Consolidating Financial Information

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidating Financial Information

Consolidating Financial Information

Certain of our subsidiaries have guaranteed our obligations under 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, the $700 million outstanding principal amount of 7% senior notes due 2022 and the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 (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 or among 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. In 2015, the Parent Company acquired the common shares of a non-guarantor subsidiary from another non-guarantor subsidiary at a cost of $145 million. The transaction was settled by the cancellation of intercompany balances between the Parent Company and the transferring non-guarantor subsidiary. In addition, in 2015 the Parent Company capitalized approximately $90 million of intercompany receivables from a non-guarantor subsidiary with a corresponding increase in equity of the subsidiary.

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
	December 31, 2015
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	354	$	70	$	1,052	$	—		$	1,476
Accounts Receivable	814		136		1,083		—			2,033
Accounts Receivable From Affiliates	—		609		—		(609		)	—
Inventories	1,199		157		1,152		(44		)	2,464
Prepaid Expenses and Other Current Assets	51		3		111		3			168
Total Current Assets	2,418		975		3,398		(650		)	6,141
Goodwill	—		24		407		124			555
Intangible Assets	118		—		20		—			138
Deferred Income Taxes	2,049		19		73		—			2,141
Other Assets	246		81		353		7			687
Investments in Subsidiaries	4,088		383		—		(4,471		)	—
Property, Plant and Equipment	2,377		216		4,213		(29		)	6,777
Total Assets	$	11,296	$	1,698	$	8,464	$	(5,019	)	$	16,439
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	1,002	$	189	$	1,578	$	—		$	2,769
Accounts Payable to Affiliates	540		—		69		(609		)	—
Compensation and Benefits	411		29		226		—			666
Other Current Liabilities	328		16		547		(5		)	886
Notes Payable and Overdrafts	—		—		49		—			49
Long Term Debt and Capital Leases Due Within One Year	6		—		581		—			587
Total Current Liabilities	2,287		234		3,050		(614		)	4,957
Long Term Debt and Capital Leases	3,835		—		1,285		—			5,120
Compensation and Benefits	725		97		646		—			1,468
Deferred Income Taxes	—		1		92		(2		)	91
Other Long Term Liabilities	529		15		119		(2		)	661
Total Liabilities	7,376		347		5,192		(618		)	12,297
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	267		—		—		—			267
Other Equity	3,653		1,351		3,050		(4,401		)	3,653
Goodyear Shareholders’ Equity	3,920		1,351		3,050		(4,401		)	3,920
Minority Shareholders’ Equity — Nonredeemable	—		—		222		—			222
Total Shareholders’ Equity	3,920		1,351		3,272		(4,401		)	4,142
Total Liabilities and Shareholders’ Equity	$	11,296	$	1,698	$	8,464	$	(5,019	)	$	16,439

	Condensed Consolidating Balance Sheet
	December 31, 2014
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	674	$	89	$	1,398	$	—		$	2,161
Accounts Receivable	833		166		1,127		—			2,126
Accounts Receivable From Affiliates	—		623		—		(623		)	—
Inventories	1,151		148		1,410		(38		)	2,671
Prepaid Expenses and Other Current Assets	39		2		160		—			201
Total Current Assets	2,697		1,028		4,095		(661		)	7,159
Goodwill	—		24		462		115			601
Intangible Assets	114		—		24		—			138
Deferred Income Taxes	2,126		31		95		1			2,253
Other Assets	234		86		411		9			740
Investments in Subsidiaries	4,054		416		—		(4,470		)	—
Property, Plant and Equipment	2,329		132		4,721		(29		)	7,153
Total Assets	$	11,554	$	1,717	$	9,808	$	(5,035	)	$	18,044
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	910	$	191	$	1,777	$	—		$	2,878
Accounts Payable to Affiliates	557		—		66		(623		)	—
Compensation and Benefits	392		31		301		—			724
Other Current Liabilities	350		23		581		(4		)	950
Notes Payable and Overdrafts	—		—		30		—			30
Long Term Debt and Capital Leases Due Within One Year	6		—		142		—			148
Total Current Liabilities	2,215		245		2,897		(627		)	4,730
Long Term Debt and Capital Leases	4,375		—		1,841		—			6,216
Compensation and Benefits	666		127		883		—			1,676
Deferred Income Taxes	—		1		91		(2		)	90
Other Long Term Liabilities	688		35		188		(6		)	905
Total Liabilities	7,944		408		5,900		(635		)	13,617
Commitments and Contingent Liabilities
Minority Shareholders’ Equity	—		—		392		190			582
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	269		—		—		—			269
Other Equity	3,341		1,309		3,281		(4,590		)	3,341
Goodyear Shareholders’ Equity	3,610		1,309		3,281		(4,590		)	3,610
Minority Shareholders’ Equity — Nonredeemable	—		—		235		—			235
Total Shareholders’ Equity	3,610		1,309		3,516		(4,590		)	3,845
Total Liabilities and Shareholders’ Equity	$	11,554	$	1,717	$	9,808	$	(5,035	)	$	18,044

