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Costs Associated with Rationalization Programs | 9 Months Ended
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Sep. 30, 2017
Restructuring and Related Activities [Abstract] |
COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS | COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and associate headcount. The following table shows the roll-forward of our liability between periods:
|  |  | Other Exit and |  |
(In millions) | Associate- |  | Non-cancelable |  |
| Related Costs |  | Lease Costs |  | Total
Balance at December 31, 2016 | $ | 214 |  |  | $ | 5 |  |  | $ | 219 |
2017 Charges (1) | 70 |  |  | 25 |  |  | 95 |
Incurred, including net Foreign Currency Translation of $23 million and $0 million, respectively | (47 | ) |  | (26 | ) |  | (73 | )
Reversed to the Statements of Operations | (7 | ) |  | — |  |  | (7 | )
Balance at September 30, 2017 | $ | 230 |  |  | $ | 4 |  |  | $ | 234 |
(1) | Charges of $95 million exclude $14 million of benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations.
Rationalization actions accrued at September 30, 2017 include $118 million related to the closure of our tire manufacturing facility in Philippsburg, Germany. The closure 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. Approximately $65 million of the accrued charges related to the closure are expected to be paid during the fourth quarter of 2017 with the remainder paid in 2018. The remainder of the accrual balance at September 30, 2017 is expected to be substantially utilized within the next 12 months and includes $36 million related to global plans to reduce SAG headcount, $30 million related to manufacturing headcount reductions in certain countries in Europe, Middle East and Africa ("EMEA"), and $17 million related to a SAG headcount reduction plan in certain countries in EMEA. The following table shows net rationalization charges included in Income before Income Taxes:
| Three Months Ended |  | Nine Months Ended
(In millions) | September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Current Year Plans |  |  |  |  |  |  |
Associate Severance and Other Related Costs | $ | 26 |  |  | $ | 128 |  |  | $ | 51 |  |  | $ | 171 |
Other Exit and Non-Cancelable Lease Costs | — |  |  | — |  |  | 1 |  |  | — |
Current Year Plans - Net Charges | $ | 26 |  |  | $ | 128 |  |  | $ | 52 |  |  | $ | 171 |
Prior Year Plans |  |  |  |  |  |  |
Associate Severance and Other Related Costs | $ | (5 | ) |  | $ | — |  |  | $ | 12 |  |  | $ | 10 |
Benefit Plan Curtailments and Settlements | 13 |  |  | 1 |  |  | 14 |  |  | — |
Other Exit and Non-Cancelable Lease Costs | 12 |  |  | 6 |  |  | 24 |  |  | 13 |
Prior Year Plans - Net Charges | 20 |  |  | 7 |  |  | 50 |  |  | 23 |
Total Net Charges | $ | 46 |  |  | $ | 135 |  |  | $ | 102 |  |  | $ | 194 |
Asset Write-off and Accelerated Depreciation Charges | $ | 10 |  |  | $ | 3 |  |  | $ | 39 |  |  | $ | 10 |
Substantially all of the new charges for the three and nine months ended September 30, 2017 and 2016 related to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2017 include charges of $25 million related to a global plan to reduce SAG headcount. Net current year plan charges for the nine months ended September 30, 2017 also include charges of $20 million related to SAG headcount reductions in certain countries in EMEA and $7 million related to a plan to improve operating efficiency in EMEA. Net current year plan charges for the three and nine months ended September 30, 2016 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany, manufacturing headcount reductions in EMEA to improve operating efficiency and a separate plan to reduce SAG headcount globally. Net prior year plan charges for the three months ended September 30, 2017 include $9 million related to the closure of our tire manufacturing facility in Philippsburg, Germany and $9 million related to a separate global plan to reduce SAG headcount. Net prior year plan charges for the nine months ended September 30, 2017 include $29 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $9 million related to a separate global plan to reduce SAG headcount and $9 million related to manufacturing headcount reductions in certain countries in EMEA. Net prior year plan charges for the three and nine months ended September 30, 2016 include charges of $2 million and $11 million, respectively, for associate severance and idle plant costs related to the closure of one of our manufacturing facilities in Amiens, France. Net charges for the three and nine months ended September 30, 2017 included reversals of $5 million and $7 million, respectively, for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $595 million in charges incurred prior to 2017 and approximately $45 million is expected to be incurred in future periods. Approximately 400 associates will be released under new plans initiated in 2017, of which approximately 100 were released through September 30, 2017. In the first nine months of 2017, approximately 1,100 associates were released under plans initiated in prior years, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. Approximately 750 associates remain to be released under all ongoing rationalization plans. Approximately 850 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note to the Consolidated Financial Statements No. 11, Commitments and Contingent Liabilities, in this Form 10-Q. Accelerated depreciation charges for the three and nine months ended September 30, 2017 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. Accelerated depreciation charges for the three and nine months ended September 30, 2016 primarily related to the closure of our Wolverhampton, U.K. mixing and retreading facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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