Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GOODYEAR TIRE & RUBBER CO /OH/ | ||
Entity Central Index Key | 42,582 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 251,652,040 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 6.7 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Net Sales | $ 15,158 | $ 16,443 | $ 18,138 | |
Cost of Goods Sold | 10,972 | 12,164 | 13,906 | |
Selling, Administrative and General Expense | 2,407 | 2,614 | 2,720 | |
Rationalizations | 210 | 114 | 95 | |
Interest Expense | 372 | 438 | 444 | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ 646 | 0 | 646 | 0 |
Other (Income) Expense | (10) | (141) | 286 | |
Income before Income Taxes | 1,207 | 608 | 687 | |
United States and Foreign Tax (Benefit) Expense | (77) | 232 | (1,834) | |
Net Income | 1,284 | 376 | 2,521 | |
Less: Minority Shareholders’ Net Income | 20 | 69 | 69 | |
Goodyear Net Income | 1,264 | 307 | 2,452 | |
Less: Preferred Stock Dividends | 0 | 0 | 7 | |
Goodyear Net Income available to Common Shareholders | $ 1,264 | $ 307 | $ 2,445 | |
Goodyear Net Income available to Common Shareholders — Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 4.81 | $ 1.14 | $ 9.13 | |
Weighted Average Shares Outstanding (in shares) | 263 | 269 | 268 | |
Diluted (in dollars per share) | $ 4.74 | $ 1.12 | $ 8.78 | |
Weighted Average Shares Outstanding (in shares) | 266 | 273 | 279 | |
Cash Dividends Declared Per Common Share (in dollars per share) | $ 0.31 | $ 0.25 | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,284 | $ 376 | $ 2,521 | |
Other Comprehensive Income (Loss): | ||||
Foreign currency translation net of tax of $(2) in 2016 ($(52) in 2015, $(46) in 2014) | (221) | (315) | (298) | |
Reclassification adjustment for amounts recognized in income net of tax of $0 in all periods | 0 | 16 | 3 | |
Defined benefit plans: | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost net of tax of $33 in 2016 ($34 in 2015, $36 in 2014) | 63 | 69 | 79 | |
Increase in net actuarial losses net of tax of $(53) in 2016 ($(19) in 2015, $(135) in 2014) | (62) | (68) | (82) | |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures net of tax of $0 in 2016 ($67 in 2015, $13 in 2014) | 17 | 259 | 35 | |
Deferred derivative gains net of tax of $4 in 2016 ($3 in 2015, $1 in 2014) | 8 | 17 | 16 | |
Reclassification adjustment for amounts recognized in income net of tax $(1) in 2016 ($(3) in 2015, $(1) in 2014) | (5) | (25) | 1 | |
Unrealized investment gains (losses) net of tax of $0 in 2016 ($(2) in 2015, $1 in 2014) | 0 | (4) | 2 | |
Reclassification adjustment for amounts recognized in income net of tax $0 in 2016 ($2 in 2015, $0 in 2014) | 0 | (32) | 0 | |
Deconsolidation of Venezuelan subsidiary (net of tax) | $ 248 | 0 | 248 | 0 |
Other Comprehensive Income (Loss) | (200) | 165 | (244) | |
Comprehensive Income | 1,084 | 541 | 2,277 | |
Less: Comprehensive Income Attributable to Minority Shareholders | 8 | 6 | 20 | |
Goodyear Comprehensive Income | $ 1,076 | $ 535 | $ 2,257 |
Consolidated Statemetns of Comp
Consolidated Statemetns of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on foreign currency translation | $ (2) | $ (52) | $ (46) |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | 0 |
Defined benefit plans: | |||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 33 | 34 | 36 |
Tax on increase in net actuarial losses | (53) | (19) | (135) |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 67 | 13 |
Tax on deferred derivative gains | 4 | 3 | 1 |
Tax on reclassification adjustment for amounts recognized in income | (1) | (3) | (1) |
Tax on unrealized investment gains | 0 | (2) | 1 |
Tax on unrealized investment gains reclassification adjustment recognized in income | 0 | 2 | 0 |
Tax on deconsolidation of Venezuelan subsidiary | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1,132 | $ 1,476 |
Accounts Receivable | 1,769 | 2,033 |
Inventories | 2,627 | 2,464 |
Prepaid Expenses and Other Current Assets | 190 | 153 |
Total Current Assets | 5,718 | 6,126 |
Goodwill | 535 | 555 |
Intangible Assets | 136 | 138 |
Deferred Income Taxes | 2,414 | 2,141 |
Other Assets | 668 | 654 |
Property, Plant and Equipment | 7,040 | 6,777 |
Total Assets | 16,511 | 16,391 |
Current Liabilities: | ||
Accounts Payable-Trade | 2,589 | 2,769 |
Compensation and Benefits | 584 | 666 |
Other Current Liabilities | 963 | 886 |
Notes Payable and Overdrafts | 245 | 49 |
Long Term Debt and Capital Leases Due Within One Year | 436 | 585 |
Total Current Liabilities | 4,817 | 4,955 |
Long Term Debt and Capital Leases | 4,798 | 5,074 |
Compensation and Benefits | 1,460 | 1,468 |
Deferred Income Taxes | 85 | 91 |
Other Long Term Liabilities | 626 | 661 |
Total Liabilities | 11,786 | 12,249 |
Commitments and Contingent Liabilities | ||
Common Stock, no par value: | ||
Authorized, 450 million shares, Outstanding shares — 252 million (267 million in 2015) | 252 | 267 |
Capital Surplus | 2,645 | 3,093 |
Retained Earnings | 5,808 | 4,570 |
Accumulated Other Comprehensive Loss | (4,198) | (4,010) |
Goodyear Shareholders’ Equity | 4,507 | 3,920 |
Minority Shareholders’ Equity — Nonredeemable | 218 | 222 |
Total Shareholders’ Equity | 4,725 | 4,142 |
Total Liabilities and Shareholders’ Equity | $ 16,511 | $ 16,391 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
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) | 252,000,000 | 267,000,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Goodyear Shareholders' Equity | Minority Shareholders' Equity - Non-Redeemable | Total | Minority Shareholders' Equity - Redeemable |
Preferred stock beginning balance (in shares) at Dec. 31, 2013 | 10,000,000 | |||||||||
Common stock beginning balance (in shares) at Dec. 31, 2013 | 247,753,029 | |||||||||
Beginning balance at Dec. 31, 2013 | $ 500 | $ 248 | $ 2,847 | $ 1,946 | $ (3,935) | $ 1,606 | $ 262 | $ 1,868 | ||
Comprehensive income (loss): | ||||||||||
Net income | $ 2,521 | 2,452 | 2,452 | 23 | 2,475 | $ 46 | ||||
Foreign currency translation (net of tax) | (298) | (206) | (206) | (18) | (224) | (74) | ||||
Reclassification adjustment for amounts recognized in income (net of tax) | 3 | 3 | 3 | 3 | ||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 79 | 74 | 74 | 74 | 5 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (82) | (112) | (112) | (112) | 30 | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 35 | 31 | 31 | 31 | 4 | |||||
Deferred derivative gains (losses) (net of tax) | 16 | 13 | 13 | 13 | 3 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | 1 | 1 | ||||||||
Unrealized investment gains (losses) (net of tax) | 2 | 2 | 2 | 2 | ||||||
Reclassification adjustment for amounts recognized in income (net of tax) | 0 | |||||||||
Deconsolidation of Venezuelan subsidiary (net of tax) | 0 | |||||||||
Other Comprehensive Income (Loss) | (244) | (195) | (18) | (213) | (31) | |||||
Comprehensive Income | 2,277 | 2,257 | 5 | 2,262 | 15 | |||||
Purchase of subsidiary shares from minority interest | (4) | (1) | (5) | (16) | (21) | 0 | ||||
Dividends declared to minority shareholders | (16) | (16) | (10) | |||||||
Stock-based compensation plans | 20 | 20 | 20 | |||||||
Repurchase of common stock (in shares) | (8,955,107) | |||||||||
Repurchase of common stock | $ (9) | (225) | (234) | (234) | ||||||
Dividends declared | (67) | (67) | (67) | |||||||
Common stock issued from treasury (in shares) | 3,111,843 | |||||||||
Common stock issued from treasury | $ 2 | 31 | 33 | 33 | ||||||
Preferred stock conversion (in shares) | (10,000,000) | 27,573,735 | ||||||||
Preferred stock conversion | $ (500) | $ 28 | 472 | 0 | ||||||
Preferred stock ending balance (in shares) at Dec. 31, 2014 | 0 | |||||||||
Common stock ending balance (in shares) at Dec. 31, 2014 | 269,483,500 | |||||||||
Ending balance at Dec. 31, 2014 | $ 0 | $ 269 | 3,141 | 4,331 | (4,131) | 3,610 | 235 | 3,845 | ||
Beginning balance at Dec. 31, 2013 | 577 | |||||||||
Comprehensive income (loss): | ||||||||||
Net income | 2,521 | 2,452 | 2,452 | 23 | 2,475 | 46 | ||||
Foreign currency translation (net of tax) | (298) | (206) | (206) | (18) | (224) | (74) | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 79 | 74 | 74 | 74 | 5 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (82) | (112) | (112) | (112) | 30 | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 35 | 31 | 31 | 31 | 4 | |||||
Deferred derivative gains (losses) (net of tax) | 16 | 13 | 13 | 13 | 3 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | 1 | 1 | ||||||||
Other Comprehensive Income (Loss) | (244) | (195) | (18) | (213) | (31) | |||||
Comprehensive Income | 2,277 | 2,257 | 5 | 2,262 | 15 | |||||
Dividends declared to minority shareholders | (16) | (16) | (10) | |||||||
Dissolution of global alliance | (4) | (1) | (5) | (16) | (21) | 0 | ||||
Ending balance at Dec. 31, 2014 | 582 | |||||||||
Comprehensive income (loss): | ||||||||||
Net income | 376 | 307 | 307 | 22 | 329 | 47 | ||||
Foreign currency translation (net of tax) | (315) | (251) | (251) | (26) | (277) | (38) | ||||
Reclassification adjustment for amounts recognized in income (net of tax) | 16 | 16 | 16 | 16 | ||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 69 | 66 | 66 | 66 | 3 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (68) | (68) | (68) | (68) | 0 | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 259 | 259 | 259 | 259 | 0 | |||||
Deferred derivative gains (losses) (net of tax) | 17 | 15 | 15 | 15 | 2 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | (25) | (21) | (21) | (21) | (4) | |||||
Unrealized investment gains (losses) (net of tax) | (4) | (4) | (4) | (4) | ||||||
Reclassification adjustment for amounts recognized in income (net of tax) | (32) | (32) | (32) | (32) | ||||||
Deconsolidation of Venezuelan subsidiary (net of tax) | 248 | 248 | 248 | 248 | ||||||
Other Comprehensive Income (Loss) | 165 | 228 | (26) | 202 | (37) | |||||
Comprehensive Income | $ 541 | 535 | (4) | 531 | 10 | |||||
Purchase of subsidiary shares from minority interest | 60 | (107) | (47) | (47) | (592) | |||||
Dividends declared to minority shareholders | (9) | (9) | 0 | |||||||
Stock-based compensation plans | 19 | 19 | 19 | |||||||
Repurchase of common stock (in shares) | (5,647,429) | |||||||||
Repurchase of common stock | $ (5) | (175) | (180) | (180) | ||||||
Dividends declared | (68) | (68) | (68) | |||||||
Common stock issued from treasury (in shares) | 3,181,911 | |||||||||
Common stock issued from treasury | $ 3 | 48 | 51 | 51 | ||||||
Common stock ending balance (in shares) at Dec. 31, 2015 | 267,000,000 | 267,017,982 | ||||||||
Ending balance at Dec. 31, 2015 | $ 4,142 | $ 267 | 3,093 | 4,570 | (4,010) | 3,920 | 222 | 4,142 | ||
Comprehensive income (loss): | ||||||||||
Net income | 376 | 307 | 307 | 22 | 329 | 47 | ||||
Foreign currency translation (net of tax) | (315) | (251) | (251) | (26) | (277) | (38) | ||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 69 | 66 | 66 | 66 | 3 | |||||
Decrease (increase) in net actuarial losses (net of tax) | (68) | (68) | (68) | (68) | 0 | |||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 259 | 259 | 259 | 259 | 0 | |||||
Deferred derivative gains (losses) (net of tax) | 17 | 15 | 15 | 15 | 2 | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | (25) | (21) | (21) | (21) | (4) | |||||
Other Comprehensive Income (Loss) | 165 | 228 | (26) | 202 | (37) | |||||
Comprehensive Income | 541 | 535 | (4) | 531 | 10 | |||||
Dividends declared to minority shareholders | (9) | (9) | 0 | |||||||
Dissolution of global alliance | 60 | (107) | (47) | (47) | (592) | |||||
Ending balance at Dec. 31, 2015 | $ 0 | |||||||||
Comprehensive income (loss): | ||||||||||
Adoption of new accounting standard | 56 | 56 | 56 | |||||||
Net income | 1,284 | 1,264 | 1,264 | 20 | 1,284 | |||||
Foreign currency translation (net of tax) | (221) | (209) | (209) | (12) | (221) | |||||
Reclassification adjustment for amounts recognized in income (net of tax) | 0 | |||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 63 | 63 | 63 | 63 | ||||||
Decrease (increase) in net actuarial losses (net of tax) | (62) | (62) | (62) | (62) | ||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 17 | 17 | 17 | 17 | ||||||
Deferred derivative gains (losses) (net of tax) | 8 | 8 | 8 | 8 | ||||||
Reclassification adjustment for amounts recognized in income (net of tax) | (5) | (5) | (5) | (5) | ||||||
Unrealized investment gains (losses) (net of tax) | 0 | |||||||||
Reclassification adjustment for amounts recognized in income (net of tax) | 0 | |||||||||
Deconsolidation of Venezuelan subsidiary (net of tax) | 0 | |||||||||
Other Comprehensive Income (Loss) | (200) | (188) | (12) | (200) | ||||||
Comprehensive Income | $ 1,084 | 1,076 | 8 | 1,084 | ||||||
Dividends declared to minority shareholders | (12) | (12) | ||||||||
Stock-based compensation plans | 24 | 24 | 24 | |||||||
Repurchase of common stock (in shares) | (16,706,392) | |||||||||
Repurchase of common stock | $ (17) | (483) | (500) | (500) | ||||||
Dividends declared | (82) | (82) | (82) | |||||||
Common stock issued from treasury (in shares) | 1,284,944 | |||||||||
Common stock issued from treasury | $ 2 | 11 | 13 | 13 | ||||||
Common stock ending balance (in shares) at Dec. 31, 2016 | 252,000,000 | 251,596,534 | ||||||||
Ending balance at Dec. 31, 2016 | $ 4,725 | $ 252 | $ 2,645 | 5,808 | (4,198) | 4,507 | 218 | 4,725 | ||
Comprehensive income (loss): | ||||||||||
Net income | 1,284 | $ 1,264 | 1,264 | 20 | 1,284 | |||||
Foreign currency translation (net of tax) | (221) | (209) | (209) | (12) | (221) | |||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax) | 63 | 63 | 63 | 63 | ||||||
Decrease (increase) in net actuarial losses (net of tax) | (62) | (62) | (62) | (62) | ||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax) | 17 | 17 | 17 | 17 | ||||||
Deferred derivative gains (losses) (net of tax) | 8 | 8 | 8 | 8 | ||||||
Reclassification adjustment for amounts recognized in income (net of tax) | (5) | $ (5) | (5) | (5) | ||||||
Other Comprehensive Income (Loss) | (200) | (188) | (12) | (200) | ||||||
Comprehensive Income | $ 1,084 | $ 1,076 | 8 | 1,084 | ||||||
Dividends declared to minority shareholders | $ (12) | $ (12) |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax on foreign currency translation | $ (2) | $ (52) | $ (46) | |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | 0 | |
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 33 | 34 | 36 | |
Tax on increase in net actuarial losses | (53) | (19) | (135) | |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 67 | 13 | |
Tax on deferred derivative gains | 4 | 3 | 1 | |
Tax on deferred derivative gains reclassification adjustment for amounts recognized in income | (1) | (3) | (1) | |
Tax on unrealized investment gains | 0 | (2) | 1 | |
Tax on unrealized investment gains reclassification adjustment recognized in income | $ 0 | $ 2 | $ 0 | |
Total | ||||
Common treasury shares (in shares) | 26,866,893,000,000 | 11,445,445,000,000 | 8,979,927,000,000 | 3,136,663,000,000 |
Tax on foreign currency translation | $ (2) | $ (52) | $ (46) | |
Tax on foreign currency translation reclassification adjustment recognized in income | 0 | 0 | ||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 33 | 34 | 36 | |
Tax on increase in net actuarial losses | (53) | (19) | (129) | |
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 67 | 13 | |
Tax on deferred derivative gains | 4 | 3 | 1 | |
Tax on deferred derivative gains reclassification adjustment for amounts recognized in income | $ (1) | (3) | ||
Tax on unrealized investment gains | (2) | 1 | ||
Tax on unrealized investment gains reclassification adjustment recognized in income | 2 | |||
Tax on deconsolidation of subsidiary | 0 | |||
Minority Shareholders' Equity - Redeemable | ||||
Tax on foreign currency translation | 0 | 0 | ||
Tax on amortization of prior service cost and unrecognized gains and losses included in total benefit cost | 0 | 0 | ||
Tax on increase in net actuarial losses | 0 | 6 | ||
Tax on immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 0 | ||
Tax on prior service credit from plan amendments | 0 | 0 | ||
Tax on deferred derivative gains | 0 | 0 | ||
Tax on deferred derivative gains reclassification adjustment for amounts recognized in income | $ 0 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $ 1,284 | $ 376 | $ 2,521 |
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities: | |||
Depreciation and Amortization | 727 | 698 | 732 |
Amortization and Write-Off of Debt Issuance Costs | 29 | 23 | 14 |
Provision for Deferred Income Taxes | (229) | 79 | (1,970) |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | 646 | 0 |
Net Pension Curtailments and Settlements | 17 | 139 | 39 |
Net Rationalization Charges | 210 | 114 | 95 |
Rationalization Payments | (86) | (144) | (226) |
Net gains on asset sales | (31) | (71) | (3) |
Pension Contributions and Direct Payments | (89) | (103) | (1,338) |
Net Venezuela Currency Loss | 0 | 0 | 200 |
Gain on Recognition of Deferred Royalty Revenue | 0 | (155) | 0 |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | |||
Accounts Receivable | 211 | (31) | 75 |
Inventories | (172) | (89) | (35) |
Accounts Payable — Trade | (156) | 78 | (41) |
Compensation and Benefits | (50) | 66 | 223 |
Other Current Liabilities | (56) | (28) | (40) |
Other Assets and Liabilities | (105) | 89 | 94 |
Total Cash Flows from Operating Activities | 1,504 | 1,687 | 340 |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (996) | (983) | (923) |
Asset Dispositions | 35 | 62 | 18 |
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | (320) | 0 |
Decrease (Increase) in Restricted Cash | 6 | (6) | 5 |
Short Term Securities Acquired | (72) | (77) | (72) |
Short Term Securities Redeemed | 60 | 69 | 95 |
Other Transactions | (6) | (7) | 26 |
Total Cash Flows from Investing Activities | (973) | (1,262) | (851) |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 417 | 103 | 46 |
Short Term Debt and Overdrafts Paid | (228) | (84) | (24) |
Long Term Debt Incurred | 4,988 | 2,819 | 1,842 |
Long Term Debt Paid | (5,433) | (3,315) | (1,555) |
Common Stock Issued | 13 | 53 | 39 |
Common Stock Repurchased | (500) | (180) | (234) |
Common Stock Dividends Paid | (82) | (68) | (60) |
Preferred Stock Dividends Paid | 0 | 0 | (15) |
Transactions with Minority Interests in Subsidiaries | (11) | (9) | (49) |
Debt Related Costs and Other Transactions | (24) | (33) | (1) |
Dissolution of Global Alliance | 0 | (271) | 0 |
Total Cash Flows from Financing Activities | (860) | (985) | (11) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (15) | (125) | (313) |
Net Change in Cash and Cash Equivalents | (344) | (685) | (835) |
Cash and Cash Equivalents at Beginning of the Year | 1,476 | 2,161 | 2,996 |
Cash and Cash Equivalents at End of the Year | $ 1,132 | $ 1,476 | $ 2,161 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016, we adopted an accounting standards update with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. As required by the new standard, management completed its evaluation and identified no probable conditions or events, individually or in the aggregate, that would raise a substantial doubt about the Company's ability to continue as a going concern. In March 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance on employee share-based payment accounting. This update involves several aspects of the accounting for share-based payment transactions, including income tax effects, forfeitures and classifications on the statement of cash flows. The new standard eliminates the accounting for excess tax benefits recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital, and instead requires all tax effects related to share-based payments to be recorded as a discrete adjustment through the income statement and recognized regardless of whether the benefit reduces taxes payable in the current period. We adopted the standards update in the third quarter of 2016 effective January 1, 2016, using a modified retrospective approach. As a result of the adoption, a cumulative effect adjustment to increase retained earnings by $56 million as of January 1, 2016 has been reflected in the financial statements to include all tax benefits that were not previously recognized. Also, for the year ended December 31, 2016, we have recognized an income tax benefit of approximately $5 million . The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. All tax related cash flows resulting from share-based payments will be reported as operating activities in the statement of cash flows. Effective January 1, 2016, we adopted an accounting standards update with new guidance on the presentation of debt issuance costs that requires costs incurred to issue debt to be presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Debt issuance costs incurred in connection with line-of-credit arrangements will be presented as an asset. The new guidance also requires the amortization of such costs be reported in Interest Expense in the Statement of Operations. The adoption of this standards update resulted in reclassifications of $15 million from Prepaid Expenses and Other Current Assets and $33 million from Other Assets which decreased Long Term Debt and Capital Leases Due Within One Year by $2 million and Long Term Debt and Capital Leases by $46 million at December 31, 2015. The adoption of this standards update also resulted in a reclassification of $26 million and $16 million of expense from Other (Income) Expense to Interest Expense in the Statement of Operations for the years ended December 31, 2015 and 2014, respectively. Recently Issued Accounting Standards In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019. The adoption of this standards update is not expected to impact our consolidated financial statements. In November 2016, the FASB issued an accounting standards update with new guidance on the presentation of restricted cash on the statement of cash flows. The standards update requires that the reconciliation of the beginning and end of period cash amounts shown in the statement of cash flows include restricted cash. When restricted cash is presented separately from cash and cash equivalents on the balance sheet, a reconciliation is required between the amounts presented on the statement of cash flows and the balance sheet. Also, the new guidance requires the disclosure of information about the nature of the restrictions. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In October 2016, the FASB issued an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers . The standards update is effective using the modified retrospective approach for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update with new guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in the standards update provide guidance on eight specific cash flow issues. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update with new guidance on the transition to the equity method of accounting. This update eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. Instead, the investor is required to apply the equity method prospectively from the date the investment qualifies for the equity method. In addition, an entity that has an available-for-sale equity security that becomes qualified for the equity method must recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment qualifies for the equity method. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet. Lessor accounting is largely unchanged from the current accounting model. The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. It must be adopted using a modified retrospective approach, and provides for certain practical expedients. The transition will require application at the beginning of the earliest comparative period presented at the time of adoption. We are currently assessing the impact of this standards update on our consolidated financial statements. In July 2015, the FASB issued an accounting standards update with new guidance on the measurement of inventory. Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In 2016, the FASB issued accounting standards updates to address implementation issues and to clarify the guidance for identifying performance obligations, licenses and determining if a company is the principal or agent in a revenue arrangement. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. The standard permits the use of either a retrospective or modified retrospective application. We intend to use the modified retrospective approach. We have substantially completed our evaluation of significant contracts and are currently assessing the impact of adopting the standards update on our consolidated financial statements. We will continue our evaluation of the standards update through the date of adoption. Other During the fourth quarter of 2015, the value of pension assets used in the calculation of pension expense for our Canadian plans was changed from market-related value to fair value. This change is considered preferable because it better reflects recent gains or losses from pension assets in pension expense. As a result, all of our pension plans now use fair value in the calculation of pension expense. The change to the fair value method for these plans was retrospectively applied by restating all periods presented. The impact on the consolidated financial statements for the prior periods presented was insignificant. Principles of Consolidation The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation. Deconsolidation of Venezuelan Subsidiary Our wholly-owned subsidiary, C.A. Goodyear de Venezuela, manufactures, markets and distributes consumer and commercial tires throughout Venezuela. Conditions in Venezuela, including currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, have resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar fuerte and the U.S. dollar, and have restricted the ability of our Venezuelan subsidiary to pay dividends and royalties and to settle liabilities. These currency exchange regulations, combined with other government regulations such as price and profit margin controls and strict labor laws, have significantly limited our ability to make and execute operational decisions at our Venezuelan subsidiary. This lack of currency exchangeability, combined with these other operating restrictions, have significantly limited our Venezuelan subsidiary's ability to maintain normal production and control over its operations. We expect these conditions to continue for the foreseeable future. As a result of these conditions, we concluded that effective as of December 31, 2015, we did not meet the accounting criteria for control over our Venezuelan subsidiary and began reporting the results of our Venezuelan subsidiary using the cost method of accounting. This change resulted in a pre-tax charge of $646 million in the fourth quarter of 2015. The pre-tax charge included the derecognition of the carrying amounts of our Venezuelan subsidiary's assets and liabilities, including $320 million of Cash and Cash Equivalents, that are no longer reported in the Consolidated Balance Sheet as of December 31, 2015. The pre-tax charge also included $248 million of foreign currency translation losses and pension losses previously included in Accumulated Other Comprehensive Loss ("AOCL") in the Company’s Consolidated Balance Sheet. We have determined the fair value of our investment in, and receivables from, our Venezuelan subsidiary to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. Reporting periods beginning after December 31, 2015 do not include the operating results of our Venezuelan subsidiary. We now record income from sales of inventory and raw materials or from dividends or royalties to the extent cash is received from our Venezuelan subsidiary. Our exposure to future losses resulting from our Venezuelan subsidiary is limited to the extent that we decide to provide raw materials or finished goods to, or make future investments in, our Venezuelan subsidiary. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes to the consolidated financial statements. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates, including those related to: • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • workers’ compensation, • general and product liabilities and other litigation, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. Revenue Recognition and Accounts Receivable Valuation Revenues are recognized when finished products are shipped to unaffiliated customers, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, and collectability is reasonably assured. A provision for sales returns, discounts and allowances is recorded at the time of sale. Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk. The adequacy of the allowances are assessed quarterly. Shipping and Handling Costs Costs incurred for transportation of products to customers are recorded as a component of Cost of Goods Sold (“CGS”). Research and Development Costs Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. Research and development expenditures were $388 million , $382 million and $399 million in 2016 , 2015 and 2014 , respectively. Warranty Warranties are provided on the sale of certain of our products and services and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties we offer is on a prorated basis. Warranty reserves are based on past claims experience, sales history and other considerations. Refer to Note 19 . Environmental Cleanup Matters We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. We determine our liability on a site by site basis and record a liability at the time when it is probable and can be reasonably estimated. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Our estimated liability is not discounted or reduced for possible recoveries from insurance carriers. Refer to Note 19 . Legal Costs We record a liability for estimated legal and defense costs related to pending general and product liability claims, environmental matters and workers’ compensation claims. Refer to Note 19 . Advertising Costs Costs incurred for producing and communicating advertising are generally expensed when incurred as a component of Selling, Administrative and General Expense (“SAG”). Costs incurred under our cooperative advertising programs with dealers and franchisees are generally recorded as reductions of sales as related revenues are recognized. Advertising costs, including costs for our cooperative advertising programs with dealers and franchisees, were $355 million , $385 million and $430 million in 2016 , 2015 and 2014 , 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. Other costs generally include non-cancelable lease costs, contract terminations, and relocation costs. A liability for these costs is recognized in the period in which the liability is incurred. Rationalization charges related to accelerated depreciation and asset impairments are recorded in CGS or SAG. Refer to Note 2 . Income Taxes Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between carrying values of assets and liabilities for financial reporting purposes and such carrying values as measured under applicable tax laws. The effect on deferred tax assets or liabilities of a change in the tax law or tax rate is recognized in the period the change is enacted. Valuation allowances are recorded to reduce net deferred tax assets to the amount that is more likely than not to be realized. The calculation of our tax liabilities also involves considering uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain income tax positions based on our estimate of whether it is more likely than not that additional taxes will be required and we report related interest and penalties as income taxes. Refer to Note 6 . Cash and Cash Equivalents / Consolidated Statements of Cash Flows Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Substantially all of our cash and short-term investment securities are held with investment grade-rated counterparties. At December 31, 2016 , our cash investments with any single counterparty did not exceed $229 million . Cash flows associated with derivative financial instruments designated as hedges of identifiable transactions or events are classified in the same category as the cash flows from the related hedged items. Cash flows associated with derivative financial instruments not designated as hedges are classified as operating activities. Bank overdrafts are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. Customer prepayments for products and government grants received that are related to operations are reported as operating activities. Government grants received that are solely related to capital expenditures are reported as investing activities. The Consolidated Statements of Cash Flows are presented net of capital leases of $3 million , $3 million and $12 million originating in the years ended December 31, 2016 , 2015 and 2014 , respectively. Cash flows from investing activities in 2016 exclude $240 million of accrued capital expenditures remaining unpaid at December 31, 2016, and include payment for $254 million of capital expenditures that were accrued and unpaid at December 31, 2015. Cash flows from investing activities in 2015 exclude $254 million of accrued capital expenditures remaining unpaid at December 31, 2015, and include payment for $212 million of capital expenditures that were accrued and unpaid at December 31, 2014. Restricted Net Assets In certain countries where we operate, transfers of funds into or out of such countries by way of dividends, loans or advances are generally or periodically subject to various governmental regulations. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make cash distributions. At December 31, 2016 , approximately $735 million of net assets were subject to such regulations or limitations. Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We determine a provision for excess and obsolete inventory based on management’s review of inventories on hand compared to estimated future usage and sales. Refer to Note 10 . Goodwill and Other Intangible Assets Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then the amount of the impairment loss, if any, must be measured. In addition to annual testing, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives, and reviewed for impairment whenever events or circumstances warrant such a review. Refer to Note 11 . Investments Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable securities classified as available-for-sale are recorded in AOCL, net of tax. We regularly review our investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the Consolidated Statements of Operations. Refer to Notes 12 and 21 . Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are solely related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. Depreciation expense for property, plant and equipment was $726 million , $697 million and $730 million in 2016 , 2015 and 2014 , respectively. Refer to Notes 3 and 13 . Foreign Currency Translation The functional currency for most subsidiaries outside the United States is the local currency. Financial statements of these subsidiaries are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for revenues, expenses, gains and losses. The U.S. dollar is used as the functional currency in countries with a history of high inflation and in countries that predominantly sell into the U.S. dollar export market. For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in Other (Income) Expense. Translation adjustments are recorded in AOCL. Income taxes are generally not provided for foreign currency translation adjustments. Derivative Financial Instruments and Hedging Activities To qualify for hedge accounting, hedging instruments must be designated as hedges and meet defined correlation and effectiveness criteria. These criteria require that the anticipated cash flows and/or changes in fair value of the hedging instrument substantially offset those of the position being hedged. Derivative contracts are reported at fair value on the Consolidated Balance Sheets as Accounts Receivable, 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. Ineffectiveness in hedging relationships is recorded in Other (Income) Expense in the current period. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other (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 recognized in Other (Income) Expense over the life of the contract. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — Gains and losses (including deferred gains and losses in AOCL) are recognized in Other (Income) Expense when contracts are terminated concurrently with the termination of the hedged position. To the extent that such position remains outstanding, gains and losses are amortized to Interest Expense or to Other (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 15 . Stock-Based Compensation We measure compensation cost arising from the grant of stock-based awards to employees at fair value and recognize such cost in income over the period during which the service is provided, usually the vesting period. We recognize compensation expense using the straight-line approach. Stock-based awards to employees include grants of performance share units, restricted stock units and stock options. We measure the fair value of grants of performance share units and restricted stock units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. We estimate the fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate compensation expense are determined as follows: • Expected term represents the period of time that options granted are expected to be outstanding based on our historical experience of option exercises; • Expected volatility is measured using the weighted average of historical daily changes in the market price of our common stock over the expected term of the award and implied volatility calculated for our exchange traded options with an expi |
Costs Associated with Rationali
Costs Associated with Rationalization Programs | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Rationalization Programs | Costs Associated with Rationalization Programs In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce excess and high-cost manufacturing capacity and to reduce associate headcount. The following table presents the roll-forward of the liability balance between periods: (In millions) Associate-related Costs Other Costs Total Balance at December 31, 2013 $ 232 $ 5 $ 237 2014 charges 76 52 128 Incurred, Net of Foreign Currency Translation of $(18) million and $0 million, respectively (1) (186 ) (49 ) (235 ) Reversed to the Statement of Operations (5 ) (6 ) (11 ) Balance at December 31, 2014 $ 117 $ 2 $ 119 2015 charges 86 30 116 Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively (1) (106 ) (25 ) (131 ) Reversed to the Statement of Operations (1 ) — (1 ) Balance at December 31, 2015 $ 96 $ 7 $ 103 2016 charges 202 16 218 Incurred, Net of Foreign Currency Translation of $(13) million and $0 million, respectively (75 ) (18 ) (93 ) Reversed to the Statement of Operations (9 ) — (9 ) Balance at December 31, 2016 $ 214 $ 5 $ 219 (1) Incurred in 2015 of $131 million excludes $25 million , and incurred in 2014 of $235 million excludes $20 million , of rationalization payments for labor claims relating to a previously closed facility in Greece. Rationalization actions accrued at December 31, 2016 include $110 million related to our announced plan to close our tire manufacturing facility in Philippsburg, Germany. The plan is in furtherance of our strategy to capture the growing demand for premium, large-rim diameter tires in part by reducing excess capacity in declining, less profitable segments of the tire market. The plan, which remains subject to consultation with relevant employee representative bodies, would result in approximately 890 job reductions. The charges related to the announced closure are expected to be paid through 2018. The remainder of the accrual balance at December 31, 2016 is expected to be substantially utilized within the next 12 months and includes $32 million related to our global plan to reduce SAG headcount, $22 million related to manufacturing headcount reductions in certain countries in Europe, Middle East and Africa ("EMEA"), $16 million related to the closure of our Wolverhampton, U.K. mixing and retreading facility and the plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA, and $13 million related to the closure of one of our manufacturing facilities in Amiens, France. The net rationalization charges included in Income before Income Taxes are as follows: (In millions) 2016 2015 2014 Current Year Plans Associate Severance and Other Related Costs $ 188 $ 66 $ 22 Other Exit and Non-Cancelable Lease Costs 1 7 1 Current Year Plans - Net Charges $ 189 $ 73 $ 23 Prior Year Plans Associate Severance and Other Related Costs $ 5 $ 19 $ 49 Benefit Plan Curtailment / Settlement Loss (Gain) 1 (1 ) (22 ) Other Exit and Non-Cancelable Lease Costs 15 23 45 Prior Year Plans - Net Charges 21 41 72 Total Net Charges $ 210 $ 114 $ 95 Asset Write-off and Accelerated Depreciation Charges $ 20 $ 8 $ 7 Substantially all of the new charges in 2016 related to future cash outflows. Net current year plan charges at December 31, 2016 include charges of $116 million related to the announced plan to close our tire manufacturing facility in Philippsburg, Germany, $34 million related to a plan to reduce global SAG headcount, and $25 million related to manufacturing headcount reductions in EMEA to improve operating efficiency. Net prior year plan charges recognized in the year ended December 31, 2016 include charges of $12 million related to the closure of one of our manufacturing facilities in Amiens, France. Net charges for the year ended December 31, 2016 included reversals of $9 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $595 million in charges through 2016 and approximately $80 million is expected to be incurred in future periods. Approximately 1,700 associates will be released under new plans initiated in 2016, of which approximately 200 associates have been released as of December 31, 2016. In 2016, approximately 600 associates were released under plans initiated in prior years. In total, approximately 1,600 associates remain to be released under rationalization plans. At December 31, 2016, approximately 840 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note 19. Accelerated depreciation charges in 2016 primarily related to the closure of our Wolverhampton, U.K. mixing and retreading facility and the announced plan to close our tire manufacturing facility in Philippsburg, Germany. Asset write-off and accelerated depreciation charges for all periods were recorded in cost of goods sold (“CGS”). Rationalization activities initiated in 2015 consisted primarily of charges of $38 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility and a plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA. Additional charges for the year ended December 31, 2015 primarily related to plans to reduce manufacturing and SAG headcount in EMEA and Americas. Net prior year plan charges recognized in the year ended December 31, 2015 include charges of $33 million related to the closure of one of our manufacturing facilities in Amiens, France and our exit from the farm tire business in EMEA. Accelerated depreciation charges in 2015 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Rationalization activities initiated in 2014 consisted primarily of manufacturing headcount reductions related to EMEA's plans to improve operating efficiency. In addition, EMEA, Americas and Asia Pacific also initiated plans to reduce SAG headcount. Net prior year plan charges for the year ended December 31, 2014 of $72 million include charges of $74 million for associate severance and idle plant costs, partially offset by a pension curtailment gain of $22 million , related to the closure of one of our manufacturing facilities in Amiens, France. Asset write-off and accelerated depreciation charges of $7 million in 2014 related to property and equipment in our Wolverhampton, U.K mixing and retreading facility and property and equipment in one of our manufacturing facilities in Amiens, France. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Interest expense before capitalization $ 398 $ 457 $ 468 Capitalized interest (26 ) (19 ) (24 ) $ 372 $ 438 $ 444 Cash payments for interest, net of amounts capitalized, were $351 million , $445 million and $419 million in 2016 , 2015 and 2014 , respectively. The adoption of the accounting standards update with new guidance on the presentation of debt issuance costs resulted in a reclassification of $26 million and $16 million of expense from Other (Income) Expense to Interest Expense for the years ended December 31, 2015 and 2014, respectively. |
Other (Income) Expense
Other (Income) Expense | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense | Other (Income) Expense (In millions) 2016 2015 2014 Financing fees and financial instruments $ 83 $ 85 $ 61 Net gains on asset sales (31 ) (71 ) (3 ) General and product liability (income) expense - discontinued products (27 ) (25 ) 25 Royalty income (23 ) (192 ) (35 ) Interest income (15 ) (22 ) (28 ) Net foreign currency exchange (gains) losses (13 ) 77 239 Miscellaneous 16 7 27 $ (10 ) $ (141 ) $ 286 Financing fees and financial instruments expense consists of commitment fees and charges incurred in connection with financing transactions. Financing fees in 2016 and 2015 included $53 million and $41 million , respectively, of redemption premiums related to the redemption of certain senior notes. Net gains on asset sales in 2016 included a gain of $16 million related to the sale of a former wire plant site in Luxembourg and a gain of $9 million related to the sale of our interest in a supply chain logistics company. Net gains on asset sales in 2015 included a gain of $48 million related to the dissolution of the global alliance with SRI and a gain of $30 million on the sale of our investment in shares of SRI. Refer to Note 5. Net gains on asset sales in 2015 also included losses of $14 million in EMEA, primarily related to the sales of certain sub-Saharan Africa retail businesses. General and product liability (income) expense - discontinued products includes charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries. General and product liability (income) expense - discontinued products for the year ended December 31, 2016 includes a benefit of $24 million for the recovery of past costs from certain asbestos insurers and a benefit of $10 million related to changes in assumptions for probable insurance recoveries for asbestos claims in future periods. General and product liability (income) expense - discontinued products for the year ended December 31, 2015 included a benefit of $25 million for the recovery of past costs from one of our asbestos insurers and a benefit of $21 million related to changes in assumptions for probable insurance recoveries for asbestos claims in future periods. The 2015 benefits were partially offset by an $8 million increase in the net asbestos liability based on updated assumptions for defense and indemnity costs in future periods based on historical cost data and trends. Royalty income is derived primarily from licensing arrangements related to divested businesses as well as other licensing arrangements. Royalty income in 2015 included a one-time pre-tax gain of $155 million on the recognition of deferred income resulting from the termination of a licensing agreement associated with the sale of our former Engineered Products business ("Veyance"). The licensing agreement was terminated following the acquisition of Veyance by Continental AG in January 2015. Interest income consists primarily of amounts earned on cash deposits. Interest income in 2014 also included $10 million earned on the settlement of indirect tax claims in Americas. Foreign currency exchange in all periods reflects net gains and losses resulting from the effect of exchange rate changes on various foreign currency transactions worldwide, including $34 million of losses in 2015 and $200 million of losses in 2014 resulting from the devaluation of the Venezuelan bolivar fuerte against the U.S. dollar. Miscellaneous expense in 2014 also includes a charge of $16 million related to a government investigation involving our compliance with the U.S. Foreign Corrupt Practices Act in certain countries in Africa. |
Dissolution of Global Alliance
Dissolution of Global Alliance With Sumitomo Rubber Industries | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dissolution of Global Alliance with Sumitomo Rubber Industries | Dissolution of Global Alliance with Sumitomo Rubber Industries On October 1, 2015, the Company completed the previously announced dissolution of its global alliance with SRI in accordance with the terms and conditions set forth in the Framework Agreement, dated as of June 4, 2015, by and between the Company and SRI. Prior to the dissolution, the Company owned 75% and SRI owned 25% of two companies, Goodyear Dunlop Tires Europe B.V. (“GDTE”) and Goodyear Dunlop Tires North America, Ltd. (“GDTNA”). GDTE owns and operates substantially all of the Company’s tire businesses in Western Europe. GDTNA had rights to the Dunlop brand and operated certain related businesses in North America. In Japan, the Company owned 25% and SRI owned 75% of two companies, one, Nippon Goodyear Ltd. (“NGY”), for the sale of Goodyear-brand passenger and truck tires for replacement in Japan and the other, Dunlop Goodyear Tires Ltd. (“DGT”), for the sale of Goodyear-brand and Dunlop-brand tires to vehicle manufacturers in Japan. Pursuant to the Framework Agreement, the Company sold to SRI its 75% interest in GDTNA for $125 million , 25% interest in DGT for $14 million and Huntsville, Alabama test track used by GDTNA for $6 million . Accordingly, the Company no longer has any remaining ownership interests in GDTNA, DGT or the Huntsville, Alabama test track. With the sale of GDTNA, SRI obtained full ownership of the Dunlop motorcycle tire business in North America and the rights to sell Dunlop-brand tires to Japanese vehicle manufacturers in the United States, Canada and Mexico. The Company retained exclusive rights to sell Dunlop-brand tires in both the consumer and commercial replacement markets of the United States, Canada and Mexico as well as to non-Japanese vehicle manufacturers in those countries. The Company also acquired SRI's 75% interest in NGY for $29 million and 25% interest in GDTE for $387 million . Accordingly, the Company now has full ownership interests in NGY and GDTE. In addition, SRI obtained exclusive rights to sell Dunlop-brand tires in those countries that were previously non-exclusive under the global alliance, including Russia, Turkey and certain countries in Africa. We paid SRI a net amount of $271 million upon closing of the transactions described above. In addition, we delivered a promissory note to GDTNA in an initial principal amount of $56 million , with a maturity date three years following the date of dissolution and at an interest rate of LIBOR plus 0.1% , that represented SRI's 25% interest in a GDTNA loan receivable from the Company. The contractual net consideration paid of $271 million , discussed above, represented an amount agreed to by the Company and SRI as a result of arm's length negotiations for the dissolution of the global alliance. In order to appropriately account for the various components of the dissolution transaction within its consolidated financial statements, the Company independently estimated the fair value of each component of the dissolution transaction as of the October 1, 2015 closing date using commonly used fair value measurement techniques, such as discounted cash flow methods and market approaches based on comparable companies, in order to determine the fair value of consideration for each component and the gain or loss on the dissolution transaction. The Framework Agreement also provided that we and SRI would conduct an orderly sale of the SRI common stock held by us and the Goodyear common stock held by SRI. As of December 31, 2015, the Company sold all of its common stock in SRI resulting in total proceeds of $47 million and a pre-tax gain of $30 million that was recorded within Other (Income) Expense. In addition to the gain recognized on the sale of SRI common stock, the Company recognized a pre-tax gain of $48 million on the transactions described above that was recorded in Other (Income) Expense. The net gain on the transaction, after taxes, was $38 million . The net pre-tax gain on the dissolution transaction of $48 million is comprised of the following: (In millions) Pre-tax gain on sale of a controlling interest in GDTNA $ 23 Pre-tax gain on sale of a non-controlling investment in DGT 42 Pre-tax gain on sale of non-exclusive rights 19 Transaction costs and other (8 ) Net product liability claims (28 ) $ 48 Pursuant to the Framework Agreement, the Company will defend product liability claims related to GDTNA’s historical operations. We recorded a net liability of $28 million reflecting the estimated cost of the Company's obligation to defend those product liability claims net of the amount recorded for the indemnification of those claims provided by SRI to the Company under the Framework Agreement. Prior to October 1, 2015, GDTE’s assets and liabilities were included in our consolidated balance sheets and GDTE’s results of operations were included in our consolidated statements of operations, which also reflected SRI’s minority interest in GDTE. Subsequent to October 1, 2015, we continue to include GDTE in our consolidated balance sheets and consolidated statements of operations; however, there is no minority interest impact to our results of operations related to GDTE. Additionally, prior to October 1, 2015, we accounted for NGY under the equity method as we did not have a controlling financial interest in NGY. Subsequent to October 1, 2015, we have a controlling interest in NGY and, accordingly, NGY’s assets and liabilities are included in our consolidated balance sheet as of December 31, 2015, and NGY’s results of operations are included in our consolidated statements of operations. The effects of the acquisition of NGY were not material to our consolidated balance sheet or results of operations as of and for the year ended December 31, 2015. For the year ended December 31, 2015, the Company had classified the closing payment of $271 million as cash flows from financing activities as the acquisition of the minority shareholder’s equity in GDTE represents the predominant use of these proceeds. The Company and SRI entered into various supply agreements, licenses, transition services agreements, releases and other ancillary agreements in connection with the Framework Agreement to give effect to the dissolution and/or to set forth arrangements between the Company and SRI following the dissolution. The Company and SRI also each agreed to indemnify the other for certain losses arising out of breaches of representations and warranties, covenants and other specified matters, including product liability matters. The Company recorded an indemnification asset of $32 million for SRI’s obligation to reimburse the Company for certain product liability claims related to periods prior to the dissolution, subject to certain caps and restrictions. At December 31, 2016, a total indemnification asset of $35 million is recorded within Accounts Receivable of $6 million and Other Assets of $29 million . The range of possible outcomes for the indemnification receivable is not material to the Company’s financial statements. As a result of the sale of GDTNA and the acquisition of the minority interest in GDTE in 2015, we recognized a net decrease in AOCL of $77 million , comprised of a reduction of $184 million for GDTNA accumulated pension-related losses that were recognized in the net gain on sale for the transaction, partially offset by an increase of $107 million primarily for GDTE pension-related losses that were reclassified from minority shareholders’ equity into AOCL. We also recognized an increase in our capital surplus of $60 million related to our acquisition of the minority interest in GDTE. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of Income before Income Taxes follow: (In millions) 2016 2015 2014 U.S. $ 595 $ 284 $ 400 Foreign 612 324 287 $ 1,207 $ 608 $ 687 A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax (Benefit) Expense follows: (In millions) 2016 2015 2014 U.S. Federal income tax expense at the statutory rate of 35% $ 422 $ 213 $ 240 Net establishment (release) of foreign valuation allowances (354 ) 4 51 U.S. credits (R&D, foreign tax credits) and benefits offset to OCI (163 ) (72 ) — Adjustment for foreign income taxed at different rates (51 ) (39 ) (37 ) Net establishment (release) of U.S. valuation allowance 39 (8 ) (2,318 ) State income taxes, net of U.S. Federal benefit 16 10 12 Net foreign losses (income) with no tax due to valuation allowances 8 (19 ) 49 Net establishment (resolution) of uncertain tax positions 3 (13 ) 3 Deferred tax impact of enacted tax rate and law changes (2 ) (2 ) 33 Deconsolidation of Venezuelan subsidiary — 157 — Provision for undistributed foreign earnings — — 131 Other 5 1 2 United States and Foreign Tax (Benefit) Expense $ (77 ) $ 232 $ (1,834 ) The components of United States and Foreign Tax (Benefit) Expense by taxing jurisdiction, follow: (In millions) 2016 2015 2014 Current: Federal $ (25 ) $ — $ — Foreign 175 154 135 State 2 (1 ) 1 152 153 136 Deferred: Federal 77 74 (2,103 ) Foreign (328 ) 5 84 State 22 — 49 (229 ) 79 (1,970 ) United States and Foreign Tax (Benefit) Expense $ (77 ) $ 232 $ (1,834 ) In 2016, the income tax benefit of $77 million was favorably impacted by net discrete adjustments of $458 million , due primarily to a tax benefit of $331 million from the December 31, 2016 release of the valuation allowance on certain subsidiaries in England, France, Luxembourg and New Zealand. As of December 31, 2016, these subsidiaries on which we have maintained a full valuation allowance have achieved earnings of a duration and magnitude that they are now in a position of cumulative profits for the most recent three-year period. As a consequence of this profitability in recent periods and our business plans for 2017 and beyond forecasting sustainable profitability, we now conclude that it is more likely than not that our deferred tax assets in these entities will be realized. The 2016 income tax benefit also included a $163 million tax benefit resulting from changing our election for our 2009, 2010 and 2012 U.S. tax years from deducting foreign taxes to crediting foreign taxes, a $39 million tax charge related to establishing a valuation allowance in the United States on deferred tax assets related to receivables from our deconsolidated Venezuelan operations which were contributed to its capital, and a $7 million tax benefit related to the release of a valuation allowance in Brazil due to the collection of a receivable that had previously been written off as uncollectible. In 2015, income tax expense of $232 million included net discrete tax benefits of $18 million unrelated to current year income, due primarily to a $9 million benefit from the conclusion of non-U.S. tax claims and an $8 million benefit from the release of a valuation allowance related to certain state deferred tax assets. Our tax expense for 2015 also included a U.S. tax benefit of $69 million related to the pre-tax loss of $646 million on the deconsolidation of our Venezuelan subsidiary (Refer to Note 1), and a current year benefit of $10 million related to recently enacted U.S. legislation extending the research and development credit. At December 31, 2014, our U.S. operations were in a position of cumulative profits for the most recent three-year period. We concluded that as a consequence of our three-year cumulative profits, achieving full year profitability in 2013 and 2014, our successful completion of labor negotiations with the United Steelworkers in 2013, our full funding of our U.S. pension plans during 2013 and 2014, and our business plan for 2015 and beyond showing continued profitability, that it was more likely than not that a significant portion of our U.S. deferred tax assets would be realized. In 2014, the income tax benefit of $1,834 million was favorably impacted by net discrete tax adjustments of $1,980 million , due primarily to a net tax benefit of $2,179 million from the December 31, 2014 release of substantially all of the valuation allowance on our net U.S. deferred tax assets and a charge of $131 million to establish a provision for potential U.S. Federal taxation of certain undistributed earnings of certain foreign subsidiaries. The 2014 income tax benefit also included charges of $37 million to establish valuation allowances on the net deferred tax assets of our Venezuelan and Brazilian subsidiaries, due to continuing operating losses and currency devaluations in Venezuela, a charge of $9 million to establish a valuation allowance on the net deferred tax assets of a Luxembourg subsidiary and a charge of $11 million due to an enacted law change in Chile. Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2016 2015 Tax loss carryforwards and credits $ 1,503 $ 1,415 Capitalized research and development expenditures 666 655 Accrued expenses deductible as paid 456 501 Postretirement benefits and pensions 294 288 Investment and receivables related to Venezuelan deconsolidation 134 157 Alternative minimum tax credit carryforwards (1) 43 78 Vacation and sick pay 37 37 Rationalizations and other provisions 36 22 Other 106 121 3,275 3,274 Valuation allowance (326 ) (621 ) Total deferred tax assets 2,949 2,653 Property basis differences (482 ) (459 ) Tax on undistributed earnings of subsidiaries (138 ) (144 ) Total net deferred tax assets $ 2,329 $ 2,050 (1) Unlimited carryforward period. At December 31, 2016 , we had $507 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 $11 million of special enterprise zone tax credits subject to expiration in 2026. A valuation allowance totaling $187 million has been recorded against these and other deferred tax assets where recovery of the asset or carryforward is uncertain. In addition, we had $907 million of Federal and $89 million of state tax assets for net operating loss and tax credit carryforwards. The Federal carryforwards consist of $849 million of foreign tax credits that are subject to expiration from 2018 to 2025 and $58 million of tax assets related to research and development credits that are subject to expiration from 2030 to 2036. During 2016 we have elected early adoption of the FASB update on employee share-based payment accounting which has been applied using a modified retrospective approach. The December 31, 2015 amount of deferred tax assets reflected in the table above has been reduced by $56 million related to unrealized stock option deductions. The state carryforwards are subject to expiration from 2017 to 2034. A valuation allowance of $139 million has been recorded against Federal and state deferred tax assets where recovery is uncertain. At December 31, 2016 , we had unrecognized tax benefits of $63 million that if recognized, would have a favorable impact on our tax expense of $47 million . We had accrued interest of $4 million as of December 31, 2016 . If not favorably settled, $12 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 2017 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) 2016 2015 2014 Balance at January 1 $ 54 $ 81 $ 88 Increases related to prior year tax positions 19 10 15 Decreases related to prior year tax positions (8 ) (10 ) (12 ) Settlements (8 ) (14 ) (6 ) Foreign currency impact 6 (15 ) (4 ) Increases related to current year tax positions 1 2 — Lapse of statute of limitations (1 ) — — Balance at December 31 $ 63 $ 54 $ 81 Generally, years from 2011 onward are still open to examination by foreign taxing authorities. We are open to examination in Germany from 2011 onward and in the United States from 2015. We have undistributed earnings of foreign subsidiaries of approximately $1.8 billion for which deferred taxes have not been provided, including a portion of which that has already been subject to U.S. Federal income taxation. No provision for Federal income or foreign withholding tax on any of these undistributed earnings is required because such earnings have been or will be reinvested in property, plant and equipment and working capital. Quantification of the deferred tax liability net of applicable foreign tax credits, if any, associated with these undistributed earnings is not practicable. We have not recorded deferred tax assets for the excess of tax basis over book basis in our foreign subsidiaries as it is not expected to reverse in the foreseeable future. Net cash payments for income taxes were $153 million , $113 million and $127 million in 2016 , 2015 and 2014 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Earnings per share — basic: Goodyear net income $ 1,264 $ 307 $ 2,452 Less: Preferred stock dividends — — 7 Goodyear net income available to common shareholders $ 1,264 $ 307 $ 2,445 Weighted average shares outstanding 263 269 268 Earnings per common share — basic $ 4.81 $ 1.14 $ 9.13 Earnings per share — diluted: Goodyear net income $ 1,264 $ 307 $ 2,452 Less: Preferred stock dividends — — — Goodyear net income available to common shareholders $ 1,264 $ 307 $ 2,452 Weighted average shares outstanding 263 269 268 Dilutive effect of mandatory convertible preferred stock — — 7 Dilutive effect of stock options and other dilutive securities 3 4 4 Weighted average shares outstanding — diluted 266 273 279 Earnings per common share — diluted $ 4.74 $ 1.12 $ 8.78 Weighted average shares outstanding — diluted for 2016 and 2014 excludes approximately 1 million and 2 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common stock (i.e., “underwater” options). There were no shares related to options with exercise prices greater than the average market price of our common stock for 2015. On April 1, 2014, all outstanding shares of mandatory convertible preferred stock automatically converted into 27,573,735 shares of common stock, net of fractional shares, at a conversion rate of 2.7574 shares of common stock per share of preferred stock. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Effective January 1, 2016, we combined our North America and Latin America strategic business units into one Americas strategic business unit. We have combined the North America and Latin America reportable segments effective on this date to align with the new organizational structure and the basis used for reporting to our Chief Executive Officer beginning in 2016. This 2016 Form 10-K reflects the new segment structure with prior periods recast for comparable disclosure. Segment information reflects our strategic business units (“SBUs”), which are organized to meet customer requirements and global competition. For the year ended December 31, 2016, 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, automotive and commercial truck repair services and merchandise purchased for resale. 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. Americas also provides related products and services including retread tires, tread rubber, automotive and commercial truck maintenance and repair services, as well as sells chemical and natural rubber products to our other business segments and to unaffiliated customers. Americas' 2015 and 2014 segment sales and operating income include the results of our Venezuelan subsidiary, which was deconsolidated on December 31, 2015. Refer to Note 1. Americas' 2016 segment sales and operating income exclude the results of our Venezuelan subsidiary. Europe, Middle East and Africa 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) 2016 2015 2014 Sales Americas $ 8,172 $ 9,370 $ 9,881 Europe, Middle East and Africa 4,880 5,115 6,180 Asia Pacific 2,106 1,958 2,077 Net Sales $ 15,158 $ 16,443 $ 18,138 Segment Operating Income Americas $ 1,151 $ 1,266 $ 967 Europe, Middle East and Africa 461 435 438 Asia Pacific 373 319 301 Total Segment Operating Income 1,985 2,020 1,706 Less: Rationalizations 210 114 95 Interest expense 372 438 444 Other (income) expense (1) (10 ) (141 ) 286 Asset write-offs and accelerated depreciation 20 8 7 Corporate incentive compensation plans 76 103 97 Corporate pension curtailments/settlements (2) 16 137 33 Intercompany profit elimination 2 3 (9 ) Loss on deconsolidation of Venezuelan subsidiary — 646 — Retained expenses of divested operations 18 14 16 Other (3) 74 90 50 Income before Income Taxes $ 1,207 $ 608 $ 687 (1) Refer to Note 4. (2) Substantially all of the pension and curtailment settlement charges noted above relate to our SBUs; however, such costs were not included in segment operating income for purposes of management's assessment of SBU operating performance. (3) Primarily represents unallocated corporate costs. Also includes the elimination of $24 million , $25 million and $24 million for the years ended December 31, 2016, 2015 and 2014, respectively, of royalty income attributable to the strategic business units. The following table presents segment assets at December 31: (In millions) 2016 2015 2014 Assets Americas (1) $ 6,701 $ 6,275 $ 7,019 Europe, Middle East and Africa 4,385 4,377 4,954 Asia Pacific 2,515 2,559 2,594 Total Segment Assets 13,601 13,211 14,567 Corporate (2) 2,910 3,180 3,433 $ 16,511 $ 16,391 $ 18,000 (1) Decrease in Americas segment assets between 2014 and 2015 was due primarily to the deconsolidation of our Venezuelan subsidiary on December 31, 2015. Refer to Note 1. (2) Corporate includes substantially all of our U.S. net deferred tax assets. 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, pension curtailments/settlements and certain other items. The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property, plant and equipment. Besides Germany, management did not consider the net sales of any other individual countries outside the United States to be significant to the consolidated financial statements. For long-lived assets only China and Germany were considered to be significant. (In millions) 2016 2015 2014 Net Sales United States $ 6,724 $ 7,338 $ 7,558 Germany 1,853 1,905 2,288 Other international 6,581 7,200 8,292 $ 15,158 $ 16,443 $ 18,138 Long-Lived Assets United States $ 2,651 $ 2,468 $ 2,464 China 716 766 809 Germany 717 778 833 Other international 2,956 2,765 3,047 $ 7,040 $ 6,777 $ 7,153 At December 31, 2016 , significant concentrations of cash and cash equivalents held by our international subsidiaries included the following amounts: • $427 million or 38% in Asia Pacific, primarily China, India and Australia ( $415 million or 28% at December 31, 2015), • $310 million or 27% in Europe, Middle East and Africa, primarily Belgium ( $513 million or 35% at December 31, 2015), and • $203 million or 18% in Americas, primarily Canada and Brazil ( $179 million or 12% at December 31, 2015). Rationalizations, as described in Note 2, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 4, Other (Income) Expense, and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2016 2015 2014 Rationalizations Americas $ 15 $ 15 $ (3 ) Europe, Middle East and Africa 184 95 89 Asia Pacific 1 4 9 Total Segment Rationalizations 200 114 95 Corporate 10 — — $ 210 $ 114 $ 95 (In millions) 2016 2015 2014 Net (Gains) Losses on Asset Sales Americas $ (4 ) $ (2 ) $ (8 ) Europe, Middle East and Africa (17 ) 14 7 Asia Pacific (1 ) (5 ) — Total Segment Asset Sales (22 ) 7 (1 ) Corporate (1) (9 ) (78 ) (2 ) $ (31 ) $ (71 ) $ (3 ) (1) Corporate gain on asset sales in 2015 included a $48 million gain on the dissolution of our global alliance with SRI and a $30 million gain on the sale of our investment in shares of SRI. Refer to Note 5. (In millions) 2016 2015 2014 Asset Write-offs and Accelerated Depreciation Americas $ 1 $ — $ — Europe, Middle East and Africa 19 8 7 Asia Pacific — — — Total Segment Asset Write-offs and Accelerated Depreciation $ 20 $ 8 $ 7 The following tables present segment capital expenditures and depreciation and amortization: (In millions) 2016 2015 2014 Capital Expenditures Americas $ 618 $ 618 $ 434 Europe, Middle East and Africa 191 223 266 Asia Pacific 137 124 154 Total Segment Capital Expenditures 946 965 854 Corporate 50 18 69 $ 996 $ 983 $ 923 (In millions) 2016 2015 2014 Depreciation and Amortization Americas $ 366 $ 364 $ 376 Europe, Middle East and Africa 192 186 220 Asia Pacific 120 114 105 Total Segment Depreciation and Amortization 678 664 701 Corporate 49 34 31 $ 727 $ 698 $ 732 The following table presents segment equity in the net income of investees accounted for by the equity method: (In millions) 2016 2015 2014 Equity in (Income) Americas $ — $ (3 ) $ (5 ) Europe, Middle East and Africa (1 ) (1 ) — Asia Pacific (1) — (12 ) (23 ) Total Segment Equity in (Income) $ (1 ) $ (16 ) $ (28 ) (1) Substantially all of the Asia Pacific segment equity in income related to 25% interests in NGY and DGT which ceased to be recognized effective October 1, 2015 following the dissolution of the global alliance with SRI. Refer to Note 5. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable (In millions) 2016 2015 Accounts receivable $ 1,870 $ 2,138 Allowance for doubtful accounts (101 ) (105 ) $ 1,769 $ 2,033 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) 2016 2015 Raw materials $ 436 $ 419 Work in process 131 138 Finished goods 2,060 1,907 $ 2,627 $ 2,464 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2016 : (In millions) Balance at December 31, 2015 Acquisitions Divestitures Translation Balance at December 31, 2016 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 401 — — (18 ) 383 Asia Pacific 63 — — (2 ) 61 $ 555 $ — $ — $ (20 ) $ 535 The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2015 : (In millions) Balance at December 31, 2014 Acquisitions Divestitures Translation Balance at December 31, 2015 Americas $ 93 $ — $ (2 ) $ — $ 91 Europe, Middle East and Africa 448 — (2 ) (45 ) 401 Asia Pacific 60 6 — (3 ) 63 $ 601 $ 6 $ (4 ) $ (48 ) $ 555 The following table presents information about intangible assets: 2016 2015 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 128 $ (6 ) $ 122 $ 128 $ (6 ) $ 122 Trademarks and patents 13 (9 ) 4 12 (8 ) 4 Other intangible assets 19 (9 ) 10 21 (9 ) 12 $ 160 $ (24 ) $ 136 $ 161 $ (23 ) $ 138 (1) Includes impact of foreign currency translation. Intangible assets primarily comprise the rights to use the Dunlop brand name and related trademarks and certain other brand names and trademarks. Amortization expense for intangible assets totaled $1 million , $1 million and $2 million in 2016 , 2015 and 2014 , respectively. We estimate that annual amortization expense related to intangible assets will be approximately $1 million in 2017 through 2021, and the weighted average remaining amortization period is approximately 23 years . Our annual impairment analyses for 2016 , 2015 and 2014 indicated no impairment of goodwill or intangible assets with indefinite lives. In addition, there were no events or circumstances that indicated the impairment tests should be re-performed for goodwill or for intangible assets with indefinite lives for any reporting unit at December 31, 2016 . |
Other Assets and Investments
Other Assets and Investments | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Investments | Other Assets and Investments We owned 3,421,306 shares of SRI at December 31, 2014 (the “Sumitomo Investment”). During the fourth quarter of 2015, we sold 100% of the Sumitomo Investment resulting in a gain of $30 million that was included in Other (Income) Expense. Refer to Note 5. Dividends received from our consolidated subsidiaries were $66 million , $46 million and $273 million in 2016 , 2015 and 2014 , respectively. Dividends received from our affiliates accounted for using the equity method were $4 million , $24 million and $24 million in 2016 , 2015 and 2014 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment 2016 2015 (In millions) Owned Capital Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 397 $ — $ 397 $ 387 $ — $ 387 Buildings 2,288 35 2,323 2,230 32 2,262 Machinery and equipment 12,232 46 12,278 11,719 68 11,787 Construction in progress 887 — 887 783 — 783 15,804 81 15,885 15,119 100 15,219 Accumulated depreciation (9,102 ) (23 ) (9,125 ) (8,605 ) (32 ) (8,637 ) 6,702 58 6,760 6,514 68 6,582 Spare parts 280 — 280 195 — 195 $ 6,982 $ 58 $ 7,040 $ 6,709 $ 68 $ 6,777 The range of useful lives of property used in arriving at the annual amount of depreciation are as follows: buildings and improvements, 3 to 45 years; machinery and equipment, 3 to 40 years. |
Leased Assets
Leased Assets | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leased Assets | Leased Assets Net rental expense comprised the following: (In millions) 2016 2015 2014 Gross rental expense $ 318 $ 324 $ 387 Sublease rental income (27 ) (33 ) (40 ) $ 291 $ 291 $ 347 We enter into leases primarily for our wholesale distribution facilities, administrative offices, retail stores, vehicles and data processing equipment under varying terms and conditions. Many of the leases require us to pay taxes assessed against leased property and the cost of insurance and maintenance. A portion of our retail distribution network is sublet to independent dealers. While substantially all subleases and some operating leases are cancelable for periods beyond 2017 , management expects that in the normal course of its business nearly all of its independent dealer distribution network will be actively operated. As leases and subleases for existing locations expire, we would normally expect to evaluate such leases and either renew the leases or substitute another more favorable retail location. The following table presents minimum future lease payments: 2022 and (In millions) 2017 2018 2019 2020 2021 Beyond Total Capital Leases Minimum lease payments $ 11 $ 8 $ 6 $ 4 $ 15 $ 26 $ 70 Imputed interest (3 ) (3 ) (3 ) (3 ) (2 ) (15 ) (29 ) Present value $ 8 $ 5 $ 3 $ 1 $ 13 $ 11 $ 41 Operating Leases Minimum lease payments $ 266 $ 202 $ 154 $ 118 $ 87 $ 267 $ 1,094 Minimum sublease rentals (18 ) (11 ) (7 ) (5 ) (3 ) (27 ) (71 ) $ 248 $ 191 $ 147 $ 113 $ 84 $ 240 $ 1,023 Imputed interest (166 ) Present value $ 857 |
Financing Arrangements and Deri
Financing Arrangements and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | |
