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Costs Associated with Rationalization Programs | 12 Months Ended
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Dec. 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 the Goodyear Forward transformation plan ("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 the roll-forward of the liability balance between periods:
(In millions) |  | Associate- Related Costs |  |  | Other Costs |  |  | Total |
Balance at December 31, 2021 |  | $ | 88 |  |  | $ | — |  |  | $ | 88 |
2022 charges |  |  | 110 |  |  |  | 28 |  |  |  | 138 |
Incurred, net of foreign currency translation of ($5) million and $0 million, respectively |  |  | (74 | ) |  |  | (26 | ) |  |  | (100 | )
Reversed to the Statement of Operations |  |  | (9 | ) |  |  | — |  |  |  | (9 | )
Balance at December 31, 2022 |  | $ | 115 |  |  | $ | 2 |  |  | $ | 117 |
2023 charges |  |  | 453 |  |  |  | 57 |  |  |  | 510 |
Incurred, net of foreign currency translation of $14 million and $0 million, respectively |  |  | (42 | ) |  |  | (43 | ) |  |  | (85 | )
Reversed to the Statement of Operations |  |  | (8 | ) |  |  | — |  |  |  | (8 | )
Balance at December 31, 2023 |  | $ | 518 |  |  | $ | 16 |  |  | $ | 534 |
2024 charges |  |  | 66 |  |  |  | 65 |  |  |  | 131 |
Incurred, net of foreign currency translation of ($24) million and ($1) million, respectively |  |  | (143 | ) |  |  | (80 | ) |  |  | (223 | )
Reversed to the Statement of Operations |  |  | (45 | ) |  |  | — |  |  |  | (45 | )
Balance at December 31, 2024 |  | $ | 396 |  |  | $ | 1 |  |  | $ | 397 |
During the third quarter of 2024, as part of the Goodyear Forward plan, we approved two rationalization plans to reduce SAG and manufacturing costs, primarily in North America and Corporate functional areas. The plans include approximately 190 net headcount reductions as of December 31, 2024. Total pre-tax charges are expected to be $9 million, substantially all of which are expected to be cash charges primarily for associate-related costs. We have approximately $4 million accrued for these plans at December 31, 2024, which is expected to be substantially paid through the first and second quarters of 2025. During the second quarter of 2024, we approved a rationalization plan to open a shared service center in Costa Rica and to exit certain Commercial Tire and Service Center (“CTSC”) locations. Total pre-tax charges are expected to be $28 million, of which $18 million are expected to be cash charges primarily for associate-related costs. Non-cash charges are expected to be $10 million, consisting of accelerated lease amortization and pension settlement costs. We have approximately $9 million accrued for this plan at December 31, 2024, which is expected to be substantially paid through the end of 2025. During the first quarter of 2024, we approved a rationalization plan in Asia Pacific to permanently close our Malaysia tire manufacturing facility as part of our strategy to improve profitability and reduce production costs. Total pre-tax charges were expected to be approximately $40 million ($20 million after minority), of which approximately $16 million were 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 approximately $3 million accrued for this plan at December 31, 2024, which is expected to be substantially paid through the first quarter of 2025. The remainder of the accrual balance at December 31, 2024 includes $258 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $94 million related to the rationalization and workforce reorganization plan in Europe, Middle East and Africa ("EMEA"), which reflects $38 million of reversals due to voluntary attrition, $5 million related to plans to reduce SAG headcount, $5 million related to the closed Amiens, France tire manufacturing facility, $4 million related to a global workforce reorganization plan to improve our cost structure, $3 million related to the closure of Cooper Tire's Melksham, United Kingdom tire manufacturing facility ("Melksham"), $1 million related to the plan to improve profitability in Australia and New Zealand, $1 million related to the plan to streamline our EMEA distribution network, and various other plans to reduce headcount and improve operating efficiency. At December 31, 2024 and December 31, 2023, $296 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:
(In millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Current Year Plans |  |  |  |  |  |  |  |  |
Associate severance and other related costs |  | $ | 30 |  |  | $ | 449 |  |  | $ | 103 |
Benefit plan curtailment and special termination benefits |  |  | — |  |  |  | 1 |  |  |  | — |
Other exit costs |  |  | 5 |  |  |  | 23 |  |  |  | 8 |
