10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2018

Commission File Number: 1-1927

THE GOODYEAR TIRE & RUBBER COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Ohio (State or Other Jurisdiction of Incorporation or Organization)	34-0253240 (I.R.S. Employer Identification No.)
200 Innovation Way, Akron, Ohio (Address of Principal Executive Offices)	44316-0001 (Zip Code)

(330) 796-2121

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o	Emerging growth company o
		(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Number of Shares of Common Stock,
Without Par Value, Outstanding at June 30, 2018: 237,015,745

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
	ITEM 1. FINANCIAL STATEMENTS
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
	ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
	ITEM 4. CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION
	ITEM 1. LEGAL PROCEEDINGS
	ITEM 1A. RISK FACTORS
	ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS
EX-10.1
EX-12.1
EX-31.1
EX-31.2
EX-32.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions, except per share amounts)	2018			2017		2018		2017
Net Sales (Note 2)	$	3,841		$	3,686	$	7,671	$	7,385
Cost of Goods Sold	2,949			2,785		5,925		5,545
Selling, Administrative and General Expense	588			579		1,179		1,155
Rationalizations (Note 3)	(2		)	27		35		56
Interest Expense	78			89		154		176
Other (Income) Expense (Note 4)	45			16		82		24
Income before Income Taxes	183			190		296		429
United States and Foreign Tax Expense (Note 5)	19			36		52		106
Net Income	164			154		244		323
Less: Minority Shareholders’ Net Income	7			7		12		10
Goodyear Net Income	$	157		$	147	$	232	$	313
Goodyear Net Income — Per Share of Common Stock
Basic	$	0.66		$	0.58	$	0.97	$	1.24
Weighted Average Shares Outstanding (Note 6)	239			252		240		252
Diluted	$	0.65		$	0.58	$	0.96	$	1.23
Weighted Average Shares Outstanding (Note 6)	241			256		242		256
Cash Dividends Declared Per Common Share (Note 13)	$	0.14		$	0.10	$	0.28	$	0.20

The accompanying notes are an integral part of these consolidated financial statements.

- 1-

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Net Income	$	164		$	154		$	244		$	323
Other Comprehensive Income (Loss):
Foreign currency translation, net of tax of ($6) and ($8) in 2018 ($16 and $19 in 2017)	(231		)	50			(149		)	134
Defined benefit plans:
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 and $16 in 2018 ($11 and $21 in 2017)	26			19			53			39
(Increase)/Decrease in net actuarial losses, net of tax of $5 and $6 in 2018 ($0 and $1 in 2017)	16			(1		)	19			3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 and $2 in 2018 ($0 and $0 in 2017)	4			—			4			—
Deferred derivative gains (losses), net of tax of $4 and $2 in 2018 (($5) and ($7) in 2017)	10			(8		)	6			(14		)
Reclassification adjustment for amounts recognized in income, net of tax of $1 and $2 in 2018 ($0 and ($1) in 2017)	2			(2		)	5			(3		)
Other Comprehensive Income (Loss)	(173		)	58			(62		)	159
Comprehensive Income (Loss)	(9		)	212			182			482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	(11		)	14			(4		)	23
Goodyear Comprehensive Income	$	2		$	198		$	186		$	459

The accompanying notes are an integral part of these consolidated financial statements.

- 2-

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
(In millions, except share data)	2018			2017
Assets:
Current Assets:
Cash and Cash Equivalents	$	975		$	1,043
Accounts Receivable, less Allowance — $108 ($116 in 2017)	2,388			2,025
Inventories:
Raw Materials	530			466
Work in Process	160			142
Finished Products	2,251			2,179
	2,941			2,787
Prepaid Expenses and Other Current Assets	265			224
Total Current Assets	6,569			6,079
Goodwill	576			595
Intangible Assets	138			139
Deferred Income Taxes (Note 5)	2,035			2,008
Other Assets	804			792
Property, Plant and Equipment, less Accumulated Depreciation — $10,110 ($10,078 in 2017)	7,233			7,451
Total Assets	$	17,355		$	17,064
Liabilities:
Current Liabilities:
Accounts Payable — Trade	$	2,880		$	2,807
Compensation and Benefits (Notes 10 and 11)	511			539
Other Current Liabilities	821			1,026
Notes Payable and Overdrafts (Note 8)	335			262
Long Term Debt and Capital Leases due Within One Year (Note 8)	286			391
Total Current Liabilities	4,833			5,025
Long Term Debt and Capital Leases (Note 8)	5,726			5,076
Compensation and Benefits (Notes 10 and 11)	1,369			1,515
Deferred Income Taxes (Note 5)	99			100
Other Long Term Liabilities	484			498
Total Liabilities	12,511			12,214
Commitments and Contingent Liabilities (Note 12)
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares — 237 and 240 million in 2018 and 2017 after deducting 41 and 38 million treasury shares in 2018 and 2017	237			240
Capital Surplus	2,214			2,295
Retained Earnings	6,208			6,044
Accumulated Other Comprehensive Loss	(4,022		)	(3,976		)
Goodyear Shareholders’ Equity	4,637			4,603
Minority Shareholders’ Equity — Nonredeemable	207			247
Total Shareholders’ Equity	4,844			4,850
Total Liabilities and Shareholders’ Equity	$	17,355		$	17,064

The accompanying notes are an integral part of these consolidated financial statements.

- 3-

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	June 30,
(In millions)	2018			2017
Cash Flows from Operating Activities:
Net Income	$	244		$	323
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities:
Depreciation and Amortization	392			387
Amortization and Write-Off of Debt Issuance Costs	8			14
Provision for Deferred Income Taxes	(55		)	45
Net Pension Curtailments and Settlements	3			1
Net Rationalization Charges (Note 3)	35			56
Rationalization Payments	(131		)	(54		)
Net (Gains) Losses on Asset Sales (Note 4)	—			(13		)
Pension Contributions and Direct Payments	(42		)	(45		)
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:
Accounts Receivable	(475		)	(470		)
Inventories	(222		)	(482		)
Accounts Payable — Trade	253			190
Compensation and Benefits	(30		)	(67		)
Other Current Liabilities	(100		)	27
Other Assets and Liabilities	36			(97		)
Total Cash Flows from Operating Activities	(84		)	(185		)
Cash Flows from Investing Activities:
Capital Expenditures	(442		)	(497		)
Asset Dispositions (Note 4)	2			2
Short Term Securities Acquired	(30		)	(43		)
Short Term Securities Redeemed	38			43
Other Transactions	(38		)	(3		)
Total Cash Flows from Investing Activities	(470		)	(498		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	1,012			290
Short Term Debt and Overdrafts Paid	(920		)	(303		)
Long Term Debt Incurred	3,544			3,456
Long Term Debt Paid	(2,933		)	(2,905		)
Common Stock Issued	3			11
Common Stock Repurchased (Note 13)	(100		)	(30		)
Common Stock Dividends Paid (Note 13)	(67		)	(50		)
Transactions with Minority Interests in Subsidiaries	(26		)	(5		)
Debt Related Costs and Other Transactions	6			(38		)
Total Cash Flows from Financing Activities	519			426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(25		)	37
Net Change in Cash, Cash Equivalents and Restricted Cash	(60		)	(220		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	1,110			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	1,050		$	969

The accompanying notes are an integral part of these consolidated financial statements.

- 4-

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America ("US GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).

Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2018.

Recently Adopted Accounting Standards

Effective January 1, 2018, we adopted an accounting standards update, and all related amendments, with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods or services. We applied the new guidance to all open contracts at the date of adoption using the modified retrospective method. We recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows:

	Balance at		Adjustment for			Balance at
(In millions)	December 31, 2017		New Standard			January 1, 2018
Accounts Receivable	$	2,025	$	3		$	2,028
Prepaid Expenses and Other Current Assets	224		7			231
Deferred Income Taxes — Asset	2,008		1			2,009
Accounts Payable — Trade	2,807		7			2,814
Other Current Liabilities	1,026		7			1,033
Retained Earnings	6,044		(3		)	6,041

The impact of the adoption of the standards update on our Consolidated Statements of Operations for the three and six month periods ended June 30, 2018 was an increase of $8 million and $7 million, respectively, to Net Sales, and an increase of$6 millionand$5 million, respectively, to Net Income.

The impact of the adoption of the standards update on our Consolidated Balance Sheet as of June 30, 2018 was as follows:

	As of June 30, 2018
			Balances
(In millions)	As Reported		Without Adoption		Effect of Change
Accounts Receivable	$	2,388	$	2,380	$	8
Prepaid Expenses and Other Current Assets	265		255		10
Deferred Income Taxes — Asset	2,035		2,036		(1		)
Accounts Payable — Trade	2,880		2,875		5
Other Current Liabilities	821		811		10
Retained Earnings	6,208		6,206		2

- 5-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update intended to improve the financial statement presentation of pension and postretirement benefits cost. The new guidance requires employers that offer defined benefit pension or other postretirement benefit plans to report service cost in the same income statement line as compensation costs and to report non-service related costs separately from service cost outside a sub-total of income from operations, if one is presented. In addition, the new guidance allows only service cost to be capitalized. We applied the new guidance using the retrospective method. In alignment with the new standards update, we reclassified $7 million and $12 million of expense from Cost of Goods Sold ("CGS") and $4 million and $7 million of expense from Selling, Administrative and General Expense (“SAG”), including corporate related costs of $3 million and $6 million, to Other (Income) Expense for the three and six months ended June 30, 2017, respectively. The provision of the new standards update that allows only service cost to be capitalized resulted in an additional one-time charge of $9 million which was recorded in Other (Income) Expense for the six months ended June 30, 2018.

We expect service related costs of approximately $35 million per year, including approximately $5 million per year of corporate related costs, will remain in CGS and SAG. Further, we expect approximately $90 million of non-service related costs, including approximately $15 million of corporate related costs and excluding settlement/curtailment charges, to be classified in Other (Income) Expense during 2018.

Effective January 1, 2018, we adopted an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers.  As a result of using the modified retrospective adoption approach, $2 million was recorded as a cumulative effect adjustment to increase Retained Earnings, with Deferred Income Taxes increasing by $7 million and Other Assets decreasing by $5 million. We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update with new guidance to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires the application of modification accounting if the value, vesting conditions or classification of the award changes. The adoption of this standards update did not impact our consolidated financial statements.

Recently Issued Accounting Standards

In February 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act. The new guidance requires additional disclosures, regardless of whether the optional reclassification is elected. The standards update is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. Goodyear has elected not to adopt this optional reclassification.

In August 2017, the FASB issued an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The standards update is effective using a modified retrospective approach, with the presentation and disclosure guidance required prospectively, for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements.

In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases.  Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term.  The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet.  Lessor accounting

- 6-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

is largely unchanged from the current accounting model.  The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. As originally issued, the standards update requires application at the beginning of the earliest comparative period presented at the time of adoption.  At its November 29, 2017 meeting, the FASB proposed allowing entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented.  While not yet issued, the FASB subsequently approved this update.  The standard also provides for certain practical expedients. We have completed aggregating our worldwide lease contracts, are currently in the process of evaluating these lease contracts and are implementing a new lease accounting system to support the accounting and disclosure requirements of this standards update. The adoption of this standards update will have a material impact on our financial statements as we have significant operating lease commitments that are off-balance sheet in accordance with current US GAAP.

Principles of Consolidation

The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation.

Restricted Cash

The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows:

	June 30,
(In millions)	2018		2017
Cash and Cash Equivalents	$	975	$	903
Restricted Cash	75		66
Total Cash, Cash Equivalents and Restricted Cash	$	1,050	$	969

Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs.  The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables.

Reclassifications and Adjustments

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation.

NOTE 2. NET SALES

The following table shows disaggregated net sales from contracts with customers by major source:

	Three Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	1,568	$	1,152	$	511	$	3,231
Other tire and related sales	159		98		32		289
Retail services and service related sales	144		9		19		172
Chemical	143		—		—		143
Other	4		1		1		6
Net Sales by reportable segment	$	2,018	$	1,260	$	563	$	3,841

- 7-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Six Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	3,074	$	2,361	$	1,029	$	6,464
Other tire and related sales	294		203		62		559
Retail services and service related sales	281		24		41		346
Chemical	291		—		—		291
Other	7		2		2		11
Net Sales by reportable segment	$	3,947	$	2,590	$	1,134	$	7,671

Tire unit sales consist of consumer, commercial, farm and off-the-road tire sales, including the sale of new Company-branded tires through Company-owned retail channels. Other tire and related sales consist of aviation, race, motorcycle and all-terrain vehicle tire sales, retread sales and other tire related sales. Sales of tires in this category are not included in reported tire unit information. Retail services and service related sales consist of automotive services performed for customers through our Company-owned retail channels, and includes service related products. Chemical sales relate to the sale of synthetic rubber and other chemicals to third-parties, and excludes intercompany sales. Other sales include items such as franchise fees and ancillary tire parts, such as tire rims, tire valves and valve stems.

Sales are recognized when obligations under the terms of a contract are satisfied and control is transferred. This generally occurs with shipment or delivery, depending on the terms of the underlying contract, or when services have been rendered. Sales are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The amount of consideration we receive and sales we recognize can vary due to changes in sales incentives, rebates, rights of return or other items we offer our customers, for which we estimate the expected amounts based on an analysis of historical experience, or as the most likely amount in a range of possible outcomes. Payment terms with customers vary by region and customer, but are generally 30-90 days or at the point of sale for our consumer retail locations. Net sales exclude sales, value added and other taxes. Costs to obtain contracts are generally expensed as incurred due to the short term nature of individual contracts. Incidental items that are immaterial in the context of the contract are recognized as expense as incurred. We have elected to recognize the costs incurred for transportation of products to customers as a component of CGS.

When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities and Other Long Term Liabilities in the Consolidated Balance Sheet totaled $57 million and $45 million, respectively, at June 30, 2018. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met.

The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six months ended June 30, 2018:

(In millions)
Balance at December 31, 2017	$	121
Revenue deferred during period	55
Revenue recognized during period	(74		)
Impact of foreign currency translation	—
Balance at June 30, 2018	$	102

- 8-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 3. 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 and excess manufacturing capacity and associate headcount.

The following table shows the roll-forward of our liability between periods:

				Other Exit and
	Associate-			Non-cancelable
(In millions)	Related Costs			Lease Costs			Total
Balance at December 31, 2017	$	210		$	3		$	213
2018 Charges	36			11			47
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively	(120		)	(12		)	(132		)
Reversed to the Statements of Operations	(12		)	—			(12		)
Balance at June 30, 2018	$	114		$	2		$	116

The accrual balance of $116 million at June 30, 2018 is expected to be substantially utilized in the next 12 months and includes $44 million related to global plans to reduce SAG headcount as well as a separate SAG headcount reduction plan in Europe, Middle East and Africa ("EMEA"), $40 million related to plans to reduce manufacturing headcount in EMEA, $11 million related to plans to improve operating efficiency in EMEA, and $8 million related to the closure of our tire manufacturing facility in Philippsburg, Germany.

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2018			2017		2018			2017
Current Year Plans
Associate Severance and Other Related Costs	$	1		$	2	$	32		$	25
Other Exit and Non-Cancelable Lease Costs	—			1		—			1
Current Year Plans - Net Charges	$	1		$	3	$	32		$	26
Prior Year Plans
Associate Severance and Other Related Costs	$	(6	)	$	17	$	(8	)	$	17
Other Exit and Non-Cancelable Lease Costs	3			7		11			13
Prior Year Plans - Net Charges	(3		)	24		3			30
Total Net Charges	$	(2	)	$	27	$	35		$	56
Asset Write-off and Accelerated Depreciation Charges	$	1		$	21	$	2		$	29

Substantially all of the new charges for the three and six months ended June 30, 2018 and 2017 related to future cash outflows. Net current year plan charges for the three and six months ended June 30, 2018 include charges of $1 million and $26 million, respectively, related to a global plan to reduce SAG headcount. Net current year plan charges for the six months ended June 30, 2018 also included charges of $6 million related to a plan to improve operating efficiency in EMEA. Net current year plan charges for the three and six months ended June 30, 2017 include charges of $2 million and $19 million, respectively, related to SAG headcount reductions in EMEA and $1 million and $7 million, respectively, related to a plan to improve operating efficiency in EMEA.

Net prior year plan charges for the three and six months ended June 30, 2018 include charges of $2 million and $9 million, respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany. Net prior year plan charges for the three and six months ended June 30, 2018 also included reversals of $7 million and $12 million, respectively, for actions no longer needed for their originally intended purposes. Net prior year plan charges for the three and six months ended June 30, 2017 include $18 million and $20 million, respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany, and charges of $2 million and $5 million, respectively, related to the closure of 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.

- 9-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Ongoing rationalization plans had approximately $730 million in charges incurred prior to 2018 and approximately $16 million is expected to be incurred in future periods.

Approximately 300 associates will be released under new plans initiated in 2018, of which approximately 100 were released through June 30, 2018. In the first six months of 2018, approximately 300 associates were released under plans initiated in prior years, including those related to the closure of our tire manufacturing facility in Philippsburg, Germany. Approximately 600 associates remain to be released under all ongoing rationalization plans.

Approximately 850 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. 12, Commitments and Contingent Liabilities, in this Form 10-Q.

Asset write-off and accelerated depreciation charges for the three and six months ended June 30, 2018 and 2017 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany and were recorded in CGS.

NOTE 4. OTHER (INCOME) EXPENSE

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Non-service related pension and other postretirement benefits cost	$	25		$	11		$	59		$	19
Financing fees and financial instruments	9			32			18			40
Royalty income	(5		)	(11		)	(10		)	(16		)
Interest income	(2		)	(3		)	(6		)	(7		)
Net foreign currency exchange (gains) losses	2			(2		)	(5		)	(3		)
General and product liability expense (income) - discontinued products	(3		)	1			(2		)	3
Net (gains) losses on asset sales	(2		)	(12		)	—			(13		)
Miscellaneous expense	21			—			28			1
	$	45		$	16		$	82		$	24

Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. Non-service related pension and other postretirement benefits cost for the six months ended June 30, 2018 includes expense of $9 million related to the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory. For further information, refer to Note to the Consolidated Financial Statements No. 10, Pension, Savings and Other Postretirement Benefit Plans, in this Form 10-Q.

Financing fees and financial instruments consist of commitment fees and charges incurred in connection with financing transactions. Financing fees and financial instruments for the three and six months ended June 30, 2017 include a redemption premium of $25 million related to the redemption of our $700 million7% senior notes due 2022 in May 2017.

Net (gains) losses on asset sales for the three and six months ended June 30, 2017 include a gain of $6 million related to the sale of a former wire plant site in Luxembourg.

Miscellaneous expense for the three and six months ended June 30, 2018 includes transaction costs of $10 million and $14 million, respectively, related to our announced TireHub, LLC ("TireHub") joint venture and continuing repair expenses of $8 million and $11 million, respectively, incurred by the Company as a direct result of hurricanes Harvey and Irma during the third quarter of 2017.

Other (Income) Expense also includes royalty income which is derived primarily from licensing arrangements related to divested businesses as well as other licensing arrangements, interest income, which primarily consists of amounts earned on cash deposits, net foreign currency exchange (gains) and losses, and general and product liability expense (income) - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries.

- 10-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5. INCOME TAXES

For the second quarter of 2018, we recorded tax expense of $19 million on income before income taxes of $183 million. For the first six months of 2018, we recorded tax expense of $52 million on income before income taxes of $296 million. Income tax expense for the three and six months ended June 30, 2018 includes discrete benefits of $28 million and $21 million, respectively. The net discrete tax benefit includes a second quarter benefit of $25 million from recording foreign tax credits on dividends, primarily from subsidiaries in Japan and Singapore, to the United States, and a first quarter charge of $7 million and a second quarter benefit of $4 million to adjust our provisional tax obligation for the one-time transition tax imposed by the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States.

The one-time transition tax is a tax on certain previously untaxed accumulated earnings and profits of our foreign subsidiaries. We were able to reasonably estimate the one-time transition tax and record an initial provisional tax obligation of $77 million at December 31, 2017. During the first quarter of 2018, the one-time transition tax obligation increased by $7 million as a result of guidance that required the tax to be calculated using year-end exchange rates as opposed to average exchange rates. During the second quarter of 2018, the obligation decreased by $4 million as a result of guidance that clarified that certain accrued income taxes can reduce the amount subject to the one-time transition tax. Accordingly, as of June 30, 2018, we have now recorded a provisional transition tax obligation totaling $80 million. At December 31, 2017, we established a provisional reserve of $19 million related to foreign withholding taxes that we would incur should we repatriate certain earnings. During the three months ending June 30, 2018, our reserve decreased to $8 million to reflect payments of withholding tax on dividends from foreign subsidiaries. We continue to consider new guidance related to these provisional amounts and are in the process of gathering and analyzing additional information with respect to our 2017 earnings and profits to more precisely compute the amount of the one-time transition tax.

In the second quarter of 2017, we recorded tax expense of $36 million on income before income taxes of $190 million. For the first six months of 2017, we recorded tax expense of $106 million on income before income taxes of $429 million. Income tax expense for the three and six months ended June 30, 2017 was favorably impacted by $9 million and $11 million, respectively, of various discrete tax adjustments.

We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate for the three and six months ended June 30, 2018 and the U.S. statutory rate of 21% primarily relates to the discrete items noted above and a benefit from our foreign derived intangible income deduction provided for in the Tax Act, partially offset by an overall higher effective tax rate in the foreign jurisdictions in which we operate. The difference between our effective tax rate for the three and six months ended June 30, 2017 and the then applicable U.S. statutory rate of 35% was primarily attributable to the discrete items noted above and an overall lower effective tax rate in the foreign jurisdictions in which we operate.

The Tax Act subjects a U.S. parent to the base erosion minimum tax ("BEAT") and a current tax on its global intangible low-taxed income ("GILTI"). We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We estimate that the impact from the BEAT and GILTI taxes will not be material to our income tax provision.

Our losses in various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of our net deferred tax assets. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. If recent positive evidence provided by the profitability in our Brazilian subsidiary continues, it will provide us the opportunity to apply greater significance to our forecasts in assessing the need for a valuation allowance. We believe it is reasonably possible that sufficient positive evidence required to release all, or a portion, of its valuation allowance will exist within the next twelve months. This may result in a reduction of the valuation allowance and a one-time tax benefit of up to $20 million.

Based on positive evidence and future sources of income in the U.S., it is more likely than not that our foreign tax credits of approximately $750 million as of December 31, 2017, will be fully utilized.

We are open to examination in the United States for 2017 and in Germany from 2013 onward. Generally, for our remaining tax jurisdictions, years from 2012 onward are still open to examination.

- 11-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6. EARNINGS PER SHARE

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock.

Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2018		2017		2018		2017
Earnings per share — basic:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Earnings per common share — basic	$	0.66	$	0.58	$	0.97	$	1.24
Earnings per share — diluted:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Dilutive effect of stock options and other dilutive securities	2		4		2		4
Weighted average shares outstanding — diluted	241		256		242		256
Earnings per common share — diluted	$	0.65	$	0.58	$	0.96	$	1.23

Weighted average shares outstanding - diluted for the three and six months ended June 30, 2018 exclude approximately 2 million and 1 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and six months ended June 30, 2017.

- 12-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 7. BUSINESS SEGMENTS

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Sales:
Americas	$	2,018		$	2,029		$	3,947		$	3,987
Europe, Middle East and Africa	1,260			1,114			2,590			2,353
Asia Pacific	563			543			1,134			1,045
Net Sales	$	3,841		$	3,686		$	7,671		$	7,385
Segment Operating Income:
Americas	$	154		$	218		$	281		$	434
Europe, Middle East and Africa	100			80			178			181
Asia Pacific	70			71			146			144
Total Segment Operating Income	$	324		$	369		$	605		$	759
Less:
Rationalizations	$	(2	)	$	27		$	35		$	56
Interest expense	78			89			154			176
Other (income) expense (Note 4)	45			16			82			24
Asset write-offs and accelerated depreciation	1			21			2			29
Corporate incentive compensation plans	3			12			7			27
Intercompany profit elimination	(1		)	(2		)	(4		)	(5		)
Retained expenses of divested operations	2			3			5			6
Other	15			13			28			17
Income before Income Taxes	$	183		$	190		$	296		$	429

- 13-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Rationalizations:
Americas	$	—		$	1		$	3		$	2
Europe, Middle East and Africa	(1		)	26			26			53
Asia Pacific	—			—			3			1
Total Segment Rationalizations	$	(1	)	$	27		$	32		$	56
Corporate	(1		)	—			3			—
Total Rationalizations	$	(2	)	$	27		$	35		$	56
Net (Gains) Losses on Asset Sales:
Americas	$	(2	)	$	(2	)	$	(2	)	$	(3	)
Europe, Middle East and Africa	—			(10		)	2			(10		)
Total Net (Gains) Losses on Asset Sales	$	(2	)	$	(12	)	$	—		$	(13	)

Asset Write-offs and Accelerated Depreciation:
Europe, Middle East and Africa	$	1	$	21	$	2	$	29
Total Asset Write-offs and Accelerated Depreciation	$	1	$	21	$	2	$	29

NOTE 8. FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS

At June 30, 2018, we had total credit arrangements of $8,632 million, of which $2,248 million were unused. At that date, 40% of our debt was at variable interest rates averaging 4.08%.

Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year and Short Term Financing Arrangements

At June 30, 2018, we had short term committed and uncommitted credit arrangements totaling $588 million, of which $253 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates.

- 14-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents amounts due within one year:

	June 30,			December 31,
(In millions)	2018			2017
Notes payable and overdrafts	$	335		$	262
Weighted average interest rate	4.17		%	5.00		%
Chinese credit facilities	$	57		$	113
Other foreign and domestic debt (including capital leases)	229			278
Long term debt and capital leases due within one year	$	286		$	391
Weighted average interest rate	4.89		%	6.86		%
Total obligations due within one year	$	621		$	653

Long Term Debt and Capital Leases and Financing Arrangements

At June 30, 2018, we had long term credit arrangements totaling $8,044 million, of which $1,995 million were unused.

The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates:

	June 30, 2018					December 31, 2017
				Interest					Interest
(In millions)	Amount			Rate		Amount			Rate
Notes:
8.75% due 2020	$	277				$	275
5.125% due 2023	1,000					1,000
3.75% Euro Notes due 2023	291					300
5% due 2026	900					900
4.875% due 2027	700					700
7% due 2028	150					150
Credit Facilities:
$2.0 billion first lien revolving credit facility due 2021	340			3.26	%	—			—
Second lien term loan facility due 2025	400			4.05	%	400			3.50	%
€550 million revolving credit facility due 2020	310			3.79	%	—			—
Pan-European accounts receivable facility	177			0.94	%	224			0.90	%
Mexican credit facilities	340			3.83	%	340			3.14	%
Chinese credit facilities	173			4.99	%	212			4.87	%
Other foreign and domestic debt(1)	954			5.43	%	967			6.02	%
	6,012					5,468
Unamortized deferred financing fees	(39		)			(41		)
	5,973					5,427
Capital lease obligations	39					40
	6,012					5,467
Less portion due within one year	(286		)			(391		)
	$	5,726				$	5,076

(1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and Americas Headquarters.

- 15-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTES

At June 30, 2018, we had $3,318 million of outstanding notes, compared to $3,325 million at December 31, 2017.

CREDIT FACILITIES

$2.0 billion Amended and Restated First Lien Revolving Credit Facility due 2021

Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million. Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to $250 million. Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in a variety of collateral. Based on our current liquidity, amounts drawn under this facility bear interest at LIBOR plus 125 basis points, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

Availability under the facility is subject to a borrowing base, which is based primarily on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the value of our principal trademarks, and (iii) certain cash in an amount not to exceed $200 million. To the extent that our eligible accounts receivable and inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. As of June 30, 2018, our borrowing base, and therefore our availability, under this facility was $361 million below the facility's stated amount of $2.0 billion.

The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2015. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries.

At June 30, 2018, we had $340 million of borrowings and $37 million of letters of credit issued under the revolving credit facility. At December 31, 2017, we had no borrowings and $37 million of letters of credit issued under the revolving credit facility.

$400 million Amended and Restated Second Lien Term Loan Facility due 2025

In March 2018, we amended and restated our second lien term loan facility. As a result of the amendment, the term loan, which previously matured on April 30, 2019, now matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). After March 7, 2018 and prior to September 3, 2018, (i) loans under the facility may not be prepaid or repaid with the proceeds of term loan indebtedness, or converted into or replaced by new term loans, bearing interest at an effective interest rate that is less than the effective interest rate then applicable to such loans and (ii) no amendment of the facility may be made that, directly or indirectly, reduces the effective interest rate applicable to the loans under the facility, in each case unless we pay a fee equal to 1.0% of the principal amount of the loans so affected. In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility.

Our obligations under our second lien term loan facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries and are secured by second priority security interests in the same collateral securing the $2.0 billion first lien revolving credit facility.

At June 30, 2018 and December 31, 2017, the amounts outstanding under this facility were $400 million.

€550 million Amended and Restated Senior Secured European Revolving Credit Facility due 2020

Our amended and restated €550 million European revolving credit facility consists of (i) a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a €425 million all-borrower tranche that is available to Goodyear Dunlop Tires Europe B.V. ("GDTE"), GDTG and Goodyear Dunlop Tires Operations S.A. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under this facility will bear interest at LIBOR plus 175 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 175 basis points for loans denominated in euros, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

- 16-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GDTE and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility.

The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2014. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries.

At June 30, 2018, there were $140 million (€120 million) of borrowings outstanding under the German tranche, $170 million (€146 million) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2017, there were no borrowings and no letters of credit outstanding under the European revolving credit facility.

Accounts Receivable Securitization Facilities (On-Balance Sheet)

GDTE and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2019. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €30 million and not more than €450 million. For the period from October 16, 2017 to October 15, 2018, the designated maximum amount of the facility was reduced to €275 million.

The facility involves an ongoing daily sale of substantially all of the trade accounts receivable of certain GDTE subsidiaries to a bankruptcy-remote French company controlled by one of the liquidity banks in the facility. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances.

The funding commitments under the facility will expire upon the earliest to occur of: (a) September 25, 2019, (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 15, 2018.

At June 30, 2018, the amounts available and utilized under this program totaled $177 million (€152 million). At December 31, 2017, the amounts available and utilized under this program totaled $224 million (€187 million). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases.

For a description of the collateral securing the credit facilities described above as well as the covenants applicable to them, refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in our 2017 Form 10-K.

Accounts Receivable Factoring Facilities (Off-Balance Sheet)

We have sold certain of our trade receivables under off-balance sheet programs. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At June 30, 2018, the gross amount of receivables sold was $513 million, compared to $572 million at December 31, 2017.

Other Foreign Credit Facilities

A Mexican subsidiary and a U.S. subsidiary have several financing arrangements in Mexico. At June 30, 2018 and December 31, 2017, the amounts available and utilized under these facilities were $340 million. The facilities ultimately mature in 2020. The facilities contain covenants relating to the Mexican and U.S. subsidiary and have customary representations and warranties and defaults relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the applicable facilities.

A Chinese subsidiary has several financing arrangements in China. At June 30, 2018, these non-revolving credit facilities had total unused availability of $123 million and can only be used to finance the expansion of our manufacturing facility in China. At June 30, 2018 and December 31, 2017, the amounts outstanding under these facilities were $173 million and $212 million, respectively. The facilities ultimately mature in 2025 and principal amortization began in 2015. The facilities contain covenants relating to the Chinese subsidiary and have customary representations and warranties and defaults relating to the Chinese subsidiary’s ability to perform its obligations under the facilities. At June 30, 2018 and December 31, 2017, restricted cash related to funds obtained under these credit facilities was $9 million and $7 million, respectively.

- 17-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

DERIVATIVE FINANCIAL INSTRUMENTS

We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes.

Foreign Currency Contracts

We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation.

The following table presents the fair values for foreign currency contracts not designated as hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	26		$	3
Other current liabilities	(5		)	(9		)

At June 30, 2018 and December 31, 2017, these outstanding foreign currency derivatives had notional amounts of $1,928 million and $1,409 million, respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $43 million and $45 million for the three and six months ended June 30, 2018, respectively, and net transaction losses on derivatives of $41 million and $45 million for the three and six months ended June 30, 2017, respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures.

The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	5		$	1
Other current liabilities	(2		)	(8		)
Fair Values — Long term asset (liability):
Other assets	$	2		$	—
Other long term liabilities	—			(2		)

At June 30, 2018 and December 31, 2017, these outstanding foreign currency derivatives had notional amounts of $263 million and $250 million, respectively, and primarily related to U.S. dollar denominated intercompany transactions.

We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets.

The following table presents information related to foreign currency contracts designated as cash flow hedging instruments (before tax and minority):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions) (Income) Expense	2018			2017			2018			2017
Amounts deferred to Accumulated Other Comprehensive Loss ("AOCL")	$	(14	)	$	13		$	(8	)	$	21
Amount of deferred (gain) loss reclassified from AOCL into CGS	3			(2		)	7			(4		)
Amounts excluded from effectiveness testing	(1		)	—			(1		)	(1		)

- 18-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

There is no estimated net amount of deferred gains at June 30, 2018 that are expected to be reclassified to earnings within the next twelve months.

The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that are recognized market makers at the time we entered into those contracts. We seek to control our credit exposure to these counterparties by diversifying across multiple counterparties, by setting counterparty credit limits based on long term credit ratings and other indicators of counterparty credit risk such as credit default swap spreads, and by monitoring the financial strength of these counterparties on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to counterparties in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a counterparty. However, the inability of a counterparty to fulfill its contractual obligations to us could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs.

NOTE 9. FAIR VALUE MEASUREMENTS

The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June 30, 2018 and December 31, 2017:

	Total Carrying Value in the Consolidated Balance Sheet				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In millions)	2018		2017		2018		2017		2018		2017		2018		2017
Assets:
Investments	$	10	$	11	$	10	$	11	$	—	$	—	$	—	$	—
Foreign Exchange Contracts	33		4		—		—		33		4		—		—
Total Assets at Fair Value	$	43	$	15	$	10	$	11	$	33	$	4	$	—	$	—
Liabilities:
Foreign Exchange Contracts	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—
Total Liabilities at Fair Value	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—

The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In millions)	2018		2017
Fixed Rate Debt(1):
Carrying amount — liability	$	3,604	$	3,616
Fair value — liability	3,541		3,786
Variable Rate Debt(1):
Carrying amount — liability	$	2,369	$	1,811
Fair value — liability	2,353		1,811

(1) Excludes Notes Payable and Overdrafts of $335 million and $262 million at June 30, 2018 and December 31, 2017, respectively, of which $184 million and $110 million, respectively, are at fixed rates and $151 million and $152 million, respectively, are at variable rates.  The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.

