) (60 ) 85 (297 ) Less: Minority Shareholders’ Net Income (Loss) — — 14 — 14 Goodyear Net Income (Loss) $ (311 ) $ (11 ) $ (74 ) $ 85 $ (311 ) Comprehensive Income (Loss) $ (371 ) $ (43 ) $ (193 ) $ 251 $ (356 ) Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 15 — 15 Goodyear Comprehensive Income (Loss) $ (371 ) $ (43 ) $ (208 ) $ 251 $ (371 ) Consolidating Statements of Operations Year Ended December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,382 $ 1,320 $ 9,567 $ (2,794 ) $ 15,475 Cost of Goods Sold 5,947 1,270 7,616 (2,872 ) 11,961 Selling, Administrative and General Expense 1,042 35 1,235 — 2,312 Rationalizations 3 1 40 — 44 Interest Expense 221 23 105 (28 ) 321 Other (Income) Expense (320 ) 12 30 104 (174 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 489 (21 ) 541 2 1,011 United States and Foreign Taxes 129 (6 ) 179 1 303 Equity in Earnings of Subsidiaries 333 47 — (380 ) — Net Income (Loss) 693 32 362 (379 ) 708 Less: Minority Shareholders’ Net Income (Loss) — — 15 — 15 Goodyear Net Income (Loss) $ 693 $ 32 $ 347 $ (379 ) $ 693 Comprehensive Income (Loss) $ 593 $ 28 $ 143 $ (175 ) $ 589 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — (4 ) — (4 ) Goodyear Comprehensive Income (Loss) $ 593 $ 28 $ 147 $ (175 ) $ 593 Consolidating Statements of Operations Year Ended December 31, 2017 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,378 $ 1,186 $ 9,499 $ (2,686 ) $ 15,377 Cost of Goods Sold 5,774 1,125 7,537 (2,756 ) 11,680 Selling, Administrative and General Expense 980 34 1,265 — 2,279 Rationalizations 20 1 114 — 135 Interest Expense 254 10 122 (51 ) 335 Other (Income) Expense (60 ) 12 (12 ) 130 70 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 410 4 473 (9 ) 878 United States and Foreign Taxes 417 (2 ) 101 (3 ) 513 Equity in Earnings of Subsidiaries 353 39 — (392 ) — Net Income (Loss) 346 45 372 (398 ) 365 Less: Minority Shareholders’ Net Income (Loss) — — 19 — 19 Goodyear Net Income (Loss) $ 346 $ 45 $ 353 $ (398 ) $ 346 Comprehensive Income (Loss) $ 568 $ 62 $ 656 $ (683 ) $ 603 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 35 — 35 Goodyear Comprehensive Income (Loss) $ 568 $ 62 $ 621 $ (683 ) $ 568 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 3,541 $ (273 ) $ 82 $ (2,143 ) $ 1,207 Cash Flows from Investing Activities: Capital Expenditures (288 ) (40 ) (442 ) — (770 ) Asset Dispositions — — 12 — 12 Short Term Securities Acquired — — (113 ) — (113 ) Short Term Securities Redeemed — — 106 — 106 Capital Contributions and Loans Incurred (3,286 ) — (320 ) 3,606 — Capital Redemptions and Loans Paid 269 — — (269 ) — Notes Receivable (7 ) — — — (7 ) Other Transactions (18 ) — (2,110 ) 2,100 (28 ) Total Cash Flows from Investing Activities (3,330 ) (40 ) (2,867 ) 5,437 (800 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 398 — 1,482 — 1,880 Short Term Debt and Overdrafts Paid (423 ) — (1,510 ) — (1,933 ) Long Term Debt Incurred 2,981 — 2,961 — 5,942 Long Term Debt Paid (2,983 ) — (3,025 ) — (6,008 ) Common Stock Issued 1 — — — 1 Common Stock Repurchased — — — — — Common Stock Dividends Paid (148 ) — — — (148 ) Capital Contributions and Loans Incurred — 388 3,218 (3,606 ) — Capital Redemptions and Loans Paid — (57 ) (212 ) 269 — Intercompany Dividends Paid — (3 ) (40 ) 43 — Transactions with Minority Interests in Subsidiaries — — (26 ) — (26 ) Debt Related Costs and Other Transactions (1 ) — (14 ) — (15 ) Total Cash Flows from Financing Activities (175 ) 328 2,834 (3,294 ) (307 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 1 — — 1 Net Change in Cash, Cash Equivalents and Restricted Cash 36 16 49 — 101 Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 168 30 675 — 873 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 204 $ 46 $ 724 $ — $ 974 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 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 $ 1,771 $ 32 $ (279 ) $ (608 ) $ 916 Cash Flows from Investing Activities: Capital Expenditures (307 ) (61 ) (443 ) — (811 ) Asset Dispositions — 2 — — 2 Short Term Securities Acquired — — (68 ) — (68 ) Short Term Securities Redeemed — — 68 — 68 Capital Contributions and Loans Incurred (1,205 ) — (283 ) 1,488 — Capital Redemptions and Loans Paid 282 88 430 (800 ) — Notes Receivable (55 ) — — — (55 ) Other Transactions 1 — (4 ) — (3 ) Total Cash Flows from Investing Activities (1,284 ) 29 (300 ) 688 (867 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 965 — 979 — 1,944 Short Term Debt and Overdrafts Paid (940 ) — (855 ) — (1,795 ) Long Term Debt Incurred 3,200 15 3,240 — 6,455 Long Term Debt Paid (3,260 ) — (3,209 ) — (6,469 ) Common Stock Issued 4 — — — 4 Common Stock Repurchased (220 ) — — — (220 ) Common Stock Dividends Paid (138 ) — — — (138 ) Capital Contributions and Loans Incurred 283 67 1,138 (1,488 ) — Capital Redemptions and Loans Paid (430 ) (77 ) (293 ) 800 — Intercompany Dividends Paid — (65 ) (543 ) 608 — Transactions with Minority Interests in Subsidiaries — — (31 ) — (31 ) Debt Related Costs and Other Transactions 16 — (9 ) — 7 Total Cash Flows from Financing Activities (520 ) (60 ) 417 (80 ) (243 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — (3 ) (40 ) — (43 ) Net Change in Cash, Cash Equivalents and Restricted Cash (33 ) (2 ) (202 ) — (237 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 201 32 877 — 1,110 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 168 $ 30 $ 675 $ — $ 873 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 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 $ 1,192 $ 67 $ 577 $ (678 ) $ 1,158 Cash Flows from Investing Activities: Capital Expenditures (305 ) (136 ) (442 ) 2 (881 ) Asset Dispositions 1 1 10 — 12 Short Term Securities Acquired — — (83 ) — (83 ) Short Term Securities Redeemed — — 83 — 83 Capital Contributions and Loans Incurred (79 ) — (292 ) 371 — Capital Redemptions and Loans Paid 76 — 563 (639 ) — Notes Receivable — — — — — Other Transactions (3 ) — (7 ) — (10 ) Total Cash Flows from Investing Activities (310 ) (135 ) (168 ) (266 ) (879 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 420 — 634 — 1,054 Short Term Debt and Overdrafts Paid (420 ) — (626 ) — (1,046 ) Long Term Debt Incurred 3,062 204 3,197 — 6,463 Long Term Debt Paid (3,151 ) (52 ) (3,139 ) — (6,342 ) Common Stock Issued 14 — — — 14 Common Stock Repurchased (400 ) — — — (400 ) Common Stock Dividends Paid (110 ) — — — (110 ) Capital Contributions and Loans Incurred 292 66 13 (371 ) — Capital Redemptions and Loans Paid (563 ) (48 ) (28 ) 639 — Intercompany Dividends Paid — (128 ) (548 ) 676 — Transactions with Minority Interests in Subsidiaries — — (7 ) — (7 ) Debt Related Costs and Other Transactions (35 ) — (6 ) — (41 ) Total Cash Flows from Financing Activities (891 ) 42 (510 ) 944 (415 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash — 3 54 — 57 Net Change in Cash, Cash Equivalents and Restricted Cash (9 ) (23 ) (47 ) — (79 ) Cash, Cash Equivalents and Restricted Cash at Beginning of the Year 210 55 924 — 1,189 Cash, Cash Equivalents and Restricted Cash at End of the Year $ 201 $ 32 $ 877 $ — $ 1,110 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ (6,113) | $ (6,597) | $ (6,574) | |
Research and development expenditures | 430 | 424 | $ 406 | |
Advertising costs | 353 | 345 | 320 | |
Maximum cash investments with single counterparty | 170 | |||
Capital lease obligations | 36 | 6 | 5 | |
Accrued capital expenditures remaining unpaid | 243 | 266 | 265 | |
Payments for capital expenditures accrued and unpaid in prior year | 266 | 265 | 264 | |
Restricted net assets | 711 | |||
Depreciation expense for property, plant and equipment | $ 793 | $ 776 | $ 779 | |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Payment term | 30 days | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Payment term | 90 days | |||
Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 23 |
Accounting Policies - Cumulativ
Accounting Policies - Cumulative Effect of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Income Taxes — Asset | $ 1,527 | $ 1,854 | $ 1,847 |
Operating Lease ROU Assets | 855 | 882 | 0 |
Property, Plant and Equipment | 7,243 | 7,259 | |
Operating Lease Liabilities due Within One Year | 199 | 204 | 0 |
Operating Lease Liabilities | 668 | 684 | 0 |
Long Term Debt and Finance Leases | 4,753 | 5,124 | 5,110 |
Other Long Term Liabilities | 508 | 465 | 471 |
Retained Earnings | $ 6,113 | 6,574 | $ 6,597 |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Income Taxes — Asset | 7 | ||
Operating Lease ROU Assets | 882 | ||
Property, Plant and Equipment | (16) | ||
Operating Lease Liabilities due Within One Year | 204 | ||
Operating Lease Liabilities | 684 | ||
Long Term Debt and Finance Leases | 14 | ||
Other Long Term Liabilities | (6) | ||
Retained Earnings | $ (23) |
Accounting Policies - Restricte
Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and Cash Equivalents | $ 908 | $ 801 | $ 1,043 | |
Restricted Cash | 66 | 72 | 67 | |
Total Cash, Cash Equivalents and Restricted Cash | $ 974 | $ 873 | $ 1,110 | $ 1,189 |
Net Sales - Schedule of Disaggr
Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | $ 14,745 | $ 15,475 | $ 15,377 |
Tire unit sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 12,524 | 13,060 | |
Other tire and related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 1,139 | 1,162 | |
Retail services and service related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 644 | 675 | |
Chemical | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 403 | 554 | |
Other | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 35 | 24 | |
Americas | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 7,922 | 8,168 | 8,212 |
Americas | Tire unit sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 6,300 | 6,381 | |
Americas | Other tire and related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 659 | 656 | |
Americas | Retail services and service related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 535 | 564 | |
Americas | Chemical | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 403 | 554 | |
Americas | Other | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 25 | 13 | |
Europe, Middle East and Africa | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 4,708 | 5,090 | 4,928 |
Europe, Middle East and Africa | Tire unit sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 4,300 | 4,670 | |
Europe, Middle East and Africa | Other tire and related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 363 | 379 | |
Europe, Middle East and Africa | Retail services and service related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 39 | 34 | |
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 | 6 | 7 | |
Asia Pacific | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 2,115 | 2,217 | $ 2,237 |
Asia Pacific | Tire unit sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 1,924 | 2,009 | |
Asia Pacific | Other tire and related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 117 | 127 | |
Asia Pacific | Retail services and service related sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net Sales | 70 | 77 | |
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 | $ 4 | $ 4 |
Net Sales - Schedule of Balance
Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, current | $ 23 | $ 39 |
Deferred revenue, noncurrent | 31 | 39 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance at January 1 | 78 | 121 |
Revenue deferred during period | 155 | 116 |
Revenue recognized during period | (179) | (159) |
Impact of foreign currency translation | 0 | 0 |
Balance at December 31 | $ 54 | $ 78 |
Costs Associated with Rationa_3
Costs Associated with Rationalization Programs - Roll-Forward of Liability Balance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve | |||
Beginning Balance | $ 81 | $ 213 | $ 219 |
New Charges | 204 | 64 | 135 |
Incurred, Net of Foreign Currency Translation | (61) | (177) | (128) |
Reversed to the Statement of Operations | (4) | (19) | (13) |
Ending Balance | 220 | 81 | 213 |
Curtailments/settlements/termination benefits | 6 | 22 | 19 |
Rationalizations | |||
Restructuring Reserve | |||
Curtailments/settlements/termination benefits | 5 | (1) | 13 |
Associate-Related Costs | |||
Restructuring Reserve | |||
Beginning Balance | 80 | 210 | 214 |
New Charges | 185 | 47 | 103 |
Incurred, Net of Foreign Currency Translation | (41) | (158) | (94) |
Reversed to the Statement of Operations | (4) | (19) | (13) |
Ending Balance | 220 | 80 | 210 |
Foreign currency translation | (2) | (3) | 25 |
Other Costs | |||
Restructuring Reserve | |||
Beginning Balance | 1 | 3 | 5 |
New Charges | 19 | 17 | 32 |
Incurred, Net of Foreign Currency Translation | (20) | (19) | (34) |
Reversed to the Statement of Operations | 0 | 0 | 0 |
Ending Balance | 0 | 1 | 3 |
Foreign currency translation | $ 0 | $ 0 | $ 1 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Expense [Abstract] | |||
Interest expense before capitalization | $ 351 | $ 335 | $ 358 |
Capitalized interest | (11) | (14) | (23) |
Interest Expense | 340 | 321 | 335 |
Interest paid, net | $ 324 | $ 331 | $ 314 |
Costs Associated with Rationa_4
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | Mar. 18, 2019facilityposition | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of position to be released (in employees) | employee | 1,450 | ||||
Restructuring reserve | $ 220 | $ 81 | $ 213 | $ 219 | |
Rationalizations | 205 | 44 | 135 | ||
Rationalization reversals | 4 | 19 | 13 | ||
Rationalization charges to date | 930 | ||||
Future rationalization charges expected | $ 50 | ||||
Amiens Labor Claims | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Loss contingency, number of plaintiffs | employee | 850 | ||||
Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of position to be released (in employees) | employee | 2,100 | ||||
Restructuring reserve | $ 69 | ||||
Rationalizations | $ 199 | 40 | 83 | ||
Rationalization reversals | 1 | 1 | |||
Number of associates released | employee | 800 | ||||
Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 6 | 4 | 52 | ||
Rationalization reversals | $ 4 | 18 | 12 | ||
Number of associates released | employee | 400 | ||||
Modernizing Tire Manufacturing Facilities in Germany | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of facilities affected | facility | 2 | ||||
Expected number of position to be released (in employees) | position | 1,100 | ||||
Modernizing Tire Manufacturing Facilities in Germany | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 100 | ||||
Voluntary Buy-outs, Gadsden, Alabama | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees with buy-out applications submitted | employee | 740 | ||||
Reduction to Manufacturing Headcount, Gadsden, Alabama | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 76 | ||||
Americas Restructuring Plan, Brazil - Manufacturing Employee Severance and Operating Efficiency | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 18 | ||||
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 24 | ||||
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 8 | ||||
Reduce SAG Headcount | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 16 | ||||
Reduce SAG Headcount | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 28 | 25 | |||
Reduce SAG Headcount | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 3 | 12 | |||