Financing Arrangements and Derivative Financial Instruments | Financing Arrangements and Derivative Financial Instruments At December 31, 2016 , we had total credit arrangements of $8,491 million , of which $2,970 million were unused. At that date, 34% of our debt was at variable interest rates averaging 6.20% . Notes Payable and Overdrafts, Long Term Debt and Capital Leases due Within One Year and Short Term Financing Arrangements At December 31, 2016 , we had short term committed and uncommitted credit arrangements totaling $559 million , of which $314 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) 2016 2015 Notes payable and overdrafts: $ 245 $ 49 Weighted average interest rate 6.18 % 9.42 % Long term debt and capital leases due within one year: Other domestic and foreign debt (including capital leases) $ 436 $ 587 Unamortized deferred financing fees — (2 ) Total long term debt and capital leases due within one year $ 436 $ 585 Weighted average interest rate 9.39 % 6.68 % Total obligations due within one year $ 681 $ 634 Long Term Debt and Capital Leases and Financing Arrangements At December 31, 2016 , we had long term credit arrangements totaling $7,932 million , of which $2,656 million were unused. The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: December 31, 2016 December 31, 2015 Interest Interest (In millions) Amount Rate Amount Rate Notes: 6.75% Euro Notes due 2019 $ — $ 272 8.75% due 2020 273 271 6.5% due 2021 — 900 7% due 2022 700 700 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 264 272 5% due 2026 900 — 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2021 85 1.98 % — — Second lien term loan facility due 2019 399 3.75 % 598 3.75 % €550 million revolving credit facility due 2020 — — — — Pan-European accounts receivable facility 198 0.98 % 125 1.35 % Chinese credit facilities 315 4.68 % 465 5.22 % Other foreign and domestic debt (1) 951 9.14 % 906 9.42 % Unamortized deferred financing fees (42 ) (48 ) 5,193 5,611 Capital lease obligations 41 48 5,234 5,659 Less portion due within one year (436 ) (585 ) $ 4,798 $ 5,074 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and Americas Headquarters. NOTES €250 million 6.75% Senior Notes due 2019 of GDTE In January 2016, we redeemed all of the outstanding €250 million aggregate principal amount of GDTE's 6.75% senior notes due 2019, including a $9 million redemption premium plus accrued and unpaid interest to the redemption date. We also recorded $3 million of expense for the write-off of deferred financing fees as a result of the redemption. $282 million 8.75% Senior Notes due 2020 At December 31, 2016 , $282 million aggregate principal amount of 8.75% notes due 2020 were outstanding. These notes had an effective yield of 9.20% at issuance. These notes are unsecured senior obligations, are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below, and will mature on August 15, 2020 . We have the option to redeem these notes, in whole or in part, at any time at a redemption price equal to the greater of 100% of the principal amount of these notes or the sum of the present values of the remaining scheduled payments on these notes, discounted using a defined treasury rate plus 50 basis points, plus in either case accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur secured debt, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. $900 million 6.5% Senior Notes due 2021 In June 2016, we redeemed all of the outstanding $900 million aggregate principal amount of 6.5% senior notes due 2021, including a $44 million redemption premium plus accrued and unpaid interest to the redemption date. We also recorded $9 million of expense for the write-off of deferred financing fees as a result of the redemption. $700 million 7% Senior Notes due 2022 At December 31, 2016 , $700 million aggregate principal amount of 7% senior notes due 2022 were outstanding. These notes were sold at 100% of the principal amount and will mature on May 15, 2022 . These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after May 15, 2017 at a redemption price of 103.5% , 102.333% , 101.167% and 100% during the 12-month periods commencing on May 15, 2017 , 2018 , 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to May 15, 2017, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. The terms of the indenture for these notes, among other things, limit the ability of the Company and certain of its subsidiaries, including GDTE, to (i) incur additional debt or issue redeemable preferred stock, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. For example, if these notes are assigned an investment grade rating by Moody's and Standard 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. $1.0 billion 5.125% Senior Notes due 2023 At December 31, 2016, $1.0 billion aggregate principal amount of 5.125% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on November 15, 2023. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after November 15, 2018 at a redemption price of 102.563% , 101.281% and 100% during the 12-month periods commencing on November 15, 2018, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to November 15, 2018, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to November 15, 2018, we may redeem up to 35% of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 105.125% of the principal amount plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 7% senior notes due 2022, described above. €250 million 3.75% Senior Notes due 2023 of GDTE At December 31, 2016, € 250 million aggregate principal amount of GDTE’s 3.75% senior notes due 2023 were outstanding. These notes were sold at 100% of the principal amount and will mature on December 15, 2023. These notes are unsecured senior obligations of GDTE and are guaranteed, on an unsecured senior basis, by the Company and our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. senior secured credit facilities described below. We have the option to redeem these notes, in whole or in part, at any time on or after December 15, 2018 at a redemption price of 101.875% , 100.938% and 100% during the 12-month periods commencing on December 15, 2018, 2019 and 2020 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to December 15, 2018, we may redeem these notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to December 15, 2018, we may redeem up to 35% of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 103.75% of the principal amount plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 7% senior notes due 2022, described above. $900 million 5% Senior Notes due 2026 At December 31, 2016, $900 million aggregate principal amount of 5% senior notes due 2026 were outstanding. These notes were sold in May 2016 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. In addition, prior to May 31, 2019 we may redeem up to 35% of the original aggregate principal amount of these notes from net cash proceeds of certain equity offerings at a redemption price equal to 105% of the principal amount plus accrued and unpaid interest to the redemption date. The indenture for these notes includes covenants that are substantially similar to those contained in the indenture governing our 7% senior notes due 2022, described above. $150 million 7% Senior Notes due 2028 At December 31, 2016 , $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 On April 7, 2016, we amended and restated our $2.0 billion first lien revolving credit facility. Changes to the facility include extending the maturity to 2021 and reducing the interest rate for loans under the facility by 25 basis points to LIBOR plus 125 basis points, based on our current liquidity. In addition, the borrowing base was increased to include (i) the value of our principal trademarks and (ii) certain cash in an amount not to exceed $200 million . Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million . Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to $250 million . Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in 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, 2016 , our borrowing base, and therefore our availability, under this facility was $369 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, 2016 , we had $85 million of borrowings and $40 million of letters of credit issued under the revolving credit facility. At December 31, 2015 , we had no borrowings and $315 million of letters of credit issued under the revolving credit facility. During 2016, we began entering into bilateral letter of credit agreements. At December 31, 2016, we had $272 million in letters of credit issued under these agreements. Amended and Restated Second Lien Term Loan Facility due 2019 The term loan bears interest at LIBOR plus 300 basis points, subject to a minimum LIBOR rate of 75 basis points. Our obligations under this 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, which matures on April 30, 2019, 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. Loans under this facility bear interest, at our option, at (i) 300 basis points over LIBOR (subject to a minimum LIBOR rate of 75 basis points) or (ii) 200 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points or LIBOR plus 100 basis points). The amounts outstanding under this facility were $399 million and $598 million at December 31, 2016 and 2015, respectively. €550 million Amended and Restated Senior Secured European Revolving Credit Facility due 2020 Our amended and restated €550 million European revolving credit facility consists of (i) a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH ("GDTG") and (ii) a €425 million all-borrower tranche that is available to GDTE, GDTG and Goodyear Dunlop Tires Operations S.A. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under this facility will bear interest at LIBOR plus 175 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 175 basis points for loans denominated in euros, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points. GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. GDTE’s obligations under the facility and the obligations of its subsidiaries under the related guarantees are secured by security interests in collateral that includes, subject to certain exceptions: • the capital stock of the principal subsidiaries of GDTE; and • a substantial portion of the tangible and intangible assets of GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany, including real property, equipment, inventory, contract rights, intercompany receivables and cash accounts, but excluding accounts receivable and certain cash accounts in subsidiaries that are or may become parties to securitization or factoring transactions. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GDTE and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. subsidiaries and primary Canadian subsidiary that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility. The facility, which matures on May 12, 2020, contains covenants similar to those in our first lien revolving credit facility, with additional limitations applicable to GDTE and its subsidiaries. In addition, under the facility, GDTE’s ratio of Consolidated Net J.V. Indebtedness to Consolidated European J.V. EBITDA for a period of four consecutive fiscal quarters is not permitted to be greater than 3.0 to 1.0 at the end of any fiscal quarter. “Consolidated Net J.V. Indebtedness” and “Consolidated European J.V. EBITDA” have the meanings given them in the facility. The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2014. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries. At December 31, 2016 and 2015 , we had no borrowings and no letters of credit issued under the European revolving credit facility. Accounts Receivable Securitization Facilities (On-Balance Sheet) GDTE and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2019. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €45 million and not more than €450 million . For the period beginning October 16, 2015 to October 15, 2016, the designated maximum amount of the facility was €340 million . For the period beginning October 16, 2016 to October 15, 2017, 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 GDTE subsidiaries to a bankruptcy-remote French company controlled by one of the liquidity banks in the facility. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances. The funding commitments under the facility will expire upon the earliest to occur of: (a) September 25, 2019 , (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 15, 2017 . At December 31, 2016 , the amounts available and utilized under this program totaled $198 million ( €188 million ). At December 31, 2015 , the amounts available and utilized under this program totaled $276 million ( €254 million ) and $125 million ( €115 million ), respectively. The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases. In addition to the pan-European accounts receivable securitization facility discussed above, subsidiaries in Australia have an accounts receivable securitization program that provides flexibility to designate semi-annually the maximum amount of funding available under the facility in an amount of not less than 60 million Australian dollars and not more than 85 million Australian dollars. For the period beginning January 1, 2016 to June 30, 2016, the designated maximum amount of the facility was 70 million Australian dollars. For the period beginning July 1, 2016 to June 30, 2017, the designated maximum amount of the facility was reduced to 60 million Australian dollars. At December 31, 2016 , the amounts available and utilized under this program were $28 million (AUD 39 million ) and $12 million (AUD 16 million ), respectively. At December 31, 2015 , the amounts available and utilized under this program were $34 million (AUD 47 million ) and $19 million (AUD 26 million ), respectively. The receivables sold under this program also serve as collateral for the related facility. We retain the risk of loss related to these receivables in the event of non-payment. These amounts are included in Long Term Debt and Capital Leases. Accounts Receivable Factoring Facilities (Off-Balance Sheet) 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, 2016 and 2015 , the gross amount of receivables sold was $502 million and $299 million , respectively. The increase in gross receivables sold was primarily due to increased factoring in the United States. Other Foreign Credit Facilities A Chinese subsidiary has several financing arrangements in China. At December 31, 2016 , these non-revolving credit facilities had total unused availability of $252 million and can only be used to finance the expansion of our manufacturing facility in China. At December 31, 2016 and 2015, the amounts outstanding under these facilities were $315 million and $465 million , respectively. The facilities ultimately mature in 2024 and principal amortization began in 2015. The facilities contain covenants relating to the Chinese subsidiary and have customary representations and warranties and defaults relating to the Chinese subsidiary’s ability to perform its obligations under the facilities. At December 31, 2016 and 2015 , restricted cash related to funds obtained under these credit facilities was $8 million and $11 million , respectively. Debt Maturities The annual aggregate maturities of our debt (excluding the impact of deferred financing fees and unamortized discounts) and capital leases for the five years subsequent to December 31, 2016 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) 2017 2018 2019 2020 2021 U.S. $ 6 $ 59 $ 401 $ 283 $ 85 Foreign 675 253 497 61 19 $ 681 $ 312 $ 898 $ 344 $ 104 DERIVATIVE FINANCIAL INSTRUMENTS We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes. Foreign Currency Contracts We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation. The following table presents fair values for foreign currency contracts not designated as hedging instruments: December 31, December 31, (In millions) 2016 2015 Fair Values — Current asset (liability): Accounts receivable $ 30 $ 10 Other current liabilities (18 ) (10 ) At December 31, 2016 and 2015 , these outstanding foreign currency derivatives had notional amounts of $1,812 million and $1,094 million , respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains of $4 million and $79 million in 2016 and 2015 , respectively, on foreign currency derivatives. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures. The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: December 31, December 31, (In millions) 2016 2015 Fair Values — Current asset (liability): Accounts receivable $ 9 $ 5 Other current liabilities — (1 ) Fair Values — Long Term asset (liability): Other assets $ 2 $ — At December 31, 2016 and 2015 , these outstanding foreign currency derivatives had notional amounts of $293 million and $168 million , respectively, and primarily related to U.S. dollar denominated intercompany transactions. We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets. The following table presents the classification of changes in fair values of foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) (Income) Expense 2016 2015 Amounts deferred to AOCL $ (12 ) $ (20 ) Amount of deferred loss (gain) reclassified from AOCL into CGS (6 ) (28 ) Amounts excluded from effectiveness testing (1 ) 1 The estimated net amount of the deferred gains at December 31, 2016 that is expected to be reclassified to earnings within the next twelve months is $11 million . The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that are recognized market makers at the time we entered into those contracts. We seek to control our credit exposure to these counterparties by diversifying across multiple counterparties, by setting counterparty credit limits based on long term credit ratings and other indicators of counterparty credit risk such as credit default swap spreads, and by monitoring the financial strength of these counterparties on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to counterparties in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a counterparty. However, the inability of a counterparty to fulfill its contractual obligations to us could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 2016 2015 2016 2015 Assets: Investments $ 9 $ 7 $ 9 $ 7 $ — $ — $ — $ — Foreign Exchange Contracts 41 15 — — 41 15 — — Total Assets at Fair Value $ 50 $ 22 $ 9 $ 7 $ 41 $ 15 $ — $ — Liabilities: Foreign Exchange Contracts $ 18 $ 11 $ — $ — $ 18 $ 11 $ — $ — Total Liabilities at Fair Value $ 18 $ 11 $ — $ — $ 18 $ 11 $ — $ — The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at December 31: December 31, December 31, (In millions) 2016 2015 Fixed Rate Debt: Carrying amount — liability $ 3,514 $ 3,844 Fair value — liability 3,669 4,018 Variable Rate Debt: Carrying amount — liability $ 1,679 $ 1,767 Fair value — liability 1,678 1,765 Long term debt with a fair value of $3,804 million and $4,291 million at December 31, 2016 and 2015, respectively, was estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions . |
Pension, Other Postretirement B
Pension, Other Postretirement Benefits and Savings Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension, Other Postretirement Benefits and Savings Plans | Pension, Other Postretirement Benefits and Savings Plans We provide employees with defined benefit pension or defined contribution savings plans. Our hourly U.S. pension plans are frozen and provide benefits based on length of service. The principal salaried U.S. pension plans are frozen and provide benefits based on final five-year average earnings formulas. Salaried employees who made voluntary contributions to these plans receive higher benefits. We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Substantial portions of the health care benefits for U.S. salaried retirees are not insured and are funded from operations. During the second quarter of 2016, annuities were purchased from existing plan assets to settle $ 41 million in obligations of one of our U.K. pension plans which resulted in a settlement charge of $ 14 million. During 2015, we offered lump sum payments over a limited time to certain former employees in our U.S. pension plans. Payments of $190 million related to this offer were made from existing plan assets in the fourth quarter of 2015. As a result, total lump sum payments from these plans exceeded annual service and interest cost in 2015, and we recognized a pre-tax corporate pension settlement charge of $137 million in the fourth quarter of 2015. During the first quarter of 2014, we made contributions of $ 1,167 million, including discretionary contributions of $ 907 million, to fully fund our hourly U.S. pension plans. As a result, and in accordance with our master collective bargaining agreement with the United Steelworkers, the hourly U.S. pension plans were frozen to future accruals effective April 30, 2014. As a result of the accrual freezes to the hourly U.S. pension plans, we recognized curtailment charges of $33 million in the first quarter of 2014. In the first quarter of 2014, we ceased production at one of our manufacturing facilities in Amiens, France and recorded curtailment gains of $ 22 million during 2014, which is included in rationalization charges, related to the termination of employees at that facility who were participants in France's retirement indemnity plan. Total benefits cost and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Benefits cost: Service cost $ 5 $ 4 $ 15 $ 29 $ 43 $ 34 $ 3 $ 3 $ 4 Interest cost 164 238 256 80 113 131 12 15 19 Expected return on plan assets (255 ) (295 ) (311 ) (88 ) (107 ) (118 ) — — (1 ) Amortization of prior service cost (credit) — — 1 — 1 1 (45 ) (45 ) (45 ) Amortization of net losses 109 106 114 27 32 35 5 7 8 Net periodic cost 23 53 75 48 82 83 (25 ) (20 ) (15 ) Curtailments/settlements/termination benefits — 137 32 16 2 (13 ) 2 — — Total benefits cost $ 23 $ 190 $ 107 $ 64 $ 84 $ 70 $ (23 ) $ (20 ) $ (15 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service (credit) cost from plan amendments $ — $ — $ (1 ) $ — $ — $ 1 $ — $ — $ — Increase (decrease) in net actuarial losses 81 150 292 35 (45 ) (78 ) (1 ) (19 ) 3 Amortization of prior service (cost) credit in net periodic cost — — (1 ) — (1 ) (1 ) 45 45 45 Amortization of net losses in net periodic cost (109 ) (106 ) (114 ) (27 ) (34 ) (36 ) (5 ) (7 ) (8 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures — (386 ) (32 ) (17 ) (5 ) (16 ) — 4 — Deconsolidation of Venezuelan subsidiary (Note 1) — — — — (62 ) — — — — Total recognized in other comprehensive loss (income) before tax and minority (28 ) (342 ) 144 (9 ) (147 ) (130 ) 39 23 40 Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority $ (5 ) $ (152 ) $ 251 $ 55 $ (63 ) $ (60 ) $ 16 $ 3 $ 25 We use the fair value of pension assets in the calculation of pension expense for all plans. Total benefits (credit) cost for our other postretirement benefits was $(31) million , $(28) million and $(24) million for our U.S. plans in 2016 , 2015 and 2014 , respectively, and $8 million , $8 million and $9 million for our non-U.S. plans in 2016 , 2015 and 2014 , respectively. The estimated net actuarial loss for the defined benefit pension plans that will be amortized from AOCL into benefits cost in 2017 is $112 million for our U.S. plans and $29 million for our non-U.S. plans. The estimated prior service credit and net actuarial loss for the other postretirement benefit plans that will be amortized from AOCL into benefits cost in 2017 are a benefit of $29 million and expense of $6 million , respectively. The Medicare Prescription Drug Improvement and Modernization Act provides plan sponsors a federal subsidy for certain qualifying prescription drug benefits covered under the sponsor’s postretirement health care plans. Our other postretirement benefits cost is presented net of this subsidy. The change in benefit obligation and plan assets for 2016 and 2015 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2016 and 2015 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Change in benefit obligation: Beginning balance $ (5,338 ) $ (6,507 ) $ (2,808 ) $ (3,178 ) $ (291 ) $ (361 ) Newly adopted plans — — (2 ) (9 ) — — Service cost — benefits earned (5 ) (4 ) (29 ) (43 ) (3 ) (3 ) Interest cost (164 ) (238 ) (80 ) (113 ) (12 ) (15 ) Actuarial gain (loss) (171 ) 262 (384 ) (5 ) — 22 Participant contributions — — (2 ) (2 ) (13 ) (15 ) Curtailments/settlements/termination benefits 1 285 52 19 (2 ) — Divestitures — 500 — — — 6 Deconsolidation of Venezuelan subsidiary (Note 1) — — — 80 — — Foreign currency translation — — 262 303 (10 ) 35 Benefit payments 392 364 128 140 37 40 Ending balance $ (5,285 ) $ (5,338 ) $ (2,863 ) $ (2,808 ) $ (294 ) $ (291 ) Change in plan assets: Beginning balance $ 5,011 $ 6,250 $ 2,493 $ 2,721 $ 3 $ 5 Newly adopted plans — — 1 9 — — Actual return on plan assets 345 (117 ) 393 60 1 — Company contributions to plan assets — — 56 60 2 2 Cash funding of direct participant payments 9 7 24 36 22 23 Participant contributions — — 2 2 13 15 Settlements (1 ) (285 ) (51 ) (18 ) — — Divestitures — (480 ) — — — — Foreign currency translation — — (283 ) (237 ) — (2 ) Benefit payments (392 ) (364 ) (128 ) (140 ) (37 ) (40 ) Ending balance $ 4,972 $ 5,011 $ 2,507 $ 2,493 $ 4 $ 3 Funded status at end of year $ (313 ) $ (327 ) $ (356 ) $ (315 ) $ (290 ) $ (288 ) Other postretirement benefits funded status was $(143) million and $(164) million for our U.S. plans at December 31, 2016 and 2015 , respectively, and $(147) million and $(124) million for our non-U.S. plans at December 31, 2016 and 2015 , respectively. The funded status recognized in the Consolidated Balance Sheets consists of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Noncurrent assets $ — $ — $ 231 $ 249 $ — $ — Current liabilities (12 ) (12 ) (19 ) (19 ) (21 ) (23 ) Noncurrent liabilities (301 ) (315 ) (568 ) (545 ) (269 ) (265 ) Net amount recognized $ (313 ) $ (327 ) $ (356 ) $ (315 ) $ (290 ) $ (288 ) The amounts recognized in AOCL, net of tax, consist of: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Prior service (credit) cost $ (4 ) $ (4 ) $ 1 $ 2 $ (59 ) $ (104 ) Net actuarial loss 2,615 2,643 685 693 68 74 Gross amount recognized 2,611 2,639 686 695 9 (30 ) Deferred income taxes (118 ) (128 ) (115 ) (96 ) (20 ) (9 ) Net amount recognized $ 2,493 $ 2,511 $ 571 $ 599 $ (11 ) $ (39 ) The following table presents significant weighted average assumptions used to determine benefit obligations at December 31: Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Discount rate: — U.S. 3.99 % 4.20 % 3.72 % 3.86 % — Non-U.S. 2.72 3.47 5.12 5.30 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 3.18 2.63 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 2016 2015 2014 2016 2015 2014 Discount rate for determining interest cost: — U.S. 3.23 3.89 4.40 2.98 3.59 4.06 — Non-U.S. 3.37 3.31 4.36 6.31 4.89 6.62 Expected long term return on plan assets: — U.S. 5.33 5.00 5.47 N/A N/A N/A — Non-U.S. 3.81 4.12 5.12 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. 2.63 2.88 3.11 N/A N/A N/A Effective January 1, 2016, we changed the method used to measure the service and interest components of net periodic cost for pension and other postretirement benefits for plans that utilize a yield curve approach. We elected to utilize a full yield curve approach in the measurement of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of projected benefit cash flows to the corresponding spot rates on the yield curve. This change did not affect the measurement of our plan benefit obligations and reduced our 2016 net periodic pension cost by approximately $65 million . We have accounted for this change as a change in accounting estimate. For 2016 , a weighted average discount rate of 3.23% 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, 2015, applied to our expected benefit payment cash flows. For our non-U.S. locations, a weighted average discount rate of 3.37 % 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 2016 , an assumed weighted average long term rate of return of 5.33% 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 3.81% 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, 2016 . Benefit payments for other postretirement benefits are presented net of retiree contributions: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. Without Medicare Part D Subsidy Medicare Part D Subsidy Receipts 2017 $ 431 $ 124 $ 23 $ 1 2018 415 125 23 1 2019 396 129 22 1 2020 387 132 22 1 2021 382 133 21 1 2022-2026 1,765 733 103 5 The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2016 2015 2016 2015 All plans: Accumulated benefit obligation $ 5,275 $ 5,329 $ 2,792 $ 2,722 Plans not fully-funded: Projected benefit obligation $ 5,282 $ 5,336 $ 911 $ 876 Accumulated benefit obligation 5,273 5,327 862 811 Fair value of plan assets 4,970 5,009 327 316 Certain non-U.S. subsidiaries maintain unfunded pension plans consistent with local practices and requirements. At December 31, 2016 , these plans accounted for $219 million of our accumulated pension benefit obligation, $239 million of our projected pension benefit obligation, and $65 million of our AOCL adjustment. At December 31, 2015 , these plans accounted for $233 million of our accumulated pension benefit obligation, $256 million of our projected pension benefit obligation, and $68 million of our AOCL adjustment. We expect to contribute approximately $50 million to $75 million to our funded non-U.S. pension plans in 2017. Assumed health care cost trend rates at December 31 follow: 2016 2015 Health care cost trend rate assumed for the next year 6.5 % 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 2022 A 1% change in the assumed health care cost trend would have increased (decreased) the accumulated other postretirement benefits obligation at December 31, 2016 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 $ 19 $ (16 ) 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. 2016 2015 2016 2015 Cash and short term securities 3 % 5 % 1 % 1 % Equity securities 6 6 9 9 Debt securities 91 89 78 77 Alternatives — — 12 13 Total 100 % 100 % 100 % 100 % Our pension investment policy recognizes the long term nature of pension liabilities, the benefits of diversification across asset classes and the effects of inflation. The portfolio for plans that are fully funded is designed to offset the future impact of discount rate movements on the funded status for those plans. The diversified portfolio for plans that are not fully funded is designed to maximize returns consistent with levels of liquidity and investment risk that are prudent and reasonable. All assets are managed externally according to target asset allocation guidelines we have established. Manager guidelines prohibit the use of any type of investment derivative without our prior approval. Portfolio risk is controlled by having managers comply with guidelines, establishing the maximum size of any single holding in their portfolios and by using managers with different investment styles. We periodically undertake asset and liability modeling studies to determine the appropriateness of the investments. The portfolio of our U.S. pension plan assets includes holdings of global high quality and high yield fixed income securities, short term interest bearing deposits, and private equities. The target asset allocation of our U.S. pension plans is 94% in duration-matched fixed income securities and 6% in equity securities. Actual U.S. pension fund asset allocations are reviewed on a periodic basis and the pension funds are rebalanced to target ranges on an as needed basis. The portfolios of our non-U.S. pension plans include holdings of U.S. and non-U.S. equities, global high quality and high yield fixed income securities, hedge funds, currency derivatives, insurance contracts, repurchase agreements, and short term interest bearing deposits. The weighted average target asset allocation of the non-U.S. pension funds is approximately 10% equities, 80% fixed income, and 10% alternative investments. The fair values of our pension plan assets at December 31, 2016 , 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 $ 62 $ 58 $ 4 $ — $ 24 $ 23 $ 1 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 20 20 — — Commingled Funds — — — — 134 16 — 118 Mutual Funds — — — — 3 3 — — Debt Securities Corporate Bonds 2,707 — 2,707 — 154 13 141 — Government Bonds 968 — 968 — 2,148 68 2,080 — Repurchase Agreements — — — — (777 ) — (777 ) — Asset Backed Securities 63 — 63 — 30 2 28 — Commingled Funds — — — — 9 — 9 — Mutual Funds — — — — 5 5 — — Alternatives Real Estate — — — — 62 — 1 61 Insurance Contracts 2 — — 2 14 — — 14 Other Investments 1 — 1 — 10 2 5 3 Total Investments in the Fair Value Hierarchy 3,803 $ 58 $ 3,743 $ 2 1,836 $ 152 $ 1,488 $ 196 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 38 59 Mutual Funds — 21 Partnership Interests 263 — Debt Securities Mutual funds 123 5 Commingled Funds 697 471 Short Term Securities Commingled Funds 87 2 Alternatives Commingled Funds — 154 Real Estate — 59 Total Investments 5,011 2,607 Other (39 ) (100 ) Total Plan Assets $ 4,972 $ 2,507 The fair values of our pension plan assets at December 31, 2015 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 103 $ 100 $ 3 $ — $ 28 $ 28 $ — $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds — — — — 17 17 — — Mutual Funds — — — — 3 3 — — Debt Securities Corporate Bonds 2,413 — 2,413 — 154 14 140 — Government Bonds 1,091 — 1,091 — 2,093 67 2,026 — Repurchase Agreements — — — — (719 ) — (719 ) — Asset Backed Securities 158 — 158 — 11 2 2 7 Commingled Funds — — — — 9 — 9 — Mutual Funds — — — — 3 3 — — Alternatives Real Estate — — — — 72 — — 72 Insurance Contracts 2 — — 2 56 — — 56 Other Investments (2 ) — (2 ) — 9 1 6 2 Total Investments in the Fair Value Hierarchy 3,765 $ 100 $ 3,663 $ 2 1,755 $ 154 $ 1,464 $ 137 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 6 121 Mutual Funds — 57 Partnership Interests 295 — Debt Securities Mutual funds 86 5 Commingled Funds 714 431 Short Term Securities Commingled Funds 137 2 Alternatives Commingled Funds — 127 Real Estate — 69 Total Investments 5,003 2,567 Other 8 (74 ) Total Plan Assets $ 5,011 $ 2,493 The fair value tables for all years presented reflect removing investments in the fair value hierarchy for which fair value is measured using the net asset value ("NAV") per share practical expedient. At December 31, 2016 and 2015 , 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 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 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 invested in hedge funds and currency derivatives, which are valued based on the NAV as determined by the fund manager using the most recent financial information available. Participation in real estate funds are valued based on institutional bid evaluations or the NAV as determined by the fund manager using the most recent financial information available. Other investments include derivative financial instruments, which are primarily valued using independent pricing sources which utilize industry standard derivative valuation models, and directed insurance contracts, which are valued as reported by the issuer. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth a summary of changes in fair value of the pension plan investments classified as Level 3 for the year ended December 31, 2016 : Non-U.S. (In millions) Insurance Contracts Real Estate Equity Securities - Commingled Funds Other Balance, beginning of year $ 56 $ 72 $ — $ 9 Realized gains (losses) 3 1 — — Purchases, sales, issuances and settlements (net) (42 ) — 132 — Transfers from Level 3 — — — (7 ) Foreign currency translation (3 ) (12 ) (14 ) 1 Balance, end of year $ 14 $ 61 $ 118 $ 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, 2015 : Non-U.S. (In millions) Insurance Contracts Real Estate Other Balance, beginning of year $ 18 $ 67 $ 4 Unrealized (losses) gains relating to instruments still held at the reporting date — 8 — Purchases, sales, issuances and settlements (net) 41 — 7 Foreign currency translation (3 ) (3 ) (2 ) Balance, end of year $ 56 $ 72 $ 9 Other postretirement benefits plan assets at December 31, 2016 and 2015 , 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 $122 million , $125 million and $112 million for 2016 , 2015 and 2014 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Our stock compensation plans (collectively, the “Plans”) permit the grant of stock options, stock appreciation rights (“SARs”), performance share units, restricted stock, restricted stock units and other stock-based awards to employees and directors. Our current stock compensation plan, the 2013 Performance Plan, was adopted on April 15, 2013 and expires on April 14, 2023. A total of 11,000,000 shares of our common stock may be issued in respect of grants made under the 2013 Performance Plan. Any shares of common stock that are subject to awards of stock options or SARs will be counted as one share for each share granted for purposes of the aggregate share limit and any shares of common stock that are subject to any other awards will be counted as 1.61 shares for each share granted for purposes of the aggregate share limit. In addition, shares of common stock that are subject to awards issued under the 2013 Performance Plan or certain prior stock compensation plans that expire according to their terms or are forfeited, terminated, canceled or surrendered or are settled, or can be paid, only in cash, or are surrendered in payment of taxes associated with such awards (other than stock options or SARs) will be available for issuance pursuant to a new award under the 2013 Performance Plan. Shares issued under our stock compensation plans are usually issued from shares of our common stock held in treasury. Stock Options Grants of stock options and SARs (collectively referred to as “options”) under the Plans generally have a graded vesting period of four years whereby one-fourth of the awards vest on each of the first four anniversaries of the grant date, an exercise price equal to the fair market value of one share of our common stock on the date of grant (calculated as the average of the high and low price or the closing market price on that date depending on the terms of the related Plan) and a contractual term of ten years . The exercise of tandem SARs cancels an equivalent number of stock options and conversely, the exercise of stock options cancels an equivalent number of tandem SARs. Option grants are cancelled on, or 90 days following, termination of employment unless termination is due to retirement, death or disability under certain circumstances, in which case, all outstanding options vest fully and remain outstanding for a term set forth in the related grant agreement. The following table summarizes the activity related to options during 2016 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 7,782,696 $ 17.15 Options granted 730,349 29.90 Options exercised (1,057,887 ) 17.34 $ 14 Options expired (15,488 ) 14.07 Options cancelled (266,622 ) 22.86 Outstanding at December 31 7,173,048 18.21 5.3 91 Vested and expected to vest at December 31 6,966,579 18.00 5.2 91 Exercisable at December 31 5,296,056 15.70 4.3 81 Available for grant at December 31 7,512,420 In addition, the aggregate intrinsic value of options exercised in 2015 and 2014 was $40 million and $37 million , respectively. Significant option groups outstanding at December 31, 2016 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/22/2016 676,514 5,499 29.90 9.2 2/23/2015 611,700 160,854 27.16 8.2 2/24/2014 424,674 214,199 26.44 7.2 2/28/2013 1,280,205 937,835 12.98 6.2 2/27/2012 942,736 942,736 12.94 5.2 2/22/2011 669,305 669,305 13.91 4.2 2/23/2010 494,470 494,470 12.74 3.2 2/26/2009 438,434 438,434 4.81 2.2 2/21/2008 400,560 400,560 26.74 1.1 2/27/2007 253,706 253,706 24.71 0.2 All other 980,744 778,458 (1 ) (1 ) 7,173,048 5,296,056 (1) Options in the “All other” category had exercise prices ranging from $6.22 to $36.25 . The weighted average exercise price for options outstanding and exercisable in that category was $19.43 and $17.82 , respectively, while the remaining weighted average contractual term was 5.3 and 4.6 , respectively. Weighted average grant date fair values of stock options and the assumptions used in estimating those fair values are as follows: 2016 2015 2014 Weighted average grant date fair value $ 11.92 $ 11.51 $ 11.48 Black-Scholes model assumptions (1) : Expected term (years) 7.20 7.30 7.40 Interest rate 1.45 % 1.83 % 2.10 % Volatility 40.78 % 42.00 % 43.45 % Dividend yield 0.94 % 0.88 % 0.81 % (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. Performance Share Units Performance share units granted under the Plans are earned over a three -year period beginning January 1 of the year of grant. Total units earned for grants made in 2016, 2015 and 2014, 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 2016 : Units Weighted Average Grant Date Fair Value Unvested at January 1 318,270 $ 28.64 Units granted 194,108 30.95 Units vested (104,614 ) 29.00 Units forfeited (38,461 ) 29.38 Unvested at December 31 369,303 29.68 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 2016 : Units Weighted Average Grant Date Fair Value Unvested at January 1 673,093 $ 26.16 Units granted 320,283 29.99 Units vested and settled (134,944 ) 22.23 Units forfeited (31,973 ) 28.73 Unvested at December 31 826,459 28.14 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) 2016 2015 2014 Stock-based compensation expense recognized $ 23 $ 19 $ 20 Tax benefit (8 ) (7 ) (7 ) After-tax stock-based compensation expense $ 15 $ 12 $ 13 Cash payments to settle SARs $ 1 $ 2 $ 2 Cash received from stock option exercises $ 17 $ 53 $ 39 As of December 31, 2016 , unearned compensation cost related to the unvested portion of all stock-based awards was approximately $32 million and is expected to be recognized over the remaining vesting period of the respective grants, through March 2021. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Environmental Matters We have recorded liabilities totaling $55 million and $50 million at December 31, 2016 and 2015 , 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, $21 million and $12 million were included in Other Current Liabilities at December 31, 2016 and 2015 , 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 $248 million and $264 million for anticipated costs related to workers’ compensation at December 31, 2016 and 2015 , respectively. Of these amounts, $48 million and $54 million were included in Current Liabilities as part of Compensation and Benefits at December 31, 2016 and 2015 , 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, 2016 and 2015 , the liability was discounted using a risk-free rate of return. At December 31, 2016, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $30 million . General and Product Liability and Other Litigation We have recorded liabilities totaling $316 million and $315 million , including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at December 31, 2016 and 2015 , respectively. Of these amounts, $49 million and $45 million were included in Other Current Liabilities at December 31, 2016 and 2015 , 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, 2016 , we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates. We have recorded an indemnification asset within Accounts Receivable of $6 million and within Other Assets of $29 million for SRI's obligation to indemnify us for certain product liability claims related to products manufactured by GDTNA during the existence of the global alliance with SRI, subject to certain caps 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 122,700 claims by defending and obtaining the dismissal thereof or by entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $517 million and $497 million through December 31, 2016 and 2015 , 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) 2016 2015 2014 Pending claims, beginning of year 67,400 73,800 74,000 New claims filed during the year 1,900 1,900 1,900 Claims settled/dismissed during the year (4,900 ) (8,300 ) (2,100 ) Pending claims, end of year 64,400 67,400 73,800 Payments (1) $ 20 $ 19 $ 20 (1) Represents amount spent by us and our insurers on asbestos litigation defense and claim resolution. We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $171 million at December 31, 2016 and 2015 . 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 changed circumstances arising in the future may result in an increase in the recorded obligation, and that increase may be significant. We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery. We recorded a receivable related to asbestos claims of $123 million at December 31, 2016 and $117 million at December 31, 2015 . We expect that approximately 70% of asbestos claim related losses would be recoverable through insurance during the period covered by the estimated liability. Of these amounts, $12 million was included in Current Assets as part of Accounts Receivable at both December 31, 2016 and 2015 . The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary carriers and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers. We believe that, at December 31, 2016 , we had approximately $430 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements. We also had additional unsettled excess level policy limits potentially applicable to such costs. We had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements. 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 assets and liabilities related to pending and expected future asbestos claims and insurance recoveries is subject to numerous uncertainties, including, but not limited to, changes in: • the litigation environment, • Federal and state law governing the compensation of asbestos claimants, • recoverability of receivables due to potential insolvency of carriers, • our approach to defending and resolving claims, and • the level of payments made to claimants from other sources, including other defendants and 524(g) trusts. As a result, with respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Depending upon the nature of these characteristics, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us. Amiens Labor Claims Approximately 840 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €117 million ( $123 million ) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims. Other Actions We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations. Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods. Income Tax Matters The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, result in a reduction in our effective tax rate in the period of resolution. While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims. Binding Commitments and Guarantees At December 31, 2016 , we had binding commitments for raw materials, capital expenditures, utilities and various other types of contracts. Total commitments on contracts that extend beyond 2017 are expected to total approximately $3,100 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 $40 million and $49 million at December 31, 2016 and 2015 , respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. Normally there is no separate premium received by us as consideration for the issuance of guarantees. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of approximately $46 million to an insurance company related to SRI's obligation to pay GDTNA's outstanding workers' compensation claims arising during the existence of the global alliance. As of December 31, 2016, this guarantee has been reduced to $38 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 decrease over time as GDTNA pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event , we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2020 . We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees. Indemnifications At December 31, 2016 , 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 $19 million and $17 million for potential claims under warranties offered by us at December 31, 2016 and 2015 , respectively, the majority of which is recorded in Other Current Liabilities. The following table presents changes in the warranty reserve during 2016 and 2015 : (in millions) 2016 2015 Balance at January 1 $ 17 $ 22 Payments made during the period (29 ) (37 ) Expense recorded during the period 31 33 Translation adjustment — (1 ) Balance at December 31 $ 19 $ 17 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Capital Stock [Abstract] | |