Long term debt with fair values of $3,618 million and $3,857 million at June 30, 2018 and December 31, 2017, respectively, were estimated using quoted Level 1 market prices.  The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 10. PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	1		$	1		$	2		$	2
Interest cost	39			41			79			81
Expected return on plan assets	(54		)	(61		)	(109		)	(121		)
Amortization of net losses	28			28			56			56
Net periodic pension cost	$	14		$	9		$	28		$	18
Net curtailments/settlements/termination benefits	3			1			3			1
Total defined benefit pension cost	$	17		$	10		$	31		$	19

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	7		$	8		$	14		$	15
Interest cost	17			18			35			35
Expected return on plan assets	(18		)	(20		)	(36		)	(39		)
Amortization of net losses	8			8			15			16
Net periodic pension cost	$	14		$	14		$	28		$	27

Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments and settlements are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2018. For the three and six months ended June 30, 2018, we contributed $8 million and $19 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2018 and 2017 was $28 million in both periods, and for the six months ended June 30, 2018 and 2017 was $57 million and $58 million, respectively.

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense (credit) for the three months ended June 30, 2018 and 2017 was $3 million and $(1) million, respectively, and for the six months ended June 30, 2018 and 2017 was $6 million and $(3) million, respectively.

NOTE 11. STOCK COMPENSATION PLANS

Our Board of Directors granted 0.8 million restricted stock units and0.2 million performance share units during the six months ended June 30, 2018 under our stock compensation plans.

We measure the fair value of grants of restricted stock units and performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. The weighted average fair value per share was $29.46 for restricted stock units and $29.04 for performance share units granted during the six months ended June 30, 2018.

We recognized stock-based compensation expense of $3 million and $5 million during the three and six months ended June 30, 2018, respectively. At June 30, 2018, unearned compensation cost related to the unvested portion of all stock-based awards was approximately $39 million and is expected to be recognized over the remaining vesting period of the respective grants, through

- 20-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

the second quarter of 2022. We recognized stock-based compensation expense of $6 million and $12 million during the three and six months ended June 30, 2017, respectively.

NOTE 12. COMMITMENTS AND CONTINGENT LIABILITIES

Environmental Matters

We have recorded liabilities totaling $46 million at both June 30, 2018 and December 31, 2017, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $11 million and $10 million were included in Other Current Liabilities at June 30, 2018 and December 31, 2017, respectively. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims.

Since many of the remediation activities related to environmental matters vary substantially in duration and cost from site to site and the associated costs for each vary depending on the mix of unique site characteristics, in some cases we cannot reasonably estimate a range of possible losses. Although it is not possible to estimate with certainty the outcome of all of our environmental matters, management believes that potential losses in excess of current reserves for environmental matters, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations.

Workers’ Compensation

We have recorded liabilities, on a discounted basis, totaling $237 million and $243 million for anticipated costs related to workers’ compensation at June 30, 2018 and December 31, 2017, respectively. Of these amounts, $46 million and $45 million were included in Current Liabilities as part of Compensation and Benefits at June 30, 2018 and December 31, 2017, respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At June 30, 2018 and December 31, 2017, the liability was discounted using a risk-free rate of return. At June 30, 2018, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $30 million.

General and Product Liability and Other Litigation

We have recorded liabilities totaling $317 million and $316 million, including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at June 30, 2018 and December 31, 2017, respectively. Of these amounts, $52 million and $55 million was included in Other Current Liabilities at June 30, 2018 and December 31, 2017, respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at June 30, 2018, we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates.

We have recorded an indemnification asset within Accounts Receivable of $4 million and within Other Assets of $31 million for Sumitomo Rubber Industries, Ltd.'s ("SRI") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions.

Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 140,400 claims by defending, obtaining the dismissal thereof, or entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $537 million through June 30, 2018 and $529 million through December 31, 2017.

- 21-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly.

	Six Months Ended			Year Ended
(Dollars in millions)	June 30, 2018			December 31, 2017
Pending claims, beginning of period	54,300			64,400
New claims filed	900			1,900
Claims settled/dismissed	(5,700		)	(12,000		)
Pending claims, end of period	49,500			54,300
Payments (1)	$	7		$	16

(1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution.

We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $168 million and $167 million at June 30, 2018 and December 31, 2017, respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten-year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant.

We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery.

We recorded a receivable related to asbestos claims of $116 million and $113 million at June 30, 2018 and December 31, 2017, respectively. We expect that approximately 70% of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $15 million was included in Current Assets as part of Accounts Receivable at June 30, 2018 and December 31, 2017, respectively. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers.

We believe that, at December 31, 2017, we had approximately $440 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements.  We also had additional unsettled excess level policy limits potentially applicable to such costs.  We had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements.

With respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Recoveries may be limited by insurer insolvencies or financial difficulties. Depending upon the nature of these characteristics or events, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us.

Amiens Labor Claims

Approximately 850 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €119 million ($139 million) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims.

Other Actions

We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable

- 22-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations.

Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods.

Income Tax Matters

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, would result in a reduction in our effective tax rate in the period of resolution.

While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims.

Guarantees

We have off-balance sheet financial guarantees and other commitments totaling approximately $78 million and $82 million at June 30, 2018 and December 31, 2017, respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not require collateral in connection with the issuance of these guarantees. In 2017, we issued a guarantee of approximately $47 million in connection with an indirect tax assessment in EMEA. As of June 30, 2018, this guarantee amount has been reduced to $44 million. We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of approximately $46 million to an insurance company related to SRI's obligation to pay certain outstanding workers' compensation claims of a formerly consolidated joint venture entity. As of June 30, 2018, this guarantee amount has been reduced to $33 million. We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2020. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees.

- 23-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 13. CAPITAL STOCK

Dividends

In the first six months of 2018, we paid cash dividends of $67 million on our common stock. On July 14, 2018, the Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.14 per share of common stock, or approximately $33 million in the aggregate. The dividend will be paid on September 4, 2018 to stockholders of record as of the close of business on August 1, 2018. Future quarterly dividends are subject to Board approval.

Common Stock Repurchases

On September 18, 2013, the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion. This program expires on December 31, 2019. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During the second quarter of 2018, we repurchased 2,976,414 shares at an average price, including commissions, of $25.20 per share, or $75 million in the aggregate. During the first six months of 2018, we repurchased 3,851,092 shares at an average price, including commissions, of $25.97 per share, or $100 million in the aggregate. Since 2013, we repurchased 47,820,749 shares at an average price, including commissions, of $29.56 per share, or $1,413 million in the aggregate.

In addition, we may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of the stock options or the vesting or payment of stock awards. During the first six months of 2018, we did not repurchase any shares from employees.

- 24-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 14. CHANGES IN SHAREHOLDERS’ EQUITY

The following tables present the changes in shareholders’ equity for the six months ended June 30, 2018 and 2017:

	June 30, 2018									June 30, 2017
(In millions)	Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity			Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity
Balance at beginning of period	$	4,603		$	247		$	4,850		$	4,507		$	218		$	4,725
Comprehensive income (loss):
Net income	232			12			244			313			10			323
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)	(133		)	(16		)	(149		)	121			13			134
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)	53			—			53			39			—			39
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)	19			—			19			3			—			3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)	4			—			4			—			—			—
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)	6			—			6			(14		)	—			(14		)
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)	5			—			5			(3		)	—			(3		)
Other comprehensive income (loss)	(46		)	(16		)	(62		)	146			13			159
Total comprehensive income (loss)	186			(4		)	182			459			23			482
Adoption of new accounting standards updates (Note 1)	(1		)	—			(1		)	—			—			—
Dividends declared to minority shareholders	—			(7		)	(7		)	—			(5		)	(5		)
Stock-based compensation plans (Note 11)	8			—			8			12			—			12
Repurchase of common stock (Note 13)	(100		)	—			(100		)	(30		)	—			(30		)
Dividends declared (Note 13)	(67		)	—			(67		)	(50		)	—			(50		)
Common stock issued from treasury	3			—			3			11			—			11
Purchase of minority shares	5			(29		)	(24		)	—			—			—
Balance at end of period	$	4,637		$	207		$	4,844		$	4,909		$	236		$	5,145

- 25-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 15. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table presents changes in Accumulated Other Comprehensive Loss (AOCL), by component, for the six months ended June 30, 2018 and 2017:

(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2017	$	(915	)	$	(3,052	)	$	(9	)	$	(3,976	)
Other comprehensive income (loss) before reclassifications, net of tax	(133		)	19			6			(108		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			57			5			62
Balance at June 30, 2018	$	(1,048	)	$	(2,976	)	$	2		$	(4,022	)
(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2016	$	(1,155	)	$	(3,053	)	$	10		$	(4,198	)
Other comprehensive income (loss) before reclassifications, net of tax	121			3			(14		)	110
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			39			(3		)	36
Balance at June 30, 2017	$	(1,034	)	$	(3,011	)	$	(7	)	$	(4,052	)

The following table presents reclassifications out of Accumulated Other Comprehensive Loss:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
(In millions) (Income) Expense	Amount Reclassified						Amount Reclassified						Affected Line Item in the Consolidated Statements of Operations
Component of AOCL	from AOCL						from AOCL
Amortization of prior service cost and unrecognized gains and losses	$	34		$	30		$	69		$	60		Other (Income) Expense
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures	6			—			6			—			Other (Income) Expense
Unrecognized Net Actuarial Losses and Prior Service Costs, before tax	40			30			75			60
Tax effect	(10		)	(11		)	(18		)	(21		)	United States and Foreign Taxes
Net of tax	$	30		$	19		$	57		$	39		Goodyear Net Income
Deferred Derivative (Gains) Losses, before tax	$	3		$	(2	)	$	7		$	(4	)	Cost of Goods Sold
Tax effect	(1		)	—			(2		)	1			United States and Foreign Taxes
Net of tax	$	2		$	(2	)	$	5		$	(3	)	Goodyear Net Income
Total reclassifications	$	32		$	17		$	62		$	36		Goodyear Net Income

- 26-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 16. SUBSEQUENT EVENT

On April 16, 2018, we announced an agreement to form a 50/50 joint venture with Bridgestone Americas, Inc. (“Bridgestone”) that will combine our Company-Owned Wholesale Distribution (“COWD”) business and Bridgestone’s tire wholesale warehouse business to create TireHub, a national tire distributor in the United States.

On July 1, 2018, TireHub commenced operations. Upon commencement, we transferred certain assets and liabilities of the COWD business to TireHub and expect to recognize a non-cash gain of approximately $285 million on the transaction in Other (Income) Expense in the third quarter of 2018. We also expect to record the fair value of the Company’s equity investment in TireHub of approximately $292 million in Other Assets in the third quarter of 2018. No cash was exchanged between the parties as part of the transaction.

NOTE 17. 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 $1.0 billion outstanding principal amount of 5.125% senior notes due 2023, the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (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 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 capital stock, loans and other capital transactions between members of the consolidated group.

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.

- 27-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Condensed Consolidating Balance Sheet
	June 30, 2018
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	135	$	49		$	791	$	—		$	975
Accounts Receivable, net	658		146			1,584		—			2,388
Accounts Receivable From Affiliates	—		198			—		(198		)	—
Inventories	1,522		63			1,375		(19		)	2,941
Prepaid Expenses and Other Current Assets	79		2			181		3			265
Total Current Assets	2,394		458			3,931		(214		)	6,569
Goodwill	24		1			426		125			576
Intangible Assets	118		—			20		—			138
Deferred Income Taxes	1,598		31			402		4			2,035
Other Assets	249		49			506		—			804
Investments in Subsidiaries	4,294		517			—		(4,811		)	—
Property, Plant and Equipment, net	2,470		427			4,363		(27		)	7,233
Total Assets	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	928	$	119		$	1,833	$	—		$	2,880
Accounts Payable to Affiliates	65		—			133		(198		)	—
Compensation and Benefits	281		14			216		—			511
Other Current Liabilities	345		(9		)	485		—			821
Notes Payable and Overdrafts	—		—			335		—			335
Long Term Debt and Capital Leases Due Within One Year	59		—			227		—			286
Total Current Liabilities	1,678		124			3,229		(198		)	4,833
Long Term Debt and Capital Leases	3,886		167			1,673		—			5,726
Compensation and Benefits	589		97			683		—			1,369
Deferred Income Taxes	—		—			99		—			99
Other Long Term Liabilities	357		9			118		—			484
Total Liabilities	6,510		397			5,802		(198		)	12,511
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	237		—			—		—			237
Other Equity	4,400		1,086			3,639		(4,725		)	4,400
Goodyear Shareholders’ Equity	4,637		1,086			3,639		(4,725		)	4,637
Minority Shareholders’ Equity — Nonredeemable	—		—			207		—			207
Total Shareholders’ Equity	4,637		1,086			3,846		(4,725		)	4,844
Total Liabilities and Shareholders’ Equity	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355

- 28-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Condensed Consolidating Balance Sheet
	December 31, 2017
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	176	$	32	$	835	$	—		$	1,043
Accounts Receivable, net	649		116		1,260		—			2,025
Accounts Receivable From Affiliates	—		254		71		(325		)	—
Inventories	1,444		43		1,329		(29		)	2,787
Prepaid Expenses and Other Current Assets	59		3		157		5			224
Total Current Assets	2,328		448		3,652		(349		)	6,079
Goodwill	24		1		444		126			595
Intangible Assets	119		—		20		—			139
Deferred Income Taxes	1,549		35		424		—			2,008
Other Assets	221		51		518		2			792
Investments in Subsidiaries	4,424		503		—		(4,927		)	—
Property, Plant and Equipment, net	2,491		420		4,569		(29		)	7,451
Total Assets	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	927	$	115	$	1,765	$	—		$	2,807
Accounts Payable to Affiliates	325		—		—		(325		)	—
Compensation and Benefits	322		15		202		—			539
Other Current Liabilities	323		2		701		—			1,026
Notes Payable and Overdrafts	—		—		262		—			262
Long Term Debt and Capital Leases Due Within One Year	60		—		331		—			391
Total Current Liabilities	1,957		132		3,261		(325		)	5,025
Long Term Debt and Capital Leases	3,544		152		1,380		—			5,076
Compensation and Benefits	682		109		724		—			1,515
Deferred Income Taxes	—		1		99		—			100
Other Long Term Liabilities	370		8		120		—			498
Total Liabilities	6,553		402		5,584		(325		)	12,214
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	240		—		—		—			240
Other Equity	4,363		1,056		3,796		(4,852		)	4,363
Goodyear Shareholders’ Equity	4,603		1,056		3,796		(4,852		)	4,603
Minority Shareholders’ Equity — Nonredeemable	—		—		247		—			247
Total Shareholders’ Equity	4,603		1,056		4,043		(4,852		)	4,850
Total Liabilities and Shareholders’ Equity	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064

- 29-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Consolidating Statements of Operations
	Three Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,834		$	329		$	2,406		$	(728	)	$	3,841
Cost of Goods Sold	1,464			335			1,899			(749		)	2,949
Selling, Administrative and General Expense	258			8			322			—			588
Rationalizations	(1		)	—			(1		)	—			(2		)
Interest Expense	56			5			22			(5		)	78
Other (Income) Expense	14			3			8			20			45
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	43			(22		)	156			6			183
United States and Foreign Taxes	(37		)	(5		)	62			(1		)	19
Equity in Earnings of Subsidiaries	77			12			—			(89		)	—
Net Income (Loss)	157			(5		)	94			(82		)	164
Less: Minority Shareholders’ Net Income	—			—			7			—			7
Goodyear Net Income (Loss)	$	157		$	(5	)	$	87		$	(82	)	$	157
Comprehensive Income (Loss)	$	2		$	(25	)	$	(123	)	$	137		$	(9	)
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(11		)	—			(11		)
Goodyear Comprehensive Income (Loss)	$	2		$	(25	)	$	(112	)	$	137		$	2

	Consolidating Statements of Operations
	Three Months Ended June 30, 2017
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,863	$	290		$	2,316		$	(783	)	$	3,686
Cost of Goods Sold	1,459		284			1,840			(798		)	2,785
Selling, Administrative and General Expense	247		9			322			1			579
Rationalizations	1		—			26			—			27
Interest Expense	69		2			31			(13		)	89
Other (Income) Expense	4		2			(15		)	25			16
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	83		(7		)	112			2			190
United States and Foreign Taxes	17		(3		)	20			2			36
Equity in Earnings of Subsidiaries	81		16			—			(97		)	—
Net Income (Loss)	147		12			92			(97		)	154
Less: Minority Shareholders’ Net Income	—		—			7			—			7
Goodyear Net Income (Loss)	$	147	$	12		$	85		$	(97	)	$	147
Comprehensive Income (Loss)	$	198	$	13		$	146		$	(145	)	$	212
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—		—			14			—			14
Goodyear Comprehensive Income (Loss)	$	198	$	13		$	132		$	(145	)	$	198

- 30-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Consolidating Statements of Operations
	Six Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,518		$	638		$	4,863		$	(1,348	)	$	7,671
Cost of Goods Sold	2,829			608			3,877			(1,389		)	5,925
Selling, Administrative and General Expense	517			18			644			—			1,179
Rationalizations	5			—			30			—			35
Interest Expense	110			10			45			(11		)	154
Other (Income) Expense	24			10			8			40			82
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	33			(8		)	259			12			296
United States and Foreign Taxes	(40		)	(2		)	92			2			52
Equity in Earnings of Subsidiaries	159			34			—			(193		)	—
Net Income (Loss)	232			28			167			(183		)	244
Less: Minority Shareholders’ Net Income	—			—			12			—			12
Goodyear Net Income (Loss)	$	232		$	28		$	155		$	(183	)	$	232
Comprehensive Income (Loss)	$	186		$	30		$	32		$	(66	)	$	182
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(4		)	—			(4		)
Goodyear Comprehensive Income (Loss)	$	186		$	30		$	36		$	(66	)	$	186

	Consolidating Statements of Operations
	Six Months Ended June 30, 2017
(In millions)	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,630		$	589	$	4,618		$	(1,452	)	$	7,385
Cost of Goods Sold	2,837			557		3,634			(1,483		)	5,545
Selling, Administrative and General Expense	506			17		632			—			1,155
Rationalizations	2			—		54			—			56
Interest Expense	134			4		62			(24		)	176
Other (Income) Expense	(13		)	6		(15		)	46			24
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	164			5		251			9			429
United States and Foreign Taxes	60			—		49			(3		)	106
Equity in Earnings of Subsidiaries	209			31		—			(240		)	—
Net Income (Loss)	313			36		202			(228		)	323
Less: Minority Shareholders’ Net Income	—			—		10			—			10
Goodyear Net Income (Loss)	$	313		$	36	$	192		$	(228	)	$	313
Comprehensive Income (Loss)	$	459		$	41	$	340		$	(358	)	$	482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—		23			—			23
Goodyear Comprehensive Income (Loss)	$	459		$	41	$	317		$	(358	)	$	459

- 31-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2018
(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	$	457		$	(9	)	$	(336	)	$	(196	)	$	(84	)
Cash Flows from Investing Activities:
Capital Expenditures	(180		)	(41		)	(220		)	(1		)	(442		)
Asset Dispositions	—			2			—			—			2
Short Term Securities Acquired	—			—			(30		)	—			(30		)
Short Term Securities Redeemed	—			—			38			—			38
Capital Contributions and Loans Incurred	(306		)	—			(213		)	519			—
Capital Redemptions and Loans Paid	69			—			430			(499		)	—
Other Transactions	(38		)	—			—			—			(38		)
Total Cash Flows from Investing Activities	(455		)	(39		)	5			19			(470		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	575			—			437			—			1,012
Short Term Debt and Overdrafts Paid	(575		)	—			(345		)	—			(920		)
Long Term Debt Incurred	1,605			15			1,924			—			3,544
Long Term Debt Paid	(1,267		)	—			(1,666		)	—			(2,933		)
Common Stock Issued	3			—			—			—			3
Common Stock Repurchased	(100		)	—			—			—			(100		)
Common Stock Dividends Paid	(67		)	—			—			—			(67		)
Capital Contributions and Loans Incurred	213			52			254			(519		)	—
Capital Redemptions and Loans Paid	(430		)	—			(69		)	499			—
Intercompany Dividends Paid	—			—			(197		)	197			—
Transactions with Minority Interests in Subsidiaries	—			—			(26		)	—			(26		)
Debt Related Costs and Other Transactions	7			—			(1		)	—			6
Total Cash Flows from Financing Activities	(36		)	67			311			177			519
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			(2		)	(23		)	—			(25		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(34		)	17			(43		)	—			(60		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	201			32			877			—			1,110
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	167		$	49		$	834		$	—		$	1,050

- 32-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2017
(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	$	(49	)	$	(30	)	$	(90	)	$	(16	)	$	(185	)
Cash Flows from Investing Activities:
Capital Expenditures	(190		)	(86		)	(224		)	3			(497		)
Asset Dispositions	1			—			1			—			2
Short Term Securities Acquired	—			—			(43		)	—			(43		)
Short Term Securities Redeemed	—			—			43			—			43
Capital Contributions and Loans Incurred	(62		)	—			(30		)	92			—
Capital Redemptions and Loans Paid	—			—			61			(61		)	—
Other Transactions	—			—			(3		)	—			(3		)
Total Cash Flows from Investing Activities	(251		)	(86		)	(195		)	34			(498		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	40			—			250			—			290
Short Term Debt and Overdrafts Paid	(40		)	—			(263		)	—			(303		)
Long Term Debt Incurred	2,090			52			1,314			—			3,456
Long Term Debt Paid	(1,759		)	—			(1,146		)	—			(2,905		)
Common Stock Issued	11			—			—			—			11
Common Stock Repurchased	(30		)	—			—			—			(30		)
Common Stock Dividends Paid	(50		)	—			—			—			(50		)
Capital Contributions and Loans Incurred	30			62			—			(92		)	—
Capital Redemptions and Loans Paid	(61		)	—			—			61			—
Intercompany Dividends Paid	—			—			(13		)	13			—
Transactions with Minority Interests in Subsidiaries	—			—			(5		)	—			(5		)
Debt Related Costs and Other Transactions	(26		)	—			(12		)	—			(38		)
Total Cash Flows from Financing Activities	205			114			125			(18		)	426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			2			35			—			37
Net Change in Cash, Cash Equivalents and Restricted Cash	(95		)	—			(125		)	—			(220		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	210			55			924			—			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	115		$	55		$	799		$	—		$	969

- 33-

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

All per share amounts are diluted and refer to Goodyear net income (loss).

OVERVIEW

The Goodyear Tire & Rubber Company is one of the world’s leading manufacturers of tires, with one of the most recognizable brand names in the world and operations in most regions of the world. We have a broad global footprint with 48 manufacturing facilities in 22 countries, including the United States. We operate our business through three operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific.

On April 16, 2018, we announced an agreement to form a 50/50 joint venture with Bridgestone Americas, Inc. (“Bridgestone”) that will combine our company-owned wholesale distribution business and Bridgestone’s tire wholesale warehouse business to create TireHub, LLC (“TireHub”), a national tire distributor in the United States. TireHub will provide U.S. tire dealers and retailers with a comprehensive range of passenger and light truck tires from two of the world’s leading tire companies, with an emphasis on satisfying the rapidly growing demand for larger rim diameter premium tires. The transaction closed on July 1, 2018, and TireHub will become our sole authorized national tire distributor in the United States.

In connection with the ramp-up of TireHub’s operations, the Company plans to transition volume representing approximately 10 million units of annual sales to TireHub and other aligned distributors to maximize our geographic reach and customer service capabilities. TireHub has more than 80 distribution and warehouse locations throughout the United States and is expected to have the scale to reach the vast majority of retail locations in the U.S. daily. TireHub is also expected to provide a superior, fully integrated distribution, warehousing, sales and delivery solution that is expected to provide enhanced fill rates and turnaround times — enabling dealers to quickly access the products they need and manage the growing complexity in the tire business driven by SKU proliferation.

Results of Operations

In the second quarter of 2018, we experienced strong demand for our products, particularly with respect to consumer replacement tires in Europe and the United States. However, macro-economic industry conditions are becoming increasingly challenging, including rising raw material costs, a stronger U.S. dollar and softening market conditions in China.

Our second quarter of 2018 results reflect a 4.3% increase in tire unit shipments compared to the second quarter of 2017. In the second quarter of 2018, we realized approximately $77 million of cost savings, including raw material cost saving measures of approximately $9 million, which exceeded the impact of general inflation. Our raw material costs, including cost saving measures, increased by approximately 3% in the second quarter of 2018 compared to the second quarter of 2017.

Net sales in the second quarter of 2018 were $3,841 million, compared to $3,686 million in the second quarter of 2017. Net sales increased in the second quarter of 2018 due primarily to higher tire unit volumes, improvements in price and product mix and favorable foreign currency translation. These increases were partially offset by lower sales in other tire-related businesses, primarily related to retail, retread and race tire sales, partially offset by an increase in chemical sales.

In the second quarter of 2018, Goodyear net income was $157 million, or $0.65 per share, compared to $147 million, or $0.58 per share, in the second quarter of 2017. The increase in Goodyear net income in the second quarter of 2018 compared to the second quarter of 2017 was primarily driven by lower rationalization charges, lower accelerated depreciation and lower income taxes. These increases in net income were partially offset by lower segment operating income, expenses related to the TireHub transaction, and repair costs related to the hurricanes that occurred in the third quarter of 2017.

Our total segment operating income for the second quarter of 2018 was $324 million, compared to $369 million in the second quarter of 2017. The $45 million decrease in segment operating income was primarily due to higher raw material costs of $34 million, decreases in price and product mix of $30 million, lower income in other tire-related businesses of $10 million, and higher research and development costs of $10 million. These decreases in operating income were partially offset by higher volume of $35 million, primarily in EMEA, and lower conversion costs of $28 million, primarily in Americas. Refer to "Results of Operations — Segment Information” for additional information.

Net sales in the first six months of 2018 were $7,671 million, compared to $7,385 million in the first six months of 2017. Net sales increased in the first six months of 2018 due primarily to favorable foreign currency translation, improvements in price and product mix and higher tire unit volumes. These increases were partially offset by lower sales in other tire-related businesses, primarily related to retail, retread and race tire sales, partially offset by an increase in chemical sales.

In the first six months of 2018, Goodyear net income was $232 million, or $0.96 per share, compared to $313 million, or $1.23 per share, in the first six months of 2017. The decrease in Goodyear net income was primarily driven by lower segment operating income, expenses related to the TireHub transaction, and repair costs related to the hurricanes that occurred in the third quarter of

- 34-

2017. These decreases in net income were partially offset by lower income taxes, lower accelerated depreciation, lower interest expense and lower rationalization charges.

Our total segment operating income for the first six months of 2018 was $605 million, compared to $759 million in the first six months of 2017. The $154 million decrease in segment operating income was due primarily to higher raw material costs of $107 million, decreases in price and product mix of $46 million, primarily in Americas, lower income in other tire-related businesses of $20 million, and higher research and development costs of $17 million. These decreases in operating income were partially offset by lower conversion costs of $35 million, primarily in EMEA and Asia Pacific, higher volume of $15 million, primarily in EMEA, and favorable foreign currency translation of $11 million, primarily in EMEA. Refer to "Results of Operations — Segment Information” for additional information.

At June 30, 2018, we had $975 million of Cash and cash equivalents as well as $2,248 million of unused availability under our various credit agreements, compared to $1,043 million and $3,196 million, respectively, at December 31, 2017. Cash and cash equivalents decreased by $68 million from December 31, 2017 due primarily to cash used for working capital of $444 million, capital expenditures of $442 million, common stock repurchases and dividends of $167 million, rationalization payments of $131 million, pension contributions and direct payments of $42 million, and a decrease in accrued interest of $31 million. These uses of cash were partially offset by net income of $244 million, which includes net non-cash charges of $337 million for depreciation and amortization as well as our provision for deferred income taxes, and net borrowings of $703 million. Refer to "Liquidity and Capital Resources" for additional information.

Outlook

We now expect that our full-year tire unit volume for 2018 will be up approximately 1% to 1.5% compared to 2017 and for overhead absorption to be approximately $45 million better in 2018 compared to 2017, both of which were reduced from our prior outlook to reflect softening market conditions in China. We now expect cost savings to more than offset general inflation in 2018 by approximately $115 million. Based on current spot rates, we now expect foreign currency translation to negatively affect segment operating income by approximately $30 million in 2018 compared to 2017.

Based on current raw material spot prices, for the full year of 2018, we expect our raw material costs will be up approximately $190 million compared to 2017, excluding raw material cost saving measures, and we expect a headwind of approximately $165 million from price and product mix net of those raw material costs. Natural and synthetic rubber prices and other commodity prices historically have experienced significant volatility, and this estimate could change significantly based on fluctuations in the cost of these and other key raw materials. We are continuing to focus on price and product mix, to substitute lower cost materials where possible, to work to identify additional substitution opportunities, to reduce the amount of material required in each tire, and to pursue alternative raw materials.

Refer to “Forward-Looking Information — Safe Harbor Statement” for a discussion of our use of forward-looking statements in this Form 10-Q.

RESULTS OF OPERATIONS

CONSOLIDATED

Three Months Ended June 30, 2018 and 2017

Net sales in the second quarter of 2018 were $3,841 million, increasing $155 million, or 4.2%, from $3,686 million in the second quarter of 2017. Goodyear net income was $157 million, or $0.65 per share, in the second quarter of 2018, compared to $147 million, or $0.58 per share, in the second quarter of 2017.

Net sales increased in the second quarter of 2018, due primarily to higher tire unit volume of $130 million, primarily in EMEA, increases in price and product mix of $26 million and favorable foreign currency translation of $10 million. These increases were partially offset by lower sales in other tire-related businesses of $12 million, primarily related to retail, retread and race tire sales, partially offset by an increase in chemical sales.

Worldwide tire unit sales in the second quarter of 2018 were 39.0 million units, increasing 1.6 million units, or 4.3%, from 37.4 million units in the second quarter of 2017. Replacement tire volume increased 1.2 million units, or 4.7%, primarily in EMEA. OE tire volume increased 0.4 million units, or 3.4%, primarily due to consumer demand in Asia Pacific, as well as global commercial shipments.

Cost of goods sold (“CGS”) in the second quarter of 2018 was $2,949 million, increasing $164 million, or 5.9%, from $2,785 million in the second quarter of 2017. CGS increased due to higher tire volume of $95 million, primarily in EMEA, higher costs related to product mix of $56 million, higher raw material costs of $34 million, primarily in Americas and EMEA, and foreign currency translation of $5 million. These increases were partially offset by lower conversion costs of $28 million, primarily in Americas.

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CGS in the second quarter of 2018 included pension expense of $3 million, compared to $4 million in 2017. CGS in the second quarter of 2018 included accelerated depreciation of $1 million ($1 million after-tax and minority) compared to $21 million ($16 million after-tax and minority) in the second quarter of 2017 primarily related to the closure of our manufacturing facility in Philippsburg, Germany. CGS in the second quarter of 2018 and 2017 also included incremental savings from rationalization plans of $17 million and $9 million, respectively. CGS was 76.8% of sales in the second quarter of 2018 compared to 75.6% in the second quarter of 2017.

Selling, administrative and general expense ("SAG") in the second quarter of 2018 was $588 million, increasing $9 million, or 1.6%, from $579 million in the second quarter of 2017. SAG increased primarily due to increases in various administrative costs of $17 million and foreign currency translation of $5 million. These increases were partially offset by lower wages and benefits of $12 million, primarily due to lower incentive compensation.

SAG in the second quarter of 2018 and 2017 included pension expense of $5 million for both periods. SAG in the second quarter of 2018 and 2017 also included incremental savings from rationalization plans of $9 million for both periods. SAG was 15.3% of sales in the second quarter of 2018, compared to 15.7% in the second quarter of 2017.

We recorded net rationalization reversals of $2 million ($1 million after-tax and minority) in the second quarter of 2018 and net rationalization charges of $27 million ($20 million after-tax and minority) in the second quarter of 2017. In the second quarter of 2018, we recorded charges of $1 million for rationalization actions initiated during 2018, which primarily related to a global plan to reduce SAG headcount. We also recorded charges of $4 million related to prior year plans, primarily related to the closure our tire manufacturing facility in Philippsburg, Germany, and reversals of $7 million for actions no longer needed for their originally intended purpose. In the second quarter of 2017, we recorded charges of $3 million for rationalization actions initiated during 2017, which primarily related to SAG headcount reductions and a plan to improve operating efficiency in EMEA. We also recorded charges of $24 million related to prior year plans, primarily related to the closure our tire manufacturing facility in Philippsburg, Germany, the closure of 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.

Interest expense in the second quarter of 2018 was $78 million, decreasing $11 million, or 12.4%, from $89 million in the second quarter of 2017. The decrease was due to a lower average interest rate of 4.95% in the second quarter of 2018 compared to 5.93% in the second quarter of 2017, partially offset by a higher average debt balance of $6,303 million in the second quarter of 2018 compared to $6,005 million in the second quarter of 2017. In addition, interest expense in the second quarter of 2017 included charges of $6 million ($4 million after-tax and minority) related to the write-off of deferred financing fees.

Other (Income) Expense in the second quarter of 2018 was $45 million, compared to $16 million in the second quarter of 2017. Other (Income) Expense in the second quarter of 2018 included charges of $10 million ($8 million after-tax and minority) for transaction costs related to TireHub, $8 million ($8 million after-tax and minority) for hurricane related expenses, pension settlement charges of $3 million ($2 million after-tax and minority), net gains on asset sales of $2 million ($1 million after-tax and minority), and a benefit of $2 million ($1 million after-tax and minority) related to the recovery of past costs from one of our asbestos insurers. Other (Income) Expense in the second quarter of 2017 included charges of $25 million ($15 million after-tax and minority) related to the redemption of certain notes and gains on asset sales of $12 million ($12 million after-tax and minority), primarily related to the sale of a former wire plant site in Luxembourg.

