Consolidating Financial Information

9 Months Ended

Sep. 30, 2014

Consolidating Financial Information [Abstract]

Certain of our subsidiaries have guaranteed our obligations under the $1.0 billion outstanding principal amount of 8.25% senior notes due 2020, the $282 million outstanding principal amount of 8.75% notes due 2020, the $900 million outstanding principal amount of 6.5% senior notes due 2021, and the $700 million outstanding principal amount of 7% senior notes due 2022 (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 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. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. 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. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, 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, loans and other capital transactions between members of the consolidated group.

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



	Condensed Consolidating Balance Sheet
	September 30, 2014
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	471	$	61	$	1,212	$	—		$	1,744
Accounts Receivable	840		249		1,932		—			3,021
Accounts Receivable From Affiliates	—		770		—		(770		)	—
Inventories	1,299		153		1,522		(50		)	2,924
Prepaid Expenses and Other Current Assets	79		9		265		5			358
Total Current Assets	2,689		1,242		4,931		(815		)	8,047
Goodwill	—		24		481		118			623
Intangible Assets	110		—		25		—			135
Deferred Income Taxes	—		20		76		9			105
Other Assets	287		101		266		—			654
Investments in Subsidiaries	4,401		412		—		(4,813		)	—
Property, Plant and Equipment	2,246		128		4,745		(27		)	7,092
Total Assets	$	9,733	$	1,927	$	10,524	$	(5,528	)	$	16,656
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	869	$	202	$	1,756	$	—		$	2,827
Accounts Payable to Affiliates	646		—		124		(770		)	—
Compensation and Benefits	372		32		370		—			774
Other Current Liabilities	314		29		696		(3		)	1,036
Notes Payable and Overdrafts	—		—		38		—			38
Long Term Debt and Capital Leases Due Within One Year	6		—		92		—			98
Total Current Liabilities	2,207		263		3,076		(773		)	4,773
Long Term Debt and Capital Leases	4,375		—		2,344		—			6,719
Compensation and Benefits	486		116		705		—			1,307
Deferred and Other Noncurrent Income Taxes	67		6		177		(7		)	243
Other Long Term Liabilities	736		31		149		—			916
Total Liabilities	7,871		416		6,451		(780		)	13,958
Commitments and Contingent Liabilities
Minority Shareholders’ Equity	—		—		398		197			595
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	275		—		—		—			275
Other Equity	1,587		1,511		3,434		(4,945		)	1,587
Goodyear Shareholders’ Equity	1,862		1,511		3,434		(4,945		)	1,862
Minority Shareholders’ Equity — Nonredeemable	—		—		241		—			241
Total Shareholders’ Equity	1,862		1,511		3,675		(4,945		)	2,103
Total Liabilities and Shareholders’ Equity	$	9,733	$	1,927	$	10,524	$	(5,528	)	$	16,656



	Condensed Consolidating Balance Sheet
	December 31, 2013
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	1,269	$	94	$	1,633	$	—		$	2,996
Accounts Receivable	872		203		1,360		—			2,435
Accounts Receivable From Affiliates	—		733		—		(733		)	—
Inventories	1,099		155		1,599		(37		)	2,816
Prepaid Expenses and Other Current Assets	68		10		315		4			397
Total Current Assets	3,308		1,195		4,907		(766		)	8,644
Goodwill	—		24		517		127			668
Intangible Assets	111		—		27		—			138
Deferred Income Taxes	—		24		121		12			157
Other Assets	288		101		211		—			600
Investments in Subsidiaries	4,325		386		—		(4,711		)	—
Property, Plant and Equipment	2,242		140		4,964		(26		)	7,320
Total Assets	$	10,274	$	1,870	$	10,747	$	(5,364	)	$	17,527
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	833	$	210	$	2,054	$	—		$	3,097
Accounts Payable to Affiliates	275		—		458		(733		)	—
Compensation and Benefits	373		33		352		—			758
Other Current Liabilities	347		34		713		(11		)	1,083
Notes Payable and Overdrafts	—		—		14		—			14
Long Term Debt and Capital Leases Due Within One Year	8		—		65		—			73
Total Current Liabilities	1,836		277		3,656		(744		)	5,025
Long Term Debt and Capital Leases	4,377		—		1,785		—			6,162
Compensation and Benefits	1,613		129		931		—			2,673
Deferred and Other Noncurrent Income Taxes	65		11		188		(8		)	256
Other Long Term Liabilities	777		32		157		—			966
Total Liabilities	8,668		449		6,717		(752		)	15,082
Commitments and Contingent Liabilities
Minority Shareholders’ Equity	—		—		361		216			577
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Preferred Stock	500		—		—		—			500
Common Stock	248		—		—		—			248
Other Equity	858		1,421		3,407		(4,828		)	858
Goodyear Shareholders’ Equity	1,606		1,421		3,407		(4,828		)	1,606
Minority Shareholders’ Equity — Nonredeemable	—		—		262		—			262
Total Shareholders’ Equity	1,606		1,421		3,669		(4,828		)	1,868
Total Liabilities and Shareholders’ Equity	$	10,274	$	1,870	$	10,747	$	(5,364	)	$	17,527



