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Costs Associated with Rationalization Programs | 12 Months Ended
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Dec. 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 operating and administrative costs. 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, 2017 |  | $ | 210 |  |  | $ | 3 |  |  | $ | 213 |
2018 charges(1) |  |  | 47 |  |  |  | 17 |  |  |  | 64 |
Incurred, net of foreign currency translation of $(3) million and $0 million, respectively |  |  | (158 | ) |  |  | (19 | ) |  |  | (177 | )
Reversed to the Statement of Operations |  |  | (19 | ) |  |  | — |  |  |  | (19 | )
Balance at December 31, 2018 |  | $ | 80 |  |  | $ | 1 |  |  | $ | 81 |
2019 charges(1) |  |  | 185 |  |  |  | 19 |  |  |  | 204 |
Incurred, net of foreign currency translation of $(2) million and $0 million, respectively |  |  | (41 | ) |  |  | (20 | ) |  |  | (61 | )
Reversed to the Statement of Operations |  |  | (4 | ) |  |  | — |  |  |  | (4 | )
Balance at December 31, 2019 |  | $ | 220 |  |  | $ | — |  |  | $ | 220 |
2020 charges(1) |  |  | 129 |  |  |  | 27 |  |  |  | 156 |
Incurred, net of foreign currency translation of $12 million and $0 million, respectively |  |  | (147 | ) |  |  | (27 | ) |  |  | (174 | )
Reversed to the Statement of Operations |  |  | (2 | ) |  |  | — |  |  |  | (2 | )
Balance at December 31, 2020 |  | $ | 200 |  |  | $ | — |  |  | $ | 200 |
(1) | Charges of $156 million, $204 million and $64 million in 2020, 2019 and 2018, respectively, exclude $5 million, $5 million and $(1) million, respectively, of benefit plan curtailments and settlements recorded in Rationalizations in the Statements of Operations.
On April 17, 2020, we reached a tentative bargaining agreement, which was ratified on May 1, 2020, and subsequently permanently closed our Gadsden, Alabama tire manufacturing facility (“Gadsden”) as part of our continuing strategy to strengthen the competitiveness of our manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. The plan will result in approximately 470 job reductions. We have $32 million accrued related to this plan at December 31, 2020, which is expected to be substantially paid through 2021. During the first quarter of 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. We have $89 million accrued related to this plan at December 31, 2020, which is expected to be substantially paid through 2022. The remainder of the accrual balance at December 31, 2020 is expected to be substantially utilized in the next 12 months and includes $35 million related to the closed Amiens, France tire manufacturing facility, $11 million related to global plans to reduce SAG headcount, $9 million related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA, and $7 million related to a plan primarily to offer voluntary buy-outs to certain associates at Gadsden. The following table shows net rationalization charges included in Income (Loss) before Income Taxes:
(In millions) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current Year Plans |  |  |  |  |  |  |  |  |  |  |  |
Associate severance and other related costs |  | $ | 77 |  |  | $ | 183 |  |  | $ | 40 |
Benefit plan curtailment and special termination benefits |  |  | 9 |  |  |  | 5 |  |  |  | — |
Other exit and non-cancelable lease costs |  |  | 16 |  |  |  | 11 |  |  |  | — |
Current Year Plans - Net Charges |  | $ | 102 |  |  | $ | 199 |  |  | $ | 40 |
Prior Year Plans |  |  |  |  |  |  |  |  |  |  |  |
Associate severance and other related costs |  | $ | 50 |  |  | $ | (2 | ) |  | $ | (11 | )
Benefit plan curtailment and special termination benefits |  |  | (4 | ) |  |  | — |  |  |  | (1 | )
Other exit and non-cancelable lease costs |  |  | 11 |  |  |  | 8 |  |  |  | 16 |
Prior Year Plans - Net Charges |  | $ | 57 |  |  | $ | 6 |  |  | $ | 4 |
Total Net Charges |  | $ | 159 |  |  | $ | 205 |  |  | $ | 44 |
Asset write-off and accelerated depreciation charges |  | $ | 105 |  |  | $ | 15 |  |  | $ | 4 |
Substantially all of the new charges in 2020 related to future cash outflows. Net current year plan charges for the year ended December 31, 2020 primarily related to the permanent closure of Gadsden. Prior year plan charges recognized in the year ended December 31, 2020 include $30 million related to additional termination benefits for associates at the closed Amiens, France manufacturing facility. Refer to Note to the Consolidated Financial Statements No. 19, Commitments and Contingent Liabilities. In addition, prior year plan charges for the year ended December 31, 2020 include $19 million related to the plan to modernize two of our manufacturing facilities in Germany, $5 million related to a plan primarily to offer voluntary buy-outs to certain associates at Gadsden, a curtailment credit of $4 million for a postretirement benefit plan related to the exit of employees under an approved rationalization plan, and $3 million related to the closure of our tire manufacturing facility in Philippsburg, Germany. Prior year plan charges for the year ended December 31, 2020 also include reversals of $2 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $990 million in charges through 2020 and approximately $80 million is expected to be incurred in future periods. Approximately 800 associates will be released under new plans initiated in 2020, of which approximately 600 were released through December 31, 2020, primarily related to the permanent closure of Gadsden. In 2020, approximately 1,200 associates were released under plans initiated in prior years. Approximately 450 associates remain to be released under all ongoing rationalization plans. Rationalization activities initiated in 2019 include current year charges of $105 million related to the plan to modernize two of our manufacturing facilities in Germany, $76 million related to the Gadsden voluntary buy-out plan, and $18 million related to separate plans to reduce manufacturing headcount and improve operating efficiency in Americas and EMEA. Prior year plan charges recognized in the year ended December 31, 2019 include $10 million primarily related to EMEA manufacturing plans. Prior year plan charges for the year ended December 31, 2019 also include reversals of $4 million for actions no longer needed for their originally intended purposes. Rationalization activities initiated in 2018 include current year charges of $28 million related to a global plan to reduce SAG headcount and $13 million related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA. Current year plan charges for the year ended December 31, 2018 also include reversals of $1 million for actions no longer needed for their originally intended purposes. Prior year plan charges recognized in the year ended December 31, 2018 include charges of $15 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $3 million related to a plan to reduce manufacturing headcount in EMEA, and $3 million related to a global plan to reduce SAG headcount. Prior year plan charges for the year ended December 31, 2018 also include reversals of $18 million for actions no longer needed for their originally intended purposes. Asset write-off and accelerated depreciation charges in 2020 and 2019 primarily related to Gadsden. Asset write-off and accelerated depreciation charges in 2018 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. 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://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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