For the second quarter of 2018, we recorded tax expense of $19 million on income before income taxes of $183 million. Income tax expense for the three months ended June 30, 2018 includes discrete benefits of $28 million ($28 million after minority interest). The discrete tax benefit includes a benefit of $25 million from recording foreign tax credits on dividends, primarily from subsidiaries in Japan and Singapore, to the United States, and a benefit of $4 million to decrease our provisional tax obligation for the one-time transition tax imposed by the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States. In the second quarter of 2017, we recorded tax expense of $36 million on income before income taxes of $190 million. Income tax expense for the three months ended June 30, 2017 was favorably impacted by $9 million ($9 million after minority interest) of various discrete tax adjustments. For further information, refer to Note to the Consolidated Financial Statements No. 5, Income Taxes, in this Form 10-Q.

Minority shareholders’ net income in the second quarter of 2018 and 2017 was $7 million for both periods.

Six Months Ended June 30, 2018 and 2017

Net sales in the first six months of 2018 were $7,671 million, increasing $286 million, or 3.9%, from $7,385 million in the first six months of 2017. Goodyear net income was $232 million, or $0.96 per share, in the first six months of 2018, compared to $313 million, or $1.23 per share, in the first six months of 2017.

Net sales increased in the first six months of 2018, due primarily to favorable foreign currency translation of $176 million, primarily in EMEA, improvements in price and product mix of $90 million, primarily in EMEA and Asia Pacific, and higher tire unit volume of $47 million, primarily in EMEA and Asia Pacific. These increases were partially offset by lower sales in other tire-related businesses of $29 million, primarily related to retail, retread and race tire sales, partially offset by an increase in chemical sales.

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Worldwide tire unit sales in the first six months of 2018 were 78.0 million units, increasing 0.6 million units, or 0.8%, from 77.4 million units in the first six months of 2017. Replacement tire volume increased 0.7 million units, or 1.2%, primarily in EMEA. OE tire volume decreased 0.1 million units, or 0.3%, primarily in EMEA and Americas, partially offset by an increase in Asia Pacific.

CGS in the first six months of 2018 was $5,925 million, increasing $380 million, or 6.9%, from $5,545 million in the first six months of 2017. CGS increased due to higher costs related to product mix of $136 million, foreign currency translation of $132 million, primarily in EMEA, higher raw material costs of $107 million, and higher tire unit volume of $32 million. These increases were partially offset by lower conversion costs of $35 million, primarily in EMEA and Asia Pacific.

CGS in the first six months of 2018 included pension expense of $7 million, compared to $8 million in 2017. CGS in the first six months of 2018 and 2017 also included accelerated depreciation of $2 million ($1 million after-tax and minority) and $29 million ($21 million after-tax and minority), respectively, primarily related to the closure of our manufacturing facility in Philippsburg, Germany. CGS in the first six months of 2018 and 2017 also included incremental savings from rationalization plans of $30 million and $13 million, respectively. CGS was 77.2% of sales in the first six months of 2018 compared to 75.1% in the first six months of 2017.

SAG in the first six months of 2018 was $1,179 million, increasing $24 million, or 2.1%, from $1,155 million in the first six months of 2017. SAG increased primarily due to foreign currency translation of $33 million, primarily in EMEA, and increases in various administrative costs of $29 million. These increases were partially offset by lower wages and benefits of $41 million, primarily related to lower incentive compensation.

SAG in the first six months of 2018 and 2017 included pension expense of $9 million for both periods. SAG in the first six months of 2018 and 2017 also included incremental savings from rationalization plans of $18 million for both periods. SAG was 15.4% of sales in the first six months of 2018, compared to 15.6% in the first six months of 2017.

We recorded net rationalization charges of $35 million ($25 million after-tax and minority) in the first six months of 2018 and $56 million ($40 million after-tax and minority) in the first six months of 2017. In the first six months of 2018, we recorded charges of $32 million for rationalization actions initiated during 2018, which primarily related to a global plan to reduce SAG headcount and a plan to improve operating efficiency in EMEA. We also recorded charges of $15 million related to prior year plans, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany, and reversals of $12 million for actions no longer needed for their originally intended purpose. In the first six months of 2017, we recorded charges of $26 million for rationalization actions initiated during 2017, which primarily related to SAG headcount reductions and a plan to improve operating efficiency in EMEA. We also recorded charges of $30 million related to prior year plans, primarily related to the closure our tire manufacturing facility in Philippsburg, Germany, the closure of 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.

Interest expense in the first six months of 2018 was $154 million, decreasing $22 million, or 12.5%, from $176 million in the first six months of 2017. The decrease was due to a lower average interest rate of 5.01% in the first six months of 2018 compared to 6.01% in the first six months of 2017, partially offset by a higher average debt balance of $6,149 million in the first six months of 2018 compared to $5,855 million in the first six months of 2017. In addition, interest expense for the six months ended June 30, 2017 included charges of $6 million ($4 million after-tax and minority) related to the write-off of deferred financing fees.

Other (Income) Expense in the first six months of 2018 was $82 million of expense, compared to $24 million of expense in the first six months of 2017. Other (Income) Expense in the first six months of 2018 included charges of $14 million ($11 million after-tax and minority) for transaction costs related to TireHub, $11 million ($11 million after-tax and minority) for hurricane related expenses, $9 million ($7 million after-tax and minority) related to a one-time expense from the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory, pension settlement charges of $3 million ($2 million after-tax and minority), and a benefit of $2 million ($1 million after-tax and minority) related to the recovery of past costs from one of our asbestos insurers. Other (Income) Expense in the first six months of 2017 included charges of $25 million ($15 million after-tax and minority) related to the redemption of certain notes and net gains on asset sales of $13 million ($12 million after-tax and minority), primarily related to the sale of a former wire plant site in Luxembourg.

In the first six months of 2018, we recorded income tax expense of $52 million on income before income taxes of $296 million. Income tax expense for the six months ended June 30, 2018 includes net discrete benefits of $21 million ($21 million after minority interest). The net discrete tax benefit includes a second quarter benefit of $25 million from recording foreign tax credits on dividends, primarily from subsidiaries in Japan and Singapore, to the United States, and a first quarter charge of $7 million and a second quarter benefit of $4 million to adjust our provisional tax obligation for the one-time transition tax imposed by the Tax Act. In the first six months of 2017, we recorded income tax expense of $106 million on income before income taxes of $429 million. Income tax expense in the first six months of 2017 was favorably impacted by $11 million ($11 million after minority interest) of various discrete tax adjustments. For further information, refer to Note to the Consolidated Financial Statements No. 5, Income Taxes, in this Form 10-Q.

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For the six months ending June 30, 2018, changes to our unrecognized tax benefits did not, and for the full year of 2018 are not expected to, have a significant impact on our financial position or results of operations.

Minority shareholders’ net income in the first six months of 2018 was $12 million, compared to $10 million in 2017.

SEGMENT INFORMATION

Segment information reflects our strategic business units (“SBUs”), which are organized to meet customer requirements and global competition and are segmented on a regional basis.

Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net Sales less CGS (excluding asset write-off and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates. Segment operating income does not include net rationalization charges (credits), asset sales and certain other items, including non-service related pension and other postretirement benefit costs and pension curtailments and settlements.

Management believes that total segment operating income is useful because it represents the aggregate value of income created by our SBUs and excludes items not directly related to the SBUs for performance evaluation purposes. Total segment operating income is the sum of the individual SBUs’ segment operating income. Refer to Note to the Consolidated Financial Statements No. 7, Business Segments, in this Form 10-Q for further information and for a reconciliation of total segment operating income to Income before Income Taxes.

Total segment operating income in the second quarter of 2018 was $324 million, decreasing $45 million, or 12.2%, from $369 million in the second quarter of 2017. Total segment operating margin (segment operating income divided by segment sales) in the second quarter of 2018 was 8.4%, compared to 10.0% in the second quarter of 2017. Total segment operating income in the first six months of 2018 was $605 million, decreasing $154 million, or 20.3%, from $759 million in the first six months of 2017. Total segment operating margin in the first six months of 2018 was 7.9%, compared to 10.3% in the first six months of 2017.

Americas

	Three Months Ended June 30,											Six Months Ended June 30,
										Percent											Percent
(In millions)	2018			2017			Change			Change		2018			2017			Change			Change
Tire Units	17.3			17.1			0.2			1.5	%	34.0			34.3			(0.3		)	(0.7	)%
Net Sales	$	2,018		$	2,029		$	(11	)	(0.5	)%	$	3,947		$	3,987		$	(40	)	(1.0	)%
Operating Income	154			218			(64		)	(29.4	)%	281			434			(153		)	(35.3	)%
Operating Margin	7.6		%	10.7		%						7.1		%	10.9		%

Three Months Ended June 30, 2018 and 2017

Americas unit sales in the second quarter of 2018 increased 0.2 million units, or 1.5%, to 17.3 million units. Replacement tire volume increased 0.1 million units, or 1.5%, primarily in our consumer business in the United States driven by growth with third party retailers, partially offset by the impacts of the TireHub transaction. OE tire volume increased 0.1 million units, or 1.7%, driven by growth in both commercial and consumer. Replacement and OE tire volumes increased despite the impact of a national transportation strike in Brazil.

Net sales in the second quarter of 2018 were $2,018 million, decreasing $11 million, or 0.5%, from $2,029 million in the second quarter of 2017. The decrease in net sales was primarily due to unfavorable foreign currency translation of $24 million, primarily related to the Brazilian real, and decreases in price and product mix of $15 million. These decreases were partially offset by higher tire unit volume of $24 million and higher sales in other tire-related businesses of $5 million, primarily due to an increase in third-party sales of chemical products.

Operating income in the second quarter of 2018 was $154 million, decreasing $64 million, or 29.4%, from $218 million in the second quarter of 2017. The decrease in operating income was due to lower price and product mix of $32 million, higher raw material costs of $27 million, higher SAG of $10 million, driven by additional advertising costs, charges related to a supply contract of $5 million, incremental start-up costs of $3 million associated with our new plant in San Luis Potosi, Mexico, and foreign currency translation of $3 million. These decreases in operating income were partially offset by lower conversion costs of $16 million, primarily due to improved productivity, and higher tire volume of $6 million. SAG included incremental savings from rationalization plans of $4 million. During the second quarter of 2018, Americas operating income was negatively impacted by about $7 million ($5 million after-tax and minority) as a result of the national transportation strike in Brazil.

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Operating income in the second quarter of 2018 excluded net gains on asset sales of $2 million. Operating income in the second quarter of 2017 excluded net gains on asset sales of $2 million and rationalization charges of $1 million.

Six Months Ended June 30, 2018 and 2017

Americas unit sales in the first six months of 2018 decreased 0.3 million units, or 0.7%, to 34.0 million units. Replacement tire volume decreased 0.2 million units, or 0.6%, primarily in our consumer business in Brazil and Mexico. Volume declines in Mexico were driven by decreased industry demand and declines in Brazil were primarily due to the national transportation strike in May. OE tire volume decreased 0.1 million units, or 0.9%, primarily in our consumer business in the U.S., driven by production declines, partially offset by an increase in our consumer business in Brazil, despite the impact of the national transportation strike.

Net sales in the first six months of 2018 were $3,947 million, decreasing $40 million, or 1.0%, from $3,987 million in the first six months of 2017. The decrease in net sales was primarily due to unfavorable foreign currency translation of $28 million, primarily related to the Brazilian real, and lower tire unit volume of $20 million. These decreases were partially offset by higher sales in our other tire-related businesses of $8 million, primarily due to an increase in third-party sales of chemical products.

Operating income in the first six months of 2018 was $281 million, decreasing $153 million, or 35.3%, from $434 million in the first six months of 2017. The decrease in operating income was due to lower price and product mix of $58 million, higher raw material costs of $54 million, charges related to a supply contract of $9 million, higher SAG of $9 million, primarily driven by additional advertising costs, incremental start-up costs of $8 million associated with our new plant in San Luis Potosi, Mexico, lower tire unit volume of $6 million, and foreign currency translation of $5 million. These decreases in operating income were partially offset by lower conversion costs of $8 million, primarily due to improved productivity. SAG included incremental savings from rationalization plans of $8 million.

Operating income in the first six months of 2018 excluded rationalization charges of $3 million and net gains on asset sales of $2 million. Operating income in the first six months of 2017 excluded net gains on asset sales of $3 million and rationalization charges of $2 million.

Europe, Middle East and Africa

	Three Months Ended June 30,										Six Months Ended June 30,
									Percent											Percent
(In millions)	2018			2017			Change		Change		2018			2017			Change			Change
Tire Units	14.2			13.0			1.2		9.3	%	28.9			28.5			0.4			1.3	%
Net Sales	$	1,260		$	1,114		$	146	13.1	%	$	2,590		$	2,353		$	237		10.1	%
Operating Income	100			80			20		25.0	%	178			181			(3		)	(1.7	)%
Operating Margin	7.9		%	7.2		%					6.9		%	7.7		%

Three Months Ended June 30, 2018 and 2017

Europe, Middle East and Africa unit sales in the second quarter of 2018 increased 1.2 million units, or 9.3%, to 14.2 million units. Replacement tire volume increased 1.2 million units, or 13.1%, primarily due to higher consumer replacement volumes driven by increased customer demand. OE tire volume in the second quarter of 2018 remained relatively consistent with the second quarter of 2017.

Net sales in the second quarter of 2018 were $1,260 million, increasing $146 million, or 13.1%, from $1,114 million in the second quarter of 2017. Net sales increased primarily due to higher tire unit volume of $96 million, improvements in price and product mix of $32 million, and favorable foreign currency translation of $28 million, primarily due to the strengthening of the euro. These increases were partially offset by lower sales in other tire-related businesses of $12 million, primarily related to retread and race tire sales.

Operating income in the second quarter of 2018 was $100 million, increasing $20 million, or 25.0%, from $80 million in the second quarter of 2017. Operating income increased due to higher volume of $26 million, improvements in price and product mix of $13 million, which more than offset higher raw material costs of $12 million, and lower conversion costs of $8 million, primarily related to better plant utilization following the closure of our manufacturing facility in Philippsburg, Germany. These increases in operating income were partially offset by lower income in other tire-related business of $9 million, higher research and development costs of $4 million, and higher SAG of $2 million. SAG and conversion costs included incremental savings from rationalization plans of $5 million and $17 million, respectively.

Operating income in the second quarter of 2018 excluded net rationalization reversals of $1 million and accelerated depreciation of $1 million. Operating income in the second quarter of 2017 excluded net rationalization charges of $26 million, primarily related to plans initiated to streamline operations and reduce complexity across EMEA, accelerated depreciation of $21 million, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany, and net gains on asset sales of $10

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million, primarily related to the sale of a former wire plant site in Luxembourg.

Six Months Ended June 30, 2018 and 2017

Europe, Middle East and Africa unit sales in the first six months of 2018 increased 0.4 million units, or 1.3%, to 28.9 million units. Replacement tire volume increased 1.0 million units, or 4.8%, primarily in our consumer business driven by increased industry demand. OE tire volume decreased 0.6 million units, or 6.7%, primarily in our consumer business, driven by declines in the less than 17-inch rim size segment, primarily as a result of lower industry demand.

Net sales in the first six months of 2018 were $2,590 million, increasing $237 million, or 10.1%, from $2,353 million in the first six months of 2017. Net sales increased due to favorable foreign currency translation of $173 million, primarily due to the strengthening of the euro, improvements in price and product mix of $54 million and higher tire unit volume of $37 million. These increases were partially offset by lower sales in other tire-related businesses of $29 million, primarily related to retread and race tire sales.

Operating income in the first six months of 2018 was $178 million, decreasing $3 million, or 1.7%, from $181 million in the first six months of 2017. Operating income decreased due to higher raw material costs of $47 million, which more than offset improvements in price and product mix of $15 million, lower income in other tire-related businesses of $18 million, and higher research and development costs of $7 million. These decreases in operating income were partially offset by lower conversion costs of $17 million, primarily related to better plant utilization following the closure of our manufacturing facility in Philippsburg, Germany, lower SAG of $13 million, driven by lower wages and benefits, higher volume of $12 million and foreign currency translation of $9 million, mainly driven by the strengthening of the euro. SAG and conversion costs included incremental savings from rationalization plans of $10 million and $30 million, respectively.

Operating income in the first six months of 2018 excluded net rationalization charges of $26 million, primarily related to rationalization plans initiated to reduce SAG headcount and improve operating efficiency in EMEA, net losses on asset sales of $2 million and accelerated depreciation of $2 million.

Operating income in the first six months of 2017 excluded net rationalization charges of $53 million, primarily related to rationalization plans initiated to streamline operations and reduce complexity across EMEA, accelerated depreciation of $29 million, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany, and net gains on asset sales of $10 million, primarily related to the sale of a former wire plant site in Luxembourg.

Asia Pacific

	Three Months Ended June 30,											Six Months Ended June 30,
										Percent										Percent
(In millions)	2018			2017			Change			Change		2018			2017			Change		Change
Tire Units	7.5			7.3			0.2			2.0	%	15.1			14.6			0.5		3.2	%
Net Sales	$	563		$	543		$	20		3.7	%	$	1,134		$	1,045		$	89	8.5	%
Operating Income	70			71			(1		)	(1.4	)%	146			144			2		1.4	%
Operating Margin	12.4		%	13.1		%						12.9		%	13.8		%

Three Months Ended June 30, 2018 and 2017

Asia Pacific unit sales in the second quarter of 2018 increased 0.2 million units, or 2.0%, to 7.5 million units. OE tire volume increased 0.3 million units, or 9.2%, primarily in our consumer business due to growth in China, which was tempered by softening market conditions. Replacement tire volume decreased 0.1 million units, or 2.6%, and was also impacted by softening market conditions in China.

Net sales in the second quarter of 2018 were $563 million, increasing $20 million, or 3.7%, from $543 million in the second quarter of 2017. Net sales increased due to higher unit volumes of $10 million, improvements in price and product mix of $9 million, and favorable foreign currency translation of $6 million, primarily related to the strengthening of the Chinese yuan. These increases were partially offset by lower sales in other tire-related businesses of $5 million, primarily in the retail business.

Operating income in the second quarter of 2018 was $70 million, decreasing $1 million, or 1.4%, from $71 million in the second quarter of 2017. Operating income decreased due to lower price and product mix of $11 million, which more than offset improvements in raw material costs of $5 million, higher research and development costs of $5 million, and lower income in other tire-related businesses of $3 million. These decreases in operating income were partially offset by lower SAG of $5 million, lower conversion costs of $4 million, and higher tire unit volume of $3 million.

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Six Months Ended June 30, 2018 and 2017

Asia Pacific unit sales in the first six months of 2018 increased 0.5 million units, or 3.2%, to 15.1 million units. OE tire volume increased 0.6 million units, or 10.3%, primarily in our consumer business due to growth in China. Replacement tire volume decreased 0.1 million units, or 1.4%.

Net sales in the first six months of 2018 were $1,134 million, increasing $89 million, or 8.5%, from $1,045 million in the first six months of 2017. Net sales increased due to improvements in price and product mix of $36 million, favorable foreign currency translation of $31 million, primarily related to the strengthening of the Chinese yuan, and higher tire unit volume of $30 million. These increases were partially offset by lower sales in other tire-related businesses of $8 million, primarily in the retail business.

Operating income in the first six months of 2018 was $146 million, increasing $2 million, or 1.4%, from $144 million in the first six months of 2017. Operating income increased due to lower conversion costs of $10 million, primarily due to lower unabsorbed overhead, higher tire unit volume of $9 million, and favorable foreign currency translation of $7 million. These increases in operating income were partially offset by higher research and development costs of $8 million, higher raw material costs of $6 million, lower income in other tire-related businesses of $5 million, and lower price and product mix of $3 million.

Operating income in the first six months of 2018 excluded net rationalization charges of $3 million. Operating income in the first six months of 2017 excluded net rationalization charges of $1 million.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash generated from our operating and financing activities. Our cash flows from operating activities are driven primarily by our operating results and changes in our working capital requirements and our cash flows from financing activities are dependent upon our ability to access credit or other capital.

On March 7, 2018, we amended and restated our $400 million second lien term loan facility. As a result of the amendment, the term loan now matures on March 7, 2025 and continues to bear interest at 200 basis points over LIBOR.

At June 30, 2018, we had $975 million in Cash and cash equivalents, compared to $1,043 million at December 31, 2017. For the six months ended June 30, 2018, net cash used by operating activities was $84 million, primarily driven by cash used for working capital of $444 million, rationalization payments of $131 million, pension contributions and direct payments of $42 million and lower accrued interest of $31 million. These decreases in cash were partially offset by cash derived from net income of $244 million, which includes net non-cash charges of $337 million for depreciation and amortization, as well as our provision for deferred income taxes. Net cash used in investing activities was $470 million, primarily reflecting capital expenditures. Net cash provided by financing activities was $519 million, primarily due to net borrowings of $703 million, partially offset by cash used for common stock repurchases and dividends of $167 million.

At June 30, 2018, we had $2,248 million of unused availability under our various credit agreements, compared to $3,196 million at December 31, 2017. The table below presents unused availability under our credit facilities at those dates:

	June 30,		December 31,
(In millions)	2018		2017
First lien revolving credit facility	$	1,262	$	1,667
European revolving credit facility	330		659
Chinese credit facilities	123		217
Other foreign and domestic debt	280		298
Notes payable and overdrafts	253		355
	$	2,248	$	3,196

We have deposited our cash and cash equivalents and entered into various credit agreements and derivative contracts with financial institutions that we considered to be substantial and creditworthy at the time of such transactions. We seek to control our exposure to these financial institutions by diversifying our deposits, credit agreements and derivative contracts across multiple financial institutions, by setting deposit and counterparty credit limits based on long term credit ratings and other indicators of credit risk such as credit default swap spreads, and by monitoring the financial strength of these financial institutions on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to financial institutions in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a financial institution. However, we cannot provide assurance that we will not experience losses or delays in accessing our deposits or lines of credit due to the nonperformance of a financial institution. Our inability to access our cash deposits or make draws on our lines of credit, or the inability of a counterparty to fulfill its contractual obligations to us, could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs.

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We expect our 2018 cash flow needs to include capital expenditures of approximately $900 million. We also expect interest expense to range between $325 million and $350 million, restructuring payments to be approximately $185 million, dividends on our common stock to be approximately $135 million, and contributions to our funded non-U.S. pension plans to be approximately $25 million to $50 million. We expect working capital to be a use of cash of approximately $150 million in 2018. We intend to operate the business in a way that allows us to address these needs with our existing cash and available credit if they cannot be funded by cash generated from operations.

We believe that our liquidity position is adequate to fund our operating and investing needs and debt maturities in 2018 and to provide us with flexibility to respond to further changes in the business environment.

Our ability to service debt and operational requirements is also dependent, in part, on the ability of our subsidiaries to make distributions of cash to various other entities in our consolidated group, whether in the form of dividends, loans or otherwise. In certain countries where we operate, such as China and South Africa, transfers of funds into or out of such countries by way of dividends, loans, advances or payments to third-party or affiliated suppliers are generally or periodically subject to certain requirements, such as obtaining approval from the foreign government and/or currency exchange board before net assets can be transferred out of the country. In addition, certain of our credit agreements and other debt instruments limit the ability of foreign subsidiaries to make distributions of cash. Thus, we would have to repay and/or amend these credit agreements and other debt instruments in order to use this cash to service our consolidated debt. Because of the inherent uncertainty of satisfactorily meeting these requirements or limitations, we do not consider the net assets of our subsidiaries, including our Chinese and South African subsidiaries, that are subject to such requirements or limitations to be integral to our liquidity or our ability to service our debt and operational requirements. At June 30, 2018, approximately $762 million of net assets, including $169 million of cash and cash equivalents, were subject to such requirements. The requirements we must comply with to transfer funds out of China and South Africa have not adversely impacted our ability to make transfers out of those countries.

Operating Activities

Net cash used by operating activities was $84 million in the first six months of 2018, decreasing $101 million compared to net cash used by operating activities of $185 million in the first six months of 2017.

The decrease in net cash used by operating activities was driven by a $318 million decrease in cash used for working capital, partially offset by a $154 million decrease in operating income from our SBUs and a $77 million increase in cash used to fund rationalization payments, primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany. Cash used for inventory decreased by $260 million during the first half of 2018, reflecting lower comparative average raw material prices and a decrease in ending inventory units on hand. Accounts Payable — Trade increased, providing a year-over-year cash flow benefit of $63 million, primarily due to production increases during the second quarter of 2018 to support increased sales volume.

Investing Activities

Net cash used in investing activities was $470 million in the first six months of 2018, compared to $498 million in the first six months of 2017. Capital expenditures were $442 million in the first six months of 2018, compared to $497 million in the first six months of 2017. Beyond expenditures required to sustain our facilities, capital expenditures in 2018 and 2017 primarily related to the construction of a new manufacturing facility in Mexico and investments in additional capacity around the world.

Financing Activities

Net cash provided by financing activities was $519 million in the first six months of 2018, compared to net cash provided by financing activities of $426 million in the first six months of 2017. Financing activities in 2018 included net borrowings of $703 million, which were partially offset by common stock repurchases of $100 million, dividends on our common stock of $67 million, and minority share repurchases of $26 million. Financing activities in 2017 included net borrowings of $538 million, which were partially offset by dividends on our common stock of $50 million, debt related costs and other transactions of $38 million, primarily due to debt refinancing activities, and common stock repurchases of $30 million.

Credit Sources

In aggregate, we had total credit arrangements of $8,632 million available at June 30, 2018, of which $2,248 million were unused, compared to $8,963 million available at December 31, 2017, of which $3,196 million were unused. At June 30, 2018, we had long term credit arrangements totaling $8,044 million, of which $1,995 million were unused, compared to $8,346 million and $2,841 million, respectively, at December 31, 2017. At June 30, 2018, we had short term committed and uncommitted credit arrangements totaling $588 million, of which $253 million were unused, compared to $617 million and $355 million, respectively, at December 31, 2017. The continued availability of the short term uncommitted arrangements is at the discretion of the relevant lender and may be terminated at any time.

Outstanding Notes

At June 30, 2018, we had $3,318 million of outstanding notes, compared to $3,325 million at December 31, 2017.

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$2.0 Billion Amended and Restated First Lien Revolving Credit Facility due 2021

Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million. Availability under the facility is subject to a borrowing base, which is based primarily on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the value of our principal trademarks, and (iii) certain cash in an amount not to exceed $200 million. To the extent that our eligible accounts receivable and inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. In addition, if the amount of outstanding borrowings and letters of credit under the facility exceeds the borrowing base, we are required to prepay borrowings and/or cash collateralize letters of credit sufficient to eliminate the excess. As of June 30, 2018, our borrowing base, and therefore our availability, under the facility was $361 million below the facility's stated amount of $2.0 billion. Based on our current liquidity, amounts drawn under this facility bear interest at LIBOR plus 125 basis points, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

At June 30, 2018, we had $340 million of borrowings and $37 million of letters of credit issued under the revolving credit facility. At December 31, 2017, we had no borrowings and $37 million of letters of credit issued under the revolving credit facility.

During 2016, we began entering into bilateral letter of credit agreements.  At June 30, 2018, we had$353 million in letters of credit issued under these agreements.

$400 Million Amended and Restated Second Lien Term Loan Facility due 2025

In March 2018, we amended and restated our second lien term loan facility. As a result of the amendment, the term loan, which previously matured on April 30, 2019, now matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). After March 7, 2018 and prior to September 3, 2018, (i) loans under the facility may not be prepaid or repaid with the proceeds of term loan indebtedness, or converted into or replaced by new term loans, bearing interest at an effective interest rate that is less than the effective interest rate then applicable to such loans and (ii) no amendment of the facility may be made that, directly or indirectly, reduces the effective interest rate applicable to the loans under the facility, in each case unless we pay a fee equal to 1.0% of the principal amount of the loans so affected. In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility.

At June 30, 2018 and December 31, 2017, the amounts outstanding under this facility were $400 million.

€550 Million Amended and Restated Senior Secured European Revolving Credit Facility due 2020

Our amended and restated €550 million European revolving credit facility consists of (i) a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a €425 million all-borrower tranche that is available to Goodyear Dunlop Tires Europe B.V. ("GDTE"), GDTG and Goodyear Dunlop Tires Operations S.A. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under the facility will bear interest at LIBOR plus 175 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 175 basis points for loans denominated in euros, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

At June 30, 2018, there were $140 million (€120 million) of borrowings outstanding under the German tranche, $170 million (€146 million) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2017, there were no borrowings and no letters of credit outstanding under the European revolving credit facility.

Each of our first lien revolving credit facility and our European revolving credit facility have customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2015 under the first lien facility and December 31, 2014 under the European facility.

Accounts Receivable Securitization Facilities (On-Balance Sheet)

GDTE and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2019. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €30 million and not more than €450 million. For the period from October 16, 2017 to October 15, 2018, the designated maximum amount of the facility was reduced to €275 million.

The facility involves an ongoing daily sale of substantially all of the trade accounts receivable of certain GDTE subsidiaries to a bankruptcy-remote French company controlled by one of the liquidity banks in the facility. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances.

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The funding commitments under the facility will expire upon the earliest to occur of: (a) September 25, 2019, (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 15, 2018.

At June 30, 2018, the amounts available and utilized under this program totaled $177 million (€152 million). At December 31, 2017, the amounts available and utilized under this program totaled $224 million (€187 million). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases.

Accounts Receivable Factoring Facilities (Off-Balance Sheet)

We have sold certain of our trade receivables under off-balance sheet programs during the first six months of 2018. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At June 30, 2018, the gross amount of receivables sold was $513 million, compared to $572 million at December 31, 2017.

Supplier Financing

We have entered into payment processing agreements with several financial institutions. Under these agreements, the financial institution acts as our paying agent with respect to accounts payable due to our suppliers. These agreements also allow our suppliers to sell their receivables to the financial institutions at the sole discretion of both the supplier and the financial institution on terms that are negotiated between them. We are not always notified when our suppliers sell receivables under these programs. Our obligations to our suppliers, including the amounts due and scheduled payment dates, are not impacted by our suppliers' decisions to sell their receivables under the programs. Agreements for such financing programs totaled up to $500 million at June 30, 2018 and December 31, 2017.

Further Information

For a further description of the terms of our outstanding notes, first lien revolving credit facility, second lien term loan facility, European revolving credit facility and pan-European accounts receivable securitization facility, please refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in our 2017 Form 10-K and Note to the Consolidated Financial Statements No. 8, Financing Arrangements and Derivative Financial Instruments, in this Form 10-Q.

Covenant Compliance

Our first and second lien credit facilities and some of the indentures governing our notes contain certain covenants that, among other things, limit our ability to incur additional debt or issue redeemable preferred stock, pay dividends, repurchase shares or make certain other restricted payments or investments, incur liens, sell assets, incur restrictions on the ability of our subsidiaries to pay dividends or to make other payments to us, enter into affiliate transactions, engage in sale and leaseback transactions, and consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications. Our first and second lien credit facilities and the indentures governing our notes also have customary defaults, including cross-defaults to material indebtedness of Goodyear and its subsidiaries.

We have additional financial covenants in our first and second lien credit facilities that are currently not applicable. We only become subject to these financial covenants when certain events occur. These financial covenants and related events are as follows:

• We become subject to the financial covenant contained in our first lien revolving credit facility when the aggregate amount of our Parent Company (The Goodyear Tire & Rubber Company) and guarantor subsidiaries cash and cash equivalents (“Available Cash”) plus our availability under our first lien revolving credit facility is less than $200 million. If this were to occur, our ratio of EBITDA to Consolidated Interest Expense may not be less than 2.0 to 1.0 for the most recent period of four consecutive fiscal quarters. As of June 30, 2018, our availability under this facility of $1,262 million, plus our Available Cash of $184 million, totaled $1,446 million, which is in excess of $200 million.

• We become subject to a covenant contained in our second lien credit facility upon certain asset sales. The covenant provides that, before we use cash proceeds from certain asset sales to repay any junior lien, senior unsecured or subordinated indebtedness, we must first offer to use such cash proceeds to prepay borrowings under the second lien credit facility unless our ratio of Consolidated Net Secured Indebtedness to EBITDA (Pro Forma Senior Secured Leverage Ratio) for any period of four consecutive fiscal quarters is equal to or less than 3.0 to 1.0.

In addition, our European revolving credit facility contains non-financial covenants similar to the non-financial covenants in our first and second lien credit facilities that are described above and a financial covenant applicable only to GDTE and its subsidiaries. This financial covenant provides that we are not permitted to allow GDTE’s ratio of Consolidated Net J.V. Indebtedness to Consolidated European J.V. EBITDA for a period of four consecutive fiscal quarters to be greater than 3.0 to 1.0 at the end of any

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fiscal quarter. Consolidated Net J.V. Indebtedness is determined net of the sum of cash and cash equivalents in excess of $100 million held by GDTE and its subsidiaries, cash and cash equivalents in excess of $150 million held by the Parent Company and its U.S. subsidiaries, and availability under our first lien revolving credit facility if the ratio of EBITDA to Consolidated Interest Expense described above is not applicable and the conditions to borrowing under the first lien revolving credit facility are met. Consolidated Net J.V. Indebtedness also excludes loans from other consolidated Goodyear entities. This financial covenant is also included in our pan-European accounts receivable securitization facility. At June 30, 2018, we were in compliance with this financial covenant.

Our credit facilities also state that we may only incur additional debt or make restricted payments that are not otherwise expressly permitted if, after giving effect to the debt incurrence or the restricted payment, our ratio of EBITDA to Consolidated Interest Expense for the prior four fiscal quarters would exceed 2.0 to 1.0. Certain of our senior note indentures have substantially similar limitations on incurring debt and making restricted payments. Our credit facilities and indentures also permit the incurrence of additional debt through other provisions in those agreements without regard to our ability to satisfy the ratio-based incurrence test described above. We believe that these other provisions provide us with sufficient flexibility to incur additional debt necessary to meet our operating, investing and financing needs without regard to our ability to satisfy the ratio-based incurrence test.

Covenants could change based upon a refinancing or amendment of an existing facility, or additional covenants may be added in connection with the incurrence of new debt.

At June 30, 2018, we were in compliance with the currently applicable material covenants imposed by our principal credit facilities and indentures.

The terms “Available Cash,” “EBITDA,” “Consolidated Interest Expense,” “Consolidated Net Secured Indebtedness,” “Pro Forma Senior Secured Leverage Ratio,” “Consolidated Net J.V. Indebtedness” and “Consolidated European J.V. EBITDA” have the meanings given them in the respective credit facilities.

Potential Future Financings

In addition to our previous financing activities, we may seek to undertake additional financing actions which could include restructuring bank debt or capital markets transactions, possibly including the issuance of additional debt or equity. Given the inherent uncertainty of market conditions, access to the capital markets cannot be assured.

