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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Goodyear Tire and Rubber Company | NASDAQ:GT | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.10 | 0.85% | 11.84 | 11.78 | 11.98 | 11.96 | 11.69 | 11.78 | 2,627,137 | 22:29:00 |
|
Ohio
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
34-0253240
(I.R.S. Employer
Identification No.)
|
|
|
|
200 Innovation Way, Akron, Ohio
(Address of Principal Executive Offices)
|
|
44316-0001
(Zip Code)
|
Large accelerated filer
þ
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
Emerging growth company
o
|
Number of Shares of Common Stock,
Without Par Value, Outstanding at March 31, 2019: |
|
232,470,713
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
||||
Net Sales (Note 2)
|
$
|
3,598
|
|
|
$
|
3,830
|
|
Cost of Goods Sold
|
2,879
|
|
|
2,976
|
|
||
Selling, Administrative and General Expense
|
547
|
|
|
591
|
|
||
Rationalizations (Note 3)
|
103
|
|
|
37
|
|
||
Interest Expense
|
85
|
|
|
76
|
|
||
Other (Income) Expense (Note 4)
|
22
|
|
|
37
|
|
||
Income (Loss) before Income Taxes
|
(38
|
)
|
|
113
|
|
||
United States and Foreign Tax Expense (Note 5)
|
6
|
|
|
33
|
|
||
Net Income (Loss)
|
(44
|
)
|
|
80
|
|
||
Less: Minority Shareholders’ Net Income
|
17
|
|
|
5
|
|
||
Goodyear Net Income (Loss)
|
$
|
(61
|
)
|
|
$
|
75
|
|
Goodyear Net Income (Loss) — Per Share of Common Stock
|
|
|
|
||||
Basic
|
$
|
(0.26
|
)
|
|
$
|
0.31
|
|
Weighted Average Shares Outstanding (Note 6)
|
232
|
|
|
240
|
|
||
Diluted
|
$
|
(0.26
|
)
|
|
$
|
0.31
|
|
Weighted Average Shares Outstanding (Note 6)
|
232
|
|
|
244
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Net Income (Loss)
|
$
|
(44
|
)
|
|
$
|
80
|
|
Other Comprehensive Income (Loss):
|
|
|
|
||||
Foreign currency translation, net of tax of $2 in 2019 ($2 in 2018)
|
30
|
|
|
82
|
|
||
Defined benefit plans:
|
|
|
|
||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 in 2019 ($8 in 2018)
|
26
|
|
|
27
|
|
||
Decrease in net actuarial losses, net of tax of $1 in 2019 ($1 in 2018)
|
4
|
|
|
3
|
|
||
Deferred derivative gains (losses), net of tax of $0 in 2019 (($2) in 2018)
|
5
|
|
|
(4
|
)
|
||
Reclassification adjustment for amounts recognized in income, net of tax of $0 in 2019 ($1 in 2018)
|
(3
|
)
|
|
3
|
|
||
Other Comprehensive Income
|
62
|
|
|
111
|
|
||
Comprehensive Income
|
18
|
|
|
191
|
|
||
Less: Comprehensive Income Attributable to Minority Shareholders
|
17
|
|
|
7
|
|
||
Goodyear Comprehensive Income
|
$
|
1
|
|
|
$
|
184
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions, except share data)
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
860
|
|
|
$
|
801
|
|
Accounts Receivable, less Allowance — $115 ($113 in 2018)
|
2,446
|
|
|
2,030
|
|
||
Inventories:
|
|
|
|
||||
Raw Materials
|
549
|
|
|
569
|
|
||
Work in Process
|
161
|
|
|
152
|
|
||
Finished Products
|
2,230
|
|
|
2,135
|
|
||
|
2,940
|
|
|
2,856
|
|
||
Prepaid Expenses and Other Current Assets
|
246
|
|
|
238
|
|
||
Total Current Assets
|
6,492
|
|
|
5,925
|
|
||
Goodwill
|
563
|
|
|
569
|
|
||
Intangible Assets
|
136
|
|
|
136
|
|
||
Deferred Income Taxes (Note 5)
|
1,864
|
|
|
1,847
|
|
||
Other Assets
|
1,160
|
|
|
1,136
|
|
||
Operating Lease Right-of-Use Assets (Note 8)
|
862
|
|
|
—
|
|
||
Property, Plant and Equipment, less Accumulated Depreciation — $10,285 ($10,161 in 2018)
|
7,196
|
|
|
7,259
|
|
||
Total Assets
|
$
|
18,273
|
|
|
$
|
16,872
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts Payable — Trade
|
$
|
2,737
|
|
|
$
|
2,920
|
|
Compensation and Benefits (Notes 11 and 12)
|
492
|
|
|
471
|
|
||
Other Current Liabilities
|
694
|
|
|
737
|
|
||
Notes Payable and Overdrafts (Note 9)
|
495
|
|
|
410
|
|
||
Operating Lease Liabilities due Within One Year (Note 8)
|
203
|
|
|
—
|
|
||
Long Term Debt and Finance Leases due Within One Year (Notes 8 and 9)
|
466
|
|
|
243
|
|
||
Total Current Liabilities
|
5,087
|
|
|
4,781
|
|
||
Operating Lease Liabilities (Note 8)
|
667
|
|
|
—
|
|
||
Long Term Debt and Finance Leases (Notes 8 and 9)
|
5,545
|
|
|
5,110
|
|
||
Compensation and Benefits (Notes 11 and 12)
|
1,299
|
|
|
1,345
|
|
||
Deferred Income Taxes (Note 5)
|
94
|
|
|
95
|
|
||
Other Long Term Liabilities
|
550
|
|
|
471
|
|
||
Total Liabilities
|
13,242
|
|
|
11,802
|
|
||
Commitments and Contingent Liabilities (Note 13)
|
|
|
|
||||
Shareholders’ Equity:
|
|
|
|
|
|
||
Goodyear Shareholders’ Equity:
|
|
|
|
||||
Common Stock, no par value:
|
|
|
|
|
|
||
Authorized, 450 million shares, Outstanding shares — 232 million in 2019 and 2018
|
232
|
|
|
232
|
|
||
Capital Surplus
|
2,114
|
|
|
2,111
|
|
||
Retained Earnings
|
6,476
|
|
|
6,597
|
|
||
Accumulated Other Comprehensive Loss
|
(4,014
|
)
|
|
(4,076
|
)
|
||
Goodyear Shareholders’ Equity
|
4,808
|
|
|
4,864
|
|
||
Minority Shareholders’ Equity — Nonredeemable
|
223
|
|
|
206
|
|
||
Total Shareholders’ Equity
|
5,031
|
|
|
5,070
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
18,273
|
|
|
$
|
16,872
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
Minority
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
Other
|
|
Goodyear
|
|
Shareholders'
|
|
Total
|
|||||||||||||||
|
|
Common Stock
|
|
Capital
|
|
Retained
|
|
Comprehensive
|
|
Shareholders'
|
|
Equity
—
Non-
|
|
Shareholders'
|
|||||||||||||||||
(Dollars in millions, except per share amounts)
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
Redeemable
|
|
Equity
|
|||||||||||||||
Balance at December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(after deducting 46,292,384 common treasury shares)
|
|
232,171,043
|
|
|
$
|
232
|
|
|
$
|
2,111
|
|
|
$
|
6,597
|
|
|
$
|
(4,076
|
)
|
|
$
|
4,864
|
|
|
$
|
206
|
|
|
$
|
5,070
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
(61
|
)
|
|
|
|
(61
|
)
|
|
17
|
|
|
(44
|
)
|
||||||||
Foreign currency translation (net of tax of $2)
|
|
|
|
|
|
|
|
|
|
|
|
|
30
|
|
|
30
|
|
|
|
|
30
|
|
|||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax of $8)
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
26
|
|
|
|
|
26
|
|
|||||||||
Decrease in net actuarial losses (net of tax of $1)
