Consolidating Financial Information

6 Months Ended

Jun. 30, 2011

Consolidating Financial Information [Abstract]

CONSOLIDATING FINANCIAL INFORMATION

NOTE 15. CONSOLIDATING FINANCIAL INFORMATION

Certain of our subsidiaries have guaranteed our obligations under the $650 million outstanding principal amount of 10.5% senior notes due 2016, the $1.0 billion outstanding principal amount of 8.25% senior notes due 2020, and the $282 million outstanding principal amount of 8.75% notes due 2020 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for:

(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 or among 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.

     Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Intercompany cash advances and loans made primarily for the purpose of short-term operating needs are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of the capital stock of various subsidiaries and other capital transactions between members of the consolidated group.

     Certain non-guarantor subsidiaries of the Parent Company are restricted from remitting funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or restrictions in credit agreements or other debt instruments of those subsidiaries.

	Consolidating Balance Sheet
	June 30, 2011
										Consolidating
	Parent			Guarantor			Non-Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	569		$	39		$	1,196		$	—		$	1,804
Accounts Receivable		1,008			239			2,292			—			3,539
Accounts Receivable From Affiliates		—			492			114			(606	)		—
Inventories		1,700			214			2,222			(104	)		4,032
Prepaid Expenses and Other Current Assets		71			5			311			14			401
Total Current Assets		3,348			989			6,135			(696	)		9,776
Goodwill		—			24			505			191			720
Intangible Assets		109			1			51			—			161
Deferred Income Taxes		—			1			48			(1	)		48
Other Assets		233			49			207			—			489
Investments in Subsidiaries		4,075			341			4,324			(8,740	)		—
Property, Plant and Equipment		2,089			172			4,157			30			6,448
Total Assets	$	9,854		$	1,577		$	15,427		$	(9,216	)	$	17,642
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	875		$	194		$	2,446		$	—		$	3,515
Accounts Payable to Affiliates		606			—			—			(606	)		—
Compensation and Benefits		396			34			359			—			789
Other Current Liabilities		349			38			714			(4	)		1,097
Notes Payable and Overdrafts		—			—			261			—			261
Long Term Debt and Capital Leases Due Within One Year		1			—			256			—			257
Total Current Liabilities		2,227			266			4,036			(610	)		5,919
Long Term Debt and Capital Leases		3,243			—			1,543			—			4,786
Compensation and Benefits		2,232			204			948			—			3,384
Deferred and Other Noncurrent Income Taxes		31			3			229			6			269
Other Long Term Liabilities		646			34			207			—			887
Total Liabilities		8,379			507			6,963			(604	)		15,245
Commitments and Contingent Liabilities
Minority Shareholders’ Equity		—			—			411			227			638
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Preferred Stock		500			—			—			—			500
Common Stock		244			333			5,022			(5,355	)		244
Capital Surplus		2,801			35			1,025			(1,060	)		2,801
Retained Earnings		1,009			1,168			2,761			(3,929	)		1,009
Accumulated Other Comprehensive Loss		(3,079	)		(466	)		(1,039	)		1,505			(3,079	)
Goodyear Shareholders’ Equity		1,475			1,070			7,769			(8,839	)		1,475
Minority Shareholders’ Equity — Nonredeemable		—			—			284			—			284
Total Shareholders’ Equity		1,475			1,070			8,053			(8,839	)		1,759
Total Liabilities and Shareholders’ Equity	$	9,854		$	1,577		$	15,427		$	(9,216	)	$	17,642