Our future liquidity requirements may make it necessary for us to incur additional debt. However, a substantial portion of our assets are already subject to liens securing our indebtedness. As a result, we are limited in our ability to pledge our remaining assets as security for additional secured indebtedness. In addition, no assurance can be given as to our ability to raise additional unsecured debt.

Dividends and Common Stock Repurchase Program

Under our primary credit facilities and some of our note indentures, we are permitted to pay dividends on and repurchase our capital stock (which constitute restricted payments) as long as no default will have occurred and be continuing, additional indebtedness can be incurred under the credit facilities or indentures following the payment, and certain financial tests are satisfied.

In the first six months of 2018, we paid cash dividends of $67 million on our common stock. On July 14, 2018, the Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.14 per share of common stock, or approximately $33 million in the aggregate. The dividend will be paid on September 4, 2018 to stockholders of record as of the close of business on August 1, 2018. Future quarterly dividends are subject to Board approval.

On September 18, 2013, the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion. This program expires on December 31, 2019. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During the second quarter of 2018, we repurchased 2,976,414 shares at an average price, including commissions, of $25.20 per share, or $75 million in the aggregate. During the first six months of 2018, we repurchased 3,851,092 shares at an average price, including commissions, of $25.97 per share, or $100 million in the aggregate. Since 2013, we repurchased 47,820,749 shares at an average price, including commissions, of $29.56 per share, or $1,413 million in the aggregate.

The restrictions imposed by our credit facilities and indentures did not affect our ability to pay the dividends on or repurchase our capital stock as described above, and are not expected to affect our ability to pay similar dividends or make similar repurchases in the future.

Asset Dispositions

The restrictions on asset sales imposed by our material indebtedness have not affected our strategy of divesting non-core businesses, and those divestitures have not affected our ability to comply with those restrictions.

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FORWARD-LOOKING INFORMATION — SAFE HARBOR STATEMENT

Certain information in this Form 10-Q (other than historical data and information) may constitute forward-looking statements regarding events and trends that may affect our future operating results and financial position. The words “estimate,” “expect,” “intend” and “project,” as well as other words or expressions of similar meaning, are intended to identify forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. Such statements are based on current expectations and assumptions, are inherently uncertain, are subject to risks and should be viewed with caution. Actual results and experience may differ materially from the forward-looking statements as a result of many factors, including:

• if we do not successfully implement our strategic initiatives, our operating results, financial condition and liquidity may be materially adversely affected;

• we face significant global competition and our market share could decline;

• deteriorating economic conditions in any of our major markets, or an inability to access capital markets or third-party financing when necessary, may materially adversely affect our operating results, financial condition and liquidity;

• raw material and energy costs may materially adversely affect our operating results and financial condition;

• if we experience a labor strike, work stoppage or other similar event our business, results of operations, financial condition and liquidity could be materially adversely affected;

• we could be negatively impacted by the imposition of tariffs on tires and other goods;

• our international operations have certain risks that may materially adversely affect our operating results, financial condition and liquidity;

• we have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity;

• our long term ability to meet our obligations, to repay maturing indebtedness or to implement strategic initiatives may be dependent on our ability to access capital markets in the future and to improve our operating results;

• financial difficulties, work stoppages, supply disruptions or economic conditions affecting our major customers, dealers or suppliers could harm our business;

• our capital expenditures may not be adequate to maintain our competitive position and may not be implemented in a timely or cost-effective manner;

• we have a substantial amount of debt, which could restrict our growth, place us at a competitive disadvantage or otherwise materially adversely affect our financial health;

• any failure to be in compliance with any material provision or covenant of our debt instruments, or a material reduction in the borrowing base under our revolving credit facility, could have a material adverse effect on our liquidity and operations;

• our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly;

• we have substantial fixed costs and, as a result, our operating income fluctuates disproportionately with changes in our net sales;

• we may incur significant costs in connection with our contingent liabilities and tax matters;

• our reserves for contingent liabilities and our recorded insurance assets are subject to various uncertainties, the outcome of which may result in our actual costs being significantly higher than the amounts recorded;

• we are subject to extensive government regulations that may materially adversely affect our operating results;

• we may be adversely affected by any disruption in, or failure of, our information technology systems due to computer viruses, unauthorized access, cyber-attack, natural disasters or other similar disruptions;

• if we are unable to attract and retain key personnel, our business could be materially adversely affected; and

• we may be impacted by economic and supply disruptions associated with events beyond our control, such as war, acts of terror, political unrest, public health concerns, labor disputes or natural disasters.

It is not possible to foresee or identify all such factors. We will not revise or update any forward-looking statement or disclose any facts, events or circumstances that occur after the date hereof that may affect the accuracy of any forward-looking statement.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes.

Commodity Price Risk

The raw material costs to which our operations are principally exposed include the cost of natural rubber, synthetic rubber, carbon black, fabrics, steel cord and other petrochemical-based commodities. Approximately two-thirds of our raw materials are petroleum-based, the cost of which may be affected by fluctuations in the price of oil. We currently do not hedge commodity prices. We do, however, use various strategies to partially offset cost increases for raw materials, including centralizing purchases of raw materials through our global procurement organization in an effort to leverage our purchasing power, expanding our capabilities to substitute lower cost raw materials, and reducing the amount of material required in each tire.

Interest Rate Risk

We continuously monitor our fixed and floating rate debt mix. Within defined limitations, we manage the mix using refinancing. At June 30, 2018, 40% of our debt was at variable interest rates averaging 4.08%.

The following table presents information about long term fixed rate debt, excluding capital leases, at June 30, 2018:

(In millions)
Carrying amount — liability	$	3,604
Fair value — liability	3,541
Pro forma fair value — liability	3,685

The pro forma information assumes a 100 basis point decrease in market interest rates at June 30, 2018, and reflects the estimated fair value of fixed rate debt outstanding at that date under that assumption. The sensitivity of our fixed rate debt to changes in interest rates was determined using current market pricing models.

Foreign Currency Exchange Risk

We enter into foreign currency contracts in order to reduce the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation.

The following table presents net foreign currency contract information at June 30, 2018:

(In millions)
Fair value — asset (liability)	$	26
Pro forma decrease in fair value	(187		)
Contract maturities	7/18-6/20

The pro forma decrease in fair value assumes a 10% adverse change in underlying foreign exchange rates at June 30, 2018, and reflects the estimated change in the fair value of contracts outstanding at that date under that assumption. The sensitivity of our foreign currency positions to changes in exchange rates was determined using current market pricing models.

Fair values are recognized on the Consolidated Balance Sheet at June 30, 2018 as follows:

(In millions)
Current asset (liability):
Accounts receivable	$	31
Other current liabilities	(7		)
Long term asset (liability):
Other assets	$	2
Other long term liabilities	—

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For further information on foreign currency contracts, refer to Notes to the Consolidated Financial Statements No. 8, Financing Arrangements and Derivative Financial Instruments, in this Form 10-Q. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for a discussion of our management of counterparty risk.

ITEM 4. CONTROLS AND PROCEDURES.

Management’s Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures” which, consistent with Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, we define to mean controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that such information is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Our management, with the participation of our principal executive and financial officers, has evaluated the effectiveness of our disclosure controls and procedures. Based on such evaluation, our principal executive and financial officers have concluded that such disclosure controls and procedures were effective as of June 30, 2018 (the end of the period covered by this Quarterly Report on Form 10-Q).

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Asbestos Litigation

As reported in our Form 10-K for the year ended December 31, 2017, we were one of numerous defendants in legal proceedings in certain state and federal courts involving approximately 54,300 claimants relating to their alleged exposure to materials containing asbestos in products allegedly manufactured by us or asbestos materials present in our facilities. During the first six months of 2018, approximately 900 new claims were filed against us and approximately 5,700 were settled or dismissed. The amount expended on asbestos defense and claim resolution by Goodyear and its insurance carriers during the second quarter and first six months of 2018 was $4 million and $7 million, respectively. At June 30, 2018, there were approximately 49,500 asbestos claims pending against us. The plaintiffs are seeking unspecified actual and punitive damages and other relief. Refer to Note to the Consolidated Financial Statements No. 12, Commitments and Contingent Liabilities, in this Form 10-Q for additional information on asbestos litigation.

Reference is made to Item 3 of Part I of our 2017 Form 10-K and to Item 1 of Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018 for additional discussion of legal proceedings.

ITEM 1A. RISK FACTORS

Refer to "Item 1A. Risk Factors" in our 2017 Form 10-K for a discussion of our risk factors.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table presents information with respect to repurchases of common stock made by us during the three months ended June 30, 2018.

	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
Period
4/1/18-4/30/18	—	$	—	—	$	761,495,838
5/1/18-5/31/18	1,512,635	25.50		1,512,635	722,918,670
6/1/18-6/30/18	1,463,779	24.88		1,463,779	686,495,841
Total	2,976,414	$	25.20	2,976,414	$	686,495,841

(1) Total number of shares purchased as part of our common stock repurchase program and delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of stock options or the vesting or payment of stock awards.

(2) On September 18, 2013, the Board of Directors authorized $100 million for use in our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion. This program expires on December 31, 2019. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During the three month period ended June 30, 2018, we repurchased 2,976,414 shares at an average price, including commissions, of $25.20 per share, or $75 million in the aggregate.

ITEM 6. EXHIBITS.

Refer to the Index of Exhibits at page 50, which is by specific reference incorporated into and made a part of this Quarterly Report on Form 10-Q.

___________________

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THE GOODYEAR TIRE & RUBBER COMPANY

Quarterly Report on Form 10-Q

For the Quarter Ended June 30, 2018

INDEX OF EXHIBITS

Exhibit
Table
Item		Exhibit
No.	Description of Exhibit	Number
10	Material Contracts
(a)	Letter Agreement, dated June 22, 2018, between the Company and Joseph Zekoski.	10.1
12	Statement re Computation of Ratios
(a)	Statement setting forth the Computation of Ratio of Earnings to Fixed Charges.	12.1
31	302 Certifications
(a)	Certificate of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	31.1
(b)	Certificate of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	31.2
32	906 Certifications
(a)	Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	32.1
101	Interactive Data File
(a)	The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, formatted in XBRL: (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.	101

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE GOODYEAR TIRE & RUBBER COMPANY
		(Registrant)
Date:	July 27, 2018	By	/s/  EVAN M. SCOCOS
		Evan M. Scocos, Vice President and Controller (Signing on behalf of the Registrant as a duly authorized officer of the Registrant and signing as the principal accounting officer of the Registrant.)

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EX-10

EXHIBIT 10.1

The Goodyear Tire & Rubber Company

Akron, Ohio 44316-0001

June 22, 2018

Joseph Zekoski

Senior Vice President, Global Operations & Technology

Re:    Retention Agreement

Dear Joe:

As you are aware, you are a key member of the management team of The Goodyear Tire & Rubber Company (the “Company”) who will help us continue in our success and move us forward in meeting our long-term business objectives. The purpose of this letter is to let you know that you are a valued associate of the Company and that the Company recognizes that your skills and experience are critical to the Company.

As such, we have developed a special arrangement designed to apply to you. By executing this Retention Agreement, you will be eligible to receive the following Retention Bonuses (as defined below):

a. A lump sum payment of $450,000 (“Retention Bonus A”), if you remain an associate of the Company and actively provide the services required of you through at least February 28, 2019 (“Retention Date A”), subject to the conditions contained herein; and

b. A guarantee of your annual incentive compensation at target for the year ending December 31, 2018 (“Retention Date B”) in an amount not to exceed $448,000 (“Retention Bonus B”).

Assuming all conditions are met, Retention Bonus A will be paid as soon as practicable in March 2019 and Retention Bonus B will be paid no later than March 15, 2019, and will be subject to withholding taxes as required by law. Retention Bonus A and Retention Bonus B (collectively, the “Retention Bonuses”) will be payable in addition to your regular annual salary, benefits and participation in the Company’s incentive compensation plans. Since the Retention Bonuses represent unique payments to you, the Retention Bonuses will not be considered in calculating compensation-related benefits (e.g., pension benefits).

As part of this agreement, you agree to continue to follow the policies and procedures established by the Company, which may change from time to time, work directions from the Company’s management team, and the provisions set forth herein. Payment of the respective Retention Bonuses will be subject to the Company being satisfied (in its reasonable judgment) with (1) your cooperation, diligence and loyalty through Retention Date A or Retention Date B, as the case may be, (2) your performance through Retention Date A or Retention Date B, as the case may be, (3) your compliance with all Company policies and procedures and other agreements with the Company through Retention Date A or Retention Date B, as the case may be, and (4) the continuation of your active employment with the Company through Retention Date A or Retention Date B, as the case may be.

If the Company terminates your employment prior to either Retention Date A or Retention Date B for other than cause, you will be entitled to receive Retention Bonus A and Retention Bonus B, in accordance with the terms of

this agreement. For purposes of this agreement, “cause” includes, but is not limited to, (1) the failure to act in a cooperative, diligent and loyal manner, (2) an act of fraud, embezzlement or theft in connection with your duties or in the course of your employment with the Company, or (3) misconduct that is injurious to the Company, monetarily or otherwise, such as violations of the Company’s Business Conduct Manual.

If you voluntarily leave the Company, or if the Company terminates your employment for cause, prior to Retention Date A and/or Retention Date B, you will not receive Retention Bonus A and/or Retention Bonus B.

In the event of your permanent disability or death prior to Retention Date A you or your estate will receive Retention Bonus A pro-rated from the date of this agreement to your last day worked. In the event of your permanent disability or death prior to Retention Date B, you or your estate will receive Retention Bonus B, pro-rated from the date of this agreement to your last day worked. For purposes of this agreement, disability is defined in accordance with the Company’s long-term disability program. These amounts will be paid within sixty (60) days of your permanent disability or death.

You and the Company agree that this letter agreement constitutes the entire agreement and supersedes all prior agreements or understandings, whether oral or written, between you and the Company with respect to the subject matter of this agreement. Any modifications to this agreement must be in writing and signed by you and an authorized employee or agent of the Company. This Retention Agreement is governed by and will be construed in accordance with the laws of the State of Ohio.

Please take the time to review this Retention Agreement carefully and address any questions you may have to me. If you wish to accept the foregoing offer, please sign and date below and return to me. Please keep a copy of this letter for your files.

Sincerely,

/s/ John T. Lucas        

John Lucas

Senior Vice President, Global Human Resources

AGREED:

/s/ Joseph Zekoski        June 22, 2018            

Joseph Zekoski                        Date

EX-12

EXHIBIT 12.1

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)	Six Months Ended June 30,		Year Ended December 31,
EARNINGS	2018		2017			2016			2015			2014		2013
Pre-tax income before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	295	$	884		$	1,206		$	592		$	658	$	782
Add:
Amortization of previously capitalized interest	7		13			13			12			11		10
Distributed income of equity investees	—		5			25			24			24		21
Total additions	7		18			38			36			35		31
Deduct:
Capitalized interest	8		23			26			19			24		39
Minority interest in pre-tax income of consolidated subsidiaries with no fixed charges	—		4			8			8			14		26
Total deductions	8		27			34			27			38		65
TOTAL EARNINGS	$	294	$	875		$	1,210		$	601		$	655	$	748
FIXED CHARGES
Interest expense	$	157	$	347		$	391		$	438		$	439	$	407
Debt extinguishment costs included in interest expense	—		(6		)	(12		)	(17		)	—		—
Capitalized interest	8		23			26			19			24		39
Interest portion of rental expense (1)	52		104			100			97			114		119
TOTAL FIXED CHARGES	$	217	$	468		$	505		$	537		$	577	$	565
TOTAL EARNINGS BEFORE FIXED CHARGES	$	511	$	1,343		$	1,715		$	1,138		$	1,232	$	1,313
RATIO OF EARNINGS TO FIXED CHARGES	2.35		2.87			3.40			2.12			2.14		2.32

(1) Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.

EX-31

EXHIBIT 31.1

CERTIFICATION

I, Richard J. Kramer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Goodyear Tire & Rubber Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 27, 2018

 /s/  RICHARD J. KRAMER

Richard J. Kramer

Chairman of the Board, President and Chief Executive Officer

(Principal Executive Officer)

EX-31

EXHIBIT 31.2

CERTIFICATION

I, Laura K. Thompson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Goodyear Tire & Rubber Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 27, 2018

/s/  LAURA K. THOMPSON

Laura K. Thompson

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32

EXHIBIT 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of The Goodyear Tire & Rubber Company, an Ohio corporation (the “Company”), hereby certifies with respect to the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2018 as filed with the Securities and Exchange Commission (the “10-Q Report”) that to his or her knowledge:

(1) the 10-Q Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	July 27, 2018	/s/  RICHARD J. KRAMER
		Richard J. Kramer Chairman of the Board, President and Chief Executive Officer The Goodyear Tire & Rubber Company
Dated:	July 27, 2018	/s/  LAURA K. THOMPSON
		Laura K. Thompson Executive Vice President and Chief Financial Officer The Goodyear Tire & Rubber Company

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	GOODYEAR TIRE & RUBBER CO /OH/
Entity Central Index Key	0000042582
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding	237,015,745

XML

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net Sales (Note 2)	$ 3,841	$ 3,686	$ 7,671	$ 7,385
Cost of Goods Sold	2,949	2,785	5,925	5,545
Selling, Administrative and General Expense	588	579	1,179	1,155
Rationalizations (Note 3)	(2)	27	35	56
Interest Expense	78	89	154	176
Other (Income) Expense (Note 4)	45	16	82	24
Income before Income Taxes	183	190	296	429
United States and Foreign Tax Expense (Note 5)	19	36	52	106
Net Income (Loss)	164	154	244	323
Less: Minority Shareholders’ Net Income	7	7	12	10
Goodyear Net Income	$ 157	$ 147	$ 232	$ 313
Goodyear Net Income — Per Share of Common Stock
Basic (dollars per share)	$ 0.66	$ 0.58	$ 0.97	$ 1.24
Weighted Average Shares Outstanding - Basic (Note 6) (shares)	239	252	240	252
Diluted (dollars per share)	$ 0.65	$ 0.58	$ 0.96	$ 1.23
Weighted Average Shares Outstanding - Diluted (Note 6) (shares)	241	256	242	256
Cash Dividends Declared Per Common Share (Note 13) (dollars per share)	$ 0.14	$ 0.10	$ 0.28	$ 0.2

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 164	$ 154	$ 244	$ 323
Other Comprehensive Income (Loss):
Foreign currency translation, net of tax of ($6) and ($8) in 2018 ($16 and $19 in 2017)	(231)	50	(149)	134
Defined benefit plans:
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $8 and $16 in 2018 ($11 and $21 in 2017)	26	19	53	39
(Increase)/Decrease in net actuarial losses, net of tax of $5 and $6 in 2018 ($0 and $1 in 2017)	16	(1)	19	3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 and $2 in 2018 ($0 and $0 in 2017)	4	0	4	0
Deferred derivative gains (losses), net of tax of $4 and $2 in 2018 (($5) and ($7) in 2017)	10	(8)	6	(14)
Reclassification adjustment for amounts recognized in income, net of tax of $1 and $2 in 2018 ($0 and ($1) in 2017)	2	(2)	5	(3)
Other Comprehensive Income (Loss)	(173)	58	(62)	159
Comprehensive Income (Loss)	(9)	212	182	482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	(11)	14	(4)	23
Goodyear Comprehensive Income	$ 2	$ 198	$ 186	$ 459

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Comprehensive Income (Loss):
Foreign currency translation, tax	$ (6)	$ 16	$ (8)	$ 19
Defined benefit plans:
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax	8	11	16	21
(Increase)/Decrease in net actuarial losses, tax	5	0	6	1
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax	2	0	2	0
Deferred derivative gains (losses), tax	4	(5)	2	(7)
Reclassification adjustment for amounts recognized in income, tax	$ 1	$ 0	$ 2	$ (1)

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and Cash Equivalents	$ 975	$ 1,043
Accounts Receivable, less Allowance — $108 ($116 in 2017)	2,388	2,025
Inventories:
Raw Materials	530	466
Work in Process	160	142
Finished Products	2,251	2,179
Total Inventory	2,941	2,787
Prepaid Expenses and Other Current Assets	265	224
Total Current Assets	6,569	6,079
Goodwill	576	595
Intangible Assets	138	139
Deferred Income Taxes (Note 5)	2,035	2,008
Other Assets	804	792
Property, Plant and Equipment, less Accumulated Depreciation — $10,110 ($10,078 in 2017)	7,233	7,451
Total Assets	17,355	17,064
Current Liabilities:
Accounts Payable — Trade	2,880	2,807
Compensation and Benefits (Notes 10 and 11)	511	539
Other Current Liabilities	821	1,026
Notes Payable and Overdrafts (Note 8)	335	262
Long Term Debt and Capital Leases due Within One Year (Note 8)	286	391
Total Current Liabilities	4,833	5,025
Long Term Debt and Capital Leases (Note 8)	5,726	5,076
Compensation and Benefits (Notes 10 and 11)	1,369	1,515
Deferred Income Taxes (Note 5)	99	100
Other Long Term Liabilities	484	498
Total Liabilities	12,511	12,214
Commitments and Contingent Liabilities (Note 12)
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares — 237 and 240 million in 2018 and 2017 after deducting 41 and 38 million treasury shares in 2018 and 2017	237	240
Capital Surplus	2,214	2,295
Retained Earnings	6,208	6,044
Accumulated Other Comprehensive Loss	(4,022)	(3,976)
Goodyear Shareholders’ Equity	4,637	4,603
Minority Shareholders’ Equity — Nonredeemable	207	247
Total Shareholders’ Equity	4,844	4,850
Total Liabilities and Shareholders’ Equity	$ 17,355	$ 17,064

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Allowance for Accounts Receivable	$ 108	$ 116
Accumulated Depreciation	$ 10,110	$ 10,078
Goodyear Shareholders’ Equity:
Common Stock, par value (dollars per share)	$ 0	$ 0
Common Stock, authorized (shares)	450,000,000	450,000,000
Common Stock, outstanding (shares)	237,000,000	240,000,000
Treasury shares (shares)	41,000,000	38,000,000

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
Net Income	$ 244	$ 323
Adjustments to Reconcile Net Income to Cash Flows from Operating Activities:
Depreciation and Amortization	392	387
Amortization and Write-Off of Debt Issuance Costs	8	14
Provision for Deferred Income Taxes	(55)	45
Net Pension Curtailments and Settlements	3	1
Net Rationalization Charges (Note 3)	35	56
Rationalization Payments	(131)	(54)
Net (Gains) Losses on Asset Sales (Note 4)	0	(13)
Pension Contributions and Direct Payments	(42)	(45)
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:
Accounts Receivable	(475)	(470)
Inventories	(222)	(482)
Accounts Payable — Trade	253	190
Compensation and Benefits	(30)	(67)
Other Current Liabilities	(100)	27
Other Assets and Liabilities	36	(97)
Total Cash Flows from Operating Activities	(84)	(185)
Cash Flows from Investing Activities:
Capital Expenditures	(442)	(497)
Asset Dispositions (Note 4)	2	2
Short Term Securities Acquired	(30)	(43)
Short Term Securities Redeemed	38	43
Other Transactions	(38)	(3)
Total Cash Flows from Investing Activities	(470)	(498)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	1,012	290
Short Term Debt and Overdrafts Paid	(920)	(303)
Long Term Debt Incurred	3,544	3,456
Long Term Debt Paid	(2,933)	(2,905)
Common Stock Issued	3	11
Common Stock Repurchased (Note 13)	(100)	(30)
Common Stock Dividends Paid (Note 13)	(67)	(50)
Transactions with Minority Interests in Subsidiaries	(26)	(5)
Debt Related Costs and Other Transactions	6	(38)
Total Cash Flows from Financing Activities	519	426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(25)	37
Net Change in Cash, Cash Equivalents and Restricted Cash	(60)	(220)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	1,110	1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	$ 1,050	$ 969

XML

Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

ACCOUNTING POLICIES

ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America ("US GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).

Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2018.

Recently Adopted Accounting Standards

Effective January 1, 2018, we adopted an accounting standards update, and all related amendments, with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods or services. We applied the new guidance to all open contracts at the date of adoption using the modified retrospective method. We recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows:

	Balance at		Adjustment for			Balance at
(In millions)	December 31, 2017		New Standard			January 1, 2018
Accounts Receivable	$	2,025	$	3		$	2,028
Prepaid Expenses and Other Current Assets	224		7			231
Deferred Income Taxes — Asset	2,008		1			2,009
Accounts Payable — Trade	2,807		7			2,814
Other Current Liabilities	1,026		7			1,033
Retained Earnings	6,044		(3		)	6,041

The impact of the adoption of the standards update on our Consolidated Statements of Operations for the three and six month periods ended June 30, 2018 was an increase of $8 million and $7 million, respectively, to Net Sales, and an increase of$6 millionand$5 million, respectively, to Net Income.

The impact of the adoption of the standards update on our Consolidated Balance Sheet as of June 30, 2018 was as follows:

	As of June 30, 2018
			Balances
(In millions)	As Reported		Without Adoption		Effect of Change
Accounts Receivable	$	2,388	$	2,380	$	8
Prepaid Expenses and Other Current Assets	265		255		10
Deferred Income Taxes — Asset	2,035		2,036		(1		)
Accounts Payable — Trade	2,880		2,875		5
Other Current Liabilities	821		811		10
Retained Earnings	6,208		6,206		2

We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update intended to improve the financial statement presentation of pension and postretirement benefits cost. The new guidance requires employers that offer defined benefit pension or other postretirement benefit plans to report service cost in the same income statement line as compensation costs and to report non-service related costs separately from service cost outside a sub-total of income from operations, if one is presented. In addition, the new guidance allows only service cost to be capitalized. We applied the new guidance using the retrospective method. In alignment with the new standards update, we reclassified $7 million and $12 million of expense from Cost of Goods Sold ("CGS") and $4 million and $7 million of expense from Selling, Administrative and General Expense (“SAG”), including corporate related costs of $3 million and $6 million, to Other (Income) Expense for the three and six months ended June 30, 2017, respectively. The provision of the new standards update that allows only service cost to be capitalized resulted in an additional one-time charge of $9 million which was recorded in Other (Income) Expense for the six months ended June 30, 2018.

We expect service related costs of approximately $35 million per year, including approximately $5 million per year of corporate related costs, will remain in CGS and SAG. Further, we expect approximately $90 million of non-service related costs, including approximately $15 million of corporate related costs and excluding settlement/curtailment charges, to be classified in Other (Income) Expense during 2018.

Effective January 1, 2018, we adopted an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers.  As a result of using the modified retrospective adoption approach, $2 million was recorded as a cumulative effect adjustment to increase Retained Earnings, with Deferred Income Taxes increasing by $7 million and Other Assets decreasing by $5 million. We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update with new guidance to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires the application of modification accounting if the value, vesting conditions or classification of the award changes. The adoption of this standards update did not impact our consolidated financial statements.

Recently Issued Accounting Standards

In February 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act. The new guidance requires additional disclosures, regardless of whether the optional reclassification is elected. The standards update is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. Goodyear has elected not to adopt this optional reclassification.

In August 2017, the FASB issued an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The standards update is effective using a modified retrospective approach, with the presentation and disclosure guidance required prospectively, for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements.

In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases.  Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term.  The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet.  Lessor accounting is largely unchanged from the current accounting model.  The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. As originally issued, the standards update requires application at the beginning of the earliest comparative period presented at the time of adoption.  At its November 29, 2017 meeting, the FASB proposed allowing entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented.  While not yet issued, the FASB subsequently approved this update.  The standard also provides for certain practical expedients. We have completed aggregating our worldwide lease contracts, are currently in the process of evaluating these lease contracts and are implementing a new lease accounting system to support the accounting and disclosure requirements of this standards update. The adoption of this standards update will have a material impact on our financial statements as we have significant operating lease commitments that are off-balance sheet in accordance with current US GAAP.

Principles of Consolidation

The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation.

Restricted Cash

The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows:

	June 30,
(In millions)	2018		2017
Cash and Cash Equivalents	$	975	$	903
Restricted Cash	75		66
Total Cash, Cash Equivalents and Restricted Cash	$	1,050	$	969

Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs.  The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables.

Reclassifications and Adjustments

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation.

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Net Sales

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

NET SALES

NET SALES

The following table shows disaggregated net sales from contracts with customers by major source:

	Three Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	1,568	$	1,152	$	511	$	3,231
Other tire and related sales	159		98		32		289
Retail services and service related sales	144		9		19		172
Chemical	143		—		—		143
Other	4		1		1		6
Net Sales by reportable segment	$	2,018	$	1,260	$	563	$	3,841

	Six Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	3,074	$	2,361	$	1,029	$	6,464
Other tire and related sales	294		203		62		559
Retail services and service related sales	281		24		41		346
Chemical	291		—		—		291
Other	7		2		2		11
Net Sales by reportable segment	$	3,947	$	2,590	$	1,134	$	7,671

Tire unit sales consist of consumer, commercial, farm and off-the-road tire sales, including the sale of new Company-branded tires through Company-owned retail channels. Other tire and related sales consist of aviation, race, motorcycle and all-terrain vehicle tire sales, retread sales and other tire related sales. Sales of tires in this category are not included in reported tire unit information. Retail services and service related sales consist of automotive services performed for customers through our Company-owned retail channels, and includes service related products. Chemical sales relate to the sale of synthetic rubber and other chemicals to third-parties, and excludes intercompany sales. Other sales include items such as franchise fees and ancillary tire parts, such as tire rims, tire valves and valve stems.

Sales are recognized when obligations under the terms of a contract are satisfied and control is transferred. This generally occurs with shipment or delivery, depending on the terms of the underlying contract, or when services have been rendered. Sales are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The amount of consideration we receive and sales we recognize can vary due to changes in sales incentives, rebates, rights of return or other items we offer our customers, for which we estimate the expected amounts based on an analysis of historical experience, or as the most likely amount in a range of possible outcomes. Payment terms with customers vary by region and customer, but are generally 30-90 days or at the point of sale for our consumer retail locations. Net sales exclude sales, value added and other taxes. Costs to obtain contracts are generally expensed as incurred due to the short term nature of individual contracts. Incidental items that are immaterial in the context of the contract are recognized as expense as incurred. We have elected to recognize the costs incurred for transportation of products to customers as a component of CGS.

When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities and Other Long Term Liabilities in the Consolidated Balance Sheet totaled $57 million and $45 million, respectively, at June 30, 2018. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met.

The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six months ended June 30, 2018:

(In millions)
Balance at December 31, 2017	$	121
Revenue deferred during period	55
Revenue recognized during period	(74		)
Impact of foreign currency translation	—
Balance at June 30, 2018	$	102

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Costs Associated with Rationalization Programs

6 Months Ended

Jun. 30, 2018

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 high-cost and excess manufacturing capacity and associate headcount.

The following table shows the roll-forward of our liability between periods:

				Other Exit and
	Associate-			Non-cancelable
(In millions)	Related Costs			Lease Costs			Total
Balance at December 31, 2017	$	210		$	3		$	213
2018 Charges	36			11			47
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively	(120		)	(12		)	(132		)
Reversed to the Statements of Operations	(12		)	—			(12		)
Balance at June 30, 2018	$	114		$	2		$	116

The accrual balance of $116 million at June 30, 2018 is expected to be substantially utilized in the next 12 months and includes $44 million related to global plans to reduce SAG headcount as well as a separate SAG headcount reduction plan in Europe, Middle East and Africa ("EMEA"), $40 million related to plans to reduce manufacturing headcount in EMEA, $11 million related to plans to improve operating efficiency in EMEA, and $8 million related to the closure of our tire manufacturing facility in Philippsburg, Germany.

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2018			2017		2018			2017
Current Year Plans
Associate Severance and Other Related Costs	$	1		$	2	$	32		$	25
Other Exit and Non-Cancelable Lease Costs	—			1		—			1
Current Year Plans - Net Charges	$	1		$	3	$	32		$	26
Prior Year Plans
Associate Severance and Other Related Costs	$	(6	)	$	17	$	(8	)	$	17
Other Exit and Non-Cancelable Lease Costs	3			7		11			13
Prior Year Plans - Net Charges	(3		)	24		3			30
Total Net Charges	$	(2	)	$	27	$	35		$	56
Asset Write-off and Accelerated Depreciation Charges	$	1		$	21	$	2		$	29

Substantially all of the new charges for the three and six months ended June 30, 2018 and 2017 related to future cash outflows. Net current year plan charges for the three and six months ended June 30, 2018 include charges of $1 million and $26 million, respectively, related to a global plan to reduce SAG headcount. Net current year plan charges for the six months ended June 30, 2018 also included charges of $6 million related to a plan to improve operating efficiency in EMEA. Net current year plan charges for the three and six months ended June 30, 2017 include charges of $2 million and $19 million, respectively, related to SAG headcount reductions in EMEA and $1 million and $7 million, respectively, related to a plan to improve operating efficiency in EMEA.

Net prior year plan charges for the three and six months ended June 30, 2018 include charges of $2 million and $9 million, respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany. Net prior year plan charges for the three and six months ended June 30, 2018 also included reversals of $7 million and $12 million, respectively, for actions no longer needed for their originally intended purposes. Net prior year plan charges for the three and six months ended June 30, 2017 include $18 million and $20 million, respectively, related to the closure of our tire manufacturing facility in Philippsburg, Germany, and charges of $2 million and $5 million, respectively, related to the closure of 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.

Ongoing rationalization plans had approximately $730 million in charges incurred prior to 2018 and approximately $16 million is expected to be incurred in future periods.

Approximately 300 associates will be released under new plans initiated in 2018, of which approximately 100 were released through June 30, 2018. In the first six months of 2018, approximately 300 associates were released under plans initiated in prior years, including those related to the closure of our tire manufacturing facility in Philippsburg, Germany. Approximately 600 associates remain to be released under all ongoing rationalization plans.

Approximately 850 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. 12, Commitments and Contingent Liabilities, in this Form 10-Q.

Asset write-off and accelerated depreciation charges for the three and six months ended June 30, 2018 and 2017 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany and were recorded in CGS.

