Consolidating Financial Information

12 Months Ended

Dec. 31, 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 or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and

(v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis.

Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of 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
	December 31, 2018
(In millions)	Parent Company		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	127	$	30		$	644	$	—		$	801
Accounts Receivable	672		110			1,248		—			2,030
Accounts Receivable From Affiliates	294		280			—		(574		)	—
Inventories	1,425		71			1,387		(27		)	2,856
Prepaid Expenses and Other Current Assets	76		3			155		4			238
Total Current Assets	2,594		494			3,434		(597		)	5,925
Goodwill	24		1			420		124			569
Intangible Assets	117		—			19		—			136
Deferred Income Taxes	1,422		27			395		3			1,847
Other Assets	524		48			564		—			1,136
Investments in Subsidiaries	3,758		445			—		(4,203		)	—
Property, Plant and Equipment	2,482		430			4,371		(24		)	7,259
Total Assets	$	10,921	$	1,445		$	9,203	$	(4,697	)	$	16,872
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	960	$	131		$	1,829	$	—		$	2,920
Accounts Payable to Affiliates	—		—			574		(574		)	—
Compensation and Benefits	286		14			171		—			471
Other Current Liabilities	310		(4		)	431		—			737
Notes Payable and Overdrafts	25		—			385		—			410
Long Term Debt and Capital Leases Due Within One Year	2		—			241		—			243
Total Current Liabilities	1,583		141			3,631		(574		)	4,781
Long Term Debt and Capital Leases	3,550		167			1,393		—			5,110
Compensation and Benefits	569		93			683		—			1,345
Deferred Income Taxes	—		—			95		—			95
Other Long Term Liabilities	355		8			108		—			471
Total Liabilities	6,057		409			5,910		(574		)	11,802
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	232		—			—		—			232
Other Equity	4,632		1,036			3,087		(4,123		)	4,632
Goodyear Shareholders’ Equity	4,864		1,036			3,087		(4,123		)	4,864
Minority Shareholders’ Equity — Nonredeemable	—		—			206		—			206
Total Shareholders’ Equity	4,864		1,036			3,293		(4,123		)	5,070
Total Liabilities and Shareholders’ Equity	$	10,921	$	1,445		$	9,203	$	(4,697	)	$	16,872

	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	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	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
	Year Ended December 31, 2018
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,382		$	1,320		$	9,567		$	(2,794	)	$	15,475
Cost of Goods Sold	5,947			1,270			7,616			(2,872		)	11,961
Selling, Administrative and General Expense	1,042			35			1,235			—			2,312
Rationalizations	3			1			40			—			44
Interest Expense	221			23			105			(28		)	321
Other (Income) Expense	(320		)	12			30			104			(174		)
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	489			(21		)	541			2			1,011
United States and Foreign Tax (Benefit) Expense	129			(6		)	179			1			303
Equity in Earnings (Loss) of Subsidiaries	333			47			—			(380		)	—
Net Income (Loss)	693			32			362			(379		)	708
Less: Minority Shareholders’ Net Income	—			—			15			—			15
Goodyear Net Income (Loss)	$	693		$	32		$	347		$	(379	)	$	693
Comprehensive Income (Loss)	$	593		$	28		$	143		$	(175	)	$	589
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			(4		)	—			(4		)
Goodyear Comprehensive Income (Loss)	$	593		$	28		$	147		$	(175	)	$	593

	Consolidating Statements of Operations
	Year Ended December 31, 2017
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,378		$	1,186		$	9,499		$	(2,686	)	$	15,377
Cost of Goods Sold	5,774			1,125			7,537			(2,756		)	11,680
Selling, Administrative and General Expense	980			34			1,265			—			2,279
Rationalizations	20			1			114			—			135
Interest Expense	254			10			122			(51		)	335
Other (Income) Expense	(60		)	12			(12		)	130			70
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	410			4			473			(9		)	878
United States and Foreign Tax (Benefit) Expense	417			(2		)	101			(3		)	513
Equity in Earnings (Loss) of Subsidiaries	353			39			—			(392		)	—
Net Income (Loss)	346			45			372			(398		)	365
Less: Minority Shareholders’ Net Income	—			—			19			—			19
Goodyear Net Income (Loss)	$	346		$	45		$	353		$	(398	)	$	346
Comprehensive Income (Loss)	$	568		$	62		$	656		$	(683	)	$	603
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			35			—			35
Goodyear Comprehensive Income (Loss)	$	568		$	62		$	621		$	(683	)	$	568

	Consolidating Statements of Operations
	Year Ended December 31, 2016
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,418		$	1,265		$	9,121		$	(2,646	)	$	15,158
Cost of Goods Sold	5,476			1,212			6,962			(2,715		)	10,935
Selling, Administrative and General Expense	1,079			37			1,294			(1		)	2,409
Rationalizations	20			—			190			—			210
Interest Expense	276			12			129			(45		)	372
Other (Income) Expense	(35		)	8			(35		)	87			25
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	602			(4		)	581			28			1,207
United States and Foreign Tax (Benefit) Expense	104			(7		)	(180		)	6			(77		)
Equity in Earnings (Loss) of Subsidiaries	766			122			—			(888		)	—
Net Income (Loss)	1,264			125			761			(866		)	1,284
Less: Minority Shareholders’ Net Income	—			—			20			—			20
Goodyear Net Income (Loss)	$	1,264		$	125		$	741		$	(866	)	$	1,264
Comprehensive Income (Loss)	$	1,076		$	55		$	585		$	(632	)	$	1,084
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			8			—			8
Goodyear Comprehensive Income (Loss)	$	1,076		$	55		$	577		$	(632	)	$	1,076

