Net Sales

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Net Sales

NOTE 2. NET SALES

The following tables show disaggregated net sales from contracts with customers by major source:

	Three Months Ended March 31, 2023
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	2,386	$	1,328	$	549	$	4,263
Other tire and related sales		177		139		21		337
Retail services and service related sales		160		25		10		195
Chemical sales		140		—		—		140
Other		4		—		2		6
Net Sales by reportable segment	$	2,867	$	1,492	$	582	$	4,941

	Three Months Ended March 31, 2022
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	2,433	$	1,275	$	533	$	4,241
Other tire and related sales		171		117		22		310
Retail services and service related sales		140		34		11		185
Chemical sales		165		—		—		165
Other		6		—		1		7
Net Sales by reportable segment	$	2,915	$	1,426	$	567	$	4,908

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 and motorcycle 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 exclude intercompany sales. Other sales include items such as franchise fees and ancillary tire parts.

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 in the Consolidated Balance Sheets totaled $18 million and $19 million at March 31, 2023 and December 31, 2022, respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $14 million and $15 million at March 31, 2023 and December 31, 2022, respectively. 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 three months ended March 31, 2023:

(In millions)
Balance at December 31, 2022	$	34
Revenue deferred during period		44
Revenue recognized during period		(46	)
Impact of foreign currency translation		—
Balance at March 31, 2023	$	32