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
4
|
|
|
|
|
4
|
|
|||||||||
Deferred derivative gains (losses) (net of tax of $0)
|
|
|
|
|
|
|
|
|
|
5
|
|
|
5
|
|
|
|
|
5
|
|
||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax of $0)
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
|
(3
|
)
|
|
|
|
(3
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
—
|
|
|
62
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
17
|
|
|
18
|
|
||||||||||||
Adoption of new accounting standards update (Note 1)
|
|
|
|
|
|
|
|
(23
|
)
|
|
|
|
(23
|
)
|
|
|
|
(23
|
)
|
||||||||||||
Stock-based compensation plans (Note 12)
|
|
|
|
|
|
4
|
|
|
|
|
|
|
4
|
|
|
|
|
4
|
|
||||||||||||
Dividends declared (Note 14)
|
|
|
|
|
|
|
|
(37
|
)
|
|
|
|
(37
|
)
|
|
|
|
(37
|
)
|
||||||||||||
Common stock issued from treasury
|
|
299,670
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|||||||||||
Balance at March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(after deducting 45,992,714 common treasury shares)
|
|
232,470,713
|
|
|
$
|
232
|
|
|
$
|
2,114
|
|
|
$
|
6,476
|
|
|
$
|
(4,014
|
)
|
|
$
|
4,808
|
|
|
$
|
223
|
|
|
$
|
5,031
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
Minority
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
Other
|
|
Goodyear
|
|
Shareholders'
|
|
Total
|
|||||||||||||||
|
|
Common Stock
|
|
Capital
|
|
Retained
|
|
Comprehensive
|
|
Shareholders'
|
|
Equity
—
Non-
|
|
Shareholders'
|
|||||||||||||||||
(Dollars in millions, except per share amounts)
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
Redeemable
|
|
Equity
|
|||||||||||||||
Balance at December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(after deducting 38,308,825 common treasury shares)
|
|
240,154,602
|
|
|
$
|
240
|
|
|
$
|
2,295
|
|
|
$
|
6,044
|
|
|
$
|
(3,976
|
)
|
|
$
|
4,603
|
|
|
$
|
247
|
|
|
$
|
4,850
|
|
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
75
|
|
|
|
|
75
|
|
|
5
|
|
|
80
|
|
||||||||
Foreign currency translation (net of tax of $2)
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
80
|
|
|
2
|
|
|
82
|
|
||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax of $8)
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
|
|
27
|
|
|
|
|
27
|
|
|||||||||
Decrease in net actuarial losses (net of tax of $1)
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
|
|
|
3
|
|
|||||||||
Deferred derivative gains (losses) (net of tax of ($2))
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
(4
|
)
|
|
|
|
(4
|
)
|
||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax of $1)
|
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
|
|
|
3
|
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
109
|
|
|
2
|
|
|
111
|
|
||||||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
184
|
|
|
7
|
|
|
191
|
|
||||||||||||
Adoption of new accounting standards updates
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
||||||||||||
Stock-based compensation plans (Note 12)
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
4
|
|
|
|
|
4
|
|
||||||||||
Repurchase of common stock (Note 14)
|
|
(850,284
|
)
|
|
(1
|
)
|
|
(24
|
)
|
|
|
|
|
|
(25
|
)
|
|
|
|
(25
|
)
|
||||||||||
Dividends declared (Note 14)
|
|
|
|
|
|
|
|
(34
|
)
|
|
|
|
(34
|
)
|
|
|
|
(34
|
)
|
||||||||||||
Common stock issued from treasury
|
|
524,564
|
|
|
1
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
1
|
|
||||||||||
Purchase of minority shares
|
|
|
|
|
|
5
|
|
|
|
|
|
|
5
|
|
|
(29
|
)
|
|
(24
|
)
|
|||||||||||
Balance at March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(after deducting 38,634,545 common treasury shares)
|
|
239,828,882
|
|
|
$
|
240
|
|
|
$
|
2,280
|
|
|
$
|
6,084
|
|
|
$
|
(3,867
|
)
|
|
$
|
4,737
|
|
|
$
|
225
|
|
|
$
|
4,962
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
||||
Net Income (Loss)
|
$
|
(44
|
)
|
|
$
|
80
|
|
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities:
|
|
|
|
||||
Depreciation and Amortization
|
193
|
|
|
199
|
|
||
Amortization and Write-Off of Debt Issuance Costs
|
4
|
|
|
3
|
|
||
Provision for Deferred Income Taxes
|
(23
|
)
|
|
(17
|
)
|
||
Net Rationalization Charges (Note 3)
|
103
|
|
|
37
|
|
||
Rationalization Payments
|
(18
|
)
|
|
(106
|
)
|
||
Net (Gains) Losses on Asset Sales (Note 4)
|
(5
|
)
|
|
2
|
|
||
Operating Lease Expense Under New Accounting Standard (Note 8)
|
74
|
|
|
—
|
|
||
Operating Lease Payments Under New Accounting Standard (Note 8)
|
(71
|
)
|
|
—
|
|
||
Pension Contributions and Direct Payments
|
(18
|
)
|
|
(21
|
)
|
||
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:
|
|
|
|
||||
Accounts Receivable
|
(425
|
)
|
|
(467
|
)
|
||
Inventories
|
(93
|
)
|
|
(81
|
)
|
||
Accounts Payable — Trade
|
(71
|
)
|
|
99
|
|
||
Compensation and Benefits
|
31
|
|
|
(16
|
)
|
||
Other Current Liabilities
|
(11
|
)
|
|
(64
|
)
|
||
Other Assets and Liabilities
|
10
|
|
|
(37
|
)
|
||
Total Cash Flows from Operating Activities
|
(364
|
)
|
|
(389
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Capital Expenditures
|
(221
|
)
|
|
(248
|
)
|
||
Short Term Securities Acquired
|
(31
|
)
|
|
(8
|
)
|
||
Short Term Securities Redeemed
|
31
|
|
|
8
|
|
||
Notes Receivable
|
(7
|
)
|
|
—
|
|
||
Other Transactions
|
(16
|
)
|
|
—
|
|
||
Total Cash Flows from Investing Activities
|
(244
|
)
|
|
(248
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Short Term Debt and Overdrafts Incurred
|
571
|
|
|
584
|
|
||
Short Term Debt and Overdrafts Paid
|
(485
|
)
|
|
(518
|
)
|
||
Long Term Debt Incurred
|
1,850
|
|
|
1,652
|
|
||
Long Term Debt Paid
|
(1,223
|
)
|
|
(1,226
|
)
|
||
Common Stock Issued
|
—
|
|
|
1
|
|
||
Common Stock Repurchased (Note 14)
|
—
|
|
|
(25
|
)
|
||
Common Stock Dividends Paid (Note 14)
|
(37
|
)
|
|
(34
|
)
|
||
Transactions with Minority Interests in Subsidiaries
|
—
|
|
|
(22
|
)
|
||
Debt Related Costs and Other Transactions
|
(31
|
)
|
|
(13
|
)
|
||
Total Cash Flows from Financing Activities
|
645
|
|
|
399
|
|
||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
—
|
|
|
16
|
|
||
Net Change in Cash, Cash Equivalents and Restricted Cash
|
37
|
|
|