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Other (Income) Expense

6 Months Ended

Jun. 30, 2018

Other Income and Expenses [Abstract]

OTHER (INCOME) EXPENSE

OTHER (INCOME) EXPENSE

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Non-service related pension and other postretirement benefits cost	$	25		$	11		$	59		$	19
Financing fees and financial instruments	9			32			18			40
Royalty income	(5		)	(11		)	(10		)	(16		)
Interest income	(2		)	(3		)	(6		)	(7		)
Net foreign currency exchange (gains) losses	2			(2		)	(5		)	(3		)
General and product liability expense (income) - discontinued products	(3		)	1			(2		)	3
Net (gains) losses on asset sales	(2		)	(12		)	—			(13		)
Miscellaneous expense	21			—			28			1
	$	45		$	16		$	82		$	24

Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. Non-service related pension and other postretirement benefits cost for the six months ended June 30, 2018 includes expense of $9 million related to the adoption of the new accounting standards update which no longer allows non-service related pension and other postretirement benefits cost to be capitalized in inventory. For further information, refer to Note to the Consolidated Financial Statements No. 10, Pension, Savings and Other Postretirement Benefit Plans, in this Form 10-Q.

Financing fees and financial instruments consist of commitment fees and charges incurred in connection with financing transactions. Financing fees and financial instruments for the three and six months ended June 30, 2017 include a redemption premium of $25 million related to the redemption of our $700 million7% senior notes due 2022 in May 2017.

Net (gains) losses on asset sales for the three and six months ended June 30, 2017 include a gain of $6 million related to the sale of a former wire plant site in Luxembourg.

Miscellaneous expense for the three and six months ended June 30, 2018 includes transaction costs of $10 million and $14 million, respectively, related to our announced TireHub, LLC ("TireHub") joint venture and continuing repair expenses of $8 million and $11 million, respectively, incurred by the Company as a direct result of hurricanes Harvey and Irma during the third quarter of 2017.

Other (Income) Expense also includes royalty income which is derived primarily from licensing arrangements related to divested businesses as well as other licensing arrangements, interest income, which primarily consists of amounts earned on cash deposits, net foreign currency exchange (gains) and losses, and general and product liability expense (income) - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the second quarter of 2018, we recorded tax expense of $19 million on income before income taxes of $183 million. For the first six months of 2018, we recorded tax expense of $52 million on income before income taxes of $296 million. Income tax expense for the three and six months ended June 30, 2018 includes discrete benefits of $28 million and $21 million, respectively. The net discrete tax benefit includes a second quarter benefit of $25 million from recording foreign tax credits on dividends, primarily from subsidiaries in Japan and Singapore, to the United States, and a first quarter charge of $7 million and a second quarter benefit of $4 million to adjust our provisional tax obligation for the one-time transition tax imposed by the Tax Cuts and Jobs Act (the "Tax Act") that was enacted on December 22, 2017 in the United States.

The one-time transition tax is a tax on certain previously untaxed accumulated earnings and profits of our foreign subsidiaries. We were able to reasonably estimate the one-time transition tax and record an initial provisional tax obligation of $77 million at December 31, 2017. During the first quarter of 2018, the one-time transition tax obligation increased by $7 million as a result of guidance that required the tax to be calculated using year-end exchange rates as opposed to average exchange rates. During the second quarter of 2018, the obligation decreased by $4 million as a result of guidance that clarified that certain accrued income taxes can reduce the amount subject to the one-time transition tax. Accordingly, as of June 30, 2018, we have now recorded a provisional transition tax obligation totaling $80 million. At December 31, 2017, we established a provisional reserve of $19 million related to foreign withholding taxes that we would incur should we repatriate certain earnings. During the three months ending June 30, 2018, our reserve decreased to $8 million to reflect payments of withholding tax on dividends from foreign subsidiaries. We continue to consider new guidance related to these provisional amounts and are in the process of gathering and analyzing additional information with respect to our 2017 earnings and profits to more precisely compute the amount of the one-time transition tax.

In the second quarter of 2017, we recorded tax expense of $36 million on income before income taxes of $190 million. For the first six months of 2017, we recorded tax expense of $106 million on income before income taxes of $429 million. Income tax expense for the three and six months ended June 30, 2017 was favorably impacted by $9 million and $11 million, respectively, of various discrete tax adjustments.

We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate for the three and six months ended June 30, 2018 and the U.S. statutory rate of 21% primarily relates to the discrete items noted above and a benefit from our foreign derived intangible income deduction provided for in the Tax Act, partially offset by an overall higher effective tax rate in the foreign jurisdictions in which we operate. The difference between our effective tax rate for the three and six months ended June 30, 2017 and the then applicable U.S. statutory rate of 35% was primarily attributable to the discrete items noted above and an overall lower effective tax rate in the foreign jurisdictions in which we operate.

The Tax Act subjects a U.S. parent to the base erosion minimum tax ("BEAT") and a current tax on its global intangible low-taxed income ("GILTI"). We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We estimate that the impact from the BEAT and GILTI taxes will not be material to our income tax provision.

Our losses in various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of our net deferred tax assets. Each reporting period we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. If recent positive evidence provided by the profitability in our Brazilian subsidiary continues, it will provide us the opportunity to apply greater significance to our forecasts in assessing the need for a valuation allowance. We believe it is reasonably possible that sufficient positive evidence required to release all, or a portion, of its valuation allowance will exist within the next twelve months. This may result in a reduction of the valuation allowance and a one-time tax benefit of up to $20 million.

Based on positive evidence and future sources of income in the U.S., it is more likely than not that our foreign tax credits of approximately $750 million as of December 31, 2017, will be fully utilized.

We are open to examination in the United States for 2017 and in Germany from 2013 onward. Generally, for our remaining tax jurisdictions, years from 2012 onward are still open to examination.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share are computed based on the weighted average number of common shares outstanding. Diluted earnings per share are calculated to reflect the potential dilution that could occur if securities or other contracts were exercised or converted into common stock.

Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2018		2017		2018		2017
Earnings per share — basic:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Earnings per common share — basic	$	0.66	$	0.58	$	0.97	$	1.24
Earnings per share — diluted:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Dilutive effect of stock options and other dilutive securities	2		4		2		4
Weighted average shares outstanding — diluted	241		256		242		256
Earnings per common share — diluted	$	0.65	$	0.58	$	0.96	$	1.23

Weighted average shares outstanding - diluted for the three and six months ended June 30, 2018 exclude approximately 2 million and 1 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). There were approximately 1 million equivalent shares related to options with exercise prices greater than the average market price of our common shares for the three and six months ended June 30, 2017.

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Business Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Sales:
Americas	$	2,018		$	2,029		$	3,947		$	3,987
Europe, Middle East and Africa	1,260			1,114			2,590			2,353
Asia Pacific	563			543			1,134			1,045
Net Sales	$	3,841		$	3,686		$	7,671		$	7,385
Segment Operating Income:
Americas	$	154		$	218		$	281		$	434
Europe, Middle East and Africa	100			80			178			181
Asia Pacific	70			71			146			144
Total Segment Operating Income	$	324		$	369		$	605		$	759
Less:
Rationalizations	$	(2	)	$	27		$	35		$	56
Interest expense	78			89			154			176
Other (income) expense (Note 4)	45			16			82			24
Asset write-offs and accelerated depreciation	1			21			2			29
Corporate incentive compensation plans	3			12			7			27
Intercompany profit elimination	(1		)	(2		)	(4		)	(5		)
Retained expenses of divested operations	2			3			5			6
Other	15			13			28			17
Income before Income Taxes	$	183		$	190		$	296		$	429

Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Rationalizations:
Americas	$	—		$	1		$	3		$	2
Europe, Middle East and Africa	(1		)	26			26			53
Asia Pacific	—			—			3			1
Total Segment Rationalizations	$	(1	)	$	27		$	32		$	56
Corporate	(1		)	—			3			—
Total Rationalizations	$	(2	)	$	27		$	35		$	56
Net (Gains) Losses on Asset Sales:
Americas	$	(2	)	$	(2	)	$	(2	)	$	(3	)
Europe, Middle East and Africa	—			(10		)	2			(10		)
Total Net (Gains) Losses on Asset Sales	$	(2	)	$	(12	)	$	—		$	(13	)

Asset Write-offs and Accelerated Depreciation:
Europe, Middle East and Africa	$	1	$	21	$	2	$	29
Total Asset Write-offs and Accelerated Depreciation	$	1	$	21	$	2	$	29

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Financing Arrangements and Derivative Financial Instruments

6 Months Ended

Jun. 30, 2018

Financing Arrangements and Derivative Financial Instruments [Abstract]

FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS

FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS

At June 30, 2018, we had total credit arrangements of $8,632 million, of which $2,248 million were unused. At that date, 40% of our debt was at variable interest rates averaging 4.08%.

Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year and Short Term Financing Arrangements

At June 30, 2018, we had short term committed and uncommitted credit arrangements totaling $588 million, of which $253 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates.

The following table presents amounts due within one year:

	June 30,			December 31,
(In millions)	2018			2017
Notes payable and overdrafts	$	335		$	262
Weighted average interest rate	4.17		%	5.00		%
Chinese credit facilities	$	57		$	113
Other foreign and domestic debt (including capital leases)	229			278
Long term debt and capital leases due within one year	$	286		$	391
Weighted average interest rate	4.89		%	6.86		%
Total obligations due within one year	$	621		$	653

Long Term Debt and Capital Leases and Financing Arrangements

At June 30, 2018, we had long term credit arrangements totaling $8,044 million, of which $1,995 million were unused.

The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates:

	June 30, 2018					December 31, 2017
				Interest					Interest
(In millions)	Amount			Rate		Amount			Rate
Notes:
8.75% due 2020	$	277				$	275
5.125% due 2023	1,000					1,000
3.75% Euro Notes due 2023	291					300
5% due 2026	900					900
4.875% due 2027	700					700
7% due 2028	150					150
Credit Facilities:
$2.0 billion first lien revolving credit facility due 2021	340			3.26	%	—			—
Second lien term loan facility due 2025	400			4.05	%	400			3.50	%
€550 million revolving credit facility due 2020	310			3.79	%	—			—
Pan-European accounts receivable facility	177			0.94	%	224			0.90	%
Mexican credit facilities	340			3.83	%	340			3.14	%
Chinese credit facilities	173			4.99	%	212			4.87	%
Other foreign and domestic debt(1)	954			5.43	%	967			6.02	%
	6,012					5,468
Unamortized deferred financing fees	(39		)			(41		)
	5,973					5,427
Capital lease obligations	39					40
	6,012					5,467
Less portion due within one year	(286		)			(391		)
	$	5,726				$	5,076

(1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and Americas Headquarters.

NOTES

At June 30, 2018, we had $3,318 million of outstanding notes, compared to $3,325 million at December 31, 2017.

CREDIT FACILITIES

$2.0 billion Amended and Restated First Lien Revolving Credit Facility due 2021

Our amended and restated first lien revolving credit facility is available in the form of loans or letters of credit, with letter of credit availability limited to $800 million. Subject to the consent of the lenders whose commitments are to be increased, we may request that the facility be increased by up to $250 million. Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in a variety of collateral. Based on our current liquidity, amounts drawn under this facility bear interest at LIBOR plus 125 basis points, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

Availability under the facility is subject to a borrowing base, which is based primarily on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the value of our principal trademarks, and (iii) certain cash in an amount not to exceed $200 million. To the extent that our eligible accounts receivable and inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $2.0 billion. As of June 30, 2018, our borrowing base, and therefore our availability, under this facility was $361 million below the facility's stated amount of $2.0 billion.

The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2015. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries.

At June 30, 2018, we had $340 million of borrowings and $37 million of letters of credit issued under the revolving credit facility. At December 31, 2017, we had no borrowings and $37 million of letters of credit issued under the revolving credit facility.

$400 million Amended and Restated Second Lien Term Loan Facility due 2025

In March 2018, we amended and restated our second lien term loan facility. As a result of the amendment, the term loan, which previously matured on April 30, 2019, now matures on March 7, 2025. The term loan bears interest, at our option, at (i) 200 basis points over LIBOR or (ii) 100 basis points over an alternative base rate (the higher of (a) the prime rate, (b) the federal funds effective rate or the overnight bank funding rate plus 50 basis points or (c) LIBOR plus 100 basis points). After March 7, 2018 and prior to September 3, 2018, (i) loans under the facility may not be prepaid or repaid with the proceeds of term loan indebtedness, or converted into or replaced by new term loans, bearing interest at an effective interest rate that is less than the effective interest rate then applicable to such loans and (ii) no amendment of the facility may be made that, directly or indirectly, reduces the effective interest rate applicable to the loans under the facility, in each case unless we pay a fee equal to 1.0% of the principal amount of the loans so affected. In addition, if the Total Leverage Ratio is equal to or less than 1.25 to 1.00, we have the option to further reduce the spreads described above by 25 basis points. "Total Leverage Ratio" has the meaning given it in the facility.

Our obligations under our second lien term loan facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries and are secured by second priority security interests in the same collateral securing the $2.0 billion first lien revolving credit facility.

At June 30, 2018 and December 31, 2017, the amounts outstanding under this facility were $400 million.

€550 million Amended and Restated Senior Secured European Revolving Credit Facility due 2020

Our amended and restated €550 million European revolving credit facility consists of (i) a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH (“GDTG”) and (ii) a €425 million all-borrower tranche that is available to Goodyear Dunlop Tires Europe B.V. ("GDTE"), GDTG and Goodyear Dunlop Tires Operations S.A. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche. Amounts drawn under this facility will bear interest at LIBOR plus 175 basis points for loans denominated in U.S. dollars or pounds sterling and EURIBOR plus 175 basis points for loans denominated in euros, and undrawn amounts under the facility will be subject to an annual commitment fee of 30 basis points.

GDTE and certain of its subsidiaries in the United Kingdom, Luxembourg, France and Germany provide guarantees to support the facility. The German guarantors secure the German tranche on a first-lien basis and the all-borrower tranche on a second-lien basis. GDTE and its other subsidiaries that provide guarantees secure the all-borrower tranche on a first-lien basis and generally do not provide collateral support for the German tranche. The Company and its U.S. and Canadian subsidiaries that guarantee our U.S. senior secured credit facilities described above also provide unsecured guarantees in support of the facility.

The facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in our business or financial condition since December 31, 2014. The facility also has customary defaults, including a cross-default to material indebtedness of Goodyear and our subsidiaries.

At June 30, 2018, there were $140 million (€120 million) of borrowings outstanding under the German tranche, $170 million (€146 million) of borrowings outstanding under the all-borrower tranche and no letters of credit outstanding under the European revolving credit facility. At December 31, 2017, there were no borrowings and no letters of credit outstanding under the European revolving credit facility.

Accounts Receivable Securitization Facilities (On-Balance Sheet)

GDTE and certain other of our European subsidiaries are parties to a pan-European accounts receivable securitization facility that expires in 2019. The terms of the facility provide the flexibility to designate annually the maximum amount of funding available under the facility in an amount of not less than €30 million and not more than €450 million. For the period from October 16, 2017 to October 15, 2018, the designated maximum amount of the facility was reduced to €275 million.

The facility involves an ongoing daily sale of substantially all of the trade accounts receivable of certain GDTE subsidiaries to a bankruptcy-remote French company controlled by one of the liquidity banks in the facility. These subsidiaries retain servicing responsibilities. Utilization under this facility is based on eligible receivable balances.

The funding commitments under the facility will expire upon the earliest to occur of: (a) September 25, 2019, (b) the non-renewal and expiration (without substitution) of all of the back-up liquidity commitments, (c) the early termination of the facility according to its terms (generally upon an Early Amortisation Event (as defined in the facility), which includes, among other things, events similar to the events of default under our senior secured credit facilities; certain tax law changes; or certain changes to law, regulation or accounting standards), or (d) our request for early termination of the facility. The facility’s current back-up liquidity commitments will expire on October 15, 2018.

At June 30, 2018, the amounts available and utilized under this program totaled $177 million (€152 million). At December 31, 2017, the amounts available and utilized under this program totaled $224 million (€187 million). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Capital Leases.

For a description of the collateral securing the credit facilities described above as well as the covenants applicable to them, refer to Note to the Consolidated Financial Statements No. 15, Financing Arrangements and Derivative Financial Instruments, in our 2017 Form 10-K.

Accounts Receivable Factoring Facilities (Off-Balance Sheet)

We have sold certain of our trade receivables under off-balance sheet programs. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At June 30, 2018, the gross amount of receivables sold was $513 million, compared to $572 million at December 31, 2017.

Other Foreign Credit Facilities

A Mexican subsidiary and a U.S. subsidiary have several financing arrangements in Mexico. At June 30, 2018 and December 31, 2017, the amounts available and utilized under these facilities were $340 million. The facilities ultimately mature in 2020. The facilities contain covenants relating to the Mexican and U.S. subsidiary and have customary representations and warranties and defaults relating to the Mexican and U.S. subsidiary’s ability to perform its respective obligations under the applicable facilities.

A Chinese subsidiary has several financing arrangements in China. At June 30, 2018, these non-revolving credit facilities had total unused availability of $123 million and can only be used to finance the expansion of our manufacturing facility in China. At June 30, 2018 and December 31, 2017, the amounts outstanding under these facilities were $173 million and $212 million, respectively. The facilities ultimately mature in 2025 and principal amortization began in 2015. The facilities contain covenants relating to the Chinese subsidiary and have customary representations and warranties and defaults relating to the Chinese subsidiary’s ability to perform its obligations under the facilities. At June 30, 2018 and December 31, 2017, restricted cash related to funds obtained under these credit facilities was $9 million and $7 million, respectively.

DERIVATIVE FINANCIAL INSTRUMENTS

We utilize derivative financial instrument contracts and nonderivative instruments to manage interest rate, foreign exchange and commodity price risks. We have established a control environment that includes policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. We do not hold or issue derivative financial instruments for trading purposes.

Foreign Currency Contracts

We enter into foreign currency contracts in order to manage the impact of changes in foreign exchange rates on our consolidated results of operations and future foreign currency-denominated cash flows. These contracts may be used to reduce exposure to currency movements affecting existing foreign currency-denominated assets, liabilities, firm commitments and forecasted transactions resulting primarily from trade purchases and sales, equipment acquisitions, intercompany loans and royalty agreements. Contracts hedging short term trade receivables and payables normally have no hedging designation.

The following table presents the fair values for foreign currency contracts not designated as hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	26		$	3
Other current liabilities	(5		)	(9		)

At June 30, 2018 and December 31, 2017, these outstanding foreign currency derivatives had notional amounts of $1,928 million and $1,409 million, respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $43 million and $45 million for the three and six months ended June 30, 2018, respectively, and net transaction losses on derivatives of $41 million and $45 million for the three and six months ended June 30, 2017, respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures.

The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	5		$	1
Other current liabilities	(2		)	(8		)
Fair Values — Long term asset (liability):
Other assets	$	2		$	—
Other long term liabilities	—			(2		)

At June 30, 2018 and December 31, 2017, these outstanding foreign currency derivatives had notional amounts of $263 million and $250 million, respectively, and primarily related to U.S. dollar denominated intercompany transactions.

We enter into master netting agreements with counterparties. The amounts eligible for offset under the master netting agreements are not material and we have elected a gross presentation of foreign currency contracts in the Consolidated Balance Sheets.

The following table presents information related to foreign currency contracts designated as cash flow hedging instruments (before tax and minority):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions) (Income) Expense	2018			2017			2018			2017
Amounts deferred to Accumulated Other Comprehensive Loss ("AOCL")	$	(14	)	$	13		$	(8	)	$	21
Amount of deferred (gain) loss reclassified from AOCL into CGS	3			(2		)	7			(4		)
Amounts excluded from effectiveness testing	(1		)	—			(1		)	(1		)

There is no estimated net amount of deferred gains at June 30, 2018 that are expected to be reclassified to earnings within the next twelve months.

The counterparties to our foreign currency contracts were considered by us to be substantial and creditworthy financial institutions that are recognized market makers at the time we entered into those contracts. We seek to control our credit exposure to these counterparties by diversifying across multiple counterparties, by setting counterparty credit limits based on long term credit ratings and other indicators of counterparty credit risk such as credit default swap spreads, and by monitoring the financial strength of these counterparties on a regular basis. We also enter into master netting agreements with counterparties when possible. By controlling and monitoring exposure to counterparties in this manner, we believe that we effectively manage the risk of loss due to nonperformance by a counterparty. However, the inability of a counterparty to fulfill its contractual obligations to us could have a material adverse effect on our liquidity, financial position or results of operations in the period in which it occurs.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June 30, 2018 and December 31, 2017:

	Total Carrying Value in the Consolidated Balance Sheet				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In millions)	2018		2017		2018		2017		2018		2017		2018		2017
Assets:
Investments	$	10	$	11	$	10	$	11	$	—	$	—	$	—	$	—
Foreign Exchange Contracts	33		4		—		—		33		4		—		—
Total Assets at Fair Value	$	43	$	15	$	10	$	11	$	33	$	4	$	—	$	—
Liabilities:
Foreign Exchange Contracts	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—
Total Liabilities at Fair Value	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—

The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In millions)	2018		2017
Fixed Rate Debt(1):
Carrying amount — liability	$	3,604	$	3,616
Fair value — liability	3,541		3,786
Variable Rate Debt(1):
Carrying amount — liability	$	2,369	$	1,811
Fair value — liability	2,353		1,811

(1) Excludes Notes Payable and Overdrafts of $335 million and $262 million at June 30, 2018 and December 31, 2017, respectively, of which $184 million and $110 million, respectively, are at fixed rates and $151 million and $152 million, respectively, are at variable rates.  The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.

Long term debt with fair values of $3,618 million and $3,857 million at June 30, 2018 and December 31, 2017, respectively, were estimated using quoted Level 1 market prices.  The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions.

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Pension, Savings and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS

We provide employees with defined benefit pension or defined contribution savings plans.

Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	1		$	1		$	2		$	2
Interest cost	39			41			79			81
Expected return on plan assets	(54		)	(61		)	(109		)	(121		)
Amortization of net losses	28			28			56			56
Net periodic pension cost	$	14		$	9		$	28		$	18
Net curtailments/settlements/termination benefits	3			1			3			1
Total defined benefit pension cost	$	17		$	10		$	31		$	19

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	7		$	8		$	14		$	15
Interest cost	17			18			35			35
Expected return on plan assets	(18		)	(20		)	(36		)	(39		)
Amortization of net losses	8			8			15			16
Net periodic pension cost	$	14		$	14		$	28		$	27

Service cost is recorded in CGS or SAG. Other components of net periodic pension cost are recorded in Other (Income) Expense. Net curtailments and settlements are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.

We expect to contribute approximately $25 million to $50 million to our funded non-U.S. pension plans in 2018. For the three and six months ended June 30, 2018, we contributed $8 million and $19 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June 30, 2018 and 2017 was $28 million in both periods, and for the six months ended June 30, 2018 and 2017 was $57 million and $58 million, respectively.

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Other postretirement benefits expense (credit) for the three months ended June 30, 2018 and 2017 was $3 million and $(1) million, respectively, and for the six months ended June 30, 2018 and 2017 was $6 million and $(3) million, respectively.

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Stock Compensation Plans

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS

Our Board of Directors granted 0.8 million restricted stock units and0.2 million performance share units during the six months ended June 30, 2018 under our stock compensation plans.

We measure the fair value of grants of restricted stock units and performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. The weighted average fair value per share was $29.46 for restricted stock units and $29.04 for performance share units granted during the six months ended June 30, 2018.

We recognized stock-based compensation expense of $3 million and $5 million during the three and six months ended June 30, 2018, respectively. At June 30, 2018, unearned compensation cost related to the unvested portion of all stock-based awards was approximately $39 million and is expected to be recognized over the remaining vesting period of the respective grants, through the second quarter of 2022. We recognized stock-based compensation expense of $6 million and $12 million during the three and six months ended June 30, 2017, respectively.

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Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Environmental Matters

We have recorded liabilities totaling $46 million at both June 30, 2018 and December 31, 2017, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $11 million and $10 million were included in Other Current Liabilities at June 30, 2018 and December 31, 2017, respectively. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims.

Since many of the remediation activities related to environmental matters vary substantially in duration and cost from site to site and the associated costs for each vary depending on the mix of unique site characteristics, in some cases we cannot reasonably estimate a range of possible losses. Although it is not possible to estimate with certainty the outcome of all of our environmental matters, management believes that potential losses in excess of current reserves for environmental matters, individually and in the aggregate, will not have a material adverse effect on our financial position, cash flows or results of operations.

Workers’ Compensation

We have recorded liabilities, on a discounted basis, totaling $237 million and $243 million for anticipated costs related to workers’ compensation at June 30, 2018 and December 31, 2017, respectively. Of these amounts, $46 million and $45 million were included in Current Liabilities as part of Compensation and Benefits at June 30, 2018 and December 31, 2017, respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience, and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At June 30, 2018 and December 31, 2017, the liability was discounted using a risk-free rate of return. At June 30, 2018, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $30 million.

General and Product Liability and Other Litigation

We have recorded liabilities totaling $317 million and $316 million, including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at June 30, 2018 and December 31, 2017, respectively. Of these amounts, $52 million and $55 million was included in Other Current Liabilities at June 30, 2018 and December 31, 2017, respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at June 30, 2018, we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates.

We have recorded an indemnification asset within Accounts Receivable of $4 million and within Other Assets of $31 million for Sumitomo Rubber Industries, Ltd.'s ("SRI") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions.

Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 140,400 claims by defending, obtaining the dismissal thereof, or entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled approximately $537 million through June 30, 2018 and $529 million through December 31, 2017.

A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly.

	Six Months Ended			Year Ended
(Dollars in millions)	June 30, 2018			December 31, 2017
Pending claims, beginning of period	54,300			64,400
New claims filed	900			1,900
Claims settled/dismissed	(5,700		)	(12,000		)
Pending claims, end of period	49,500			54,300
Payments (1)	$	7		$	16

(1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution.

We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $168 million and $167 million at June 30, 2018 and December 31, 2017, respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten-year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant.

We maintain certain primary and excess insurance coverage under coverage-in-place agreements, and also have additional excess liability insurance with respect to asbestos liabilities. After consultation with our outside legal counsel and giving consideration to agreements with certain of our insurance carriers, the financial viability and legal obligations of our insurance carriers and other relevant factors, we determine an amount we expect is probable of recovery from such carriers. We record a receivable with respect to such policies when we determine that recovery is probable and we can reasonably estimate the amount of a particular recovery.

We recorded a receivable related to asbestos claims of $116 million and $113 million at June 30, 2018 and December 31, 2017, respectively. We expect that approximately 70% of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $15 million was included in Current Assets as part of Accounts Receivable at June 30, 2018 and December 31, 2017, respectively. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers.

We believe that, at December 31, 2017, we had approximately $440 million in excess level policy limits applicable to indemnity and defense costs for asbestos products claims under coverage-in-place agreements.  We also had additional unsettled excess level policy limits potentially applicable to such costs.  We had coverage under certain primary policies for indemnity and defense costs for asbestos products claims under remaining aggregate limits pursuant to a coverage-in-place agreement, as well as coverage for indemnity and defense costs for asbestos premises claims pursuant to coverage-in-place agreements.

With respect to both asserted and unasserted claims, it is reasonably possible that we may incur a material amount of cost in excess of the current reserve; however, such amounts cannot be reasonably estimated. Coverage under insurance policies is subject to varying characteristics of asbestos claims including, but not limited to, the type of claim (premise vs. product exposure), alleged date of first exposure to our products or premises and disease alleged. Recoveries may be limited by insurer insolvencies or financial difficulties. Depending upon the nature of these characteristics or events, as well as the resolution of certain legal issues, some portion of the insurance may not be accessible by us.

Amiens Labor Claims

Approximately 850 former employees of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims totaling €119 million ($139 million) against Goodyear Dunlop Tires France. We intend to vigorously defend ourselves against these claims, and any additional claims that may be asserted against us, and cannot estimate the amounts, if any, that we may ultimately pay in respect of such claims.

Other Actions

We are currently a party to various claims, indirect tax assessments and legal proceedings in addition to those noted above. If management believes that a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations.

Our recorded liabilities and estimates of reasonably possible losses for the contingent liabilities described above are based on our assessment of potential liability using the information available to us at the time and, where applicable, any past experience and recent and current trends with respect to similar matters. Our contingent liabilities are subject to inherent uncertainties, and unfavorable judicial or administrative decisions could occur which we did not anticipate. Such an unfavorable decision could include monetary damages, fines or other penalties or an injunction prohibiting us from taking certain actions or selling certain products. If such an unfavorable decision were to occur, it could result in a material adverse impact on our financial position and results of operations in the period in which the decision occurs, or in future periods.

Income Tax Matters

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We also recognize income tax benefits to the extent that it is more likely than not that our positions will be sustained when challenged by the taxing authorities. We derecognize income tax benefits when based on new information we determine that it is no longer more likely than not that our position will be sustained. To the extent we prevail in matters for which liabilities have been established, or determine we need to derecognize tax benefits recorded in prior periods, our results of operations and effective tax rate in a given period could be materially affected. An unfavorable tax settlement would require use of our cash, and lead to recognition of expense to the extent the settlement amount exceeds recorded liabilities and, in the case of an income tax settlement, result in an increase in our effective tax rate in the period of resolution. A favorable tax settlement would be recognized as a reduction of expense to the extent the settlement amount is lower than recorded liabilities and, in the case of an income tax settlement, would result in a reduction in our effective tax rate in the period of resolution.

While the Company applies consistent transfer pricing policies and practices globally, supports transfer prices through economic studies, seeks advance pricing agreements and joint audits to the extent possible and believes its transfer prices to be appropriate, such transfer prices, and related interpretations of tax laws, are occasionally challenged by various taxing authorities globally. We have received various tax assessments challenging our interpretations of applicable tax laws in various jurisdictions. Although we believe we have complied with applicable tax laws, have strong positions and defenses and have historically been successful in defending such claims, our results of operations could be materially adversely affected in the case we are unsuccessful in the defense of existing or future claims.

Guarantees

We have off-balance sheet financial guarantees and other commitments totaling approximately $78 million and $82 million at June 30, 2018 and December 31, 2017, respectively. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not require collateral in connection with the issuance of these guarantees. In 2017, we issued a guarantee of approximately $47 million in connection with an indirect tax assessment in EMEA. As of June 30, 2018, this guarantee amount has been reduced to $44 million. We have concluded our performance under this guarantee is not probable and, therefore, have not recorded a liability for this guarantee. In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of approximately $46 million to an insurance company related to SRI's obligation to pay certain outstanding workers' compensation claims of a formerly consolidated joint venture entity. As of June 30, 2018, this guarantee amount has been reduced to $33 million. We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims. If our performance under these guarantees is triggered by non-payment or another specified event, we would be obligated to make payment to the financial institution or the other entity, and would typically have recourse to the affiliate, lessor, customer, or SRI. Except for the workers' compensation guarantee described above, the guarantees expire at various times through 2020. We are unable to estimate the extent to which our affiliates’, lessors’, customers’, or SRI's assets would be adequate to recover any payments made by us under the related guarantees.

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Capital Stock

6 Months Ended

Jun. 30, 2018

Captial Stock [Abstract]

CAPITAL STOCK

CAPITAL STOCK

Dividends

In the first six months of 2018, we paid cash dividends of $67 million on our common stock. On July 14, 2018, the Board of Directors (or a duly authorized committee thereof) declared cash dividends of $0.14 per share of common stock, or approximately $33 million in the aggregate. The dividend will be paid on September 4, 2018 to stockholders of record as of the close of business on August 1, 2018. Future quarterly dividends are subject to Board approval.

Common Stock Repurchases

On September 18, 2013, the Board of Directors approved our common stock repurchase program. From time to time, the Board of Directors has approved increases in the amount authorized to be purchased under that program. On February 2, 2017, the Board of Directors approved a further increase in that authorization to an aggregate of $2.1 billion. This program expires on December 31, 2019. We intend to repurchase shares of common stock in open market transactions in order to offset new shares issued under equity compensation programs and to provide for additional shareholder returns. During the second quarter of 2018, we repurchased 2,976,414 shares at an average price, including commissions, of $25.20 per share, or $75 million in the aggregate. During the first six months of 2018, we repurchased 3,851,092 shares at an average price, including commissions, of $25.97 per share, or $100 million in the aggregate. Since 2013, we repurchased 47,820,749 shares at an average price, including commissions, of $29.56 per share, or $1,413 million in the aggregate.

In addition, we may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of the stock options or the vesting or payment of stock awards. During the first six months of 2018, we did not repurchase any shares from employees.

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Changes in Shareholders' Equity

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

CHANGES IN SHAREHOLDERS' EQUITY

CHANGES IN SHAREHOLDERS’ EQUITY

The following tables present the changes in shareholders’ equity for the six months ended June 30, 2018 and 2017:

	June 30, 2018									June 30, 2017
(In millions)	Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity			Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity
Balance at beginning of period	$	4,603		$	247		$	4,850		$	4,507		$	218		$	4,725
Comprehensive income (loss):
Net income	232			12			244			313			10			323
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)	(133		)	(16		)	(149		)	121			13			134
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)	53			—			53			39			—			39
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)	19			—			19			3			—			3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)	4			—			4			—			—			—
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)	6			—			6			(14		)	—			(14		)
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)	5			—			5			(3		)	—			(3		)
Other comprehensive income (loss)	(46		)	(16		)	(62		)	146			13			159
Total comprehensive income (loss)	186			(4		)	182			459			23			482
Adoption of new accounting standards updates (Note 1)	(1		)	—			(1		)	—			—			—
Dividends declared to minority shareholders	—			(7		)	(7		)	—			(5		)	(5		)
Stock-based compensation plans (Note 11)	8			—			8			12			—			12
Repurchase of common stock (Note 13)	(100		)	—			(100		)	(30		)	—			(30		)
Dividends declared (Note 13)	(67		)	—			(67		)	(50		)	—			(50		)
Common stock issued from treasury	3			—			3			11			—			11
Purchase of minority shares	5			(29		)	(24		)	—			—			—
Balance at end of period	$	4,637		$	207		$	4,844		$	4,909		$	236		$	5,145

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Reclassifications out of Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2018

Reclassifications out of Accumulated Other Comprehensive Loss [Abstract]

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS

RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table presents changes in Accumulated Other Comprehensive Loss (AOCL), by component, for the six months ended June 30, 2018 and 2017:

(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2017	$	(915	)	$	(3,052	)	$	(9	)	$	(3,976	)
Other comprehensive income (loss) before reclassifications, net of tax	(133		)	19			6			(108		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			57			5			62
Balance at June 30, 2018	$	(1,048	)	$	(2,976	)	$	2		$	(4,022	)
(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2016	$	(1,155	)	$	(3,053	)	$	10		$	(4,198	)
Other comprehensive income (loss) before reclassifications, net of tax	121			3			(14		)	110
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			39			(3		)	36
Balance at June 30, 2017	$	(1,034	)	$	(3,011	)	$	(7	)	$	(4,052	)

The following table presents reclassifications out of Accumulated Other Comprehensive Loss:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
(In millions) (Income) Expense	Amount Reclassified						Amount Reclassified						Affected Line Item in the Consolidated Statements of Operations
Component of AOCL	from AOCL						from AOCL
Amortization of prior service cost and unrecognized gains and losses	$	34		$	30		$	69		$	60		Other (Income) Expense
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures	6			—			6			—			Other (Income) Expense
Unrecognized Net Actuarial Losses and Prior Service Costs, before tax	40			30			75			60
Tax effect	(10		)	(11		)	(18		)	(21		)	United States and Foreign Taxes
Net of tax	$	30		$	19		$	57		$	39		Goodyear Net Income
Deferred Derivative (Gains) Losses, before tax	$	3		$	(2	)	$	7		$	(4	)	Cost of Goods Sold
Tax effect	(1		)	—			(2		)	1			United States and Foreign Taxes
Net of tax	$	2		$	(2	)	$	5		$	(3	)	Goodyear Net Income
Total reclassifications	$	32		$	17		$	62		$	36		Goodyear Net Income

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Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

On April 16, 2018, we announced an agreement to form a 50/50 joint venture with Bridgestone Americas, Inc. (“Bridgestone”) that will combine our Company-Owned Wholesale Distribution (“COWD”) business and Bridgestone’s tire wholesale warehouse business to create TireHub, a national tire distributor in the United States.