Capital Stock | Capital Stock Mandatory Convertible Preferred Stock On April 1, 2014, all outstanding shares of mandatory convertible preferred stock automatically converted into 27,573,735 shares of common stock, net of fractional shares, at a conversion rate of 2.7574 shares of common stock per share of preferred stock. Dividends During 2014, we paid cash dividends of $15 million on our mandatory convertible preferred stock. No further dividends will be paid on our preferred stock following the conversion of shares into common stock on April 1, 2014. During 2016, 2015 and 2014 we paid cash dividends of $82 million , $68 million and $60 million , respectively, on our common stock. On January 12, 2017 , the Company’s Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.10 per share on our common stock, or approximately $25 million in the aggregate. The cash dividend will be paid on March 1, 2017 to stockholders of record as of the close of business on February 1, 2017 . Future quarterly dividends are subject to Board approval. Common Stock Repurchases On September 18, 2013, the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to $2.1 billion . This program expires on December 31, 2019. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During 2016, we repurchased 16,706,392 shares at an average price, including commissions, of $29.93 per share, or $500 million in the aggregate. Since 2013, we repurchased 31,214,110 shares at an average price, including commissions, of $29.26 per share, or $913 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 2016, we did not repurchase any shares from employees. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | Reclassifications out of Accumulated Other Comprehensive Loss The following table presents changes in Accumulated Other Comprehensive Loss (AOCL) by component, for the year ended December 31, 2016 , 2015 and 2014: (In millions) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Unrealized Investment Gains Total Balance at December 31, 2013 $ (690 ) $ (3,278 ) $ (1 ) $ 34 $ (3,935 ) Other comprehensive income (loss) before reclassifications (206 ) (112 ) 13 2 (303 ) Amounts reclassified from accumulated other comprehensive loss 3 105 — — 108 Purchase of subsidiary shares from minority interest (1 ) — — — (1 ) Balance at December 31, 2014 $ (894 ) $ (3,285 ) $ 12 $ 36 $ (4,131 ) Other comprehensive income (loss) before reclassifications (251 ) (68 ) 15 (4 ) (308 ) Amounts reclassified from accumulated other comprehensive loss 16 325 (21 ) (32 ) 288 Purchase of subsidiary shares from minority interest (3 ) (105 ) 1 — (107 ) Deconsolidation of Venezuelan subsidiary (Note 1) 186 62 — — 248 Balance at December 31, 2015 $ (946 ) $ (3,071 ) $ 7 $ — $ (4,010 ) Other comprehensive income (loss) before reclassifications (209 ) (62 ) 8 — (263 ) Amounts reclassified from accumulated other comprehensive loss — 80 (5 ) — 75 Balance at December 31, 2016 $ (1,155 ) $ (3,053 ) $ 10 $ — $ (4,198 ) The following table presents reclassifications out of AOCL for the year ended December 31, 2016 , 2015 and 2014: Year Ended December 31, (In millions) 2016 2015 2014 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Foreign Currency Translation Adjustment, before tax $ — $ 16 $ 3 Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) — 186 — Loss on Deconsolidation of Venezuelan Subsidiary Tax effect — — — United States and Foreign Taxes Minority interest — — — Minority Shareholders' Net Income Net of tax $ — $ 202 $ 3 Goodyear Net Income Amortization of prior service cost and unrecognized gains and losses $ 96 $ 103 $ 115 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments and settlements 17 142 48 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to divestitures — 184 — Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) — 62 — Loss on Deconsolidation of Venezuelan Subsidiary Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 113 $ 491 $ 163 Tax effect (33 ) (101 ) (49 ) United States and Foreign Taxes Minority interest — (3 ) (9 ) Minority Shareholders' Net Income Net of tax $ 80 $ 387 $ 105 Goodyear Net Income Deferred Derivative Gains, before tax $ (6 ) $ (28 ) $ — Cost of Goods Sold Tax effect 1 3 1 United States and Foreign Taxes Minority interest — 4 (1 ) Minority Shareholders' Net Income Net of tax $ (5 ) $ (21 ) $ — Goodyear Net Income Unrealized Investment Gains, before tax $ — $ (30 ) $ — Other (Income) Expense Tax effect — (2 ) — United States and Foreign Taxes Minority interest — — — Minority Shareholders' Net Income Net of tax $ — $ (32 ) $ — Goodyear Net Income Total reclassifications $ 75 $ 536 $ 108 Goodyear Net Income |
Consolidating Financial Informa
Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
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 $700 million outstanding principal amount of 7% senior notes due 2022 , the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 and the $900 million outstanding principal amount of 5.0% senior notes due 2026 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for: (i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations; (ii) Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes; (iii) Non-guarantor subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and (v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis. Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of the capital stock of various subsidiaries, loans and other capital transactions between members of the consolidated group. In 2015, the Parent Company acquired the common shares of a non-guarantor subsidiary from another non-guarantor subsidiary at a cost of $145 million . The transaction was settled by the cancellation of intercompany balances between the Parent Company and the transferring non-guarantor subsidiary. In addition, in 2015 the Parent Company capitalized approximately $90 million of intercompany receivables from a non-guarantor subsidiary with a corresponding increase in equity of the subsidiary. Certain non-guarantor subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries. Condensed Consolidating Balance Sheet December 31, 2016 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 185 $ 58 $ 889 $ — $ 1,132 Accounts Receivable 562 133 1,074 — 1,769 Accounts Receivable From Affiliates — 436 270 (706 ) — Inventories 1,336 142 1,178 (29 ) 2,627 Prepaid Expenses and Other Current Assets 57 3 130 — 190 Total Current Assets 2,140 772 3,541 (735 ) 5,718 Goodwill — 24 391 120 535 Intangible Assets 118 — 18 — 136 Deferred Income Taxes 2,010 31 373 — 2,414 Other Assets 222 54 387 5 668 Investments in Subsidiaries 4,646 541 — (5,187 ) — Property, Plant and Equipment 2,454 335 4,279 (28 ) 7,040 Total Assets $ 11,590 $ 1,757 $ 8,989 $ (5,825 ) $ 16,511 Liabilities: Current Liabilities: Accounts Payable-Trade $ 887 $ 160 $ 1,542 $ — $ 2,589 Accounts Payable to Affiliates 706 — — (706 ) — Compensation and Benefits 353 27 204 — 584 Other Current Liabilities 346 9 611 (3 ) 963 Notes Payable and Overdrafts — — 245 — 245 Long Term Debt and Capital Leases Due Within One Year 6 — 430 — 436 Total Current Liabilities 2,298 196 3,032 (709 ) 4,817 Long Term Debt and Capital Leases 3,685 — 1,113 — 4,798 Compensation and Benefits 676 104 680 — 1,460 Deferred Income Taxes — 1 84 — 85 Other Long Term Liabilities 424 13 188 1 626 Total Liabilities 7,083 314 5,097 (708 ) 11,786 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 252 — — — 252 Other Equity 4,255 1,443 3,674 (5,117 ) 4,255 Goodyear Shareholders’ Equity 4,507 1,443 3,674 (5,117 ) 4,507 Minority Shareholders’ Equity — Nonredeemable — — 218 — 218 Total Shareholders’ Equity 4,507 1,443 3,892 (5,117 ) 4,725 Total Liabilities and Shareholders’ Equity $ 11,590 $ 1,757 $ 8,989 $ (5,825 ) $ 16,511 Condensed Consolidating Balance Sheet December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 354 $ 70 $ 1,052 $ — $ 1,476 Accounts Receivable 814 136 1,083 — 2,033 Accounts Receivable From Affiliates — 609 — (609 ) — Inventories 1,199 157 1,152 (44 ) 2,464 Prepaid Expenses and Other Current Assets 42 3 105 3 153 Total Current Assets 2,409 975 3,392 (650 ) 6,126 Goodwill — 24 407 124 555 Intangible Assets 118 — 20 — 138 Deferred Income Taxes 2,049 19 73 — 2,141 Other Assets 216 81 350 7 654 Investments in Subsidiaries 4,088 383 — (4,471 ) — Property, Plant and Equipment 2,377 216 4,213 (29 ) 6,777 Total Assets $ 11,257 $ 1,698 $ 8,455 $ (5,019 ) $ 16,391 Liabilities: Current Liabilities: Accounts Payable-Trade $ 1,002 $ 189 $ 1,578 $ — $ 2,769 Accounts Payable to Affiliates 540 — 69 (609 ) — Compensation and Benefits 411 29 226 — 666 Other Current Liabilities 328 16 547 (5 ) 886 Notes Payable and Overdrafts — — 49 — 49 Long Term Debt and Capital Leases Due Within One Year 6 — 579 — 585 Total Current Liabilities 2,287 234 3,048 (614 ) 4,955 Long Term Debt and Capital Leases 3,796 — 1,278 — 5,074 Compensation and Benefits 725 97 646 — 1,468 Deferred Income Taxes — 1 92 (2 ) 91 Other Long Term Liabilities 529 15 119 (2 ) 661 Total Liabilities 7,337 347 5,183 (618 ) 12,249 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 267 — — — 267 Other Equity 3,653 1,351 3,050 (4,401 ) 3,653 Goodyear Shareholders’ Equity 3,920 1,351 3,050 (4,401 ) 3,920 Minority Shareholders’ Equity — Nonredeemable — — 222 — 222 Total Shareholders’ Equity 3,920 1,351 3,272 (4,401 ) 4,142 Total Liabilities and Shareholders’ Equity $ 11,257 $ 1,698 $ 8,455 $ (5,019 ) $ 16,391 Consolidating Statements of Operations Year Ended December 31, 2016 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 6,982 $ 1,774 $ 9,121 $ (2,719 ) $ 15,158 Cost of Goods Sold 5,147 1,632 6,971 (2,778 ) 10,972 Selling, Administrative and General Expense 955 151 1,302 (1 ) 2,407 Rationalizations 20 — 190 — 210 Interest Expense 276 12 129 (45 ) 372 Other (Income) Expense (45 ) — (52 ) 87 (10 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 629 (21 ) 581 18 1,207 United States and Foreign Tax (Benefit) Expense 104 (7 ) (180 ) 6 (77 ) Equity in Earnings (Loss) of Subsidiaries 739 122 — (861 ) — Net Income (Loss) 1,264 108 761 (849 ) 1,284 Less: Minority Shareholders’ Net Income — — 20 — 20 Goodyear Net Income (Loss) $ 1,264 $ 108 $ 741 $ (849 ) $ 1,264 Comprehensive Income (Loss) $ 1,076 $ 38 $ 585 $ (615 ) $ 1,084 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 8 — 8 Goodyear Comprehensive Income (Loss) $ 1,076 $ 38 $ 577 $ (615 ) $ 1,076 Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,566 $ 2,129 $ 10,308 $ (3,560 ) $ 16,443 Cost of Goods Sold 5,804 1,915 8,090 (3,645 ) 12,164 Selling, Administrative and General Expense 1,053 172 1,392 (3 ) 2,614 Rationalizations 13 — 101 — 114 Interest Expense 339 22 135 (58 ) 438 Loss on Deconsolidation of Venezuelan Subsidiary 374 — 272 — 646 Other (Income) Expense (455 ) (13 ) 173 154 (141 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 438 33 145 (8 ) 608 United States and Foreign Tax (Benefit) Expense 104 10 112 6 232 Equity in Earnings (Loss) of Subsidiaries (27 ) 19 — 8 — Net Income (Loss) 307 42 33 (6 ) 376 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 307 42 (36 ) (6 ) 307 Comprehensive Income (Loss) $ 535 $ 54 $ 46 $ (94 ) $ 541 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 32 (26 ) 6 Goodyear Comprehensive Income (Loss) $ 535 $ 54 $ 14 $ (68 ) $ 535 Consolidating Statements of Operations Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,915 $ 2,487 $ 12,051 $ (4,315 ) $ 18,138 Cost of Goods Sold 6,457 2,237 9,622 (4,410 ) 13,906 Selling, Administrative and General Expense 916 166 1,645 (7 ) 2,720 Rationalizations (6 ) — 101 — 95 Interest Expense 342 26 139 (63 ) 444 Other (Income) Expense (101 ) (11 ) 222 176 286 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 69 322 (11 ) 687 United States and Foreign Tax (Benefit) Expense (2,026 ) 14 174 4 (1,834 ) Equity in Earnings (Loss) of Subsidiaries 119 28 — (147 ) — Net Income (Loss) 2,452 83 148 (162 ) 2,521 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 2,452 83 79 (162 ) 2,452 Less: Preferred Stock Dividends 7 — — — 7 Goodyear Net Income (Loss) available to Common Shareholders $ 2,445 $ 83 $ 79 $ (162 ) $ 2,445 Comprehensive Income (Loss) $ 2,257 $ 89 $ (11 ) $ (58 ) $ 2,277 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 46 (26 ) 20 Goodyear Comprehensive Income (Loss) $ 2,257 $ 89 $ (57 ) $ (32 ) $ 2,257 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 (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 $ 598 $ 103 $ 875 $ (72 ) $ 1,504 Cash Flows from Investing Activities: Capital Expenditures (361 ) (116 ) (525 ) 6 (996 ) Asset Dispositions 11 — 24 — 35 Decrease (Increase) in Restricted Cash — — 6 — 6 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 60 — 60 Capital Contributions Received and Loans Incurred (257 ) — (576 ) 833 — Capital Redemptions and Loans Paid 163 — 148 (311 ) — Other Transactions — — (6 ) — (6 ) Total Cash Flows from Investing Activities (444 ) (116 ) (941 ) 528 (973 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred — 41 417 (41 ) 417 Short Term Debt and Overdrafts Paid (41 ) — (228 ) 41 (228 ) Long Term Debt Incurred 2,896 — 2,092 — 4,988 Long Term Debt Paid (3,016 ) — (2,417 ) — (5,433 ) Common Stock Issued 13 — — — 13 Common Stock Repurchased (500 ) — — — (500 ) Common Stock Dividends Paid (82 ) — — — (82 ) Capital Contributions Received and Loans Incurred 576 59 198 (833 ) — Capital Redemptions and Loans Paid (148 ) (80 ) (83 ) 311 — Intercompany Dividends Paid — (19 ) (47 ) 66 — Transactions with Minority Interests in Subsidiaries — — (11 ) — (11 ) Debt Related Costs and Other Transactions (21 ) — (3 ) — (24 ) Total Cash Flows from Financing Activities (323 ) 1 (82 ) (456 ) (860 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (15 ) — (15 ) Net Change in Cash and Cash Equivalents (169 ) (12 ) (163 ) — (344 ) Cash and Cash Equivalents at Beginning of the Year 354 70 1,052 — 1,476 Cash and Cash Equivalents at End of the Year $ 185 $ 58 $ 889 $ — $ 1,132 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 979 $ 149 $ 612 $ (53 ) $ 1,687 Cash Flows from Investing Activities: Capital Expenditures (315 ) (119 ) (558 ) 9 (983 ) Asset Dispositions 48 — 14 — 62 Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary — — (320 ) — (320 ) Decrease (Increase) in Restricted Cash — — (6 ) — (6 ) Short Term Securities Acquired — — (77 ) — (77 ) Short Term Securities Redeemed — — 69 — 69 Capital Contributions Received and Loans Incurred (70 ) — (90 ) 160 — Capital Redemptions and Loans Paid 122 — 125 (247 ) — Other Transactions — — (7 ) — (7 ) Total Cash Flows from Investing Activities (215 ) (119 ) (850 ) (78 ) (1,262 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 55 — 118 (70 ) 103 Short Term Debt and Overdrafts Paid (15 ) (16 ) (123 ) 70 (84 ) Long Term Debt Incurred 1,736 — 1,083 — 2,819 Long Term Debt Paid (2,341 ) — (974 ) — (3,315 ) Common Stock Issued 53 — — — 53 Common Stock Repurchased (180 ) — — — (180 ) Common Stock Dividends Paid (68 ) — — — (68 ) Capital Contributions Received and Loans Incurred 90 12 58 (160 ) — Capital Redemptions and Loans Paid (125 ) (15 ) (107 ) 247 — Intercompany Dividends Paid — (17 ) (27 ) 44 — Transactions with Minority Interests in Subsidiaries — — (9 ) — (9 ) Debt Related Costs and Other Transactions (18 ) — (15 ) — (33 ) Dissolution of Global Alliance (271 ) — — — (271 ) Total Cash Flows from Financing Activities (1,084 ) (36 ) 4 131 (985 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (13 ) (112 ) — (125 ) Net Change in Cash and Cash Equivalents (320 ) (19 ) (346 ) — (685 ) Cash and Cash Equivalents at Beginning of the Year 674 89 1,398 — 2,161 Cash and Cash Equivalents at End of the Year $ 354 $ 70 $ 1,052 $ — $ 1,476 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ (334 ) $ 195 $ 758 $ (279 ) $ 340 Cash Flows from Investing Activities: Capital Expenditures (303 ) (19 ) (607 ) 6 (923 ) Asset Dispositions 9 2 7 — 18 Decrease (Increase) in Restricted Cash (1 ) — 6 — 5 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 95 — 95 Capital Contributions Received and Loans Incurred (382 ) — (457 ) 839 — Capital Redemptions and Loans Paid 459 — 244 (703 ) — Other Transactions 13 — 13 — 26 Total Cash Flows from Investing Activities (205 ) (17 ) (771 ) 142 (851 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 22 — 60 (36 ) 46 Short Term Debt and Overdrafts Paid (14 ) (22 ) (24 ) 36 (24 ) Long Term Debt Incurred 601 — 1,241 — 1,842 Long Term Debt Paid (608 ) — (947 ) — (1,555 ) Common Stock Issued 39 — — — 39 Common Stock Repurchased (234 ) — — — (234 ) Common Stock Dividends Paid (60 ) — — — (60 ) Preferred Stock Dividends Paid (15 ) — — — (15 ) Capital Contributions Received and Loans Incurred 457 47 335 (839 ) — Capital Redemptions and Loans Paid (244 ) — (459 ) 703 — Intercompany Dividends Paid — (203 ) (70 ) 273 — Transactions with Minority Interests in Subsidiaries — — (49 ) — (49 ) Debt Related Costs and Other Transactions — — (1 ) — (1 ) Total Cash Flows from Financing Activities (56 ) (178 ) 86 137 (11 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (5 ) (308 ) — (313 ) Net Change in Cash and Cash Equivalents (595 ) (5 ) (235 ) — (835 ) Cash and Cash Equivalents at Beginning of the Year 1,269 94 1,633 — 2,996 Cash and Cash Equivalents at End of the Year $ 674 $ 89 $ 1,398 $ — $ 2,161 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 Allowance for doubtful accounts $ 105 $ 10 $ — $ (13 ) (a) $ (1 ) $ 101 Valuation allowance — deferred tax assets 621 (309 ) 2 — 12 326 2015 Allowance for doubtful accounts $ 89 $ 32 $ — $ (8 ) (a) $ (8 ) $ 105 Valuation allowance — deferred tax assets 632 31 8 (4 ) (46 ) 621 2014 Allowance for doubtful accounts $ 99 $ 19 $ — $ (39 ) (a) $ 10 $ 89 Valuation allowance — deferred tax assets 2,968 (2,253 ) (32 ) — (51 ) 632 Note: (a) Accounts receivable charged off. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective December 31, 2016, we adopted an accounting standards update with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. As required by the new standard, management completed its evaluation and identified no probable conditions or events, individually or in the aggregate, that would raise a substantial doubt about the Company's ability to continue as a going concern. In March 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update with new guidance on employee share-based payment accounting. This update involves several aspects of the accounting for share-based payment transactions, including income tax effects, forfeitures and classifications on the statement of cash flows. The new standard eliminates the accounting for excess tax benefits recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital, and instead requires all tax effects related to share-based payments to be recorded as a discrete adjustment through the income statement and recognized regardless of whether the benefit reduces taxes payable in the current period. We adopted the standards update in the third quarter of 2016 effective January 1, 2016, using a modified retrospective approach. As a result of the adoption, a cumulative effect adjustment to increase retained earnings by $56 million as of January 1, 2016 has been reflected in the financial statements to include all tax benefits that were not previously recognized. Also, for the year ended December 31, 2016, we have recognized an income tax benefit of approximately $5 million . The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. All tax related cash flows resulting from share-based payments will be reported as operating activities in the statement of cash flows. Effective January 1, 2016, we adopted an accounting standards update with new guidance on the presentation of debt issuance costs that requires costs incurred to issue debt to be presented on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Debt issuance costs incurred in connection with line-of-credit arrangements will be presented as an asset. The new guidance also requires the amortization of such costs be reported in Interest Expense in the Statement of Operations. The adoption of this standards update resulted in reclassifications of $15 million from Prepaid Expenses and Other Current Assets and $33 million from Other Assets which decreased Long Term Debt and Capital Leases Due Within One Year by $2 million and Long Term Debt and Capital Leases by $46 million at December 31, 2015. The adoption of this standards update also resulted in a reclassification of $26 million and $16 million of expense from Other (Income) Expense to Interest Expense in the Statement of Operations for the years ended December 31, 2015 and 2014, respectively. Recently Issued Accounting Standards In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019. The adoption of this standards update is not expected to impact our consolidated financial statements. In November 2016, the FASB issued an accounting standards update with new guidance on the presentation of restricted cash on the statement of cash flows. The standards update requires that the reconciliation of the beginning and end of period cash amounts shown in the statement of cash flows include restricted cash. When restricted cash is presented separately from cash and cash equivalents on the balance sheet, a reconciliation is required between the amounts presented on the statement of cash flows and the balance sheet. Also, the new guidance requires the disclosure of information about the nature of the restrictions. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In October 2016, the FASB issued an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers . The standards update is effective using the modified retrospective approach for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In August 2016, the FASB issued an accounting standards update with new guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in the standards update provide guidance on eight specific cash flow issues. The standards update is effective retrospectively for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact of this standards update on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update with new guidance on the transition to the equity method of accounting. This update eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. Instead, the investor is required to apply the equity method prospectively from the date the investment qualifies for the equity method. In addition, an entity that has an available-for-sale equity security that becomes qualified for the equity method must recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment qualifies for the equity method. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases. Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet. Lessor accounting is largely unchanged from the current accounting model. The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. It must be adopted using a modified retrospective approach, and provides for certain practical expedients. The transition will require application at the beginning of the earliest comparative period presented at the time of adoption. We are currently assessing the impact of this standards update on our consolidated financial statements. In July 2015, the FASB issued an accounting standards update with new guidance on the measurement of inventory. Inventory within the scope of this update is required to be measured at the lower of its cost or net realizable value, with net realizable value being the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standards update is effective prospectively for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The adoption of this standards update will not have a material impact on our consolidated financial statements. In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In 2016, the FASB issued accounting standards updates to address implementation issues and to clarify the guidance for identifying performance obligations, licenses and determining if a company is the principal or agent in a revenue arrangement. In August 2015, the FASB deferred the effective date of this standards update to fiscal years beginning after December 15, 2017, with early adoption permitted on the original effective date of fiscal years beginning after December 15, 2016. The standard permits the use of either a retrospective or modified retrospective application. We intend to use the modified retrospective approach. We have substantially completed our evaluation of significant contracts and are currently assessing the impact of adopting the standards update on our consolidated financial statements. We will continue our evaluation of the standards update through the date of adoption. |
Pension and Other Postretirement Plans | During the fourth quarter of 2015, the value of pension assets used in the calculation of pension expense for our Canadian plans was changed from market-related value to fair value. This change is considered preferable because it better reflects recent gains or losses from pension assets in pension expense. As a result, all of our pension plans now use fair value in the calculation of pension expense. The change to the fair value method for these plans was retrospectively applied by restating all periods presented. The impact on the consolidated financial statements for the prior periods presented was insignificant. |
Principles of Consolidation | 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: • recoverability of intangibles and other long-lived assets, • deferred tax asset valuation allowances and uncertain income tax positions, • workers’ compensation, • general and product liabilities and other litigation, • pension and other postretirement benefits, and • various other operating allowances and accruals, based on currently available information. Changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. |
Revenue Recognition | Revenues are recognized when finished products are shipped to unaffiliated customers, both title and the risks and rewards of ownership are transferred or services have been rendered and accepted, and collectability is reasonably assured. |
Accounts Receivable Valuation | A provision for sales returns, discounts and allowances is recorded at the time of sale. Appropriate provisions are made for uncollectible accounts based on historical loss experience, portfolio duration, economic conditions and credit risk. The adequacy of the allowances are assessed quarterly. |
Shipping and Handling Costs | Costs incurred for transportation of products to customers are recorded as a component of Cost of Goods Sold (“CGS”). |
Research and Development Costs | Research and development costs include, among other things, materials, equipment, compensation and contract services. These costs are expensed as incurred and included as a component of CGS. |
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. 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. |
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 are recorded within Notes Payable and Overdrafts. Cash flows associated with bank overdrafts are classified as financing activities. Customer prepayments for products and government grants received that are related to operations are reported as operating activities. Government grants received that are solely related to capital expenditures are reported as investing activities. |
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 market. Cost is determined using the first-in, first-out or the average cost method. Costs include direct material, direct labor and applicable manufacturing and engineering overhead. We allocate fixed manufacturing overheads based on normal production capacity and recognize abnormal manufacturing costs as period costs. We determine a provision for excess and obsolete inventory based on management’s review of inventories on hand compared to estimated future usage and sales. |
Goodwill and Other Intangible Assets | Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite useful lives are not amortized but are assessed for impairment annually with the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of the reporting unit or indefinite-lived intangible to its carrying amount. Under the qualitative assessment, an entity is not required to calculate the fair value unless the entity determines that it is more likely than not that the fair value is less than the carrying amount. If under the quantitative assessment the fair value is less than the carrying amount, then the amount of the impairment loss, if any, must be measured. In addition to annual testing, impairment testing is conducted when events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Intangible assets with finite useful lives are amortized to their estimated residual values over such finite lives, and reviewed for impairment whenever events or circumstances warrant such a review. |
Investments | Investments in marketable securities are stated at fair value. Fair value is determined using quoted market prices at the end of the reporting period and, when appropriate, exchange rates at that date. Unrealized gains and losses on marketable securities classified as available-for-sale are recorded in AOCL, net of tax. We regularly review our investments to determine whether a decline in fair value below the cost basis is other than temporary. If the decline in fair value is judged to be other than temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in the Consolidated Statements of Operations. |
Property, Plant and Equipment | Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method. Additions and improvements that substantially extend the useful life of property, plant and equipment, and interest costs incurred during the construction period of major projects are capitalized. Government grants to us that are solely related to capital expenditures are recorded as reductions of the cost of the associated assets. Repair and maintenance costs are expensed as incurred. Property, plant and equipment are depreciated to their estimated residual values over their estimated useful lives, and reviewed for impairment whenever events or circumstances warrant such a review. |
Foreign Currency Translation | 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. Ineffectiveness in hedging relationships is recorded in Other (Income) Expense in the current period. Interest Rate Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income as Interest Expense in the same period that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges are recognized in income in the current period as Interest Expense. Gains and losses on contracts with no hedging designation are recorded in the current period in Other (Income) Expense. Foreign Currency Contracts — Gains and losses on contracts designated as cash flow hedges are initially deferred and recorded in AOCL. Amounts are transferred from AOCL and recognized in income in the same period and on the same line that the hedged item is recognized in income. Gains and losses on contracts designated as fair value hedges, excluding premiums and discounts, are recorded in Other (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 recognized in Other (Income) Expense over the life of the contract. Net Investment Hedging — Nonderivative instruments denominated in foreign currencies are used from time to time to hedge net investments in foreign subsidiaries. Gains and losses on these instruments are deferred and recorded in AOCL as Foreign Currency Translation Adjustments. These gains and losses are only recognized in income upon the complete or partial sale of the related investment or the complete liquidation of the investment. Termination of Contracts — Gains and losses (including deferred gains and losses in AOCL) are recognized in Other (Income) Expense when contracts are terminated concurrently with the termination of the hedged position. To the extent that such position remains outstanding, gains and losses are amortized to Interest Expense or to Other (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. |
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, mandatory convertible preferred stock and related dividends. All earnings per share amounts in these notes to the consolidated financial statements are diluted, unless otherwise noted. |
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. |
Reclassifications | Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Costs Associated with Rationa34
Costs Associated with Rationalization Programs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2013 $ 232 $ 5 $ 237 2014 charges 76 52 128 Incurred, Net of Foreign Currency Translation of $(18) million and $0 million, respectively (1) (186 ) (49 ) (235 ) Reversed to the Statement of Operations (5 ) (6 ) (11 ) Balance at December 31, 2014 $ 117 $ 2 $ 119 2015 charges 86 30 116 Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively (1) (106 ) (25 ) (131 ) Reversed to the Statement of Operations (1 ) — (1 ) Balance at December 31, 2015 $ 96 $ 7 $ 103 2016 charges 202 16 218 Incurred, Net of Foreign Currency Translation of $(13) million and $0 million, respectively (75 ) (18 ) (93 ) Reversed to the Statement of Operations (9 ) — (9 ) Balance at December 31, 2016 $ 214 $ 5 $ 219 (1) Incurred in 2015 of $131 million excludes $25 million , and incurred in 2014 of $235 million excludes $20 million , of rationalization payments for labor claims relating to a previously closed facility in Greece. |
Net Rationalization Charges Included in Income Before Income Taxes | The net rationalization charges included in Income before Income Taxes are as follows: (In millions) 2016 2015 2014 Current Year Plans Associate Severance and Other Related Costs $ 188 $ 66 $ 22 Other Exit and Non-Cancelable Lease Costs 1 7 1 Current Year Plans - Net Charges $ 189 $ 73 $ 23 Prior Year Plans Associate Severance and Other Related Costs $ 5 $ 19 $ 49 Benefit Plan Curtailment / Settlement Loss (Gain) 1 (1 ) (22 ) Other Exit and Non-Cancelable Lease Costs 15 23 45 Prior Year Plans - Net Charges 21 41 72 Total Net Charges $ 210 $ 114 $ 95 Asset Write-off and Accelerated Depreciation Charges $ 20 $ 8 $ 7 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Interest expense before capitalization $ 398 $ 457 $ 468 Capitalized interest (26 ) (19 ) (24 ) $ 372 $ 438 $ 444 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income and Expense | (In millions) 2016 2015 2014 Financing fees and financial instruments $ 83 $ 85 $ 61 Net gains on asset sales (31 ) (71 ) (3 ) General and product liability (income) expense - discontinued products (27 ) (25 ) 25 Royalty income (23 ) (192 ) (35 ) Interest income (15 ) (22 ) (28 ) Net foreign currency exchange (gains) losses (13 ) 77 239 Miscellaneous 16 7 27 $ (10 ) $ (141 ) $ 286 |
Dissolution of Global Allianc37
Dissolution of Global Alliance With Sumitomo Rubber Industries Dissolution of Global Alliance With Sumitomo Rubber Industries (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Net Pre-tax Gains on Dissolution | The net pre-tax gain on the dissolution transaction of $48 million is comprised of the following: (In millions) Pre-tax gain on sale of a controlling interest in GDTNA $ 23 Pre-tax gain on sale of a non-controlling investment in DGT 42 Pre-tax gain on sale of non-exclusive rights 19 Transaction costs and other (8 ) Net product liability claims (28 ) $ 48 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of Income before Income Taxes follow: (In millions) 2016 2015 2014 U.S. $ 595 $ 284 $ 400 Foreign 612 324 287 $ 1,207 $ 608 $ 687 |
Reconciliation of Income Taxes at the U.S. Statutory Rate to United States and Foreign Tax (Benefit) Expense | A reconciliation of income taxes at the U.S. statutory rate to United States and Foreign Tax (Benefit) Expense follows: (In millions) 2016 2015 2014 U.S. Federal income tax expense at the statutory rate of 35% $ 422 $ 213 $ 240 Net establishment (release) of foreign valuation allowances (354 ) 4 51 U.S. credits (R&D, foreign tax credits) and benefits offset to OCI (163 ) (72 ) — Adjustment for foreign income taxed at different rates (51 ) (39 ) (37 ) Net establishment (release) of U.S. valuation allowance 39 (8 ) (2,318 ) State income taxes, net of U.S. Federal benefit 16 10 12 Net foreign losses (income) with no tax due to valuation allowances 8 (19 ) 49 Net establishment (resolution) of uncertain tax positions 3 (13 ) 3 Deferred tax impact of enacted tax rate and law changes (2 ) (2 ) 33 Deconsolidation of Venezuelan subsidiary — 157 — Provision for undistributed foreign earnings — — 131 Other 5 1 2 United States and Foreign Tax (Benefit) Expense $ (77 ) $ 232 $ (1,834 ) |