Americas Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 7 | ||||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 105 | 13 | |||
Europe, Middle East, and Africa Restructuring Plan - Manufacturing Employee Severance and Operating Efficiency | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 3 | ||||
Philippsburg Restructuring | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 10 | $ 15 | 35 | ||
EMEA - Manufacturing Employee Severance | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 30 | ||||
EMEA - Manufacturing Employee Severance | Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 16 | ||||
EMEA - Selling, Administrative, and General Employee Severance | Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 20 |
Costs Associated with Rationa_5
Costs Associated with Rationalization Programs - Schedule of Net Rationalization Charges Included in Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 205 | $ 44 | $ 135 |
Asset write-off and accelerated depreciation charges | 15 | 4 | 40 |
Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 199 | 40 | 83 |
Current Year Plans | Associate severance and other related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 183 | 40 | 81 |
Current Year Plans | Benefit plan curtailment and special termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 5 | 0 | 0 |
Current Year Plans | Other exit and non-cancelable lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 11 | 0 | 2 |
Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 6 | 4 | 52 |
Prior Year Plans | Associate severance and other related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | (2) | (11) | 9 |
Prior Year Plans | Benefit plan curtailment and special termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 0 | (1) | 13 |
Prior Year Plans | Other exit and non-cancelable lease costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 8 | $ 16 | $ 30 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | ||||
Gain on TireHub transaction, net of transaction costs | $ 0 | $ (272) | $ 0 | |
Non-service related pension and other postretirement benefits costs | 118 | 121 | 62 | |
Interest income on indirect tax settlements in Brazil | (8) | (38) | 0 | |
Financing fees and financial instruments expense | 34 | 36 | 55 | |
Net foreign currency exchange (gains) losses | (22) | (16) | (7) | |
General and product liability expense - discontinued products | 11 | 9 | 0 | |
Royalty income | $ (2,100) | (19) | (20) | (32) |
Net (gains) losses on asset sales | (16) | (1) | (14) | |
Interest income | (18) | (16) | (13) | |
Miscellaneous expense | 18 | 23 | 19 | |
Other (income) expense | $ 98 | $ (174) | $ 70 |
Other (Income) Expense - Narrat
Other (Income) Expense - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2017 | |
Other Expense [Line Items] | ||||
Deconsolidation, gain (loss), gross | $ 286,000,000 | |||
Professional fees | 14,000,000 | |||
Gain (loss) related to settlement | $ 11,000,000 | 53,000,000 | ||
Interest income, tax settlement | 8,000,000 | 38,000,000 | $ 0 | |
Loss from catastrophes | $ 25,000,000 | $ 12,000,000 | 14,000,000 | |
Senior Notes | 6.5% due 2021 | ||||
Other Expense [Line Items] | ||||
Redemption premium | $ 25,000,000 | |||
Senior Notes | 7% due 2022 | ||||
Other Expense [Line Items] | ||||
Debt instrument, principal amount | $ 700,000,000 | |||
Interest rate, stated percentage | 7.00% |
Income Taxes - Income before In
Income Taxes - Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (39) | $ 439 | $ 394 |
Foreign | 216 | 572 | 484 |
Income before income taxes | $ 177 | $ 1,011 | $ 878 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Federal statutory tax rate | 21.00% | 21.00% | 35.00% | |
Reconciliation of Statutory to Effective Tax (Benefit) Expense | ||||
U.S. federal income tax expense at the statutory rate of 21% (35% for 2017) | $ 37 | $ 212 | $ 307 | |
Federal and state tax on accelerated royalty income transaction | 334 | 0 | 0 | |
Net establishment (release) of valuation allowances | $ 88 | |||
Net foreign losses (income) with no tax due to valuation allowances | 48 | 7 | (7) | |
U.S. charges (benefits) related to foreign tax credits, R&D and foreign derived intangible deduction | (17) | 20 | (23) | |
Adjustment for foreign income taxed at different rates | 16 | 30 | (55) | |
Net establishment (resolution) of uncertain tax positions | 7 | 18 | (6) | |
Deferred tax impact of enacted tax rate and law changes | 3 | 0 | 389 | |
State income taxes, net of U.S. federal benefit | (1) | (1) | 9 | |
Provision for undistributed foreign earnings, net | 0 | (9) | (162) | |
Transition tax | 0 | 8 | 77 | |
Domestic production activities deduction | 0 | (1) | (16) | |
Other | 5 | (1) | (6) | |
United States and Foreign Tax (Benefit) Expense | 474 | 303 | 513 | |
Foreign Tax Authority | ||||
Reconciliation of Statutory to Effective Tax (Benefit) Expense | ||||
Net establishment (release) of valuation allowances | 140 | (5) | 1 | |
Domestic Tax Authority | ||||
Reconciliation of Statutory to Effective Tax (Benefit) Expense | ||||
Net establishment (release) of valuation allowances | $ (98) | $ 25 | $ 5 |
Income Taxes - Components of Un
Income Taxes - Components of United States and Foreign Tax (Benefit) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ (15) | $ (22) |
Foreign | 134 | 188 | 166 |
State | 17 | (1) | 3 |
Current income tax expense (benefit) | 151 | 172 | 147 |
Deferred: | |||
Federal | 133 | 120 | 389 |
Foreign | 153 | 6 | (8) |
State | 37 | 5 | (15) |
Deferred income tax expense (benefit) | 323 | 131 | 366 |
United States and Foreign Tax (Benefit) Expense | $ 474 | $ 303 | $ 513 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||||
Income tax (benefit) expense | $ 474 | $ 303 | $ 513 | |||
Income before income taxes | 177 | 1,011 | 878 | |||
Net discrete tax adjustments | $ 135 | 386 | 65 | 294 | ||
Federal and state tax on accelerated royalty income transaction | 334 | 0 | 0 | |||
Increase in valuation allowance on tax losses in subsidiaries | 150 | |||||
Reduction to valuation allowance for foreign tax credits | 98 | |||||
Valuation allowance | $ 982 | 317 | 982 | 317 | ||
Deferred tax asset, tax credit carryforwards, foreign, net | 403 | 637 | 403 | 637 | ||
Royalty income | $ 2,100 | 19 | 20 | 32 | ||
Royalty income period | 12 years | |||||
Prepaid royalty income | $ 576 | 0 | 576 | 0 | ||
Intercompany sales, inventory | 320 | |||||
Deferred tax assets, inventory | 70 | 70 | ||||
Tax credit, foreign, amount | 310 | |||||
Income tax expense, release of valuation allowance | 98 | |||||
Net establishment (release) of valuation allowances | (88) | |||||
Discrete adjustments, other | 18 | 5 | ||||
Provisional tax expense, Tax Cuts and Jobs Act of 2017 | 299 | |||||
Deferred tax assets, operating loss, capital loss, and tax credit carryforwards | 611 | 611 | ||||
Operating loss carryforwards, domestic | 489 | 489 | ||||
Operating loss carryforwards, state and local | 59 | 59 | ||||
Unrecognized tax benefits | 82 | 71 | 82 | 71 | 52 | $ 63 |
Unrecognized tax benefits that would impact effective tax rate | 56 | 56 | ||||
Income tax penalties and interest accrued | 1 | 1 | ||||
Unsettled unrecognized tax benefits that would require cash | 6 | 6 | ||||
Undistributed earnings of foreign subsidiaries | 2,400 | 2,400 | ||||
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 80 | 80 | ||||
Income tax cash payments, net | 142 | 178 | 144 | |||
Transition tax obligation, amount | 0 | 8 | 77 | |||
Foreign Tax Authority | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | 969 | 204 | 969 | 204 | ||
Tax credit carryforward, valuation allowance | 3 | 103 | 3 | 103 | ||
Net establishment (release) of valuation allowances | (140) | 5 | (1) | |||
Deferred tax assets, operating loss, capital loss, and tax credit carryforwards, subject to expiration | 63 | 63 | ||||
Venezuela | ||||||
Income Taxes [Line Items] | ||||||
Tax credit carryforward, valuation allowance | 98 | 98 | ||||
Domestic Tax Authority | ||||||
Income Taxes [Line Items] | ||||||
Net establishment (release) of valuation allowances | 98 | (25) | $ (5) | |||
Tax credit carryforwards, foreign | 406 | 406 | ||||
Tax credit carryforwards, research | 83 | 83 | ||||
Domestic and State and Local Authority | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | $ 13 | $ 113 | $ 13 | $ 113 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Tax loss carryforwards and credits | $ 1,159 | $ 1,473 |
Prepaid royalty income | 576 | 0 |
Capitalized research and development expenditures | 416 | 404 |
Accrued expenses deductible as paid | 347 | 261 |
Postretirement benefits and pensions | 221 | 207 |
Rationalizations and other provisions | 38 | 26 |
Vacation and sick pay | 23 | 23 |
Deferred interest deductions | 0 | 40 |
Other | 106 | 111 |
Total gross deferred tax assets | 2,886 | 2,545 |
Valuation allowance | (982) | (317) |
Total deferred tax assets | 1,904 | 2,228 |
Property basis differences | (466) | (475) |
Tax on undistributed earnings of subsidiaries | (1) | (1) |
Total net deferred tax assets | $ 1,437 | $ 1,752 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 71 | $ 52 | $ 63 |
Increases related to prior year tax positions | 24 | 9 | 2 |
Decreases related to prior year tax positions | 0 | (1) | (2) |
Settlements | (11) | (2) | (8) |
Foreign currency impact | (2) | (5) | 0 |
Increases related to current year tax positions | 0 | 21 | 0 |
Lapse of statute of limitations | 0 | (3) | (3) |
Balance at end of period | $ 82 | $ 71 | $ 52 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings (loss) per share — basic: | |||
Goodyear net income (loss) | $ (311) | $ 693 | $ 346 |
Weighted average shares outstanding (in shares) | 233 | 237 | 249 |
Earnings (loss) per common share-basic (in dollars per share) | $ (1.33) | $ 2.92 | $ 1.39 |
Earnings (loss) per share — diluted: | |||
Goodyear net income (loss) | $ (311) | $ 693 | $ 346 |
Weighted average shares outstanding (in shares) | 233 | 237 | 249 |
Dilutive effect of stock options and other dilutive securities (in shares) | 0 | 2 | 4 |
Weighted average shares outstanding — diluted (in shares) | 233 | 239 | 253 |
Earnings (loss) per common share-diluted (in dollars per share) | $ (1.33) | $ 2.89 | $ 1.37 |
In-the-money Options | |||
Earnings (loss) per share — diluted: | |||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 3 | ||
Underwater Stock Options | |||
Earnings (loss) per share — diluted: | |||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 2 | 2 | 1 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 3 | ||
Cash and cash equivalents | $ 908 | $ 801 | $ 1,043 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 337 | $ 278 | |
Concentrations of cash and cash equivalents | 37.00% | 35.00% | |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 214 | $ 261 | |
Concentrations of cash and cash equivalents | 24.00% | 33.00% | |
Americas | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 190 | $ 134 | |
Concentrations of cash and cash equivalents | 21.00% | 17.00% |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Operating Income: | ||||
Net Sales | $ 14,745 | $ 15,475 | $ 15,377 | |
Less: | ||||
Rationalizations | 205 | 44 | 135 | |
Interest Expense | 340 | 321 | 335 | |
Other (Income) Expense | 98 | (174) | 70 | |
Asset write-offs and accelerated depreciation | 15 | 4 | 40 | |
Income before Income Taxes | 177 | 1,011 | 878 | |
Royalty income | $ 2,100 | 19 | 20 | 32 |
Operating Segments | ||||
Less: | ||||
Rationalizations | 205 | 42 | 119 | |
Income before Income Taxes | 945 | 1,274 | 1,556 | |
Segment Reconciling Items | ||||
Less: | ||||
Rationalizations | 205 | 44 | 135 | |
Interest Expense | 340 | 321 | 335 | |
Other (Income) Expense | 98 | (174) | 70 | |
Asset write-offs and accelerated depreciation | 15 | 4 | 40 | |
Corporate incentive compensation plans | 50 | 13 | 33 | |
Retained expenses of divested operations | 10 | 9 | 13 | |
Corporate and Eliminations | ||||
Less: | ||||
Other | 50 | 46 | 52 | |
Intersegment Eliminations | ||||
Less: | ||||
Royalty income | 17 | 18 | 30 | |
Americas | ||||
Segment Operating Income: | ||||
Net Sales | 7,922 | 8,168 | 8,212 | |
Less: | ||||
Asset write-offs and accelerated depreciation | 13 | 0 | 0 | |
Americas | Operating Segments | ||||
Less: | ||||
Rationalizations | 90 | 3 | 6 | |
Income before Income Taxes | 550 | 654 | 847 | |
Europe, Middle East and Africa | ||||
Segment Operating Income: | ||||
Net Sales | 4,708 | 5,090 | 4,928 | |
Less: | ||||
Asset write-offs and accelerated depreciation | 2 | 4 | 40 | |
Europe, Middle East and Africa | Operating Segments | ||||
Less: | ||||
Rationalizations | 115 | 36 | 111 | |
Income before Income Taxes | 202 | 363 | 367 | |
Asia Pacific | ||||
Segment Operating Income: | ||||
Net Sales | 2,115 | 2,217 | 2,237 | |
Asia Pacific | Operating Segments | ||||
Less: | ||||
Rationalizations | 0 | 3 | 2 | |
Income before Income Taxes | $ 193 | $ 257 | $ 342 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 17,185 | $ 16,872 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 15,041 | 14,571 |
Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Assets | 7,606 | 7,160 |
Operating Segments | Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,724 | 4,809 |
Operating Segments | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,711 | 2,602 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 2,144 | $ 2,301 |
Business Segments - Geographic
Business Segments - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | $ 14,745 | $ 15,475 | $ 15,377 |
Long-Lived Assets | 7,208 | 7,259 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 6,489 | 6,692 | 6,678 |
Long-Lived Assets | 2,681 | 2,734 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 722 | 762 | |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 979 | 1,691 | 1,874 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 7,277 | 7,092 | $ 6,825 |
Long-Lived Assets | $ 3,805 | $ 3,763 |
Business Segments - Rationaliza
Business Segments - Rationalizations, Asset Sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Rationalizations | $ 205 | $ 44 | $ 135 |
Deconsolidation, gain (loss), amount | 0 | 272 | 0 |
Asset write-offs and accelerated depreciation | 15 | 4 | 40 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Asset write-offs and accelerated depreciation | 13 | 0 | 0 |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Asset write-offs and accelerated depreciation | 2 | 4 | 40 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 205 | 42 | 119 |
Net (gains) losses on asset sales | (16) | (273) | (14) |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 90 | 3 | 6 |
Net (gains) losses on asset sales | 0 | (275) | (4) |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 115 | 36 | 111 |
Net (gains) losses on asset sales | (16) | 2 | (10) |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 0 | 3 | 2 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | $ 0 | $ 2 | $ 16 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 770 | $ 811 | $ 881 |
Depreciation and amortization | 795 | 778 | 781 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 737 | 774 | 848 |
Depreciation and amortization | 760 | 746 | 713 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 369 | 406 | 525 |
Depreciation and amortization | 430 | 414 | 398 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 227 | 180 | 159 |