Current Year Plans - Net Charges |  | $ | 35 |  |  | $ | 473 |  |  | $ | 111 |
Prior Year Plans |  |  |  |  |  |  |  |  |
Associate severance and other related costs |  | $ | (9 | ) |  | $ | (5 | ) |  | $ | — |
Other exit costs |  |  | 60 |  |  |  | 34 |  |  |  | 18 |
Prior Year Plans - Net Charges |  | $ | 51 |  |  | $ | 29 |  |  | $ | 18 |
Total Net Charges |  | $ | 86 |  |  | $ | 502 |  |  | $ | 129 |
Asset write-off and accelerated depreciation charges, net |  | $ | 146 |  |  | $ | 36 |  |  | $ | 30 |
Substantially all of the new charges in 2024 related to future cash outflows. Current year plan charges for the year ended December 31, 2024 related to the new plans approved during 2024 that are described above. Net prior year plan charges for the year ended December 31, 2024 include $52 million related to the closures of Fulda and Fürstenwalde, $15 million related to the workforce reorganization plan in EMEA, $11 million related to the closure of Melksham, $4 million related to the closure of certain retail and warehouse locations in Americas, $3 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility ("Gadsden"), $3 million related to the global rationalization and workforce reorganization plan, $3 million related to the plan to streamline our EMEA distribution network, $2 million related to plans to reduce SAG headcount, $1 million related to a plan in South Africa, $1 million related to the integration of Cooper Tire, and reversals of $45 million primarily related to voluntary attrition in our workforce reorganization plan in EMEA. Ongoing rationalization plans had approximately $1,050 million in rationalization charges through 2024 and approximately $150 million is expected to be incurred in future periods. Approximately 950 associates will be released under new plans initiated in 2024, of which approximately 750 were released through December 31, 2024. In 2024, approximately 1,100 associates were released under plans initiated in prior years. Approximately 2,350 associates remain to be released under all ongoing rationalization plans. Rationalization activities initiated in 2023 include current year charges primarily related to the Goodyear Forward plan that resulted in the closure of certain retail and warehouse locations, primarily in the Americas, the rationalization and workforce reorganization plan in EMEA to improve our cost structure, the closures of our Fulda and Fürstenwalde tire manufacturing facilities and the plan to improve profitability in Australia and New Zealand. Net prior year plan charges recognized in the year ended December 31, 2023 incl ude $16 million related to the closure of Melksham, $9 million related to the integration of Cooper Tire, $6 million related to the permanent closure of Gadsden, $2 million related to a plan in South Africa, and $2 million related to discontinued operations in Russia. Net prior year plan charges also include reversals of $8 m illion for actions no longer needed for their originally intended purposes. Rationalization activities initiated in 2022 include current year charges primarily related to a rationalization and workforce reorganization plan as well as the plan to close Melksham. Net prior year plan charges recognized in the year ended December 31, 2022 incl ude $15 m illion related to Gadsden, $7 million related to the modernization of two of our tire manufacturing facilities in Germany and $3 million for various plans to reduce global SAG headcount. Net prior year plan char ges also include reversals o f $9 million for actions no longer needed for their originally intended purposes. Asset write-off and accelerated depreciation charges in 2024 primarily relate to plans to improve our cost structure through the announced closures of our Fulda, Fürstenwalde and Malaysia tire manufacturing facilities, as well as the closure of a development center and warehouse in the U.S. Asset write-off and accelerated depreciation charges for 2024 were primarily recorded in CGS. Asset write-off and accelerated depreciation charges in 2023 primarily related to the integration of Cooper Tire, the closure of Melksham, and the facility closures in Germany, partially offset by recoveries of previously written-off accounts receivable and other assets in Russia. Asset write-off and accelerated depreciation charges for 2023 were primarily recorded in CGS. Asset write-off and accelerated depreciation charges in 2022 primarily related to the discontinuation of our operations in Russia and a plan related to the integration of Cooper Tire. Asset write-off and accelerated depreciation charges for 2022 were primarily recorded in SAG.

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