On July 1, 2018, TireHub commenced operations. Upon commencement, we transferred certain assets and liabilities of the COWD business to TireHub and expect to recognize a non-cash gain of approximately $285 million on the transaction in Other (Income) Expense in the third quarter of 2018. We also expect to record the fair value of the Company’s equity investment in TireHub of approximately $292 million in Other Assets in the third quarter of 2018. No cash was exchanged between the parties as part of the transaction.

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Consolidating Financial Information

6 Months Ended

Jun. 30, 2018

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 $1.0 billion outstanding principal amount of 5.125% senior notes due 2023, the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (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 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 capital stock, loans and other capital transactions between members of the consolidated group.

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
	June 30, 2018
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	135	$	49		$	791	$	—		$	975
Accounts Receivable, net	658		146			1,584		—			2,388
Accounts Receivable From Affiliates	—		198			—		(198		)	—
Inventories	1,522		63			1,375		(19		)	2,941
Prepaid Expenses and Other Current Assets	79		2			181		3			265
Total Current Assets	2,394		458			3,931		(214		)	6,569
Goodwill	24		1			426		125			576
Intangible Assets	118		—			20		—			138
Deferred Income Taxes	1,598		31			402		4			2,035
Other Assets	249		49			506		—			804
Investments in Subsidiaries	4,294		517			—		(4,811		)	—
Property, Plant and Equipment, net	2,470		427			4,363		(27		)	7,233
Total Assets	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	928	$	119		$	1,833	$	—		$	2,880
Accounts Payable to Affiliates	65		—			133		(198		)	—
Compensation and Benefits	281		14			216		—			511
Other Current Liabilities	345		(9		)	485		—			821
Notes Payable and Overdrafts	—		—			335		—			335
Long Term Debt and Capital Leases Due Within One Year	59		—			227		—			286
Total Current Liabilities	1,678		124			3,229		(198		)	4,833
Long Term Debt and Capital Leases	3,886		167			1,673		—			5,726
Compensation and Benefits	589		97			683		—			1,369
Deferred Income Taxes	—		—			99		—			99
Other Long Term Liabilities	357		9			118		—			484
Total Liabilities	6,510		397			5,802		(198		)	12,511
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	237		—			—		—			237
Other Equity	4,400		1,086			3,639		(4,725		)	4,400
Goodyear Shareholders’ Equity	4,637		1,086			3,639		(4,725		)	4,637
Minority Shareholders’ Equity — Nonredeemable	—		—			207		—			207
Total Shareholders’ Equity	4,637		1,086			3,846		(4,725		)	4,844
Total Liabilities and Shareholders’ Equity	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355

	Condensed Consolidating Balance Sheet
	December 31, 2017
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	176	$	32	$	835	$	—		$	1,043
Accounts Receivable, net	649		116		1,260		—			2,025
Accounts Receivable From Affiliates	—		254		71		(325		)	—
Inventories	1,444		43		1,329		(29		)	2,787
Prepaid Expenses and Other Current Assets	59		3		157		5			224
Total Current Assets	2,328		448		3,652		(349		)	6,079
Goodwill	24		1		444		126			595
Intangible Assets	119		—		20		—			139
Deferred Income Taxes	1,549		35		424		—			2,008
Other Assets	221		51		518		2			792
Investments in Subsidiaries	4,424		503		—		(4,927		)	—
Property, Plant and Equipment, net	2,491		420		4,569		(29		)	7,451
Total Assets	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	927	$	115	$	1,765	$	—		$	2,807
Accounts Payable to Affiliates	325		—		—		(325		)	—
Compensation and Benefits	322		15		202		—			539
Other Current Liabilities	323		2		701		—			1,026
Notes Payable and Overdrafts	—		—		262		—			262
Long Term Debt and Capital Leases Due Within One Year	60		—		331		—			391
Total Current Liabilities	1,957		132		3,261		(325		)	5,025
Long Term Debt and Capital Leases	3,544		152		1,380		—			5,076
Compensation and Benefits	682		109		724		—			1,515
Deferred Income Taxes	—		1		99		—			100
Other Long Term Liabilities	370		8		120		—			498
Total Liabilities	6,553		402		5,584		(325		)	12,214
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	240		—		—		—			240
Other Equity	4,363		1,056		3,796		(4,852		)	4,363
Goodyear Shareholders’ Equity	4,603		1,056		3,796		(4,852		)	4,603
Minority Shareholders’ Equity — Nonredeemable	—		—		247		—			247
Total Shareholders’ Equity	4,603		1,056		4,043		(4,852		)	4,850
Total Liabilities and Shareholders’ Equity	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064

	Consolidating Statements of Operations
	Three Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,834		$	329		$	2,406		$	(728	)	$	3,841
Cost of Goods Sold	1,464			335			1,899			(749		)	2,949
Selling, Administrative and General Expense	258			8			322			—			588
Rationalizations	(1		)	—			(1		)	—			(2		)
Interest Expense	56			5			22			(5		)	78
Other (Income) Expense	14			3			8			20			45
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	43			(22		)	156			6			183
United States and Foreign Taxes	(37		)	(5		)	62			(1		)	19
Equity in Earnings of Subsidiaries	77			12			—			(89		)	—
Net Income (Loss)	157			(5		)	94			(82		)	164
Less: Minority Shareholders’ Net Income	—			—			7			—			7
Goodyear Net Income (Loss)	$	157		$	(5	)	$	87		$	(82	)	$	157
Comprehensive Income (Loss)	$	2		$	(25	)	$	(123	)	$	137		$	(9	)
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(11		)	—			(11		)
Goodyear Comprehensive Income (Loss)	$	2		$	(25	)	$	(112	)	$	137		$	2

	Consolidating Statements of Operations
	Three Months Ended June 30, 2017
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,863	$	290		$	2,316		$	(783	)	$	3,686
Cost of Goods Sold	1,459		284			1,840			(798		)	2,785
Selling, Administrative and General Expense	247		9			322			1			579
Rationalizations	1		—			26			—			27
Interest Expense	69		2			31			(13		)	89
Other (Income) Expense	4		2			(15		)	25			16
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	83		(7		)	112			2			190
United States and Foreign Taxes	17		(3		)	20			2			36
Equity in Earnings of Subsidiaries	81		16			—			(97		)	—
Net Income (Loss)	147		12			92			(97		)	154
Less: Minority Shareholders’ Net Income	—		—			7			—			7
Goodyear Net Income (Loss)	$	147	$	12		$	85		$	(97	)	$	147
Comprehensive Income (Loss)	$	198	$	13		$	146		$	(145	)	$	212
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—		—			14			—			14
Goodyear Comprehensive Income (Loss)	$	198	$	13		$	132		$	(145	)	$	198

	Consolidating Statements of Operations
	Six Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,518		$	638		$	4,863		$	(1,348	)	$	7,671
Cost of Goods Sold	2,829			608			3,877			(1,389		)	5,925
Selling, Administrative and General Expense	517			18			644			—			1,179
Rationalizations	5			—			30			—			35
Interest Expense	110			10			45			(11		)	154
Other (Income) Expense	24			10			8			40			82
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	33			(8		)	259			12			296
United States and Foreign Taxes	(40		)	(2		)	92			2			52
Equity in Earnings of Subsidiaries	159			34			—			(193		)	—
Net Income (Loss)	232			28			167			(183		)	244
Less: Minority Shareholders’ Net Income	—			—			12			—			12
Goodyear Net Income (Loss)	$	232		$	28		$	155		$	(183	)	$	232
Comprehensive Income (Loss)	$	186		$	30		$	32		$	(66	)	$	182
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(4		)	—			(4		)
Goodyear Comprehensive Income (Loss)	$	186		$	30		$	36		$	(66	)	$	186

	Consolidating Statements of Operations
	Six Months Ended June 30, 2017
(In millions)	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,630		$	589	$	4,618		$	(1,452	)	$	7,385
Cost of Goods Sold	2,837			557		3,634			(1,483		)	5,545
Selling, Administrative and General Expense	506			17		632			—			1,155
Rationalizations	2			—		54			—			56
Interest Expense	134			4		62			(24		)	176
Other (Income) Expense	(13		)	6		(15		)	46			24
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	164			5		251			9			429
United States and Foreign Taxes	60			—		49			(3		)	106
Equity in Earnings of Subsidiaries	209			31		—			(240		)	—
Net Income (Loss)	313			36		202			(228		)	323
Less: Minority Shareholders’ Net Income	—			—		10			—			10
Goodyear Net Income (Loss)	$	313		$	36	$	192		$	(228	)	$	313
Comprehensive Income (Loss)	$	459		$	41	$	340		$	(358	)	$	482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—		23			—			23
Goodyear Comprehensive Income (Loss)	$	459		$	41	$	317		$	(358	)	$	459

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2018
(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	$	457		$	(9	)	$	(336	)	$	(196	)	$	(84	)
Cash Flows from Investing Activities:
Capital Expenditures	(180		)	(41		)	(220		)	(1		)	(442		)
Asset Dispositions	—			2			—			—			2
Short Term Securities Acquired	—			—			(30		)	—			(30		)
Short Term Securities Redeemed	—			—			38			—			38
Capital Contributions and Loans Incurred	(306		)	—			(213		)	519			—
Capital Redemptions and Loans Paid	69			—			430			(499		)	—
Other Transactions	(38		)	—			—			—			(38		)
Total Cash Flows from Investing Activities	(455		)	(39		)	5			19			(470		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	575			—			437			—			1,012
Short Term Debt and Overdrafts Paid	(575		)	—			(345		)	—			(920		)
Long Term Debt Incurred	1,605			15			1,924			—			3,544
Long Term Debt Paid	(1,267		)	—			(1,666		)	—			(2,933		)
Common Stock Issued	3			—			—			—			3
Common Stock Repurchased	(100		)	—			—			—			(100		)
Common Stock Dividends Paid	(67		)	—			—			—			(67		)
Capital Contributions and Loans Incurred	213			52			254			(519		)	—
Capital Redemptions and Loans Paid	(430		)	—			(69		)	499			—
Intercompany Dividends Paid	—			—			(197		)	197			—
Transactions with Minority Interests in Subsidiaries	—			—			(26		)	—			(26		)
Debt Related Costs and Other Transactions	7			—			(1		)	—			6
Total Cash Flows from Financing Activities	(36		)	67			311			177			519
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			(2		)	(23		)	—			(25		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(34		)	17			(43		)	—			(60		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	201			32			877			—			1,110
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	167		$	49		$	834		$	—		$	1,050

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2017
(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	$	(49	)	$	(30	)	$	(90	)	$	(16	)	$	(185	)
Cash Flows from Investing Activities:
Capital Expenditures	(190		)	(86		)	(224		)	3			(497		)
Asset Dispositions	1			—			1			—			2
Short Term Securities Acquired	—			—			(43		)	—			(43		)
Short Term Securities Redeemed	—			—			43			—			43
Capital Contributions and Loans Incurred	(62		)	—			(30		)	92			—
Capital Redemptions and Loans Paid	—			—			61			(61		)	—
Other Transactions	—			—			(3		)	—			(3		)
Total Cash Flows from Investing Activities	(251		)	(86		)	(195		)	34			(498		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	40			—			250			—			290
Short Term Debt and Overdrafts Paid	(40		)	—			(263		)	—			(303		)
Long Term Debt Incurred	2,090			52			1,314			—			3,456
Long Term Debt Paid	(1,759		)	—			(1,146		)	—			(2,905		)
Common Stock Issued	11			—			—			—			11
Common Stock Repurchased	(30		)	—			—			—			(30		)
Common Stock Dividends Paid	(50		)	—			—			—			(50		)
Capital Contributions and Loans Incurred	30			62			—			(92		)	—
Capital Redemptions and Loans Paid	(61		)	—			—			61			—
Intercompany Dividends Paid	—			—			(13		)	13			—
Transactions with Minority Interests in Subsidiaries	—			—			(5		)	—			(5		)
Debt Related Costs and Other Transactions	(26		)	—			(12		)	—			(38		)
Total Cash Flows from Financing Activities	205			114			125			(18		)	426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			2			35			—			37
Net Change in Cash, Cash Equivalents and Restricted Cash	(95		)	—			(125		)	—			(220		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	210			55			924			—			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	115		$	55		$	799		$	—		$	969

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Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared by The Goodyear Tire & Rubber Company (the “Company,” “Goodyear,” “we,” “us” or “our”) in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America ("US GAAP") and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to fairly state the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”).

Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2018.

Recently Issued and Adopted Accounting Standards

Recently Adopted Accounting Standards

Effective January 1, 2018, we adopted an accounting standards update, and all related amendments, with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods or services. We applied the new guidance to all open contracts at the date of adoption using the modified retrospective method. We recognized the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows:

	Balance at		Adjustment for			Balance at
(In millions)	December 31, 2017		New Standard			January 1, 2018
Accounts Receivable	$	2,025	$	3		$	2,028
Prepaid Expenses and Other Current Assets	224		7			231
Deferred Income Taxes — Asset	2,008		1			2,009
Accounts Payable — Trade	2,807		7			2,814
Other Current Liabilities	1,026		7			1,033
Retained Earnings	6,044		(3		)	6,041

The impact of the adoption of the standards update on our Consolidated Statements of Operations for the three and six month periods ended June 30, 2018 was an increase of $8 million and $7 million, respectively, to Net Sales, and an increase of$6 millionand$5 million, respectively, to Net Income.

The impact of the adoption of the standards update on our Consolidated Balance Sheet as of June 30, 2018 was as follows:

	As of June 30, 2018
			Balances
(In millions)	As Reported		Without Adoption		Effect of Change
Accounts Receivable	$	2,388	$	2,380	$	8
Prepaid Expenses and Other Current Assets	265		255		10
Deferred Income Taxes — Asset	2,035		2,036		(1		)
Accounts Payable — Trade	2,880		2,875		5
Other Current Liabilities	821		811		10
Retained Earnings	6,208		6,206		2

We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update intended to improve the financial statement presentation of pension and postretirement benefits cost. The new guidance requires employers that offer defined benefit pension or other postretirement benefit plans to report service cost in the same income statement line as compensation costs and to report non-service related costs separately from service cost outside a sub-total of income from operations, if one is presented. In addition, the new guidance allows only service cost to be capitalized. We applied the new guidance using the retrospective method. In alignment with the new standards update, we reclassified $7 million and $12 million of expense from Cost of Goods Sold ("CGS") and $4 million and $7 million of expense from Selling, Administrative and General Expense (“SAG”), including corporate related costs of $3 million and $6 million, to Other (Income) Expense for the three and six months ended June 30, 2017, respectively. The provision of the new standards update that allows only service cost to be capitalized resulted in an additional one-time charge of $9 million which was recorded in Other (Income) Expense for the six months ended June 30, 2018.

We expect service related costs of approximately $35 million per year, including approximately $5 million per year of corporate related costs, will remain in CGS and SAG. Further, we expect approximately $90 million of non-service related costs, including approximately $15 million of corporate related costs and excluding settlement/curtailment charges, to be classified in Other (Income) Expense during 2018.

Effective January 1, 2018, we adopted an accounting standards update with new guidance on the accounting for the income tax consequences of intra-entity transfers of assets other than inventory, including the elimination of the prohibition on recognition of current and deferred income taxes on such transfers.  As a result of using the modified retrospective adoption approach, $2 million was recorded as a cumulative effect adjustment to increase Retained Earnings, with Deferred Income Taxes increasing by $7 million and Other Assets decreasing by $5 million. We do not expect the impact of the adoption of this new standards update to be material to our consolidated financial statements on an ongoing basis.

Effective January 1, 2018, we adopted an accounting standards update with new guidance to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires the application of modification accounting if the value, vesting conditions or classification of the award changes. The adoption of this standards update did not impact our consolidated financial statements.

Recently Issued Accounting Standards

In February 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that allows an optional one-time reclassification from Accumulated Other Comprehensive Income (Loss) to Retained Earnings for the stranded tax effects resulting from the new corporate tax rate under the Tax Cuts and Jobs Act. The new guidance requires additional disclosures, regardless of whether the optional reclassification is elected. The standards update is effective for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted, and may be applied retrospectively or as of the beginning of the period of adoption. Goodyear has elected not to adopt this optional reclassification.

In August 2017, the FASB issued an accounting standards update with new guidance intended to reduce complexity in hedge accounting and make hedge results easier to understand. This includes simplifying how hedge results are presented and disclosed in the financial statements, expanding the types of hedge strategies allowed and providing relief around the documentation and assessment requirements. The standards update is effective using a modified retrospective approach, with the presentation and disclosure guidance required prospectively, for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. The adoption of this accounting standards update is not expected to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued an accounting standards update with new guidance intended to simplify the subsequent measurement of goodwill. The standards update eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will perform its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The standards update is effective prospectively for annual and interim goodwill impairment testing performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The adoption of this standards update is not expected to impact our consolidated financial statements.

In February 2016, the FASB issued an accounting standards update with new guidance intended to increase transparency and comparability among organizations relating to leases.  Lessees will be required to recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term.  The FASB retained a dual model for lease classification, requiring leases to be classified as finance or operating leases to determine recognition in the statements of operations and cash flows; however, substantially all leases will be required to be recognized on the balance sheet.  Lessor accounting is largely unchanged from the current accounting model.  The standards update will also require quantitative and qualitative disclosures regarding key information about leasing arrangements. The standards update is effective using a modified retrospective approach for fiscal years and interim periods beginning after December 15, 2018, with early adoption permitted. As originally issued, the standards update requires application at the beginning of the earliest comparative period presented at the time of adoption.  At its November 29, 2017 meeting, the FASB proposed allowing entities the option to instead apply the provisions of the new leases guidance at the effective date, without adjusting the comparative periods presented.  While not yet issued, the FASB subsequently approved this update.  The standard also provides for certain practical expedients. We have completed aggregating our worldwide lease contracts, are currently in the process of evaluating these lease contracts and are implementing a new lease accounting system to support the accounting and disclosure requirements of this standards update. The adoption of this standards update will have a material impact on our financial statements as we have significant operating lease commitments that are off-balance sheet in accordance with current US GAAP.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of all legal entities in which we hold a controlling financial interest. A controlling financial interest generally arises from our ownership of a majority of the voting shares of our subsidiaries. We would also hold a controlling financial interest in variable interest entities if we are considered to be the primary beneficiary. Investments in companies in which we do not own a majority interest and we have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. Investments in other companies are carried at cost. All intercompany balances and transactions have been eliminated in consolidation.

Restricted Cash

Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs.  The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables.

Restricted Cash, which is included in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets, primarily represents amounts required to be set aside in connection with accounts receivable factoring programs.  The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables.

Reclassifications and Adjustments

Reclassifications and Adjustments

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation.

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Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The impact of the adoption of the standards update on our Consolidated Balance Sheet as of June 30, 2018 was as follows:

	As of June 30, 2018
			Balances
(In millions)	As Reported		Without Adoption		Effect of Change
Accounts Receivable	$	2,388	$	2,380	$	8
Prepaid Expenses and Other Current Assets	265		255		10
Deferred Income Taxes — Asset	2,035		2,036		(1		)
Accounts Payable — Trade	2,880		2,875		5
Other Current Liabilities	821		811		10
Retained Earnings	6,208		6,206		2

The cumulative effect of the changes made to our January 1, 2018 balance sheet for the adoption of the standards update was as follows:

	Balance at		Adjustment for			Balance at
(In millions)	December 31, 2017		New Standard			January 1, 2018
Accounts Receivable	$	2,025	$	3		$	2,028
Prepaid Expenses and Other Current Assets	224		7			231
Deferred Income Taxes — Asset	2,008		1			2,009
Accounts Payable — Trade	2,807		7			2,814
Other Current Liabilities	1,026		7			1,033
Retained Earnings	6,044		(3		)	6,041

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows:

	June 30,
(In millions)	2018		2017
Cash and Cash Equivalents	$	975	$	903
Restricted Cash	75		66
Total Cash, Cash Equivalents and Restricted Cash	$	1,050	$	969

Restrictions on Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of Cash, Cash Equivalents and Restricted Cash as reported within the Consolidated Statements of Cash Flows:

	June 30,
(In millions)	2018		2017
Cash and Cash Equivalents	$	975	$	903
Restricted Cash	75		66
Total Cash, Cash Equivalents and Restricted Cash	$	1,050	$	969

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Net Sales (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Disaggregated Net Sales From Contracts with Customers

	Six Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	3,074	$	2,361	$	1,029	$	6,464
Other tire and related sales	294		203		62		559
Retail services and service related sales	281		24		41		346
Chemical	291		—		—		291
Other	7		2		2		11
Net Sales by reportable segment	$	3,947	$	2,590	$	1,134	$	7,671

The following table shows disaggregated net sales from contracts with customers by major source:

	Three Months Ended June 30, 2018
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	1,568	$	1,152	$	511	$	3,231
Other tire and related sales	159		98		32		289
Retail services and service related sales	144		9		19		172
Chemical	143		—		—		143
Other	4		1		1		6
Net Sales by reportable segment	$	2,018	$	1,260	$	563	$	3,841

Balance and Changes in Deferred Revenue Related to Contracts with Customers

The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six months ended June 30, 2018:

(In millions)
Balance at December 31, 2017	$	121
Revenue deferred during period	55
Revenue recognized during period	(74		)
Impact of foreign currency translation	—
Balance at June 30, 2018	$	102

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Costs Associated with Rationalization Programs (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Roll-Forward of the Rationalization Liability Between Periods

The following table shows the roll-forward of our liability between periods:

				Other Exit and
	Associate-			Non-cancelable
(In millions)	Related Costs			Lease Costs			Total
Balance at December 31, 2017	$	210		$	3		$	213
2018 Charges	36			11			47
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively	(120		)	(12		)	(132		)
Reversed to the Statements of Operations	(12		)	—			(12		)
Balance at June 30, 2018	$	114		$	2		$	116

Net Rationalization Charges Included in Income Before Income Taxes

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2018			2017		2018			2017
Current Year Plans
Associate Severance and Other Related Costs	$	1		$	2	$	32		$	25
Other Exit and Non-Cancelable Lease Costs	—			1		—			1
Current Year Plans - Net Charges	$	1		$	3	$	32		$	26
Prior Year Plans
Associate Severance and Other Related Costs	$	(6	)	$	17	$	(8	)	$	17
Other Exit and Non-Cancelable Lease Costs	3			7		11			13
Prior Year Plans - Net Charges	(3		)	24		3			30
Total Net Charges	$	(2	)	$	27	$	35		$	56
Asset Write-off and Accelerated Depreciation Charges	$	1		$	21	$	2		$	29

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Other (Income) Expense (Tables)

6 Months Ended

Jun. 30, 2018

Other Income and Expenses [Abstract]

Schedule of Other (Income) Expense

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Non-service related pension and other postretirement benefits cost	$	25		$	11		$	59		$	19
Financing fees and financial instruments	9			32			18			40
Royalty income	(5		)	(11		)	(10		)	(16		)
Interest income	(2		)	(3		)	(6		)	(7		)
Net foreign currency exchange (gains) losses	2			(2		)	(5		)	(3		)
General and product liability expense (income) - discontinued products	(3		)	1			(2		)	3
Net (gains) losses on asset sales	(2		)	(12		)	—			(13		)
Miscellaneous expense	21			—			28			1
	$	45		$	16		$	82		$	24

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Common Share

Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions, except per share amounts)	2018		2017		2018		2017
Earnings per share — basic:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Earnings per common share — basic	$	0.66	$	0.58	$	0.97	$	1.24
Earnings per share — diluted:
Goodyear net income	$	157	$	147	$	232	$	313
Weighted average shares outstanding	239		252		240		252
Dilutive effect of stock options and other dilutive securities	2		4		2		4
Weighted average shares outstanding — diluted	241		256		242		256
Earnings per common share — diluted	$	0.65	$	0.58	$	0.96	$	1.23

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segment Reporting Information

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Sales:
Americas	$	2,018		$	2,029		$	3,947		$	3,987
Europe, Middle East and Africa	1,260			1,114			2,590			2,353
Asia Pacific	563			543			1,134			1,045
Net Sales	$	3,841		$	3,686		$	7,671		$	7,385
Segment Operating Income:
Americas	$	154		$	218		$	281		$	434
Europe, Middle East and Africa	100			80			178			181
Asia Pacific	70			71			146			144
Total Segment Operating Income	$	324		$	369		$	605		$	759
Less:
Rationalizations	$	(2	)	$	27		$	35		$	56
Interest expense	78			89			154			176
Other (income) expense (Note 4)	45			16			82			24
Asset write-offs and accelerated depreciation	1			21			2			29
Corporate incentive compensation plans	3			12			7			27
Intercompany profit elimination	(1		)	(2		)	(4		)	(5		)
Retained expenses of divested operations	2			3			5			6
Other	15			13			28			17
Income before Income Taxes	$	183		$	190		$	296		$	429

Charges and Credits Attributable to the SBUs

Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs, Net (gains) losses on asset sales and Asset write-offs and accelerated depreciation were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Rationalizations:
Americas	$	—		$	1		$	3		$	2
Europe, Middle East and Africa	(1		)	26			26			53
Asia Pacific	—			—			3			1
Total Segment Rationalizations	$	(1	)	$	27		$	32		$	56
Corporate	(1		)	—			3			—
Total Rationalizations	$	(2	)	$	27		$	35		$	56
Net (Gains) Losses on Asset Sales:
Americas	$	(2	)	$	(2	)	$	(2	)	$	(3	)
Europe, Middle East and Africa	—			(10		)	2			(10		)
Total Net (Gains) Losses on Asset Sales	$	(2	)	$	(12	)	$	—		$	(13	)

Asset Write-offs and Accelerated Depreciation:
Europe, Middle East and Africa	$	1	$	21	$	2	$	29
Total Asset Write-offs and Accelerated Depreciation	$	1	$	21	$	2	$	29

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Financing Arrangements and Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Financing Arrangements and Derivative Financial Instruments [Abstract]

Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year

The following table presents amounts due within one year:

	June 30,			December 31,
(In millions)	2018			2017
Notes payable and overdrafts	$	335		$	262
Weighted average interest rate	4.17		%	5.00		%
Chinese credit facilities	$	57		$	113
Other foreign and domestic debt (including capital leases)	229			278
Long term debt and capital leases due within one year	$	286		$	391
Weighted average interest rate	4.89		%	6.86		%
Total obligations due within one year	$	621		$	653

Long Term Debt and Capital Leases, Net

The following table presents long term debt and capital leases, net of unamortized discounts, and interest rates:

	June 30, 2018					December 31, 2017
				Interest					Interest
(In millions)	Amount			Rate		Amount			Rate
Notes:
8.75% due 2020	$	277				$	275
5.125% due 2023	1,000					1,000
3.75% Euro Notes due 2023	291					300
5% due 2026	900					900
4.875% due 2027	700					700
7% due 2028	150					150
Credit Facilities:
$2.0 billion first lien revolving credit facility due 2021	340			3.26	%	—			—
Second lien term loan facility due 2025	400			4.05	%	400			3.50	%
€550 million revolving credit facility due 2020	310			3.79	%	—			—
Pan-European accounts receivable facility	177			0.94	%	224			0.90	%
Mexican credit facilities	340			3.83	%	340			3.14	%
Chinese credit facilities	173			4.99	%	212			4.87	%
Other foreign and domestic debt(1)	954			5.43	%	967			6.02	%
	6,012					5,468
Unamortized deferred financing fees	(39		)			(41		)
	5,973					5,427
Capital lease obligations	39					40
	6,012					5,467
Less portion due within one year	(286		)			(391		)
	$	5,726				$	5,076

(1) Interest rates are weighted average interest rates related to various foreign credit facilities with customary terms and conditions and domestic debt related to our Global and Americas Headquarters.

Fair Values for Foreign Currency Contracts Not Designated as Hedging Instruments

The following table presents the fair values for foreign currency contracts not designated as hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	26		$	3
Other current liabilities	(5		)	(9		)

Fair Values for Foreign Currency Contracts Designated as Cash Flow Hedging Instruments

The following table presents fair values for foreign currency contracts designated as cash flow hedging instruments:

	June 30,			December 31,
(In millions)	2018			2017
Fair Values — Current asset (liability):
Accounts receivable	$	5		$	1
Other current liabilities	(2		)	(8		)
Fair Values — Long term asset (liability):
Other assets	$	2		$	—
Other long term liabilities	—			(2		)

Information Related to Foreign Currency Contracts Designated as Cash Flow Hedging Instruments

The following table presents information related to foreign currency contracts designated as cash flow hedging instruments (before tax and minority):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions) (Income) Expense	2018			2017			2018			2017
Amounts deferred to Accumulated Other Comprehensive Loss ("AOCL")	$	(14	)	$	13		$	(8	)	$	21
Amount of deferred (gain) loss reclassified from AOCL into CGS	3			(2		)	7			(4		)
Amounts excluded from effectiveness testing	(1		)	—			(1		)	(1		)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Information About Assets and Liabilities Recorded at Fair Value

The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June 30, 2018 and December 31, 2017:

	Total Carrying Value in the Consolidated Balance Sheet				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In millions)	2018		2017		2018		2017		2018		2017		2018		2017
Assets:
Investments	$	10	$	11	$	10	$	11	$	—	$	—	$	—	$	—
Foreign Exchange Contracts	33		4		—		—		33		4		—		—
Total Assets at Fair Value	$	43	$	15	$	10	$	11	$	33	$	4	$	—	$	—
Liabilities:
Foreign Exchange Contracts	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—
Total Liabilities at Fair Value	$	7	$	19	$	—	$	—	$	7	$	19	$	—	$	—

Supplemental Fair Value Information About Debt, Excluding Capital Leases

The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding capital leases, at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
(In millions)	2018		2017
Fixed Rate Debt(1):
Carrying amount — liability	$	3,604	$	3,616
Fair value — liability	3,541		3,786
Variable Rate Debt(1):
Carrying amount — liability	$	2,369	$	1,811
Fair value — liability	2,353		1,811

(1) Excludes Notes Payable and Overdrafts of $335 million and $262 million at June 30, 2018 and December 31, 2017, respectively, of which $184 million and $110 million, respectively, are at fixed rates and $151 million and $152 million, respectively, are at variable rates.  The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.

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Pension Savings And Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Defined Benefit Pension Cost

Defined benefit pension cost follows:

	U.S.						U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	1		$	1		$	2		$	2
Interest cost	39			41			79			81
Expected return on plan assets	(54		)	(61		)	(109		)	(121		)
Amortization of net losses	28			28			56			56
Net periodic pension cost	$	14		$	9		$	28		$	18
Net curtailments/settlements/termination benefits	3			1			3			1
Total defined benefit pension cost	$	17		$	10		$	31		$	19

	Non-U.S.						Non-U.S.
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2018			2017			2018			2017
Service cost	$	7		$	8		$	14		$	15
Interest cost	17			18			35			35
Expected return on plan assets	(18		)	(20		)	(36		)	(39		)
Amortization of net losses	8			8			15			16
Net periodic pension cost	$	14		$	14		$	28		$	27

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Commitments and Contingent Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Summary of Asbestos Claims Activity

A summary of recent approximate asbestos claims activity follows. Because claims are often filed and disposed of by dismissal or settlement in large numbers, the amount and timing of settlements and the number of open claims during a particular period can fluctuate significantly.

	Six Months Ended			Year Ended
(Dollars in millions)	June 30, 2018			December 31, 2017
Pending claims, beginning of period	54,300			64,400
New claims filed	900			1,900
Claims settled/dismissed	(5,700		)	(12,000		)
Pending claims, end of period	49,500			54,300
Payments (1)	$	7		$	16

(1) Represents cash payments made during the period by us and our insurers on asbestos litigation defense and claim resolution.