	Consolidating Balance Sheet
	December 31, 2010
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	792		$	38		$	1,175		$	—		$	2,005
Accounts Receivable		875			219			1,642			—			2,736
Accounts Receivable From Affiliates		—			434			197			(631	)		—
Inventories		1,259			185			1,610			(77	)		2,977
Prepaid Expenses and Other Current Assets		58			5			257			7			327
Total Current Assets		2,984			881			4,881			(701	)		8,045
Goodwill		—			24			476			183			683
Intangible Assets		109			1			51			—			161
Deferred Income Taxes		—			1			58			(1	)		58
Other Assets		241			48			229			—			518
Investments in Subsidiaries		3,879			313			4,324			(8,516	)		—
Property, Plant and Equipment		2,177			172			3,787			29			6,165
Total Assets	$	9,390		$	1,440		$	13,806		$	(9,006	)	$	15,630
Liabilities
Current Liabilities:
Accounts Payable-Trade	$	814		$	140		$	2,153		$	—		$	3,107
Accounts Payable to Affiliates		631			—			—			(631	)		—
Compensation and Benefits		411			34			311			—			756
Other Current Liabilities		369			33			618			(2	)		1,018
Notes Payable and Overdrafts		—			—			238			—			238
Long Term Debt and Capital Leases Due Within One Year		1			—			187			—			188
Total Current Liabilities		2,226			207			3,507			(633	)		5,307
Long Term Debt and Capital Leases		3,573			—			746			—			4,319
Compensation and Benefits		2,296			209			910			—			3,415
Deferred and Other Noncurrent Income Taxes		31			3			202			6			242
Other Long Term Liabilities		620			32			190			—			842
Total Liabilities		8,746			451			5,555			(627	)		14,125
Commitments and Contingent Liabilities
Minority Shareholders’ Equity		—			—			374			210			584
Shareholders’ Equity
Goodyear Shareholders’ Equity
Preferred Stock		—			—			—			—			—
Common Stock		243			333			5,021			(5,354	)		243
Capital Surplus		2,805			35			1,025			(1,060	)		2,805
Retained Earnings		866			1,098			2,698			(3,796	)		866
Accumulated Other Comprehensive Loss		(3,270	)		(477	)		(1,144	)		1,621			(3,270	)
Goodyear Shareholders’ Equity		644			989			7,600			(8,589	)		644
Minority Shareholders’ Equity — Nonredeemable		—			—			277			—			277
Total Shareholders’ Equity		644			989			7,877			(8,589	)		921
Total Liabilities and Shareholders’ Equity	$	9,390		$	1,440		$	13,806		$	(9,006	)	$	15,630

	Consolidating Statement of Operations
	Three Months Ended June 30, 2011
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	2,255		$	705		$	6,512		$	(3,852	)	$	5,620
Cost of Goods Sold		1,988			618			5,872			(3,906	)		4,572
Selling, Administrative and General Expense		248			45			462			(2	)		753
Rationalizations		33			1			12			—			46
Interest Expense		63			5			55			(42	)		81
Other (Income) and Expense		(30	)		(9	)		(20	)		107			48
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries		(47	)		45			131			(9	)		120
United States and Foreign Taxes		2			4			60			(2	)		64
Equity in Earnings of Subsidiaries		96			4			—			(100	)		—
Net Income (Loss)		47			45			71			(107	)		56
Less: Minority Shareholders’ Net Income		—			—			9			—			9
Goodyear Net Income (Loss)		47			45			62			(107	)		47
Less: Preferred Stock Dividends		7			—			—			—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	40		$	45		$	62		$	(107	)	$	40

	Three Months Ended June 30, 2010
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	1,881		$	594		$	4,772		$	(2,719	)	$	4,528
Cost of Goods Sold		1,686			533			4,218			(2,751	)		3,686
Selling, Administrative and General Expense		250			47			374			(1	)		670
Rationalizations		(2	)		1			7			—			6
Interest Expense		64			4			35			(26	)		77
Other (Income) and Expense		(30	)		(9	)		(8	)		54			7
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries		(87	)		18			146			5			82
United States and Foreign Taxes		(2	)		6			40			(1	)		43
Equity in Earnings of Subsidiaries		113			7			—			(120	)		—
Net Income (Loss)		28			19			106			(114	)		39
Less: Minority Shareholders’ Net Income		—			—			11			—			11
Goodyear Net Income (Loss)	$	28		$	19		$	95		$	(114	)	$	28

	Consolidating Statement of Operations
	Six Months Ended June 30, 2011
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
NET SALES	$	4,394		$	1,366		$	12,793		$	(7,531	)	$	11,022
Cost of Goods Sold		3,923			1,212			11,519			(7,621	)		9,033
Selling, Administrative and General Expense		464			89			872			(4	)		1,421
Rationalizations		37			3			15			—			55
Interest Expense		127			10			95			(77	)		155
Other (Income) and Expense		(94	)		(12	)		(39	)		197			52
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries		(63	)		64			331			(26	)		306
United States and Foreign Taxes		(1	)		8			124			(5	)		126
Equity in Earnings of Subsidiaries		212			14			—			(226	)		—
Net Income (Loss)		150			70			207			(247	)		180
Less: Minority Shareholders’ Net Income		—			—			30			—			30
Goodyear Net Income (Loss)		150			70			177			(247	)		150
Less: Preferred Stock Dividends		7			—			—			—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	143		$	70		$	177		$	(247	)	$	143