	Consolidating Statements of Operations
	Year Ended December 31, 2015
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,566		$	2,129		$	10,308		$	(3,560	)	$	16,443
Cost of Goods Sold	5,804			1,915			8,090			(3,645		)	12,164
Selling, Administrative and General Expense	1,053			172			1,392			(3		)	2,614
Rationalizations	13			—			101			—			114
Interest Expense	317			22			131			(58		)	412
Loss on Deconsolidation of Venezuelan Subsidiary	374			—			272			—			646
Other (Income) Expense	(433		)	(13		)	177			154			(115		)
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	438			33			145			(8		)	608
United States and Foreign Tax Expense	104			10			112			6			232
Equity in Earnings (Loss) of Subsidiaries	(27		)	19			—			8			—
Net Income (Loss)	307			42			33			(6		)	376
Less: Minority Shareholders’ Net Income	—			—			69			—			69
Goodyear Net Income (Loss)	$	307		$	42		$	(36	)	$	(6	)	$	307
Comprehensive Income (Loss)	$	535		$	54		$	46		$	(94	)	$	541
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			32			(26		)	6
Goodyear Comprehensive Income (Loss)	$	535		$	54		$	14		$	(68	)	$	535

	Year Ended December 31, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,915		$	2,487		$	12,051		$	(4,315	)	$	18,138
Cost of Goods Sold	6,457			2,237			9,622			(4,410		)	13,906
Selling, Administrative and General Expense	916			166			1,645			(7		)	2,720
Rationalizations	(6		)	—			101			—			95
Interest Expense	332			26			133			(63		)	428
Other (Income) Expense	(91		)	(11		)	228			176			302
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	307			69			322			(11		)	687
United States and Foreign Tax (Benefit) Expense	(2,026		)	14			174			4			(1,834		)
Equity in Earnings of Subsidiaries	119			28			—			(147		)	—
Net Income (Loss)	2,452			83			148			(162		)	2,521
Less: Minority Shareholders’ Net Income	—			—			69			—			69
Goodyear Net Income (Loss)	2,452			83			79			(162		)	2,452
Less: Preferred Stock Dividends	7			—			—			—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	2,445		$	83		$	79		$	(162	)	$	2,445
Comprehensive Income (Loss)	$	2,257		$	89		$	(11	)	$	(58	)	$	2,277
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			46			(26		)	20
Goodyear Comprehensive Income (Loss)	$	2,257		$	89		$	(57	)	$	(32	)	$	2,257

	Consolidating Statements of Operations
	Year Ended December 31, 2013
(In millions)	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Net Sales	$	8,324		$	2,690	$	12,721	$	(4,195	)	$	19,540
Cost of Goods Sold	7,001			2,415		10,399		(4,393		)	15,422
Selling, Administrative and General Expense	946			171		1,658		(17		)	2,758
Rationalizations	6			3		49		—			58
Interest Expense	315			29		114		(66		)	392
Other (Income) Expense	(251		)	5		83		260			97
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	307			67		418		21			813
United States and Foreign Tax (Benefit) Expense	22			43		88		(15		)	138
Equity in Earnings of Subsidiaries	344			5		—		(349		)	—
Net Income (Loss)	629			29		330		(313		)	675
Less: Minority Shareholders’ Net Income	—			—		46		—			46
Goodyear Net Income (Loss)	629			29		284		(313		)	629
Less: Preferred Stock Dividends	29			—		—		—			29
Goodyear Net Income (Loss) available to Common Shareholders	$	600		$	29	$	284	$	(313	)	$	600
Comprehensive Income (Loss)	$	1,242		$	107	$	353	$	(382	)	$	1,320
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—		69		9			78
Goodyear Comprehensive Income (Loss)	$	1,242		$	107	$	284	$	(391	)	$	1,242

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 2015
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	979		$	149		$	612		$	(53	)	$	1,687
Cash Flows from Investing Activities:
Capital Expenditures	(315		)	(119		)	(558		)	9			(983		)
Asset Dispositions	48			—			14			—			62
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary	—			—			(320		)	—			(320		)
Decrease (Increase) in Restricted Cash	—			—			(6		)	—			(6		)
Short Term Securities Acquired	—			—			(77		)	—			(77		)
Short Term Securities Redeemed	—			—			69			—			69
Capital Contributions Received and Loans Incurred	(70		)	—			(90		)	160			—
Capital Redemptions and Loans Paid	122			—			125			(247		)	—
Other Transactions	—			—			(7		)	—			(7		)
Total Cash Flows from Investing Activities	(215		)	(119		)	(850		)	(78		)	(1,262		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	55			—			118			(70		)	103
Short Term Debt and Overdrafts Paid	(15		)	(16		)	(123		)	70			(84		)
Long Term Debt Incurred	1,736			—			1,083			—			2,819
Long Term Debt Paid	(2,341		)	—			(974		)	—			(3,315		)
Common Stock Issued	53			—			—			—			53
Common Stock Repurchased	(180		)	—			—			—			(180		)
Common Stock Dividends Paid	(68		)	—			—			—			(68		)
Capital Contributions Received and Loans Incurred	90			12			58			(160		)	—
Capital Redemptions and Loans Paid	(125		)	(15		)	(107		)	247			—
Intercompany Dividends Paid	—			(17		)	(27		)	44			—
Transactions with Minority Interests in Subsidiaries	—			—			(9		)	—			(9		)
Debt Related Costs and Other Transactions	(18		)	—			(15		)	—			(33		)
Dissolution of Global Alliance	(271		)	—			—			—			(271		)
Total Cash Flows from Financing Activities	(1,084		)	(36		)	4			131			(985		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			(13		)	(112		)	—			(125		)
Net Change in Cash and Cash Equivalents	(320		)	(19		)	(346		)	—			(685		)
Cash and Cash Equivalents at Beginning of the Year	674			89			1,398			—			2,161
Cash and Cash Equivalents at End of the Year	$	354		$	70		$	1,052		$	—		$	1,476

	Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	(334	)	$	195		$	758		$	(279	)	$	340
Cash Flows from Investing Activities:
Capital Expenditures	(303		)	(19		)	(607		)	6			(923		)
Asset Dispositions	9			2			7			—			18
Decrease (Increase) in Restricted Cash	(1		)	—			6			—			5
Short Term Securities Acquired	—			—			(72		)	—			(72		)
Short Term Securities Redeemed	—			—			95			—			95
Capital Contributions Received and Loans Incurred	(382		)	—			(457		)	839			—
Capital Redemptions and Loans Paid	459			—			244			(703		)	—
Other Transactions	13			—			13			—			26
Total Cash Flows from Investing Activities	(205		)	(17		)	(771		)	142			(851		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	22			—			60			(36		)	46
Short Term Debt and Overdrafts Paid	(14		)	(22		)	(24		)	36			(24		)
Long Term Debt Incurred	601			—			1,241			—			1,842
Long Term Debt Paid	(608		)	—			(947		)	—			(1,555		)
Common Stock Issued	39			—			—			—			39
Common Stock Repurchased	(234		)	—			—			—			(234		)
Common Stock Dividends Paid	(60		)	—			—			—			(60		)
Preferred Stock Dividends Paid	(15		)	—			—			—			(15		)
Capital Contributions Received and Loans Incurred	457			47			335			(839		)	—
Capital Redemptions and Loans Paid	(244		)	—			(459		)	703			—
Intercompany Dividends Paid	—			(203		)	(70		)	273			—
Transactions with Minority Interests in Subsidiaries	—			—			(49		)	—			(49		)
Debt Related Costs and Other Transactions	—			—			(1		)	—			(1		)
Total Cash Flows from Financing Activities	(56		)	(178		)	86			137			(11		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			(5		)	(308		)	—			(313		)
Net Change in Cash and Cash Equivalents	(595		)	(5		)	(235		)	—			(835		)
Cash and Cash Equivalents at Beginning of the Year	1,269			94			1,633			—			2,996
Cash and Cash Equivalents at End of the Year	$	674		$	89		$	1,398		$	—		$	2,161

	Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	17		$	16		$	1,009		$	(104	)	$	938
Cash Flows from Investing Activities:
Capital Expenditures	(220		)	(19		)	(940		)	11			(1,168		)
Asset Dispositions	2			—			23			—			25
Decrease (Increase) in Restricted Cash	—			—			14			—			14
Short Term Securities Acquired	—			—			(105		)	—			(105		)
Short Term Securities Redeemed	—			—			89			—			89
Capital Contributions Received and Loans Incurred	(91		)	(11		)	(170		)	272			—
Capital Redemptions and Loans Paid	214			—			403			(617		)	—
Other Transactions	—			—			9			—			9
Total Cash Flows from Investing Activities	(95		)	(30		)	(677		)	(334		)	(1,136		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	14			—			121			(104		)	31
Short Term Debt and Overdrafts Paid	(90		)	(14		)	(120		)	104			(120		)
Long Term Debt Incurred	900			—			1,013			—			1,913
Long Term Debt Paid	(11		)	—			(670		)	—			(681		)
Common Stock Issued	26			—			—			—			26
Common Stock Repurchased	(4		)	—			—			—			(4		)
Common Stock Dividends Paid	(12		)	—			—			—			(12		)
Preferred Stock Dividends Paid	(29		)	—			—			—			(29		)
Capital Contributions Received and Loans Incurred	170			58			44			(272		)	—
Capital Redemptions and Loans Paid	(403		)	—			(214		)	617			—
Intercompany Dividends Paid	—			—			(93		)	93			—
Transactions with Minority Interests in Subsidiaries	—			—			(26		)	—			(26		)
Debt Related Costs and Other Transactions	(16		)	—			—			—			(16		)
Total Cash Flows from Financing Activities	545			44			55			438			1,082
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			(4		)	(165		)	—			(169		)
Net Change in Cash and Cash Equivalents	467			26			222			—			715
Cash and Cash Equivalents at Beginning of the Year	802			68			1,411			—			2,281
Cash and Cash Equivalents at End of the Year	$	1,269		$	94		$	1,633		$	—		$	2,996