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Costs Associated with Rationalization Programs | 9 Months Ended
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Sep. 30, 2025
Restructuring and Related Activities [Abstract] |
Costs Associated with Rationalization Programs | 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 a roll-forward of the liability balance between periods:
(In millions) | Associate- Related Costs |  | Other Costs |  | Total |
Balance at December 31, 2024 | $ | 396 |  |  | $ | 1 |  |  | $ | 397 |  |
2025 Charges(1) | 120 |  |  | 51 |  |  | 171 |  |
Incurred, net of foreign currency translation of $40 million and ($1) million, respectively | (184) |  |  | (52) |  |  | (236) |  |
Reversed to the Statement of Operations | (14) |  |  | — |  |  | (14) |  |
Balance at September 30, 2025 | $ | 318 |  |  | $ | — |  |  | $ | 318 |  |
(1) Charges of $171 million exclude $4 million of benefit plan termination benefit charges recorded in Rationalizations in the Statement of Operations |
During the second quarter of 2025, we approved a plan to close our manufacturing facility in Kariega, South Africa in the EMEA business unit in the third quarter of 2025. The plan includes approximately 900 job reductions, including associates and contracted positions. The total charges associated with this action are expected to be between $100 million and $110 million, of which $45 million to $55 million are expected to be cash charges primarily for associate-related and other exit costs and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges. We have accrued approximately $6 million for this plan at September 30, 2025. During the first quarter of 2025, we approved a rationalization plan to eliminate our production of commercial tires in our Danville, Virginia tire manufacturing facility ("Danville") in order to reduce our production cost per tire in Americas. The plan includes approximately 950 job reductions, including associates and contracted positions. We expect to substantially complete this rationalization plan by the end of 2025. Total pre-tax charges are expected to be between $150 million and $160 million, of which $70 million to $80 million are expected to be cash charges primarily for associate-related and other exit costs and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation, pension termination benefit charges and other asset-related charges. We have accrued approximately $16 million for this plan at September 30, 2025. During the first quarter of 2025, we approved a plan to reduce Selling, Administrative and General expenses (“SAG”) headcount in Americas and Corporate. The plan includes approximately 80 net headcount reductions. Total estimated pre-tax charges are expected to be approximately $6 million. We have accrued approximately $1 million for this plan at September 30, 2025. The remainder of the accrual balance at September 30, 2025 includes $214 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $52 million related to a rationalization and workforce reorganization plan in EMEA, which reflects $10 million of reversals due to voluntary attrition, $6 million related to the plan to open a shared service center in Costa Rica and to exit certain Commercial Tire and Service Center locations, $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, $2 million related to plans to reduce SAG headcount, $2 million related to the closure of Cooper Tire's Melksham, United Kingdom tire manufacturing facility ("Melksham"), and various other plans to reduce headcount and improve operating efficiency. At September 30, 2025 and December 31, 2024, $248 million and $296 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 September 30, |  | Nine Months Ended September 30, |
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024 |
Current Year Plans |  |  |  |  |  |  |  |
Associate Severance and Other Related Costs | $ | 6 |  |  | $ | 6 |  |  | $ | 95 |  |  | $ | 29 |  |
Benefit Plan Curtailments/Settlements/Termination Benefits | — |  |  | — |  |  | 4 |  |  | — |  |
Other Exit Costs | 2 |  |  | 1 |  |  | 8 |  |  | 2 |  |
Current Year Plans - Net Charges | $ | 8 |  |  | $ | 7 |  |  | $ | 107 |  |  | $ | 31 |  |
Prior Year Plans |  |  |  |  |  |  |  |
Associate Severance and Other Related Costs | $ | (2) |  |  | $ | (11) |  |  | $ | 11 |  |  | $ | (19) |  |
Other Exit Costs | 15 |  |  | 15 |  |  | 43 |  |  | 40 |  |
Prior Year Plans - Net Charges | $ | 13 |  |  | $ | 4 |  |  | $ | 54 |  |  | $ | 21 |  |
Total Net Charges | $ | 21 |  |  | $ | 11 |  |  | $ | 161 |  |  | $ | 52 |  |
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net | $ | 55 |  |  | $ | 25 |  |  | $ | 142 |  |  | $ | 119 |  |
Substantially all of the new charges for the three and nine months ended September 30, 2025 and 2024 relate to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2025 primarily relate to the plans approved during the first and second quarter of 2025 described above. Net current year plan charges for the nine months ended September 30, 2025 also include a $4 million termination benefits charge for one of our defined benefit pension plans related to headcount reductions at Danville. Net current year plan charges for the three months ended September 30, 2024 primarily relate to the plans to reduce SAG and manufacturing headcount. Net current year plan charges for the nine months ended September 30, 2024 also include the plan to open the shared service center in Costa Rica and the closure of our tire manufacturing facility in Malaysia. Net prior year plan charges for the three months ended September 30, 2025 include $14 million related to the closures of Fulda and Fürstenwalde, $2 million related to plans to reduce SAG headcount, $1 million related to the closure of Melksham, $1 million related to our closure of certain retail and warehouse locations in Americas, and reversals of $5 million primarily related to voluntary attrition. Net prior year plan charges for the nine months ended September 30, 2025 include $44 million related to the closures of Fulda and Fürstenwalde, $7 million related to the rationalization and workforce reorganization plan in EMEA, $5 million related to plans to reduce SAG headcount, $3 million related to the closure of Melksham, $3 million related to our closure of certain retail and warehouse locations in Americas, and reversals of $14 million primarily related to voluntary attrition. Net prior year plan charges for the three months ended September 30, 2024 include $7 million related to the closures of Fulda and Fürstenwalde, $4 million related to the workforce reorganization plan in EMEA, $2 million related to the closure of Melksham, $1 million related to our closure of certain retail and warehouse locations in Americas, $1 million related to plans to reduce SAG headcount, $1 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility ("Gadsden"), and reversals of $12 million primarily related to voluntary attrition. Net prior year plan charges for the nine months ended September 30, 2024 include $15 million related to the closures of Fulda and Fürstenwalde, $9 million related to the closure of Melksham, $4 million related to the workforce reorganization plan in EMEA, $3 million related to a plan in Australia and New Zealand, $3 million related to the permanent closure of Gadsden, $3 million related to our closure of certain retail and warehouse locations in Americas, $2 million related to plans to reduce SAG headcount, $2 million related to the plan to streamline our EMEA distribution network, $1 million related to a plan in South Africa, $1 million related to the integration of Cooper Tire, and reversals of $25 million related to voluntary attrition. Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and nine months ended September 30, 2025 primarily relate to the announced closures of Fulda and Fürstenwalde, the proposed plan to close our manufacturing facility in South Africa, and the plan to reduce our production capacity at Danville. Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and nine months ended September 30, 2024 primarily relate to plans to improve our cost structure through 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. Ongoing rationalization plans had approximately $1,050 million in charges incurred prior to 2025 and have approximately $150 million in expected charges to be incurred in future periods. Approximately 1,900 associates will be released under plans initiated in 2025, of which approximately 1,650 were released through September 30, 2025. In the first nine months of 2025, approximately 1,650 associates were released under plans initiated in prior years. Approximately 950 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 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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