(222
|
)
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period
|
873
|
|
|
1,110
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of the Period
|
$
|
910
|
|
|
$
|
888
|
|
|
Balance at
|
|
Adjustment for
|
|
Balance at
|
||||||
(In millions)
|
December 31, 2018
|
|
New Standard
|
|
January 1, 2019
|
||||||
Deferred Income Taxes — Asset
|
$
|
1,847
|
|
|
$
|
7
|
|
|
$
|
1,854
|
|
Operating Lease Right-of-Use Assets
|
—
|
|
|
882
|
|
|
882
|
|
|||
Property, Plant and Equipment, less Accumulated Depreciation
|
7,259
|
|
|
(16
|
)
|
|
7,243
|
|
|||
Operating Lease Liabilities due Within One Year
|
—
|
|
|
204
|
|
|
204
|
|
|||
Operating Lease Liabilities
|
—
|
|
|
684
|
|
|
684
|
|
|||
Long Term Debt and Finance Leases
|
5,110
|
|
|
14
|
|
|
5,124
|
|
|||
Other Long Term Liabilities
|
471
|
|
|
(6
|
)
|
|
465
|
|
|||
Retained Earnings
|
6,597
|
|
|
(23
|
)
|
|
6,574
|
|
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Cash and Cash Equivalents
|
$
|
860
|
|
|
$
|
837
|
|
Restricted Cash
|
50
|
|
|
51
|
|
||
Total Cash, Cash Equivalents and Restricted Cash
|
$
|
910
|
|
|
$
|
888
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||
|
|
|
Europe, Middle East
|
|
|
|
|
||||||||
(In millions)
|
Americas
|
|
and Africa
|
|
Asia Pacific
|
|
Total
|
||||||||
Tire unit sales
|
$
|
1,493
|
|
|
$
|
1,143
|
|
|
$
|
453
|
|
|
$
|
3,089
|
|
Other tire and related sales
|
137
|
|
|
72
|
|
|
32
|
|
|
241
|
|
||||
Retail services and service related sales
|
132
|
|
|
4
|
|
|
15
|
|
|
151
|
|
||||
Chemical
|
109
|
|
|
—
|
|
|
—
|
|
|
109
|
|
||||
Other
|
5
|
|
|
2
|
|
|
1
|
|
|
8
|
|
||||
Net Sales by reportable segment
|
$
|
1,876
|
|
|
$
|
1,221
|
|
|
$
|
501
|
|
|
$
|
3,598
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
|
|
Europe, Middle East
|
|
|
|
|
||||||||
(In millions)
|
Americas
|
|
and Africa
|
|
Asia Pacific
|
|
Total
|
||||||||
Tire unit sales
|
$
|
1,506
|
|
|
$
|
1,209
|
|
|
$
|
518
|
|
|
$
|
3,233
|
|
Other tire and related sales
|
135
|
|
|
105
|
|
|
30
|
|
|
270
|
|
||||
Retail services and service related sales
|
137
|
|
|
15
|
|
|
22
|
|
|
174
|
|
||||
Chemical
|
148
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||
Other
|
3
|
|
|
1
|
|
|
1
|
|
|
5
|
|
||||
Net Sales by reportable segment
|
$
|
1,929
|
|
|
$
|
1,330
|
|
|
$
|
571
|
|
|
$
|
3,830
|
|
|
|
||
(In millions)
|
|
||
Balance at December 31, 2018
|
$
|
78
|
|
Revenue deferred during period
|
34
|
|
|
Revenue recognized during period
|
(40
|
)
|
|
Impact of foreign currency translation
|
—
|
|
|
Balance at March 31, 2019
|
$
|
72
|
|
|
|
|
|
|
|
||||||
|
Associate-
|
|
|
|
|
||||||
(In millions)
|
Related Costs
|
|
Other Exit Costs
|
|
Total
|
||||||
Balance at December 31, 2018
|
$
|
80
|
|
|
$
|
1
|
|
|
$
|
81
|
|
2019 Charges
(1)
|
100
|
|
|
4
|
|
|
104
|
|
|||
Incurred, including net Foreign Currency Translation of $(3) million and $0 million, respectively
|
(17
|
)
|
|
(4
|
)
|
|
(21
|
)
|
|||
Reversed to the Statement of Operations
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Balance at March 31, 2019
|
$
|
161
|
|
|
$
|
1
|
|
|
$
|
162
|
|
(1)
|
Charges of
$104 million
in 2019, exclude
$1 million
of benefit plan termination benefits recorded in Rationalizations in the Statement of Operations.
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Current Year Plans
|
|
|
|
||||
Associate Severance and Other Related Costs
|
$
|
98
|
|
|
$
|
31
|
|
Benefit Plan Termination Benefits
|
1
|
|
|
—
|
|
||
Other Exit Costs
|
1
|
|
|
—
|
|
||
Current Year Plans - Net Charges
|
$
|
100
|
|
|
$
|
31
|
|
|
|
|
|
||||
Prior Year Plans
|
|
|
|
||||
Associate Severance and Other Related Costs
|
$
|
—
|
|
|
$
|
(2
|
)
|
Other Exit Costs
|
3
|
|
|
8
|
|
||
Prior Year Plans - Net Charges
|
3
|
|
|
6
|
|
||
Total Net Charges
|
$
|
103
|
|
|
$
|
37
|
|
|
|
|
|
||||
Asset Write-off and Accelerated Depreciation Charges
|
$
|
—
|
|
|
$
|
1
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Non-service related pension and other postretirement benefits cost
|
$
|
30
|
|
|
$
|
34
|
|
Financing fees and financial instruments expense
|
8
|
|
|
9
|
|
||
Net foreign currency exchange (gains) losses
|
(7
|
)
|
|
(7
|
)
|
||
General and product liability expense (income) - discontinued products
|
6
|
|
|
1
|
|
||
Royalty income
|
(5
|
)
|
|
(5
|
)
|
||
Net (gains) losses on asset sales
|
(5
|
)
|
|
2
|
|
||
Interest income
|
(3
|
)
|
|
(4
|
)
|
||
Miscellaneous (income) expense
|
(2
|
)
|
|
7
|
|
||
|
$
|
22
|
|
|
$
|
37
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions, except per share amounts)
|
2019
|
|
2018
|
||||
Earnings (loss) per share — basic:
|
|
|
|
||||
Goodyear net income (loss)
|
$
|
(61
|
)
|
|
$
|
75
|
|
Weighted average shares outstanding
|
232
|
|
|
240
|
|
||
Earnings (loss) per common share — basic
|
$
|
(0.26
|
)
|
|
$
|
0.31
|
|
|
|
|
|
||||
Earnings (loss) per share — diluted:
|
|
|
|
||||
Goodyear net income (loss)
|
$
|
(61
|
)
|
|
$
|
75
|
|
Weighted average shares outstanding
|
232
|
|
|
240
|
|
||
Dilutive effect of stock options and other dilutive securities
|
—
|
|
|
4
|
|
||
Weighted average shares outstanding — diluted
|
232
|
|
|
244
|
|
||
Earnings (loss) per common share — diluted
|
$
|
(0.26
|
)
|
|
$
|
0.31
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Sales:
|
|
|
|
||||
Americas
|
$
|
1,876
|
|
|
$
|
1,929
|
|
Europe, Middle East and Africa
|
1,221
|
|
|
1,330
|
|
||
Asia Pacific
|
501
|
|
|
571
|
|
||
Net Sales
|
$
|
3,598
|
|
|
$
|
3,830
|
|
Segment Operating Income:
|
|
|
|
||||
Americas
|
$
|
89
|
|
|
$
|
127
|
|
Europe, Middle East and Africa
|
54
|
|
|
78
|
|
||
Asia Pacific
|
47
|
|
|
76
|
|
||
Total Segment Operating Income
|
$
|
190
|
|
|
$
|
281
|
|
Less:
|
|
|
|
||||
Rationalizations
|
$
|
103
|
|
|
$
|
37
|
|
Interest expense
|
85
|
|
|
76
|
|
||
Other (income) expense (Note 4)
|
22
|
|
|
37
|
|
||
Asset write-offs and accelerated depreciation
|
—
|
|
|
1
|
|
||
Corporate incentive compensation plans
|
1
|
|
|
4
|
|
||
Intercompany profit elimination
|
(4
|
)
|
|
(3
|
)
|
||
Retained expenses of divested operations
|
3
|
|
|
3
|
|
||
Other
|
18
|
|
|
13
|
|
||
Income (Loss) before Income Taxes