Depreciation and amortization | 197 | 201 | 191 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 141 | 188 | 164 |
Depreciation and amortization | 133 | 131 | 124 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 33 | 37 | 33 |
Depreciation and amortization | $ 35 | $ 32 | $ 68 |
Business Segments - Equity In N
Business Segments - Equity In Net Income of Investees Accounted For By Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Equity in (Income) Loss | $ 0 | $ 0 | $ 0 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Equity in (Income) Loss | 32 | 10 | (5) |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Equity in (Income) Loss | 32 | 11 | (5) |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Equity in (Income) Loss | $ 0 | $ (1) | $ 0 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 2,052 | $ 2,143 |
Allowance for doubtful accounts | (111) | (113) |
Accounts receivable, net | $ 1,941 | $ 2,030 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 530 | $ 569 |
Work in process | 143 | 152 |
Finished goods | 2,178 | 2,135 |
Total inventory | $ 2,851 | $ 2,856 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 569 | $ 595 |
Acquisitions | 3 | 2 |
Divestitures | 0 | 0 |
Translation | (7) | (28) |
Ending balance | 565 | 569 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 91 | 91 |
Acquisitions | 0 | 0 |
Divestitures | 0 | 0 |
Translation | 0 | 0 |
Ending balance | 91 | 91 |
Europe, Middle East and Africa | ||
Goodwill [Roll Forward] | ||
Beginning balance | 415 | 437 |
Acquisitions | 2 | 2 |
Divestitures | 0 | 0 |
Translation | (6) | (24) |
Ending balance | 411 | 415 |
Asia Pacific | ||
Goodwill [Roll Forward] | ||
Beginning balance | 63 | 67 |
Acquisitions | 1 | 0 |
Divestitures | 0 | 0 |
Translation | (1) | (4) |
Ending balance | $ 63 | $ 63 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives, gross | $ 124 | $ 124 |
Intangible assets with indefinite lives, accumulated amortization | (6) | (6) |
Intangible assets with indefinite lives, net | 118 | 118 |
Intangible assets, gross | 173 | 170 |
Intangible assets, accumulated amortization | (36) | (34) |
Intangible assets, net | 137 | 136 |
Trademarks and Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 24 | 23 |
Finite-lived intangible assets, accumulated amortization | (19) | (19) |
Finite-lived intangible assets, net | 5 | 4 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 25 | 23 |
Finite-lived intangible assets, accumulated amortization | (11) | (9) |
Finite-lived intangible assets, net | $ 14 | $ 14 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2019 | |
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2020 | 2,000,000 | |||
2021 | 2,000,000 | |||
2022 | 2,000,000 | |||
2023 | 1,000,000 | |||
2024 | $ 1,000,000 | |||
Weighted average remaining amortization period | 20 years | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | |
Europe, Middle East and Africa | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
Percentage of fair value in excess of carrying amount | 10.00% |
Other Assets and Investments (D
Other Assets and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Dividends received from consolidated subsidiaries | $ 43 | $ 608 | $ 558 |
Dividends received from affiliates accounted for using the equity method | 4 | 5 | $ 5 |
Equity method investments | 0 | 0 | |
TireHub | |||
Related Party Transaction [Line Items] | |||
Equity method investments | $ 262 | 270 | |
Equity ownership percentage | 50.00% | ||
Equity method investment, loss | $ 33 | $ 15 | |
Payments to acquire equity method investments | $ 30 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 426 | $ 427 | |
Buildings | 2,658 | 2,593 | |
Machinery and equipment | 13,654 | 13,483 | |
Construction in progress | 682 | 655 | |
Property, plant, and equipment and finance lease right-of-use asset, gross | 17,420 | ||
Property, plant and equipment, gross | 17,158 | ||
Accumulated depreciation | (10,488) | ||
Accumulated depreciation | (10,161) | ||
Property plant and equipment, net before spare parts | 6,932 | 6,997 | |
Spare parts | 276 | 262 | |
Property, plant and equipment, net | 7,208 | ||
Property, plant and equipment, net | $ 7,243 | 7,259 | |
Owned | |||
Property, Plant and Equipment [Line Items] | |||
Land | 425 | 427 | |
Buildings | 2,431 | 2,564 | |
Machinery and equipment | 13,624 | 13,440 | |
Construction in progress | 681 | 654 | |
Property, plant, and equipment and finance lease right-of-use asset, gross | 17,161 | ||
Property, plant and equipment, gross | 17,085 | ||
Accumulated depreciation | (10,438) | ||
Accumulated depreciation | (10,128) | ||
Property plant and equipment, net before spare parts | 6,723 | 6,957 | |
Spare parts | 276 | 262 | |
Property, plant and equipment, net | 6,999 | ||
Property, plant and equipment, net | 7,219 | ||
Finance Leases | |||
Property, Plant and Equipment [Line Items] | |||
Land | 1 | ||
Buildings | 227 | ||
Machinery and equipment | 30 | ||
Construction in progress | 1 | ||
Property, plant, and equipment and finance lease right-of-use asset, gross | 259 | ||
Accumulated depreciation | (50) | ||
Property plant and equipment, net before spare parts | 209 | ||
Spare parts | 0 | ||
Property, plant and equipment, net | $ 209 | ||
Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Land | 0 | ||
Buildings | 29 | ||
Machinery and equipment | 43 | ||
Construction in progress | 1 | ||
Property, plant and equipment, gross | 73 | ||
Accumulated depreciation | (33) | ||
Property plant and equipment, net before spare parts | 40 | ||
Spare parts | 0 | ||
Property, plant and equipment, net | $ 40 | ||
Building and Building Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Building and Building Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 45 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years |
- Additional Information (Detai
- Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Leased Assets [Line Items] | |
Operating lease, weighted average remaining lease term | 7 years 2 months 12 days |
Lessee, operating lease, option to terminate, term | 1 year |
Lessee, operating lease, term of contract | 12 months |
Lease not yet commenced, amount | $ 48 |
Minimum | |
Operating Leased Assets [Line Items] | |
Operating lease, weighted average remaining lease term | 1 year |
Lessee, operating lease, renewal term | 1 year |
Lessor, operating lease, term of contract | 10 years |
Maximum | |
Operating Leased Assets [Line Items] | |
Operating lease, weighted average remaining lease term | 50 years |
Lessee, operating lease, renewal term | 50 years |
Lessor, operating lease, term of contract | 15 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease Expense | $ 292 |
Finance Lease Expense: | |
Amortization of ROU assets | 11 |
Interest on lease liabilities | 21 |
Short Term Lease Expense | 6 |
Variable Lease Expense | 7 |
Sublease Income | (15) |
Total Lease Expense | $ 322 |
Leases - Net Rental Expense (De
Leases - Net Rental Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Gross rental expense | $ 333 | $ 332 |
Sublease rental income | (16) | (17) |
Rent expense, net | $ 317 | $ 315 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | |
Operating Cash Flows for Operating Leases | $ 267 |
Operating Cash Flows for Finance Leases | 21 |
Financing Cash Flows for Finance Leases | 7 |
ROU Assets Obtained in Exchange for Lease Obligations | |
Operating Leases | 197 |
Finance Leases | $ 34 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases | |||
Operating Lease ROU Assets | $ 855 | $ 882 | $ 0 |
Operating Lease Liabilities due Within One Year | 199 | 204 | 0 |
Operating Lease Liabilities | 668 | $ 684 | 0 |
Total Operating Lease Liabilities | 867 | ||
Finance Leases | |||
Property, Plant and Equipment, at cost | 259 | ||
Accumulated Depreciation | (50) | ||
Property, Plant and Equipment, net | 209 | ||
Long Term Debt and Finance Leases due Within One Year | 6 | ||
Long Term Debt and Finance Leases | 243 | ||
Total Finance Lease Liabilities | $ 249 | $ 37 | |
Weighted Average Remaining Lease Term | |||
Operating Leases | 7 years 2 months 12 days | ||
Finance Leases | 31 years 7 months 6 days | ||
Weighted Average Discount Rate | |||
Operating Leases | 6.69% | ||
Finance Leases | 8.46% |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities - ASC 842 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2020 | $ 242 | |
2021 | 192 | |
2022 | 141 | |
2023 | 109 | |
2024 | 81 | |
Thereafter | 359 | |
Total Lease Payments | 1,124 | |
Less: Imputed Interest | 257 | |
Total Operating Lease Liabilities | 867 | |
Finance Leases | ||
2020 | 25 | |
2021 | 35 | |
2022 | 22 | |
2023 | 21 | |
2024 | 20 | |
Thereafter | 690 | |
Total Lease Payments | 813 | |
Less: Imputed Interest | 564 | |
Total Finance Lease Liabilities | $ 249 | $ 37 |
Financing Arrangements and De_3
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 9,078 |
Credit arrangements, unused amount | $ 3,578 |
Debt, percentage bearing variable interest | 32.00% |
Long-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 8,320 |
Credit arrangements, unused amount | 3,189 |
Short-term Debt | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | 758 |
Credit arrangements, unused amount | $ 389 |
Variable Rate Credit Arrangements | |
Debt Instrument [Line Items] | |
Interest rate | 3.81% |
Financing Arrangements and De_4
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases Due Within One Year (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 348 | $ 410 |
Long term debt and finance leases due within one year | 562 | 243 |
Total obligations due within one year | 910 | 653 |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 187 | $ 211 |
Weighted average interest rate | 4.02% | 5.35% |
Long Term Debt And Capital Leases, Current | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 6.58% | 4.57% |
Chinese credit facilities | Line of Credit | Foreign Line of Credit | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 95 | $ 32 |
Weighted average interest rate | 4.87% | 5.03% |
8.75% due 2020 | Senior Notes | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Long term debt and finance leases due within one year | $ 280 | $ 0 |
Interest rate, stated percentage | 8.75% | |
Line of Credit | Chinese credit facilities | Foreign Line of Credit | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 118 | 122 |
Other Foreign and Domestic Debt | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 230 | $ 288 |
Notes Payable and Overdrafts | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 4.92% | 8.03% |
Financing Arrangements and De_5
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Finance Leases, Net of Unamortized Discounts, and Interest Rates (Details) € in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Long-term Debt and Lease Obligation [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 9,078,000,000 | |||
Long-term debt, before deferred financing fees | 5,094,000,000 | $ 5,352,000,000 | ||
Unamortized deferred financing fees | (28,000,000) | (36,000,000) | ||
Total long term debt excluding capital leases | 5,066,000,000 | 5,316,000,000 | ||
Finance lease obligations | 249,000,000 | 37,000,000 | ||
Long-term debt and capital leases | 5,315,000,000 | 5,353,000,000 | ||
Less portion due within one year | (562,000,000) | (243,000,000) | ||
Long-term debt and capital leases, excluding current maturities | 4,753,000,000 | $ 5,124,000,000 | 5,110,000,000 | |
Other Foreign and Domestic Debt | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | 661,000,000 | 884,000,000 | ||
Less portion due within one year | $ (187,000,000) | $ (211,000,000) | ||
Interest rate | 4.02% | 4.02% | 5.35% | |
8.75% due 2020 | Senior Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 280,000,000 | $ 278,000,000 | ||
Less portion due within one year | $ (280,000,000) | 0 | ||
Interest rate, stated percentage | 8.75% | 8.75% | ||
5.125% due 2023 | Senior Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 1,000,000,000 | 1,000,000,000 | ||
Interest rate, stated percentage | 5.125% | 5.125% | ||
3.75% Euro Notes due 2023 | Euro Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 281,000,000 | 286,000,000 | ||
Interest rate, stated percentage | 3.75% | 3.75% | ||
5% due 2026 | Senior Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 900,000,000 | 900,000,000 | ||
Interest rate, stated percentage | 5.00% | 5.00% | ||
4.875% due 2027 | Senior Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 700,000,000 | 700,000,000 | ||
Interest rate, stated percentage | 4.875% | 4.875% | ||
7% due 2028 | Senior Notes | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 150,000,000 | 150,000,000 | ||
Interest rate, stated percentage | 7.00% | 7.00% | ||
Revolving Credit Facility | First lien revolving credit facility due 2021 | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | |||
Long-term debt, before deferred financing fees | $ 0 | $ 0 | ||
Interest rate | 0.00% | 0.00% | 0.00% | |
Revolving Credit Facility | European revolving credit facility due 2024 | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 0 | $ 0 | ||
Interest rate | 0.00% | 0.00% | 0.00% | |
Secured Debt | Second lien term loan facility due 2025 | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 400,000,000 | $ 400,000,000 | ||
Interest rate | 3.97% | 3.97% | 4.46% | |
Secured Debt | Pan-European accounts receivable facility | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | € | € 320 | |||
Long-term debt, before deferred financing fees | $ 327,000,000 | $ 335,000,000 | ||
Interest rate | 0.98% | 0.98% | 1.01% | |
Secured Debt | Chinese credit facilities | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Line of credit facility, maximum borrowing capacity | $ 735,000,000 | $ 672,000,000 | ||
Foreign Line of Credit | Mexican credit facilities | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 200,000,000 | $ 200,000,000 | ||
Interest rate | 3.44% | 3.44% | 4.30% | |
Foreign Line of Credit | Chinese credit facilities | Line of Credit | ||||
Long-term Debt and Lease Obligation [Abstract] | ||||
Long-term debt, before deferred financing fees | $ 195,000,000 | $ 219,000,000 | ||
Less portion due within one year | $ (95,000,000) | $ (32,000,000) | ||
Interest rate | 4.87% | 4.87% | 5.03% |
Financing Arrangements and De_6
Financing Arrangements and Derivative Financial Instruments - Notes Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Senior Notes | 8.75% due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 282,000,000 | |
Interest rate, stated percentage | 8.75% | 8.75% |
Effective yield | 9.20% | 9.20% |
Senior Notes | 8.75% due 2020 | Treasury Rate | ||
Debt Instrument [Line Items] | ||
Basis spread | 0.50% | |
Senior Notes | 8.75% due 2020 | At Any Time Plus Make Whole Premium | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 5.125% due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000,000,000 | |
Interest rate, stated percentage | 5.125% | 5.125% |
Notes sold, percentage of principle amount | 100.00% | 100.00% |
Senior Notes | 5.125% due 2023 | Period Commencing November 15, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 101.281% | |
Senior Notes | 5.125% due 2023 | Period Commencing November 15, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 5% due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 900,000,000 | |
Interest rate, stated percentage | 5.00% | 5.00% |
