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Costs Associated with Rationalization Programs | 3 Months Ended
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Mar. 31, 2020
Restructuring And Related Activities [Abstract] |
Costs Associated with Rationalization Programs | NOTE 3. 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 Costs |  |  | Total |
Balance at December 31, 2019 |  | $ | 220 |  |  | $ | — |  |  | $ | 220 |
2020 Charges(1) |  |  | 8 |  |  |  | 5 |  |  |  | 13 |
Incurred, net of foreign currency translation of $(4) million and $0 million, respectively |  |  | (72 | ) |  |  | (5 | ) |  |  | (77 | )
Reversed to the Statement of Operations |  |  | — |  |  |  | — |  |  |  | — |
Balance at March 31, 2020 |  | $ | 156 |  |  | $ | — |  |  | $ | 156 |
(1) | Charges of $13 million in 2020 exclude a $4 million credit for benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations.
During the first quarter of 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. We have $99 million accrued related to this plan at March 31, 2020, which is expected to be substantially paid through 2022. The remainder of the accrual balance at March 31, 2020 is expected to be substantially utilized in the next 12 months and includes $20 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $14 million related to a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility, $14 million related to global plans to reduce Selling, Administrative and General Expense ("SAG") headcount and $4 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) |  | 2020 |  |  | 2019 |
Current Year Plans |  |  |  |  |  |  |  |
Associate Severance and Other Related Costs |  | $ | 2 |  |  | $ | 98 |
Benefit Plan Termination Benefits |  |  | — |  |  |  | 1 |
Other Exit Costs |  |  | — |  |  |  | 1 |
Current Year Plans - Net Charges |  | $ | 2 |  |  | $ | 100 |
Prior Year Plans |  |  |  |  |  |  |  |
Associate Severance and Other Related Costs |  | $ | 6 |  |  | $ | — |
Benefit Plan Termination Benefits |  |  | (4 | ) |  |  | — |
Other Exit Costs |  |  | 5 |  |  |  | 3 |
Prior Year Plans - Net Charges |  |  | 7 |  |  |  | 3 |
Total Net Charges |  | $ | 9 |  |  | $ | 103 |
Asset Write-off and Accelerated Depreciation Charges |  | $ | 4 |  |  | $ | — |
Substantially all of the new charges for the three months ended March 31, 2020 and 2019 related to future cash outflows. Current year plan charges for the three months ended March 31, 2019 include $93 million related to a 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 prior year plan charges for the three months ended March 31, 2020 were $7 million and included $5 million related to a plan to modernize two of our tire manufacturing facilities in Germany and $3 million related to a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility. Net prior year plan charges for the three months ended March 31, 2020 also included a curtailment credit of $4 million for one of our postretirement benefit plans, related to the exit of employees under an approved rationalization plan. 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 included reversals of $2 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $930 million in charges incurred prior to 2020 and approximately $45 million is expected to be incurred in future periods. Approximately 50 associates will be released under new plans initiated in 2020. In the first three months of 2020, approximately 600 associates were released under plans initiated in prior years. Approximately 900 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. 14, Commitments and Contingent Liabilities.

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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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