Components of United States and Foreign Tax (Benefit) Expense | The components of United States and Foreign Tax (Benefit) Expense by taxing jurisdiction, follow: (In millions) 2016 2015 2014 Current: Federal $ (25 ) $ — $ — Foreign 175 154 135 State 2 (1 ) 1 152 153 136 Deferred: Federal 77 74 (2,103 ) Foreign (328 ) 5 84 State 22 — 49 (229 ) 79 (1,970 ) United States and Foreign Tax (Benefit) Expense $ (77 ) $ 232 $ (1,834 ) |
Deferred Tax Assets and Liabilities | Temporary differences and carryforwards giving rise to deferred tax assets and liabilities at December 31 follow: (In millions) 2016 2015 Tax loss carryforwards and credits $ 1,503 $ 1,415 Capitalized research and development expenditures 666 655 Accrued expenses deductible as paid 456 501 Postretirement benefits and pensions 294 288 Investment and receivables related to Venezuelan deconsolidation 134 157 Alternative minimum tax credit carryforwards (1) 43 78 Vacation and sick pay 37 37 Rationalizations and other provisions 36 22 Other 106 121 3,275 3,274 Valuation allowance (326 ) (621 ) Total deferred tax assets 2,949 2,653 Property basis differences (482 ) (459 ) Tax on undistributed earnings of subsidiaries (138 ) (144 ) Total net deferred tax assets $ 2,329 $ 2,050 (1) Unlimited carryforward period. |
Reconciliation of Unrecognized Tax Benefits | Reconciliation of Unrecognized Tax Benefits (In millions) 2016 2015 2014 Balance at January 1 $ 54 $ 81 $ 88 Increases related to prior year tax positions 19 10 15 Decreases related to prior year tax positions (8 ) (10 ) (12 ) Settlements (8 ) (14 ) (6 ) Foreign currency impact 6 (15 ) (4 ) Increases related to current year tax positions 1 2 — Lapse of statute of limitations (1 ) — — Balance at December 31 $ 63 $ 54 $ 81 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Common Share | Basic and diluted earnings per common share are calculated as follows: (In millions, except per share amounts) 2016 2015 2014 Earnings per share — basic: Goodyear net income $ 1,264 $ 307 $ 2,452 Less: Preferred stock dividends — — 7 Goodyear net income available to common shareholders $ 1,264 $ 307 $ 2,445 Weighted average shares outstanding 263 269 268 Earnings per common share — basic $ 4.81 $ 1.14 $ 9.13 Earnings per share — diluted: Goodyear net income $ 1,264 $ 307 $ 2,452 Less: Preferred stock dividends — — — Goodyear net income available to common shareholders $ 1,264 $ 307 $ 2,452 Weighted average shares outstanding 263 269 268 Dilutive effect of mandatory convertible preferred stock — — 7 Dilutive effect of stock options and other dilutive securities 3 4 4 Weighted average shares outstanding — diluted 266 273 279 Earnings per common share — diluted $ 4.74 $ 1.12 $ 8.78 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Sales Americas $ 8,172 $ 9,370 $ 9,881 Europe, Middle East and Africa 4,880 5,115 6,180 Asia Pacific 2,106 1,958 2,077 Net Sales $ 15,158 $ 16,443 $ 18,138 Segment Operating Income Americas $ 1,151 $ 1,266 $ 967 Europe, Middle East and Africa 461 435 438 Asia Pacific 373 319 301 Total Segment Operating Income 1,985 2,020 1,706 Less: Rationalizations 210 114 95 Interest expense 372 438 444 Other (income) expense (1) (10 ) (141 ) 286 Asset write-offs and accelerated depreciation 20 8 7 Corporate incentive compensation plans 76 103 97 Corporate pension curtailments/settlements (2) 16 137 33 Intercompany profit elimination 2 3 (9 ) Loss on deconsolidation of Venezuelan subsidiary — 646 — Retained expenses of divested operations 18 14 16 Other (3) 74 90 50 Income before Income Taxes $ 1,207 $ 608 $ 687 (1) Refer to Note 4. (2) Substantially all of the pension and curtailment settlement charges noted above relate to our SBUs; however, such costs were not included in segment operating income for purposes of management's assessment of SBU operating performance. (3) Primarily represents unallocated corporate costs. Also includes the elimination of $24 million , $25 million and $24 million for the years ended December 31, 2016, 2015 and 2014, respectively, of royalty income attributable to the strategic business units. |
Segment Assets | The following table presents segment assets at December 31: (In millions) 2016 2015 2014 Assets Americas (1) $ 6,701 $ 6,275 $ 7,019 Europe, Middle East and Africa 4,385 4,377 4,954 Asia Pacific 2,515 2,559 2,594 Total Segment Assets 13,601 13,211 14,567 Corporate (2) 2,910 3,180 3,433 $ 16,511 $ 16,391 $ 18,000 (1) Decrease in Americas segment assets between 2014 and 2015 was due primarily to the deconsolidation of our Venezuelan subsidiary on December 31, 2015. Refer to Note 1. (2) Corporate includes substantially all of our U.S. net deferred tax assets. |
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 and Germany were considered to be significant. (In millions) 2016 2015 2014 Net Sales United States $ 6,724 $ 7,338 $ 7,558 Germany 1,853 1,905 2,288 Other international 6,581 7,200 8,292 $ 15,158 $ 16,443 $ 18,138 Long-Lived Assets United States $ 2,651 $ 2,468 $ 2,464 China 716 766 809 Germany 717 778 833 Other international 2,956 2,765 3,047 $ 7,040 $ 6,777 $ 7,153 |
Rationalizations, Asset sales, Other Expense and Asset Write-offs and Accelerated Depreciation Attributable to the SBUs | Rationalizations, as described in Note 2, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales, as described in Note 4, Other (Income) Expense, and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows: (In millions) 2016 2015 2014 Rationalizations Americas $ 15 $ 15 $ (3 ) Europe, Middle East and Africa 184 95 89 Asia Pacific 1 4 9 Total Segment Rationalizations 200 114 95 Corporate 10 — — $ 210 $ 114 $ 95 (In millions) 2016 2015 2014 Net (Gains) Losses on Asset Sales Americas $ (4 ) $ (2 ) $ (8 ) Europe, Middle East and Africa (17 ) 14 7 Asia Pacific (1 ) (5 ) — Total Segment Asset Sales (22 ) 7 (1 ) Corporate (1) (9 ) (78 ) (2 ) $ (31 ) $ (71 ) $ (3 ) (1) Corporate gain on asset sales in 2015 included a $48 million gain on the dissolution of our global alliance with SRI and a $30 million gain on the sale of our investment in shares of SRI. Refer to Note 5. (In millions) 2016 2015 2014 Asset Write-offs and Accelerated Depreciation Americas $ 1 $ — $ — Europe, Middle East and Africa 19 8 7 Asia Pacific — — — Total Segment Asset Write-offs and Accelerated Depreciation $ 20 $ 8 $ 7 |
Segment Capital Expenditures, Depreciation and Amortization | The following tables present segment capital expenditures and depreciation and amortization: (In millions) 2016 2015 2014 Capital Expenditures Americas $ 618 $ 618 $ 434 Europe, Middle East and Africa 191 223 266 Asia Pacific 137 124 154 Total Segment Capital Expenditures 946 965 854 Corporate 50 18 69 $ 996 $ 983 $ 923 (In millions) 2016 2015 2014 Depreciation and Amortization Americas $ 366 $ 364 $ 376 Europe, Middle East and Africa 192 186 220 Asia Pacific 120 114 105 Total Segment Depreciation and Amortization 678 664 701 Corporate 49 34 31 $ 727 $ 698 $ 732 |
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) 2016 2015 2014 Equity in (Income) Americas $ — $ (3 ) $ (5 ) Europe, Middle East and Africa (1 ) (1 ) — Asia Pacific (1) — (12 ) (23 ) Total Segment Equity in (Income) $ (1 ) $ (16 ) $ (28 ) (1) Substantially all of the Asia Pacific segment equity in income related to 25% interests in NGY and DGT which ceased to be recognized effective October 1, 2015 following the dissolution of the global alliance with SRI. Refer to Note 5. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | (In millions) 2016 2015 Accounts receivable $ 1,870 $ 2,138 Allowance for doubtful accounts (101 ) (105 ) $ 1,769 $ 2,033 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (In millions) 2016 2015 Raw materials $ 436 $ 419 Work in process 131 138 Finished goods 2,060 1,907 $ 2,627 $ 2,464 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reporting Unit | The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2016 : (In millions) Balance at December 31, 2015 Acquisitions Divestitures Translation Balance at December 31, 2016 Americas $ 91 $ — $ — $ — $ 91 Europe, Middle East and Africa 401 — — (18 ) 383 Asia Pacific 63 — — (2 ) 61 $ 555 $ — $ — $ (20 ) $ 535 The following table presents the net carrying amount of goodwill allocated by reporting unit, and changes during 2015 : (In millions) Balance at December 31, 2014 Acquisitions Divestitures Translation Balance at December 31, 2015 Americas $ 93 $ — $ (2 ) $ — $ 91 Europe, Middle East and Africa 448 — (2 ) (45 ) 401 Asia Pacific 60 6 — (3 ) 63 $ 601 $ 6 $ (4 ) $ (48 ) $ 555 |
Indefinite-Lived Intangible Assets | The following table presents information about intangible assets: 2016 2015 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 128 $ (6 ) $ 122 $ 128 $ (6 ) $ 122 Trademarks and patents 13 (9 ) 4 12 (8 ) 4 Other intangible assets 19 (9 ) 10 21 (9 ) 12 $ 160 $ (24 ) $ 136 $ 161 $ (23 ) $ 138 (1) Includes impact of foreign currency translation. |
Finite-Lived Intangible Assets | The following table presents information about intangible assets: 2016 2015 (In millions) Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Gross Carrying Amount (1) Accumulated Amortization (1) Net Carrying Amount Intangible assets with indefinite lives $ 128 $ (6 ) $ 122 $ 128 $ (6 ) $ 122 Trademarks and patents 13 (9 ) 4 12 (8 ) 4 Other intangible assets 19 (9 ) 10 21 (9 ) 12 $ 160 $ (24 ) $ 136 $ 161 $ (23 ) $ 138 (1) Includes impact of foreign currency translation. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2016 2015 (In millions) Owned Capital Leases Total Owned Capital Leases Total Property, plant and equipment, at cost: Land $ 397 $ — $ 397 $ 387 $ — $ 387 Buildings 2,288 35 2,323 2,230 32 2,262 Machinery and equipment 12,232 46 12,278 11,719 68 11,787 Construction in progress 887 — 887 783 — 783 15,804 81 15,885 15,119 100 15,219 Accumulated depreciation (9,102 ) (23 ) (9,125 ) (8,605 ) (32 ) (8,637 ) 6,702 58 6,760 6,514 68 6,582 Spare parts 280 — 280 195 — 195 $ 6,982 $ 58 $ 7,040 $ 6,709 $ 68 $ 6,777 |
Leased Assets Leased Assets (Ta
Leased Assets Leased Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Net Rental Expense | Net rental expense comprised the following: (In millions) 2016 2015 2014 Gross rental expense $ 318 $ 324 $ 387 Sublease rental income (27 ) (33 ) (40 ) $ 291 $ 291 $ 347 |
Minimum Future Lease Payments | The following table presents minimum future lease payments: 2022 and (In millions) 2017 2018 2019 2020 2021 Beyond Total Capital Leases Minimum lease payments $ 11 $ 8 $ 6 $ 4 $ 15 $ 26 $ 70 Imputed interest (3 ) (3 ) (3 ) (3 ) (2 ) (15 ) (29 ) Present value $ 8 $ 5 $ 3 $ 1 $ 13 $ 11 $ 41 Operating Leases Minimum lease payments $ 266 $ 202 $ 154 $ 118 $ 87 $ 267 $ 1,094 Minimum sublease rentals (18 ) (11 ) (7 ) (5 ) (3 ) (27 ) (71 ) $ 248 $ 191 $ 147 $ 113 $ 84 $ 240 $ 1,023 Imputed interest (166 ) Present value $ 857 |
Financing Arrangements and De46
Financing Arrangements and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Notes payable and overdrafts: $ 245 $ 49 Weighted average interest rate 6.18 % 9.42 % Long term debt and capital leases due within one year: Other domestic and foreign debt (including capital leases) $ 436 $ 587 Unamortized deferred financing fees — (2 ) Total long term debt and capital leases due within one year $ 436 $ 585 Weighted average interest rate 9.39 % 6.68 % Total obligations due within one year $ 681 $ 634 |
Schedule of Long-term Debt and Capital Leases, Net of Unamortized Discounts, and Interest Rates | The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates: December 31, 2016 December 31, 2015 Interest Interest (In millions) Amount Rate Amount Rate Notes: 6.75% Euro Notes due 2019 $ — $ 272 8.75% due 2020 273 271 6.5% due 2021 — 900 7% due 2022 700 700 5.125% due 2023 1,000 1,000 3.75% Euro Notes due 2023 264 272 5% due 2026 900 — 7% due 2028 150 150 Credit Facilities: $2.0 billion first lien revolving credit facility due 2021 85 1.98 % — — Second lien term loan facility due 2019 399 3.75 % 598 3.75 % €550 million revolving credit facility due 2020 — — — — Pan-European accounts receivable facility 198 0.98 % 125 1.35 % Chinese credit facilities 315 4.68 % 465 5.22 % Other foreign and domestic debt (1) 951 9.14 % 906 9.42 % Unamortized deferred financing fees (42 ) (48 ) 5,193 5,611 Capital lease obligations 41 48 5,234 5,659 Less portion due within one year (436 ) (585 ) $ 4,798 $ 5,074 (1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and Americas Headquarters. |
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 capital leases for the five years subsequent to December 31, 2016 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) 2017 2018 2019 2020 2021 U.S. $ 6 $ 59 $ 401 $ 283 $ 85 Foreign 675 253 497 61 19 $ 681 $ 312 $ 898 $ 344 $ 104 |
Fair Values for Foreign Currency Contracts not Designated as Hedging Instruments | The following table presents fair values for foreign currency contracts not designated as hedging instruments: December 31, December 31, (In millions) 2016 2015 Fair Values — Current asset (liability): Accounts receivable $ 30 $ 10 Other current liabilities (18 ) (10 ) |
Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedges | The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments: December 31, December 31, (In millions) 2016 2015 Fair Values — Current asset (liability): Accounts receivable $ 9 $ 5 Other current liabilities — (1 ) Fair Values — Long Term asset (liability): Other assets $ 2 $ — |
Classification of Changes in Fair Values of Foreign Currency Contracts Designated as Cash Flow Hedging Instruments | The following table presents the classification of changes in fair values of foreign currency contracts designated as cash flow hedging instruments (before tax and minority): Year Ended December 31, (In millions) (Income) Expense 2016 2015 Amounts deferred to AOCL $ (12 ) $ (20 ) Amount of deferred loss (gain) reclassified from AOCL into CGS (6 ) (28 ) Amounts excluded from effectiveness testing (1 ) 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 2016 2015 2016 2015 Assets: Investments $ 9 $ 7 $ 9 $ 7 $ — $ — $ — $ — Foreign Exchange Contracts 41 15 — — 41 15 — — Total Assets at Fair Value $ 50 $ 22 $ 9 $ 7 $ 41 $ 15 $ — $ — Liabilities: Foreign Exchange Contracts $ 18 $ 11 $ — $ — $ 18 $ 11 $ — $ — Total Liabilities at Fair Value $ 18 $ 11 $ — $ — $ 18 $ 11 $ — $ — |
Supplemental Fair Value Information | The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at December 31: December 31, December 31, (In millions) 2016 2015 Fixed Rate Debt: Carrying amount — liability $ 3,514 $ 3,844 Fair value — liability 3,669 4,018 Variable Rate Debt: Carrying amount — liability $ 1,679 $ 1,767 Fair value — liability 1,678 1,765 |
Pension, Other Postretirement48
Pension, Other Postretirement Benefits and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss | Total benefits cost and amounts recognized in other comprehensive (income) loss follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Benefits cost: Service cost $ 5 $ 4 $ 15 $ 29 $ 43 $ 34 $ 3 $ 3 $ 4 Interest cost 164 238 256 80 113 131 12 15 19 Expected return on plan assets (255 ) (295 ) (311 ) (88 ) (107 ) (118 ) — — (1 ) Amortization of prior service cost (credit) — — 1 — 1 1 (45 ) (45 ) (45 ) Amortization of net losses 109 106 114 27 32 35 5 7 8 Net periodic cost 23 53 75 48 82 83 (25 ) (20 ) (15 ) Curtailments/settlements/termination benefits — 137 32 16 2 (13 ) 2 — — Total benefits cost $ 23 $ 190 $ 107 $ 64 $ 84 $ 70 $ (23 ) $ (20 ) $ (15 ) Recognized in other comprehensive (income) loss before tax and minority: Prior service (credit) cost from plan amendments $ — $ — $ (1 ) $ — $ — $ 1 $ — $ — $ — Increase (decrease) in net actuarial losses 81 150 292 35 (45 ) (78 ) (1 ) (19 ) 3 Amortization of prior service (cost) credit in net periodic cost — — (1 ) — (1 ) (1 ) 45 45 45 Amortization of net losses in net periodic cost (109 ) (106 ) (114 ) (27 ) (34 ) (36 ) (5 ) (7 ) (8 ) Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures — (386 ) (32 ) (17 ) (5 ) (16 ) — 4 — Deconsolidation of Venezuelan subsidiary (Note 1) — — — — (62 ) — — — — Total recognized in other comprehensive loss (income) before tax and minority (28 ) (342 ) 144 (9 ) (147 ) (130 ) 39 23 40 Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority $ (5 ) $ (152 ) $ 251 $ 55 $ (63 ) $ (60 ) $ 16 $ 3 $ 25 |
Changes in Benefit Obligation and Plan Assets | The change in benefit obligation and plan assets for 2016 and 2015 and the amounts recognized in our Consolidated Balance Sheet at December 31, 2016 and 2015 are as follows: Pension Plans U.S. Non-U.S. Other Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Change in benefit obligation: Beginning balance $ (5,338 ) $ (6,507 ) $ (2,808 ) $ (3,178 ) $ (291 ) $ (361 ) Newly adopted plans — — (2 ) (9 ) — — Service cost — benefits earned (5 ) (4 ) (29 ) (43 ) (3 ) (3 ) Interest cost (164 ) (238 ) (80 ) (113 ) (12 ) (15 ) Actuarial gain (loss) (171 ) 262 (384 ) (5 ) — 22 Participant contributions — — (2 ) (2 ) (13 ) (15 ) Curtailments/settlements/termination benefits 1 285 52 19 (2 ) — Divestitures — 500 — — — 6 Deconsolidation of Venezuelan subsidiary (Note 1) — — — 80 — — Foreign currency translation — — 262 303 (10 ) 35 Benefit payments 392 364 128 140 37 40 Ending balance $ (5,285 ) $ (5,338 ) $ (2,863 ) $ (2,808 ) $ (294 ) $ (291 ) Change in plan assets: Beginning balance $ 5,011 $ 6,250 $ 2,493 $ 2,721 $ 3 $ 5 Newly adopted plans — — 1 9 — — Actual return on plan assets 345 (117 ) 393 60 1 — Company contributions to plan assets — — 56 60 2 2 Cash funding of direct participant payments 9 7 24 36 22 23 Participant contributions — — 2 2 13 15 Settlements (1 ) (285 ) (51 ) (18 ) — — Divestitures — (480 ) — — — — Foreign currency translation — — (283 ) (237 ) — (2 ) Benefit payments (392 ) (364 ) (128 ) (140 ) (37 ) (40 ) Ending balance $ 4,972 $ 5,011 $ 2,507 $ 2,493 $ 4 $ 3 Funded status at end of year $ (313 ) $ (327 ) $ (356 ) $ (315 ) $ (290 ) $ (288 ) |
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) 2016 2015 2016 2015 2016 2015 Noncurrent assets $ — $ — $ 231 $ 249 $ — $ — Current liabilities (12 ) (12 ) (19 ) (19 ) (21 ) (23 ) Noncurrent liabilities (301 ) (315 ) (568 ) (545 ) (269 ) (265 ) Net amount recognized $ (313 ) $ (327 ) $ (356 ) $ (315 ) $ (290 ) $ (288 ) |
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) 2016 2015 2016 2015 2016 2015 Prior service (credit) cost $ (4 ) $ (4 ) $ 1 $ 2 $ (59 ) $ (104 ) Net actuarial loss 2,615 2,643 685 693 68 74 Gross amount recognized 2,611 2,639 686 695 9 (30 ) Deferred income taxes (118 ) (128 ) (115 ) (96 ) (20 ) (9 ) Net amount recognized $ 2,493 $ 2,511 $ 571 $ 599 $ (11 ) $ (39 ) |
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 2016 2015 2016 2015 Discount rate: — U.S. 3.99 % 4.20 % 3.72 % 3.86 % — Non-U.S. 2.72 3.47 5.12 5.30 Rate of compensation increase: — U.S. N/A N/A N/A N/A — Non-U.S. 3.18 2.63 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 2016 2015 2014 2016 2015 2014 Discount rate for determining interest cost: — U.S. 3.23 3.89 4.40 2.98 3.59 4.06 — Non-U.S. 3.37 3.31 4.36 6.31 4.89 6.62 Expected long term return on plan assets: — U.S. 5.33 5.00 5.47 N/A N/A N/A — Non-U.S. 3.81 4.12 5.12 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. 2.63 2.88 3.11 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, 2016 . Benefit payments for other postretirement benefits are presented net of retiree contributions: Pension Plans Other Postretirement Benefits (In millions) U.S. Non-U.S. Without Medicare Part D Subsidy Medicare Part D Subsidy Receipts 2017 $ 431 $ 124 $ 23 $ 1 2018 415 125 23 1 2019 396 129 22 1 2020 387 132 22 1 2021 382 133 21 1 2022-2026 1,765 733 103 5 |
Selected Pension Plan Information | The following table presents selected information on our pension plans: U.S. Non-U.S. (In millions) 2016 2015 2016 2015 All plans: Accumulated benefit obligation $ 5,275 $ 5,329 $ 2,792 $ 2,722 Plans not fully-funded: Projected benefit obligation $ 5,282 $ 5,336 $ 911 $ 876 Accumulated benefit obligation 5,273 5,327 862 811 Fair value of plan assets 4,970 5,009 327 316 |
Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31 follow: 2016 2015 Health care cost trend rate assumed for the next year 6.5 % 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 2022 |
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, 2016 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 $ 19 $ (16 ) 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. 2016 2015 2016 2015 Cash and short term securities 3 % 5 % 1 % 1 % Equity securities 6 6 9 9 Debt securities 91 89 78 77 Alternatives — — 12 13 Total 100 % 100 % 100 % 100 % |
Fair Values of Pension Plan Assets | The fair values of our pension plan assets at December 31, 2016 , 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 $ 62 $ 58 $ 4 $ — $ 24 $ 23 $ 1 $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 20 20 — — Commingled Funds — — — — 134 16 — 118 Mutual Funds — — — — 3 3 — — Debt Securities Corporate Bonds 2,707 — 2,707 — 154 13 141 — Government Bonds 968 — 968 — 2,148 68 2,080 — Repurchase Agreements — — — — (777 ) — (777 ) — Asset Backed Securities 63 — 63 — 30 2 28 — Commingled Funds — — — — 9 — 9 — Mutual Funds — — — — 5 5 — — Alternatives Real Estate — — — — 62 — 1 61 Insurance Contracts 2 — — 2 14 — — 14 Other Investments 1 — 1 — 10 2 5 3 Total Investments in the Fair Value Hierarchy 3,803 $ 58 $ 3,743 $ 2 1,836 $ 152 $ 1,488 $ 196 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 38 59 Mutual Funds — 21 Partnership Interests 263 — Debt Securities Mutual funds 123 5 Commingled Funds 697 471 Short Term Securities Commingled Funds 87 2 Alternatives Commingled Funds — 154 Real Estate — 59 Total Investments 5,011 2,607 Other (39 ) (100 ) Total Plan Assets $ 4,972 $ 2,507 The fair values of our pension plan assets at December 31, 2015 , by asset category are as follows: U.S. Non-U.S. (In millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Cash and Short Term Securities $ 103 $ 100 $ 3 $ — $ 28 $ 28 $ — $ — Equity Securities Common and Preferred Stock: Non-U.S. Companies — — — — 19 19 — — Commingled Funds — — — — 17 17 — — Mutual Funds — — — — 3 3 — — Debt Securities Corporate Bonds 2,413 — 2,413 — 154 14 140 — Government Bonds 1,091 — 1,091 — 2,093 67 2,026 — Repurchase Agreements — — — — (719 ) — (719 ) — Asset Backed Securities 158 — 158 — 11 2 2 7 Commingled Funds — — — — 9 — 9 — Mutual Funds — — — — 3 3 — — Alternatives Real Estate — — — — 72 — — 72 Insurance Contracts 2 — — 2 56 — — 56 Other Investments (2 ) — (2 ) — 9 1 6 2 Total Investments in the Fair Value Hierarchy 3,765 $ 100 $ 3,663 $ 2 1,755 $ 154 $ 1,464 $ 137 Investments Measured at Net Asset Value, as Practical Expedient: Equity Securities Commingled Funds 6 121 Mutual Funds — 57 Partnership Interests 295 — Debt Securities Mutual funds 86 5 Commingled Funds 714 431 Short Term Securities Commingled Funds 137 2 Alternatives Commingled Funds — 127 Real Estate — 69 Total Investments 5,003 2,567 Other 8 (74 ) Total Plan Assets $ 5,011 $ 2,493 |
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, 2016 : Non-U.S. (In millions) Insurance Contracts Real Estate Equity Securities - Commingled Funds Other Balance, beginning of year $ 56 $ 72 $ — $ 9 Realized gains (losses) 3 1 — — Purchases, sales, issuances and settlements (net) (42 ) — 132 — Transfers from Level 3 — — — (7 ) Foreign currency translation (3 ) (12 ) (14 ) 1 Balance, end of year $ 14 $ 61 $ 118 $ 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, 2015 : Non-U.S. (In millions) Insurance Contracts Real Estate Other Balance, beginning of year $ 18 $ 67 $ 4 Unrealized (losses) gains relating to instruments still held at the reporting date — 8 — Purchases, sales, issuances and settlements (net) 41 — 7 Foreign currency translation (3 ) (3 ) (2 ) Balance, end of year $ 56 $ 72 $ 9 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Summary of Stock Option Activity | The following table summarizes the activity related to options during 2016 : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at January 1 7,782,696 $ 17.15 Options granted 730,349 29.90 Options exercised (1,057,887 ) 17.34 $ 14 Options expired (15,488 ) 14.07 Options cancelled (266,622 ) 22.86 Outstanding at December 31 7,173,048 18.21 5.3 91 Vested and expected to vest at December 31 6,966,579 18.00 5.2 91 Exercisable at December 31 5,296,056 15.70 4.3 81 Available for grant at December 31 7,512,420 |
Significant Options Groups Outstanding | Significant option groups outstanding at December 31, 2016 and related weighted average exercise price and remaining contractual term information follows: Grant Date Options Outstanding Options Exercisable Exercise Price Remaining Contractual Term (Years) 2/22/2016 676,514 5,499 29.90 9.2 2/23/2015 611,700 160,854 27.16 8.2 2/24/2014 424,674 214,199 26.44 7.2 2/28/2013 1,280,205 937,835 12.98 6.2 2/27/2012 942,736 942,736 12.94 5.2 2/22/2011 669,305 669,305 13.91 4.2 2/23/2010 494,470 494,470 12.74 3.2 2/26/2009 438,434 438,434 4.81 2.2 2/21/2008 400,560 400,560 26.74 1.1 2/27/2007 253,706 253,706 24.71 0.2 All other 980,744 778,458 (1 ) (1 ) 7,173,048 5,296,056 (1) Options in the “All other” category had exercise prices ranging from $6.22 to $36.25 . The weighted average exercise price for options outstanding and exercisable in that category was $19.43 and $17.82 , respectively, while the remaining weighted average contractual term was 5.3 and 4.6 , 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: 2016 2015 2014 Weighted average grant date fair value $ 11.92 $ 11.51 $ 11.48 Black-Scholes model assumptions (1) : Expected term (years) 7.20 7.30 7.40 Interest rate 1.45 % 1.83 % 2.10 % Volatility 40.78 % 42.00 % 43.45 % Dividend yield 0.94 % 0.88 % 0.81 % (1) We review the assumptions used in our Black-Scholes model in conjunction with estimating the grant date fair value of the annual grants of options by our Board of Directors. |
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) 2016 2015 2014 Stock-based compensation expense recognized $ 23 $ 19 $ 20 Tax benefit (8 ) (7 ) (7 ) After-tax stock-based compensation expense $ 15 $ 12 $ 13 Cash payments to settle SARs $ 1 $ 2 $ 2 Cash received from stock option exercises $ 17 $ 53 $ 39 |
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 2016 : Units Weighted Average Grant Date Fair Value Unvested at January 1 318,270 $ 28.64 Units granted 194,108 30.95 Units vested (104,614 ) 29.00 Units forfeited (38,461 ) 29.38 Unvested at December 31 369,303 29.68 |
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 2016 : Units Weighted Average Grant Date Fair Value Unvested at January 1 673,093 $ 26.16 Units granted 320,283 29.99 Units vested and settled (134,944 ) 22.23 Units forfeited (31,973 ) 28.73 Unvested at December 31 826,459 28.14 |
Commitments and Contingent Li50
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Pending claims, beginning of year 67,400 73,800 74,000 New claims filed during the year 1,900 1,900 1,900 Claims settled/dismissed during the year (4,900 ) (8,300 ) (2,100 ) Pending claims, end of year 64,400 67,400 73,800 Payments (1) $ 20 $ 19 $ 20 (1) Represents amount spent 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 2016 and 2015 : (in millions) 2016 2015 Balance at January 1 $ 17 $ 22 Payments made during the period (29 ) (37 ) Expense recorded during the period 31 33 Translation adjustment — (1 ) Balance at December 31 $ 19 $ 17 |
Reclassifications out of Accu51
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reclassifications out of Accumulated Other Comprehensive Loss [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following table presents changes in Accumulated Other Comprehensive Loss (AOCL) by component, for the year ended December 31, 2016 , 2015 and 2014: (In millions) Foreign Currency Translation Adjustment Unrecognized Net Actuarial Losses and Prior Service Costs Deferred Derivative Gains (Losses) Unrealized Investment Gains Total Balance at December 31, 2013 $ (690 ) $ (3,278 ) $ (1 ) $ 34 $ (3,935 ) Other comprehensive income (loss) before reclassifications (206 ) (112 ) 13 2 (303 ) Amounts reclassified from accumulated other comprehensive loss 3 105 — — 108 Purchase of subsidiary shares from minority interest (1 ) — — — (1 ) Balance at December 31, 2014 $ (894 ) $ (3,285 ) $ 12 $ 36 $ (4,131 ) Other comprehensive income (loss) before reclassifications (251 ) (68 ) 15 (4 ) (308 ) Amounts reclassified from accumulated other comprehensive loss 16 325 (21 ) (32 ) 288 Purchase of subsidiary shares from minority interest (3 ) (105 ) 1 — (107 ) Deconsolidation of Venezuelan subsidiary (Note 1) 186 62 — — 248 Balance at December 31, 2015 $ (946 ) $ (3,071 ) $ 7 $ — $ (4,010 ) Other comprehensive income (loss) before reclassifications (209 ) (62 ) 8 — (263 ) Amounts reclassified from accumulated other comprehensive loss — 80 (5 ) — 75 Balance at December 31, 2016 $ (1,155 ) $ (3,053 ) $ 10 $ — $ (4,198 ) |
Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of AOCL for the year ended December 31, 2016 , 2015 and 2014: Year Ended December 31, (In millions) 2016 2015 2014 Component of AOCL Amount Reclassified from AOCL Affected Line Item in the Consolidated Statements of Operations Foreign Currency Translation Adjustment, before tax $ — $ 16 $ 3 Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) — 186 — Loss on Deconsolidation of Venezuelan Subsidiary Tax effect — — — United States and Foreign Taxes Minority interest — — — Minority Shareholders' Net Income Net of tax $ — $ 202 $ 3 Goodyear Net Income Amortization of prior service cost and unrecognized gains and losses $ 96 $ 103 $ 115 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments and settlements 17 142 48 Total Benefit Cost Immediate recognition of prior service cost and unrecognized gains and losses due to divestitures — 184 — Other (Income) Expense Deconsolidation of Venezuelan subsidiary (Note 1) — 62 — Loss on Deconsolidation of Venezuelan Subsidiary Unrecognized Net Actuarial Losses and Prior Service Costs, before tax $ 113 $ 491 $ 163 Tax effect (33 ) (101 ) (49 ) United States and Foreign Taxes Minority interest — (3 ) (9 ) Minority Shareholders' Net Income Net of tax $ 80 $ 387 $ 105 Goodyear Net Income Deferred Derivative Gains, before tax $ (6 ) $ (28 ) $ — Cost of Goods Sold Tax effect 1 3 1 United States and Foreign Taxes Minority interest — 4 (1 ) Minority Shareholders' Net Income Net of tax $ (5 ) $ (21 ) $ — Goodyear Net Income Unrealized Investment Gains, before tax $ — $ (30 ) $ — Other (Income) Expense Tax effect — (2 ) — United States and Foreign Taxes Minority interest — — — Minority Shareholders' Net Income Net of tax $ — $ (32 ) $ — Goodyear Net Income Total reclassifications $ 75 $ 536 $ 108 Goodyear Net Income |
Consolidating Financial Infor52
Consolidating Financial Information Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2016 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 185 $ 58 $ 889 $ — $ 1,132 Accounts Receivable 562 133 1,074 — 1,769 Accounts Receivable From Affiliates — 436 270 (706 ) — Inventories 1,336 142 1,178 (29 ) 2,627 Prepaid Expenses and Other Current Assets 57 3 130 — 190 Total Current Assets 2,140 772 3,541 (735 ) 5,718 Goodwill — 24 391 120 535 Intangible Assets 118 — 18 — 136 Deferred Income Taxes 2,010 31 373 — 2,414 Other Assets 222 54 387 5 668 Investments in Subsidiaries 4,646 541 — (5,187 ) — Property, Plant and Equipment 2,454 335 4,279 (28 ) 7,040 Total Assets $ 11,590 $ 1,757 $ 8,989 $ (5,825 ) $ 16,511 Liabilities: Current Liabilities: Accounts Payable-Trade $ 887 $ 160 $ 1,542 $ — $ 2,589 Accounts Payable to Affiliates 706 — — (706 ) — Compensation and Benefits 353 27 204 — 584 Other Current Liabilities 346 9 611 (3 ) 963 Notes Payable and Overdrafts — — 245 — 245 Long Term Debt and Capital Leases Due Within One Year 6 — 430 — 436 Total Current Liabilities 2,298 196 3,032 (709 ) 4,817 Long Term Debt and Capital Leases 3,685 — 1,113 — 4,798 Compensation and Benefits 676 104 680 — 1,460 Deferred Income Taxes — 1 84 — 85 Other Long Term Liabilities 424 13 188 1 626 Total Liabilities 7,083 314 5,097 (708 ) 11,786 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 252 — — — 252 Other Equity 4,255 1,443 3,674 (5,117 ) 4,255 Goodyear Shareholders’ Equity 4,507 1,443 3,674 (5,117 ) 4,507 Minority Shareholders’ Equity — Nonredeemable — — 218 — 218 Total Shareholders’ Equity 4,507 1,443 3,892 (5,117 ) 4,725 Total Liabilities and Shareholders’ Equity $ 11,590 $ 1,757 $ 8,989 $ (5,825 ) $ 16,511 Condensed Consolidating Balance Sheet December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 354 $ 70 $ 1,052 $ — $ 1,476 Accounts Receivable 814 136 1,083 — 2,033 Accounts Receivable From Affiliates — 609 — (609 ) — Inventories 1,199 157 1,152 (44 ) 2,464 Prepaid Expenses and Other Current Assets 42 3 105 3 153 Total Current Assets 2,409 975 3,392 (650 ) 6,126 Goodwill — 24 407 124 555 Intangible Assets 118 — 20 — 138 Deferred Income Taxes 2,049 19 73 — 2,141 Other Assets 216 81 350 7 654 Investments in Subsidiaries 4,088 383 — (4,471 ) — Property, Plant and Equipment 2,377 216 4,213 (29 ) 6,777 Total Assets $ 11,257 $ 1,698 $ 8,455 $ (5,019 ) $ 16,391 Liabilities: Current Liabilities: Accounts Payable-Trade $ 1,002 $ 189 $ 1,578 $ — $ 2,769 Accounts Payable to Affiliates 540 — 69 (609 ) — Compensation and Benefits 411 29 226 — 666 Other Current Liabilities 328 16 547 (5 ) 886 Notes Payable and Overdrafts — — 49 — 49 Long Term Debt and Capital Leases Due Within One Year 6 — 579 — 585 Total Current Liabilities 2,287 234 3,048 (614 ) 4,955 Long Term Debt and Capital Leases 3,796 — 1,278 — 5,074 Compensation and Benefits 725 97 646 — 1,468 Deferred Income Taxes — 1 92 (2 ) 91 Other Long Term Liabilities 529 15 119 (2 ) 661 Total Liabilities 7,337 347 5,183 (618 ) 12,249 Commitments and Contingent Liabilities Shareholders’ Equity: Goodyear Shareholders’ Equity: Common Stock 267 — — — 267 Other Equity 3,653 1,351 3,050 (4,401 ) 3,653 Goodyear Shareholders’ Equity 3,920 1,351 3,050 (4,401 ) 3,920 Minority Shareholders’ Equity — Nonredeemable — — 222 — 222 Total Shareholders’ Equity 3,920 1,351 3,272 (4,401 ) 4,142 Total Liabilities and Shareholders’ Equity $ 11,257 $ 1,698 $ 8,455 $ (5,019 ) $ 16,391 |
Consolidating Statement of Operations | Consolidating Statements of Operations Year Ended December 31, 2016 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 6,982 $ 1,774 $ 9,121 $ (2,719 ) $ 15,158 Cost of Goods Sold 5,147 1,632 6,971 (2,778 ) 10,972 Selling, Administrative and General Expense 955 151 1,302 (1 ) 2,407 Rationalizations 20 — 190 — 210 Interest Expense 276 12 129 (45 ) 372 Other (Income) Expense (45 ) — (52 ) 87 (10 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 629 (21 ) 581 18 1,207 United States and Foreign Tax (Benefit) Expense 104 (7 ) (180 ) 6 (77 ) Equity in Earnings (Loss) of Subsidiaries 739 122 — (861 ) — Net Income (Loss) 1,264 108 761 (849 ) 1,284 Less: Minority Shareholders’ Net Income — — 20 — 20 Goodyear Net Income (Loss) $ 1,264 $ 108 $ 741 $ (849 ) $ 1,264 Comprehensive Income (Loss) $ 1,076 $ 38 $ 585 $ (615 ) $ 1,084 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 8 — 8 Goodyear Comprehensive Income (Loss) $ 1,076 $ 38 $ 577 $ (615 ) $ 1,076 Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,566 $ 2,129 $ 10,308 $ (3,560 ) $ 16,443 Cost of Goods Sold 5,804 1,915 8,090 (3,645 ) 12,164 Selling, Administrative and General Expense 1,053 172 1,392 (3 ) 2,614 Rationalizations 13 — 101 — 114 Interest Expense 339 22 135 (58 ) 438 Loss on Deconsolidation of Venezuelan Subsidiary 374 — 272 — 646 Other (Income) Expense (455 ) (13 ) 173 154 (141 ) Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 438 33 145 (8 ) 608 United States and Foreign Tax (Benefit) Expense 104 10 112 6 232 Equity in Earnings (Loss) of Subsidiaries (27 ) 19 — 8 — Net Income (Loss) 307 42 33 (6 ) 376 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 307 42 (36 ) (6 ) 307 Comprehensive Income (Loss) $ 535 $ 54 $ 46 $ (94 ) $ 541 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 32 (26 ) 6 Goodyear Comprehensive Income (Loss) $ 535 $ 54 $ 14 $ (68 ) $ 535 Consolidating Statements of Operations Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Net Sales $ 7,915 $ 2,487 $ 12,051 $ (4,315 ) $ 18,138 Cost of Goods Sold 6,457 2,237 9,622 (4,410 ) 13,906 Selling, Administrative and General Expense 916 166 1,645 (7 ) 2,720 Rationalizations (6 ) — 101 — 95 Interest Expense 342 26 139 (63 ) 444 Other (Income) Expense (101 ) (11 ) 222 176 286 Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries 307 69 322 (11 ) 687 United States and Foreign Tax (Benefit) Expense (2,026 ) 14 174 4 (1,834 ) Equity in Earnings (Loss) of Subsidiaries 119 28 — (147 ) — Net Income (Loss) 2,452 83 148 (162 ) 2,521 Less: Minority Shareholders’ Net Income — — 69 — 69 Goodyear Net Income (Loss) 2,452 83 79 (162 ) 2,452 Less: Preferred Stock Dividends 7 — — — 7 Goodyear Net Income (Loss) available to Common Shareholders $ 2,445 $ 83 $ 79 $ (162 ) $ 2,445 Comprehensive Income (Loss) $ 2,257 $ 89 $ (11 ) $ (58 ) $ 2,277 Less: Comprehensive Income (Loss) Attributable to Minority Shareholders — — 46 (26 ) 20 Goodyear Comprehensive Income (Loss) $ 2,257 $ 89 $ (57 ) $ (32 ) $ 2,257 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 (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 $ 598 $ 103 $ 875 $ (72 ) $ 1,504 Cash Flows from Investing Activities: Capital Expenditures (361 ) (116 ) (525 ) 6 (996 ) Asset Dispositions 11 — 24 — 35 Decrease (Increase) in Restricted Cash — — 6 — 6 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 60 — 60 Capital Contributions Received and Loans Incurred (257 ) — (576 ) 833 — Capital Redemptions and Loans Paid 163 — 148 (311 ) — Other Transactions — — (6 ) — (6 ) Total Cash Flows from Investing Activities (444 ) (116 ) (941 ) 528 (973 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred — 41 417 (41 ) 417 Short Term Debt and Overdrafts Paid (41 ) — (228 ) 41 (228 ) Long Term Debt Incurred 2,896 — 2,092 — 4,988 Long Term Debt Paid (3,016 ) — (2,417 ) — (5,433 ) Common Stock Issued 13 — — — 13 Common Stock Repurchased (500 ) — — — (500 ) Common Stock Dividends Paid (82 ) — — — (82 ) Capital Contributions Received and Loans Incurred 576 59 198 (833 ) — Capital Redemptions and Loans Paid (148 ) (80 ) (83 ) 311 — Intercompany Dividends Paid — (19 ) (47 ) 66 — Transactions with Minority Interests in Subsidiaries — — (11 ) — (11 ) Debt Related Costs and Other Transactions (21 ) — (3 ) — (24 ) Total Cash Flows from Financing Activities (323 ) 1 (82 ) (456 ) (860 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (15 ) — (15 ) Net Change in Cash and Cash Equivalents (169 ) (12 ) (163 ) — (344 ) Cash and Cash Equivalents at Beginning of the Year 354 70 1,052 — 1,476 Cash and Cash Equivalents at End of the Year $ 185 $ 58 $ 889 $ — $ 1,132 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ 979 $ 149 $ 612 $ (53 ) $ 1,687 Cash Flows from Investing Activities: Capital Expenditures (315 ) (119 ) (558 ) 9 (983 ) Asset Dispositions 48 — 14 — 62 Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary — — (320 ) — (320 ) Decrease (Increase) in Restricted Cash — — (6 ) — (6 ) Short Term Securities Acquired — — (77 ) — (77 ) Short Term Securities Redeemed — — 69 — 69 Capital Contributions Received and Loans Incurred (70 ) — (90 ) 160 — Capital Redemptions and Loans Paid 122 — 125 (247 ) — Other Transactions — — (7 ) — (7 ) Total Cash Flows from Investing Activities (215 ) (119 ) (850 ) (78 ) (1,262 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 55 — 118 (70 ) 103 Short Term Debt and Overdrafts Paid (15 ) (16 ) (123 ) 70 (84 ) Long Term Debt Incurred 1,736 — 1,083 — 2,819 Long Term Debt Paid (2,341 ) — (974 ) — (3,315 ) Common Stock Issued 53 — — — 53 Common Stock Repurchased (180 ) — — — (180 ) Common Stock Dividends Paid (68 ) — — — (68 ) Capital Contributions Received and Loans Incurred 90 12 58 (160 ) — Capital Redemptions and Loans Paid (125 ) (15 ) (107 ) 247 — Intercompany Dividends Paid — (17 ) (27 ) 44 — Transactions with Minority Interests in Subsidiaries — — (9 ) — (9 ) Debt Related Costs and Other Transactions (18 ) — (15 ) — (33 ) Dissolution of Global Alliance (271 ) — — — (271 ) Total Cash Flows from Financing Activities (1,084 ) (36 ) 4 131 (985 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (13 ) (112 ) — (125 ) Net Change in Cash and Cash Equivalents (320 ) (19 ) (346 ) — (685 ) Cash and Cash Equivalents at Beginning of the Year 674 89 1,398 — 2,161 Cash and Cash Equivalents at End of the Year $ 354 $ 70 $ 1,052 $ — $ 1,476 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Entries and Eliminations Consolidated Cash Flows from Operating Activities: Total Cash Flows from Operating Activities $ (334 ) $ 195 $ 758 $ (279 ) $ 340 Cash Flows from Investing Activities: Capital Expenditures (303 ) (19 ) (607 ) 6 (923 ) Asset Dispositions 9 2 7 — 18 Decrease (Increase) in Restricted Cash (1 ) — 6 — 5 Short Term Securities Acquired — — (72 ) — (72 ) Short Term Securities Redeemed — — 95 — 95 Capital Contributions Received and Loans Incurred (382 ) — (457 ) 839 — Capital Redemptions and Loans Paid 459 — 244 (703 ) — Other Transactions 13 — 13 — 26 Total Cash Flows from Investing Activities (205 ) (17 ) (771 ) 142 (851 ) Cash Flows from Financing Activities: Short Term Debt and Overdrafts Incurred 22 — 60 (36 ) 46 Short Term Debt and Overdrafts Paid (14 ) (22 ) (24 ) 36 (24 ) Long Term Debt Incurred 601 — 1,241 — 1,842 Long Term Debt Paid (608 ) — (947 ) — (1,555 ) Common Stock Issued 39 — — — 39 Common Stock Repurchased (234 ) — — — (234 ) Common Stock Dividends Paid (60 ) — — — (60 ) Preferred Stock Dividends Paid (15 ) — — — (15 ) Capital Contributions Received and Loans Incurred 457 47 335 (839 ) — Capital Redemptions and Loans Paid (244 ) — (459 ) 703 — Intercompany Dividends Paid — (203 ) (70 ) 273 — Transactions with Minority Interests in Subsidiaries — — (49 ) — (49 ) Debt Related Costs and Other Transactions — — (1 ) — (1 ) Total Cash Flows from Financing Activities (56 ) (178 ) 86 137 (11 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — (5 ) (308 ) — (313 ) Net Change in Cash and Cash Equivalents (595 ) (5 ) (235 ) — (835 ) Cash and Cash Equivalents at Beginning of the Year 1,269 94 1,633 — 2,996 Cash and Cash Equivalents at End of the Year $ 674 $ 89 $ 1,398 $ — $ 2,161 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Recognition of tax benefit | $ 5 | ||||