|
$
|
(38
|
)
|
|
$
|
113
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Rationalizations:
|
|
|
|
||||
Americas
|
$
|
7
|
|
|
$
|
3
|
|
Europe, Middle East and Africa
|
96
|
|
|
27
|
|
||
Asia Pacific
|
—
|
|
|
3
|
|
||
Total Segment Rationalizations
|
$
|
103
|
|
|
$
|
33
|
|
Corporate
|
—
|
|
|
4
|
|
||
Total Rationalizations
|
$
|
103
|
|
|
$
|
37
|
|
|
|
|
|
||||
Net (Gains) Losses on Asset Sales:
|
|
|
|
||||
Europe, Middle East and Africa
|
$
|
(5
|
)
|
|
$
|
2
|
|
Total Net (Gains) Losses on Asset Sales
|
$
|
(5
|
)
|
|
$
|
2
|
|
Asset Write-offs and Accelerated Depreciation:
|
|
|
|
||||
Europe, Middle East and Africa
|
$
|
—
|
|
|
$
|
1
|
|
Total Asset Write-offs and Accelerated Depreciation
|
$
|
—
|
|
|
$
|
1
|
|
|
Three Months Ended
|
||
|
March 31,
|
||
(In millions)
|
2019
|
||
Operating Lease Cost
|
$
|
74
|
|
Finance Lease Cost
|
|
||
Amortization of ROU Assets
|
2
|
|
|
Interest on Lease Liabilities
|
5
|
|
|
Short Term Lease Cost
|
1
|
|
|
Variable Lease Cost
|
2
|
|
|
Sublease Income
|
(4
|
)
|
|
Total Lease Cost
|
$
|
80
|
|
|
Three Months Ended
|
||
|
March 31,
|
||
(In millions)
|
2019
|
||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
|
|
||
Operating Cash Flows for Operating Leases
|
$
|
71
|
|
Operating Cash Flows for Finance Leases
|
5
|
|
|
Financing Cash Flows for Finance Leases
|
2
|
|
|
ROU Assets Obtained in Exchange for Lease Obligations
|
|
||
Operating Leases
|
37
|
|
|
Finance Leases
|
28
|
|
|
March 31,
|
||
(In millions, except lease term and discount rate)
|
2019
|
||
Operating Leases
|
|
||
Operating Lease ROU Assets
|
$
|
862
|
|
|
|
||
Operating Lease Liabilities due Within One Year
|
$
|
203
|
|
Operating Lease Liabilities
|
667
|
|
|
Total Operating Lease Liabilities
|
$
|
870
|
|
|
|
|
|
Finance Leases
|
|
||
Property, Plant and Equipment, at cost
|
$
|
263
|
|
Accumulated Depreciation
|
52
|
|
|
Property, Plant and Equipment, net
|
$
|
211
|
|
|
|
||
Long Term Debt and Finance Leases due Within One Year
|
$
|
5
|
|
Long Term Debt and Finance Leases
|
240
|
|
|
Total Finance Lease Liabilities
|
$
|
245
|
|
|
|
||
Weighted Average Remaining Lease Term
|
|
||
Operating Leases
|
6.9 years
|
|
|
Finance Leases
|
32.4 years
|
|
|
|
|
||
Weighted Average Discount Rate
|
|
||
Operating Leases
|
6.71
|
%
|
|
Finance Leases
|
8.44
|
%
|
(In millions)
|
Operating Leases
|
|
Finance Leases
|
||||
|
|
|
|
||||
2019 (excluding the three months ended March 31)
|
$
|
190
|
|
|
$
|
19
|
|
2020
|
213
|
|
|
23
|
|
||
2021
|
162
|
|
|
34
|
|
||
2022
|
113
|
|
|
21
|
|
||
2023
|
86
|
|
|
20
|
|
||
Thereafter
|
359
|
|
|
706
|
|
||
Total Lease Payments
|
1,123
|
|
|
823
|
|
||
Less: Imputed Interest
|
253
|
|
|
578
|
|
||
Total
|
$
|
870
|
|
|
$
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 and
|
|
|
||||||||||||||
(In millions)
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Beyond
|
|
Total
|
||||||||||||||
Capital Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Minimum lease payments
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
23
|
|
|
$
|
61
|
|
Imputed interest
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
(24
|
)
|
|||||||
Present value
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
37
|
|
Operating Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Minimum lease payments
|
$
|
266
|
|
|
$
|
214
|
|
|
$
|
161
|
|
|
$
|
110
|
|
|
$
|
84
|
|
|
$
|
391
|
|
|
$
|
1,226
|
|
Minimum sublease rentals
|
(15
|
)
|
|
(12
|
)
|
|
(8
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(49
|
)
|
|||||||
|
$
|
251
|
|
|
$
|
202
|
|
|
$
|
153
|
|
|
$
|
105
|
|
|
$
|
81
|
|
|
$
|
385
|
|
|
$
|
1,177
|
|
Imputed interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(263
|
)
|
||||||||
Present value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
914
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Chinese credit facilities
|
$
|
154
|
|
|
$
|
122
|
|
Other domestic and foreign debt
|
341
|
|
|
288
|
|
||
Notes Payable and Overdrafts
|
$
|
495
|
|
|
$
|
410
|
|
Weighted average interest rate
|
7.90
|
%
|
|
8.03
|
%
|
||
|
|
|
|
||||
Chinese credit facilities
|
$
|
30
|
|
|
$
|
32
|
|
Mexican credit facilities
|
90
|
|
|
—
|
|
||
Other foreign and domestic debt (including finance leases)
|
346
|
|
|
211
|
|
||
Long Term Debt and Finance Leases due Within One Year
|
$
|
466
|
|
|
$
|
243
|
|
Weighted average interest rate
|
3.83
|
%
|
|
4.57
|
%
|
||
Total obligations due within one year
|
$
|
961
|
|
|
$
|
653
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
Interest
|
|
|
|
Interest
|
||||||
(In millions)
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||
Notes:
|
|
|
|
|
|
|
|
||||||
8.75% due 2020
|
$
|
278
|
|
|
|
|
$
|
278
|
|
|
|
||
5.125% due 2023
|
1,000
|
|
|
|
|
1,000
|
|
|
|
||||
3.75% Euro Notes due 2023
|
281
|
|
|
|
|
286
|
|
|
|
||||
5% due 2026
|
900
|
|
|
|
|
900
|
|
|
|
||||
4.875% due 2027
|
700
|
|
|
|
|
700
|
|
|
|
||||
7% due 2028
|
150
|
|
|
|
|
150
|
|
|
|
||||
Credit Facilities:
|
|
|
|
|
|
|
|
||||||
First lien revolving credit facility due 2021
|
285
|
|
|
3.66
|
%
|
|
—
|
|
|
—
|
|
||
Second lien term loan facility due 2025
|
400
|
|
|
4.49
|
%
|
|
400
|
|
|
4.46
|
%
|
||
European revolving credit facility due 2024
|
140
|
|
|
1.50
|
%
|
|
—
|
|
|
—
|
|
||
Pan-European accounts receivable facility
|
246
|
|
|
1.05
|
%
|
|
335
|
|
|
1.01
|
%
|
||
Mexican credit facilities
|
290
|
|
|
4.26
|
%
|
|
200
|
|
|
4.30
|
%
|
||
Chinese credit facilities
|
224
|
|
|
5.00
|
%
|
|
219
|
|
|
5.03
|
%
|
||
Other foreign and domestic debt
(1)
|
905
|
|
|
4.36
|
%
|
|
884
|
|
|
5.35
|
%
|
||
|
5,799
|
|
|
|
|
5,352
|
|
|
|
||||
Unamortized deferred financing fees
|
(33
|
)
|
|
|
|
(36
|
)
|
|
|
||||
|
5,766
|
|
|
|
|
5,316
|
|
|
|
||||
Finance lease obligations
(2)
|
245
|
|
|
|
|
37
|
|
|
|
||||
|
6,011
|
|
|
|
|
5,353
|
|
|
|
||||
Less portion due within one year
|
(466
|
)
|
|
|
|
(243
|
)
|
|
|
||||
|
$
|
5,545
|
|
|
|
|
$
|
5,110
|
|
|
|
(1)
|
Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions.
|
(2)
|
Includes finance lease obligations related to our Global and Americas Headquarters.