	Consolidating Statements of Operations
	Three Months Ended September 30, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,999		$	673		$	3,338		$	(1,353	)	$	4,657
Cost of Goods Sold	1,630			604			2,669			(1,387		)	3,516
Selling, Administrative and General Expense	228			43			383			(1		)	653
Rationalizations	—			—			15			—			15
Interest Expense	83			7			33			(15		)	108
Other (Income) Expense	(14		)	(1		)	32			49			66
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	72			20			206			1			299
United States and Foreign Taxes	6			5			88			1			100
Equity in Earnings of Subsidiaries	95			21			—			(116		)	—
Net Income (Loss)	161			36			118			(116		)	199
Less: Minority Shareholders’ Net Income (Loss)	—			—			38			—			38
Goodyear Net Income (Loss) available to Common Shareholders	$	161		$	36		$	80		$	(116	)	$	161
Comprehensive Income (Loss)	$	72		$	34		$	(22	)	$	(25	)	$	59
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			4			(17		)	(13		)
Goodyear Comprehensive Income (Loss)	$	72		$	34		$	(26	)	$	(8	)	$	72



	Consolidating Statements of Operations
	Three Months Ended September 30, 2013
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net Sales	$	2,131		$	676		$	3,246	$	(1,051	)	$	5,002
Cost of Goods Sold	1,810			605			2,620		(1,089		)	3,946
Selling, Administrative and General Expense	241			43			409		(7		)	686
Rationalizations	1			1			19		—			21
Interest Expense	82			7			28		(17		)	100
Other (Income) Expense	(77		)	(2		)	1		78			—
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	74			22			169		(16		)	249
United States and Foreign Taxes	7			7			41		(1		)	54
Equity in Earnings of Subsidiaries	106			10			—		(116		)	—
Net Income (Loss)	173			25			128		(131		)	195
Less: Minority Shareholders’ Net Income (Loss)	—			—			22		—			22
Goodyear Net Income (Loss)	173			25			106		(131		)	173
Less: Preferred Stock Dividends	7			—			—		—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	166		$	25		$	106	$	(131	)	$	166
Comprehensive Income (Loss)	$	241		$	23		$	164	$	(146	)	$	282
Less: Comprehensive Income (Loss) Attributable to Minority Interest	—			—			33		8			41
Goodyear Comprehensive Income (Loss)	$	241		$	23		$	131	$	(154	)	$	241



	Consolidating Statements of Operations
	Nine Months Ended September 30, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net Sales	$	5,864		$	1,927		$	9,361	$	(3,370	)	$	13,782
Cost of Goods Sold	4,808			1,734			7,461		(3,437		)	10,566
Selling, Administrative and General Expense	679			126			1,219		(6		)	2,018
Rationalizations	(1		)	—			81		—			80
Interest Expense	249			20			92		(46		)	315
Other (Income) Expense	(60		)	(10		)	170		142			242
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	189			57			338		(23		)	561
United States and Foreign Taxes	15			13			139		1			168
Equity in Earnings of Subsidiaries	149			37			—		(186		)	—
Net Income (Loss)	323			81			199		(210		)	393
Less: Minority Shareholders’ Net Income (Loss)	—			—			70		—			70
Goodyear Net Income (Loss)	323			81			129		(210		)	323
Less: Preferred Stock Dividends	7			—			—		—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	316		$	81		$	129	$	(210	)	$	316
Comprehensive Income (Loss)	$	352		$	96		$	153	$	(211	)	$	390
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			57		(19		)	38
Goodyear Comprehensive Income (Loss)	$	352		$	96		$	96	$	(192	)	$	352



	Consolidating Statements of Operations
	Nine Months Ended September 30, 2013
(In millions)	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net Sales	$	6,212		$	2,024	$	9,664	$	(3,151	)	$	14,749
Cost of Goods Sold	5,255			1,813		7,956		(3,292		)	11,732
Selling, Administrative and General Expense	695			127		1,212		(12		)	2,022
Rationalizations	6			2		33		—			41
Interest Expense	233			22		82		(50		)	287
Other (Income) Expense	(204		)	2		99		215			112
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	227			58		282		(12		)	555
United States and Foreign Taxes	14			41		100		(19		)	136
Equity in Earnings of Subsidiaries	181			—		—		(181		)	—
Net Income (Loss)	394			17		182		(174		)	419
Less: Minority Shareholders’ Net Income (Loss)	—			—		25		—			25
Goodyear Net Income (Loss)	394			17		157		(174		)	394
Less: Preferred Stock Dividends	22			—		—		—			22
Goodyear Net Income (Loss) available to Common Shareholders	$	372		$	17	$	157	$	(174	)	$	372
Comprehensive Income (Loss)	$	591		$	39	$	111	$	(122	)	$	619
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—		23		5			28
Goodyear Comprehensive Income (Loss)	$	591		$	39	$	88	$	(127	)	$	591