Unamortized deferred financing fees | $ 48 | 42 | $ 48 | ||
Loss on deconsolidation of Venezuelan subsidiary | 646 | 0 | 646 | $ 0 | |
Derecognition of the carrying amounts of assets and liabilities included in deconsolidation charge | 320 | 0 | 320 | 0 | |
Deconsolidation charge, losses previously reclassified from Accumulated Other Comprehensive Loss | 248 | 0 | 248 | 0 | |
Research and development expenditures | 388 | 382 | 399 | ||
Advertising costs | 355 | 385 | 430 | ||
Maximum cash investments with single counterparty | 229 | ||||
Capital lease obligations | 3 | 3 | 12 | ||
Accrued capital expenditures remaining unpaid | 240 | 254 | |||
Payments for capital expenditures accrued and unpaid in prior year | 254 | 212 | |||
Restricted net assets | 735 | ||||
Depreciation expense for property, plant and equipment | 726 | 697 | 730 | ||
Cost of goods sold | $ 10,972 | 12,164 | 13,906 | ||
Scenario, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of goods sold | $ 24 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | 56 | 56 | |||
Adjustments for New Accounting Pronouncement | Other (Income) Expense | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortization of financing fees | (26) | (16) | |||
Adjustments for New Accounting Pronouncement | Interest Expense | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amortization of financing fees | 26 | $ 16 | |||
Adjustments for New Accounting Pronouncement | Prepaid Expenses and Other Current Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Unamortized deferred financing fees | (15) | (15) | |||
Adjustments for New Accounting Pronouncement | Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Unamortized deferred financing fees | (33) | (33) | |||
Adjustments for New Accounting Pronouncement | Long Term Debt and Capital Leases Due Within One Year | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Unamortized deferred financing fees | 2 | 2 | |||
Adjustments for New Accounting Pronouncement | Long Term Debt and Capital Leases | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Unamortized deferred financing fees | 46 | 46 | |||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Updated 2016-09 | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ 56 | $ 56 |
Costs Associated with Rationa54
Costs Associated with Rationalization Programs - Roll-Forward of Liability Balance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve | |||
Beginning Balance | $ 103 | $ 119 | $ 237 |
New Charges | 218 | 116 | 128 |
Incurred, Net of Foreign Currency Translation | (93) | (131) | (235) |
Reversed to the Statement of Operations | (9) | (1) | (11) |
Ending Balance | 219 | 103 | 119 |
Payments for legal settlements | 25 | 20 | |
Associate-related Costs | |||
Restructuring Reserve | |||
Beginning Balance | 96 | 117 | 232 |
New Charges | 202 | 86 | 76 |
Incurred, Net of Foreign Currency Translation | (75) | (106) | (186) |
Reversed to the Statement of Operations | (9) | (1) | (5) |
Ending Balance | 214 | 96 | 117 |
Foreign currency translation | (13) | (12) | (18) |
Other Costs | |||
Restructuring Reserve | |||
Beginning Balance | 7 | 2 | 5 |
New Charges | 16 | 30 | 52 |
Incurred, Net of Foreign Currency Translation | (18) | (25) | (49) |
Reversed to the Statement of Operations | 0 | 0 | (6) |
Ending Balance | 5 | 7 | 2 |
Foreign currency translation | $ 0 | $ 0 | $ 0 |
Costs Associated with Rationa55
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 210 | $ 114 | $ 95 |
Asset Write-off and Accelerated Depreciation Charges | 20 | 8 | 7 |
Current Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 189 | 73 | 23 |
Current Year Plans | Associate Severance and Other Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 188 | 66 | 22 |
Current Year Plans | Other Exit and Non-Cancelable Lease Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 1 | 7 | 1 |
Prior Year Plans | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 21 | 41 | 72 |
Prior Year Plans | Associate Severance and Other Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 5 | 19 | 49 |
Prior Year Plans | Benefit Plan Curtailment / Settlement Loss (Gain) | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | 1 | (1) | (22) |
Prior Year Plans | Other Exit and Non-Cancelable Lease Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Rationalizations | $ 15 | $ 23 | $ 45 |
Costs Associated with Rationa56
Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($)employee | Dec. 31, 2016USD ($)claimemployee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 219 | $ 219 | $ 103 | $ 119 | $ 237 |
Expected number of position to be released (in employees) | employee | 1,600 | ||||
Rationalizations | $ 210 | 114 | 95 | ||
Rationalization reversals | 9 | 1 | 11 | ||
Rationalization charges to date | 595 | 595 | |||
Future rationalization charges expected | 80 | 80 | |||
Asset write-off and accelerated depreciation charges | 20 | 8 | 7 | ||
Reduce SAG Headcount | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 32 | 32 | |||
Europe, Middle East and Africa Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 22 | 22 | |||
Wolverhampton Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 16 | 16 | |||
Amiens Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 13 | 13 | |||
Rationalizations | 33 | ||||
Philippsburg Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 110 | $ 110 | |||
Expected number of position to be released (in employees) | employee | 890 | ||||
Current Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected number of position to be released (in employees) | employee | 1,700 | ||||
Rationalizations | $ 189 | 73 | 23 | ||
Number of associates released (in employees) | employee | 200 | ||||
Current Year Plans | Reduce SAG Headcount | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 34 | ||||
Current Year Plans | Europe, Middle East and Africa Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 25 | ||||
Current Year Plans | Philippsburg Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 116 | ||||
Prior Year Plans | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 21 | 41 | 72 | ||
Number of associates released (in employees) | employee | 600 | ||||
Prior Year Plans | Wolverhampton Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 38 | ||||
Prior Year Plans | Amiens Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 12 | ||||
Prior Year Plans | Associate Severance and Idle Plant Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | 74 | ||||
Prior Year Plans | Pension Curtailment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Rationalizations | $ 22 | ||||
Amiens Labor Claims | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Loss contingency, number of plaintiffs | claim | 840 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Expense [Abstract] | |||
Interest expense before capitalization | $ 398 | $ 457 | $ 468 |
Capitalized interest | (26) | (19) | (24) |
Interest expense | $ 372 | $ 438 | $ 444 |
Interest Expense - Narrative (D
Interest Expense - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Interest paid, net | $ 351 | $ 445 | $ 419 |
Other (Income) Expense | Adjustments for New Accounting Pronouncement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization of financing fees | (26) | (16) | |
Interest Expense | Adjustments for New Accounting Pronouncement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortization of financing fees | $ 26 | $ 16 |
Other (Income) Expense (Details
Other (Income) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Financing fees and financial instruments | $ 83 | $ 85 | $ 61 |
Net gains on asset sales | (31) | (71) | (3) |
General and product liability (income) expense - discontinued products | (27) | (25) | 25 |
Royalty income | (23) | (192) | (35) |
Interest income | (15) | (22) | (28) |
Net foreign currency exchange (gains) losses | (13) | 77 | 239 |
Miscellaneous | 16 | 7 | 27 |
Other (income) expense | $ (10) | $ (141) | $ 286 |
Other (Income) Expense - Narrat
Other (Income) Expense - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Expense [Line Items] | ||||
Net gains (losses) on asset sales | $ 31 | $ 71 | $ 3 | |
Insurance recoveries | 24 | 25 | ||
Benefit from change in probably insurance recovery assumptions | 10 | 21 | ||
Loss from change in defense and indemnity cost assumptions | 8 | |||
Gain on recognition of deferred income | 0 | 155 | 0 | |
Interest income | 15 | 22 | 28 | |
Net foreign currency exchange losses | (13) | 77 | 239 | |
Loss from devaluation of Venezuelan bolivar fuerte | 0 | 0 | 200 | |
Americas | ||||
Other Expense [Line Items] | ||||
Interest income | 10 | |||
Government Investigation | ||||
Other Expense [Line Items] | ||||
Miscellaneous expense | $ 16 | |||
Senior Notes | ||||
Other Expense [Line Items] | ||||
Redemption premium | 53 | 41 | ||
SRI | ||||
Other Expense [Line Items] | ||||
Net gains (losses) on asset sales | 48 | |||
Other (Income) Expense | SRI | ||||
Other Expense [Line Items] | ||||
Gain on sale of common stock | $ 30 | 30 | ||
Certain Sub-Saharan Retail Businesses | ||||
Other Expense [Line Items] | ||||
Net gains (losses) on asset sales | (14) | |||
Venezuelan Bolívar Fuerte | ||||
Other Expense [Line Items] | ||||
Net foreign currency exchange losses | $ 34 | |||
Wire Plant Site | ||||
Other Expense [Line Items] | ||||
Gain on sale of property, plant and equipment | 16 | |||
Discontinued Operations, Disposed of by Sale | Supply Chain Logistics Company | ||||
Other Expense [Line Items] | ||||
Gain on disposition of business | $ 9 |
Dissolution of Global Allianc61
Dissolution of Global Alliance With Sumitomo Rubber Industries Dissolution of Global Alliance With Sumitomo Rubber Industries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Pre-tax gain on asset sales | $ 31 | $ 71 | $ 3 |
SRI | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Pre-tax gain on sale of a controlling interest in GDTNA | 23 | ||
Pre-tax gain on sale of a non-controlling investment in DGT | 42 | ||
Pre-tax gain on sale of non-exclusive rights | 19 | ||
Transaction costs and other | (8) | ||
Net product liability claims | (28) | ||
Pre-tax gain on asset sales | $ 48 |
Dissolution of Global Allianc62
Dissolution of Global Alliance With Sumitomo Rubber Industries - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of subsidiary | $ 125 | ||||
Proceeds from sale of equity method investment | 14 | ||||
Proceeds from sale of test track | 6 | ||||
Pre-tax gain on asset sales | $ 31 | $ 71 | $ 3 | ||
Indemnification asset | $ 32 | 35 | |||
Increase (decrease) in accumulated other comprehensive loss | (63) | (69) | $ (79) | ||
NGY | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership interest acquired | 75.00% | ||||
Consideration transferred | $ 29 | ||||
GDTE | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership interest acquired | 25.00% | ||||
Consideration transferred | $ 387 | ||||
Increase (decrease) in accumulated other comprehensive loss | 107 | ||||
Increase in capital surplus | 60 | ||||
SRI | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net amount paid upon closing transactions | 271 | ||||
Debt instrument, principal amount | $ 56 | ||||
Promissory note, term | 3 years | ||||
Proceeds on sale of common stock in SRI | 47 | ||||
Pre-tax gain on asset sales | 48 | ||||
Net gain on asset sales | 38 | ||||
Pre-tax charge for estimated product liability obligation | 28 | ||||
Increase (decrease) in accumulated other comprehensive loss | (77) | ||||
SRI | London Interbank Offered Rate (LIBOR) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Promissory note, basis spread on variable rate | 0.10% | ||||
Accounts receivable | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Indemnification asset | 6 | ||||
Other Assets | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Indemnification asset | $ 29 | ||||
GDTNA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Increase (decrease) in accumulated other comprehensive loss | (184) | ||||
Other (Income) Expense | SRI | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax gain on sale of common stock in SRI | $ 30 | $ 30 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | GDTNA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity ownership percentage | 75.00% | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | DGT | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity ownership percentage | 25.00% | ||||
SRI | Disposal Group, Disposed of by Sale, Not Discontinued Operations | DGT | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity ownership percentage | 25.00% |
Income Taxes - Income before In
Income Taxes - Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, U.S. | $ 595 | $ 284 | $ 400 |
Income before income taxes, foreign | 612 | 324 | 287 |
Income before income taxes | $ 1,207 | $ 608 | $ 687 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Federal statutory tax rate | 35.00% | ||
U.S. Federal income tax expense at the statutory rate of 35% | $ 422 | $ 213 | $ 240 |
U.S. credits (R&D, foreign tax credits) and benefits offset to OCI | (163) | (72) | 0 |
Adjustment for foreign income taxed at different rates | (51) | (39) | (37) |
State income taxes, net of U.S. Federal benefit | 16 | 10 | 12 |
Net foreign losses (income) with no tax due to valuation allowances | 8 | (19) | 49 |
Net establishment (resolution) of uncertain tax positions | 3 | (13) | 3 |
Deferred tax impact of enacted tax rate and law changes | (2) | (2) | 33 |
Deconsolidation of Venezuelan subsidiary | 0 | 157 | 0 |
Provision for undistributed foreign earnings | 0 | 0 | 131 |
Other | 5 | 1 | 2 |
United States and Foreign Tax (Benefit) Expense | (77) | 232 | (1,834) |
Domestic Tax Authority | |||
Income Taxes [Line Items] | |||
Net establishment (release) of foreign valuation allowances | 39 | (8) | (2,318) |
Foreign Tax Authority | |||
Income Taxes [Line Items] | |||
Net establishment (release) of foreign valuation allowances | $ (354) | $ 4 | $ 51 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (25) | $ 0 | $ 0 |
Foreign | 175 | 154 | 135 |
State | 2 | (1) | 1 |
Current income tax expense (benefit) | 152 | 153 | 136 |
Deferred: | |||
Federal | 77 | 74 | (2,103) |
Foreign | (328) | 5 | 84 |
State | 22 | 0 | 49 |
Deferred income tax expense (benefit) | (229) | 79 | (1,970) |
United States and Foreign Tax (Benefit) Expense | $ (77) | $ 232 | $ (1,834) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Tax loss carryforwards and credits | $ 1,503 | $ 1,415 |
Capitalized research and development expenditures | 666 | 655 |
Accrued expenses deductible as paid | 456 | 501 |
Postretirement benefits and pensions | 294 | 288 |
Investment and receivables related to Venezuelan deconsolidation | 134 | 157 |
Alternative minimum tax credit carryforwards | 43 | 78 |
Vacation and sick pay | 37 | 37 |
Rationalizations and other provisions | 36 | 22 |
Other | 106 | 121 |
Total gross deferred tax assets | 3,275 | 3,274 |
Valuation allowance | (326) | (621) |
Total deferred tax assets | 2,949 | 2,653 |
Property basis differences | (482) | (459) |
Tax on undistributed earnings of subsidiaries | (138) | (144) |
Total net deferred tax assets | $ 2,329 | $ 2,050 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 54 | $ 81 | $ 88 |
Increases related to prior year tax positions | 19 | 10 | 15 |
Decreases related to prior year tax positions | (8) | (10) | (12) |
Settlements | (8) | (14) | (6) |
Foreign currency impact | 6 | (15) | (4) |
Increases related to current year tax positions | 1 | 2 | 0 |
Lapse of statute of limitations | (1) | 0 | 0 |
Balance at end of period | $ 63 | $ 54 | $ 81 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||||
Income tax (benefit) expense | $ (77) | $ 232 | $ (1,834) | ||
Net discrete tax adjustments | 458 | 18 | 1,980 | ||
Income tax benefit resulting from election change | 163 | ||||
Tax benefit from the conclusion of non-U.S. tax claims | 9 | ||||
Loss on deconsolidation of Venezuelan subsidiary | $ 646 | 0 | 646 | 0 | |
Tax benefit from research and development tax credit | 10 | ||||
Provision for potential U.S. Federal taxation of certain undistributed earnings of foreign subsidiaries | 0 | 0 | 131 | ||
Deferred tax impact of enacted law changes | (2) | (2) | 33 | ||
Foreign tax assets for net operating loss, capital loss and tax credit carryforwards | 507 | ||||
Valuation allowance | 621 | 326 | 621 | ||
Federal tax assets for net operating loss and tax credit carryforwards | 907 | ||||
State tax assets for net operating loss and tax credit carryforwards | 89 | ||||
Foreign tax credits subject to expiration | 849 | ||||
Tax credits from research and development | 58 | ||||
Deferred tax assets, unrealized stock option deductions | 56 | ||||
Unrecognized tax benefits | $ 54 | 63 | 54 | 81 | $ 88 |
Favorable tax expense impact of unrecognized tax benefits, if recognized | 47 | ||||
Accrued interest | 4 | ||||
Unrecognized tax benefits requiring the use of cash if not favorably settled | 12 | ||||
Undistributed foreign subsidiaries earnings | 1,800 | ||||
Income tax cash payments, net | 153 | 113 | 127 | ||
Special Enterprise Zone Tax Credits | |||||
Income Taxes [Line Items] | |||||
Foreign tax assets for net operating loss, capital loss and tax credit carryforwards | 11 | ||||
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | (354) | 4 | 51 | ||
Valuation allowance | 187 | ||||
Foreign Tax Authority | Deferred Tax Assets of Certain Subsidiaries in England, France, Luxembourg and New Zealand | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | (331) | ||||
Foreign Tax Authority | Deferred Tax Assets of Venezuelan and Brazilian Subsidiaries | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | 37 | ||||
Foreign Tax Authority | Deferred Tax Assets of a Luxembourg Subsidiary | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | 9 | ||||
Domestic Tax Authority | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | 39 | (8) | (2,318) | ||
Tax benefit from loss on deconsolidation of subsidiary | $ 69 | ||||
Valuation allowance | 139 | ||||
Domestic Tax Authority | Deferred Tax Assets From Receivables of Deconsolidated Venezuelan Operations | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | 39 | ||||
Domestic Tax Authority | Deferred Tax Assets Related to Brazil | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | $ (7) | ||||
Domestic Tax Authority | Deferred Tax Assets with Previous Allowances | |||||
Income Taxes [Line Items] | |||||
Net establishment (release) of valuation allowances | (2,179) | ||||
Chile | |||||
Income Taxes [Line Items] | |||||
Deferred tax impact of enacted law changes | $ 11 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 01, 2014 | |
Earnings per share — basic: | ||||
Goodyear net income | $ 1,264 | $ 307 | $ 2,452 | |
Less: Preferred stock dividends | 0 | 0 | 7 | |
Goodyear Net Income available to Common Shareholders | $ 1,264 | $ 307 | $ 2,445 | |
Weighted average shares outstanding (in shares) | 263,000,000 | 269,000,000 | 268,000,000 | |
Earnings per common share-basic (in dollars per share) | $ 4.81 | $ 1.14 | $ 9.13 | |
Earnings per share — diluted: | ||||
Goodyear net income | $ 1,264 | $ 307 | $ 2,452 | |
Less: Preferred stock dividends | 0 | 0 | 0 | |
Goodyear net income available to common shareholders | $ 1,264 | $ 307 | $ 2,452 | |
Weighted average shares outstanding (in shares) | 263,000,000 | 269,000,000 | 268,000,000 | |
Dilutive effect of mandatory convertible preferred stock (in shares) | 0 | 0 | 7,000,000 | |
Dilutive effect of stock options and other dilutive securities (in shares) | 3,000,000 | 4,000,000 | 4,000,000 | |
Weighted average shares outstanding — diluted (in shares) | 266,000,000 | 273,000,000 | 279,000,000 | |
Earnings per common share-diluted (in dollars per share) | $ 4.74 | $ 1.12 | $ 8.78 | |
Preferred Stock | ||||
Earnings per share — diluted: | ||||
Shares converted from preferred to common stock (in shares) | 27,573,735 | |||
Rate of conversion from preferred to common stock (in shares) | 2.7574 | |||
Underwater Stock Options | ||||
Earnings per share — diluted: | ||||
Equivalent shares excluded from weighted average shares outstanding (in shares) | 1,000,000 | 0 | 2,000,000 |
Business Segments - Reporting I
Business Segments - Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Operating Income: | ||||
Net Sales | $ 15,158 | $ 16,443 | $ 18,138 | |
Rationalizations | 210 | 114 | 95 | |
Interest expense | 372 | 438 | 444 | |
Other (Income) Expense | (10) | (141) | 286 | |
Asset write-offs and accelerated depreciation | 20 | 8 | 7 | |
Loss on deconsolidation of Venezuelan subsidiary | $ 646 | 0 | 646 | 0 |
Income before Income Taxes | 1,207 | 608 | 687 | |
Royalty income | 23 | 192 | 35 | |
Operating Segments | ||||
Segment Operating Income: | ||||
Rationalizations | 200 | 114 | 95 | |
Income before Income Taxes | 1,985 | 2,020 | 1,706 | |
Segment Reconciling Items | ||||
Segment Operating Income: | ||||
Rationalizations | 210 | 114 | 95 | |
Interest expense | 372 | 438 | 444 | |
Other (Income) Expense | (10) | (141) | 286 | |
Asset write-offs and accelerated depreciation | 20 | 8 | 7 | |
Corporate incentive compensation plans | 76 | 103 | 97 | |
Curtailments/settlements/termination benefits | 16 | 137 | 33 | |
Intercompany profit elimination | 2 | 3 | (9) | |
Loss on deconsolidation of Venezuelan subsidiary | 0 | 646 | 0 | |
Retained expenses of divested operations | 18 | 14 | 16 | |
Corporate and Eliminations | ||||
Segment Operating Income: | ||||
Other | 74 | 90 | 50 | |
Intersegment Eliminations | ||||
Segment Operating Income: | ||||
Royalty income | 24 | 25 | 24 | |
Americas | ||||
Segment Operating Income: | ||||
Net Sales | 8,172 | 9,370 | 9,881 | |
Asset write-offs and accelerated depreciation | 1 | 0 | 0 | |
Americas | Operating Segments | ||||
Segment Operating Income: | ||||
Rationalizations | 15 | 15 | (3) | |
Income before Income Taxes | 1,151 | 1,266 | 967 | |
Europe, Middle East and Africa | ||||
Segment Operating Income: | ||||
Net Sales | 4,880 | 5,115 | 6,180 | |
Asset write-offs and accelerated depreciation | 19 | 8 | 7 | |
Europe, Middle East and Africa | Operating Segments | ||||
Segment Operating Income: | ||||
Rationalizations | 184 | 95 | 89 | |
Income before Income Taxes | 461 | 435 | 438 | |
Asia Pacific | ||||
Segment Operating Income: | ||||
Net Sales | 2,106 | 1,958 | 2,077 | |
Asset write-offs and accelerated depreciation | 0 | 0 | 0 | |
Asia Pacific | Operating Segments | ||||
Segment Operating Income: | ||||
Rationalizations | 1 | 4 | 9 | |
Income before Income Taxes | $ 373 | $ 319 | $ 301 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 16,511 | $ 16,391 | $ 18,000 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 13,601 | 13,211 | 14,567 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Total assets | 6,701 | 6,275 | 7,019 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Total assets | 4,385 | 4,377 | 4,954 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,515 | 2,559 | 2,594 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 2,910 | $ 3,180 | $ 3,433 |
Business Segments - Geographic
Business Segments - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | $ 15,158 | $ 16,443 | $ 18,138 |
Long-Lived Assets | 7,040 | 6,777 | 7,153 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 6,724 | 7,338 | 7,558 |
Long-Lived Assets | 2,651 | 2,468 | 2,464 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 716 | 766 | 809 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 1,853 | 1,905 | 2,288 |
Long-Lived Assets | 717 | 778 | 833 |
Other international | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 6,581 | 7,200 | 8,292 |
Long-Lived Assets | $ 2,956 | $ 2,765 | $ 3,047 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Rationalizations | $ 210 | $ 114 | $ 95 |
Net (gains) losses on asset sales | (31) | (71) | (3) |
Asset write-offs and accelerated depreciation | 20 | 8 | 7 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Asset write-offs and accelerated depreciation | 1 | 0 | 0 |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Asset write-offs and accelerated depreciation | 19 | 8 | 7 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Asset write-offs and accelerated depreciation | 0 | 0 | 0 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 200 | 114 | 95 |
Net (gains) losses on asset sales | (22) | 7 | (1) |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 15 | 15 | (3) |
Net (gains) losses on asset sales | (4) | (2) | (8) |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 184 | 95 | 89 |
Net (gains) losses on asset sales | (17) | 14 | 7 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 1 | 4 | 9 |
Net (gains) losses on asset sales | (1) | (5) | 0 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Rationalizations | 10 | 0 | 0 |
Net (gains) losses on asset sales | $ (9) | (78) | $ (2) |
SRI | |||
Segment Reporting Information [Line Items] | |||
Net (gains) losses on asset sales | (48) | ||
SRI | Corporate | |||
Segment Reporting Information [Line Items] | |||
Net (gains) losses on asset sales | (48) | ||
Pre-tax gain on sale of common stock in SRI | $ 30 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 996 | $ 983 | $ 923 |
Depreciation and amortization | 727 | 698 | 732 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 946 | 965 | 854 |
Depreciation and amortization | 678 | 664 | 701 |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 618 | 618 | 434 |
Depreciation and amortization | 366 | 364 | 376 |
Operating Segments | Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 191 | 223 | 266 |
Depreciation and amortization | 192 | 186 | 220 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 137 | 124 | 154 |
Depreciation and amortization | 120 | 114 | 105 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 50 | 18 | 69 |
Depreciation and amortization | $ 49 | $ 34 | $ 31 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 01, 2015 | |
Segment Reporting Information [Line Items] | ||||
Equity in income | $ 0 | $ 0 | $ 0 | |
DGT | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Equity interest prior to dissolution | 25.00% | |||
NGY | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Equity interest prior to dissolution | 25.00% | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Equity in income | (1) | (16) | (28) | |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Equity in income | 0 | (3) | (5) | |
Operating Segments | Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Equity in income | (1) | (1) | 0 | |
Operating Segments | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Equity in income | $ 0 | $ (12) | $ (23) |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 3 | |||
Cash and cash equivalents | $ 1,132 | $ 1,476 | $ 2,161 | $ 2,996 |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 310 | $ 513 | ||
Concentrations of cash and cash equivalents | 27.00% | 35.00% | ||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 427 | $ 415 | ||
Concentrations of cash and cash equivalents | 38.00% | 28.00% | ||
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 203 | $ 179 | ||
Concentrations of cash and cash equivalents | 18.00% | 12.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable | $ 1,870 | $ 2,138 |
Allowance for doubtful accounts | (101) | (105) |
Accounts receivable, net | $ 1,769 | $ 2,033 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 436 | $ 419 |
Work in process | 131 | 138 |
Finished goods | 2,060 | 1,907 |
Total inventory | $ 2,627 | $ 2,464 |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 555 | $ 601 |
Acquisitions | 0 | 6 |
Divestitures | 0 | (4) |
Translation | (20) | (48) |
Ending balance | 535 | 555 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 91 | 93 |
Acquisitions | 0 | 0 |
Divestitures | 0 | (2) |
Translation | 0 | 0 |
Ending balance | 91 | 91 |
Europe, Middle East and Africa | ||
Goodwill [Roll Forward] | ||
Beginning balance | 401 | 448 |
Acquisitions | 0 | 0 |
Divestitures | 0 | (2) |
Translation | (18) | (45) |
Ending balance | 383 | 401 |
Asia Pacific | ||
Goodwill [Roll Forward] | ||
Beginning balance | 63 | 60 |
Acquisitions | 0 | 6 |
Divestitures | 0 | 0 |
Translation | (2) | (3) |
Ending balance | $ 61 | $ 63 |
Goodwill and Intangible Asset80
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives, gross | $ 128 | $ 128 |
Intangible assets with indefinite lives, accumulated amortization | (6) | (6) |
Intangible assets with indefinite lives, net | 122 | 122 |
Intangible assets, gross | 160 | 161 |
Intangible assets, accumulated amortization | (24) | (23) |
Intangible assets, net | 136 | 138 |
Trademarks and Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 13 | 12 |
Finite-lived intangible assets, accumulated amortization | (9) | (8) |
Finite-lived intangible assets, net | 4 | 4 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 19 | 21 |
Finite-lived intangible assets, accumulated amortization | (9) | (9) |
Finite-lived intangible assets, net | $ 10 | $ 12 |
Goodwill and Intangible Asset81
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,017 | 1,000,000 | ||
2,018 | 1,000,000 | ||
2,019 | 1,000,000 | ||
2,020 | 1,000,000 | ||
2,021 | $ 1,000,000 | ||
Weighted average remaining amortization period | 23 years | ||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Other Assets and Investments (D
Other Assets and Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment in Sumitomo Rubber Industries, Ltd. (in shares) | 3,421,306 | |||
Dividends received from consolidated subsidiaries | $ 66 | $ 46 | $ 273 | |
Dividends received from affiliates accounted for using the equity method | $ 4 | 24 | $ 24 | |
SRI | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Percentage of investment shares sold | 100.00% | |||
Other (Income) Expense | SRI | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Pre-tax gain on sale of common stock in SRI | $ 30 | $ 30 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment - (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 397 | $ 387 |
Buildings | 2,323 | 2,262 |
Machinery and equipment | 12,278 | 11,787 |
Construction in progress | 887 | 783 |
Property, plant and equipment, gross | 15,885 | 15,219 |
Accumulated depreciation | (9,125) | (8,637) |
Property plant and equipment, net before spare parts | 6,760 | 6,582 |
Spare parts | 280 | 195 |
Property, plant and equipment, net | 7,040 | 6,777 |
Owned | ||
Property, Plant and Equipment [Line Items] | ||
Land | 397 | 387 |
Buildings | 2,288 | 2,230 |
Machinery and equipment | 12,232 | 11,719 |
Construction in progress | 887 | 783 |
Property, plant and equipment, gross | 15,804 | 15,119 |
Accumulated depreciation | (9,102) | (8,605) |
Property plant and equipment, net before spare parts | 6,702 | 6,514 |
Spare parts | 280 | 195 |
Property, plant and equipment, net | 6,982 | 6,709 |
Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Land | 0 | 0 |
Buildings | 35 | 32 |
Machinery and equipment | 46 | 68 |
Construction in progress | 0 | 0 |
Property, plant and equipment, gross | 81 | 100 |
Accumulated depreciation | (23) | (32) |
Property plant and equipment, net before spare parts | 58 | 68 |
Spare parts | 0 | 0 |
Property, plant and equipment, net | $ 58 | $ 68 |
Minimum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Maximum | Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 45 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years |
Leased Assets (Details)
Leased Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Gross rental expense | $ 318 | $ 324 | $ 387 |
Sublease rental income | (27) | (33) | (40) |
Rent expense, net | 291 | $ 291 | $ 347 |
Future Minimum Payments Due, Fiscal Year Maturity | |||
2,017 | 11 | ||
2,018 | 8 | ||
2,019 | 6 | ||
2,020 | 4 | ||
2,021 | 15 | ||
2022 and Beyond | 26 | ||
Total | 70 | ||
Imputed Interest, Fiscal Year Maturity | |||
2,017 | (3) | ||
2,018 | (3) | ||
2,019 | (3) | ||
2,020 | (3) | ||
2,021 | (2) | ||
2022 and Beyond | (15) | ||
Total | (29) | ||
Present Value, Fiscal Year Maturity | |||
2,017 | 8 | ||
2,018 | 5 | ||
2,019 | 3 | ||
2,020 | 1 | ||
2,021 | 13 | ||
2022 and Beyond | 11 | ||
Total | 41 | ||
Future Minimum Payments Due, Fiscal Year Maturity | |||
2,017 | 266 | ||
2,018 | 202 | ||
2,019 | 154 | ||
2,020 | 118 | ||
2,021 | 87 | ||
2022 and Beyond | 267 | ||
Total | 1,094 | ||
Minimum Sublease Rentals, Fiscal Year Maturity | |||
2,017 | (18) | ||
2,018 | (11) | ||
2,019 | (7) | ||
2,020 | (5) | ||
2,021 | (3) | ||
2022 and Beyond | (27) | ||
Total | (71) | ||
Future Minimum Payments Due, Net of Sublease Rentals, Fiscal Year Maturity | |||
2,017 | 248 | ||
2,018 | 191 | ||
2,019 | 147 | ||
2,020 | 113 | ||
2,021 | 84 | ||
2022 and Beyond | 240 | ||
Total | 1,023 | ||
Imputed interest | (166) | ||
Present value | $ 857 |
Financing Arrangements and De85
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Capital Leases Due Within One Year (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Notes payable and overdrafts | $ 245 | $ 49 |
Long term debt and capital leases due within one year: | ||
Other domestic and foreign debt (including capital leases) | 436 | 587 |
Unamortized deferred financing fees | 0 | (2) |
Total long term debt and capital leases due within one year | 436 | 585 |
Total obligations due within one year | $ 681 | $ 634 |
Notes Payable and Overdrafts | ||
Notes Payable, Overdrafts, Long-term Debt and Capital Leases Due Within One Year | ||
Weighted average interest rate | 6.18% | 9.42% |
Long Term Debt and Capital Leases | ||
Long term debt and capital leases due within one year: | ||
Weighted average interest rate | 9.39% | 6.68% |
Financing Arrangements and De86
Financing Arrangements and Derivative Financial Instruments - Long Term Debt and Capital Leases, Net of Unamortized Discounts, and Interest Rates (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Oct. 16, 2016EUR (€) | Oct. 15, 2016EUR (€) | Jun. 30, 2016 | Apr. 07, 2016USD ($) | Jan. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) |
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Unamortized deferred financing fees | $ (42,000,000) | $ (48,000,000) | |||||||
Total long term debt excluding capital leases | 5,193,000,000 | 5,611,000,000 | |||||||
Capital lease obligations | 41,000,000 | 48,000,000 | |||||||
Long-term debt and capital leases | 5,234,000,000 | 5,659,000,000 | |||||||
Less portion due within one year | (436,000,000) | (585,000,000) | |||||||
Long-term debt and capital leases, excluding current maturities | 4,798,000,000 | 5,074,000,000 | |||||||
Other Foreign and Domestic Debt | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 951,000,000 | $ 906,000,000 | |||||||
Interest rate | 9.14% | 9.14% | 9.42% | 9.42% | |||||
6.75% Euro Notes due 2019 | Euro Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 0 | $ 272,000,000 | |||||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||
8.75% due 2020 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 273,000,000 | $ 271,000,000 | |||||||
Interest rate, stated percentage | 8.75% | 8.75% | 8.75% | 8.75% | |||||
6.5% due 2021 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 0 | $ 900,000,000 | |||||||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | ||||
7% due 2022 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 700,000,000 | $ 700,000,000 | |||||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | |||||
5.125% due 2023 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | 5.125% | |||||
3.75% Euro Notes due 2023 | Euro Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 264,000,000 | $ 272,000,000 | |||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | 3.75% | |||||
5% due 2026 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 900,000,000 | $ 0 | |||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | 5.00% | |||||
7% due 2028 | Senior Notes | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 150,000,000 | $ 150,000,000 | |||||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | 7.00% | |||||
Revolving Credit Facility | $2.0 billion first lien revolving credit facility due 2021 | Line of Credit | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 85,000,000 | $ 0 | |||||||
Interest rate | 1.98% | 1.98% | 0.00% | 0.00% | |||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 | ||||||
Revolving Credit Facility | €550 million revolving credit facility due 2020 | Line of Credit | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 0 | $ 0 | |||||||
Interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||||
Line of credit facility, maximum borrowing capacity | € | € 550,000,000 | € 550,000,000 | |||||||
Secured Debt | Second lien term loan facility due 2019 | Line of Credit | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 399,000,000 | $ 598,000,000 | |||||||
Interest rate | 3.75% | 3.75% | 3.75% | 3.75% | |||||
Secured Debt | Pan-European accounts receivable facility | Line of Credit | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 198,000,000 | € 188,000,000 | $ 125,000,000 | € 115,000,000 | |||||
Interest rate | 0.98% | 0.98% | 1.35% | 1.35% | |||||
Line of credit facility, maximum borrowing capacity | € | € 320,000,000 | € 340,000,000 | |||||||
Chinese Credit Facilities | Chinese credit facilities | Line of Credit | |||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||
Long-term debt, before deferred financing fees | $ 315,000,000 | $ 465,000,000 | |||||||
Interest rate | 4.68% | 4.68% | 5.22% | 5.22% |
Financing Arrangements and De87
Financing Arrangements and Derivative Financial Instruments - Maturities of Long-term Debt and Capital Leases (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt and Capital Lease Annual Maturities | |
2,017 | $ 681 |
2,018 | 312 |
2,019 | 898 |
2,020 | 344 |
2,021 | 104 |
U.S. | |
Debt and Capital Lease Annual Maturities | |
2,017 | 6 |
2,018 | 59 |
2,019 | 401 |
2,020 | 283 |
2,021 | 85 |
Foreign | |
Debt and Capital Lease Annual Maturities | |
2,017 | 675 |
2,018 | 253 |
2,019 | 497 |
2,020 | 61 |
2,021 | $ 19 |
Financing Arrangements and De88
Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - asset, not designated as hedging instrument | $ 30 | $ 10 |
Fair value - asset, designated as hedging instrument | 9 | 5 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - liability, not designated as hedging instrument | (18) | (10) |
Fair value - liability, designated as hedging instrument | 0 | (1) |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value - asset, designated as hedging instrument | 2 | 0 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, notional amount | 1,812 | 1,094 |
Foreign currency derivatives, net transaction gains | 4 | 79 |
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, notional amount | $ 293 | $ 168 |
Financing Arrangements and De89
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, 2016 | Dec. 31, 2015 | |
Financing Arrangements and Derivative Financial Instruments [Abstract] | ||
Amounts deferred to AOCL | $ (12) | $ (20) |
Amount of deferred loss (gain) reclassified from AOCL into CGS | (6) | (28) |
Amounts excluded from effectiveness testing | (1) | $ 1 |