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Fair Values — Current asset (liability):
|
|
|
|
||||
Accounts receivable
|
$
|
21
|
|
|
$
|
7
|
|
Other current liabilities
|
(2
|
)
|
|
(6
|
)
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Fair Values — Current asset (liability):
|
|
|
|
||||
Accounts receivable
|
$
|
11
|
|
|
$
|
9
|
|
Other current liabilities
|
(1
|
)
|
|
(1
|
)
|
||
Fair Values — Long term asset (liability):
|
|
|
|
||||
Other assets
|
$
|
3
|
|
|
$
|
2
|
|
Other long term liabilities
|
—
|
|
|
—
|
|
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions) (Income) Expense
|
2019
|
|
2018
|
||||
Amounts deferred to AOCL
(1)
|
$
|
(5
|
)
|
|
$
|
6
|
|
Amount of deferred (gain) loss reclassified from AOCL into Cost of Goods Sold ("CGS")
(1)
|
(3
|
)
|
|
4
|
|
(1)
|
Excluded components deferred to AOCL and excluded components reclassified from AOCL to CGS for the three months ended March 31, 2019 were not material.
|
|
Total Carrying Value in the
Consolidated
Balance Sheet
|
|
Quoted Prices in Active Markets for Identical
Assets/Liabilities
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant Unobservable
Inputs
(Level 3)
|
||||||||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investments
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign Exchange Contracts
|
35
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
18
|
|
|
—
|
|
|
—
|
|
||||||||
Total Assets at Fair Value
|
$
|
45
|
|
|
$
|
28
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
35
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign Exchange Contracts
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Liabilities at Fair Value
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2019
|
|
2018
|
||||
Fixed Rate Debt:
(1)
|
|
|
|
||||
Carrying amount — liability
|
$
|
3,402
|
|
|
$
|
3,609
|
|
Fair value — liability
|
3,342
|
|
|
3,443
|
|
||
|
|
|
|
||||
Variable Rate Debt:
(1)
|
|
|
|
||||
Carrying amount — liability
|
$
|
2,364
|
|
|
$
|
1,707
|
|
Fair value — liability
|
2,339
|
|
|
1,689
|
|
(1)
|
Excludes Notes Payable and Overdrafts of $
495 million
and $
410 million
at
March 31, 2019
and December 31, 2018, respectively, of which $
261 million
and $
230 million
, respectively, are at fixed rates and $
234 million
and $
180 million
, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.
|
|
U.S.
|
||||||
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Service cost
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
44
|
|
|
40
|
|
||
Expected return on plan assets
|
(56
|
)
|
|
(55
|
)
|
||
Amortization of net losses
|
28
|
|
|
28
|
|
||
Net periodic pension cost
|
$
|
17
|
|
|
$
|
14
|
|
|
Non-U.S.
|
||||||
|
Three Months Ended
|
||||||
|
March 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Service cost
|
$
|
7
|
|
|
$
|
7
|
|
Interest cost
|
18
|
|
|
18
|
|
||
Expected return on plan assets
|
(15
|
)
|
|
(18
|
)
|
||
Amortization of net losses
|
7
|
|
|
7
|
|
||
Net periodic pension cost
|
$
|
17
|
|
|
$
|
14
|
|
Net curtailments/settlements/termination benefits
|
1
|
|
|
—
|
|
||
Total defined benefit pension cost
|
$
|
18
|
|
|
$
|
14
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Pending claims, beginning of period
|
43,100
|
|
|
54,300
|
|
||
New claims filed
|
400
|
|
|
1,300
|
|
||
Claims settled/dismissed
|
(300
|
)
|
|
(12,500
|
)
|
||
Pending claims, end of period
|
43,200
|
|
|
43,100
|
|
||
Payments
(1)
|
$
|
2
|
|
|
$
|
13
|
|
(1)
|
Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution.
|
(In millions) Income (Loss)
|
Foreign Currency Translation Adjustment
|
|
Unrecognized Net Actuarial Losses and Prior Service Costs
|
|
Deferred Derivative Gains (Losses)
|
|
Total
|
||||||||
Balance at December 31, 2018
|
$
|
(1,160
|
)
|
|
$
|
(2,923
|
)
|
|
$
|
7
|
|
|
$
|
(4,076
|
)
|
Other comprehensive income (loss) before reclassifications, net of tax
|
30
|
|
|
4
|
|
|
5
|
|
|
39
|
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax
|
—
|
|
|
26
|
|
|
(3
|
)
|
|
23
|
|
||||
Balance at March 31, 2019
|
$
|
(1,130
|
)
|
|
$
|
(2,893
|
)
|
|
$
|
9
|
|
|
$
|
(4,014
|
)
|
|
|
|
|
|
|
|
|
||||||||
(In millions) Income (Loss)
|
Foreign Currency Translation Adjustment
|
|
Unrecognized Net Actuarial Losses and Prior Service Costs
|
|
Deferred Derivative Gains (Losses)
|
|
Total
|
||||||||
Balance at December 31, 2017
|
$
|
(915
|
)
|
|
$
|
(3,052
|
)
|
|
$
|
(9
|
)
|
|
$
|
(3,976
|
)
|
Other comprehensive income (loss) before reclassifications, net of tax
|
80
|
|
|
3
|
|
|
(4
|
)
|
|
79
|
|
||||
Amounts reclassified from accumulated other comprehensive loss, net of tax
|
—
|
|
|
27
|
|
|
3
|
|
|
30
|
|
||||
Balance at March 31, 2018
|
$
|
(835
|
)
|
|
$
|
(3,022
|
)
|
|
$
|
(10
|
)
|
|
$
|
(3,867
|
)
|
|
Three Months Ended March 31,
|
|
|
||||||
|
2019
|
|
2018
|
|
|
||||
(In millions) (Income) Expense
|
Amount Reclassified
|
|
Affected Line Item in the Consolidated Statements of Operations
|
||||||
Component of AOCL
|
from AOCL
|
|
|||||||
Amortization of prior service cost and unrecognized gains and losses
|
$
|
34
|
|
|
$
|
35
|
|
|
Other (Income) Expense
|
Tax effect
|
(8
|
)
|
|
(8
|
)
|
|
United States and Foreign Taxes
|
||
Net of tax
|
$
|
26
|
|
|
$
|
27
|
|
|
Goodyear Net Income
|
|
|
|
|
|
|
||||
Deferred Derivative (Gains) Losses, before tax
|
$
|
(3
|
)
|
|
$
|
4
|
|
|
Cost of Goods Sold
|
Tax effect
|
—
|
|
|
(1
|
)
|
|
United States and Foreign Taxes
|
||
Net of tax
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
Goodyear Net Income
|
Total reclassifications
|
$
|
23
|
|
|
$
|
30
|
|
|
Goodyear Net Income
|
(i)
|
The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations;
|
(ii)
|
Guarantor Subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes;
|
(iii)
|
Non-Guarantor Subsidiaries, on a combined basis;
|
(iv)
|
Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and
|
(v)
|
The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis.