Notes sold, percentage of principle amount | 100.00% | 100.00% |
Senior Notes | 5% due 2026 | Period Commencing May 31, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 102.50% | |
Senior Notes | 5% due 2026 | Period Commencing May 31, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 101.667% | |
Senior Notes | 5% due 2026 | Period Commencing May 31, 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.833% | |
Senior Notes | 5% due 2026 | Period Commencing May 31, 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 5% due 2026 | Period Prior to May 31, 2021 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 4.875% due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 700,000,000 | |
Interest rate, stated percentage | 4.875% | 4.875% |
Basis spread | 0.50% | |
Notes sold as a percentage of principal amount | 100.00% | |
Senior Notes | 4.875% due 2027 | Debt Instrument, Redemption, Prior to December 15, 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 4.875% due 2027 | Debt Instrument, Redemption, After December 15, 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Senior Notes | 7% due 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 150,000,000 | |
Interest rate, stated percentage | 7.00% | 7.00% |
Basis spread | 0.15% | |
Senior Notes | 7% due 2028 | At Any Time Plus Make Whole Premium | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% | |
Euro Notes | 3.75% Euro Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | € | € 250,000,000 | |
Interest rate, stated percentage | 3.75% | 3.75% |
Notes sold, percentage of principle amount | 100.00% | 100.00% |
Euro Notes | 3.75% Euro Notes due 2023 | Period Commencing December 15, 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.938% | |
Euro Notes | 3.75% Euro Notes due 2023 | Period Commencing December 15, 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price | 100.00% |
Financing Arrangements and De_7
Financing Arrangements and Derivative Financial Instruments - Credit Facilities Narrative (Details) | Mar. 27, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Mar. 26, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 9,078,000,000 | |||||
Long-term debt, before deferred financing fees | 5,094,000,000 | $ 5,352,000,000 | ||||
Long term debt and finance leases due within one year | 562,000,000 | 243,000,000 | ||||
Notes payable and overdrafts | 348,000,000 | 410,000,000 | ||||
Accounts Receivable Factoring Facilities | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Off-balance sheet accounts receivable securitization | 548,000,000 | 568,000,000 | ||||
Chinese Credit Facilities | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 735,000,000 | 672,000,000 | ||||
Line of credit facility, amount outstanding | 313,000,000 | 341,000,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 106,000,000 | 116,000,000 | ||||
Line of Credit | First lien revolving credit facility due 2021 | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum percentage of equity interest In foreign subsidiaries to guarantee debt obligation | 65.00% | 65.00% | ||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | |||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | 250,000,000 | |||||
Line of credit facility, maximum borrowing capacity inputs, increase based on value of cash | 200,000,000 | |||||
Line of credit facility, borrowing base amount below stated amount | 301,000,000 | |||||
Amount of availability under the facility plus available cash, less than | $ 200,000,000 | |||||
Minimum EBITDA ratio permitted in four consecutive quarters if below available cash threshold | 2 | |||||
Available cash plus availability under facility | $ 1,000,000,000 | |||||
Annual commitment fee percentage on undrawn amounts | 0.25% | |||||
Line of credit facility, amount outstanding | $ 0 | 0 | ||||
Letters of credit, amount outstanding | 37,000,000 | 37,000,000 | ||||
Long-term debt, before deferred financing fees | $ 0 | 0 | ||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Annual commitment fee percentage on undrawn amounts | 0.30% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.25% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.00% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.50% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.25% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.50% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Revolving Credit Facility | Overnight Bank Funding Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.50% | |||||
Line of Credit | First lien revolving credit facility due 2021 | Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Required total leverage ratio | 1.25 | 1.25 | ||||
Optional reduction of basis spreads | 0.25% | |||||
Maximum pro forma senior secured leverage ratio before proceed restrictions | 3 | |||||
Long-term debt, before deferred financing fees | $ 400,000,000 | 400,000,000 | ||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 2.00% | |||||
Basis spread on reference rate | 1.00% | |||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Secured Debt | Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.00% | |||||
Line of Credit | Amended and Restated Second Lien Term Loan Facility | Secured Debt | Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on reference rate | 0.50% | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 800,000,000 | € 550,000,000 | ||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | € | € 200,000,000 | |||||
Line of credit facility, amount outstanding | $ 0 | 0 | ||||
Basis spread on variable rate, reduction | 0.25% | |||||
Commitment fee percentage reduction | 0.05% | |||||
Commitment fee percentage | 0.25% | |||||
Maximum indebtedness to EBITDA ratio for a period of four consecutive quarters | 3 | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.50% | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Revolving Credit Facility | European Interbank Offer Rate (Euribor) | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1.50% | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 75,000,000 | |||||
Letters of credit, amount outstanding | € | € 0 | € 0 | ||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | German Tranche | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | 180,000,000 | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | All-Borrower Tranche | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | 620,000,000 | |||||
Line of Credit | Amended and Restated Senior Secured European Revolving Credit Facility | Bridge Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 175,000,000 | |||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | 320,000,000 | |||||
Long-term debt, before deferred financing fees | 327,000,000 | 335,000,000 | ||||
Line of credit facility, current borrowing capacity | 327,000,000 | 291,000,000 | 335,000,000 | € 293,000,000 | ||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | 30,000,000 | |||||
Line of Credit | Pan-European Accounts Receivable Facility | Secured Debt | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 450,000,000 | |||||
Line of Credit | Mexican Credit Facilities | Foreign Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, before deferred financing fees | 200,000,000 | 200,000,000 | ||||
Line of credit facility, current borrowing capacity | 200,000,000 | 340,000,000 | ||||
Line of Credit | Chinese Credit Facilities | Foreign Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, before deferred financing fees | 195,000,000 | 219,000,000 | ||||
Long term debt and finance leases due within one year | $ 95,000,000 | $ 32,000,000 |
Financing Arrangements and De_8
Financing Arrangements and Derivative Financial Instruments - Maturities of Long-term Debt and Finance Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt and Capital Lease Annual Maturities | |
2020 | $ 911 |
2021 | 265 |
2022 | 393 |
2023 | 1,649 |
2024 | 87 |
U.S. | |
Debt and Capital Lease Annual Maturities | |
2020 | 283 |
2021 | 1 |
2022 | 166 |
2023 | 998 |
2024 | 0 |
Foreign | |
Debt and Capital Lease Annual Maturities | |
2020 | 628 |
2021 | 264 |
2022 | 227 |
2023 | 651 |
2024 | $ 87 |
Financing Arrangements and De_9
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, notional amount | $ 1,707 | $ 1,240 |
Foreign currency derivatives, net transaction gains (losses) | 22 | 80 |
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative, notional amount | 365 | 347 |
Accounts Receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - asset, not designated as hedging instrument | 1 | 7 |
Fair value - asset, designated as hedging instrument | 9 | 9 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - liability, not designated as hedging instrument | (15) | (6) |
Fair value - liability, designated as hedging instrument | (3) | (1) |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - asset, designated as hedging instrument | 1 | 2 |
Other Long Term Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - liability, designated as hedging instrument | $ (1) | $ 0 |
Financing Arrangements and D_10
Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 3 | |
Foreign Exchange Contract | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of gains (losses) deferred to AOCL | 10 | $ 12 |
Foreign Exchange Contract | Cost of Sales | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Reclassification adjustment for amounts recognized in Cost of Goods Sold (CGS) | $ (14) | $ 7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investments | $ 11 | $ 10 |
Foreign Exchange Contracts | 11 | 18 |
Total Assets at Fair Value | 22 | 28 |
Liabilities: | ||
Foreign Exchange Contracts | 19 | 7 |
Total Liabilities at Fair Value | 19 | 7 |
Supplemental Fair Value Information | ||
Carrying amount — liability | 5,066 | 5,316 |
Notes payable and overdrafts | 348 | 410 |
Fixed Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 3,434 | 3,609 |
Fair value — liability | 3,558 | 3,443 |
Notes payable and overdrafts | 143 | 230 |
Variable Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 1,632 | 1,707 |
Fair value — liability | 1,632 | 1,689 |
Notes payable and overdrafts | 205 | 180 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 11 | 10 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 11 | 10 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Supplemental Fair Value Information | ||
Fair value — liability | 3,808 | 3,496 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 11 | 18 |
Total Assets at Fair Value | 11 | 18 |
Liabilities: | ||
Foreign Exchange Contracts | 19 | 7 |
Total Liabilities at Fair Value | 19 | 7 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Pension, Other Postretirement_3
Pension, Other Postretirement Benefits and Savings Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans, contribution expenses | $ 110 | $ 111 | $ 111 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution to funded non-U.S. pension plans in next year | 25 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution to funded non-U.S. pension plans in next year | 50 | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement payments | 0 | 0 | |
Service cost | 2 | 3 | 4 |
Increase (decrease) for plan amendment | 0 | (14) | |
Benefits (credit) cost | 7 | 11 | (7) |
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 4 | ||
Estimated prior service credit that will be amortized from AOCL into benefits cost in the next year | 9 | ||
Prescription drug subsidy (less than) | 1 | ||
Postretirement benefits funded status | 241 | 231 | |
Pension benefit obligation | 241 | 234 | 286 |
AOCL adjustment | 7 | (7) | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | 6 | 8 | 32 |
Curtailment charge | 5 | ||
Accumulated benefit obligation | $ 4,994 | 4,725 | |
United States | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 94.00% | ||
United States | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 6.00% | ||
United States | Other (Income) Expense | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | 19 | ||
United States | Rationalization Charges | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | 13 | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement payments | $ 15 | 22 | |
Service cost | 3 | 4 | 4 |
Increase (decrease) for plan amendment | 0 | 0 | |
Benefits (credit) cost | 73 | 62 | $ 63 |
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 110 | ||
Estimated prior service credit that will be amortized from AOCL into benefits cost in the next year | 0 | ||
Postretirement benefits funded status | $ 229 | $ 289 | |
Weighted average discount rate | 3.85% | 3.09% | 3.18% |
Assumed weighted average long term rate of return | 5.25% | 4.58% | 5.08% |
Pension benefit obligation | $ 5,009 | $ 4,734 | $ 5,331 |
AOCL adjustment | 2,377 | 2,490 | |
United States | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits (credit) cost | 3 | 4 | $ (17) |
Postretirement benefits funded status | $ 106 | $ 112 | |
Weighted average discount rate | 3.79% | 2.99% | 3.02% |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 3,097 | $ 2,688 | |
Non-U.S. | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 95.00% | ||
Non-U.S. | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 5.00% | ||
Non-U.S. | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 247 | 218 | |
Pension benefit obligation | 277 | 244 | |
AOCL adjustment | 82 | 59 | |
Non-U.S. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement payments | 5 | 112 | |
Service cost | 26 | 28 | $ 31 |
Increase (decrease) for plan amendment | (2) | 29 | |
Benefits (credit) cost | 70 | 69 | $ 57 |
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 38 | ||
Estimated prior service credit that will be amortized from AOCL into benefits cost in the next year | 2 | ||
Postretirement benefits funded status | $ 455 | $ 310 | |
Weighted average discount rate | 2.84% | 2.56% | 2.70% |
Assumed weighted average long term rate of return | 2.95% | 3.02% | 3.12% |
Pension benefit obligation | $ 3,195 | $ 2,774 | $ 3,109 |
AOCL adjustment | 807 | 642 | |
Non-U.S. | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits (credit) cost | 4 | 7 | $ 10 |
Postretirement benefits funded status | $ 135 | $ 119 | |
Weighted average discount rate | 6.25% | 6.13% | 5.98% |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | $ 13 | ||
Settlement payments | 103 | ||
Service cost | 13 | ||
BRAZIL | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) for plan amendment | 16 | ||
BRAZIL | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase (decrease) for plan amendment | $ (14) |
Pension, Other Postretirement_4
Pension, Other Postretirement Benefits and Savings Plans - Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Postretirement Benefits | |||
Benefits cost (credit): | |||
Service cost | $ 2 | $ 3 | $ 4 |
Interest cost | 11 | 12 | 13 |
Expected return on plan assets | 0 | 0 | (1) |
Amortization of prior service cost (credit) | (9) | (8) | (29) |
Amortization of net losses | 3 | 4 | 6 |
Net periodic cost (credit) | 7 | 11 | (7) |
Net curtailments/settlements/termination benefits | 0 | 0 | 0 |
Total benefits cost (credit) | 7 | 11 | (7) |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service cost (credit) from plan amendments | 0 | (16) | 3 |
Increase (decrease) in net actuarial losses | 6 | (14) | (15) |
Amortization of prior service (cost) credit in net periodic cost | 9 | 8 | 29 |
