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Costs Associated with Rationalization Programs | 3 Months Ended
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Mar. 31, 2024
Restructuring and Related Activities [Abstract] |
Costs Associated with Rationalization Programs | NOTE 3. COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS In order to improve our global competitiveness and as part of our execution of Goodyear Forward, we have implemented, and are implementing, rationalization actions to reduce high-cost and excess manufacturing capacity and operating and administrative costs. The following table presents a roll-forward of the liability balance between periods:
|  | Associate- |  |  |  |  |  |  |
(In millions) |  | Related Costs |  |  | Other Costs |  |  | Total |
Balance at December 31, 2023 |  | $ | 518 |  |  | $ | 16 |  |  | $ | 534 |
2024 Charges |  |  | 12 |  |  |  | 11 |  |  |  | 23 |
Incurred, net of foreign currency translation of ($11) million and $0 million, respectively |  |  | (55 | ) |  |  | (11 | ) |  |  | (66 | )
Reversed to the Statement of Operations |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Balance at March 31, 2024 |  | $ | 474 |  |  | $ | 16 |  |  | $ | 490 |
In March 2024, we approved a rationalization plan in Asia Pacific to permanently close our Malaysia tire manufacturing facility by the end of 2024 as part of our strategy to improve profitability and reduce production costs. The plan will result in the permanent reduction of approximately 550 positions. Total pre-tax charges are expected to be approximately $40 million ($20 million after minority), of which approximately $16 million are expected to be cash charges primarily for associate-related and other exit costs, with the remainder representing non-cash charges primarily for accelerated depreciation. We have accrued approximately $10 million ($5 million after minority) for this plan at March 31, 2024, which is expected to be substantially paid during the second quarter of 2024. The remainder of the accrual balance at March 31, 2024 includes $244 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $160 million related to the rationalization and workforce reorganization plan in EMEA, $18 million related to the plan to improve profitability in Australia and New Zealand, $18 million related to the plan to streamline our EMEA distribution network, $11 million related to plans to reduce Selling, Administrative and General expense ("SAG") headcount, $10 million related to the closure of Cooper Tire's Melksham, United Kingdom manufacturing facility ("Melksham"), $5 million related to the closed Amiens, France tire manufacturing facility, $4 million related to the plan to reduce costs associated with our global operations and technology organization, $3 million related to our global workforce reorganization plan to improve our cost structure, and various other plans to reduce headcount and improve operating efficiency. At March 31, 2024 and December 31, 2023, $225 million and $239 million were recorded in Other Current Liabilities in the Consolidated Balance Sheets, respectively. The following table shows net rationalization charges included in Income (Loss) before Income Taxes:
|  | Three Months Ended |
|  | March 31, |
(In millions) |  | 2024 |  |  | 2023 |
Current Year Plans |  |  |  |  |  |
Associate Severance and Other Related Costs |  | $ | 10 |  |  | $ | 7 |
Other Exit Costs |  |  | — |  |  |  | 13 |
Current Year Plans - Net Charges |  | $ | 10 |  |  | $ | 20 |
Prior Year Plans |  |  |  |  |  |
Associate Severance and Other Related Costs |  | $ | 1 |  |  | $ | 4 |
Other Exit Costs |  |  | 11 |  |  |  | 8 |
Prior Year Plans - Net Charges |  | $ | 12 |  |  | $ | 12 |
Total Net Charges |  | $ | 22 |  |  | $ | 32 |
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net |  | $ | 51 |  |  | $ | 2 |
Substantially all of the new charges for the three months ended March 31, 2024 and 2023 relate to future cash outflows. Net current year plan charges for the three months ended March 31, 2024 primarily relate to the closure of our tire manufacturing facility in Malaysia. Net current year plan charges for the three months ended March 31, 2023 relate to the plan to streamline our EMEA distribution network and the plan to reduce manufacturing staffing levels and capacity in EMEA. Net prior year plan charges for the three months ended March 31, 2024 include $4 million related to the closure of Melksham, $2 million related to the closure of Fulda and Fürstenwalde, $2 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility ("Gadsden"), $1 million related to our global workforce reorganization plan to improve our cost structure, $1 million related to the rationalization and workforce reorganization plan in EMEA, $1 million related to the plan in Australia and New Zealand, $1 million related to the closure of certain retail and warehouse locations in Americas, and reversals of $1 million for actions no longer needed for their originally intended purpose. Net prior year plan charges for the three months ended March 31, 2023 included $4 million for various plans to reduce global SAG headcount, $3 million related to the permanent closure of Gadsden, $2 million related to the closure of Melksham, $2 million related to discontinued operations in Russia, and reversals of $2 million for actions no longer needed for their originally intended purpose. Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for the three months ended March 31, 2024 primarily relate to plans to improve our cost structure through announced closures of a development center in the U.S. and certain plants and facilities globally. Ongoing rationalization plans had approximately $920 million in charges incurred prior to 2024 and have approximately $250 million in expected charges to be incurred in future periods. Approximately 550 associates will be released under plans initiated in 2024. In the first three months of 2024, approximately 250 associates were released under plans initiated in prior years. Approximately 3,550 associates remain to be released under all ongoing rationalization plans.

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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/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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