|
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||
|
March 31, 2019
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
189
|
|
|
$
|
26
|
|
|
$
|
645
|
|
|
$
|
—
|
|
|
$
|
860
|
|
Accounts Receivable, net
|
721
|
|
|
123
|
|
|
1,602
|
|
|
—
|
|
|
2,446
|
|
|||||
Accounts Receivable From Affiliates
|
337
|
|
|
258
|
|
|
—
|
|
|
(595
|
)
|
|
—
|
|
|||||
Inventories
|
1,511
|
|
|
66
|
|
|
1,395
|
|
|
(32
|
)
|
|
2,940
|
|
|||||
Prepaid Expenses and Other Current Assets
|
74
|
|
|
2
|
|
|
164
|
|
|
6
|
|
|
246
|
|
|||||
Total Current Assets
|
2,832
|
|
|
475
|
|
|
3,806
|
|
|
(621
|
)
|
|
6,492
|
|
|||||
Goodwill
|
24
|
|
|
1
|
|
|
416
|
|
|
122
|
|
|
563
|
|
|||||
Intangible Assets
|
117
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
136
|
|
|||||
Deferred Income Taxes
|
1,452
|
|
|
27
|
|
|
382
|
|
|
3
|
|
|
1,864
|
|
|||||
Other Assets
|
515
|
|
|
50
|
|
|
595
|
|
|
—
|
|
|
1,160
|
|
|||||
Investments in Subsidiaries
|
3,776
|
|
|
436
|
|
|
—
|
|
|
(4,212
|
)
|
|
—
|
|
|||||
Operating Lease Right-of-Use Assets
|
568
|
|
|
14
|
|
|
280
|
|
|
—
|
|
|
862
|
|
|||||
Property, Plant and Equipment, net
|
2,459
|
|
|
429
|
|
|
4,333
|
|
|
(25
|
)
|
|
7,196
|
|
|||||
Total Assets
|
$
|
11,743
|
|
|
$
|
1,432
|
|
|
$
|
9,831
|
|
|
$
|
(4,733
|
)
|
|
$
|
18,273
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts Payable-Trade
|
$
|
909
|
|
|
$
|
118
|
|
|
$
|
1,710
|
|
|
$
|
—
|
|
|
$
|
2,737
|
|
Accounts Payable to Affiliates
|
—
|
|
|
—
|
|
|
595
|
|
|
(595
|
)
|
|
—
|
|
|||||
Compensation and Benefits
|
284
|
|
|
15
|
|
|
193
|
|
|
—
|
|
|
492
|
|
|||||
Other Current Liabilities
|
302
|
|
|
(6
|
)
|
|
398
|
|
|
—
|
|
|
694
|
|
|||||
Notes Payable and Overdrafts
|
55
|
|
|
—
|
|
|
440
|
|
|
—
|
|
|
495
|
|
|||||
Operating Lease Liabilities due Within One Year
|
110
|
|
|
4
|
|
|
89
|
|
|
—
|
|
|
203
|
|
|||||
Long Term Debt and Finance Leases due Within One Year
|
1
|
|
|
—
|
|
|
465
|
|
|
—
|
|
|
466
|
|
|||||
Total Current Liabilities
|
1,661
|
|
|
131
|
|
|
3,890
|
|
|
(595
|
)
|
|
5,087
|
|
|||||
Operating Lease Liabilities
|
466
|
|
|
10
|
|
|
191
|
|
|
—
|
|
|
667
|
|
|||||
Long Term Debt and Finance Leases
|
3,918
|
|
|
167
|
|
|
1,460
|
|
|
—
|
|
|
5,545
|
|
|||||
Compensation and Benefits
|
541
|
|
|
93
|
|
|
665
|
|
|
—
|
|
|
1,299
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
|||||
Other Long Term Liabilities
|
349
|
|
|
8
|
|
|
193
|
|
|
—
|
|
|
550
|
|
|||||
Total Liabilities
|
6,935
|
|
|
409
|
|
|
6,493
|
|
|
(595
|
)
|
|
13,242
|
|
|||||
Commitments and Contingent Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodyear Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock
|
232
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|||||
Other Equity
|
4,576
|
|
|
1,023
|
|
|
3,115
|
|
|
(4,138
|
)
|
|
4,576
|
|
|||||
Goodyear Shareholders’ Equity
|
4,808
|
|
|
1,023
|
|
|
3,115
|
|
|
(4,138
|
)
|
|
4,808
|
|
|||||
Minority Shareholders’ Equity — Nonredeemable
|
—
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
223
|
|
|||||
Total Shareholders’ Equity
|
4,808
|
|
|
1,023
|
|
|
3,338
|
|
|
(4,138
|
)
|
|
5,031
|
|
|||||
Total Liabilities and Shareholders’ Equity
|
$
|
11,743
|
|
|
$
|
1,432
|
|
|
$
|
9,831
|
|
|
$
|
(4,733
|
)
|
|
$
|
18,273
|
|
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
127
|
|
|
$
|
30
|
|
|
$
|
644
|
|
|
$
|
—
|
|
|
$
|
801
|
|
Accounts Receivable, net
|
672
|
|
|
110
|
|
|
1,248
|
|
|
—
|
|
|
2,030
|
|
|||||
Accounts Receivable From Affiliates
|
294
|
|
|
280
|
|
|
—
|
|
|
(574
|
)
|
|
—
|
|
|||||
Inventories
|
1,425
|
|
|
71
|
|
|
1,387
|
|
|
(27
|
)
|
|
2,856
|
|
|||||
Prepaid Expenses and Other Current Assets
|
76
|
|
|
3
|
|
|
155
|
|
|
4
|
|
|
238
|
|
|||||
Total Current Assets
|
2,594
|
|
|
494
|
|
|
3,434
|
|
|
(597
|
)
|
|
5,925
|
|
|||||
Goodwill
|
24
|
|
|
1
|
|
|
420
|
|
|
124
|
|
|
569
|
|
|||||
Intangible Assets
|
117
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
136
|
|
|||||
Deferred Income Taxes
|
1,422
|
|
|
27
|
|
|
395
|
|
|
3
|
|
|
1,847
|
|
|||||
Other Assets
|
524
|
|
|
48
|
|
|
564
|
|
|
—
|
|
|
1,136
|
|
|||||
Investments in Subsidiaries
|
3,758
|
|
|
445
|
|
|
—
|
|
|
(4,203
|
)
|
|
—
|
|
|||||
Operating Lease Right-of-Use Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Property, Plant and Equipment, net
|
2,482
|
|
|
430
|
|
|
4,371
|
|
|
(24
|
)
|
|
7,259
|
|
|||||
Total Assets
|
$
|
10,921
|
|
|
$
|
1,445
|
|
|
$
|
9,203
|
|
|
$
|
(4,697
|
)
|
|
$
|
16,872
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts Payable-Trade
|
$
|
960
|
|
|
$
|
131
|
|
|
$
|
1,829
|
|
|
$
|
—
|
|
|
$
|
2,920
|
|
Accounts Payable to Affiliates
|
—
|
|
|
—
|
|
|
574
|
|
|
(574
|
)
|
|
—
|
|
|||||
Compensation and Benefits
|
286
|
|
|
14
|
|
|
171
|
|
|
—
|
|
|
471
|
|
|||||
Other Current Liabilities
|
310
|
|
|
(4
|
)
|
|
431
|
|
|
—
|
|
|
737
|
|
|||||
Notes Payable and Overdrafts
|
25
|
|
|
—
|
|
|
385
|
|
|
—
|
|
|
410
|
|
|||||
Operating Lease Liabilities due Within One Year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long Term Debt and Finance Leases Due Within One Year
|
2
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
243
|
|
|||||
Total Current Liabilities
|
1,583
|
|
|
141
|
|
|
3,631
|
|
|
(574
|
)
|
|
4,781
|
|
|||||
Operating Lease Liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long Term Debt and Finance Leases
|
3,550
|
|
|
167
|
|
|
1,393
|
|
|
—
|
|
|
5,110
|
|
|||||
Compensation and Benefits
|
569
|
|
|
93
|
|
|
683
|
|
|
—
|
|
|
1,345
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
95
|
|
|||||
Other Long Term Liabilities
|
355
|
|
|
8
|
|
|
108
|
|
|
—
|
|
|
471
|
|
|||||
Total Liabilities
|
6,057
|
|
|
409
|
|
|
5,910
|
|
|
(574
|
)
|
|
11,802
|
|
|||||
Commitments and Contingent Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodyear Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock
|
232
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|||||
Other Equity
|
4,632
|
|
|
1,036
|
|
|
3,087
|
|
|
(4,123
|
)
|
|
4,632
|
|
|||||
Goodyear Shareholders’ Equity
|
4,864
|
|
|
1,036
|
|
|
3,087
|
|
|
(4,123
|
)
|
|
4,864
|
|
|||||
Minority Shareholders’ Equity — Nonredeemable
|
—
|
|
|
—
|
|
|
206
|
|
|
—
|
|
|
206
|
|
|||||
Total Shareholders’ Equity
|
4,864
|
|
|
1,036
|
|
|
3,293
|
|
|
(4,123
|
)
|
|
5,070
|
|
|||||
Total Liabilities and Shareholders’ Equity
|
$
|
10,921
|
|
|
$
|
1,445
|
|
|
$
|
9,203
|
|
|
$
|
(4,697
|
)
|
|
$
|
16,872
|
|
|
Consolidating Statements of Operations
|
||||||||||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
1,673
|
|
|
$
|
327
|
|
|
$
|
2,299
|
|
|
$
|
(701
|
)
|
|
$
|
3,598
|
|
Cost of Goods Sold
|
1,371
|
|
|
310
|
|
|
1,911
|
|
|
(713
|
)
|
|
2,879
|
|
|||||
Selling, Administrative and General Expense
|
253
|
|
|
8
|
|
|
286
|
|
|
—
|
|
|
547
|
|
|||||
Rationalizations
|
6
|
|
|
—
|
|
|
97
|
|
|
—
|
|
|
103
|
|
|||||
Interest Expense
|
55
|
|
|
6
|
|
|
33
|
|
|
(9
|
)
|
|
85
|
|
|||||
Other (Income) Expense
|
74
|
|
|
4
|
|
|
(81
|
)
|
|
25
|
|