Amortization of net losses in net periodic cost | (3) | (5) | (6) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 2 | 0 | 0 |
Total recognized in other comprehensive (income) loss before tax and minority | 14 | (27) | 11 |
Total recognized in total benefits cost (credit) and other comprehensive (income) loss before tax and minority | 21 | (16) | 4 |
United States | Pension Plan | |||
Benefits cost (credit): | |||
Service cost | 3 | 4 | 4 |
Interest cost | 173 | 157 | 160 |
Expected return on plan assets | (223) | (219) | (241) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net losses | 112 | 112 | 111 |
Net periodic cost (credit) | 65 | 54 | 34 |
Net curtailments/settlements/termination benefits | 8 | 8 | 29 |
Total benefits cost (credit) | 73 | 62 | 63 |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service cost (credit) from plan amendments | 0 | 0 | 0 |
Increase (decrease) in net actuarial losses | 4 | 14 | 128 |
Amortization of prior service (cost) credit in net periodic cost | 0 | 0 | 0 |
Amortization of net losses in net periodic cost | (112) | (112) | (111) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (5) | (11) | (29) |
Total recognized in other comprehensive (income) loss before tax and minority | (113) | (109) | (12) |
Total recognized in total benefits cost (credit) and other comprehensive (income) loss before tax and minority | (40) | (47) | 51 |
United States | Other Postretirement Benefits | |||
Benefits cost (credit): | |||
Total benefits cost (credit) | 3 | 4 | (17) |
Non-U.S. | Pension Plan | |||
Benefits cost (credit): | |||
Service cost | 26 | 28 | 31 |
Interest cost | 69 | 69 | 71 |
Expected return on plan assets | (59) | (70) | (80) |
Amortization of prior service cost (credit) | 2 | 0 | 0 |
Amortization of net losses | 29 | 29 | 32 |
Net periodic cost (credit) | 67 | 56 | 54 |
Net curtailments/settlements/termination benefits | 3 | 13 | 3 |
Total benefits cost (credit) | 70 | 69 | 57 |
Recognized in other comprehensive (income) loss before tax and minority: | |||
Prior service cost (credit) from plan amendments | (2) | 31 | 3 |
Increase (decrease) in net actuarial losses | 201 | (18) | 25 |
Amortization of prior service (cost) credit in net periodic cost | (2) | 0 | 0 |
Amortization of net losses in net periodic cost | (29) | (30) | (29) |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (3) | (14) | (12) |
Total recognized in other comprehensive (income) loss before tax and minority | 165 | (31) | (13) |
Total recognized in total benefits cost (credit) and other comprehensive (income) loss before tax and minority | 235 | 38 | 44 |
Non-U.S. | Other Postretirement Benefits | |||
Benefits cost (credit): | |||
Total benefits cost (credit) | $ 4 | $ 7 | $ 10 |
Pension, Other Postretirement_5
Pension, Other Postretirement Benefits and Savings Plans - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation: | |||
Curtailments/settlements/termination benefits | $ 6 | $ 22 | $ 19 |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Beginning balance | (234) | (286) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (2) | (3) | (4) |
Interest cost | (11) | (12) | (13) |
Plan amendments | 0 | 14 | |
Actuarial (loss) gain | (6) | 19 | |
Participant contributions | (12) | (13) | |
Curtailments/settlements/termination benefits | (2) | 0 | |
Foreign currency translation | (5) | 15 | |
Benefit payments | 31 | 32 | |
Ending balance | (241) | (234) | (286) |
Change in plan assets: | |||
Beginning balance | 3 | 4 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions to plan assets | 0 | 2 | |
Cash funding of direct participant payments | 16 | 16 | |
Participant contributions | 12 | 13 | |
Settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit payments | (31) | (32) | |
Ending balance | 0 | 3 | 4 |
Funded status at end of year | (241) | (231) | |
United States | |||
Change in plan assets: | |||
Beginning balance | 4,445 | ||
Ending balance | 4,780 | 4,445 | |
United States | Pension Plan | |||
Change in benefit obligation: | |||
Beginning balance | (4,734) | (5,331) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (3) | (4) | (4) |
Interest cost | (173) | (157) | (160) |
Plan amendments | 0 | 0 | |
Actuarial (loss) gain | (477) | 315 | |
Participant contributions | 0 | 0 | |
Curtailments/settlements/termination benefits | 12 | 25 | |
Foreign currency translation | 0 | 0 | |
Benefit payments | 366 | 418 | |
Ending balance | (5,009) | (4,734) | (5,331) |
Change in plan assets: | |||
Beginning balance | 4,445 | 4,978 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | 696 | (110) | |
Company contributions to plan assets | 0 | 0 | |
Cash funding of direct participant payments | 20 | 17 | |
Participant contributions | 0 | 0 | |
Settlements | (15) | (22) | |
Foreign currency translation | 0 | 0 | |
Benefit payments | (366) | (418) | |
Ending balance | 4,780 | 4,445 | 4,978 |
Funded status at end of year | (229) | (289) | |
United States | Other Postretirement Benefits | |||
Change in plan assets: | |||
Funded status at end of year | (106) | (112) | |
Non-U.S. | |||
Change in plan assets: | |||
Beginning balance | 2,464 | ||
Ending balance | 2,740 | 2,464 | |
Non-U.S. | Pension Plan | |||
Change in benefit obligation: | |||
Beginning balance | (2,774) | (3,109) | |
Newly adopted plans | (19) | 0 | |
Service cost — benefits earned | (26) | (28) | (31) |
Interest cost | (69) | (69) | (71) |
Plan amendments | 2 | (29) | |
Actuarial (loss) gain | (381) | 40 | |
Participant contributions | (2) | (2) | |
Curtailments/settlements/termination benefits | 5 | 113 | |
Foreign currency translation | (62) | 177 | |
Benefit payments | 131 | 133 | |
Ending balance | (3,195) | (2,774) | (3,109) |
Change in plan assets: | |||
Beginning balance | 2,464 | 2,806 | |
Newly adopted plans | 19 | 0 | |
Actual return on plan assets | 252 | 4 | |
Company contributions to plan assets | 39 | 36 | |
Cash funding of direct participant payments | 20 | 21 | |
Participant contributions | 2 | 2 | |
Settlements | (5) | (112) | |
Foreign currency translation | 80 | (160) | |
Benefit payments | (131) | (133) | |
Ending balance | 2,740 | 2,464 | $ 2,806 |
Funded status at end of year | (455) | (310) | |
Non-U.S. | Other Postretirement Benefits | |||
Change in plan assets: | |||
Funded status at end of year | $ (135) | $ (119) |
Pension, Other Postretirement_6
Pension, Other Postretirement Benefits and Savings Plans - Funded Status Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (1,334) | $ (1,345) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (16) | (17) |
Noncurrent liabilities | (225) | (214) |
Net amount recognized | (241) | (231) |
United States | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (16) | (20) |
Noncurrent liabilities | (213) | (269) |
Net amount recognized | (229) | (289) |
Non-U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 237 | 325 |
Current liabilities | (20) | (20) |
Noncurrent liabilities | (672) | (615) |
Net amount recognized | $ (455) | $ (310) |
Pension, Other Postretirement_7
Pension, Other Postretirement Benefits and Savings Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | $ (23) | $ (32) |
Net actuarial loss | 30 | 25 |
Gross amount recognized | 7 | (7) |
Deferred income taxes | (22) | (19) |
Minority shareholders’ equity | 0 | 0 |
Net amount recognized | (15) | (26) |
United States | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | (3) | (3) |
Net actuarial loss | 2,380 | 2,493 |
Gross amount recognized | 2,377 | 2,490 |
Deferred income taxes | (50) | (77) |
Minority shareholders’ equity | 0 | 0 |
Net amount recognized | 2,327 | 2,413 |
Non-U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | 25 | 31 |
Net actuarial loss | 782 | 611 |
Gross amount recognized | 807 | 642 |
Deferred income taxes | (135) | (105) |
Minority shareholders’ equity | (1) | (1) |
Net amount recognized | $ 671 | $ 536 |
Pension, Other Postretirement_8
Pension, Other Postretirement Benefits and Savings Plans - Weighted Average Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.22% | 4.24% | |
Discount rate for determining interest costs, benefit costs | 3.85% | 3.09% | 3.18% |
Expected long term return on plan assets, benefit costs | 5.25% | 4.58% | 5.08% |
United States | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.14% | 4.16% | |
Discount rate for determining interest costs, benefit costs | 3.79% | 2.99% | 3.02% |
Non-U.S. | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 1.98% | 2.69% | |
Rate of compensation increase, benefit obligations | 2.92% | 2.91% | |
Discount rate for determining interest costs, benefit costs | 2.84% | 2.56% | 2.70% |
Expected long term return on plan assets, benefit costs | 2.95% | 3.02% | 3.12% |
Rate of compensation increase, benefit cost | 2.91% | 2.91% | 3.18% |
Non-U.S. | Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 4.39% | 5.03% | |
Discount rate for determining interest costs, benefit costs | 6.25% | 6.13% | 5.98% |
Pension, Other Postretirement_9
Pension, Other Postretirement Benefits and Savings Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Other Postretirement Benefits | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2020 | $ 17 |
2021 | 17 |
2022 | 16 |
2023 | 16 |
2024 | 15 |
2025-2029 | 72 |
United States | Pension Plan | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2020 | 437 |
2021 | 390 |
2022 | 373 |
2023 | 359 |
2024 | 346 |
2025-2029 | 1,623 |
Non-U.S. | Pension Plan | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2020 | 133 |
2021 | 124 |
2022 | 128 |
2023 | 130 |
2024 | 138 |
2025-2029 | $ 721 |
Pension, Other Postretiremen_10
Pension, Other Postretirement Benefits and Savings Plans - Selected Pension Plan Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
All plans: | ||
Accumulated benefit obligation | $ 4,994 | $ 4,725 |
Plans not fully-funded: | ||
Projected benefit obligation | 5,009 | 4,732 |
Accumulated benefit obligation | 4,994 | 4,723 |
Fair value of plan assets | 4,780 | 4,443 |
Non-U.S. | ||
All plans: | ||
Accumulated benefit obligation | 3,097 | 2,688 |
Plans not fully-funded: | ||
Projected benefit obligation | 1,059 | 908 |
Accumulated benefit obligation | 991 | 852 |
Fair value of plan assets | $ 370 | $ 281 |
Pension, Other Postretiremen_11
Pension, Other Postretirement Benefits and Savings Plans - Health Care Cost Trends (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Health care cost trend rate assumed for the next year | 6.30% | 6.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2025 | 2025 |
Accumulated other postretirement benefits obligation, effect of 1% increase | $ 13 | |
Accumulated other postretirement benefits obligation, effect of 1% decrease | (10) | |
Aggregate service and interest cost, effect of 1% Increase | 1 | |
Aggregate service and interest costs, effect of 1% Decrease | $ (1) |
Pension, Other Postretiremen_12
Pension, Other Postretirement Benefits and Savings Plans - Pension Plan Weighted Average Investment Allocation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 100.00% | 100.00% |
United States | Cash and short term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 2.00% | 2.00% |
United States | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 6.00% | 6.00% |
United States | Debt securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 92.00% | 92.00% |
United States | Alternatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 0.00% | 0.00% |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 100.00% | 100.00% |
Non-U.S. | Cash and short term securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 1.00% | 1.00% |
Non-U.S. | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 3.00% | 4.00% |
Non-U.S. | Debt securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 96.00% | 94.00% |
Non-U.S. | Alternatives | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 0.00% | 1.00% |
Pension, Other Postretiremen_13
Pension, Other Postretirement Benefits and Savings Plans - Fair Values of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | $ 4,780 | $ 4,445 |
United States | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 4,031 | 3,425 |
United States | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 47 | 48 |
United States | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 3,980 | 3,375 |
United States | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 4 | 2 |
United States | Cash and short term securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 47 | 48 |
United States | Cash and short term securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 47 | 48 |
United States | Cash and short term securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Cash and short term securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Common and Preferred Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Common and Preferred Stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Common and Preferred Stock | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Common and Preferred Stock | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 9 | 11 |
United States | Equity Securities, Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Mutual Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,577 | 2,344 |
United States | Debt Securities, Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,576 | 2,344 |
United States | Debt Securities, Corporate Bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1 | 0 |
United States | Debt Securities, Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1,120 | 968 |
United States | Debt Securities, Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Government Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1,120 | 968 |
United States | Debt Securities, Government Bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Repurchase Agreements | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Repurchase Agreements | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Repurchase Agreements | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Asset-backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 283 | 63 |
United States | Debt Securities, Asset-backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Asset-backed Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 282 | 63 |
United States | Debt Securities, Asset-backed Securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1 | 0 |
United States | Debt Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 310 | 603 |
United States | Debt Securities, Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Debt Securities, Mutual Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 141 | 90 |
United States | Alternatives, Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2 | 2 |
United States | Alternatives, Insurance Contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Alternatives, Insurance Contracts | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Alternatives, Insurance Contracts | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2 | 2 |
United States | Alternatives, Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2 | 0 |
United States | Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2 | 0 |
United States | Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Equity Securities, Partnership Interests | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 267 | 247 |