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 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	$	1,771		$	32		$	(279	)	$	(608	)	$	916
Cash Flows from Investing Activities:
Capital Expenditures	(307		)	(61		)	(443		)	—			(811		)
Asset Dispositions	—			2			—			—			2
Short Term Securities Acquired	—			—			(68		)	—			(68		)
Short Term Securities Redeemed	—			—			68			—			68
Capital Contributions Received and Loans Incurred	(1,205		)	—			(283		)	1,488			—
Capital Redemptions and Loans Paid	282			88			430			(800		)	—
Notes Receivable	(55		)	—			—			—			(55		)
Other Transactions	1			—			(4		)	—			(3		)
Total Cash Flows from Investing Activities	(1,284		)	29			(300		)	688			(867		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	965			—			979			—			1,944
Short Term Debt and Overdrafts Paid	(940		)	—			(855		)	—			(1,795		)
Long Term Debt Incurred	3,200			15			3,240			—			6,455
Long Term Debt Paid	(3,260		)	—			(3,209		)	—			(6,469		)
Common Stock Issued	4			—			—			—			4
Common Stock Repurchased	(220		)	—			—			—			(220		)
Common Stock Dividends Paid	(138		)	—			—			—			(138		)
Capital Contributions Received and Loans Incurred	283			67			1,138			(1,488		)	—
Capital Redemptions and Loans Paid	(430		)	(77		)	(293		)	800			—
Intercompany Dividends Paid	—			(65		)	(543		)	608			—
Transactions with Minority Interests in Subsidiaries	—			—			(31		)	—			(31		)
Debt Related Costs and Other Transactions	16			—			(9		)	—			7
Total Cash Flows from Financing Activities	(520		)	(60		)	417			(80		)	(243		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			(3		)	(40		)	—			(43		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(33		)	(2		)	(202		)	—			(237		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	201			32			877			—			1,110
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	168		$	30		$	675		$	—		$	873

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 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	$	1,192		$	67		$	577		$	(678	)	$	1,158
Cash Flows from Investing Activities:
Capital Expenditures	(305		)	(136		)	(442		)	2			(881		)
Asset Dispositions	1			1			10			—			12
Short Term Securities Acquired	—			—			(83		)	—			(83		)
Short Term Securities Redeemed	—			—			83			—			83
Capital Contributions Received and Loans Incurred	(79		)	—			(292		)	371			—
Capital Redemptions and Loans Paid	76			—			563			(639		)	—
Other Transactions	(3		)	—			(7		)	—			(10		)
Total Cash Flows from Investing Activities	(310		)	(135		)	(168		)	(266		)	(879		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	420			—			634			—			1,054
Short Term Debt and Overdrafts Paid	(420		)	—			(626		)	—			(1,046		)
Long Term Debt Incurred	3,062			204			3,197			—			6,463
Long Term Debt Paid	(3,151		)	(52		)	(3,139		)	—			(6,342		)
Common Stock Issued	14			—			—			—			14
Common Stock Repurchased	(400		)	—			—			—			(400		)
Common Stock Dividends Paid	(110		)	—			—			—			(110		)
Capital Contributions Received and Loans Incurred	292			66			13			(371		)	—
Capital Redemptions and Loans Paid	(563		)	(48		)	(28		)	639			—
Intercompany Dividends Paid	—			(128		)	(548		)	676			—
Transactions with Minority Interests in Subsidiaries	—			—			(7		)	—			(7		)
Debt Related Costs and Other Transactions	(35		)	—			(6		)	—			(41		)
Total Cash Flows from Financing Activities	(891		)	42			(510		)	944			(415		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			3			54			—			57
Net Change in Cash, Cash Equivalents and Restricted Cash	(9		)	(23		)	(47		)	—			(79		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	210			55			924			—			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	201		$	32		$	877		$	—		$	1,110

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 2016
(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	$	609		$	135		$	885		$	(72	)	$	1,557
Cash Flows from Investing Activities:
Capital Expenditures	(370		)	(107		)	(525		)	6			(996		)
Asset Dispositions	11			—			24			—			35
Short Term Securities Acquired	—			—			(72		)	—			(72		)
Short Term Securities Redeemed	—			—			60			—			60
Capital Contributions Received and Loans Incurred	(257		)	—			(576		)	833			—
Capital Redemptions and Loans Paid	163			—			148			(311		)	—
Other Transactions	—			—			(6		)	—			(6		)
Total Cash Flows from Investing Activities	(453		)	(107		)	(947		)	528			(979		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	—			—			417			—			417
Short Term Debt and Overdrafts Paid	—			—			(228		)	—			(228		)
Long Term Debt Incurred	2,896			—			2,092			—			4,988
Long Term Debt Paid	(3,016		)	—			(2,417		)	—			(5,433		)
Common Stock Issued	13			—			—			—			13
Common Stock Repurchased	(500		)	—			—			—			(500		)
Common Stock Dividends Paid	(82		)	—			—			—			(82		)
Capital Contributions Received and Loans Incurred	576			59			198			(833		)	—
Capital Redemptions and Loans Paid	(148		)	(80		)	(83		)	311			—
Intercompany Dividends Paid	—			(19		)	(47		)	66			—
Transactions with Minority Interests in Subsidiaries	—			—			(11		)	—			(11		)
Debt Related Costs and Other Transactions	(46		)	—			6			—			(40		)
Total Cash Flows from Financing Activities	(307		)	(40		)	(73		)	(456		)	(876		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			—			(15		)	—			(15		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(151		)	(12		)	(150		)	—			(313		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	361			67			1,074			—			1,502
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	210		$	55		$	924		$	—		$	1,189