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Costs Associated with Rationalization Programs
 12 Months Ended
Dec. 31, 2017
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 costs.
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, 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

2016 charges (1)
202

 
16

 
218

Incurred, Net of Foreign Currency Translation of $(13) million and $0 million, respectively
(75
)
 
(18
)
 
(93
)
Reversed to the Statement of Operations
(9
)
 
—

 
(9
)
Balance at December 31, 2016
$
214

 
$
5

 
$
219

2017 charges (1)
103

 
32

 
135

Incurred, Net of Foreign Currency Translation of $25 million and $1 million, respectively
(94
)
 
(34
)
 
(128
)
Reversed to the Statement of Operations
(13
)
 
—

 
(13
)
Balance at December 31, 2017
$
210

 
$
3

 
$
213


(1)
Charges of $135 million, $218 million and $116 million in 2017, 2016 and 2015, respectively, exclude $13 million, $1 million and ($1) million of benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations.
(2)
Incurred in 2016 and 2015 of $93 million and $131 million, respectively, excludes $6 million and $25 million, respectively, of rationalization payments, primarily for labor claims relating to a previously closed facility in Greece.
Rationalization actions accrued at December 31, 2017 include $90 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, which was in furtherance of our strategy to capture the growing demand for premium, large-rim diameter tires in part by reducing excess capacity in declining, less profitable segments of the tire market. The remainder of the accrual balance at December 31, 2017 includes $53 million related to plans to reduce manufacturing headcount in Europe, Middle East and Africa ("EMEA"), $29 million related to global plans to reduce SAG headcount, and $13 million related to a SAG headcount reduction plan in EMEA.
The accrual balance at December 31, 2017 is expected to be substantially utilized in the next 12 months.
The net rationalization charges included in Income before Income Taxes are as follows:
(In millions)
 
2017
 
2016
 
2015
Current Year Plans
 
 
 
 
 
 
Associate Severance and Other Related Costs
 
$
81

 
$
188

 
$
66

Other Exit and Non-Cancelable Lease Costs
 
2

 
1

 
7

    Current Year Plans - Net Charges
 
$
83

 
$
189

 
$
73

 
 
 
 
 
 
 
Prior Year Plans
 
 
 
 
 
 
Associate Severance and Other Related Costs
 
$
9

 
$
5

 
$
19

Benefit Plan Curtailments and Settlements
 
13

 
1

 
(1
)
Other Exit and Non-Cancelable Lease Costs
 
30

 
15

 
23

    Prior Year Plans - Net Charges
 
52

 
21

 
41

        Total Net Charges
 
$
135

 
$
210

 
$
114

Asset Write-off and Accelerated Depreciation Charges
 
$
40

 
$
20

 
$
8


Substantially all of the new charges in 2017 related to future cash outflows. Net current year plan charges at December 31, 2017 include charges of $30 million related to reductions in manufacturing headcount in EMEA, $25 million related to a global plan to reduce SAG headcount, $20 million related to SAG headcount reductions in EMEA, and $8 million related to a plan to improve operating efficiency in EMEA.
Net prior year plan charges recognized in the year ended December 31, 2017 include charges of $35 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $8 million related to manufacturing headcount reductions in EMEA, and $7 million related to a separate global plan to reduce SAG headcount.
Net charges for the year ended December 31, 2017 included reversals of $13 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $730 million in charges through 2017 and approximately $35 million is expected to be incurred in future periods.
Approximately 600 associates will be released under new plans initiated in 2017, of which approximately 200 were released through December 31, 2017. In 2017, approximately 1,300 associates were released under plans initiated in prior years, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. Approximately 700 associates remain to be released under all ongoing rationalization plans.
At December 31, 2017, approximately 840 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note 19.
Asset write-off and accelerated depreciation charges in 2017 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS.
Rationalization activities initiated in 2016 consisted primarily of charges of $116 million related to the plan to close our tire manufacturing facility in Philippsburg, Germany, $34 million related to a global plan to reduce SAG headcount, and $25 million related to manufacturing headcount reductions in EMEA. Net prior year plan charges recognized in the year ended December 31, 2016 include charges of $12 million related to the closure of one of our manufacturing facilities in Amiens, France.
Accelerated depreciation charges in 2016 primarily related to the closure of our Wolverhampton, U.K. mixing and retreading facility and the plan to close our tire manufacturing facility in Philippsburg, Germany.
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 and Americas. Net prior year plan charges recognized in the year ended December 31, 2015 include charges of $33 million related to the closure of one of our manufacturing facilities in Amiens, France and our exit from the farm tire business in EMEA.
Accelerated depreciation charges in 2015 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility.