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Costs Associated with Rationalization Programs
 12 Months Ended
Dec. 31, 2015
Restructuring and Related Activities [Abstract]  
Costs Associated with Rationalization Programs
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, 2012
$
229

 
$
23

 
$
252

2013 charges
58

 
17

 
75

Incurred, Net of Foreign Currency Translation of $7 million and $0 million, respectively
(42
)
 
(31
)
 
(73
)
Reversed to the Statement of Operations
(13
)
 
(4
)
 
(17
)
Balance at December 31, 2013
$
232

 
$
5

 
$
237

2014 charges (1)
76

 
52

 
128

Incurred, Net of Foreign Currency Translation of $(18) million and $0 million, respectively (2)
(186
)
 
(49
)
 
(235
)
Reversed to the Statement of Operations
(5
)
 
(6
)
 
(11
)
Balance at December 31, 2014
$
117

 
$
2

 
$
119

2015 charges (1)
86

 
30

 
116

Incurred, Net of Foreign Currency Translation of $(12) million and $0 million, respectively (2)
(106
)
 
(25
)
 
(131
)
Reversed to the Statement of Operations
(1
)
 
—

 
(1
)
Balance at December 31, 2015
$
96

 
$
7

 
$
103


(1)    Charges in 2015 of $116 million exclude $1 million, and charges in 2014 of $128 million exclude $22 million, of pension     curtailment gains recorded in Rationalizations in the Statement of Operations.
(2)    Incurred in 2015 of $131 million excludes $25 million, and incurred in 2014 of $235 million excludes $20 million, of         rationalization payments for labor claims relating to a previously closed facility in Greece.
Significant 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 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 SAG headcount reductions in EMEA, North America and Latin America.
The accrual balance of $103 million at December 31, 2015 is expected to be substantially utilized within the next 12 months and includes $36 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility and the plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA, as well as $27 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 net rationalization charges included in Income before Income Taxes are as follows:
(In millions)
 
2015
 
2014
 
2013
Current Year Plans
 
 
 
 
 
 
Associate Severance and Other Related Costs
 
$
66

 
$
22

 
$
42

Other Exit and Non-Cancelable Lease Costs
 
7

 
1

 
3

    Current Year Plans - Net Charges
 
$
73

 
$
23

 
$
45

 
 
 
 
 
 
 
Prior Year Plans
 
 
 
 
 
 
Associate Severance and Other Related Costs
 
$
19

 
$
49

 
$
3

Pension Curtailment Gain
 
(1
)
 
(22
)
 
—

Other Exit and Non-Cancelable Lease Costs
 
23

 
45

 
10

    Prior Year Plans - Net Charges
 
41

 
72

 
13

        Total Net Charges
 
$
114

 
$
95

 
$
58

Asset Write-off and Accelerated Depreciation Charges
 
$
8

 
$
7

 
$
23


Rationalization activities initiated in 2015 consisted primarily of charges of $38 million related to the plan to close our Wolverhampton, U.K. mixing and retreading facility and a plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA. Additional charges for the year ended December 31, 2015 primarily related to plans to reduce manufacturing and SAG headcount in EMEA, North America and Latin America. Substantially all of the new charges related to future cash outflows.
Net prior year plan charges recognized in the year ended December 31, 2015 include charges of $33 million 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.
Approximately 800 associates will be released under plans initiated in 2015, of which approximately 200 associates have been released as of December 31, 2015. In 2015, approximately 200 associates were released under plans initiated in prior years, primarily related to the plan to exit the farm tire business in EMEA and the closure of one of our manufacturing facilities in Amiens, France. In total, approximately 700 associates remain to be released under rationalization plans. At December 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 19.
Accelerated depreciation charges in 2015 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS.
Rationalization activities initiated in 2014 consisted primarily of manufacturing headcount reductions related to EMEA's plans to improve operating efficiency. In addition, EMEA, Latin America and Asia Pacific also initiated plans to reduce SAG headcount. Net prior year plan charges for the year ended December 31, 2014 of $72 million include charges of $74 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.
Asset write-off and accelerated depreciation charges of $7 million in 2014 related to property and equipment in one of our manufacturing facilities in the U.K and property and equipment in one of our manufacturing facilities in Amiens, France.
Rationalization activities initiated in 2013 consisted primarily 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 through headcount reductions in all of our strategic business units.
Asset write-off and accelerated depreciation charges of $23 million in 2013 related to property and equipment in one of our manufacturing facilities in Amiens, France.