|
22
|
|
|||||
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries
|
(86
|
)
|
|
(1
|
)
|
|
53
|
|
|
(4
|
)
|
|
(38
|
)
|
|||||
United States and Foreign Taxes
|
(26
|
)
|
|
—
|
|
|
31
|
|
|
1
|
|
|
6
|
|
|||||
Equity in Earnings of Subsidiaries
|
(1
|
)
|
|
(15
|
)
|
|
—
|
|
|
16
|
|
|
—
|
|
|||||
Net Income (Loss)
|
(61
|
)
|
|
(16
|
)
|
|
22
|
|
|
11
|
|
|
(44
|
)
|
|||||
Less: Minority Shareholders’ Net Income
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||
Goodyear Net Income (Loss)
|
$
|
(61
|
)
|
|
$
|
(16
|
)
|
|
$
|
5
|
|
|
$
|
11
|
|
|
$
|
(61
|
)
|
Comprehensive Income (Loss)
|
$
|
1
|
|
|
$
|
(14
|
)
|
|
$
|
57
|
|
|
$
|
(26
|
)
|
|
$
|
18
|
|
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|||||
Goodyear Comprehensive Income (Loss)
|
$
|
1
|
|
|
$
|
(14
|
)
|
|
$
|
40
|
|
|
$
|
(26
|
)
|
|
$
|
1
|
|
|
Consolidating Statements of Operations
|
||||||||||||||||||
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Net Sales
|
$
|
1,684
|
|
|
$
|
309
|
|
|
$
|
2,457
|
|
|
$
|
(620
|
)
|
|
$
|
3,830
|
|
Cost of Goods Sold
|
1,365
|
|
|
273
|
|
|
1,978
|
|
|
(640
|
)
|
|
2,976
|
|
|||||
Selling, Administrative and General Expense
|
259
|
|
|
10
|
|
|
322
|
|
|
—
|
|
|
591
|
|
|||||
Rationalizations
|
6
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
37
|
|
|||||
Interest Expense
|
54
|
|
|
5
|
|
|
23
|
|
|
(6
|
)
|
|
76
|
|
|||||
Other (Income) Expense
|
10
|
|
|
7
|
|
|
—
|
|
|
20
|
|
|
37
|
|
|||||
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries
|
(10
|
)
|
|
14
|
|
|
103
|
|
|
6
|
|
|
113
|
|
|||||
United States and Foreign Taxes
|
(3
|
)
|
|
3
|
|
|
30
|
|
|
3
|
|
|
33
|
|
|||||
Equity in Earnings of Subsidiaries
|
82
|
|
|
22
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|||||
Net Income (Loss)
|
75
|
|
|
33
|
|
|
73
|
|
|
(101
|
)
|
|
80
|
|
|||||
Less: Minority Shareholders’ Net Income
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Goodyear Net Income (Loss)
|
$
|
75
|
|
|
$
|
33
|
|
|
$
|
68
|
|
|
$
|
(101
|
)
|
|
$
|
75
|
|
Comprehensive Income (Loss)
|
$
|
184
|
|
|
$
|
55
|
|
|
$
|
155
|
|
|
$
|
(203
|
)
|
|
$
|
191
|
|
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Goodyear Comprehensive Income (Loss)
|
$
|
184
|
|
|
$
|
55
|
|
|
$
|
148
|
|
|
$
|
(203
|
)
|
|
$
|
184
|
|
|
Condensed Consolidating Statement of Cash Flows
|
||||||||||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Cash Flows from Operating Activities
|
$
|
(75
|
)
|
|
$
|
(26
|
)
|
|
$
|
(253
|
)
|
|
$
|
(10
|
)
|
|
$
|
(364
|
)
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Expenditures
|
(90
|
)
|
|
(11
|
)
|
|
(120
|
)
|
|
—
|
|
|
(221
|
)
|
|||||
Short Term Securities Acquired
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|||||
Short Term Securities Redeemed
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
31
|
|
|||||
Capital Contributions and Loans Incurred
|
(196
|
)
|
|
—
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|||||
Capital Redemptions and Loans Paid
|
104
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|||||
Notes Receivable
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Other Transactions
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||||
Total Cash Flows from Investing Activities
|
(189
|
)
|
|
(11
|
)
|
|
(136
|
)
|
|
92
|
|
|
(244
|
)
|
|||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short Term Debt and Overdrafts Incurred
|
299
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
571
|
|
|||||
Short Term Debt and Overdrafts Paid
|
(269
|
)
|
|
—
|
|
|
(216
|
)
|
|
—
|
|
|
(485
|
)
|
|||||
Long Term Debt Incurred
|
923
|
|
|
—
|
|
|
927
|
|
|
—
|
|
|
1,850
|
|
|||||
Long Term Debt Paid
|
(590
|
)
|
|
—
|
|
|
(633
|
)
|
|
—
|
|
|
(1,223
|
)
|
|||||
Common Stock Dividends Paid
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|||||
Capital Contributions and Loans Incurred
|
—
|
|
|
34
|
|
|
162
|
|
|
(196
|
)
|
|
—
|
|
|||||
Capital Redemptions and Loans Paid
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
104
|
|
|
—
|
|
|||||
Intercompany Dividends Paid
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
10
|
|
|
—
|
|
|||||
Debt Related Costs and Other Transactions
|
(3
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
(31
|
)
|
|||||
Total Cash Flows from Financing Activities
|
323
|
|
|
34
|
|
|
370
|
|
|
(82
|
)
|
|
645
|
|
|||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Net Change in Cash, Cash Equivalents and Restricted Cash
|
59
|
|
|
(4
|
)
|
|
(18
|
)
|
|
—
|
|
|
37
|
|
|||||
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period
|
168
|
|
|
30
|
|
|
675
|
|
|
—
|
|
|
873
|
|
|||||
Cash, Cash Equivalents and Restricted Cash at End of the Period
|
$
|
227
|
|
|
$
|
26
|
|
|
$
|
657
|
|
|
$
|
—
|
|
|
$
|
910
|
|
|
Condensed Consolidating Statement of Cash Flows
|
||||||||||||||||||
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
(In millions)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Consolidating Entries and Eliminations
|
|
Consolidated
|
||||||||||
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Cash Flows from Operating Activities
|
$
|
266
|
|
|
$
|
—
|
|
|
$
|
(656
|
)
|
|
$
|
1
|
|
|
$
|
(389
|
)
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Expenditures
|
(101
|
)
|
|
(28
|
)
|
|
(118
|
)
|
|
(1
|
)
|
|
(248
|
)
|
|||||
Short Term Securities Acquired
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Short Term Securities Redeemed
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||
Capital Contributions and Loans Incurred
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
|
182
|
|
|
—
|
|
|||||
Capital Redemptions and Loans Paid
|
38
|
|
|
—
|
|
|
360
|
|
|
(398
|
)
|
|
—
|
|
|||||
Total Cash Flows from Investing Activities
|
(154
|
)
|
|
(28
|
)
|
|
151
|
|
|
(217
|
)
|
|
(248
|
)
|
|||||
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short Term Debt and Overdrafts Incurred
|
325
|
|
|
—
|
|
|
259
|
|
|
—
|
|
|
584
|
|
|||||
Short Term Debt and Overdrafts Paid
|
(325
|
)
|
|
—
|
|
|
(193
|
)
|
|
—
|
|
|
(518
|
)
|
|||||
Long Term Debt Incurred
|
705
|
|
|
15
|
|
|
932
|
|
|
—
|
|
|
1,652
|
|
|||||
Long Term Debt Paid
|
(541
|
)
|
|
—
|
|
|
(685
|
)
|
|
—
|
|
|
(1,226
|
)
|
|||||
Common Stock Issued
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Common Stock Repurchased
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|||||
Common Stock Dividends Paid
|
(34
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|||||
Capital Contributions and Loans Incurred
|
91
|
|
|
8
|
|
|
83
|
|
|
(182
|
)
|
|
—
|
|
|||||
Capital Redemptions and Loans Paid
|
(360
|
)
|
|
—
|
|
|
(38
|
)
|
|
398
|
|
|
—
|
|
|||||
Transactions with Minority Interests in Subsidiaries
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Debt Related Costs and Other Transactions
|
7
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Total Cash Flows from Financing Activities
|
(156
|
)
|
|
23
|
|
|
316
|
|
|
216
|
|
|
399
|
|
|||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