	Six Months Ended June 30, 2010
							Non-		Consolidating
	Parent			Guarantor			Guarantor		Entries and
(In millions)	Company			Subsidiaries			Subsidiaries		Eliminations			Consolidated
NET SALES	$	3,585		$	1,092		$	9,416	$	(5,295	)	$	8,798
Cost of Goods Sold		3,225			977			8,280		(5,340	)		7,142
Selling, Administrative and General Expense		461			91			726		(3	)		1,275
Rationalizations		—			5			3		—			8
Interest Expense		127			8			69		(53	)		151
Other (Income) and Expense		(43	)		(11	)		66		99			111
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries		(185	)		22			272		2			111
United States and Foreign Taxes		(2	)		7			92		(1	)		96
Equity in Earnings of Subsidiaries		164			18			—		(182	)		—
Net Income (Loss)		(19	)		33			180		(179	)		15
Less: Minority Shareholders’ Net Income		—			—			34		—			34
Goodyear Net Income (Loss)	$	(19	)	$	33		$	146	$	(179	)	$	(19	)

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2011
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	(337	)	$	15		$	(233	)	$	(114	)	$	(669	)
Cash Flows from Investing Activities:
Capital expenditures		(118	)		(13	)		(401	)		—			(532	)
Asset dispositions		98			—			2			—			100
Capital contributions		—			—			—			—			—
Increase in restricted cash		—			—			(51	)		—			(51	)
Total Cash Flows from Investing Activities		(20	)		(13	)		(450	)		—			(483	)
Cash Flows from Financing Activities:
Short term debt and overdrafts incurred		—			—			64			—			64
Short term debt and overdrafts paid		(6	)		(2	)		(46	)		—			(54	)
Long term debt incurred		—			—			1,890			—			1,890
Long term debt paid		(350	)		—			(1,082	)		—			(1,432	)
Proceeds from issuance of preferred stock		485			—			—			—			485
Common stock issued		7			—			—			—			7
Capital contributions		—			—			—			—			—
Intercompany dividends paid		—			—			(114	)		114			—
Dividends paid to minority shareholders		—			—			(14	)		—			(14	)
Debt related costs and other transactions		(2	)		—			(17	)		—			(19	)
Total Cash Flows from Financing Activities		134			(2	)		681			114			927
Effect of exchange rate changes on cash and cash equivalents		—			1			23			—			24
Net Change in Cash and Cash Equivalents		(223	)		1			21			—			(201	)
Cash and Cash Equivalents at Beginning of the Period		792			38			1,175			—			2,005
Cash and Cash Equivalents at End of the Period	$	569		$	39		$	1,196		$	—		$	1,804

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2010
							Non-			Consolidating
	Parent			Guarantor			Guarantor			Entries and
(In millions)	Company			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	(69	)	$	19		$	247		$	(14	)	$	183
Cash Flows from Investing Activities:
Capital expenditures		(141	)		(10	)		(207	)		—			(358	)
Asset dispositions		—			—			18			—			18
Capital contributions		—			—			(136	)		136			—
Increase in restricted cash		—			—			(37	)		—			(37	)
Return of investment in The Reserve Primary Fund		24			—			—			—			24
Total Cash Flows from Investing Activities		(117	)		(10	)		(362	)		136			(353	)
Cash Flows from Financing Activities:
Short term debt and overdrafts incurred		—			1			27			—			28
Short term debt and overdrafts paid		(1	)		—			(48	)		—			(49	)
Long term debt incurred		—			—			251			—			251
Long term debt paid		(1	)		—			(63	)		—			(64	)
Common stock issued		1			—			—			—			1
Capital contributions		—			—			136			(136	)		—
Intercompany dividends paid		—			—			(14	)		14			—
Dividends paid to minority shareholders		—			—			(2	)		—			(2	)
Debt related costs and other transactions		—			—			—			—			—
Total Cash Flows from Financing Activities		(1	)		1			287			(122	)		165
Effect of exchange rate changes on cash and cash equivalents		—			—			(234	)		—			(234	)
Net Change in Cash and Cash Equivalents		(187	)		10			(62	)		—			(239	)
Cash and Cash Equivalents at Beginning of the Period		802			17			1,103			—			1,922
Cash and Cash Equivalents at End of the Period	$	615		$	27		$	1,041		$	—		$	1,683