Cooper Tire Acquisition (Tables) - Cooper Tire

3 Months Ended

Mar. 31, 2022

Business Acquisition [Line Items]

Calculation of Merger Consideration

The following table sets forth cumulative measurement period changes since the Closing Date, as well as the updated and initial preliminary allocation of the Merger Consideration to the estimated fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of Cooper Tire, with the excess recorded to Goodwill as of the Closing Date:

(In millions)	Updated Purchase Price Allocation		Cumulative Measurement Period Changes			Initial Purchase Price Allocation
Cash and Cash Equivalents	$	231	$	—		$	231
Accounts Receivable		540		(81	)		621
Inventories		695		2			693
Property, Plant and Equipment		1,348		(24	)		1,372
Goodwill		625		150			475
Intangible Assets		926		(160	)		1,086
Other Assets		357		(5	)		362
		4,722		(118	)		4,840
Accounts Payable — Trade		381		(83	)		464
Compensation and Benefits		356		(30	)		386
Debt, Finance Leases and Notes Payable and Overdrafts		151		—			151
Deferred Tax Liabilities, net		290		(57	)		347
Other Liabilities		426		52			374
Minority Equity		21		—			21
		1,625		(118	)		1,743
Merger Consideration	$	3,097	$	—		$	3,097

Schedule of Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed

The estimated fair values of the identifiable intangible assets acquired, their weighted average estimated useful lives and the related valuation methodology are as follows:

(In millions, except years)	Updated Fair Value		Cumulative Measurement Period Changes			Initial Fair Value		Weighted Average Useful Lives	Valuation Methodology
Trade names (indefinite-lived)	$	560	$	250		$	310	N/A	Relief-from-royalty
Trade names (definite-lived)		10		(30	)		40	14 years	Relief-from-royalty
Customer relationships		350		(380	)		730	12 years	Multi-period excess earnings
Non-compete and other		6		—			6	2 years	Discounted cash flow
	$	926	$	(160	)	$	1,086

Schedule of Pro Forma Financial Information

The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of Cooper Tire occurred on January 1, 2020, nor are they indicative of future consolidated operating results.

(In millions)	Three Months Ended March 31, 2021
Net Sales	$	4,181
Income before Income Taxes		100
Goodyear Net Income		63