United States | Short Term Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 67 | 59 |
United States | Alternatives, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
United States | Investments Before Other Plan Assets | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 4,825 | 4,435 |
United States | Other Assets | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | (45) | 10 |
Non-U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,740 | 2,464 |
Non-U.S. | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,159 | 1,864 |
Non-U.S. | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 178 | 155 |
Non-U.S. | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1,958 | 1,688 |
Non-U.S. | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 23 | 21 |
Non-U.S. | Cash and short term securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 33 | 29 |
Non-U.S. | Cash and short term securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 29 | 26 |
Non-U.S. | Cash and short term securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 4 | 3 |
Non-U.S. | Cash and short term securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Common and Preferred Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 24 | 19 |
Non-U.S. | Equity Securities, Common and Preferred Stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 24 | 19 |
Non-U.S. | Equity Securities, Common and Preferred Stock | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Common and Preferred Stock | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 36 | 14 |
Non-U.S. | Equity Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 36 | 14 |
Non-U.S. | Equity Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 69 | 56 |
Non-U.S. | Equity Securities, Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 5 | 4 |
Non-U.S. | Equity Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 5 | 4 |
Non-U.S. | Equity Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Equity Securities, Mutual Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 11 | 7 |
Non-U.S. | Debt Securities, Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 190 | 171 |
Non-U.S. | Debt Securities, Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 10 | 17 |
Non-U.S. | Debt Securities, Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 180 | 154 |
Non-U.S. | Debt Securities, Corporate Bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,271 | 2,158 |
Non-U.S. | Debt Securities, Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 60 | 62 |
Non-U.S. | Debt Securities, Government Bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,211 | 2,096 |
Non-U.S. | Debt Securities, Government Bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Repurchase Agreements | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | (511) | (641) |
Non-U.S. | Debt Securities, Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Repurchase Agreements | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | (511) | (641) |
Non-U.S. | Debt Securities, Repurchase Agreements | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Asset-backed Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 74 | 67 |
Non-U.S. | Debt Securities, Asset-backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 5 | 5 |
Non-U.S. | Debt Securities, Asset-backed Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 69 | 62 |
Non-U.S. | Debt Securities, Asset-backed Securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 604 | 638 |
Non-U.S. | Debt Securities, Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 19 | 18 |
Non-U.S. | Debt Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 9 | 8 |
Non-U.S. | Debt Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 10 | 10 |
Non-U.S. | Debt Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Debt Securities, Mutual Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 7 | 7 |
Non-U.S. | Alternatives, Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 22 | 19 |
Non-U.S. | Alternatives, Insurance Contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Alternatives, Insurance Contracts | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Alternatives, Insurance Contracts | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 22 | 19 |
Non-U.S. | Alternatives, Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | (4) | 6 |
Non-U.S. | Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | (5) | 4 |
Non-U.S. | Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 1 | 2 |
Non-U.S. | Equity Securities, Partnership Interests | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 0 | 0 |
Non-U.S. | Short Term Securities, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 4 | 7 |
Non-U.S. | Alternatives, Commingled Funds | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 6 | 5 |
Non-U.S. | Investments Before Other Plan Assets | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | 2,860 | 2,584 |
Non-U.S. | Other Assets | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets, fair value | $ (120) | $ (120) |
Pension, Other Postretiremen_14
Pension, Other Postretirement Benefits and Savings Plans - Changes in Fair Value of Plan Assets (Details) - Non-U.S. - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | $ 2,464 | |
Ending balance | 2,740 | $ 2,464 |
Insurance Contracts | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 19 | |
Ending balance | 22 | 19 |
Equity Securities - Commingled Funds | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 14 | |
Ending balance | 36 | 14 |
Other | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 6 | |
Ending balance | (4) | 6 |
Significant Other Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 21 | |
Ending balance | 23 | 21 |
Significant Other Unobservable Inputs (Level 3) | Insurance Contracts | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 19 | |
Ending balance | 22 | 19 |
Significant Other Unobservable Inputs (Level 3) | Equity Securities - Commingled Funds | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Other | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 2 | |
Ending balance | 1 | 2 |
Pension Plan | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 2,464 | 2,806 |
Foreign currency translation | 80 | (160) |
Ending balance | 2,740 | 2,464 |
Pension Plan | Significant Other Unobservable Inputs (Level 3) | Insurance Contracts | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 19 | 18 |
Realized gains (losses) | 0 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 1 | |
Purchases, sales, issuances and settlements (net) | 2 | 2 |
Foreign currency translation | (1) | |
Ending balance | 22 | 19 |
Pension Plan | Significant Other Unobservable Inputs (Level 3) | Real Estate | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 0 | 4 |
Realized gains (losses) | 0 | |
Purchases, sales, issuances and settlements (net) | (4) | |
Foreign currency translation | 0 | |
Ending balance | 0 | |
Pension Plan | Significant Other Unobservable Inputs (Level 3) | Equity Securities - Commingled Funds | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 0 | 131 |
Realized gains (losses) | (1) | |
Purchases, sales, issuances and settlements (net) | (128) | |
Foreign currency translation | (2) | |
Ending balance | 0 | |
Pension Plan | Significant Other Unobservable Inputs (Level 3) | Other | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 2 | 3 |
Realized gains (losses) | 0 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | |
Purchases, sales, issuances and settlements (net) | (1) | (1) |
Foreign currency translation | 0 | |
Ending balance | $ 1 | $ 2 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Potential shares of common stock issued under current stock compensation plan (in shares) | 18,000,000 | ||
Contractual term | 7 years 2 months 12 days | ||
Aggregate intrinsic value of options exercised | $ 3 | $ 9 | $ 18 |
Unearned compensation cost related to unvested portion | $ 36 | ||
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares that count towards shares authorized limit per share granted (in shares) | 1 | ||
Vesting period | 4 years | ||
Stock options conversion basis (in shares) | 1 | ||
Contractual term | 10 years | ||
Cancellation, days after termination of employment | 90 days | ||
Options | Year 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Options | Year 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Options | Year 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Options | Year 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Awards, Excluding Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares that count towards shares authorized limit per share granted (in shares) | 2 | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award performance period | 3 years | ||
Performance Share Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of units earned to units granted | 0.00% | ||
Performance Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of units earned to units granted | 200.00% | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award performance period | 3 years |
Stock Compensation Plans - Opti
Stock Compensation Plans - Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options Outstanding Activity | |||
Options outstanding, beginning of period (in shares) | 5,580,452 | ||
Options granted (in shares) | 0 | ||
Options exercised (in shares) | (240,237) | ||
Options expired (in shares) | (73,556) | ||
Options cancelled (in shares) | (268,638) | ||
Options outstanding, end of period (in shares) | 4,998,021 | 5,580,452 | |
Weighted Average Exercise Price | |||
Options outstanding, beginning of period (in dollars per share) | $ 20.14 | ||
Options granted (in dollars per share) | 0 | ||
Options exercised (in dollars per share) | 8.07 | ||
Options expired (in dollars per share) | 12.08 | ||
Options cancelled (in dollars per share) | 24.11 | ||
Options outstanding, end of period (in dollars per share) | $ 20.61 | $ 20.14 | |
Other Options Information | |||
Options vested and expected to vest (in shares) | 4,966,300 | ||
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 20.53 | ||
Options exercisable (in shares) | 4,709,647 | ||
Options exercisable, weighted average exercise price (in dollars per share) | $ 19.83 | ||
Options available for grant (in shares) | 12,305,582 | ||
Options outstanding, weighted average remaining contractual term | 3 years 8 months 12 days | ||
Options vested and expected to vest, weighted average remaining contractual term | 3 years 8 months 12 days | ||
Options exercisable, weighted average remaining contractual term | 3 years 6 months | ||
Options exercised, aggregate intrinsic value | $ 3 | $ 9 | $ 18 |
Options outstanding, aggregate intrinsic value | 7 | ||
Options vested and expected to vest, aggregate intrinsic value | 6 | ||
Options exercisable, aggregate intrinsic value | $ 7 |
Stock Compensation Plans - Op_2
Stock Compensation Plans - Option Groups Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 4,998,021 | 5,580,452 |
Options exercisable (in shares) | 4,709,647 | |
Options remaining contractual term | 3 years 8 months 12 days | |
Weighted average exercise price for options outstanding (in dollars per share) | $ 20.61 | $ 20.14 |
Weighted average exercise price for options exercisable (in dollars per share) | $ 19.83 | |
Remaining weighted average contractual term for options exercisable | 3 years 6 months | |
Grant Date February 27 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 564,976 | |
Options exercisable (in shares) | 378,284 | |
Options exercise price (in dollars per share) | $ 35.26 | |
Options remaining contractual term | 7 years 2 months 12 days | |
Grant Date February 22 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 549,546 | |
Options exercisable (in shares) | 459,160 | |
Options exercise price (in dollars per share) | $ 29.90 | |
Options remaining contractual term | 6 years 2 months 12 days | |
Grant Date February 23 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 493,730 | |
Options exercisable (in shares) | 493,730 | |
Options exercise price (in dollars per share) | $ 27.16 | |
Options remaining contractual term | 5 years 2 months 12 days | |
Grant Date February 24 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 381,617 | |
Options exercisable (in shares) | 381,617 | |
Options exercise price (in dollars per share) | $ 26.44 | |
Options remaining contractual term | 4 years 2 months 12 days | |
Grant Date February 28 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 913,705 | |
Options exercisable (in shares) | 913,705 | |
Options exercise price (in dollars per share) | $ 12.98 | |
Options remaining contractual term | 3 years 2 months 12 days | |
Grant Date February 27 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 729,530 | |
Options exercisable (in shares) | 729,530 | |
Options exercise price (in dollars per share) | $ 12.94 | |
Options remaining contractual term | 2 years 2 months 12 days | |
Grant Date February 22 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 530,288 | |
Options exercisable (in shares) | 530,288 | |
Options exercise price (in dollars per share) | $ 13.91 | |
Options remaining contractual term | 1 year 1 month 6 days | |
Grant Date February 23 2010 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 322,387 | |
Options exercisable (in shares) | 322,387 | |
Options exercise price (in dollars per share) | $ 12.74 | |
Options remaining contractual term | 3 days | |
All Other Grant Dates | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 512,242 | |
Options exercisable (in shares) | 500,946 | |
Options remaining contractual term | 3 years 8 months 12 days | |
Other options exercise price range, lower range limit (in dollars per share) | $ 9.54 | |
Other options exercise price range, upper range limit (in dollars per share) | 32.72 | |
Weighted average exercise price for options outstanding (in dollars per share) | 20.27 | |
Weighted average exercise price for options exercisable (in dollars per share) | $ 20 | |
Remaining weighted average contractual term for options exercisable | 3 years 7 months 6 days |
Stock Compensation Plans - Assu
Stock Compensation Plans - Assumptions Used (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value of stock options (in dollars per share) | $ 12.05 | ||
Black-Scholes model assumptions: | |||
Expected term (years) | 7 years 2 months 12 days | ||
Interest rate | 2.13% | ||
Volatility | 33.63% | ||
Dividend yield | 1.13% | ||
Options granted in period (in shares) | 0 | 0 |
Stock Compensation Plans - Nonv
Stock Compensation Plans - Nonvested Share Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation | |||
Stock-based compensation expense recognized | $ 27 | $ 16 | $ 22 |
Tax benefit | (7) | (4) | (6) |
After-tax stock-based compensation expense | 20 | 12 | 16 |
Cash payments to settle SARs | 0 | 1 | 1 |
Cash received from stock option exercises | $ 2 | $ 9 | $ 19 |
Performance Share Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period (in shares) | 333,196 | ||
Units granted (in shares) | 453,795 | ||
Units vested (in shares) | (123,681) | ||
Units forfeited (in shares) | (75,310) | ||
Unvested units, end of period (in shares) | 588,000 | 333,196 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Unvested units, beginning of period (in dollars per share) | $ 32.30 | ||
Units granted (in dollars per share) | 18.01 | ||
