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, 2015	$	96		$	7		$	103
2016 Charges	55			7			62
Reversed to the Statements of Operations	(2		)	—			(2		)
Incurred, Net of Foreign Currency Translation of $1 million and $0 million, respectively	(36		)	(9		)	(45		)
Balance at June 30, 2016	$	113		$	5		$	118

The accrual balance of $118 million at June 30, 2016 is expected to be substantially utilized within the next 12 months, and includes $26 million related to manufacturing headcount reductions in certain countries in Europe, Middle East and Africa ("EMEA"), $25 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, and $18 million related to the closure of one of our manufacturing facilities in Amiens, France.

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



	Three Months Ended						Six Months Ended
(In millions)	June 30,						June 30,
	2016			2015			2016			2015
Current Year Plans
Associate Severance and Other Related Costs	$	43		$	35		$	43		$	35
Other Exit and Non-Cancelable Lease Costs	—			1			—			1
Current Year Plans - Net Charges	$	43		$	36		$	43		$	36

Prior Year Plans
Associate Severance and Other Related Costs	$	6		$	6		$	10		$	16
Pension Curtailment Gain	(1		)	(1		)	(1		)	(1		)
Other Exit and Non-Cancelable Lease Costs	—			5			7			11
Prior Year Plans - Net Charges	5			10			16			26
Total Net Charges	$	48		$	46		$	59		$	62

Asset Write-off and Accelerated Depreciation Charges	$	5		$	—		$	7		$	2

Substantially all of the new charges for the three and six months ended June 30, 2016 and 2015 related to future cash outflows. Net current year plan charges for the three and six months ended June 30, 2016 primarily related to manufacturing headcount reductions in EMEA to improve operating efficiency. In addition, we initiated a plan to reduce selling, administrative and general headcount.

Net prior year plan charges for the three and six months ended June 30, 2016 include charges of $3 million and $9 million, respectively, for associate severance and idle plant costs related to the closure of one of our manufacturing facilities in Amiens, France. Net prior year plan charges for the three and six months ended June 30, 2015 include charges of $7 million and $19 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 business in EMEA.

Net charges for the three and six months ended June 30, 2016 included reversals of $2 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $375 million in charges incurred prior to 2016 and approximately $25 million is expected to be incurred in future periods.

Approximately 300 associates will be released under new plans initiated in 2016. In the first six months of 2016, approximately 300 associates were released under plans initiated in prior years. In total, approximately 700 associates remain to be released under all ongoing rationalization plans.

At June 30, 2016, approximately 800 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note to the Consolidated Financial Statements No. 11, Commitments and Contingent Liabilities, in this Form10-Q.

Accelerated depreciation charges for the three and six months ended June 30, 2016 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Accelerated depreciation charges for the six months ended June 30, 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”).