Deferred gains to be reclassified to earnings within next twelve months | $ 11 |
Financing Arrangements and De90
Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Credit arrangements | $ 8,491 |
Credit arrangements, unused amount | $ 2,970 |
Debt, percentage bearing variable interest | 34.00% |
Variable rate credit arrangements | |
Debt Instrument [Line Items] | |
Interest rate | 6.20% |
Short-term Debt | |
Debt Instrument [Line Items] | |
Credit arrangements | $ 559 |
Credit arrangements, unused amount | 314 |
Long-term Debt | |
Debt Instrument [Line Items] | |
Credit arrangements | 7,932 |
Credit arrangements, unused amount | $ 2,656 |
Financing Arrangements and De91
Financing Arrangements and Derivative Financial Instruments - Notes Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016EUR (€) | Jan. 31, 2016EUR (€) | |
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption premium | $ 53,000,000 | $ 41,000,000 | ||||
6.75% Euro Notes due 2019 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | € | € 250,000,000 | |||||
Interest rate, stated percentage | 6.75% | 6.75% | 6.75% | 6.75% | ||
Redemption premium | $ 9,000,000 | |||||
Deferred financing fees write-off | $ 3,000,000 | |||||
8.75% due 2020 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 282,000,000 | |||||
Interest rate, stated percentage | 8.75% | 8.75% | 8.75% | |||
Effective yield | 9.20% | 9.20% | ||||
6.5% due 2021 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 900,000,000 | |||||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | ||
Redemption premium | $ 44,000,000 | |||||
Deferred financing fees write-off | $ 9,000,000 | |||||
5.125% due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 1,000,000,000 | |||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | |||
Notes sold, percentage of principle amount | 100.00% | 100.00% | ||||
Debt redemption, potential percentage of principal amount from equity offerings | 35.00% | |||||
7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 700,000,000 | |||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | |||
Notes sold, percentage of principle amount | 100.00% | 100.00% | ||||
3.75% Euro Notes due 2023 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | € | € 250,000,000 | |||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||
Notes sold, percentage of principle amount | 100.00% | 100.00% | ||||
Debt redemption, potential percentage of principal amount from equity offerings | 35.00% | |||||
5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 900,000,000 | |||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | |||
Notes sold, percentage of principle amount | 100.00% | 100.00% | ||||
Debt redemption, potential percentage of principal amount from equity offerings | 35.00% | |||||
Debt redemption, redemption price from equity offerings | 105.00% | |||||
7% due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 150,000,000 | |||||
Interest rate, stated percentage | 7.00% | 7.00% | 7.00% | |||
Basis spread | 0.15% | |||||
Period Commencing May 15, 2017 | 7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 103.50% | |||||
Period Commencing May 15, 2018 | 7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 102.333% | |||||
Period Commencing May 15, 2019 | 7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 101.167% | |||||
Period Commencing May 15, 2020 | 7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Period Prior to May 15, 2017 | 7% due 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Period Commencing November 15, 2018 | 5.125% due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 102.563% | |||||
Period Commencing November 15, 2019 | 5.125% due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 101.281% | |||||
Period Commencing November 15, 2020 | 5.125% due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Period Prior to November 15, 2018 | 5.125% due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Debt redemption, redemption price from equity offerings | 105.125% | |||||
Period Commencing December 15, 2018 | 3.75% Euro Notes due 2023 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 101.875% | |||||
Period Commencing December 15, 2019 | 3.75% Euro Notes due 2023 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.938% | |||||
Period Commencing December 15, 2020 | 3.75% Euro Notes due 2023 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Period Prior to December 15, 2018 | 3.75% Euro Notes due 2023 | Euro Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Debt redemption, redemption price from equity offerings | 103.75% | |||||
Period Commencing May 31, 2021 | 5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 102.50% | |||||
Period Commencing May 31, 2022 | 5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 101.667% | |||||
Period Commencing May 31, 2023 | 5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.833% | |||||
Period Commencing May 31, 2024 | 5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Period Prior to May 31, 2021 | 5% due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
At Any Time Plus Make Whole Premium | 8.75% due 2020 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
At Any Time Plus Make Whole Premium | 7% due 2028 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price | 100.00% | |||||
Treasury Rate | 8.75% due 2020 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 0.50% |
Financing Arrangements and De92
Financing Arrangements and Derivative Financial Instruments - Credit Facilities Narrative (Details) | Apr. 07, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016AUD | Oct. 16, 2016EUR (€) | Oct. 15, 2016EUR (€) | Jul. 01, 2016AUD | Jun. 30, 2016AUD | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015AUD |
Amended and Restated First Lien Revolving Credit Facility | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum percentage of equity interest In foreign subsidiaries to guarantee debt obligation | 65.00% | ||||||||||
Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 | ||||||||
Basis spread | 1.25% | ||||||||||
Line of credit facility, maximum borrowing capacity inputs, increase based on value of cash | $ 200,000,000 | ||||||||||
Line of credit facility, additional borrowing capacity which may be requested from lenders | 250,000,000 | ||||||||||
Line of credit facility, borrowing base amount below stated amount | $ 369,000,000 | ||||||||||
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 | $ 85,000,000 | 0 | |||||||||
Long-term debt, before deferred financing fees | $ 85,000,000 | 0 | |||||||||
Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Annual commitment fee percentage on undrawn amounts | 0.30% | ||||||||||
Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Letter of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | ||||||||||
Interest rate decrease | 0.25% | ||||||||||
Letters of credit, amount outstanding | $ 40,000,000 | 315,000,000 | |||||||||
Bilateral Letter of Credit Agreements | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Letters of credit, amount outstanding | $ 272,000,000 | ||||||||||
Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum pro forma senior secured leverage ratio before proceed restrictions | 3 | ||||||||||
Long-term debt, before deferred financing fees | $ 399,000,000 | 598,000,000 | |||||||||
Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | € 550,000,000 | ||||||||||
Line of credit facility, amount outstanding | $ 0 | 0 | |||||||||
Annual commitment fee percentage | 0.30% | ||||||||||
Maximum indebtedness to EBITDA ratio for a period of four consecutive quarters | 3 | ||||||||||
Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | Letter of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | 50,000,000 | ||||||||||
Letters of credit, amount outstanding | € | 0 | € 0 | |||||||||
Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | German Tranche | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | 125,000,000 | ||||||||||
Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | All Borrower Tranche | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | 425,000,000 | ||||||||||
Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | Bridge Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | € 320,000,000 | € 340,000,000 | |||||||||
Long-term debt, before deferred financing fees | 198,000,000 | 188,000,000 | 125,000,000 | 115,000,000 | |||||||
Line of credit facility, current borrowing capacity | 198,000,000 | 188,000,000 | 276,000,000 | € 254,000,000 | |||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | 45,000,000 | ||||||||||
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | € | € 450,000,000 | ||||||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | AUD | AUD 60,000,000 | AUD 70,000,000 | |||||||||
Line of credit facility, amount outstanding | 12,000,000 | AUD 16,000,000 | 19,000,000 | AUD 26,000,000 | |||||||
Line of credit facility, current borrowing capacity | 28,000,000 | 39,000,000 | 34,000,000 | AUD 47,000,000 | |||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | AUD | 60,000,000 | ||||||||||
Australia Accounts Receivable Securitization Facility | Line of Credit | Secured Debt | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | AUD | AUD 85,000,000 | ||||||||||
Accounts Receivable Factoring Facilities | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Off-balance sheet accounts receivable securitization | 502,000,000 | 299,000,000 | |||||||||
Chinese Credit Facilities | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, amount outstanding | 315,000,000 | 465,000,000 | |||||||||
Line of credit facility, remaining borrowing capacity | 252,000,000 | ||||||||||
Restricted cash related to funds obtained under credit facilities | $ 8,000,000 | $ 11,000,000 | |||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.25% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.50% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 0.75% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 3.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.75% | ||||||||||
Base Rate | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 0.25% | ||||||||||
Base Rate | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 0.50% | ||||||||||
Base Rate | Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 2.00% | ||||||||||
Overnight Bank Funding Rate | Amended and Restated First Lien Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 0.50% | ||||||||||
Federal Funds Rate | Amended and Restated Second Lien Term Loan Facility | Line of Credit | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 0.50% | ||||||||||
European Interbank Offer Rate (EURIBOR) | Amended and Restated Senior Secured European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread | 1.75% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Investments | $ 9 | $ 7 |
Foreign Exchange Contracts | 41 | 15 |
Total Assets at Fair Value | 50 | 22 |
Liabilities: | ||
Foreign Exchange Contracts | 18 | 11 |
Total Liabilities at Fair Value | 18 | 11 |
Supplemental Fair Value Information | ||
Carrying amount — liability | 5,193 | 5,611 |
Fixed Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 3,514 | 3,844 |
Fair value — liability | 3,669 | 4,018 |
Variable Rate Debt, Excluding Capital Leases | ||
Supplemental Fair Value Information | ||
Carrying amount — liability | 1,679 | 1,767 |
Fair value — liability | 1,678 | 1,765 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Assets: | ||
Investments | 9 | 7 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 9 | 7 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Supplemental Fair Value Information | ||
Fair value — liability | 3,804 | 4,291 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 41 | 15 |
Total Assets at Fair Value | 41 | 15 |
Liabilities: | ||
Foreign Exchange Contracts | 18 | 11 |
Total Liabilities at Fair Value | 18 | 11 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investments | 0 | 0 |
Foreign Exchange Contracts | 0 | 0 |
Total Assets at Fair Value | 0 | 0 |
Liabilities: | ||
Foreign Exchange Contracts | 0 | 0 |
Total Liabilities at Fair Value | $ 0 | $ 0 |
Pension, Other Postretirement94
Pension, Other Postretirement Benefits and Savings Plans - Benefit Costs and Amounts Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | ||||
Benefits cost: | ||||
Service cost | $ 5 | $ 4 | $ 15 | |
Interest cost | 164 | 238 | 256 | |
Expected return on plan assets | (255) | (295) | (311) | |
Amortization of prior service cost (credit) | 0 | 0 | 1 | |
Amortization of net losses | 109 | 106 | 114 | |
Net periodic cost | 23 | 53 | 75 | |
Curtailments/settlements/termination benefits | $ 137 | 0 | 137 | 32 |
Total benefits cost | 23 | 190 | 107 | |
Recognized in other comprehensive (income) loss before tax and minority: | ||||
Prior service (credit) cost from plan amendments | 0 | 0 | (1) | |
Increase (decrease) in net actuarial losses | 81 | 150 | 292 | |
Amortization of prior service (cost) credit in net periodic cost | 0 | 0 | (1) | |
Amortization of net losses in net periodic cost | (109) | (106) | (114) | |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | (386) | (32) | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | 0 | |
Total recognized in other comprehensive loss (income) before tax and minority | (28) | (342) | 144 | |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | (5) | (152) | 251 | |
Non-U.S. | ||||
Benefits cost: | ||||
Service cost | 29 | 43 | 34 | |
Interest cost | 80 | 113 | 131 | |
Expected return on plan assets | (88) | (107) | (118) | |
Amortization of prior service cost (credit) | 0 | 1 | 1 | |
Amortization of net losses | 27 | 32 | 35 | |
Net periodic cost | 48 | 82 | 83 | |
Curtailments/settlements/termination benefits | 16 | 2 | (13) | |
Total benefits cost | 64 | 84 | 70 | |
Recognized in other comprehensive (income) loss before tax and minority: | ||||
Prior service (credit) cost from plan amendments | 0 | 0 | 1 | |
Increase (decrease) in net actuarial losses | 35 | (45) | (78) | |
Amortization of prior service (cost) credit in net periodic cost | 0 | (1) | (1) | |
Amortization of net losses in net periodic cost | (27) | (34) | (36) | |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | (17) | (5) | (16) | |
Deconsolidation of Venezuelan subsidiary | 0 | (62) | 0 | |
Total recognized in other comprehensive loss (income) before tax and minority | (9) | (147) | (130) | |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | 55 | (63) | (60) | |
Other Postretirement Benefits | ||||
Benefits cost: | ||||
Service cost | 3 | 3 | 4 | |
Interest cost | 12 | 15 | 19 | |
Expected return on plan assets | 0 | 0 | (1) | |
Amortization of prior service cost (credit) | (45) | (45) | (45) | |
Amortization of net losses | 5 | 7 | 8 | |
Net periodic cost | (25) | (20) | (15) | |
Curtailments/settlements/termination benefits | 2 | 0 | 0 | |
Total benefits cost | (23) | (20) | (15) | |
Recognized in other comprehensive (income) loss before tax and minority: | ||||
Prior service (credit) cost from plan amendments | 0 | 0 | 0 | |
Increase (decrease) in net actuarial losses | (1) | (19) | 3 | |
Amortization of prior service (cost) credit in net periodic cost | 45 | 45 | 45 | |
Amortization of net losses in net periodic cost | (5) | (7) | (8) | |
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures | 0 | 4 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | 0 | |
Total recognized in other comprehensive loss (income) before tax and minority | 39 | 23 | 40 | |
Total recognized in total benefits cost and other comprehensive loss (income) before tax and minority | $ 16 | $ 3 | $ 25 |
Pension, Other Postretirement95
Pension, Other Postretirement Benefits and Savings Plans - Changes in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in benefit obligation: | |||
Curtailments/settlements/termination benefits | $ 17 | $ 139 | $ 39 |
U.S. | |||
Change in benefit obligation: | |||
Beginning balance | (5,338) | (6,507) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (5) | (4) | (15) |
Interest cost | (164) | (238) | (256) |
Actuarial gain (loss) | (171) | 262 | |
Participant contributions | 0 | 0 | |
Curtailments/settlements/termination benefits | 1 | 285 | |
Divestitures | 0 | 500 | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit payments | 392 | 364 | |
Ending balance | (5,285) | (5,338) | (6,507) |
Change in plan assets: | |||
Beginning balance | 5,011 | 6,250 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | 345 | (117) | |
Company contributions to plan assets | 0 | 0 | |
Cash funding of direct participant payments | 9 | 7 | |
Participant contributions | 0 | 0 | |
Settlements | (1) | (285) | |
Divestitures | 0 | (480) | |
Foreign currency translation | 0 | 0 | |
Benefit payments | (392) | (364) | |
Ending balance | 4,972 | 5,011 | 6,250 |
Funded status at end of year | (313) | (327) | |
Non-U.S. | |||
Change in benefit obligation: | |||
Beginning balance | (2,808) | (3,178) | |
Newly adopted plans | (2) | (9) | |
Service cost — benefits earned | (29) | (43) | (34) |
Interest cost | (80) | (113) | (131) |
Actuarial gain (loss) | (384) | (5) | |
Participant contributions | (2) | (2) | |
Curtailments/settlements/termination benefits | 52 | 19 | |
Divestitures | 0 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | 80 | |
Foreign currency translation | 262 | 303 | |
Benefit payments | 128 | 140 | |
Ending balance | (2,863) | (2,808) | (3,178) |
Change in plan assets: | |||
Beginning balance | 2,493 | 2,721 | |
Newly adopted plans | 1 | 9 | |
Actual return on plan assets | 393 | 60 | |
Company contributions to plan assets | 56 | 60 | |
Cash funding of direct participant payments | 24 | 36 | |
Participant contributions | 2 | 2 | |
Settlements | (51) | (18) | |
Divestitures | 0 | 0 | |
Foreign currency translation | (283) | (237) | |
Benefit payments | (128) | (140) | |
Ending balance | 2,507 | 2,493 | 2,721 |
Funded status at end of year | (356) | (315) | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Beginning balance | (291) | (361) | |
Newly adopted plans | 0 | 0 | |
Service cost — benefits earned | (3) | (3) | (4) |
Interest cost | (12) | (15) | (19) |
Actuarial gain (loss) | 0 | 22 | |
Participant contributions | (13) | (15) | |
Curtailments/settlements/termination benefits | (2) | 0 | |
Divestitures | 0 | 6 | |
Deconsolidation of Venezuelan subsidiary | 0 | 0 | |
Foreign currency translation | (10) | 35 | |
Benefit payments | 37 | 40 | |
Ending balance | (294) | (291) | (361) |
Change in plan assets: | |||
Beginning balance | 3 | 5 | |
Newly adopted plans | 0 | 0 | |
Actual return on plan assets | 1 | 0 | |
Company contributions to plan assets | 2 | 2 | |
Cash funding of direct participant payments | 22 | 23 | |
Participant contributions | 13 | 15 | |
Settlements | 0 | 0 | |
Divestitures | 0 | 0 | |
Foreign currency translation | 0 | (2) | |
Benefit payments | (37) | (40) | |
Ending balance | 4 | 3 | $ 5 |
Funded status at end of year | $ (290) | $ (288) |
Pension, Other Postretirement96
Pension, Other Postretirement Benefits and Savings Plans - Funded Status Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ (4,817) | $ (4,955) |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (12) | (12) |
Noncurrent liabilities | (301) | (315) |
Net amount recognized | (313) | (327) |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 231 | 249 |
Current liabilities | (19) | (19) |
Noncurrent liabilities | (568) | (545) |
Net amount recognized | (356) | (315) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (21) | (23) |
Noncurrent liabilities | (269) | (265) |
Net amount recognized | $ (290) | $ (288) |
Pension, Other Postretirement97
Pension, Other Postretirement Benefits and Savings Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | $ (4) | $ (4) |
Net actuarial loss | 2,615 | 2,643 |
Gross amount recognized | 2,611 | 2,639 |
Deferred income taxes | (118) | (128) |
Net amount recognized | 2,493 | 2,511 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | 1 | 2 |
Net actuarial loss | 685 | 693 |
Gross amount recognized | 686 | 695 |
Deferred income taxes | (115) | (96) |
Net amount recognized | 571 | 599 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service (credit) cost | (59) | (104) |
Net actuarial loss | 68 | 74 |
Gross amount recognized | 9 | (30) |
Deferred income taxes | (20) | (9) |
Net amount recognized | $ (11) | $ (39) |
Pension, Other Postretirement98
Pension, Other Postretirement Benefits and Savings Plans - Weighted Average Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.99% | 4.20% | |
Discount rate for determining interest costs, benefit costs | 3.23% | 3.89% | 4.40% |
Expected long term return on plan assets, benefit costs | 5.33% | 5.00% | 5.47% |
Non-U.S. Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 2.72% | 3.47% | |
Rate of compensation increase, benefit obligations | 3.18% | 2.63% | |
Discount rate for determining interest costs, benefit costs | 3.37% | 3.31% | 4.36% |
Expected long term return on plan assets, benefit costs | 3.81% | 4.12% | 5.12% |
Rate of compensation increase, benefit cost | 2.63% | 2.88% | 3.11% |
U.S. Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 3.72% | 3.86% | |
Discount rate for determining interest costs, benefit costs | 2.98% | 3.59% | 4.06% |
Non-U.S. Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligations | 5.12% | 5.30% | |
Discount rate for determining interest costs, benefit costs | 6.31% | 4.89% | 6.62% |
Pension, Other Postretirement99
Pension, Other Postretirement Benefits and Savings Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Pension Plans | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2,017 | $ 431 |
2,018 | 415 |
2,019 | 396 |
2,020 | 387 |
2,021 | 382 |
2022-2026 | 1,765 |
Non-U.S. Pension Plans | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2,017 | 124 |
2,018 | 125 |
2,019 | 129 |
2,020 | 132 |
2,021 | 133 |
2022-2026 | 733 |
Other Postretirement Benefits | |
Without Medicare Part D Subsidy, Fiscal Year Maturity | |
2,017 | 23 |
2,018 | 23 |
2,019 | 22 |
2,020 | 22 |
2,021 | 21 |
2022-2026 | 103 |
Medicare Part D Subsidy Receipts, Fiscal Year Maturity | |
2,017 | 1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2,021 | 1 |
2022-2026 | $ 5 |
Pension, Other Postretiremen100
Pension, Other Postretirement Benefits and Savings Plans - Selected Pension Plan Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. | ||
All plans: | ||
Accumulated benefit obligation | $ 5,275 | $ 5,329 |
Plans not fully-funded: | ||
Projected benefit obligation | 5,282 | 5,336 |
Accumulated benefit obligation | 5,273 | 5,327 |
Fair value of plan assets | 4,970 | 5,009 |
Non-U.S. | ||
All plans: | ||
Accumulated benefit obligation | 2,792 | 2,722 |
Plans not fully-funded: | ||
Projected benefit obligation | 911 | 876 |
Accumulated benefit obligation | 862 | 811 |
Fair value of plan assets | $ 327 | $ 316 |
Pension, Other Postretiremen101
Pension, Other Postretirement Benefits and Savings Plans - Health Care Cost Trends (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for the next year | 6.50% | 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 | 2,025 | 2,022 |
Accumulated other postretirement benefits obligation, effect of 1% increase | $ 19 | |
Accumulated other postretirement benefits obligation, effect of 1% decrease | (16) | |
Aggregate service and interest cost, effect of 1% Increase | 1 | |
Aggregate service and interest costs, effect of 1% Decrease | $ (1) |
Pension, Other Postretiremen102
Pension, Other Postretirement Benefits and Savings Plans - Pension Plan Weighted Average Investment Allocation (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
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. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 100.00% | 100.00% |
Cash and short term securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 3.00% | 5.00% |
Cash and short term securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 1.00% | 1.00% |
Equity securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 6.00% | 6.00% |
Equity securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 9.00% | 9.00% |
Debt securities | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 91.00% | 89.00% |
Debt securities | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 78.00% | 77.00% |
Alternatives | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 0.00% | 0.00% |
Alternatives | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension plan weighted average investment allocation | 12.00% | 13.00% |
Pension, Other Postretiremen103
Pension, Other Postretirement Benefits and Savings Plans - Fair Values of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | $ 3,803 | $ 3,765 | |
Total plan assets, fair value | 4,972 | 5,011 | $ 6,250 |
Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, fair value | 1,836 | 1,755 | |
Total plan assets, fair value | 2,507 | 2,493 | 2,721 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 58 | 100 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 152 | 154 | |
Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 3,743 | 3,663 | |
Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 1,488 | 1,464 | |
Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2 | 2 | |
Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 196 | 137 | |
Cash and Short Term Securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 62 | 103 | |
Cash and Short Term Securities | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 24 | 28 | |
Cash and Short Term Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 58 | 100 | |
Cash and Short Term Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 23 | 28 | |
Cash and Short Term Securities | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 4 | 3 | |
Cash and Short Term Securities | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 1 | 0 | |
Cash and Short Term Securities | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Cash and Short Term Securities | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 20 | 19 | |
Equity Securities, Non-U.S. Companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 20 | 19 | |
Equity Securities, Non-U.S. Companies | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Non-U.S. Companies | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 38 | 6 | |
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 59 | 121 | |
Total plan assets, fair value | 134 | 17 | |
Equity Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 16 | 17 | |
Equity Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 118 | 0 | |
Equity Securities, Mutual Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 0 | 0 | |
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Mutual Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 21 | 57 | |
Total plan assets, fair value | 3 | 3 | |
Equity Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 3 | 3 | |
Equity Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Equity Securities, Partnership Interests | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 263 | 295 | |
Equity Securities, Partnership Interests | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 0 | 0 | |
Debt Securities, Corporate Bonds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2,707 | 2,413 | |
Debt Securities, Corporate Bonds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 154 | 154 | |
Debt Securities, Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Corporate Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 13 | 14 | |
Debt Securities, Corporate Bonds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2,707 | 2,413 | |
Debt Securities, Corporate Bonds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 141 | 140 | |
Debt Securities, Corporate Bonds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Corporate Bonds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Government Bonds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 968 | 1,091 | |
Debt Securities, Government Bonds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2,148 | 2,093 | |
Debt Securities, Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Government Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 68 | 67 | |
Debt Securities, Government Bonds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 968 | 1,091 | |
Debt Securities, Government Bonds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2,080 | 2,026 | |
Debt Securities, Government Bonds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Government Bonds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | (777) | (719) | |
Debt Securities, Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | (777) | (719) | |
Debt Securities, Repurchase Agreements | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Repurchase Agreements | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Asset Backed Securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 63 | 158 | |
Debt Securities, Asset Backed Securities | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 30 | 11 | |
Debt Securities, Asset Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Asset Backed Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2 | 2 | |
Debt Securities, Asset Backed Securities | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 63 | 158 | |
Debt Securities, Asset Backed Securities | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 28 | 2 | |
Debt Securities, Asset Backed Securities | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Asset Backed Securities | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 7 | |
Debt Securities, Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 697 | 714 | |
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 471 | 431 | |
Total plan assets, fair value | 9 | 9 | |
Debt Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Commingled Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Commingled Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 9 | 9 | |
Debt Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Commingled Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 123 | 86 | |
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 5 | 5 | |
Total plan assets, fair value | 5 | 3 | |
Debt Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 5 | 3 | |
Debt Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Debt Securities, Mutual Funds | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Short Term Securities, Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 87 | 137 | |
Short Term Securities, Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 2 | 2 | |
Alternatives, Commingled Funds | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 0 | 0 | |
Alternatives, Commingled Funds | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 154 | 127 | |
Alternatives, Real Estate | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 0 | 0 | |
Total plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at net asset value | 59 | 69 | |
Total plan assets, fair value | 62 | 72 | |
Alternatives, Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 1 | 0 | |
Alternatives, Real Estate | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Real Estate | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 61 | 72 | 67 |
Alternatives, Insurance Contracts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2 | 2 | |
Alternatives, Insurance Contracts | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 14 | 56 | |
Alternatives, Insurance Contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Insurance Contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Insurance Contracts | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Insurance Contracts | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Insurance Contracts | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2 | 2 | |
Alternatives, Insurance Contracts | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 14 | 56 | $ 18 |
Alternatives, Other Investments | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 1 | (2) | |
Alternatives, Other Investments | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 10 | 9 | |
Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Other Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2 | 1 | |
Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 1 | (2) | |
Alternatives, Other Investments | Significant Other Observable Inputs (Level 2) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 5 | 6 | |
Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 0 | 0 | |
Alternatives, Other Investments | Significant Unobservable Inputs (Level 3) | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 3 | 2 | |
Total Investments | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 5,011 | 5,003 | |
Total Investments | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | 2,607 | 2,567 | |
Other | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | (39) | 8 | |
Other | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets, fair value | $ (100) | $ (74) |
Pension, Other Postretiremen104
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, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | $ 2,493 | $ 2,721 |
Foreign currency translation | (283) | (237) |
Ending balance | 2,507 | 2,493 |
Insurance Contracts | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 56 | |
Ending balance | 14 | 56 |
Real Estate | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 72 | |
Ending balance | 62 | 72 |
Equity Securities - Commingled Funds | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 17 | |
Ending balance | 134 | 17 |
Significant Other Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Changes in Fair Value of Pension Plan Assets Classified as Level 3 | ||
Beginning balance | 137 | |
Ending balance | 196 | 137 |
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 | 56 | 18 |
Realized gains (losses) | 3 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | |
Purchases, sales, issuances and settlements (net) | (42) | 41 |
Transfers from Level 3 | 0 | |
Foreign currency translation | (3) | (3) |
Ending balance | 14 | 56 |
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 | 72 | 67 |
Realized gains (losses) | 1 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 8 | |
Purchases, sales, issuances and settlements (net) | 0 | 0 |
Transfers from Level 3 | 0 | |
Foreign currency translation | (12) | (3) |
Ending balance | 61 | 72 |
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 | |
Realized gains (losses) | 0 | |
Purchases, sales, issuances and settlements (net) | 132 | |
Transfers from Level 3 | 0 | |
Foreign currency translation | (14) | |
Ending balance | 118 | 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 | 9 | 4 |
Realized gains (losses) | 0 | |
Unrealized (losses) gains relating to instruments still held at the reporting date | 0 | |
Purchases, sales, issuances and settlements (net) | 0 | 7 |
Transfers from Level 3 | (7) | |
Foreign currency translation | 1 | (2) |
Ending balance | $ 3 | $ 9 |
Pension, Other Postretiremen105
Pension, Other Postretirement Benefits and Savings Plans - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Curtailment gains (charges) | $ 33 | ||||||
Defined contribution plans, contribution expenses | $ 122 | $ 125 | $ 112 | ||||
Non-U.S. | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement of benefit obligation | 51 | 18 | |||||
Settlement charge | 16 | 2 | (13) | ||||
Reduction of net periodic pension cost | (64) | (84) | $ (70) | ||||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 29 | ||||||
Postretirement benefits funded status | $ (315) | $ (356) | $ (315) | ||||
Weighted average discount rate | 3.37% | 3.31% | 4.36% | ||||
Assumed weighted average long term rate of return | 3.81% | 4.12% | 5.12% | ||||
Unfunded pension plans, accumulated pension benefit obligation | 233 | $ 219 | $ 233 | ||||
Unfunded pension plans, pension benefit obligation | 256 | 239 | 256 | ||||
Unfunded pension plans, AOCL adjustment | 68 | $ 65 | 68 | ||||
Non-U.S. | Equity securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target asset allocation | 10.00% | ||||||
Non-U.S. | Fixed Income Securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target asset allocation | 80.00% | ||||||
Non-U.S. | Alternatives | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target asset allocation | 10.00% | ||||||
U.S. Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement of benefit obligation | $ 1 | 285 | |||||
Defined benefit plan, lump sum payments | 190 | ||||||
Settlement charge | 137 | 0 | 137 | $ 32 | |||
Pension contributions | 1,167 | ||||||
Reduction of net periodic pension cost | (23) | (190) | $ (107) | ||||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 112 | ||||||
Postretirement benefits funded status | (327) | $ (313) | $ (327) | ||||
Weighted average discount rate | 3.23% | 3.89% | 4.40% | ||||
Assumed weighted average long term rate of return | 5.33% | 5.00% | 5.47% | ||||
U.S. Pension Plans | Debt securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target asset allocation | 94.00% | ||||||
U.S. Pension Plans | Equity securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target asset allocation | 6.00% | ||||||
United States Postretirement Benefit Plan of US Entity | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Reduction of net periodic pension cost | $ 31 | $ 28 | $ 24 | ||||
Postretirement benefits funded status | (164) | $ (143) | $ (164) | ||||
Weighted average discount rate | 2.98% | 3.59% | 4.06% | ||||
Foreign Postretirement Benefit Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Reduction of net periodic pension cost | $ (8) | $ (8) | $ (9) | ||||
Postretirement benefits funded status | (124) | $ (147) | $ (124) | ||||
Weighted average discount rate | 6.31% | 4.89% | 6.62% | ||||
Other Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement of benefit obligation | $ 0 | $ 0 | |||||
Settlement charge | 2 | 0 | $ 0 | ||||
Reduction of net periodic pension cost | 23 | 20 | 15 | ||||
Estimated net actuarial loss that will be amortized from AOCL into benefits cost in the next year | 6 | ||||||
Estimated prior service credit that will be amortized from AOCL into benefits cost in the next year | 29 | ||||||
Postretirement benefits funded status | $ (288) | (290) | $ (288) | ||||
Minimum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contribution to funded non-U.S. pension plans in next year | 50 | ||||||
Maximum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contribution to funded non-U.S. pension plans in next year | $ 75 | ||||||
United Kingdom | Non-U.S. | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Settlement of benefit obligation | $ 41 | ||||||
Settlement charge | $ 14 | ||||||
Discretionary Contributions | U.S. Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Pension contributions | $ 907 | ||||||
Change in Assumptions for Pension Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Reduction of net periodic pension cost | $ 65 | ||||||
Amiens, France Facility Closure Curtailment | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Curtailment gains (charges) | $ 22 |
Stock Compensation Plans - Opti
Stock Compensation Plans - Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options Outstanding Activity | |||
Options outstanding, beginning of period (in shares) | 7,782,696 | ||
Options granted (in shares) | 730,349 | ||
Options exercised (in shares) | (1,057,887) | ||
Options expired (in shares) | (15,488) | ||
Options cancelled (in shares) | (266,622) | ||
Options outstanding, end of period (in shares) | 7,173,048 | 7,782,696 | |
Weighted Average Exercise Price | |||
Options outstanding weighted average exercise price, beginning of period (in dollars per share) | $ 17.15 | ||
Options granted weighted average exercise price (in dollars per share) | 29.90 | ||
Options exercised weighted average exercise price (in dollars per share) | 17.34 | ||
Options expired weighted average exercise price (in dollars per share) | 14.07 | ||
Options cancelled weighted average exercise price (in dollars per share) | 22.86 | ||
Options outstanding weighted average exercise price, end of period (in dollars per share) | $ 18.21 | $ 17.15 | |
Other Options Information | |||
Options vested and expected to vest (in shares) | 6,966,579 | ||
Options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 18 | ||
Options exercisable (in shares) | 5,296,056 | ||
Options exercisable, weighted average exercise price (in dollars per share) | $ 15.70 | ||
Options available for grant (in shares) | 7,512,420 | ||
Options outstanding, weighted average remaining contractual term | 5 years 3 months 18 days | ||
Options vested and expected to vest, weighted average remaining contractual term | 5 years 2 months 12 days | ||
Options exercisable, weighted average remaining contractual term | 4 years 3 months 18 days | ||
Options exercised, aggregate intrinsic value | $ 14 | $ 40 | $ 37 |