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Changes in Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Changes In Shareholders' Equity

The following tables present the changes in shareholders’ equity for the six months ended June 30, 2018 and 2017:

	June 30, 2018									June 30, 2017
(In millions)	Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity			Goodyear Shareholders’ Equity			Minority Shareholders’ Equity – Nonredeemable			Total Shareholders’ Equity
Balance at beginning of period	$	4,603		$	247		$	4,850		$	4,507		$	218		$	4,725
Comprehensive income (loss):
Net income	232			12			244			313			10			323
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)	(133		)	(16		)	(149		)	121			13			134
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)	53			—			53			39			—			39
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)	19			—			19			3			—			3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)	4			—			4			—			—			—
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)	6			—			6			(14		)	—			(14		)
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)	5			—			5			(3		)	—			(3		)
Other comprehensive income (loss)	(46		)	(16		)	(62		)	146			13			159
Total comprehensive income (loss)	186			(4		)	182			459			23			482
Adoption of new accounting standards updates (Note 1)	(1		)	—			(1		)	—			—			—
Dividends declared to minority shareholders	—			(7		)	(7		)	—			(5		)	(5		)
Stock-based compensation plans (Note 11)	8			—			8			12			—			12
Repurchase of common stock (Note 13)	(100		)	—			(100		)	(30		)	—			(30		)
Dividends declared (Note 13)	(67		)	—			(67		)	(50		)	—			(50		)
Common stock issued from treasury	3			—			3			11			—			11
Purchase of minority shares	5			(29		)	(24		)	—			—			—
Balance at end of period	$	4,637		$	207		$	4,844		$	4,909		$	236		$	5,145

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Reclassifications out of Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2018

Reclassifications out of Accumulated Other Comprehensive Loss [Abstract]

Changes in Accumulated Other Comprehensive Loss

The following table presents changes in Accumulated Other Comprehensive Loss (AOCL), by component, for the six months ended June 30, 2018 and 2017:

(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2017	$	(915	)	$	(3,052	)	$	(9	)	$	(3,976	)
Other comprehensive income (loss) before reclassifications, net of tax	(133		)	19			6			(108		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			57			5			62
Balance at June 30, 2018	$	(1,048	)	$	(2,976	)	$	2		$	(4,022	)
(In millions) Income (Loss)	Foreign Currency Translation Adjustment			Unrecognized Net Actuarial Losses and Prior Service Costs			Deferred Derivative Gains (Losses)			Total
Balance at December 31, 2016	$	(1,155	)	$	(3,053	)	$	10		$	(4,198	)
Other comprehensive income (loss) before reclassifications, net of tax	121			3			(14		)	110
Amounts reclassified from accumulated other comprehensive loss, net of tax	—			39			(3		)	36
Balance at June 30, 2017	$	(1,034	)	$	(3,011	)	$	(7	)	$	(4,052	)

Reclassifications out of Accumulated Other Comprehensive Loss

The following table presents reclassifications out of Accumulated Other Comprehensive Loss:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
(In millions) (Income) Expense	Amount Reclassified						Amount Reclassified						Affected Line Item in the Consolidated Statements of Operations
Component of AOCL	from AOCL						from AOCL
Amortization of prior service cost and unrecognized gains and losses	$	34		$	30		$	69		$	60		Other (Income) Expense
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures	6			—			6			—			Other (Income) Expense
Unrecognized Net Actuarial Losses and Prior Service Costs, before tax	40			30			75			60
Tax effect	(10		)	(11		)	(18		)	(21		)	United States and Foreign Taxes
Net of tax	$	30		$	19		$	57		$	39		Goodyear Net Income
Deferred Derivative (Gains) Losses, before tax	$	3		$	(2	)	$	7		$	(4	)	Cost of Goods Sold
Tax effect	(1		)	—			(2		)	1			United States and Foreign Taxes
Net of tax	$	2		$	(2	)	$	5		$	(3	)	Goodyear Net Income
Total reclassifications	$	32		$	17		$	62		$	36		Goodyear Net Income

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Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

	Condensed Consolidating Balance Sheet
	June 30, 2018
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	135	$	49		$	791	$	—		$	975
Accounts Receivable, net	658		146			1,584		—			2,388
Accounts Receivable From Affiliates	—		198			—		(198		)	—
Inventories	1,522		63			1,375		(19		)	2,941
Prepaid Expenses and Other Current Assets	79		2			181		3			265
Total Current Assets	2,394		458			3,931		(214		)	6,569
Goodwill	24		1			426		125			576
Intangible Assets	118		—			20		—			138
Deferred Income Taxes	1,598		31			402		4			2,035
Other Assets	249		49			506		—			804
Investments in Subsidiaries	4,294		517			—		(4,811		)	—
Property, Plant and Equipment, net	2,470		427			4,363		(27		)	7,233
Total Assets	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	928	$	119		$	1,833	$	—		$	2,880
Accounts Payable to Affiliates	65		—			133		(198		)	—
Compensation and Benefits	281		14			216		—			511
Other Current Liabilities	345		(9		)	485		—			821
Notes Payable and Overdrafts	—		—			335		—			335
Long Term Debt and Capital Leases Due Within One Year	59		—			227		—			286
Total Current Liabilities	1,678		124			3,229		(198		)	4,833
Long Term Debt and Capital Leases	3,886		167			1,673		—			5,726
Compensation and Benefits	589		97			683		—			1,369
Deferred Income Taxes	—		—			99		—			99
Other Long Term Liabilities	357		9			118		—			484
Total Liabilities	6,510		397			5,802		(198		)	12,511
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	237		—			—		—			237
Other Equity	4,400		1,086			3,639		(4,725		)	4,400
Goodyear Shareholders’ Equity	4,637		1,086			3,639		(4,725		)	4,637
Minority Shareholders’ Equity — Nonredeemable	—		—			207		—			207
Total Shareholders’ Equity	4,637		1,086			3,846		(4,725		)	4,844
Total Liabilities and Shareholders’ Equity	$	11,147	$	1,483		$	9,648	$	(4,923	)	$	17,355

	Condensed Consolidating Balance Sheet
	December 31, 2017
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	176	$	32	$	835	$	—		$	1,043
Accounts Receivable, net	649		116		1,260		—			2,025
Accounts Receivable From Affiliates	—		254		71		(325		)	—
Inventories	1,444		43		1,329		(29		)	2,787
Prepaid Expenses and Other Current Assets	59		3		157		5			224
Total Current Assets	2,328		448		3,652		(349		)	6,079
Goodwill	24		1		444		126			595
Intangible Assets	119		—		20		—			139
Deferred Income Taxes	1,549		35		424		—			2,008
Other Assets	221		51		518		2			792
Investments in Subsidiaries	4,424		503		—		(4,927		)	—
Property, Plant and Equipment, net	2,491		420		4,569		(29		)	7,451
Total Assets	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	927	$	115	$	1,765	$	—		$	2,807
Accounts Payable to Affiliates	325		—		—		(325		)	—
Compensation and Benefits	322		15		202		—			539
Other Current Liabilities	323		2		701		—			1,026
Notes Payable and Overdrafts	—		—		262		—			262
Long Term Debt and Capital Leases Due Within One Year	60		—		331		—			391
Total Current Liabilities	1,957		132		3,261		(325		)	5,025
Long Term Debt and Capital Leases	3,544		152		1,380		—			5,076
Compensation and Benefits	682		109		724		—			1,515
Deferred Income Taxes	—		1		99		—			100
Other Long Term Liabilities	370		8		120		—			498
Total Liabilities	6,553		402		5,584		(325		)	12,214
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	240		—		—		—			240
Other Equity	4,363		1,056		3,796		(4,852		)	4,363
Goodyear Shareholders’ Equity	4,603		1,056		3,796		(4,852		)	4,603
Minority Shareholders’ Equity — Nonredeemable	—		—		247		—			247
Total Shareholders’ Equity	4,603		1,056		4,043		(4,852		)	4,850
Total Liabilities and Shareholders’ Equity	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064

Consolidating Statements of Operations

	Consolidating Statements of Operations
	Three Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,834		$	329		$	2,406		$	(728	)	$	3,841
Cost of Goods Sold	1,464			335			1,899			(749		)	2,949
Selling, Administrative and General Expense	258			8			322			—			588
Rationalizations	(1		)	—			(1		)	—			(2		)
Interest Expense	56			5			22			(5		)	78
Other (Income) Expense	14			3			8			20			45
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	43			(22		)	156			6			183
United States and Foreign Taxes	(37		)	(5		)	62			(1		)	19
Equity in Earnings of Subsidiaries	77			12			—			(89		)	—
Net Income (Loss)	157			(5		)	94			(82		)	164
Less: Minority Shareholders’ Net Income	—			—			7			—			7
Goodyear Net Income (Loss)	$	157		$	(5	)	$	87		$	(82	)	$	157
Comprehensive Income (Loss)	$	2		$	(25	)	$	(123	)	$	137		$	(9	)
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(11		)	—			(11		)
Goodyear Comprehensive Income (Loss)	$	2		$	(25	)	$	(112	)	$	137		$	2

	Consolidating Statements of Operations
	Three Months Ended June 30, 2017
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	1,863	$	290		$	2,316		$	(783	)	$	3,686
Cost of Goods Sold	1,459		284			1,840			(798		)	2,785
Selling, Administrative and General Expense	247		9			322			1			579
Rationalizations	1		—			26			—			27
Interest Expense	69		2			31			(13		)	89
Other (Income) Expense	4		2			(15		)	25			16
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	83		(7		)	112			2			190
United States and Foreign Taxes	17		(3		)	20			2			36
Equity in Earnings of Subsidiaries	81		16			—			(97		)	—
Net Income (Loss)	147		12			92			(97		)	154
Less: Minority Shareholders’ Net Income	—		—			7			—			7
Goodyear Net Income (Loss)	$	147	$	12		$	85		$	(97	)	$	147
Comprehensive Income (Loss)	$	198	$	13		$	146		$	(145	)	$	212
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—		—			14			—			14
Goodyear Comprehensive Income (Loss)	$	198	$	13		$	132		$	(145	)	$	198

	Consolidating Statements of Operations
	Six Months Ended June 30, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,518		$	638		$	4,863		$	(1,348	)	$	7,671
Cost of Goods Sold	2,829			608			3,877			(1,389		)	5,925
Selling, Administrative and General Expense	517			18			644			—			1,179
Rationalizations	5			—			30			—			35
Interest Expense	110			10			45			(11		)	154
Other (Income) Expense	24			10			8			40			82
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	33			(8		)	259			12			296
United States and Foreign Taxes	(40		)	(2		)	92			2			52
Equity in Earnings of Subsidiaries	159			34			—			(193		)	—
Net Income (Loss)	232			28			167			(183		)	244
Less: Minority Shareholders’ Net Income	—			—			12			—			12
Goodyear Net Income (Loss)	$	232		$	28		$	155		$	(183	)	$	232
Comprehensive Income (Loss)	$	186		$	30		$	32		$	(66	)	$	182
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(4		)	—			(4		)
Goodyear Comprehensive Income (Loss)	$	186		$	30		$	36		$	(66	)	$	186

	Consolidating Statements of Operations
	Six Months Ended June 30, 2017
(In millions)	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	3,630		$	589	$	4,618		$	(1,452	)	$	7,385
Cost of Goods Sold	2,837			557		3,634			(1,483		)	5,545
Selling, Administrative and General Expense	506			17		632			—			1,155
Rationalizations	2			—		54			—			56
Interest Expense	134			4		62			(24		)	176
Other (Income) Expense	(13		)	6		(15		)	46			24
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	164			5		251			9			429
United States and Foreign Taxes	60			—		49			(3		)	106
Equity in Earnings of Subsidiaries	209			31		—			(240		)	—
Net Income (Loss)	313			36		202			(228		)	323
Less: Minority Shareholders’ Net Income	—			—		10			—			10
Goodyear Net Income (Loss)	$	313		$	36	$	192		$	(228	)	$	313
Comprehensive Income (Loss)	$	459		$	41	$	340		$	(358	)	$	482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—		23			—			23
Goodyear Comprehensive Income (Loss)	$	459		$	41	$	317		$	(358	)	$	459

Condensed Consolidating Statement of Cash Flows

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2018
(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	$	457		$	(9	)	$	(336	)	$	(196	)	$	(84	)
Cash Flows from Investing Activities:
Capital Expenditures	(180		)	(41		)	(220		)	(1		)	(442		)
Asset Dispositions	—			2			—			—			2
Short Term Securities Acquired	—			—			(30		)	—			(30		)
Short Term Securities Redeemed	—			—			38			—			38
Capital Contributions and Loans Incurred	(306		)	—			(213		)	519			—
Capital Redemptions and Loans Paid	69			—			430			(499		)	—
Other Transactions	(38		)	—			—			—			(38		)
Total Cash Flows from Investing Activities	(455		)	(39		)	5			19			(470		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	575			—			437			—			1,012
Short Term Debt and Overdrafts Paid	(575		)	—			(345		)	—			(920		)
Long Term Debt Incurred	1,605			15			1,924			—			3,544
Long Term Debt Paid	(1,267		)	—			(1,666		)	—			(2,933		)
Common Stock Issued	3			—			—			—			3
Common Stock Repurchased	(100		)	—			—			—			(100		)
Common Stock Dividends Paid	(67		)	—			—			—			(67		)
Capital Contributions and Loans Incurred	213			52			254			(519		)	—
Capital Redemptions and Loans Paid	(430		)	—			(69		)	499			—
Intercompany Dividends Paid	—			—			(197		)	197			—
Transactions with Minority Interests in Subsidiaries	—			—			(26		)	—			(26		)
Debt Related Costs and Other Transactions	7			—			(1		)	—			6
Total Cash Flows from Financing Activities	(36		)	67			311			177			519
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			(2		)	(23		)	—			(25		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(34		)	17			(43		)	—			(60		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	201			32			877			—			1,110
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	167		$	49		$	834		$	—		$	1,050

	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2017
(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	$	(49	)	$	(30	)	$	(90	)	$	(16	)	$	(185	)
Cash Flows from Investing Activities:
Capital Expenditures	(190		)	(86		)	(224		)	3			(497		)
Asset Dispositions	1			—			1			—			2
Short Term Securities Acquired	—			—			(43		)	—			(43		)
Short Term Securities Redeemed	—			—			43			—			43
Capital Contributions and Loans Incurred	(62		)	—			(30		)	92			—
Capital Redemptions and Loans Paid	—			—			61			(61		)	—
Other Transactions	—			—			(3		)	—			(3		)
Total Cash Flows from Investing Activities	(251		)	(86		)	(195		)	34			(498		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	40			—			250			—			290
Short Term Debt and Overdrafts Paid	(40		)	—			(263		)	—			(303		)
Long Term Debt Incurred	2,090			52			1,314			—			3,456
Long Term Debt Paid	(1,759		)	—			(1,146		)	—			(2,905		)
Common Stock Issued	11			—			—			—			11
Common Stock Repurchased	(30		)	—			—			—			(30		)
Common Stock Dividends Paid	(50		)	—			—			—			(50		)
Capital Contributions and Loans Incurred	30			62			—			(92		)	—
Capital Redemptions and Loans Paid	(61		)	—			—			61			—
Intercompany Dividends Paid	—			—			(13		)	13			—
Transactions with Minority Interests in Subsidiaries	—			—			(5		)	—			(5		)
Debt Related Costs and Other Transactions	(26		)	—			(12		)	—			(38		)
Total Cash Flows from Financing Activities	205			114			125			(18		)	426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			2			35			—			37
Net Change in Cash, Cash Equivalents and Restricted Cash	(95		)	—			(125		)	—			(220		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	210			55			924			—			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	$	115		$	55		$	799		$	—		$	969

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Accounting Policies - Schedule of Changes in Accounting Policy (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, net	$ 2,388	$ 2,028	$ 2,025
Prepaid Expenses and Other Current Assets	265	231	224
Deferred Income Taxes	2,035	2,009	2,008
Accounts Payable — Trade	2,880	2,814	2,807
Other Current Liabilities	821	1,033	1,026
Retained Earnings	6,208	6,041	6,044
Calculated under Revenue Guidance in Effect before Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, net			2,025
Prepaid Expenses and Other Current Assets			224
Deferred Income Taxes			2,008
Accounts Payable — Trade			2,807
Other Current Liabilities			1,026
Retained Earnings			$ 6,044
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, net	2,380
Prepaid Expenses and Other Current Assets	255
Deferred Income Taxes	2,036
Accounts Payable — Trade	2,875
Other Current Liabilities	811
Retained Earnings	6,206
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Receivable, net	8	3
Prepaid Expenses and Other Current Assets	10	7
Deferred Income Taxes	(1)	1
Accounts Payable — Trade	5	7
Other Current Liabilities	10	7
Retained Earnings	$ 2	$ (3)

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Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Sales	$ 3,841	$ 3,686	$ 7,671	$ 7,385
Cost of Goods Sold	(2,949)	(2,785)	(5,925)	(5,545)
Net income	(164)	(154)	(244)	(323)
Selling, general and administrative expense	(588)	(579)	(1,179)	(1,155)
Other (income) expense	45	16	82	24
Cumulative effect of adoption of new accounting standards						$ (1)	$ 0
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Sales	8		7
Net income	(6)		(5)
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Goods Sold		7		12
Selling, general and administrative expense		4		7
General and administrative expense		$ 3		$ 6
Other (income) expense			9
Accounting Standards Update 2016-09 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net periodic defined benefits expense (reversal of expense)					$ 35
Net periodic defined benefits expense (reversal of expense), corporate related costs					5
Net periodic defined benefits expense (reversal of expense), excluding service cost component					90
Net periodic defined benefits expense (reversal of expense), excluding service cost component, corporate related costs					$ 15
Accounting Standards Update 2016-16 | Deferred Income Taxes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption of new accounting standards	7		7
Accounting Standards Update 2016-16 | Other assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption of new accounting standards	(5)		(5)
Accounting Standards Update 2016-16 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption of new accounting standards	$ 2		$ 2

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Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents	$ 975	$ 1,043	$ 903
Restricted Cash	75		66
Total Cash, Cash Equivalents and Restricted Cash	$ 1,050	$ 1,110	$ 969	$ 1,189

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Net Sales - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	$ 3,841	$ 3,686	$ 7,671	$ 7,385
Tire unit sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	3,231		6,464
Other tire and related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	289		559
Retail services and service related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	172		346
Chemical
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	143		291
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	6		11
Americas
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	2,018	2,029	3,947	3,987
Americas | Tire unit sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	1,568		3,074
Americas | Other tire and related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	159		294
Americas | Retail services and service related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	144		281
Americas | Chemical
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	143		291
Americas | Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	4		7
Europe, Middle East and Africa
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	1,260	1,114	2,590	2,353
Europe, Middle East and Africa | Tire unit sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	1,152		2,361
Europe, Middle East and Africa | Other tire and related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	98		203
Europe, Middle East and Africa | Retail services and service related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	9		24
Europe, Middle East and Africa | Chemical
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	0		0
Europe, Middle East and Africa | Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	1		2
Asia Pacific
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	563	$ 543	1,134	$ 1,045
Asia Pacific | Tire unit sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	511		1,029
Asia Pacific | Other tire and related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	32		62
Asia Pacific | Retail services and service related sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	19		41
Asia Pacific | Chemical
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	0		0
Asia Pacific | Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net Sales	$ 1		$ 2

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Net Sales - Schedule of Balance of Deferred Revenue Related to Contracts with Customers (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Deferred revenue, current	$ 57
Deferred revenue, noncurrent	45
Change in Contract with Customer, Liability [Roll Forward]
Balance at December 31, 2017	121
Revenue deferred during period	55
Revenue recognized during period	(74)
Impact of foreign currency translation	0
Balance at June 30, 2018	$ 102

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Costs Associated with Rationalization Programs - Roll-Forward of the Rationalization Liability Between Periods (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Restructuring Reserve [Roll Forward]
Beginning balance		$ 213
2018 Charges		47
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively		(132)
Reversed to the Statements of Operations	$ (7)	(12)
Ending balance	116	116
Associate Severance and Other Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance		210
2018 Charges		36
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively		(120)
Reversed to the Statements of Operations		(12)
Ending balance	114	114
Foreign currency translation gain (loss)		1
Other Exit and Non-Cancelable Lease Costs
Restructuring Reserve [Roll Forward]
Beginning balance		3
2018 Charges		11
Incurred, including net Foreign Currency Translation of $1 million and $0 million, respectively		(12)
Reversed to the Statements of Operations		0
Ending balance	$ 2	2
Foreign currency translation gain (loss)		$ 0

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Costs Associated with Rationalization Programs - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) employee	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Rationalizations accrual balance	$ 116		$ 116		$ 213
Rationalizations	(2)	$ 27	35	$ 56
Rationalization reversals	7		12
Rationalization charges incurred to date					$ 730
Rationalization charges expected to be incurred in future periods	16		$ 16
Expected number of positions eliminated | employee			600
Current Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	1	3	$ 32	26
Expected number of positions eliminated | employee			300
Number of positions eliminated | employee			100
Prior Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	(3)	24	$ 3	30
Number of positions eliminated | employee			300
Employee Severance
Restructuring Cost and Reserve [Line Items]
Rationalizations accrual balance	44		$ 44
Employee Severance | Current Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	1		26
EMEA Restructuring, Manufacturing Employee Severance
Restructuring Cost and Reserve [Line Items]
Rationalizations accrual balance	40		40
Philippsburg Restructuring
Restructuring Cost and Reserve [Line Items]
Rationalizations accrual balance	8		8
Philippsburg Restructuring | Prior Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	2	18	9	20
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency
Restructuring Cost and Reserve [Line Items]
Rationalizations accrual balance	$ 11		11
Europe, Middle East, and Africa Restructuring Plan - Operating Efficiency | Current Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations		1	$ 6	7
EMEA Restructuring, SAG Employee Severance | Current Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations		2		19
Wolverhampton Restructuring Plan | Prior Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations		$ 2		$ 5
Amiens Restructuring Plan | Amiens Labor Claims
Restructuring Cost and Reserve [Line Items]
Loss contingency, number of plaintiffs | employee			850

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Costs Associated with Rationalization Programs - Net Rationalization Charges Included in Income Before Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Rationalizations	$ (2)	$ 27	$ 35	$ 56
Asset Write-off and Accelerated Depreciation Charges	1	21	2	29
Current Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	1	3	32	26
Current Year Plans | Associate Severance and Other Related Costs
Restructuring Cost and Reserve [Line Items]
Rationalizations	1	2	32	25
Current Year Plans | Other Exit and Non-Cancelable Lease Costs
Restructuring Cost and Reserve [Line Items]
Rationalizations	0	1	0	1
Prior Year Plans
Restructuring Cost and Reserve [Line Items]
Rationalizations	(3)	24	3	30
Prior Year Plans | Associate Severance and Other Related Costs
Restructuring Cost and Reserve [Line Items]
Rationalizations	(6)	17	(8)	17
Prior Year Plans | Other Exit and Non-Cancelable Lease Costs
Restructuring Cost and Reserve [Line Items]
Rationalizations	$ 3	$ 7	$ 11	$ 13

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Other (Income) Expense - Schedule of Other Income and Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Income and Expenses [Abstract]
Non-service related pension and other postretirement benefits cost	$ 25	$ 11	$ 59	$ 19
Financing fees and financial instruments	9	32	18	40
Royalty income	(5)	(11)	(10)	(16)
Interest income	(2)	(3)	(6)	(7)
Net foreign currency exchange (gains) losses	2	(2)	(5)	(3)
General and product liability expense (income) - discontinued products	(3)	1	(2)	3
Net (gains) losses on asset sales	(2)	(12)	0	(13)
Miscellaneous expense	21	0	28	1
Other (income) expense	$ 45	$ 16	$ 82	$ 24

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Other (Income) Expense - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other (Income) Expense [Line Items]
Other (income) expense	$ 45,000,000	$ 16,000,000	$ 82,000,000	$ 24,000,000
Insurance recoveries			2,000,000
Gain (loss) on changes in liability assumptions, probably insurance recoveries			2,000,000
Gain (loss) on disposition of assets		6,000,000		6,000,000
Professional fees	10,000,000		14,000,000
Insurance deductible	$ 8,000,000		11,000,000
7% Senior Notes Due 2022 | Senior Notes
Other (Income) Expense [Line Items]
Payment for debt extinguishment or debt prepayment cost		25,000,000		25,000,000
Debt instrument, face amount		$ 700,000,000		$ 700,000,000
Interest rate, stated percentage		7.00%		7.00%
Accounting Standards Update, Pension and Postretirement Benefits Cost | Restatement Adjustment
Other (Income) Expense [Line Items]
Other (income) expense			$ 9,000,000

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency [Line Items]
Tax expense	$ 19		$ 36	$ 52	$ 106
Income before income taxes	183		190	296	429
Favorable impact on income tax expense, discrete tax adjustments	28		$ 9	21	$ 11
Foreign tax credits on dividends	25
Transition tax expense (benefit)	(4)	$ 7
Provisional liability	80			80			$ 77
Provisional liability, increase (decrease) during period	(4)	$ 7
Provision for undistributed foreign earnings amount	$ 8			$ 8			19
Tax credit carryforwards, foreign							$ 750
Scenario, Forecast
Income Tax Contingency [Line Items]
Change in valuation allowance (up to)						$ 20

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Earnings Per Share - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings per share — basic:
Goodyear net income	$ 157	$ 147	$ 232	$ 313
Weighted average shares outstanding (shares)	239	252	240	252
Earnings per common share — basic (dollars per share)	$ 0.66	$ 0.58	$ 0.97	$ 1.24
Earnings per share — diluted:
Goodyear net income	$ 157	$ 147	$ 232	$ 313
Weighted average shares outstanding (shares)	239	252	240	252
Dilutive effect of stock options and other dilutive securities (shares)	2	4	2	4
Weighted average shares outstanding — diluted (shares)	241	256	242	256
Earnings per common share — diluted (dollars per share)	$ 0.65	$ 0.58	$ 0.96	$ 1.23

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Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Underwater Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equivalent shares excluded from weighted average shares outstanding (shares)	2	1	1	1

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Business Segments - Reporting Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Segment Reporting Information
Net Sales	$ 3,841	$ 3,686	$ 7,671	$ 7,385
Rationalizations	(2)	27	35	56
Interest expense	78	89	154	176
Other (income) expense	45	16	82	24
Asset write-offs and accelerated depreciation	1	21	2	29
Income before Income Taxes	183	190	296	429
Operating Segments
Business Segment Reporting Information
Rationalizations	(1)	27	32	56
Income before Income Taxes	324	369	605	759
Segment Reconciling Items
Business Segment Reporting Information
Rationalizations	(2)	27	35	56
Interest expense	78	89	154	176
Other (income) expense	45	16	82	24
Asset write-offs and accelerated depreciation	1	21	2	29
Corporate incentive compensation plans	3	12	7	27
Intercompany profit elimination	(1)	(2)	(4)	(5)
Retained expenses of divested operations	2	3	5	6
Other
Business Segment Reporting Information
Other	15	13	28	17
Americas
Business Segment Reporting Information
Net Sales	2,018	2,029	3,947	3,987
Americas | Operating Segments
Business Segment Reporting Information
Rationalizations	0	1	3	2
Income before Income Taxes	154	218	281	434
Europe, Middle East and Africa
Business Segment Reporting Information
Net Sales	1,260	1,114	2,590	2,353
Asset write-offs and accelerated depreciation	1	21	2	29
Europe, Middle East and Africa | Operating Segments
Business Segment Reporting Information
Rationalizations	(1)	26	26	53
Income before Income Taxes	100	80	178	181
Asia Pacific
Business Segment Reporting Information
Net Sales	563	543	1,134	1,045
Asia Pacific | Operating Segments
Business Segment Reporting Information
Rationalizations	0	0	3	1
Income before Income Taxes	$ 70	$ 71	$ 146	$ 144

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Business Segments - Charges and Credits Attributable to the SBUs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Rationalizations	$ (2)	$ 27	$ 35	$ 56
Net (gains) losses on asset sales	(2)	(12)	0	(13)
Asset write-offs and accelerated depreciation	1	21	2	29
Americas
Segment Reporting Information [Line Items]
Net (gains) losses on asset sales	(2)	(2)	(2)	(3)
Europe, Middle East and Africa
Segment Reporting Information [Line Items]
Net (gains) losses on asset sales	0	(10)	2	(10)
Asset write-offs and accelerated depreciation	1	21	2	29
Operating Segments
Segment Reporting Information [Line Items]
Rationalizations	(1)	27	32	56
Operating Segments | Americas
Segment Reporting Information [Line Items]
Rationalizations	0	1	3	2
Operating Segments | Europe, Middle East and Africa
Segment Reporting Information [Line Items]
Rationalizations	(1)	26	26	53
Operating Segments | Asia Pacific
Segment Reporting Information [Line Items]
Rationalizations	0	0	3	1
Corporate
Segment Reporting Information [Line Items]
Rationalizations	$ (1)	$ 0	$ 3	$ 0

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Financing Arrangements and Derivative Financial Instruments - Other Narrative (Details) $ in Millions	Jun. 30, 2018 USD ($)
Debt Instrument [Line Items]
Credit arrangements	$ 8,632
Credit arrangements, unused amount	$ 2,248
Debt, percentage bearing variable interest rate	40.00%
Long-term Debt
Debt Instrument [Line Items]
Credit arrangements	$ 8,044
Credit arrangements, unused amount	1,995
Short-term Debt
Debt Instrument [Line Items]
Credit arrangements	588
Credit arrangements, unused amount	$ 253
Variable Rate Credit Arrangements
Debt Instrument [Line Items]
Interest rate	4.08%

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Financing Arrangements and Derivative Financial Instruments - Schedule of Notes Payable and Overdrafts, Long Term Debt and Capital Leases Due Within One Year (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Notes payable and overdrafts, long term debt and capital leases due within one year
Notes payable and overdrafts	$ 335	$ 262
Long term debt and capital leases due within one year
Long term debt and capital leases due within one year	286	391
Total obligations due within one year	621	653
Other Foreign and Domestic Debt
Long term debt and capital leases due within one year
Long term debt and capital leases due within one year	$ 229	$ 278
Weighted average interest rate	5.43%	6.02%
Chinese Credit Facilities | Foreign Line of Credit | Line of Credit
Long term debt and capital leases due within one year
Long term debt and capital leases due within one year	$ 57	$ 113
Weighted average interest rate	4.99%	4.87%
Notes payable and overdrafts
Notes payable and overdrafts, long term debt and capital leases due within one year
Weighted average interest rate	4.17%	5.00%
Long term debt and capital leases due within one year
Long term debt and capital leases due within one year
Weighted average interest rate	4.89%	6.86%

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Financing Arrangements and Derivative Financial Instruments - Schedule of Long Term Debt and Capital Leases and Financing Arrangements (Details)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Oct. 16, 2017 EUR (€)
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 6,012,000,000		$ 5,468,000,000
Unamortized deferred financing fees	(39,000,000)		(41,000,000)
Total long term debt excluding capital leases	5,973,000,000		5,427,000,000
Capital lease obligations	39,000,000		40,000,000
Long-term debt and capital lease obligations, including current maturities	6,012,000,000		5,467,000,000
Less portion due within one year	(286,000,000)		(391,000,000)
Long-term debt and capital lease obligations, excluding current maturities	5,726,000,000		5,076,000,000
Senior Notes | 8.75% due 2020
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 277,000,000		$ 275,000,000
Interest rate, stated percentage	8.75%	8.75%	8.75%	8.75%
Senior Notes | 5.125% due 2023
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 1,000,000,000		$ 1,000,000,000
Interest rate, stated percentage	5.125%	5.125%	5.125%	5.125%
Senior Notes | 5% due 2026
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 900,000,000		$ 900,000,000
Interest rate, stated percentage	5.00%	5.00%	5.00%	5.00%
Senior Notes | 4.875% due 2027
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 700,000,000		$ 700,000,000
Interest rate, stated percentage	4.875%	4.875%	4.875%	4.875%
Senior Notes | 7% due 2028
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 150,000,000		$ 150,000,000
Interest rate, stated percentage	7.00%	7.00%	7.00%	7.00%
Euro Notes | 3.75% Euro Notes due 2023
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 291,000,000		$ 300,000,000
Interest rate, stated percentage	3.75%	3.75%	3.75%	3.75%
Line of Credit | $2.0 billion first lien revolving credit facility due 2021
Long-term Debt and Capital Lease Obligations [Abstract]
Maximum borrowing capacity	$ 2,000,000,000.0
Line of Credit | Revolving Credit Facility | $2.0 billion first lien revolving credit facility due 2021
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 340,000,000		$ 0
Interest rate	3.26%	3.26%	0.00%	0.00%
Maximum borrowing capacity	$ 2,000,000,000.0		$ 2,000,000,000.0
Line of Credit | Revolving Credit Facility | €550 million revolving credit facility due 2020
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 310,000,000		$ 0
Interest rate	3.79%	3.79%	0.00%	0.00%
Maximum borrowing capacity | €		€ 550,000,000		€ 550,000,000
Line of Credit | Secured Debt | Second lien term loan facility due 2025
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 400,000,000		$ 400,000,000
Interest rate	4.05%	4.05%	3.50%	3.50%
Line of Credit | Secured Debt | Pan-European accounts receivable facility
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 177,000,000		$ 224,000,000
Interest rate	0.94%	0.94%	0.90%	0.90%
Maximum borrowing capacity | €					€ 275,000,000
Line of Credit | Foreign Line of Credit | Mexican credit facilities
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 340,000,000		$ 340,000,000
Interest rate	3.83%	3.83%	3.14%	3.14%
Line of Credit | Foreign Line of Credit | Chinese credit facilities
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 173,000,000		$ 212,000,000
Less portion due within one year	$ (57,000,000)		$ (113,000,000)
Interest rate	4.99%	4.99%	4.87%	4.87%
Other Foreign and Domestic Debt
Long-term Debt and Capital Lease Obligations [Abstract]
Long-term debt, before deferred financing fees	$ 954,000,000		$ 967,000,000
Less portion due within one year	$ (229,000,000)		$ (278,000,000)
Interest rate	5.43%	5.43%	6.02%	6.02%

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Financing Arrangements and Derivative Financial Instruments - Notes and Credit Facilities Narrative (Details)	1 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2018 USD ($)	Jun. 30, 2018 EUR (€)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Oct. 16, 2017 EUR (€)
Debt Instrument [Line Items]
Notes payable		$ 3,318,000,000		$ 3,325,000,000
Long-term debt, before deferred financing fees		6,012,000,000		5,468,000,000
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		2,000,000,000.0
Additional borrowing capacity which may be requested		250,000,000
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		800,000,000
Letters of credit outstanding		$ 37,000,000		37,000,000
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Letter of Credit | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.25%
$2.0 Billion First Lien Revolving Credit Facility due 2021 | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 2,000,000,000.0		2,000,000,000.0
Annual commitment fee on undrawn amounts		0.30%
Borrowing base amount below stated amount		$ 361,000,000
Long-term debt, before deferred financing fees		340,000,000		0
Maximum borrowing base increase based on value of certain cash		200,000,000
Second lien term loan facility due 2025 | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Long-term debt, before deferred financing fees		$ 400,000,000		400,000,000
Fee amount to reduce effect rate, percentage of Principal Amount		1.00%	1.00%
Leverage ratio threshold		1.25	1.25
Debt instrument, optional reduction of basis spreads on variable rates	0.25%
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Debt instrument, basis spread on reference rate	1.00%
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Alternative Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Second lien term loan facility due 2025 | Line of Credit | Secured Debt | Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on reference rate	0.50%
European Revolving Credit Facility | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity | €			€ 50,000,000
Letters of credit outstanding		$ 0		0
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity | €			550,000,000
Annual commitment fee on undrawn amounts		0.30%
Amount outstanding				0
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.75%
European Revolving Credit Facility | Line of Credit | Revolving Credit Facility | EURIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.75%
European Revolving Credit Facility | Line of Credit | German Tranche
Debt Instrument [Line Items]
Maximum borrowing capacity | €			125,000,000
Amount outstanding		$ 140,000,000	120,000,000
European Revolving Credit Facility | Line of Credit | All-borrower Tranche
Debt Instrument [Line Items]
Maximum borrowing capacity | €			425,000,000
Amount outstanding		170,000,000	146,000,000
European Revolving Credit Facility | Line of Credit | Swingline Loan
Debt Instrument [Line Items]
Maximum borrowing capacity | €			150,000,000
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity | €						€ 275,000,000
Long-term debt, before deferred financing fees		177,000,000		224,000,000
Current borrowing capacity		177,000,000	152,000,000	224,000,000	€ 187,000,000
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Minimum
Debt Instrument [Line Items]
Maximum borrowing capacity | €			30,000,000
Pan-European Accounts Receivable Facility | Line of Credit | Secured Debt | Maximum
Debt Instrument [Line Items]
Maximum borrowing capacity | €			€ 450,000,000
Accounts Receivable Factoring Facilities | Secured Debt
Debt Instrument [Line Items]
Off-balance sheet receivables sold		513,000,000		572,000,000
Mexican credit facilities | Line of Credit | Foreign Line of Credit
Debt Instrument [Line Items]
Long-term debt, before deferred financing fees		340,000,000		340,000,000
Chinese Credit Facilities | Secured Debt
Debt Instrument [Line Items]
Amount outstanding		173,000,000		212,000,000
Unused availability		123,000,000
Restricted cash related to funds obtained under credit facilities		9,000,000		7,000,000
Chinese Credit Facilities | Line of Credit | Foreign Line of Credit
Debt Instrument [Line Items]
Long-term debt, before deferred financing fees		$ 173,000,000		$ 212,000,000

