<SEC-DOCUMENT>0001193125-18-343288.txt : 20190212
<SEC-HEADER>0001193125-18-343288.hdr.sgml : 20190212
<ACCEPTANCE-DATETIME>20181206121104
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ACCESSION NUMBER:		0001193125-18-343288
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20181206

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GOODYEAR TIRE & RUBBER CO /OH/
		CENTRAL INDEX KEY:			0000042582
		STANDARD INDUSTRIAL CLASSIFICATION:	TIRES AND INNER TUBES [3011]
		IRS NUMBER:				340253240
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1144 E MARKET ST
		CITY:			AKRON
		STATE:			OH
		ZIP:			44316
		BUSINESS PHONE:		2167962121

	MAIL ADDRESS:	
		STREET 1:		1144 E MARKET ST
		CITY:			AKRON
		STATE:			OH
		ZIP:			44316
</SEC-HEADER>
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<TYPE>CORRESP
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>THE GOODYEAR TIRE &amp; RUBBER COMPANY </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Akron, Ohio 44316-0001 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:56%; font-size:10pt; font-family:Times New Roman" ALIGN="center">December&nbsp;6, 2018 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>VIA EDGAR </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms.&nbsp;Tracey Houser </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Staff Accountant </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Manufacturing and
Construction </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549-7010
</P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">The Goodyear Tire&nbsp;&amp; Rubber Company </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Form <FONT STYLE="white-space:nowrap">10-K</FONT> for Fiscal Year Ended December&nbsp;31, 2017 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Filed February&nbsp;8, 2018 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">File <FONT STYLE="white-space:nowrap">No.&nbsp;001-01927</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Houser: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This letter is in
response to the letter, dated November&nbsp;20, 2018 (the &#147;Comment Letter&#148;), from the Division of Corporation Finance, Office of Manufacturing and Construction, of the U.S. Securities and Exchange Commission (the &#147;Commission&#148;),
to Mr.&nbsp;Darren Wells, Executive Vice President and Chief Financial Officer of The Goodyear Tire&nbsp;&amp; Rubber Company (&#147;Goodyear,&#148; the &#147;Company&#148; and &#147;we,&#148; &#147;us&#148; or &#147;our&#148;), with respect to the
above-referenced filing. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For the convenience of the Commission staff, we have repeated your comment in italics before our response. The
Company respectfully submits the following information in response to the Comment Letter. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for Fiscal
Year Ended December&nbsp;31, 2017 </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Item 7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Critical Accounting Policies </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Deferred Tax Asset
Valuation Allowance and Uncertain Income Tax Positions, page 34</U> </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><I>1.</I></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>Considering the significance of the $749&nbsp;million of foreign tax credits deferred tax assets to your
consolidated financial statements and your conclusion that your undistributed foreign earnings are indefinitely reinvested, please expand your disclosures to clearly explain to investors the specific source of foreign income you are relying on to
fully realize your foreign tax credits deferred tax assets. Please refer to comment 4 in our letter dated December&nbsp;22, 2016, and comment 2 in our letter dated February&nbsp;3, 2017, along with your corresponding letters dated January&nbsp;9,
2017, and February&nbsp;7, 2017, respectively. </I></P></TD></TR></TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For many years prior to 2015, the Company incurred losses in the U.S. for tax purposes that
offset our income from foreign sources and, as a result, created a <FONT STYLE="white-space:nowrap">build-up</FONT> of foreign tax credits (&#147;FTCs&#148;), including U.S. losses in 2013 and 2014 primarily due to deducting approximately
$2&nbsp;billion of pension contributions related to the funding of our salaried and hourly U.S. pension plans. In 2015 through 2017, we generated U.S. taxable income, excluding dividends, of approximately $1.2&nbsp;billion and our current forecasts
have U.S. profitability continuing for the foreseeable future. Due to this improvement in domestic profitability since 2014, we utilized all of our U.S. federal net operating losses as of December&nbsp;31, 2016 and began utilizing our FTC deferred
tax assets at that time. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Tax Cuts and Jobs Act (the &#147;Tax Act&#148;) enacted into law in the U.S. on December&nbsp;22, 2017
included provisions that favorably impacted the Company&#146;s ability to utilize its FTCs before they expire, such as permitting 100% (50% under prior law) of our domestic profitability to be <FONT STYLE="white-space:nowrap">re-characterized</FONT>
as foreign source income to the extent domestic losses have offset foreign source income in prior years. As disclosed in Note 6, Income Taxes (at page 74) of the Company&#146;s <FONT STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> for the fiscal
year ended December&nbsp;31, 2017, the Company had approximately $1&nbsp;billion of undistributed earnings of foreign subsidiaries that are indefinitely reinvested in property, plant and equipment and working capital and, as such, are not available
for repatriation. The Company also has undistributed earnings of foreign subsidiaries that are not indefinitely reinvested. During 2018, the Company repatriated some of these undistributed earnings primarily by intercompany dividends from its
foreign subsidiaries, including from subsidiaries in Singapore and Japan during the second quarter of 2018, and may take similar actions in the future. These actions typically lower U.S. interest expense, for example by reducing intercompany loans,
and, thus, increase U.S. profitability which can then be <FONT STYLE="white-space:nowrap">re-recharacterized</FONT> as foreign source income. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On the other hand, the Tax Act also reduced the corporate income tax rate in the U.S. from 35% to 21%, which may negatively impact our ability
to fully utilize our FTCs before they expire as there will be a corresponding decrease in U.S. tax to offset with the FTCs. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Company
will expand its disclosures to clearly identify the sources of income it is relying on to realize its FTC deferred tax assets, including the amount of undistributed earnings of foreign subsidiaries that are available for repatriation, in its <FONT
STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> for the fiscal year ended December&nbsp;31, 2018 and, to the extent FTCs remain material to the Company, in other future filings. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the Critical Accounting Policies section of MD&amp;A, when discussing deferred tax asset valuation allowances and uncertain income tax
positions, the following disclosures will be added: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;Our net deferred tax assets include approximately $xxx million of foreign tax
credits generated primarily from the receipt of foreign dividends. Our earnings and projections along with three significant sources of foreign source income provide us sufficient positive evidence to avoid setting up a valuation allowance against
these credits while also considering the negative evidence of their limited carryforward periods. Those sources of foreign source income are (1) 100% of our domestic profitability can be <FONT STYLE="white-space:nowrap">re-characterized</FONT> as
foreign source income under current U.S. tax law to the extent domestic losses have offset foreign source income in prior years, (2)&nbsp;annual net foreign source income, exclusive of dividends, primarily from royalties and (3)&nbsp;if necessary,
we can enact tax planning strategies, including the ability to capitalize research and development costs annually, accelerate income on cross border sales of inventory or raw materials to our subsidiaries and reduce U.S. interest expense by, for
example, reducing intercompany loans through repatriating </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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undistributed earnings of foreign subsidiaries that are not indefinitely reinvested, all of which would increase our domestic profitability. There is a risk that future foreign source income will
not be sufficient to fully utilize these foreign tax credits, however, we believe that it is more likely than not that the sources of foreign taxable income noted above will allow us to fully utilize our foreign tax credits prior to their various
expiration dates.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the Notes to Consolidated Financial Statements, when discussing Income Taxes, the following disclosures will
be added (additions are indicated by underline): </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">&#147;We have undistributed earnings of foreign subsidiaries <U>totaling approximately
$xxx million, including</U> approximately $xxx million for which no provision for withholding tax is required because such earnings have been or will be reinvested in property, plant and equipment and working capital. A withholding tax charge of
approximately $xxx million (net of foreign tax credits) would be required if these earnings were to be distributed.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As part of our
normal process, we are completing our annual operating plan for 2019 and forecasts of profitability for 2019 and beyond. We expect to finalize our annual operating plan and forecasts before we file our Form
<FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2018. Concurrently, we will reassess the realizability of our FTCs, considering our forecasts of future profitability and relevant macroeconomic information
available, including raw material prices and currency exchange rates, which possess a high degree of volatility and can significantly impact our profitability. If we determine that we need to establish a valuation allowance in the fourth quarter of
2018 against any of our FTCs, the proposed additional disclosures noted above, as well as other relevant disclosures, will be updated accordingly. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; * </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Please direct any questions, comments or advice of the Commission staff to the undersigned at <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">330-796-4660.</FONT></FONT> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3">Respectfully submitted,</TD></TR>
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<TD VALIGN="top" COLSPAN="3">The Goodyear Tire&nbsp;&amp; Rubber Company</TD></TR>
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<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Evan M. Scocos</P></TD></TR>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Evan M. Scocos</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Vice President and
Controller</P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">cc:&nbsp;&nbsp;&nbsp;&nbsp;Terence O&#146;Brien, U.S. Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Darren Wells, The Goodyear Tire&nbsp;&amp; Rubber Company </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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