v3.25.4

Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the net carrying amount of goodwill allocated by segment and changes during 2025:
(In millions) | Balance at December 31, 2024 |  | Acquisitions |  | Divestitures(1) |  | Impairment |  | Translation |  | Balance at December 31, 2025
Americas | $ | 715 |  |  | $ | — |  |  | $ | (41) |  |  | $ | (674) |  |  | $ | — |  |  | $ | — |
Asia Pacific | 41 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 42 |
| $ | 756 |  |  | $ | — |  |  | $ | (41) |  |  | $ | (674) |  |  | $ | 1 |  |  | $ | 42 |
(1)The amounts reflect the goodwill allocated to the sale of the Chemical Business. The following table presents the net carrying amount of goodwill allocated by segment and changes during 2024:
(In millions) | Balance at December 31, 2023 |  | Acquisitions |  | Divestitures(1) |  | Impairment |  | Translation |  | Balance at December 31, 2024
Americas | $ | 724 |  |  | $ | — |  |  | $ | (9) |  |  | $ | — |  |  | $ | — |  |  | $ | 715 |
Asia Pacific | 57 |  |  | — |  |  | (13) |  |  | — |  |  | (3) |  |  | 41 |
| $ | 781 |  |  | $ | — |  |  | $ | (22) |  |  | $ | — |  |  | $ | (3) |  |  | $ | 756 |
(1)The amounts reflect the goodwill allocated to the sale of the OTR tire business. The following table presents information about intangible assets at December 31:
| 2025 |  | 2024
(In millions) | Gross Carrying Amount(1) |  | Accumulated Amortization /Impairment Charges / Divestitures(1)(2) |  | Net Carrying Amount |  | Gross Carrying Amount(1) |  | Accumulated Amortization /Impairment Charges / Divestitures(1)(3) |  | Net Carrying Amount
Intangible assets with indefinite lives | $ | 555 |  |  | $ | (116) |  |  | $ | 439 |  |  | $ | 680 |  |  | $ | (131) |  |  | $ | 549 |
Customer relationships | 350 |  |  | (138) |  |  | 212 |  |  | 350 |  |  | (108) |  |  | 242 |
Other intangible assets | 30 |  |  | (23) |  |  | 7 |  |  | 30 |  |  | (25) |  |  | 5 |
Trademarks and patents | 29 |  |  | (24) |  |  | 5 |  |  | 29 |  |  | (20) |  |  | 9 |
| $ | 964 |  |  | $ | (301) |  |  | $ | 663 |  |  | $ | 1,089 |  |  | $ | (284) |  |  | $ | 805 |
(1)Includes impact of foreign currency translation. (2)Includes impact of the sale of the rights to use the Dunlop brand name and related trademarks, previously included as intangible assets with indefinite lives. (3)Includes impact of the impairment recognized during 2024 against the intangible assets with indefinite lives related to the acquisition of Cooper Tire of $125 million. Intangible assets are primarily comprised of rights to use the Cooper brand names and related trademarks, Cooper Tire customer relationships, and certain other brand names and trademarks. Amortization expense for intangible assets totaled $30 million in 2025, $32 million in 2024, and $33 million in 2023. We estimate that annual amortization expense related to intangible assets will be $30 million in 2026, and an average of $27 million in 2027 through 2030. During the third quarter of 2025, we experienced continued industry disruption in Americas, which resulted in a reduction in our near-term and long-term outlook. We also experienced a decline in our market capitalization as a result of a decrease in our stock price. Our stock price has a history of volatility; however, given the decrease was sustained throughout the quarter, combined with the reduction in outlook, we viewed these events as triggering events and performed a quantitative analysis of the fair value of the North America reporting unit in our Americas segment as of September 30, 2025. We determined the estimated fair value of our North America reporting unit based on a discounted cash flow model. The most critical assumptions used in the calculation of the fair value of our North America reporting unit are the projected revenue, projected operating margin and discount rate. Based on our interim impairment test, we determined the fair value of the North America reporting unit was less than its carrying value, which resulted in a full goodwill impairment and a non-cash charge of $674 million during the third quarter of 2025. During the third quarter of 2025, after evaluating macroeconomic conditions and our current and future results of operations, including current results for our Asia Pacific business and brands associated with our indefinite-lived intangible assets, we concluded that there were no triggering events and it was not more likely than not that the fair values of our reporting unit within our Asia Pacific segment or our indefinite-lived intangible assets recorded within our Americas and Asia Pacific segments were less than their respective carrying values and, therefore, did not have any impairment of those assets. As part of our annual impairment analysis as of October 31, 2025, we completed a qualitative impairment analysis of our Asia Pacific reporting unit. After considering the results of our most recent quantitative annual testing, the capital markets environment, macroeconomic conditions, tire industry competition and trends, our results of operations, and other factors, we concluded that it was not more likely than not that the fair value of our Asia Pacific reporting unit was less than the carrying value. As part of our annual impairment analysis as of October 31, 2025, we completed a quantitative impairment analysis of our indefinite-lived intangible assets to determine if their fair values were less than their carrying amounts. Based on the results of the quantitative impairment assessments, the Company determined that no impairment was required as the estimated fair values of our indefinite-lived intangible assets exceeded or approximated their respective carrying values. We identified $435 million of indefinite-lived intangible assets related to the Cooper Tire acquisition for which the estimated fair values approximated their respective carrying values. We determined the fair value of the indefinite-lived intangible assets using the relief-from-royalty method, which calculates the cost savings associated with owning rather than licensing the assets. The most critical assumptions used in the calculation of the fair value are projected revenue, discount rate and royalty rate. The fair value of the indefinite-lived intangible assets is sensitive to differences between estimated and actual revenue, including changes in the discount rate and royalty rate used to evaluate the fair value of these assets. Although we believe our estimate of fair value is reasonable, the indefinite-lived intangible asset performance is dependent on our ability to execute our business plan. If our future financial performance falls below our expectations, or there are adverse revisions to significant assumptions, including projected revenues, discount rates or royalty rates, this could be indicative that the fair values of these indefinite-lived intangible assets has declined below their carrying values, and therefore we may need to record a material, non-cash impairment charge in a future period. We assessed the period from October 31, 2025 to December 31, 2025 and determined there were no factors that caused us to change our conclusions as of October 31, 2025. Future changes in the judgments, assumptions and estimates that are used in our impairment testing for indefinite-lived intangible assets, including discount rates, royalty rates and cash flow projections, could result in significantly different estimates of the fair values. A significant reduction in the estimated fair values could result in additional impairment charges that could adversely affect our results of operations.

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