Units vested (in dollars per share) | 36.78 | ||
Units forfeited (in dollars per share) | 27.24 | ||
Unvested units, end of period (in dollars per share) | $ 20.98 | $ 32.30 | |
Restricted Stock Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period (in shares) | 1,388,433 | ||
Units granted (in shares) | 1,883,570 | ||
Units vested (in shares) | (280,593) | ||
Units forfeited (in shares) | (256,935) | ||
Unvested units, end of period (in shares) | 2,734,475 | 1,388,433 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Unvested units, beginning of period (in dollars per share) | $ 29.81 | ||
Units granted (in dollars per share) | 19.05 | ||
Units vested (in dollars per share) | 29.64 | ||
Units forfeited (in dollars per share) | 25.49 | ||
Unvested units, end of period (in dollars per share) | $ 23.21 | $ 29.81 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, zł in Millions | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)employeeclaim | Dec. 31, 2019EUR (€)claim | Dec. 31, 2019PLN (zł)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017PLN (zł) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||||||
Liability for anticipated environmental matters | $ 48,000,000 | $ 45,000,000 | |||||
Liability for anticipated environment matters, current | 13,000,000 | 10,000,000 | |||||
Workers' compensation liability | 198,000,000 | 224,000,000 | |||||
Workers' compensation liability, current | 39,000,000 | 42,000,000 | |||||
Commitments on contracts that extend beyond one year | 1,600,000,000 | ||||||
Off-balance sheet financial guarantees and other commitments | 74,000,000 | 73,000,000 | |||||
Warranty reserve | 22,000,000 | 18,000,000 | $ 17,000,000 | ||||
Corporate Joint Venture | |||||||
Loss Contingencies [Line Items] | |||||||
Financing receivable, joint venture, face amount | 50,000,000 | ||||||
Loans receivable, related parties | 0 | ||||||
Accounts Receivable | |||||||
Loss Contingencies [Line Items] | |||||||
Indemnification asset | 3,000,000 | ||||||
Other Assets | |||||||
Loss Contingencies [Line Items] | |||||||
Indemnification asset | 22,000,000 | ||||||
Workers' Compensation | |||||||
Loss Contingencies [Line Items] | |||||||
Potential workers' compensation liability in excess of recorded amount | 25,000,000 | ||||||
General Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | 293,000,000 | 322,000,000 | |||||
General Product Liability | Other Current Liabilities | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | 43,000,000 | 57,000,000 | |||||
Asbestos Related Product Liability | |||||||
Loss Contingencies [Line Items] | |||||||
Product liability and other tort claims liability | $ 153,000,000 | 166,000,000 | |||||
Asbestos claims dismissed to date (in claims) | claim | 152,200 | 152,200 | 152,200 | ||||
Accrued asbestos-related liability and gross payments to date | $ 554,000,000 | 545,000,000 | |||||
Product liability contingency, evaluation period | 10 years | ||||||
Asbestos claims receivable | $ 95,000,000 | 108,000,000 | |||||
Expected percentage of asbestos claim related losses recoverable through insurance | 60.00% | 60.00% | 60.00% | ||||
Asbestos claims receivable, current | $ 13,000,000 | $ 13,000,000 | |||||
Limits of excess insurance policies | $ 555,000,000 | ||||||
Amiens Labor Claims | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, number of plaintiffs | employee | 850 | ||||||
Contingent loss | $ 157,000,000 | € 140 | |||||
Unfavorable Regulatory Action | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantee issued | 48,000,000 | zł 181 | $ 47,000,000 | zł 165 | |||
Workers' Compensation Claims | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantee issued | $ 26,000,000 | $ 46,000,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($)claim | |
Number of claims filed | |||
Pending claims, beginning of year (in claims) | 43,100 | 54,300 | 64,400 |
New claims filed during the year (in claims) | 1,500 | 1,300 | 1,900 |
Claims settled/dismissed during the year (in claims) | (5,000) | (12,500) | (12,000) |
Pending claims, end of year (in claims) | 39,600 | 43,100 | 54,300 |
Payments | $ | $ 22 | $ 18 | $ 16 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Changes in Warranty Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty | ||
Warranty reserve, beginning of period | $ 18 | $ 17 |
Payments made during the period | (25) | (26) |
Expense recorded during the period | 29 | 28 |
Translation adjustment | 0 | (1) |
Warranty reserve, end of period | $ 22 | $ 18 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 14, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||
Common stock cash dividends paid | $ 148 | $ 138 | $ 110 | ||
Dividends, share-based compensation | $ 2 | $ 1 | |||
Cash dividends declared per common share (in dollars per share) | $ 0.64 | $ 0.58 | $ 0.44 | ||
Common stock repurchased (in shares) | 52,905,959 | ||||
Average cost of aggregate common stock repurchased (in dollars per share) | $ 28.99 | ||||
Payments for repurchase of common stock | $ 0 | $ 220 | $ 400 | $ 1,534 | |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock cash dividends paid | $ 148 | $ 138 | $ 110 | ||
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation | |||||
Class of Stock [Line Items] | |||||
Common stock repurchased (in shares) | 0 | ||||
Common Stock | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Cash dividends declared per common share (in dollars per share) | $ 0.16 | ||||
Dividends declared on common stock | $ 37 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 5,070 | $ 4,850 | $ 4,725 |
Ending balance | 4,545 | 5,070 | 4,850 |
Foreign Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (1,160) | (915) | (1,155) |
Other comprehensive income (loss) before reclassifications | 4 | (245) | 240 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance | (1,156) | (1,160) | (915) |
Unrecognized Net Actuarial Losses and Prior Service Costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,923) | (3,052) | (3,053) |
Other comprehensive income (loss) before reclassifications | (168) | 4 | (103) |
Amounts reclassified from accumulated other comprehensive loss | 108 | 125 | 104 |
Ending balance | (2,983) | (2,923) | (3,052) |
Deferred Derivative Gains (Losses) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 7 | (9) | 10 |
Other comprehensive income (loss) before reclassifications | 10 | 9 | (20) |
Amounts reclassified from accumulated other comprehensive loss | (14) | 7 | 1 |
Ending balance | 3 | 7 | (9) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (4,076) | (3,976) | (4,198) |
Other comprehensive income (loss) before reclassifications | (154) | (232) | 117 |
Amounts reclassified from accumulated other comprehensive loss | 94 | 132 | 105 |
Ending balance | (4,136) | $ (4,076) | $ (3,976) |
United Kingdom | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Adjustment for frozen plan | $ 32 |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Loss - Schedule of Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (Income) Expense | $ 98 | $ (174) | $ 70 |
United States and Foreign Taxes | 474 | 303 | 513 |
Cost of Goods Sold | 11,602 | 11,961 | 11,680 |
Goodyear Net Income (Loss) | (311) | 693 | 346 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Goodyear Net Income (Loss) | 94 | 132 | 105 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (Income) Expense | 137 | 139 | 117 |
Income (Loss) Attributable to Parent | 143 | 164 | 158 |
United States and Foreign Taxes | (35) | (39) | (54) |
Goodyear Net Income (Loss) | (108) | (125) | (104) |
Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent, Due to Divestitures | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (Income) Expense | 6 | 25 | 41 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
United States and Foreign Taxes | 0 | 0 | (1) |
Cost of Goods Sold | (14) | 7 | 2 |
Goodyear Net Income (Loss) | $ (14) | $ 7 | $ 1 |
Consolidating Financial Infor_3
Consolidating Financial Information - Narrative (Details) - Senior Notes | Dec. 31, 2019USD ($) |
8.75% due 2020 | |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 282,000,000 |
Interest rate, stated percentage | 8.75% |
5.125% due 2023 | |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 1,000,000,000 |
Interest rate, stated percentage | 5.125% |
5% due 2026 | |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 900,000,000 |
Interest rate, stated percentage | 5.00% |
4.875% due 2027 | |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 700,000,000 |
Interest rate, stated percentage | 4.875% |
Consolidating Financial Infor_4
Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | |||||
Cash and Cash Equivalents | $ 908 | $ 801 | $ 1,043 | ||
Accounts Receivable, net | 1,941 | 2,030 | |||
Accounts Receivable From Affiliates | 0 | 0 | |||
Inventories | 2,851 | 2,856 | |||
Prepaid Expenses and Other Current Assets | 234 | 238 | |||
Total Current Assets | 5,934 | 5,925 | |||
Goodwill | 565 | 569 | 595 | ||
Intangible Assets | 137 | 136 | |||
Deferred Income Taxes | 1,527 | $ 1,854 | 1,847 | ||
Other Assets | 959 | 1,136 | |||
Investments in Subsidiaries | 0 | 0 | |||
Operating Lease Right-of-Use Assets | 855 | 882 | 0 | ||
Property, Plant and Equipment | 7,208 | ||||
Property, Plant and Equipment | 7,243 | 7,259 | |||
Total Assets | 17,185 | 16,872 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 2,908 | 2,920 | |||
Accounts Payable to Affiliates | 0 | 0 | |||
Compensation and Benefits | 536 | 471 | |||
Other Current Liabilities | 734 | 737 | |||
Notes Payable and Overdrafts | 348 | 410 | |||
Operating Lease Liabilities due Within One Year | 199 | 204 | 0 | ||
Long Term Debt and Finance Leases Due Within One Year | 562 | 243 | |||
Total Current Liabilities | 5,287 | 4,781 | |||
Operating Lease Liabilities | 668 | 684 | 0 | ||
Long Term Debt and Finance Leases | 4,753 | 5,124 | 5,110 | ||
Compensation and Benefits | 1,334 | 1,345 | |||
Deferred Income Taxes | 90 | 95 | |||
Other Long Term Liabilities | 508 | $ 465 | 471 | ||
Total Liabilities | 12,640 | 11,802 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 233 | 232 | |||
Other Equity | 4,118 | 4,632 | |||
Goodyear Shareholders’ Equity | 4,351 | 4,864 | |||
Minority Shareholders’ Equity — Nonredeemable | 194 | 206 | |||
Total Shareholders’ Equity | 4,545 | 5,070 | $ 4,850 | $ 4,725 | |
Total Liabilities and Shareholders’ Equity | 17,185 | 16,872 | |||
Reportable Legal Entities | Parent Company | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 165 | 127 | |||
Accounts Receivable, net | 644 | 672 | |||
Accounts Receivable From Affiliates | 2,176 | 294 | |||
Inventories | 1,425 | 1,425 | |||
Prepaid Expenses and Other Current Assets | 74 | 76 | |||
Total Current Assets | 4,484 | 2,594 | |||
Goodwill | 24 | 24 | |||
Intangible Assets | 116 | 117 | |||
Deferred Income Taxes | 1,736 | 1,422 | |||
Other Assets | 468 | 524 | |||
Investments in Subsidiaries | 3,564 | 3,758 | |||
Operating Lease Right-of-Use Assets | 534 | 0 | |||
Property, Plant and Equipment | 2,428 | ||||
Property, Plant and Equipment | 2,482 | ||||
Total Assets | 13,354 | 10,921 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 943 | 960 | |||
Accounts Payable to Affiliates | 0 | 0 | |||
Compensation and Benefits | 326 | 286 | |||
Other Current Liabilities | 857 | 310 | |||
Notes Payable and Overdrafts | 0 | 25 | |||
Operating Lease Liabilities due Within One Year | 107 | 0 | |||
Long Term Debt and Finance Leases Due Within One Year | 283 | 2 | |||
Total Current Liabilities | 2,516 | 1,583 | |||
Operating Lease Liabilities | 437 | 0 | |||
Long Term Debt and Finance Leases | 3,313 | 3,550 | |||
Compensation and Benefits | 485 | 569 | |||
Deferred Income Taxes | 0 | 0 | |||
Other Long Term Liabilities | 2,252 | 355 | |||
Total Liabilities | 9,003 | 6,057 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 233 | 232 | |||
Other Equity | 4,118 | 4,632 | |||
Goodyear Shareholders’ Equity | 4,351 | 4,864 | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | 4,351 | 4,864 | |||
Total Liabilities and Shareholders’ Equity | 13,354 | 10,921 | |||
Reportable Legal Entities | Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 46 | 30 | |||
Accounts Receivable, net | 105 | 110 | |||
Accounts Receivable From Affiliates | 0 | 280 | |||
Inventories | 59 | 71 | |||
Prepaid Expenses and Other Current Assets | 321 | 3 | |||
Total Current Assets | 531 | 494 | |||
Goodwill | 0 | 1 | |||
Intangible Assets | 1 | 0 | |||
Deferred Income Taxes | 19 | 27 | |||
Other Assets | 56 | 48 | |||
Investments in Subsidiaries | 393 | 445 | |||
Operating Lease Right-of-Use Assets | 11 | 0 | |||
Property, Plant and Equipment | 443 | ||||
Property, Plant and Equipment | 430 | ||||
Total Assets | 1,454 | 1,445 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 134 | 131 | |||
Accounts Payable to Affiliates | 24 | 0 | |||
Compensation and Benefits | 14 | 14 | |||
Other Current Liabilities | 6 | (4) | |||
Notes Payable and Overdrafts | 0 | 0 | |||
Operating Lease Liabilities due Within One Year | 5 | 0 | |||
Long Term Debt and Finance Leases Due Within One Year | 0 | 0 | |||
Total Current Liabilities | 183 | 141 | |||
Operating Lease Liabilities | 7 | 0 | |||
Long Term Debt and Finance Leases | 167 | 167 | |||
Compensation and Benefits | 98 | 93 | |||
Deferred Income Taxes | 0 | 0 | |||
Other Long Term Liabilities | 7 | 8 | |||
Total Liabilities | 462 | 409 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | 992 | 1,036 | |||
Goodyear Shareholders’ Equity | 992 | 1,036 | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | 992 | 1,036 | |||
Total Liabilities and Shareholders’ Equity | 1,454 | 1,445 | |||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 697 | 644 | |||
Accounts Receivable, net | 1,192 | 1,248 | |||
Accounts Receivable From Affiliates | 0 | 0 | |||
Inventories | 1,398 | 1,387 | |||
Prepaid Expenses and Other Current Assets | 332 | 155 | |||
Total Current Assets | 3,619 | 3,434 | |||
Goodwill | 418 | 420 | |||
Intangible Assets | 20 | 19 | |||
Deferred Income Taxes | 272 | 395 | |||
Other Assets | 2,376 | 564 | |||
Investments in Subsidiaries | 0 | 0 | |||
Operating Lease Right-of-Use Assets | 310 | 0 | |||
Property, Plant and Equipment | 4,358 | ||||
Property, Plant and Equipment | 4,371 | ||||
Total Assets | 11,373 | 9,203 | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 1,831 | 1,829 | |||
Accounts Payable to Affiliates | 2,152 | 574 | |||
Compensation and Benefits | 196 | 171 | |||
Other Current Liabilities | 365 | 431 | |||
Notes Payable and Overdrafts | 348 | 385 | |||
Operating Lease Liabilities due Within One Year | 87 | 0 | |||
Long Term Debt and Finance Leases Due Within One Year | 279 | 241 | |||
Total Current Liabilities | 5,258 | 3,631 | |||
Operating Lease Liabilities | 224 | 0 | |||
Long Term Debt and Finance Leases | 1,273 | 1,393 | |||
Compensation and Benefits | 751 | 683 | |||
Deferred Income Taxes | 90 | 95 | |||
Other Long Term Liabilities | 174 | 108 | |||
Total Liabilities | 7,770 | 5,910 | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | 3,409 | 3,087 | |||
Goodyear Shareholders’ Equity | 3,409 | 3,087 | |||
Minority Shareholders’ Equity — Nonredeemable | 194 | 206 | |||
Total Shareholders’ Equity | 3,603 | 3,293 | |||
Total Liabilities and Shareholders’ Equity | 11,373 | 9,203 | |||
Consolidating Entries and Eliminations | |||||
Current Assets: | |||||