Options outstanding, aggregate intrinsic value | 91 | ||
Options vested and expected to vest, aggregate intrinsic value | 91 | ||
Options exercisable, aggregate intrinsic value | $ 81 |
Stock Compensation Plans - O107
Stock Compensation Plans - Option Groups Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 7,173,048 | 7,782,696 |
Options exercisable (in shares) | 5,296,056 | |
Options remaining contractual term | 5 years 3 months 18 days | |
Other options exercise price range, lower range limit (in dollars per share) | $ 6.22 | |
Other options exercise price range, upper range limit (in dollars per share) | 36.25 | |
Weighted average exercise price for options outstanding (in dollars per share) | 18.21 | $ 17.15 |
Weighted average exercise price for options exercisable (in dollars per share) | $ 15.70 | |
Remaining weighted average contractual term for options exercisable | 4 years 3 months 18 days | |
Grant Date February 22 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 676,514 | |
Options exercisable (in shares) | 5,499 | |
Options exercise price (in dollars per share) | $ 29.90 | |
Options remaining contractual term | 9 years 2 months 12 days | |
Grant Date February 23 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 611,700 | |
Options exercisable (in shares) | 160,854 | |
Options exercise price (in dollars per share) | $ 27.16 | |
Options remaining contractual term | 8 years 2 months 12 days | |
Grant Date February 24 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 424,674 | |
Options exercisable (in shares) | 214,199 | |
Options exercise price (in dollars per share) | $ 26.44 | |
Options remaining contractual term | 7 years 2 months 12 days | |
Grant Date February 28 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 1,280,205 | |
Options exercisable (in shares) | 937,835 | |
Options exercise price (in dollars per share) | $ 12.98 | |
Options remaining contractual term | 6 years 2 months 12 days | |
Grant Date February 27 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 942,736 | |
Options exercisable (in shares) | 942,736 | |
Options exercise price (in dollars per share) | $ 12.94 | |
Options remaining contractual term | 5 years 2 months 12 days | |
Grant Date February 22 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 669,305 | |
Options exercisable (in shares) | 669,305 | |
Options exercise price (in dollars per share) | $ 13.91 | |
Options remaining contractual term | 4 years 2 months 12 days | |
Grant Date February 23 2010 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 494,470 | |
Options exercisable (in shares) | 494,470 | |
Options exercise price (in dollars per share) | $ 12.74 | |
Options remaining contractual term | 3 years 2 months 12 days | |
Grant Date February 26 2009 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 438,434 | |
Options exercisable (in shares) | 438,434 | |
Options exercise price (in dollars per share) | $ 4.81 | |
Options remaining contractual term | 2 years 2 months 12 days | |
Grant Date February 21 2008 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 400,560 | |
Options exercisable (in shares) | 400,560 | |
Options exercise price (in dollars per share) | $ 26.74 | |
Options remaining contractual term | 1 year 1 month 6 days | |
Grant Date February 27 2007 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 253,706 | |
Options exercisable (in shares) | 253,706 | |
Options exercise price (in dollars per share) | $ 24.71 | |
Options remaining contractual term | 2 months 12 days | |
All Other Grant Dates | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options outstanding (in shares) | 980,744 | |
Options exercisable (in shares) | 778,458 | |
Options remaining contractual term | 5 years 3 months 18 days | |
Weighted average exercise price for options outstanding (in dollars per share) | $ 19.43 | |
Weighted average exercise price for options exercisable (in dollars per share) | $ 17.82 | |
Remaining weighted average contractual term for options exercisable | 4 years 7 months 6 days |
Stock Compensation Plans - Assu
Stock Compensation Plans - Assumptions Used (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average grant date fair value of stock options (in dollars per share) | $ 11.92 | $ 11.51 | $ 11.48 |
Black-Scholes model assumptions: | |||
Expected term (years) | 7 years 2 months 12 days | 7 years 3 months 18 days | 7 years 4 months 23 days |
Interest rate | 1.45% | 1.83% | 2.10% |
Volatility | 40.78% | 42.00% | 43.45% |
Dividend yield | 0.94% | 0.88% | 0.81% |
Stock Compensation Plans - Nonv
Stock Compensation Plans - Nonvested Share Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation | |||
Stock-based compensation expense recognized | $ 23 | $ 19 | $ 20 |
Tax benefit | (8) | (7) | (7) |
After-tax stock-based compensation expense | 15 | 12 | 13 |
Cash payments to settle SARs | 1 | 2 | 2 |
Cash received from stock option exercises | $ 17 | $ 53 | $ 39 |
Performance Share Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period (in shares) | 318,270 | ||
Units granted (in shares) | 194,108 | ||
Units vested (in shares) | (104,614) | ||
Units forfeited (in shares) | (38,461) | ||
Unvested units, end of period (in shares) | 369,303 | 318,270 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Unvested units, beginning of period (in dollars per share) | $ 28.64 | ||
Units granted (in dollars per share) | 30.95 | ||
Units vested (in dollars per share) | 29 | ||
Units forfeited (in dollars per share) | 29.38 | ||
Unvested units, end of period (in dollars per share) | $ 29.68 | $ 28.64 | |
Restricted Stock Units | |||
Summary of Activity Related to Share-based Compensation | |||
Unvested units, beginning of period (in shares) | 673,093 | ||
Units granted (in shares) | 320,283 | ||
Units vested (in shares) | (134,944) | ||
Units forfeited (in shares) | (31,973) | ||
Unvested units, end of period (in shares) | 826,459 | 673,093 | |
Weighted Average Grant Date Fair Value Related to Share-based Compensation | |||
Unvested units, beginning of period (in dollars per share) | $ 26.16 | ||
Units granted (in dollars per share) | 29.99 | ||
Units vested (in dollars per share) | 22.23 | ||
Units forfeited (in dollars per share) | 28.73 | ||
Unvested units, end of period (in dollars per share) | $ 28.14 | $ 26.16 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Potential shares of common stock issued under current stock compensation plan (in shares) | 11,000,000 | ||
Contractual term | 7 years 2 months 12 days | 7 years 3 months 18 days | 7 years 4 months 23 days |
Aggregate intrinsic value of options exercised | $ 14 | $ 40 | $ 37 |
Unearned compensation cost related to unvested portion | $ 32 | ||
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 | ||
Awards, Excluding Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares that count towards shares authorized limit per share granted (in shares) | 1.61 | ||
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 | ||
Year 1 | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Year 2 | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Year 3 | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% | ||
Year 4 | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting percentage | 25.00% |
Commitments and Contingent L111
Commitments and Contingent Liabilities - Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)claim | Dec. 31, 2015USD ($)claim | Dec. 31, 2014USD ($)claim | |
Number of claims filed | |||
Pending claims, beginning of year (in claims) | 67,400 | 73,800 | 74,000 |
New claims filed during the year (in claims) | 1,900 | 1,900 | 1,900 |
Claims settled/dismissed during the year (in claims) | (4,900) | (8,300) | (2,100) |
Pending claims, end of year (in claims) | 64,400 | 67,400 | 73,800 |
Claim payments | $ | $ 20 | $ 19 | $ 20 |
Commitments and Contingent L112
Commitments and Contingent Liabilities - Changes in Warranty Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty | ||
Warranty reserve, beginning of period | $ 17 | $ 22 |
Payments made during the period | (29) | (37) |
Expense recorded during the period | 31 | 33 |
Translation adjustment | 0 | (1) |
Warranty reserve, end of period | $ 19 | $ 17 |
Commitments and Contingent L113
Commitments and Contingent Liabilities - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($)claim | Dec. 31, 2016EUR (€)claim | Dec. 31, 2015USD ($) | Oct. 01, 2015USD ($) | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||
Liability for anticipated environmental matters | $ 55 | ||||
Liability for anticipated environment matters, current | 21 | $ 12 | |||
Workers' compensation liability | 248 | 264 | |||
Workers' compensation liability, current | 48 | 54 | |||
Indemnification asset | 35 | $ 32 | |||
Commitments on contracts that extend beyond one year | 3,100 | ||||
Off-balance sheet financial guarantees and other commitments | 40 | 49 | |||
Warranty reserve | 19 | 17 | $ 22 | ||
General Product Liability | |||||
Loss Contingencies [Line Items] | |||||
Product liability and other tort claims liability | 316 | 315 | |||
Workers' Compensation | |||||
Loss Contingencies [Line Items] | |||||
Potential workers' compensation liability in excess of recorded amount | 30 | ||||
Asbestos Related Product Liability | |||||
Loss Contingencies [Line Items] | |||||
Product liability and other tort claims liability | $ 171 | 171 | |||
Asbestos claims dismissed to date (in claims) | claim | 122,700 | 122,700 | |||
Accrued asbestos-related liability and gross payments to date | $ 517 | 497 | |||
Product liability contingency, evaluation period | 10 years | ||||
Asbestos claims receivable | $ 123 | 117 | |||
Expected percentage of asbestos claim related losses recoverable through insurance | 70.00% | 70.00% | |||
Asbestos claims receivable, current | $ 12 | 12 | |||
Limits of excess insurance policies | $ 430 | ||||
Amiens Labor Claims | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, number of plaintiffs | claim | 840 | ||||
Contingent loss | $ 123 | € 117 | |||
Workers' Compensation Claims | |||||
Loss Contingencies [Line Items] | |||||
Guarantee to insurance company | 38 | 46 | |||
Other Current Liabilities | General Product Liability | |||||
Loss Contingencies [Line Items] | |||||
Liability for anticipated environmental matters | 50 | ||||
Product liability and other tort claims liability | 49 | $ 45 | |||
Accounts Receivable | |||||
Loss Contingencies [Line Items] | |||||
Indemnification asset | 6 | ||||
Other Assets | |||||
Loss Contingencies [Line Items] | |||||
Indemnification asset | $ 29 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | Jan. 12, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Feb. 02, 2017 | Apr. 01, 2014 |
Class of Stock [Line Items] | |||||||
Preferred stock dividends paid | $ 0 | $ 0 | $ 15,000,000 | ||||
Common stock cash dividends paid | $ 82,000,000 | $ 68,000,000 | $ 60,000,000 | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.31 | $ 0.25 | $ 0.22 | ||||
Payments for repurchase of common stock | $ 500,000,000 | $ 180,000,000 | $ 234,000,000 | $ 913,000,000 | |||
Aggregate common stock repurchased (in shares) | 31,214,110 | ||||||
Average cost of aggregate common stock repurchased (in dollars per share) | $ 29.26 | ||||||
Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares converted from preferred to common stock (in shares) | 27,573,735 | ||||||
Rate of conversion from preferred to common stock (in shares) | 2.7574 | ||||||
Preferred stock dividends paid | 15,000,000 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock cash dividends paid | $ 82,000,000 | $ 68,000,000 | $ 60,000,000 | ||||
Common stock repurchased (in shares) | 16,706,392 | ||||||
Average cost of common stock repurchased (in dollars per share) | $ 29.93 | ||||||
Payments for repurchase of common stock | $ 500,000,000 | ||||||
Subsequent Event | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Cash dividends declared per common share (in dollars per share) | $ 0.1 | ||||||
Dividends declared on common stock | $ 25,000,000 | ||||||
Stock repurchase program, authorized amount | $ 2,100,000,000 | ||||||
Payments for Share Repurchases Related to Employee Stock Based Compensation | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock repurchased (in shares) | 0 |
Reclassifications out of Acc115
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 3,920 | ||
Balance at end of period | 4,507 | $ 3,920 | |
Foreign Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (946) | (894) | $ (690) |
Other comprehensive income (loss) before reclassifications | (209) | (251) | (206) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 16 | 3 |
Purchase of subsidiary shares from minority interest | (3) | (1) | |
Deconsolidation of Venezuelan subsidiary | 186 | ||
Balance at end of period | (1,155) | (946) | (894) |
Unrecognized Net Actuarial Losses and Prior Service Costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (3,071) | (3,285) | (3,278) |
Other comprehensive income (loss) before reclassifications | (62) | (68) | (112) |
Amounts reclassified from accumulated other comprehensive loss | 80 | 325 | 105 |
Purchase of subsidiary shares from minority interest | (105) | 0 | |
Deconsolidation of Venezuelan subsidiary | 62 | ||
Balance at end of period | (3,053) | (3,071) | (3,285) |
Deferred Derivative Gains (Losses) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | 7 | 12 | (1) |
Other comprehensive income (loss) before reclassifications | 8 | 15 | 13 |
Amounts reclassified from accumulated other comprehensive loss | (5) | (21) | 0 |
Purchase of subsidiary shares from minority interest | 1 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | ||
Balance at end of period | 10 | 7 | 12 |
Unrealized Investment Gains | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | 0 | 36 | 34 |
Other comprehensive income (loss) before reclassifications | 0 | (4) | 2 |
Amounts reclassified from accumulated other comprehensive loss | 0 | (32) | 0 |
Purchase of subsidiary shares from minority interest | 0 | 0 | |
Deconsolidation of Venezuelan subsidiary | 0 | ||
Balance at end of period | 0 | 0 | 36 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (4,010) | (4,131) | (3,935) |
Other comprehensive income (loss) before reclassifications | (263) | (308) | (303) |
Amounts reclassified from accumulated other comprehensive loss | 75 | 288 | 108 |
Purchase of subsidiary shares from minority interest | (107) | (1) | |
Deconsolidation of Venezuelan subsidiary | 248 | ||
Balance at end of period | $ (4,198) | $ (4,010) | $ (4,131) |
Reclassifications out of Acc116
Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | $ 10 | $ 141 | $ (286) | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ (646) | 0 | (646) | 0 |
Cost of Goods Sold | (10,972) | (12,164) | (13,906) | |
United States and Foreign Tax Expense | 77 | (232) | 1,834 | |
Minority Shareholders' Net Income | (20) | (69) | (69) | |
Goodyear Net Income | 1,264 | 307 | 2,452 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Goodyear Net Income | 75 | 536 | 108 | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 0 | 16 | 3 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | 186 | 0 | |
United States and Foreign Tax Expense | 0 | 0 | 0 | |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Minority Shareholders' Net Income | 0 | 0 | 0 | |
Accumulated Foreign Currency Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Goodyear Net Income | 0 | 202 | 3 | |
Accumulated Defined Benefit Plans Adjustment, Amortization of Prior Service and Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, Net of Tax | 96 | 103 | 115 | |
Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) due to Curtailments and Settlements Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, Net of Tax | 17 | 142 | 48 | |
Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service Cost and Unrecognized Gains and Losses due to Divestitures Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 0 | 184 | 0 | |
Accumulated Defined Benefit Plans Adjustment, Deconsolidation Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | 62 | 0 | |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, Net of Tax | 113 | 491 | 163 | |
United States and Foreign Tax Expense | (33) | (101) | (49) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Minority Shareholders' Net Income | 0 | (3) | (9) | |
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] | ||||
Goodyear Net Income | 80 | 387 | 105 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Goods Sold | (6) | (28) | 0 | |
United States and Foreign Tax Expense | 1 | 3 | 1 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Minority Shareholders' Net Income | 0 | 4 | (1) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Goodyear Net Income | (5) | (21) | 0 | |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (Income) Expense | 0 | (30) | 0 | |
United States and Foreign Tax Expense | 0 | (2) | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Minority Shareholders' Net Income | 0 | 0 | 0 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Goodyear Net Income | $ 0 | $ (32) | $ 0 |
Consolidating Financial Info117
Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||||
Cash and Cash Equivalents | $ 1,132 | $ 1,476 | $ 2,161 | $ 2,996 |
Accounts Receivable | 1,769 | 2,033 | ||
Accounts Receivable From Affiliates | 0 | 0 | ||
Inventories | 2,627 | 2,464 | ||
Prepaid Expenses and Other Current Assets | 190 | 153 | ||
Total Current Assets | 5,718 | 6,126 | ||
Goodwill | 535 | 555 | 601 | |
Intangible Assets | 136 | 138 | ||
Deferred Income Taxes | 2,414 | 2,141 | ||
Other Assets | 668 | 654 | ||
Investments in Subsidiaries | 0 | 0 | ||
Property, Plant and Equipment | 7,040 | 6,777 | ||
Total Assets | 16,511 | 16,391 | 18,000 | |
Current Liabilities: | ||||
Accounts Payable-Trade | 2,589 | 2,769 | ||
Accounts Payable to Affiliates | 0 | 0 | ||
Compensation and Benefits | 584 | 666 | ||
Other Current Liabilities | 963 | 886 | ||
Notes Payable and Overdrafts | 245 | 49 | ||
Long Term Debt and Capital Leases Due Within One Year | 436 | 585 | ||
Total Current Liabilities | 4,817 | 4,955 | ||
Long Term Debt and Capital Leases | 4,798 | 5,074 | ||
Compensation and Benefits | 1,460 | 1,468 | ||
Deferred Income Taxes | 85 | 91 | ||
Other Long Term Liabilities | 626 | 661 | ||
Total Liabilities | 11,786 | 12,249 | ||
Commitments and Contingent Liabilities | ||||
Goodyear Shareholders’ Equity | ||||
Common Stock | 252 | 267 | ||
Other Equity | 4,255 | 3,653 | ||
Goodyear Shareholders’ Equity | 4,507 | 3,920 | ||
Minority Shareholders’ Equity — Nonredeemable | 218 | 222 | ||
Total Shareholders’ Equity | 4,725 | 4,142 | ||
Total Liabilities and Shareholders’ Equity | 16,511 | 16,391 | ||
Reportable Legal Entities | Parent Company | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 185 | 354 | 674 | 1,269 |
Accounts Receivable | 562 | 814 | ||
Accounts Receivable From Affiliates | 0 | 0 | ||
Inventories | 1,336 | 1,199 | ||
Prepaid Expenses and Other Current Assets | 57 | 42 | ||
Total Current Assets | 2,140 | 2,409 | ||
Goodwill | 0 | 0 | ||
Intangible Assets | 118 | 118 | ||
Deferred Income Taxes | 2,010 | 2,049 | ||
Other Assets | 222 | 216 | ||
Investments in Subsidiaries | 4,646 | 4,088 | ||
Property, Plant and Equipment | 2,454 | 2,377 | ||
Total Assets | 11,590 | 11,257 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 887 | 1,002 | ||
Accounts Payable to Affiliates | 706 | 540 | ||
Compensation and Benefits | 353 | 411 | ||
Other Current Liabilities | 346 | 328 | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 6 | 6 | ||
Total Current Liabilities | 2,298 | 2,287 | ||
Long Term Debt and Capital Leases | 3,685 | 3,796 | ||
Compensation and Benefits | 676 | 725 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Long Term Liabilities | 424 | 529 | ||
Total Liabilities | 7,083 | 7,337 | ||
Commitments and Contingent Liabilities | ||||
Goodyear Shareholders’ Equity | ||||
Common Stock | 252 | 267 | ||
Other Equity | 4,255 | 3,653 | ||
Goodyear Shareholders’ Equity | 4,507 | 3,920 | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | 4,507 | 3,920 | ||
Total Liabilities and Shareholders’ Equity | 11,590 | 11,257 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 58 | 70 | 89 | 94 |
Accounts Receivable | 133 | 136 | ||
Accounts Receivable From Affiliates | 436 | 609 | ||
Inventories | 142 | 157 | ||
Prepaid Expenses and Other Current Assets | 3 | 3 | ||
Total Current Assets | 772 | 975 | ||
Goodwill | 24 | 24 | ||
Intangible Assets | 0 | 0 | ||
Deferred Income Taxes | 31 | 19 | ||
Other Assets | 54 | 81 | ||
Investments in Subsidiaries | 541 | 383 | ||
Property, Plant and Equipment | 335 | 216 | ||
Total Assets | 1,757 | 1,698 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 160 | 189 | ||
Accounts Payable to Affiliates | 0 | 0 | ||
Compensation and Benefits | 27 | 29 | ||
Other Current Liabilities | 9 | 16 | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 0 | 0 | ||
Total Current Liabilities | 196 | 234 | ||
Long Term Debt and Capital Leases | 0 | 0 | ||
Compensation and Benefits | 104 | 97 | ||
Deferred Income Taxes | 1 | 1 | ||
Other Long Term Liabilities | 13 | 15 | ||
Total Liabilities | 314 | 347 | ||
Commitments and Contingent Liabilities | ||||
Goodyear Shareholders’ Equity | ||||
Common Stock | 0 | 0 | ||
Other Equity | 1,443 | 1,351 | ||
Goodyear Shareholders’ Equity | 1,443 | 1,351 | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | 1,443 | 1,351 | ||
Total Liabilities and Shareholders’ Equity | 1,757 | 1,698 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 889 | 1,052 | 1,398 | 1,633 |
Accounts Receivable | 1,074 | 1,083 | ||
Accounts Receivable From Affiliates | 270 | 0 | ||
Inventories | 1,178 | 1,152 | ||
Prepaid Expenses and Other Current Assets | 130 | 105 | ||
Total Current Assets | 3,541 | 3,392 | ||
Goodwill | 391 | 407 | ||
Intangible Assets | 18 | 20 | ||
Deferred Income Taxes | 373 | 73 | ||
Other Assets | 387 | 350 | ||
Investments in Subsidiaries | 0 | 0 | ||
Property, Plant and Equipment | 4,279 | 4,213 | ||
Total Assets | 8,989 | 8,455 | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 1,542 | 1,578 | ||
Accounts Payable to Affiliates | 0 | 69 | ||
Compensation and Benefits | 204 | 226 | ||
Other Current Liabilities | 611 | 547 | ||
Notes Payable and Overdrafts | 245 | 49 | ||
Long Term Debt and Capital Leases Due Within One Year | 430 | 579 | ||
Total Current Liabilities | 3,032 | 3,048 | ||
Long Term Debt and Capital Leases | 1,113 | 1,278 | ||
Compensation and Benefits | 680 | 646 | ||
Deferred Income Taxes | 84 | 92 | ||
Other Long Term Liabilities | 188 | 119 | ||
Total Liabilities | 5,097 | 5,183 | ||
Commitments and Contingent Liabilities | ||||
Goodyear Shareholders’ Equity | ||||
Common Stock | 0 | 0 | ||
Other Equity | 3,674 | 3,050 | ||
Goodyear Shareholders’ Equity | 3,674 | 3,050 | ||
Minority Shareholders’ Equity — Nonredeemable | 218 | 222 | ||
Total Shareholders’ Equity | 3,892 | 3,272 | ||
Total Liabilities and Shareholders’ Equity | 8,989 | 8,455 | ||
Consolidating Entries and Eliminations | ||||
Current Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts Receivable | 0 | 0 | ||
Accounts Receivable From Affiliates | (706) | (609) | ||
Inventories | (29) | (44) | ||
Prepaid Expenses and Other Current Assets | 0 | 3 | ||
Total Current Assets | (735) | (650) | ||
Goodwill | 120 | 124 | ||
Intangible Assets | 0 | 0 | ||
Deferred Income Taxes | 0 | 0 | ||
Other Assets | 5 | 7 | ||
Investments in Subsidiaries | (5,187) | (4,471) | ||
Property, Plant and Equipment | (28) | (29) | ||
Total Assets | (5,825) | (5,019) | ||
Current Liabilities: | ||||
Accounts Payable-Trade | 0 | 0 | ||
Accounts Payable to Affiliates | (706) | (609) | ||
Compensation and Benefits | 0 | 0 | ||
Other Current Liabilities | (3) | (5) | ||
Notes Payable and Overdrafts | 0 | 0 | ||
Long Term Debt and Capital Leases Due Within One Year | 0 | 0 | ||
Total Current Liabilities | (709) | (614) | ||
Long Term Debt and Capital Leases | 0 | 0 | ||
Compensation and Benefits | 0 | 0 | ||
Deferred Income Taxes | 0 | (2) | ||
Other Long Term Liabilities | 1 | (2) | ||
Total Liabilities | (708) | (618) | ||
Commitments and Contingent Liabilities | ||||
Goodyear Shareholders’ Equity | ||||
Common Stock | 0 | 0 | ||
Other Equity | (5,117) | (4,401) | ||
Goodyear Shareholders’ Equity | (5,117) | (4,401) | ||
Minority Shareholders’ Equity — Nonredeemable | 0 | 0 | ||
Total Shareholders’ Equity | (5,117) | (4,401) | ||
Total Liabilities and Shareholders’ Equity | $ (5,825) | $ (5,019) |
Consolidating Financial Info118
Consolidating Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidating Statement of Operations | ||||
Net Sales | $ 15,158 | $ 16,443 | $ 18,138 | |
Cost of Goods Sold | 10,972 | 12,164 | 13,906 | |
Selling, Administrative and General Expense | 2,407 | 2,614 | 2,720 | |
Rationalizations | 210 | 114 | 95 | |
Interest Expense | 372 | 438 | 444 | |
Loss on Deconsolidation of Venezuelan Subsidiary | $ 646 | 0 | 646 | 0 |
Other (Income) Expense | (10) | (141) | 286 | |
Income before Income Taxes | 1,207 | 608 | 687 | |
United States and Foreign Tax (Benefit) Expense | (77) | 232 | (1,834) | |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | |
Net Income | 1,284 | 376 | 2,521 | |
Less: Minority Shareholders’ Net Income | 20 | 69 | 69 | |
Goodyear Net Income | 1,264 | 307 | 2,452 | |
Less: Preferred Stock Dividends | 0 | 0 | 7 | |
Goodyear Net Income available to Common Shareholders | 1,264 | 307 | 2,445 | |
Comprehensive Income | 1,084 | 541 | 2,277 | |
Less: Comprehensive Income Attributable to Minority Shareholders | 8 | 6 | 20 | |
Goodyear Comprehensive Income | 1,076 | 535 | 2,257 | |
Reportable Legal Entities | Parent Company | ||||
Consolidating Statement of Operations | ||||
Net Sales | 6,982 | 7,566 | 7,915 | |
Cost of Goods Sold | 5,147 | 5,804 | 6,457 | |
Selling, Administrative and General Expense | 955 | 1,053 | 916 | |
Rationalizations | 20 | 13 | (6) | |
Interest Expense | 276 | 339 | 342 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 374 | |||
Other (Income) Expense | (45) | (455) | (101) | |
Income before Income Taxes | 629 | 438 | 307 | |
United States and Foreign Tax (Benefit) Expense | 104 | 104 | (2,026) | |
Equity in Earnings (Loss) of Subsidiaries | 739 | (27) | 119 | |
Net Income | 1,264 | 307 | 2,452 | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | 1,264 | 307 | 2,452 | |
Less: Preferred Stock Dividends | 7 | |||
Goodyear Net Income available to Common Shareholders | 2,445 | |||
Comprehensive Income | 1,076 | 535 | 2,257 | |
Less: Comprehensive Income Attributable to Minority Shareholders | 0 | 0 | 0 | |
Goodyear Comprehensive Income | 1,076 | 535 | 2,257 | |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Consolidating Statement of Operations | ||||
Net Sales | 1,774 | 2,129 | 2,487 | |
Cost of Goods Sold | 1,632 | 1,915 | 2,237 | |
Selling, Administrative and General Expense | 151 | 172 | 166 | |
Rationalizations | 0 | 0 | 0 | |
Interest Expense | 12 | 22 | 26 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | |||
Other (Income) Expense | 0 | (13) | (11) | |
Income before Income Taxes | (21) | 33 | 69 | |
United States and Foreign Tax (Benefit) Expense | (7) | 10 | 14 | |
Equity in Earnings (Loss) of Subsidiaries | 122 | 19 | 28 | |
Net Income | 108 | 42 | 83 | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | 108 | 42 | 83 | |
Less: Preferred Stock Dividends | 0 | |||
Goodyear Net Income available to Common Shareholders | 83 | |||
Comprehensive Income | 38 | 54 | 89 | |
Less: Comprehensive Income Attributable to Minority Shareholders | 0 | 0 | 0 | |
Goodyear Comprehensive Income | 38 | 54 | 89 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Consolidating Statement of Operations | ||||
Net Sales | 9,121 | 10,308 | 12,051 | |
Cost of Goods Sold | 6,971 | 8,090 | 9,622 | |
Selling, Administrative and General Expense | 1,302 | 1,392 | 1,645 | |
Rationalizations | 190 | 101 | 101 | |
Interest Expense | 129 | 135 | 139 | |
Loss on Deconsolidation of Venezuelan Subsidiary | 272 | |||
Other (Income) Expense | (52) | 173 | 222 | |
Income before Income Taxes | 581 | 145 | 322 | |
United States and Foreign Tax (Benefit) Expense | (180) | 112 | 174 | |
Equity in Earnings (Loss) of Subsidiaries | 0 | 0 | 0 | |
Net Income | 761 | 33 | 148 | |
Less: Minority Shareholders’ Net Income | 20 | 69 | 69 | |
Goodyear Net Income | 741 | (36) | 79 | |
Less: Preferred Stock Dividends | 0 | |||
Goodyear Net Income available to Common Shareholders | 79 | |||
Comprehensive Income | 585 | 46 | (11) | |
Less: Comprehensive Income Attributable to Minority Shareholders | 8 | 32 | 46 | |
Goodyear Comprehensive Income | 577 | 14 | (57) | |
Consolidating Entries and Eliminations | ||||
Consolidating Statement of Operations | ||||
Net Sales | (2,719) | (3,560) | (4,315) | |
Cost of Goods Sold | (2,778) | (3,645) | (4,410) | |
Selling, Administrative and General Expense | (1) | (3) | (7) | |
Rationalizations | 0 | 0 | 0 | |
Interest Expense | (45) | (58) | (63) | |
Loss on Deconsolidation of Venezuelan Subsidiary | 0 | |||
Other (Income) Expense | 87 | 154 | 176 | |
Income before Income Taxes | 18 | (8) | (11) | |
United States and Foreign Tax (Benefit) Expense | 6 | 6 | 4 | |
Equity in Earnings (Loss) of Subsidiaries | (861) | 8 | (147) | |
Net Income | (849) | (6) | (162) | |
Less: Minority Shareholders’ Net Income | 0 | 0 | 0 | |
Goodyear Net Income | (849) | (6) | (162) | |
Less: Preferred Stock Dividends | 0 | |||
Goodyear Net Income available to Common Shareholders | (162) | |||
Comprehensive Income | (615) | (94) | (58) | |
Less: Comprehensive Income Attributable to Minority Shareholders | 0 | (26) | (26) | |
Goodyear Comprehensive Income | $ (615) | $ (68) | $ (32) |
Consolidating Financial Info119
Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 39 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||||
Total Cash Flows from Operating Activities | $ 1,504 | $ 1,687 | $ 340 | ||
Cash Flows from Investing Activities: | |||||
Capital Expenditures | (996) | (983) | (923) | ||
Asset Dispositions | 35 | 62 | 18 | ||
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | $ (320) | 0 | (320) | 0 | |
Decrease (Increase) in Restricted Cash | 6 | (6) | 5 | ||
Short Term Securities Acquired | (72) | (77) | (72) | ||
Short Term Securities Redeemed | 60 | 69 | 95 | ||
Capital Contributions Received and Loans Incurred | 0 | 0 | 0 | ||
Capital Redemptions and Loans Paid | 0 | 0 | 0 | ||
Other Transactions | (6) | (7) | 26 | ||
Total Cash Flows from Investing Activities | (973) | (1,262) | (851) | ||
Cash Flows from Financing Activities: | |||||
Short Term Debt and Overdrafts Incurred | 417 | 103 | 46 | ||
Short Term Debt and Overdrafts Paid | (228) | (84) | (24) | ||
Long Term Debt Incurred | 4,988 | 2,819 | 1,842 | ||
Long Term Debt Paid | (5,433) | (3,315) | (1,555) | ||
Common Stock Issued | 13 | 53 | 39 | ||
Common Stock Repurchased | (500) | (180) | (234) | $ (913) | |
Common Stock Dividends Paid | (82) | (68) | (60) | ||
Preferred Stock Dividends Paid | 0 | 0 | (15) | ||
Capital Contributions Received and Loans Incurred | 0 | 0 | 0 | ||
Capital Redemptions and Loans Paid | 0 | 0 | 0 | ||
Intercompany Dividends Paid | 0 | 0 | 0 | ||
Transactions with Minority Interests in Subsidiaries | (11) | (9) | (49) | ||
Debt Related Costs and Other Transactions | (24) | (33) | (1) | ||
Dissolution of Global Alliance | 0 | (271) | 0 | ||
Total Cash Flows from Financing Activities | (860) | (985) | (11) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (15) | (125) | (313) | ||
Net Change in Cash and Cash Equivalents | (344) | (685) | (835) | ||
Cash and Cash Equivalents at Beginning of the Year | 1,476 | 2,161 | 2,996 | ||
Cash and Cash Equivalents at End of the Year | 1,476 | 1,132 | 1,476 | 2,161 | 1,132 |
Reportable Legal Entities | Parent Company | |||||
Cash Flows from Operating Activities: | |||||
Total Cash Flows from Operating Activities | 598 | 979 | (334) | ||
Cash Flows from Investing Activities: | |||||
Capital Expenditures | (361) | (315) | (303) | ||
Asset Dispositions | 11 | 48 | 9 | ||
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||||
Decrease (Increase) in Restricted Cash | 0 | 0 | (1) | ||
Short Term Securities Acquired | 0 | 0 | 0 | ||
Short Term Securities Redeemed | 0 | 0 | 0 | ||
Capital Contributions Received and Loans Incurred | (257) | (70) | (382) | ||
Capital Redemptions and Loans Paid | 163 | 122 | 459 | ||
Other Transactions | 0 | 0 | 13 | ||
Total Cash Flows from Investing Activities | (444) | (215) | (205) | ||
Cash Flows from Financing Activities: | |||||
Short Term Debt and Overdrafts Incurred | 0 | 55 | 22 | ||
Short Term Debt and Overdrafts Paid | (41) | (15) | (14) | ||
Long Term Debt Incurred | 2,896 | 1,736 | 601 | ||
Long Term Debt Paid | (3,016) | (2,341) | (608) | ||
Common Stock Issued | 13 | 53 | 39 | ||
Common Stock Repurchased | (500) | (180) | (234) | ||
Common Stock Dividends Paid | (82) | (68) | (60) | ||
Preferred Stock Dividends Paid | (15) | ||||
Capital Contributions Received and Loans Incurred | 576 | 90 | 457 | ||
Capital Redemptions and Loans Paid | (148) | (125) | (244) | ||
Intercompany Dividends Paid | 0 | 0 | 0 | ||
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | ||
Debt Related Costs and Other Transactions | (21) | (18) | 0 | ||
Dissolution of Global Alliance | (271) | ||||
Total Cash Flows from Financing Activities | (323) | (1,084) | (56) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 | ||
Net Change in Cash and Cash Equivalents | (169) | (320) | (595) | ||
Cash and Cash Equivalents at Beginning of the Year | 354 | 674 | 1,269 | ||
Cash and Cash Equivalents at End of the Year | 354 | 185 | 354 | 674 | 185 |
Reportable Legal Entities | Guarantor Subsidiaries | |||||
Cash Flows from Operating Activities: | |||||
Total Cash Flows from Operating Activities | 103 | 149 | 195 | ||
Cash Flows from Investing Activities: | |||||
Capital Expenditures | (116) | (119) | (19) | ||
Asset Dispositions | 0 | 0 | 2 | ||
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||||
Decrease (Increase) in Restricted Cash | 0 | 0 | 0 | ||
Short Term Securities Acquired | 0 | 0 | 0 | ||
Short Term Securities Redeemed | 0 | 0 | 0 | ||
Capital Contributions Received and Loans Incurred | 0 | 0 | 0 | ||
Capital Redemptions and Loans Paid | 0 | 0 | 0 | ||
Other Transactions | 0 | 0 | 0 | ||
Total Cash Flows from Investing Activities | (116) | (119) | (17) | ||
Cash Flows from Financing Activities: | |||||
Short Term Debt and Overdrafts Incurred | 41 | 0 | 0 | ||
Short Term Debt and Overdrafts Paid | 0 | (16) | (22) | ||
Long Term Debt Incurred | 0 | 0 | 0 | ||
Long Term Debt Paid | 0 | 0 | 0 | ||
Common Stock Issued | 0 | 0 | 0 | ||
Common Stock Repurchased | 0 | 0 | 0 | ||
Common Stock Dividends Paid | 0 | 0 | 0 | ||
Preferred Stock Dividends Paid | 0 | ||||
Capital Contributions Received and Loans Incurred | 59 | 12 | 47 | ||
Capital Redemptions and Loans Paid | (80) | (15) | 0 | ||
Intercompany Dividends Paid | (19) | (17) | (203) | ||
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | ||
Debt Related Costs and Other Transactions | 0 | 0 | 0 | ||
Dissolution of Global Alliance | 0 | ||||
Total Cash Flows from Financing Activities | 1 | (36) | (178) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | (13) | (5) | ||
Net Change in Cash and Cash Equivalents | (12) | (19) | (5) | ||
Cash and Cash Equivalents at Beginning of the Year | 70 | 89 | 94 | ||
Cash and Cash Equivalents at End of the Year | 70 | 58 | 70 | 89 | 58 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||
Cash Flows from Operating Activities: | |||||
Total Cash Flows from Operating Activities | 875 | 612 | 758 | ||
Cash Flows from Investing Activities: | |||||
Capital Expenditures | (525) | (558) | (607) | ||
Asset Dispositions | 24 | 14 | 7 | ||
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | (320) | ||||
Decrease (Increase) in Restricted Cash | 6 | (6) | 6 | ||
Short Term Securities Acquired | (72) | (77) | (72) | ||
Short Term Securities Redeemed | 60 | 69 | 95 | ||
Capital Contributions Received and Loans Incurred | (576) | (90) | (457) | ||
Capital Redemptions and Loans Paid | 148 | 125 | 244 | ||
Other Transactions | (6) | (7) | 13 | ||
Total Cash Flows from Investing Activities | (941) | (850) | (771) | ||
Cash Flows from Financing Activities: | |||||
Short Term Debt and Overdrafts Incurred | 417 | 118 | 60 | ||
Short Term Debt and Overdrafts Paid | (228) | (123) | (24) | ||
Long Term Debt Incurred | 2,092 | 1,083 | 1,241 | ||
Long Term Debt Paid | (2,417) | (974) | (947) | ||
Common Stock Issued | 0 | 0 | 0 | ||
Common Stock Repurchased | 0 | 0 | 0 | ||
Common Stock Dividends Paid | 0 | 0 | 0 | ||
Preferred Stock Dividends Paid | 0 | ||||
Capital Contributions Received and Loans Incurred | 198 | 58 | 335 | ||
Capital Redemptions and Loans Paid | (83) | (107) | (459) | ||
Intercompany Dividends Paid | (47) | (27) | (70) | ||
Transactions with Minority Interests in Subsidiaries | (11) | (9) | (49) | ||
Debt Related Costs and Other Transactions | (3) | (15) | (1) | ||
Dissolution of Global Alliance | 0 | ||||
Total Cash Flows from Financing Activities | (82) | 4 | 86 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (15) | (112) | (308) | ||
Net Change in Cash and Cash Equivalents | (163) | (346) | (235) | ||
Cash and Cash Equivalents at Beginning of the Year | 1,052 | 1,398 | 1,633 | ||
Cash and Cash Equivalents at End of the Year | 1,052 | 889 | 1,052 | 1,398 | 889 |
Consolidating Entries and Eliminations | |||||
Cash Flows from Operating Activities: | |||||
Total Cash Flows from Operating Activities | (72) | (53) | (279) | ||
Cash Flows from Investing Activities: | |||||
Capital Expenditures | 6 | 9 | 6 | ||
Asset Dispositions | 0 | 0 | 0 | ||
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary | 0 | ||||
Decrease (Increase) in Restricted Cash | 0 | 0 | 0 | ||
Short Term Securities Acquired | 0 | 0 | 0 | ||
Short Term Securities Redeemed | 0 | 0 | 0 | ||
Capital Contributions Received and Loans Incurred | 833 | 160 | 839 | ||
Capital Redemptions and Loans Paid | (311) | (247) | (703) | ||
Other Transactions | 0 | 0 | 0 | ||
Total Cash Flows from Investing Activities | 528 | (78) | 142 | ||
Cash Flows from Financing Activities: | |||||
Short Term Debt and Overdrafts Incurred | (41) | (70) | (36) | ||
Short Term Debt and Overdrafts Paid | 41 | 70 | 36 | ||
Long Term Debt Incurred | 0 | 0 | 0 | ||
Long Term Debt Paid | 0 | 0 | 0 | ||
Common Stock Issued | 0 | 0 | 0 | ||
Common Stock Repurchased | 0 | 0 | 0 | ||
Common Stock Dividends Paid | 0 | 0 | 0 | ||
Preferred Stock Dividends Paid | 0 | ||||
Capital Contributions Received and Loans Incurred | (833) | (160) | (839) | ||
Capital Redemptions and Loans Paid | 311 | 247 | 703 | ||
Intercompany Dividends Paid | 66 | 44 | 273 | ||
Transactions with Minority Interests in Subsidiaries | 0 | 0 | 0 | ||
Debt Related Costs and Other Transactions | 0 | 0 | 0 | ||
Dissolution of Global Alliance | 0 | ||||
Total Cash Flows from Financing Activities | (456) | 131 | 137 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | 0 | ||
Net Change in Cash and Cash Equivalents | 0 | 0 | 0 | ||
Cash and Cash Equivalents at Beginning of the Year | 0 | 0 | 0 | ||
Cash and Cash Equivalents at End of the Year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidating Financial Info120
Consolidating Financial Information - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Cost of purchase of subsidiary | $ 145,000,000 | |
Capitalized intercompany receivables | $ 90,000,000 | |
8.75% due 2020 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 282,000,000 | |
Interest rate, stated percentage | 8.75% | 8.75% |
Maturity date | Aug. 15, 2020 | |
7% due 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 700,000,000 | |
Interest rate, stated percentage | 7.00% | 7.00% |
Maturity date | May 15, 2022 | |
5.125% due 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 1,000,000,000 | |
Interest rate, stated percentage | 5.125% | 5.125% |
Maturity date | Nov. 15, 2023 | |
5% due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount | $ 900,000,000 | |
Interest rate, stated percentage | 5.00% | 5.00% |
Maturity date | Mar. 1, 2026 |
Schedule II Valuation and Qu121
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 105 | $ 89 | $ 99 |
Additions, charged (credited) to income | 10 | 32 | 19 |
Additions, charged (credited) to AOCL | 0 | 0 | 0 |
Deductions from reserves | (13) | (8) | (39) |
Translation adjustment during period | (1) | (8) | 10 |
Balance at end of period | 101 | 105 | 89 |
Valuation allowance — deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 621 | 632 | 2,968 |
Additions, charged (credited) to income | (309) | 31 | (2,253) |
Additions, charged (credited) to AOCL | 2 | 8 | (32) |
Deductions from reserves | 0 | (4) | 0 |
Translation adjustment during period | 12 | (46) | (51) |
Balance at end of period | $ 326 | $ 621 | $ 632 |