—
|
|
|
(1
|
)
|
|
17
|
|
|
—
|
|
|
16
|
|
|||||
Net Change in Cash, Cash Equivalents and Restricted Cash
|
(44
|
)
|
|
(6
|
)
|
|
(172
|
)
|
|
—
|
|
|
(222
|
)
|
|||||
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period
|
201
|
|
|
32
|
|
|
877
|
|
|
—
|
|
|
1,110
|
|
|||||
Cash, Cash Equivalents and Restricted Cash at End of the Period
|
$
|
157
|
|
|
$
|
26
|
|
|
$
|
705
|
|
|
$
|
—
|
|
|
$
|
888
|
|
|
Three Months Ended March 31,
|
|||||||||||||
|
|
|
|
|
|
|
Percent
|
|||||||
(In millions)
|
2019
|
|
2018
|
|
Change
|
|
Change
|
|||||||
Tire Units
|
16.7
|
|
|
16.7
|
|
|
—
|
|
|
—
|
%
|
|||
Net Sales
|
$
|
1,876
|
|
|
$
|
1,929
|
|
|
$
|
(53
|
)
|
|
(2.7
|
)%
|
Operating Income
|
89
|
|
|
127
|
|
|
(38
|
)
|
|
(29.9
|
)%
|
|||
Operating Margin
|
4.7
|
%
|
|
6.6
|
%
|
|
|
|
|
|
March 31,
|
|
December 31,
|
||||
(In millions)
|
2019
|
|
2018
|
||||
First lien revolving credit facility
|
$
|
1,296
|
|
|
$
|
1,633
|
|
European revolving credit facility
|
758
|
|
|
629
|
|
||
Chinese credit facilities
|
237
|
|
|
199
|
|
||
Mexican credit facilities
|
—
|
|
|
140
|
|
||
Other domestic and international debt
|
98
|
|
|
221
|
|
||
Notes payable and overdrafts
|
294
|
|
|
329
|
|
||
|
$
|
2,683
|
|
|
$
|
3,151
|
|
•
|
We become subject to the financial covenant contained in our first lien revolving credit facility when the aggregate amount of our Parent Company (The Goodyear Tire & Rubber Company) and guarantor subsidiaries cash and cash equivalents (“Available Cash”) plus our availability under our first lien revolving credit facility is less than $200 million. If this were to occur, our ratio of EBITDA to Consolidated Interest Expense may not be less than 2.0 to 1.0 for the most recent period of four consecutive fiscal quarters. As of
March 31, 2019
, our availability under this facility of
$1,296 million
, plus our Available Cash of
$215 million
, totaled
$1,511 million
, which is in excess of $200 million.
|
•
|
We become subject to a covenant contained in our second lien credit facility upon certain asset sales. The covenant provides that, before we use cash proceeds from certain asset sales to repay any junior lien, senior unsecured or subordinated indebtedness, we must first offer to use such cash proceeds to prepay borrowings under the second lien credit facility unless our ratio of Consolidated Net Secured Indebtedness to EBITDA (Pro Forma Senior Secured Leverage Ratio) for any period of four consecutive fiscal quarters is equal to or less than 3.0 to 1.0.
|
•
|
if we do not successfully implement our strategic initiatives, our operating results, financial condition and liquidity may be materially adversely affected;
|
•
|
we face significant global competition and our market share could decline;
|
•
|
deteriorating economic conditions in any of our major markets, or an inability to access capital markets or third-party financing when necessary, may materially adversely affect our operating results, financial condition and liquidity;
|
•
|
raw material and energy costs may materially adversely affect our operating results and financial condition;
|
•
|
if we experience a labor strike, work stoppage or other similar event our business, results of operations, financial condition and liquidity could be materially adversely affected;
|
•
|
we could be negatively impacted by the imposition of tariffs on tires and other goods;
|
•
|
our international operations have certain risks that may materially adversely affect our operating results, financial condition and liquidity;
|
•
|
we have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity;
|
•
|
our long term ability to meet our obligations, to repay maturing indebtedness or to implement strategic initiatives may be dependent on our ability to access capital markets in the future and to improve our operating results;
|
•
|
financial difficulties, work stoppages, supply disruptions or economic conditions affecting our major customers, dealers or suppliers could harm our business;
|
•
|
our capital expenditures may not be adequate to maintain our competitive position and may not be implemented in a timely or cost-effective manner;
|
•
|
we have a substantial amount of debt, which could restrict our growth, place us at a competitive disadvantage or otherwise materially adversely affect our financial health;
|
•
|
any failure to be in compliance with any material provision or covenant of our debt instruments, or a material reduction in the borrowing base under our revolving credit facility, could have a material adverse effect on our liquidity and operations;
|
•
|
our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly;
|
•
|
we have substantial fixed costs and, as a result, our operating income fluctuates disproportionately with changes in our net sales;
|
•
|
we may incur significant costs in connection with our contingent liabilities and tax matters;
|
•
|
our reserves for contingent liabilities and our recorded insurance assets are subject to various uncertainties, the outcome of which may result in our actual costs being significantly higher than the amounts recorded;
|
•
|
we are subject to extensive government regulations that may materially adversely affect our operating results;
|
•
|
we may be adversely affected by any disruption in, or failure of, our information technology systems due to computer viruses, unauthorized access, cyber-attack, natural disasters or other similar disruptions;
|
•
|
if we are unable to attract and retain key personnel, our business could be materially adversely affected; and
|
•
|
we may be impacted by economic and supply disruptions associated with events beyond our control, such as war, acts of terror, political unrest, public health concerns, labor disputes or natural disasters.
|
Exhibit
|
|
|
|
|
Table
|
|
|
|
|
Item
|
|
|
|
Exhibit
|
No.
|
|
Description of Exhibit
|
|
Number
|
|
|
|
|
|
10
|
|
Material Contracts
|
|
|
|
|
|
|
|
(a)
|
|
|
|
10.1
|
|
|
|
|
|
(b)
|
|
|
10.2
|
|
|
|
|
|
|
31
|
|
Rule 13a-14(a) Certifications
|
|
|
|
|
|
|
|
(a)
|
|
|
31.1
|
|
|
|
|
|
|
(b)
|
|
|
31.2
|
|
|
|
|
|
|
32
|
|
Section 1350 Certifications
|
|
|
|
|
|
|
|
(a)
|
|
|
32.1
|
|
|
|
|
|
|
101
|
|
Interactive Data File
|
|
|
|
|
|
|
|
(a)
|
|
The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, formatted in XBRL: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Shareholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements.
|
|
101
|
|
|
THE GOODYEAR TIRE & RUBBER COMPANY
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date:
|
April 26, 2019
|
By
|
/s/ E
VAN
M. S
COCOS
|
|
|
|
Evan M. Scocos, Vice President and Controller (Signing on behalf of the Registrant as a duly authorized officer of the Registrant and signing as the Principal Accounting Officer of the Registrant.)
|
|
1 Year Goodyear Tire and Rubber Chart |
1 Month Goodyear Tire and Rubber Chart |
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