Costs Associated with Rationalization Programs

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS

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

The following table shows the roll-forward of our liability between periods:



				Other Exit and
(In millions)	Associate-			Non-cancelable
	Related Costs			Lease Costs			Total
Balance at December 31, 2014	$	117		$	2		$	119
2015 Charges	10			6			16
Reversed to the Statements of Operations	—			—			—
Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively ⁽¹⁾	(33		)	(6		)	(39		)
Balance at March 31, 2015	$	94		$	2		$	96


(1)	Incurred in the first quarter of 2015 of $39 million excludes $3 million of rationalization payments for labor claims relating to a previously closed facility in Greece. Refer to Note 3.

No rationalization actions were initiated in the first quarter of 2015. The accrual balance of $96 million at March 31, 2015 is expected to be substantially utilized within the next 12 months and includes $67 million related to the plan to exit the farm tire business in EMEA and the closure of one of our manufacturing facilities in Amiens, France.

The following table shows net rationalization charges included in Income (Loss) before Income Taxes:



	Three Months Ended
(In millions)	March 31,
	2015		2014
Current Year Plans
Associate Severance and Other Related Costs	$	—	$	4
Other Exit and Non-Cancelable Lease Costs	—		1
Current Year Plans - Net Charges	$	—	$	5

Prior Year Plans
Associate Severance and Other Related Costs	$	10	$	49
Pension Curtailment Gain	—		(20		)
Other Exit and Non-Cancelable Lease Costs	6		7
Prior Year Plans - Net Charges	16		36
Total Net Charges	$	16	$	41

Asset Write-off and Accelerated Depreciation Charges	$	3	$	1

Substantially all of the new charges for the three months ended March 31, 2015 and 2014 related to future cash outflows. Net prior year plan charges in the first quarter of 2015 include charges of $12 million for associate severance and idle plant costs related to our exit from the farm business in EMEA and the closure of one of our manufacturing facilities in Amiens, France. In addition, net prior year plan charges in the first quarter of 2014 include charges of $50 million for associate severance and idle plant costs, partially offset by a pension curtailment gain of $20 million, related to the closure of one of our manufacturing facilities in Amiens, France. Net charges for the three months ended March 31, 2014 included reversals of $3 million for actions no longer needed for their originally intended purposes.

In the first quarter of 2015, approximately 100 associates were released under plans initiated in prior years, primarily related to our exit from the farm tire business in EMEA and the closure of one of our manufacturing facilities in Amiens, France. In total, approximately 100 associates remain to be released under rationalization plans. At March 31, 2015, approximately 800 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note 11.

Accelerated depreciation charges for the three months ended March 31, 2015 related to property and equipment in one of our manufacturing facilities in Amiens, France. Accelerated depreciation charges for all periods were recorded in cost of goods sold (“CGS”).

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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