Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Expected Useful Lives of Property, Plant and Equipment Recorded at Cost and Depreciated or Amortized

Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives:



Land improvements		10 to 20 years
Buildings		10 to 40 years
Machinery and equipment		5 to 14 years
Molds, cores and rings		2 to 10 years

Computation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:



(Number of shares and dollar amounts in thousands except per share amounts)
	2016		2015		2014
Numerator
Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders	$	248,381	$	212,766	$	213,578
Denominator
Denominator for basic earnings per share - weighted average shares outstanding	54,480		57,012		61,402
Effect of dilutive securities - stock options and other stock units	610		611		999
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	55,090		57,623		62,401
Basic earnings per share:
Net income attributable to Cooper Tire & Rubber Company common stockholders	$	4.56	$	3.73	$	3.48
Diluted earnings per share:
Net income attributable to Cooper Tire & Rubber Company common stockholders	$	4.51	$	3.69	$	3.42

Summary of Activity in Product Warranty Liabilities

The following table summarizes the activity in the Company’s product warranty liabilities which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Consolidated Balance Sheets:



	2016		2015		2014
Reserve at beginning of year	12,339		14,005		30,853
Additions	8,349		9,122		17,413
Payments	(10,054	)	(10,788	)	(19,112	)
Decrease due to sale of interest in subsidiary	—		—		(15,149	)
Reserve at December 31	10,634		12,339		14,005