Costs Associated with Rationalization Programs

In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce excess and high-cost manufacturing capacity and to reduce associate headcount.

The following table presents the roll-forward of the liability balance between periods:



(In millions)	Associate-related Costs			Other Costs			Total
Balance at December 31, 2010	$	212		$	18		$	230
2011 charges	60			46			106
Incurred	(104		)	(45		)	(149		)
Reversed to the Statement of Operations	(2		)	(1		)	(3		)
Balance at December 31, 2011	$	166		$	18		$	184
2012 charges	142			36			178
Incurred	(77		)	(30		)	(107		)
Reversed to the Statement of Operations	(2		)	(1		)	(3		)
Balance at December 31, 2012	$	229		$	23		$	252
2013 charges	58			17			75
Incurred	(42		)	(31		)	(73		)
Reversed to the Statement of Operations	(13		)	(4		)	(17		)
Balance at December 31, 2013	$	232		$	5		$	237

The net rationalization charges included in Income before Income Taxes are as follows:



(In millions)	2013		2012		2011
Current Year Plans
Associate Severance and Other Related Costs	$	42	$	125	$	19
Other Exit and Non-Cancelable Lease Costs	3		16		6
Current Year Plans - Net Charges	$	45	$	141	$	25

Prior Year Plans
Associate Severance and Other Related Costs	$	3	$	15	$	39
Other Exit and Non-Cancelable Lease Costs	10		19		39
Prior Year Plans - Net Charges	13		34		78
Total Net Charges	$	58	$	175	$	103

Asset Write-off and Accelerated Depreciation Charges	$	23	$	20	$	50

Significant rationalization actions initiated in 2013 consisted of manufacturing headcount reductions related to EMEA's plans to improve efficiency and reduce manufacturing capacity in certain Western European countries. In addition, Asia Pacific also initiated plans primarily relating to SAG headcount reductions and the closure of retail facilities in Australia and New Zealand. Other rationalization actions in 2013 related to plans to reduce manufacturing and SAG expenses through headcount reductions in all of our strategic business units.

The accrual balance of $237 million at December 31, 2013 is expected to be substantially utilized within the next 12 months and includes $169 million relating to plans associated with the closure of one of our manufacturing facilities in Amiens, France.

Approximately 800 associates will be released under plans initiated in 2013, of which approximately 200 associates have been released as of December 31, 2013.

Asset write-off and accelerated depreciation charges of $23 million in 2013 related to property and equipment in one of our facilities in Amiens, France. Accelerated depreciation charges for all periods were recorded in CGS.

Rationalization activities initiated in 2012 consisted primarily of charges of $74 million related to EMEA's plan to exit the farm tire business and discontinue farm tire production at one of our facilities in Amiens, France and the closure of that facility. In addition, Asia Pacific initiated plans relating to the closure of several retail facilities in Australia and New Zealand. Other rationalization actions in 2012 related to plans to reduce manufacturing and SAG expenses through headcount reductions in all of our strategic business units. Approximately 2,200 associates will be released under 2012 plans of which 1,500 were released by December 31, 2013.

Asset write-off and accelerated depreciation charges of $20 million were recorded in 2012 and related to property and equipment in our Dalian, China manufacturing facility, which ceased production in the third quarter of 2012.

Rationalization actions initiated in 2011 consisted primarily of plans in EMEA and Asia Pacific to reduce manufacturing and SAG expenses through headcount reductions. In addition, Asia Pacific initiated a plan related to the relocation of its manufacturing facility in Dalian, China to Pulandian, China. Approximately 500 associates were to be released under 2011 plans, all of which were released by December 31, 2012.

Asset write-off and accelerated depreciation charges of $50 million were recorded in 2011 and related to property and equipment in our Union City, Tennessee manufacturing facility.

In total, approximately, 1,900 associates remain to be released under rationalization plans, including approximately 1,200 associates related to the plan to exit the farm tire business and close one of our facilities in Amiens, France.