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Financing Arrangements and Derivative Financial Instruments - Fair Values for Foreign Currency Contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures
Foreign currency derivatives, notional amount	$ 1,928		$ 1,928		$ 1,409
Foreign currency derivatives, net transaction gains (losses)	43	$ (41)	45	$ (45)
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures
Foreign currency derivatives, notional amount	263		263		250
Accounts receivable
Derivative Instruments and Hedging Activities Disclosures
Fair value - asset, not designated as hedging instruments	26		26		3
Fair value - asset, designated as hedging instruments	5		5		1
Other current liabilities
Derivative Instruments and Hedging Activities Disclosures
Fair value - liability, not designated as hedging instruments	(5)		(5)		(9)
Fair value - liability, designated as hedging instruments	(2)		(2)		(8)
Other assets
Derivative Instruments and Hedging Activities Disclosures
Fair value - asset, designated as hedging instruments	2		2		0
Other long term liabilities
Derivative Instruments and Hedging Activities Disclosures
Fair value - liability, designated as hedging instruments	$ 0		$ 0		$ (2)

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Financing Arrangements and Derivative Financial Instruments - Classification of Changes in Fair Values of Foreign Currency Contracts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Arrangements and Derivative Financial Instruments [Abstract]
Amounts deferred to Accumulated Other Comprehensive Loss (AOCL)	$ (14)	$ 13	$ (8)	$ 21
Amount of deferred (gain) loss reclassified from AOCL into CGS	3	(2)	7	(4)
Amounts excluded from effectiveness testing	$ (1)	$ 0	$ (1)	$ (1)

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Fair Value Measurements - Information about Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Assets:
Investments	$ 10	$ 11
Foreign Exchange Contracts	33	4
Total Assets at Fair Value	43	15
Liabilities:
Foreign Exchange Contracts	7	19
Total Liabilities at Fair Value	7	19
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)
Assets:
Investments	10	11
Foreign Exchange Contracts	0	0
Total Assets at Fair Value	10	11
Liabilities:
Foreign Exchange Contracts	0	0
Total Liabilities at Fair Value	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Investments	0	0
Foreign Exchange Contracts	33	4
Total Assets at Fair Value	33	4
Liabilities:
Foreign Exchange Contracts	7	19
Total Liabilities at Fair Value	7	19
Significant Unobservable Inputs (Level 3)
Assets:
Investments	0	0
Foreign Exchange Contracts	0	0
Total Assets at Fair Value	0	0
Liabilities:
Foreign Exchange Contracts	0	0
Total Liabilities at Fair Value	$ 0	$ 0

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Fair Value Measurements - Fair Value of Long-Term Fixed Rate and Variable Rate Debt Excluding Capital Leases (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount — liability	$ 5,973	$ 5,427
Notes payable and overdrafts	335	262
Fixed Rate Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount — liability	3,604	3,616
Fair value — liability	3,541	3,786
Notes payable and overdrafts	184	110
Variable Rate Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount — liability	2,369	1,811
Fair value — liability	2,353	1,811
Notes payable and overdrafts	$ 151	$ 152

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Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long term debt	$ 3,618	$ 3,857

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Pension, Savings and Other Postretirement Benefit Plans - Defined Benefit Pension Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
U.S.
Defined Benefit Plan, Net Periodic Benefit Cost
Service cost	$ 1	$ 1	$ 2	$ 2
Interest cost	39	41	79	81
Expected return on plan assets	(54)	(61)	(109)	(121)
Amortization of net losses	28	28	56	56
Net periodic pension cost	14	9	28	18
Net curtailments/settlements/termination benefits	3	1	3	1
Total defined benefit pension cost	17	10	31	19
Non-U.S.
Defined Benefit Plan, Net Periodic Benefit Cost
Service cost	7	8	14	15
Interest cost	17	18	35	35
Expected return on plan assets	(18)	(20)	(36)	(39)
Amortization of net losses	8	8	15	16
Net periodic pension cost	$ 14	$ 14	$ 28	$ 27

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Pension, Savings and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined contribution savings plan, contribution expense recognized	$ 28	$ 28	$ 57	$ 58
Postretirement benefits expense (credit)	3	$ (1)	6	$ (3)
Non-U.S.
Defined Benefit Plan Disclosure [Line Items]
Contributions to pension plans	8		19
Minimum | Non-U.S.
Defined Benefit Plan Disclosure [Line Items]
Expected contribution to funded pension plans in current year	25		25
Maximum | Non-U.S.
Defined Benefit Plan Disclosure [Line Items]
Expected contribution to funded pension plans in current year	$ 50		$ 50

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Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3	$ 6	$ 5	$ 12
Unearned compensation cost related to the unvested portion of all stock-based awards	$ 39		$ 39
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments granted (shares)			0.8
Weighted average fair value per share granted (dollars per share)			$ 29.46
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments granted (shares)			0.2
Weighted average fair value per share granted (dollars per share)			$ 29.04

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Commitments and Contingent Liabilities - Narrative (Details) € in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) employee claim	Jun. 30, 2018 EUR (€) claim	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)
Loss Contingencies [Line Items]
Environmental matters liability	$ 46		$ 46
Workers' compensation liability	$ 237		243
Period covered by liability	10 years
Off-balance sheet financial guarantees written and other commitments	$ 78		82
Workers' Compensation
Loss Contingencies [Line Items]
Potential workers' compensation liability in excess of recorded amount	30
General Product Liability Member
Loss Contingencies [Line Items]
Potential product liability or claim, including related legal fees	317		316
Asbestos Related Product Liability
Loss Contingencies [Line Items]
Potential product liability or claim, including related legal fees	$ 168		167
Number of asbestos claims settled and dismissed, to date | claim	140,400	140,400
Sum of accrued asbestos-related liability and gross payments to date, including legal costs	$ 537		529
Loss contingency, receivable	$ 116		113
Percentage of asbestos claim related losses recoverable through insurance	70.00%	70.00%
Loss contingency, receivable, current	$ 15		15
Aggregate limits of excess insurance policies			440
Amiens Labor Claims
Loss Contingencies [Line Items]
Wrongful termination or other claims against company	$ 139	€ 119
Amiens Labor Claims | Amiens Restructuring Plan
Loss Contingencies [Line Items]
Loss contingency, number of plaintiffs | employee	850
Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure	$ 44		47
Insurance Claims
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure	33			$ 46
Other Current Liabilities
Loss Contingencies [Line Items]
Environmental matters liability, current	11		10
Other Current Liabilities | General Product Liability Member
Loss Contingencies [Line Items]
Potential product liability or claim, including related legal fees	52		55
Compensation and Benefits
Loss Contingencies [Line Items]
Workers' compensation liability, current	46		$ 45
Accounts receivable | SRI
Loss Contingencies [Line Items]
Indemnification asset	4
Other assets
Loss Contingencies [Line Items]
Indemnification asset	$ 31

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Commitments and Contingent Liabilities - Summary of Asbestos Claims Activity (Details) - Asbestos Related Product Liability $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($) claim	Dec. 31, 2017 USD ($) claim
Number of claims filed
Pending claims, beginning of period	54,300	64,400
New claims filed	900	1,900
Claims settled/dismissed	(5,700)	(12,000)
Pending claims, end of period	49,500	54,300
Payments | $	$ 7	$ 16

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Capital Stock (Details) - USD ($)		3 Months Ended		6 Months Ended		66 Months Ended
	Jul. 14, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Feb. 02, 2017
Class of Stock [Line Items]
Cash dividends paid				$ 67,000,000	$ 50,000,000
Cash dividends declared (dollars per share)		$ 0.14	$ 0.10	$ 0.28	$ 0.2
Payments for repurchase of stock				$ 100,000,000	$ 30,000,000
Common Stock
Class of Stock [Line Items]
Cash dividends paid				$ 67,000,000
Stock repurchase program, authorized amount							$ 2,100,000,000.0
Shares repurchased (shares)		2,976,414		3,851,092		47,820,749
Average price of shares repurchased (dollars per share)		$ 25.20		$ 25.97		$ 29.56
Payments for repurchase of stock		$ 75,000,000		$ 100,000,000		$ 1,413,000,000
Common Stock | Payments for Share Repurchases Related to Employee Stock Based Compensation
Class of Stock [Line Items]
Shares repurchased (shares)				0
Common Stock | Subsequent Event
Class of Stock [Line Items]
Cash dividends declared (dollars per share)	$ 0.14
Cash dividends declared	$ 33,000,000

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Changes in Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			$ 4,850	$ 4,725
Comprehensive income (loss):
Net income	$ 164	$ 154	244	323
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)	(231)	50	(149)	134
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)	26	19	53	39
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)	16	(1)	19	3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)	4	0	4	0
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)	10	(8)	6	(14)
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)	2	(2)	5	(3)
Other Comprehensive Income (Loss)	(173)	58	(62)	159
Comprehensive Income (Loss)	(9)	212	182	482
Adoption of new accounting standards updates (Note 1)					$ (1)	$ 0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			(7)	(5)
Stock-based compensation plans			8	12
Repurchase of common stock			(100)	(30)
Dividends declared			(67)	(50)
Common stock issued from treasury			3	11
Purchase of minority shares			(24)	0
Balance at end of period	4,844	5,145	4,844	5,145
Foreign currency translation, tax	(6)	16	(8)	19
Amortization of prior service cost and unrecognized gains and (losses) included in total benefit cost, tax	8	11	16	21
(Increase)/Decrease in net actuarial losses, tax	5	0	6	1
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, tax	2	0	2	0
Deferred derivative gains (losses), tax	4	(5)	2	(7)
Reclassification adjustment for amounts recognized in income, tax	1	0	2	(1)
Goodyear Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			4,603	4,507
Comprehensive income (loss):
Net income			232	313
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)			(133)	121
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)			53	39
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)			19	3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)			4	0
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)			6	(14)
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)			5	(3)
Other Comprehensive Income (Loss)			(46)	146
Comprehensive Income (Loss)			186	459
Adoption of new accounting standards updates (Note 1)					(1)	0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			0	0
Stock-based compensation plans			8	12
Repurchase of common stock			(100)	(30)
Dividends declared			(67)	(50)
Common stock issued from treasury			3	11
Purchase of minority shares			5	0
Balance at end of period	4,637	4,909	4,637	4,909
Minority Shareholders’ Equity – Nonredeemable
Increase (Decrease) in Stockholders' Equity
Balance at beginning of period			247	218
Comprehensive income (loss):
Net income			12	10
Foreign currency translation, net of tax of ($8) in 2018 ($19 in 2017)			(16)	13
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $16 in 2018 ($21 in 2017)			0	0
(Increase)/Decrease in net actuarial losses, net of tax of $6 in 2018 ($1 in 2017)			0	0
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures, net of tax of $2 in 2018 ($0 in 2017)			0	0
Deferred derivative gains (losses), net of tax of $2 in 2018 (($7) in 2017)			0	0
Reclassification adjustment for amounts recognized in income, net of tax of $2 in 2018 (($1) in 2017)			0	0
Other Comprehensive Income (Loss)			(16)	13
Comprehensive Income (Loss)			(4)	23
Adoption of new accounting standards updates (Note 1)					$ 0	$ 0
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			(7)	(5)
Stock-based compensation plans			0	0
Repurchase of common stock			0	0
Dividends declared			0	0
Common stock issued from treasury			0	0
Purchase of minority shares			(29)	0
Balance at end of period	$ 207	$ 236	$ 207	$ 236

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Reclassifications out of Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Changes in Accumulated Other Comprehensive Loss [Roll Forward]
Balance at beginning of period	$ 4,850	$ 4,725
Balance at end of period	4,844	5,145
Foreign Currency Translation Adjustment
Changes in Accumulated Other Comprehensive Loss [Roll Forward]
Balance at beginning of period	(915)	(1,155)
Other comprehensive income (loss) before reclassifications, net of tax	(133)	121
Amounts reclassified from accumulated other comprehensive loss, net of tax	0	0
Balance at end of period	(1,048)	(1,034)
Unrecognized Net Actuarial Losses and Prior Service Costs
Changes in Accumulated Other Comprehensive Loss [Roll Forward]
Balance at beginning of period	(3,052)	(3,053)
Other comprehensive income (loss) before reclassifications, net of tax	19	3
Amounts reclassified from accumulated other comprehensive loss, net of tax	57	39
Balance at end of period	(2,976)	(3,011)
Deferred Derivative Gains (Losses)
Changes in Accumulated Other Comprehensive Loss [Roll Forward]
Balance at beginning of period	(9)	10
Other comprehensive income (loss) before reclassifications, net of tax	6	(14)
Amounts reclassified from accumulated other comprehensive loss, net of tax	5	(3)
Balance at end of period	2	(7)
Total
Changes in Accumulated Other Comprehensive Loss [Roll Forward]
Balance at beginning of period	(3,976)	(4,198)
Other comprehensive income (loss) before reclassifications, net of tax	(108)	110
Amounts reclassified from accumulated other comprehensive loss, net of tax	62	36
Balance at end of period	$ (4,022)	$ (4,052)

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Reclassifications out of Accumulated Other Comprehensive Loss - Reclassifications out of AOCL (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items]
Other (Income) Expense	$ (45)	$ (16)	$ (82)	$ (24)
Cost of Goods Sold	2,949	2,785	5,925	5,545
Tax expense	19	36	52	106
Goodyear Net Income	(157)	(147)	(232)	(313)
Reclassification Out of Accumulated Other Comprehensive Loss
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items]
Goodyear Net Income	32	17	62	36
Unrecognized Net Actuarial Losses and Prior Service Costs Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items]
Other (Income) Expense	34	30	69	60
Income (loss), before tax	40	30	75	60
Tax expense	(10)	(11)	(18)	(21)
Goodyear Net Income	30	19	57	39
Accumulated Defined Benefit Plans Adjustment, Immediate Recognition of Prior Service and Gain (Loss) Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items]
Other (Income) Expense	6	0	6	0
Deferred Derivative (Gains) Losses Attributable to Parent | Reclassification Out of Accumulated Other Comprehensive Loss
Reclassifications out of Accumulated Other Comprehensive Loss [Line Items]
Cost of Goods Sold	3	(2)	7	(4)
Tax expense	(1)	0	(2)	1
Goodyear Net Income	$ 2	$ (2)	$ 5	$ (3)

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Subsequent Event (Details) - Scenario, Forecast $ in Millions	3 Months Ended
	Sep. 30, 2018 USD ($)
Subsequent Event [Line Items]
Gain (loss) on investments	$ 285
Fair value of equity investment	$ 292

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Consolidating Financial Information - Narrative (Details) - Senior Notes - USD ($)	Jun. 30, 2018	Dec. 31, 2017
8.75% due 2020
Debt Instrument [Line Items]
Debt instrument, face amount	$ 282,000,000
Interest rate, stated percentage	8.75%	8.75%
5.125% due 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,000,000,000
Interest rate, stated percentage	5.125%	5.125%
5% due 2026
Debt Instrument [Line Items]
Debt instrument, face amount	$ 900,000,000
Interest rate, stated percentage	5.00%	5.00%
4.875% due 2027
Debt Instrument [Line Items]
Debt instrument, face amount	$ 700,000,000
Interest rate, stated percentage	4.875%	4.875%

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Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and Cash Equivalents	$ 975		$ 1,043	$ 903
Accounts Receivable, net	2,388	$ 2,028	2,025
Accounts Receivable From Affiliates	0		0
Inventories	2,941		2,787
Prepaid Expenses and Other Current Assets	265	231	224
Total Current Assets	6,569		6,079
Goodwill	576		595
Intangible Assets	138		139
Deferred Income Taxes	2,035	2,009	2,008
Other Assets	804		792
Investments in Subsidiaries	0		0
Property, Plant and Equipment, net	7,233		7,451
Total Assets	17,355		17,064
Current Liabilities:
Accounts Payable — Trade	2,880	2,814	2,807
Accounts Payable to Affiliates	0		0
Compensation and Benefits	511		539
Other Current Liabilities	821	$ 1,033	1,026
Notes Payable and Overdrafts	335		262
Long Term Debt and Capital Leases due Within One Year (Note 8)	286		391
Total Current Liabilities	4,833		5,025
Long Term Debt and Capital Leases	5,726		5,076
Compensation and Benefits	1,369		1,515
Deferred Income Taxes	99		100
Other Long Term Liabilities	484		498
Total Liabilities	12,511		12,214
Commitments and Contingent Liabilities
Goodyear Shareholders’ Equity:
Common Stock	237		240
Other Equity	4,400		4,363
Goodyear Shareholders’ Equity	4,637		4,603
Minority Shareholders’ Equity — Nonredeemable	207		247
Total Shareholders’ Equity	4,844		4,850	$ 5,145	$ 4,725
Total Liabilities and Shareholders’ Equity	17,355		17,064
Reportable Legal Entities | Parent Company
Current Assets:
Cash and Cash Equivalents	135		176
Accounts Receivable, net	658		649
Accounts Receivable From Affiliates	0		0
Inventories	1,522		1,444
Prepaid Expenses and Other Current Assets	79		59
Total Current Assets	2,394		2,328
Goodwill	24		24
Intangible Assets	118		119
Deferred Income Taxes	1,598		1,549
Other Assets	249		221
Investments in Subsidiaries	4,294		4,424
Property, Plant and Equipment, net	2,470		2,491
Total Assets	11,147		11,156
Current Liabilities:
Accounts Payable — Trade	928		927
Accounts Payable to Affiliates	65		325
Compensation and Benefits	281		322
Other Current Liabilities	345		323
Notes Payable and Overdrafts	0		0
Long Term Debt and Capital Leases due Within One Year (Note 8)	59		60
Total Current Liabilities	1,678		1,957
Long Term Debt and Capital Leases	3,886		3,544
Compensation and Benefits	589		682
Deferred Income Taxes	0		0
Other Long Term Liabilities	357		370
Total Liabilities	6,510		6,553
Commitments and Contingent Liabilities
Goodyear Shareholders’ Equity:
Common Stock	237		240
Other Equity	4,400		4,363
Goodyear Shareholders’ Equity	4,637		4,603
Minority Shareholders’ Equity — Nonredeemable	0		0
Total Shareholders’ Equity	4,637		4,603
Total Liabilities and Shareholders’ Equity	11,147		11,156
Reportable Legal Entities | Guarantor Subsidiaries
Current Assets:
Cash and Cash Equivalents	49		32
Accounts Receivable, net	146		116
Accounts Receivable From Affiliates	198		254
Inventories	63		43
Prepaid Expenses and Other Current Assets	2		3
Total Current Assets	458		448
Goodwill	1		1
Intangible Assets	0		0
Deferred Income Taxes	31		35
Other Assets	49		51
Investments in Subsidiaries	517		503
Property, Plant and Equipment, net	427		420
Total Assets	1,483		1,458
Current Liabilities:
Accounts Payable — Trade	119		115
Accounts Payable to Affiliates	0		0
Compensation and Benefits	14		15
Other Current Liabilities	(9)		2
Notes Payable and Overdrafts	0		0
Long Term Debt and Capital Leases due Within One Year (Note 8)	0		0
Total Current Liabilities	124		132
Long Term Debt and Capital Leases	167		152
Compensation and Benefits	97		109
Deferred Income Taxes	0		1
Other Long Term Liabilities	9		8
Total Liabilities	397		402
Commitments and Contingent Liabilities
Goodyear Shareholders’ Equity:
Common Stock	0		0
Other Equity	1,086		1,056
Goodyear Shareholders’ Equity	1,086		1,056
Minority Shareholders’ Equity — Nonredeemable	0		0
Total Shareholders’ Equity	1,086		1,056
Total Liabilities and Shareholders’ Equity	1,483		1,458
Reportable Legal Entities | Non-Guarantor Subsidiaries
Current Assets:
Cash and Cash Equivalents	791		835
Accounts Receivable, net	1,584		1,260
Accounts Receivable From Affiliates	0		71
Inventories	1,375		1,329
Prepaid Expenses and Other Current Assets	181		157
Total Current Assets	3,931		3,652
Goodwill	426		444
Intangible Assets	20		20
Deferred Income Taxes	402		424
Other Assets	506		518
Investments in Subsidiaries	0		0
Property, Plant and Equipment, net	4,363		4,569
Total Assets	9,648		9,627
Current Liabilities:
Accounts Payable — Trade	1,833		1,765
Accounts Payable to Affiliates	133		0
Compensation and Benefits	216		202
Other Current Liabilities	485		701
Notes Payable and Overdrafts	335		262
Long Term Debt and Capital Leases due Within One Year (Note 8)	227		331
Total Current Liabilities	3,229		3,261
Long Term Debt and Capital Leases	1,673		1,380
Compensation and Benefits	683		724
Deferred Income Taxes	99		99
Other Long Term Liabilities	118		120
Total Liabilities	5,802		5,584
Commitments and Contingent Liabilities
Goodyear Shareholders’ Equity:
Common Stock	0		0
Other Equity	3,639		3,796
Goodyear Shareholders’ Equity	3,639		3,796
Minority Shareholders’ Equity — Nonredeemable	207		247
Total Shareholders’ Equity	3,846		4,043
Total Liabilities and Shareholders’ Equity	9,648		9,627
Consolidating Entries and Eliminations
Current Assets:
Cash and Cash Equivalents	0		0
Accounts Receivable, net	0		0
Accounts Receivable From Affiliates	(198)		(325)
Inventories	(19)		(29)
Prepaid Expenses and Other Current Assets	3		5
Total Current Assets	(214)		(349)
Goodwill	125		126
Intangible Assets	0		0
Deferred Income Taxes	4		0
Other Assets	0		2
Investments in Subsidiaries	(4,811)		(4,927)
Property, Plant and Equipment, net	(27)		(29)
Total Assets	(4,923)		(5,177)
Current Liabilities:
Accounts Payable — Trade	0		0
Accounts Payable to Affiliates	(198)		(325)
Compensation and Benefits	0		0
Other Current Liabilities	0		0
Notes Payable and Overdrafts	0		0
Long Term Debt and Capital Leases due Within One Year (Note 8)	0		0
Total Current Liabilities	(198)		(325)
Long Term Debt and Capital Leases	0		0
Compensation and Benefits	0		0
Deferred Income Taxes	0		0
Other Long Term Liabilities	0		0
Total Liabilities	(198)		(325)
Commitments and Contingent Liabilities
Goodyear Shareholders’ Equity:
Common Stock	0		0
Other Equity	(4,725)		(4,852)
Goodyear Shareholders’ Equity	(4,725)		(4,852)
Minority Shareholders’ Equity — Nonredeemable	0		0
Total Shareholders’ Equity	(4,725)		(4,852)
Total Liabilities and Shareholders’ Equity	$ (4,923)		$ (5,177)

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Consolidating Financial Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Net Sales	$ 3,841	$ 3,686	$ 7,671	$ 7,385
Cost of Goods Sold	2,949	2,785	5,925	5,545
Consolidating Statements of Operations
Selling, Administrative and General Expense	588	579	1,179	1,155
Rationalizations	(2)	27	35	56
Interest Expense	78	89	154	176
Other (Income) Expense	45	16	82	24
Income before Income Taxes	183	190	296	429
United States and Foreign Taxes	19	36	52	106
Equity in Earnings of Subsidiaries	0	0	0	0
Net Income (Loss)	164	154	244	323
Less: Minority Shareholders’ Net Income	7	7	12	10
Goodyear Net Income	157	147	232	313
Comprehensive Income (Loss)	(9)	212	182	482
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	(11)	14	(4)	23
Goodyear Comprehensive Income	2	198	186	459
Reportable Legal Entities | Parent Company
Condensed Financial Statements, Captions [Line Items]
Net Sales	1,834	1,863	3,518	3,630
Cost of Goods Sold	1,464	1,459	2,829	2,837
Consolidating Statements of Operations
Selling, Administrative and General Expense	258	247	517	506
Rationalizations	(1)	1	5	2
Interest Expense	56	69	110	134
Other (Income) Expense	14	4	24	(13)
Income before Income Taxes	43	83	33	164
United States and Foreign Taxes	(37)	17	(40)	60
Equity in Earnings of Subsidiaries	77	81	159	209
Net Income (Loss)	157	147	232	313
Less: Minority Shareholders’ Net Income	0	0	0	0
Goodyear Net Income	157	147	232	313
Comprehensive Income (Loss)	2	198	186	459
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	0	0	0	0
Goodyear Comprehensive Income	2	198	186	459
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net Sales	329	290	638	589
Cost of Goods Sold	335	284	608	557
Consolidating Statements of Operations
Selling, Administrative and General Expense	8	9	18	17
Rationalizations	0	0	0	0
Interest Expense	5	2	10	4
Other (Income) Expense	3	2	10	6
Income before Income Taxes	(22)	(7)	(8)	5
United States and Foreign Taxes	(5)	(3)	(2)	0
Equity in Earnings of Subsidiaries	12	16	34	31
Net Income (Loss)	(5)	12	28	36
Less: Minority Shareholders’ Net Income	0	0	0	0
Goodyear Net Income	(5)	12	28	36
Comprehensive Income (Loss)	(25)	13	30	41
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	0	0	0	0
Goodyear Comprehensive Income	(25)	13	30	41
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net Sales	2,406	2,316	4,863	4,618
Cost of Goods Sold	1,899	1,840	3,877	3,634
Consolidating Statements of Operations
Selling, Administrative and General Expense	322	322	644	632
Rationalizations	(1)	26	30	54
Interest Expense	22	31	45	62
Other (Income) Expense	8	(15)	8	(15)
Income before Income Taxes	156	112	259	251
United States and Foreign Taxes	62	20	92	49
Equity in Earnings of Subsidiaries	0	0	0	0
Net Income (Loss)	94	92	167	202
Less: Minority Shareholders’ Net Income	7	7	12	10
Goodyear Net Income	87	85	155	192
Comprehensive Income (Loss)	(123)	146	32	340
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	(11)	14	(4)	23
Goodyear Comprehensive Income	(112)	132	36	317
Consolidating Entries and Eliminations
Condensed Financial Statements, Captions [Line Items]
Net Sales	(728)	(783)	(1,348)	(1,452)
Cost of Goods Sold	(749)	(798)	(1,389)	(1,483)
Consolidating Statements of Operations
Selling, Administrative and General Expense	0	1	0	0
Rationalizations	0	0	0	0
Interest Expense	(5)	(13)	(11)	(24)
Other (Income) Expense	20	25	40	46
Income before Income Taxes	6	2	12	9
United States and Foreign Taxes	(1)	2	2	(3)
Equity in Earnings of Subsidiaries	(89)	(97)	(193)	(240)
Net Income (Loss)	(82)	(97)	(183)	(228)
Less: Minority Shareholders’ Net Income	0	0	0	0
Goodyear Net Income	(82)	(97)	(183)	(228)
Comprehensive Income (Loss)	137	(145)	(66)	(358)
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	0	0	0	0
Goodyear Comprehensive Income	$ 137	$ (145)	$ (66)	$ (358)

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Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$ (84)	$ (185)
Cash Flows from Investing Activities:
Capital Expenditures	(442)	(497)
Asset Dispositions	2	2
Short Term Securities Acquired	(30)	(43)
Short Term Securities Redeemed	38	43
Capital Contributions and Loans Incurred	0	0
Capital Redemptions and Loans Paid	0	0
Other Transactions	(38)	(3)
Total Cash Flows from Investing Activities	(470)	(498)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	1,012	290
Short Term Debt and Overdrafts Paid	(920)	(303)
Long Term Debt Incurred	3,544	3,456
Long Term Debt Paid	(2,933)	(2,905)
Common Stock Issued	3	11
Common Stock Repurchased	(100)	(30)
Common Stock Dividends Paid	(67)	(50)
Capital Contributions and Loans Incurred	0	0
Capital Redemptions and Loans Paid	0	0
Intercompany Dividends Paid	0	0
Transactions with Minority Interests in Subsidiaries	(26)	(5)
Debt Related Costs and Other Transactions	6	(38)
Total Cash Flows from Financing Activities	519	426
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(25)	37
Net Change in Cash, Cash Equivalents and Restricted Cash	(60)	(220)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	1,110	1,189
Cash, Cash Equivalents and Restricted Cash at End of the Period	1,050	969
Reportable Legal Entities | Parent Company
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	457	(49)
Cash Flows from Investing Activities:
Capital Expenditures	(180)	(190)
Asset Dispositions	0	1
Short Term Securities Acquired	0	0
Short Term Securities Redeemed	0	0
Capital Contributions and Loans Incurred	(306)	(62)
Capital Redemptions and Loans Paid	69	0
Other Transactions	(38)	0
Total Cash Flows from Investing Activities	(455)	(251)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	575	40
Short Term Debt and Overdrafts Paid	(575)	(40)
Long Term Debt Incurred	1,605	2,090
Long Term Debt Paid	(1,267)	(1,759)
Common Stock Issued	3	11
Common Stock Repurchased	(100)	(30)
Common Stock Dividends Paid	(67)	(50)
Capital Contributions and Loans Incurred	213	30
Capital Redemptions and Loans Paid	(430)	(61)
Intercompany Dividends Paid	0	0
Transactions with Minority Interests in Subsidiaries	0	0
Debt Related Costs and Other Transactions	7	(26)
Total Cash Flows from Financing Activities	(36)	205
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	0	0
Net Change in Cash, Cash Equivalents and Restricted Cash	(34)	(95)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	201	210
Cash, Cash Equivalents and Restricted Cash at End of the Period	167	115
Reportable Legal Entities | Guarantor Subsidiaries
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	(9)	(30)
Cash Flows from Investing Activities:
Capital Expenditures	(41)	(86)
Asset Dispositions	2	0
Short Term Securities Acquired	0	0
Short Term Securities Redeemed	0	0
Capital Contributions and Loans Incurred	0	0
Capital Redemptions and Loans Paid	0	0
Other Transactions	0	0
Total Cash Flows from Investing Activities	(39)	(86)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	0	0
Short Term Debt and Overdrafts Paid	0	0
Long Term Debt Incurred	15	52
Long Term Debt Paid	0	0
Common Stock Issued	0	0
Common Stock Repurchased	0	0
Common Stock Dividends Paid	0	0
Capital Contributions and Loans Incurred	52	62
Capital Redemptions and Loans Paid	0	0
Intercompany Dividends Paid	0	0
Transactions with Minority Interests in Subsidiaries	0	0
Debt Related Costs and Other Transactions	0	0
Total Cash Flows from Financing Activities	67	114
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(2)	2
Net Change in Cash, Cash Equivalents and Restricted Cash	17	0
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	32	55
Cash, Cash Equivalents and Restricted Cash at End of the Period	49	55
Reportable Legal Entities | Non-Guarantor Subsidiaries
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	(336)	(90)
Cash Flows from Investing Activities:
Capital Expenditures	(220)	(224)
Asset Dispositions	0	1
Short Term Securities Acquired	(30)	(43)
Short Term Securities Redeemed	38	43
Capital Contributions and Loans Incurred	(213)	(30)
Capital Redemptions and Loans Paid	430	61
Other Transactions	0	(3)
Total Cash Flows from Investing Activities	5	(195)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	437	250
Short Term Debt and Overdrafts Paid	(345)	(263)
Long Term Debt Incurred	1,924	1,314
Long Term Debt Paid	(1,666)	(1,146)
Common Stock Issued	0	0
Common Stock Repurchased	0	0
Common Stock Dividends Paid	0	0
Capital Contributions and Loans Incurred	254	0
Capital Redemptions and Loans Paid	(69)	0
Intercompany Dividends Paid	(197)	(13)
Transactions with Minority Interests in Subsidiaries	(26)	(5)
Debt Related Costs and Other Transactions	(1)	(12)
Total Cash Flows from Financing Activities	311	125
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	(23)	35
Net Change in Cash, Cash Equivalents and Restricted Cash	(43)	(125)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	877	924
Cash, Cash Equivalents and Restricted Cash at End of the Period	834	799
Consolidating Entries and Eliminations
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	(196)	(16)
Cash Flows from Investing Activities:
Capital Expenditures	(1)	3
Asset Dispositions	0	0
Short Term Securities Acquired	0	0
Short Term Securities Redeemed	0	0
Capital Contributions and Loans Incurred	519	92
Capital Redemptions and Loans Paid	(499)	(61)
Other Transactions	0	0
Total Cash Flows from Investing Activities	19	34
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	0	0
Short Term Debt and Overdrafts Paid	0	0
Long Term Debt Incurred	0	0
Long Term Debt Paid	0	0
Common Stock Issued	0	0
Common Stock Repurchased	0	0
Common Stock Dividends Paid	0	0
Capital Contributions and Loans Incurred	(519)	(92)
Capital Redemptions and Loans Paid	499	61
Intercompany Dividends Paid	197	13
Transactions with Minority Interests in Subsidiaries	0	0
Debt Related Costs and Other Transactions	0	0
Total Cash Flows from Financing Activities	177	(18)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	0	0
Net Change in Cash, Cash Equivalents and Restricted Cash	0	0
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period	0	0
Cash, Cash Equivalents and Restricted Cash at End of the Period	$ 0	$ 0