Cash and Cash Equivalents | 0 | 0 | |||
Accounts Receivable, net | 0 | 0 | |||
Accounts Receivable From Affiliates | (2,176) | (574) | |||
Inventories | (31) | (27) | |||
Prepaid Expenses and Other Current Assets | (493) | 4 | |||
Total Current Assets | (2,700) | (597) | |||
Goodwill | 123 | 124 | |||
Intangible Assets | 0 | 0 | |||
Deferred Income Taxes | (500) | 3 | |||
Other Assets | (1,941) | 0 | |||
Investments in Subsidiaries | (3,957) | (4,203) | |||
Operating Lease Right-of-Use Assets | 0 | 0 | |||
Property, Plant and Equipment | (21) | ||||
Property, Plant and Equipment | (24) | ||||
Total Assets | (8,996) | (4,697) | |||
Current Liabilities: | |||||
Accounts Payable — Trade | 0 | 0 | |||
Accounts Payable to Affiliates | (2,176) | (574) | |||
Compensation and Benefits | 0 | 0 | |||
Other Current Liabilities | (494) | 0 | |||
Notes Payable and Overdrafts | 0 | 0 | |||
Operating Lease Liabilities due Within One Year | 0 | 0 | |||
Long Term Debt and Finance Leases Due Within One Year | 0 | 0 | |||
Total Current Liabilities | (2,670) | (574) | |||
Operating Lease Liabilities | 0 | 0 | |||
Long Term Debt and Finance Leases | 0 | 0 | |||
Compensation and Benefits | 0 | 0 | |||
Deferred Income Taxes | 0 | 0 | |||
Other Long Term Liabilities | (1,925) | 0 | |||
Total Liabilities | (4,595) | (574) | |||
Commitments and Contingent Liabilities | |||||
Goodyear Shareholders’ Equity: | |||||
Common Stock | 0 | 0 | |||
Other Equity | (4,401) | (4,123) | |||
Goodyear Shareholders’ Equity | (4,401) | (4,123) | |||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | |||
Total Shareholders’ Equity | (4,401) | (4,123) | |||
Total Liabilities and Shareholders’ Equity | $ (8,996) | $ (4,697) |
Consolidating Financial Infor_5
Consolidating Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements [Line Items] | |||
Net Sales | $ 14,745 | $ 15,475 | $ 15,377 |
Cost of Goods Sold | 11,602 | 11,961 | 11,680 |
Consolidating Statement of Operations | |||
Selling, Administrative and General Expense | 2,323 | 2,312 | 2,279 |
Rationalizations | 205 | 44 | 135 |
Interest Expense | 340 | 321 | 335 |
Other (Income) Expense | 98 | (174) | 70 |
Income before Income Taxes | 177 | 1,011 | 878 |
United States and Foreign Taxes | 474 | 303 | 513 |
Equity in Earnings of Subsidiaries | 0 | 0 | 0 |
Net Income (Loss) | (297) | 708 | 365 |
Less: Minority Shareholders’ Net Income | 14 | 15 | 19 |
Goodyear Net Income (Loss) | (311) | 693 | 346 |
Comprehensive Income (Loss) | (356) | 589 | 603 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 15 | (4) | 35 |
Goodyear Comprehensive Income (Loss) | (371) | 593 | 568 |
Reportable Legal Entities | Parent Company | |||
Condensed Financial Statements [Line Items] | |||
Net Sales | 7,165 | 7,382 | 7,378 |
Cost of Goods Sold | 5,765 | 5,947 | 5,774 |
Consolidating Statement of Operations | |||
Selling, Administrative and General Expense | 1,101 | 1,042 | 980 |
Rationalizations | 86 | 3 | 20 |
Interest Expense | 222 | 221 | 254 |
Other (Income) Expense | 29 | (320) | (60) |
Income before Income Taxes | (38) | 489 | 410 |
United States and Foreign Taxes | (289) | 129 | 417 |
Equity in Earnings of Subsidiaries | (562) | 333 | 353 |
Net Income (Loss) | (311) | 693 | 346 |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 |
Goodyear Net Income (Loss) | (311) | 693 | 346 |
Comprehensive Income (Loss) | (371) | 593 | 568 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 |
Goodyear Comprehensive Income (Loss) | (371) | 593 | 568 |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Condensed Financial Statements [Line Items] | |||
Net Sales | 1,403 | 1,320 | 1,186 |
Cost of Goods Sold | 1,303 | 1,270 | 1,125 |
Consolidating Statement of Operations | |||
Selling, Administrative and General Expense | 34 | 35 | 34 |
Rationalizations | 0 | 1 | 1 |
Interest Expense | 28 | 23 | 10 |
Other (Income) Expense | 15 | 12 | 12 |
Income before Income Taxes | 23 | (21) | 4 |
United States and Foreign Taxes | 6 | (6) | (2) |
Equity in Earnings of Subsidiaries | (28) | 47 | 39 |
Net Income (Loss) | (11) | 32 | 45 |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 |
Goodyear Net Income (Loss) | (11) | 32 | 45 |
Comprehensive Income (Loss) | (43) | 28 | 62 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 |
Goodyear Comprehensive Income (Loss) | (43) | 28 | 62 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Condensed Financial Statements [Line Items] | |||
Net Sales | 9,178 | 9,567 | 9,499 |
Cost of Goods Sold | 7,565 | 7,616 | 7,537 |
Consolidating Statement of Operations | |||
Selling, Administrative and General Expense | 1,189 | 1,235 | 1,265 |
Rationalizations | 119 | 40 | 114 |
Interest Expense | 129 | 105 | 122 |
Other (Income) Expense | (18) | 30 | (12) |
Income before Income Taxes | 194 | 541 | 473 |
United States and Foreign Taxes | 254 | 179 | 101 |
Equity in Earnings of Subsidiaries | 0 | 0 | 0 |
Net Income (Loss) | (60) | 362 | 372 |
Less: Minority Shareholders’ Net Income | 14 | 15 | 19 |
Goodyear Net Income (Loss) | (74) | 347 | 353 |
Comprehensive Income (Loss) | (193) | 143 | 656 |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 15 | (4) | 35 |
Goodyear Comprehensive Income (Loss) | (208) | 147 | 621 |
Consolidating Entries and Eliminations | |||
Condensed Financial Statements [Line Items] | |||
Net Sales | (3,001) | (2,794) | (2,686) |
Cost of Goods Sold | (3,031) | (2,872) | (2,756) |
Consolidating Statement of Operations | |||
Selling, Administrative and General Expense | (1) | 0 | 0 |
Rationalizations | 0 | 0 | 0 |
Interest Expense | (39) | (28) | (51) |
Other (Income) Expense | 72 | 104 | 130 |
Income before Income Taxes | (2) | 2 | (9) |
United States and Foreign Taxes | 503 | 1 | (3) |
Equity in Earnings of Subsidiaries | 590 | (380) | (392) |
Net Income (Loss) | 85 | (379) | (398) |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 |
Goodyear Net Income (Loss) | 85 | (379) | (398) |
Comprehensive Income (Loss) | 251 | (175) | (683) |
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders | 0 | 0 | 0 |
Goodyear Comprehensive Income (Loss) | $ 251 | $ (175) | $ (683) |
Consolidating Financial Infor_6
Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | 75 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | ||||
Total Cash Flows from Operating Activities | $ 1,207 | $ 916 | $ 1,158 | |
Cash Flows from Investing Activities: | ||||
Capital Expenditures | (770) | (811) | (881) | |
Asset Dispositions | 12 | 2 | 12 | |
Short Term Securities Acquired | (113) | (68) | (83) | |
Short Term Securities Redeemed | 106 | 68 | 83 | |
Capital Contributions and Loans Incurred | 0 | 0 | 0 | |
Capital Redemptions and Loans Paid | 0 | 0 | 0 | |
Notes Receivable | (7) | (55) | 0 | |
Other Transactions | (28) | (3) | (10) | |
Total Cash Flows from Investing Activities | (800) | (867) | (879) | |
Cash Flows from Financing Activities: | ||||
Short Term Debt and Overdrafts Incurred | 1,880 | 1,944 | 1,054 | |
Short Term Debt and Overdrafts Paid | (1,933) | (1,795) | (1,046) | |
Long Term Debt Incurred | 5,942 | 6,455 | 6,463 | |
Long Term Debt Paid | (6,008) | (6,469) | (6,342) | |
Common Stock Issued | 1 | 4 | 14 | |
Common Stock Repurchased | 0 | (220) | (400) | $ (1,534) |
Common Stock Dividends Paid | (148) | (138) | (110) | |
Capital Contributions and Loans Incurred | 0 | 0 | 0 | |
Capital Redemptions and Loans Paid | 0 | 0 | 0 | |
Intercompany Dividends Paid | 0 | 0 | 0 | |
Transactions with Minority Interests in Subsidiaries | (26) | (31) | (7) | |
Debt Related Costs and Other Transactions | (15) | 7 | (41) | |
Total Cash Flows from Financing Activities | (307) | (243) | (415) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 1 | (43) | 57 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 101 | (237) | (79) | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 873 | 1,110 | 1,189 | |
Cash, Cash Equivalents and Restricted Cash at End of the Year | 974 | 873 | 1,110 | 974 |
Reportable Legal Entities | Parent Company | ||||
Cash Flows from Operating Activities: | ||||
Total Cash Flows from Operating Activities | 3,541 | 1,771 | 1,192 | |
Cash Flows from Investing Activities: | ||||
Capital Expenditures | (288) | (307) | (305) | |
Asset Dispositions | 0 | 0 | 1 | |
Short Term Securities Acquired | 0 | 0 | 0 | |
Short Term Securities Redeemed | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | (3,286) | (1,205) | (79) | |
Capital Redemptions and Loans Paid | 269 | 282 | 76 | |
Notes Receivable | (7) | (55) | 0 | |
Other Transactions | (18) | 1 | (3) | |
Total Cash Flows from Investing Activities | (3,330) | (1,284) | (310) | |
Cash Flows from Financing Activities: | ||||
Short Term Debt and Overdrafts Incurred | 398 | 965 | 420 | |
Short Term Debt and Overdrafts Paid | (423) | (940) | (420) | |
Long Term Debt Incurred | 2,981 | 3,200 | 3,062 | |
Long Term Debt Paid | (2,983) | (3,260) | (3,151) | |
Common Stock Issued | 1 | 4 | 14 | |
Common Stock Repurchased | 0 | (220) | (400) | |
Common Stock Dividends Paid | (148) | (138) | (110) | |
Capital Contributions and Loans Incurred | 0 | 283 | 292 | |
Capital Redemptions and Loans Paid | 0 | (430) | (563) | |
Intercompany Dividends Paid | 0 | 0 | 0 | |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | |
Debt Related Costs and Other Transactions | (1) | 16 | (35) | |
Total Cash Flows from Financing Activities | (175) | (520) | (891) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 36 | (33) | (9) | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 168 | 201 | 210 | |
Cash, Cash Equivalents and Restricted Cash at End of the Year | 204 | 168 | 201 | 204 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash Flows from Operating Activities: | ||||
Total Cash Flows from Operating Activities | (273) | 32 | 67 | |
Cash Flows from Investing Activities: | ||||
Capital Expenditures | (40) | (61) | (136) | |
Asset Dispositions | 0 | 2 | 1 | |
Short Term Securities Acquired | 0 | 0 | 0 | |
Short Term Securities Redeemed | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | 0 | 0 | 0 | |
Capital Redemptions and Loans Paid | 0 | 88 | 0 | |
Notes Receivable | 0 | 0 | 0 | |
Other Transactions | 0 | 0 | 0 | |
Total Cash Flows from Investing Activities | (40) | 29 | (135) | |
Cash Flows from Financing Activities: | ||||
Short Term Debt and Overdrafts Incurred | 0 | 0 | 0 | |
Short Term Debt and Overdrafts Paid | 0 | 0 | 0 | |
Long Term Debt Incurred | 0 | 15 | 204 | |
Long Term Debt Paid | 0 | 0 | (52) | |
Common Stock Issued | 0 | 0 | 0 | |
Common Stock Repurchased | 0 | 0 | 0 | |
Common Stock Dividends Paid | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | 388 | 67 | 66 | |
Capital Redemptions and Loans Paid | (57) | (77) | (48) | |
Intercompany Dividends Paid | (3) | (65) | (128) | |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | |
Debt Related Costs and Other Transactions | 0 | 0 | 0 | |
Total Cash Flows from Financing Activities | 328 | (60) | 42 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 1 | (3) | 3 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 16 | (2) | (23) | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 30 | 32 | 55 | |
Cash, Cash Equivalents and Restricted Cash at End of the Year | 46 | 30 | 32 | 46 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash Flows from Operating Activities: | ||||
Total Cash Flows from Operating Activities | 82 | (279) | 577 | |
Cash Flows from Investing Activities: | ||||
Capital Expenditures | (442) | (443) | (442) | |
Asset Dispositions | 12 | 0 | 10 | |
Short Term Securities Acquired | (113) | (68) | (83) | |
Short Term Securities Redeemed | 106 | 68 | 83 | |
Capital Contributions and Loans Incurred | (320) | (283) | (292) | |
Capital Redemptions and Loans Paid | 0 | 430 | 563 | |
Notes Receivable | 0 | 0 | 0 | |
Other Transactions | (2,110) | (4) | (7) | |
Total Cash Flows from Investing Activities | (2,867) | (300) | (168) | |
Cash Flows from Financing Activities: | ||||
Short Term Debt and Overdrafts Incurred | 1,482 | 979 | 634 | |
Short Term Debt and Overdrafts Paid | (1,510) | (855) | (626) | |
Long Term Debt Incurred | 2,961 | 3,240 | 3,197 | |
Long Term Debt Paid | (3,025) | (3,209) | (3,139) | |
Common Stock Issued | 0 | 0 | 0 | |
Common Stock Repurchased | 0 | 0 | 0 | |
Common Stock Dividends Paid | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | 3,218 | 1,138 | 13 | |
Capital Redemptions and Loans Paid | (212) | (293) | (28) | |
Intercompany Dividends Paid | (40) | (543) | (548) | |
Transactions with Minority Interests in Subsidiaries | (26) | (31) | (7) | |
Debt Related Costs and Other Transactions | (14) | (9) | (6) | |
Total Cash Flows from Financing Activities | 2,834 | 417 | (510) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | (40) | 54 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 49 | (202) | (47) | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 675 | 877 | 924 | |
Cash, Cash Equivalents and Restricted Cash at End of the Year | 724 | 675 | 877 | 724 |
Consolidating Entries and Eliminations | ||||
Cash Flows from Operating Activities: | ||||
Total Cash Flows from Operating Activities | (2,143) | (608) | (678) | |
Cash Flows from Investing Activities: | ||||
Capital Expenditures | 0 | 0 | 2 | |
Asset Dispositions | 0 | 0 | 0 | |
Short Term Securities Acquired | 0 | 0 | 0 | |
Short Term Securities Redeemed | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | 3,606 | 1,488 | 371 | |
Capital Redemptions and Loans Paid | (269) | (800) | (639) | |
Notes Receivable | 0 | 0 | 0 | |
Other Transactions | 2,100 | 0 | 0 | |
Total Cash Flows from Investing Activities | 5,437 | 688 | (266) | |
Cash Flows from Financing Activities: | ||||
Short Term Debt and Overdrafts Incurred | 0 | 0 | 0 | |
Short Term Debt and Overdrafts Paid | 0 | 0 | 0 | |
Long Term Debt Incurred | 0 | 0 | 0 | |
Long Term Debt Paid | 0 | 0 | 0 | |
Common Stock Issued | 0 | 0 | 0 | |
Common Stock Repurchased | 0 | 0 | 0 | |
Common Stock Dividends Paid | 0 | 0 | 0 | |
Capital Contributions and Loans Incurred | (3,606) | (1,488) | (371) | |
Capital Redemptions and Loans Paid | 269 | 800 | 639 | |
Intercompany Dividends Paid | 43 | 608 | 676 | |
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | |
Debt Related Costs and Other Transactions | 0 | 0 | 0 | |
Total Cash Flows from Financing Activities | (3,294) | (80) | 944 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 0 | 0 | 0 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 0 | 0 | 0 | |
Cash, Cash Equivalents and Restricted Cash at End of the Year | $ 0 | $ 0 | $ 0 | $ 0 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 113 | $ 116 | $ 101 |
Additions, charged (credited) to income | 13 | 21 | 12 |
Additions, charged (credited) to AOCL | 0 | 0 | 0 |
Deductions from reserves | (14) | (19) | (6) |
Translation adjustment during period | (1) | (5) | 9 |
Balance at end of period | 111 | 113 | 116 |
Valuation allowance — deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 317 | 318 | 326 |
Additions, charged (credited) to income | 661 | 18 | (19) |
Additions, charged (credited) to AOCL | 4 | (1) | 0 |
Deductions from reserves | 0 | 0 | 0 |
Translation adjustment during period | 0 | (18) | 11 |
Balance at end of period | $ 982 | $ 317 | $ 318 |
Uncategorized Items - gt-q42019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,000,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (23,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |