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Costs Associated with Rationalization Programs | 3 Months Ended
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Mar. 31, 2019
Restructuring and Related Activities [Abstract] |
COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS | COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and associate headcount. The following table shows the roll-forward of our liability between periods:
| Associate- |  |  |  |
(In millions) | Related Costs |  | Other Exit Costs |  | Total
Balance at December 31, 2018 | $ | 80 |  |  | $ | 1 |  |  | $ | 81 |
2019 Charges (1) | 100 |  |  | 4 |  |  | 104 |
Incurred, including net Foreign Currency Translation of $(3) million and $0 million, respectively | (17 | ) |  | (4 | ) |  | (21 | )
Reversed to the Statement of Operations | (2 | ) |  | — |  |  | (2 | )
Balance at March 31, 2019 | $ | 161 |  |  | $ | 1 |  |  | $ | 162 |
(1) | Charges of $104 million in 2019, exclude $1 million of benefit plan termination benefits recorded in Rationalizations in the Statement of Operations.
On March 18, 2019, we approved a plan that proposes to modernize two of our tire manufacturing facilities in Germany. The plan is in furtherance of our strategy to strengthen the competitiveness of our manufacturing footprint and increase production of premium, large-rim diameter consumer tires. The plan, which remains subject to consultation with relevant employee representative bodies, would result in approximately 1,100 job reductions as a result of changes to the layout of the plants, efficiency gains from new equipment and a reduction in the production of tires for declining, less profitable market segments. We accrued $93 million in charges related to the plan in the first quarter of 2019, which are expected to be substantially paid through 2023. The remainder of the accrual balance at March 31, 2019 is expected to be substantially utilized in the next 12 months and includes $35 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $24 million related to global plans to reduce Selling, Administrative and General Expense ("SAG") headcount and $6 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas. The following table shows net rationalization charges included in Income (Loss) before Income Taxes:
| Three Months Ended
| March 31,
(In millions) | 2019 |  | 2018
Current Year Plans |  |  |
Associate Severance and Other Related Costs | $ | 98 |  |  | $ | 31 |
Benefit Plan Termination Benefits | 1 |  |  | — |
Other Exit Costs | 1 |  |  | — |
Current Year Plans - Net Charges | $ | 100 |  |  | $ | 31 |
Prior Year Plans |  |  |
Associate Severance and Other Related Costs | $ | — |  |  | $ | (2 | )
Other Exit Costs | 3 |  |  | 8 |
Prior Year Plans - Net Charges | 3 |  |  | 6 |
Total Net Charges | $ | 103 |  |  | $ | 37 |
Asset Write-off and Accelerated Depreciation Charges | $ | — |  |  | $ | 1 |
Substantially all of the new charges for the three months ended March 31, 2019 and 2018 related to future cash outflows. Net current year plan charges for the three months ended March 31, 2019 include $93 million related to a proposed plan to modernize two of our tire manufacturing facilities in Germany and $7 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas. Net current year plan charges for the three months ended March 31, 2018 include $25 million related to a global plan to reduce SAG headcount and $6 million related to a plan to improve operating efficiency in EMEA. Net prior year plan charges for the three months ended March 31, 2019 were $3 million, primarily related to EMEA manufacturing plans. Net prior year plan charges for the three months ended March 31, 2019 also include reversals of $2 million for actions no longer needed for their originally intended purposes. Net prior year plan charges for the three months ended March 31, 2018 include $7 million related to the closure of our tire manufacturing facility in Philippsburg, Germany. Net prior year plan charges for the three months ended March 31, 2018 also include reversals of $5 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $720 million in charges incurred prior to 2019 and approximately $45 million is expected to be incurred in future periods. Approximately 1,050 associates will be released under new plans initiated in 2019, of which approximately 50 were released through March 31, 2019. In the first three months of 2019, approximately 100 associates were released under plans initiated in prior years. Approximately 1,450 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. 13, Commitments and Contingent Liabilities, in this Form 10-Q.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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