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. Rationalization actions initiated in 2015 included a plan to close our Wolverhampton, U.K. mixing and retreading facility and to transfer the production to other manufacturing facilities in Europe, Middle East and Africa ("EMEA") and a plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA. We also initiated plans for selling, administrative and general expense ("SAG") headcount reductions in North America, EMEA and Latin America.

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	64			19			83
Reversed to the Statements of Operations	—			—			—
Incurred, Net of Foreign Currency Translation of $(9) million and $0 million, respectively ⁽¹⁾	(78		)	(19		)	(97		)
Balance at September 30, 2015	$	103		$	2		$	105


(1)	Incurred in the first nine months of 2015 of $97 million excludes $20 million of rationalization payments for labor claims relating to a previously closed facility in Greece. Refer to Note 3.

The accrual balance of $105 million at September 30, 2015 is expected to be substantially utilized within the next 12 months, and includes $36 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 and $27 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility.

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



	Three Months Ended					Nine Months Ended
(In millions)	September 30,					September 30,
	2015		2014			2015			2014
Current Year Plans
Associate Severance and Other Related Costs	$	11	$	8		$	46		$	17
Other Exit and Non-Cancelable Lease Costs	3		—			4			1
Current Year Plans - Net Charges	$	14	$	8		$	50		$	18

Prior Year Plans
Associate Severance and Other Related Costs	$	2	$	(2	)	$	18		$	43
Pension Curtailment Gain	—		—			(1		)	(22		)
Other Exit and Non-Cancelable Lease Costs	4		9			15			41
Prior Year Plans - Net Charges	6		7			32			62
Total Net Charges	$	20	$	15		$	82		$	80

Asset Write-off and Accelerated Depreciation Charges	$	3	$	—		$	5		$	3

Substantially all of the new charges for the three and nine months ended September 30, 2015 and 2014 related to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2015 include charges of $1 million and $28 million, respectively, related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Additional charges for the three and nine months ended September 30, 2015 primarily relate to plans to reduce manufacturing and SAG headcount in EMEA.

Net prior year plan charges for the three and nine months ended September 30, 2015 include charges of $2 million and $21 million, respectively, for associate severance and idle plant costs related to the closure of one of our manufacturing facilities in Amiens, France and our exit from the farm tire business in EMEA. In addition, net prior year plan charges for the three months ended September 30, 2014 of $7 million include a net credit of $(2) million primarily related to associate severance and idle plant costs related to the closure of one of our manufacturing facilities in Amiens, France, resulting from the impact of changes in tax laws and revised estimates. Net prior year plan charges for the nine months ended September 30, 2014 of $62 million include charges of $63 million for associate severance and idle plant costs, partially offset by a pension curtailment gain of $22 million, related to the closure of one of our manufacturing facilities in Amiens, France. Net charges for the nine months ended September 30, 2014 included reversals of $5 million for actions no longer needed for their originally intended purposes.

Approximately 800 associates will be released under plans initiated in 2015, of which approximately 100 associates have been released as of September 30, 2015. In the first nine months of 2015, approximately 200 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 800 associates remain to be released under rationalization plans. At September 30, 2015, approximately 800 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note 12.

Accelerated depreciation charges for the three and nine months ended September 30, 2015 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Accelerated depreciation charges for the three and nine months ended September 30, 2014 related to property and equipment in our Birmingham, U.K. manufacturing facility. Accelerated depreciation charges for all periods were recorded in cost of goods sold (“CGS”).