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Costs Associated with Rationalization Programs
 12 Months Ended
Dec. 31, 2019
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 presents the roll-forward of the liability balance between periods:
(In millions)
Associate-Related Costs
 
Other Costs
 
Total
Balance at December 31, 2016
$
214

 
$
5

 
$
219

2017 charges(1)
103

 
32

 
135

Incurred, net of foreign currency translation of $25 million and $1 million, respectively
(94
)
 
(34
)
 
(128
)
Reversed to the Statement of Operations
(13
)
 
—

 
(13
)
Balance at December 31, 2017
$
210

 
$
3

 
$
213

2018 charges(1)
47

 
17

 
64

Incurred, net of foreign currency translation of $(3) million and $0 million, respectively
(158
)
 
(19
)
 
(177
)
Reversed to the Statement of Operations
(19
)
 
—

 
(19
)
Balance at December 31, 2018
$
80

 
$
1

 
$
81

2019 charges(1)
185

 
19

 
204

Incurred, net of foreign currency translation of $(2) million and $0 million, respectively
(41
)
 
(20
)
 
(61
)
Reversed to the Statement of Operations
(4
)
 
—

 
(4
)
Balance at December 31, 2019
$
220

 
$
—

 
$
220


(1)
Charges of $204 million, $64 million and $135 million in 2019, 2018 and 2017, respectively, exclude $5 million, $(1) million and $13 million, respectively, of benefit plan curtailments and settlements recorded in Rationalizations in the Statement of Operations.
On March 18, 2019, we approved a plan to modernize two of our tire manufacturing facilities in Germany. The plan is in furtherance of our strategy to strengthen the competitiveness of our manufacturing footprint and increase production of premium, large-rim diameter consumer tires. The plan will result in approximately 1,100 job reductions as a result of changes to the layout of the plants, efficiency gains from new equipment and a reduction in the production of tires for declining, less profitable market segments. We have $100 million accrued related to this plan at December 31, 2019, which is expected to be substantially paid through 2022.
On September 16, 2019, we approved a plan primarily to offer voluntary buy-outs to certain associates at our Gadsden, Alabama manufacturing facility, as part of our strategy to strengthen the competitiveness of our manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. Approximately 740 eligible associates submitted buy-out applications between October 1 and November 1, 2019, which have been accepted by us. We have $69 million accrued related to this plan at December 31, 2019, which is expected to be substantially paid in 2020.
The remainder of the accrual balance at December 31, 2019 is expected to be substantially utilized in the next 12 months and includes $24 million related to plans to reduce manufacturing headcount and improve operating efficiency in Europe, Middle East and Africa ("EMEA"), $16 million related to global plans to reduce SAG headcount and $7 million related to a plan to reduce manufacturing headcount and improve operating efficiency in Americas.
The following table shows net rationalization charges included in Income before Income Taxes:
(In millions)
 
2019
 
2018
 
2017
Current Year Plans
 
 
 
 
 
 
Associate severance and other related costs
 
$
183

 
$
40

 
$
81

Benefit plan curtailment and special termination benefits
 
5

 
—

 
—

Other exit and non-cancelable lease costs
 
11

 
—

 
2

    Current Year Plans - Net Charges
 
$
199

 
$
40

 
$
83

 
 
 
 
 
 
 
Prior Year Plans
 
 
 
 
 
 
Associate severance and other related costs
 
$
(2
)
 
$
(11
)
 
$
9

Benefit plan curtailment and special termination benefits
 
—

 
(1
)
 
13

Other exit and non-cancelable lease costs

 
8

 
16

 
30

    Prior Year Plans - Net Charges
 
6

 
4

 
52

        Total Net Charges
 
$
205

 
$
44

 
$
135

Asset write-off and accelerated depreciation charges
 
$
15

 
$
4

 
$
40


Substantially all of the new charges in 2019 related to future cash outflows. Current year plan charges recognized in the year ended December 31, 2019 include $105 million related to the plan to modernize two of our manufacturing facilities in Germany, $76 million related to the Gadsden, Alabama plan, and $18 million related to separate plans to reduce manufacturing headcount and improve operating efficiency in Americas and EMEA.
Prior year plan charges recognized in the year ended December 31, 2019 include $10 million primarily related to EMEA manufacturing plans. Prior year plan charges for the year ended December 31, 2019 also include reversals of $4 million for actions no longer needed for their originally intended purposes.
Ongoing rationalization plans had approximately $930 million in charges through 2019 and approximately $50 million is expected to be incurred in future periods.
Approximately 2,100 associates will be released under new plans initiated in 2019, of which approximately 800 were released through December 31, 2019. In 2019, approximately 400 associates were released under plans initiated in prior years. Approximately 1,450 associates remain to be released under all ongoing rationalization plans.
At December 31, 2019, 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. 19, Commitments and Contingent Liabilities, in this Form 10-K.
Asset write-off and accelerated depreciation charges in 2019 primarily related to the curtailment of production at our Gadsden, Alabama manufacturing facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS.
Rationalization activities initiated in 2018 include current year charges of $28 million related to a global plan to reduce SAG headcount and $13 million related to plans to reduce manufacturing headcount and improve operating efficiency in EMEA. Current year plan charges for the year ended December 31, 2018 also include reversals of $1 million for actions no longer needed for their originally intended purposes. Prior year plan charges recognized in the year ended December 31, 2018 include charges of $15 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $3 million related to a plan to reduce manufacturing headcount in EMEA, and $3 million related to a global plan to reduce SAG headcount. Prior year plan charges for the year ended December 31, 2018 also include reversals of $18 million for actions no longer needed for their originally intended purposes.
Rationalization activities initiated in 2017 include current year charges of $30 million related to reductions in manufacturing headcount in EMEA, $25 million related to a global plan to reduce SAG headcount, $20 million related to SAG headcount reductions in EMEA, and $8 million related to a plan to improve operating efficiency in EMEA. Current year plan charges for the year ended December 31, 2017 also include reversals of $1 million for actions no longer needed for their originally intended purposes. Prior year plan charges recognized in the year ended December 31, 2017 include charges of $35 million related to the closure of our tire manufacturing facility in Philippsburg, Germany, $16 million related to manufacturing headcount reductions in EMEA, and $12 million related to a global plan to reduce SAG headcount. Prior year plan charges for the year ended December 31, 2017 also include reversals of $12 million for actions no longer needed for their originally intended purposes.
Asset write-off and accelerated depreciation charges in 2017 and 2018 primarily related to the closure of our tire manufacturing facility in Philippsburg, Germany.