In order to improve our global competitiveness, we have implemented, and are implementing, rationalization actions to reduce high-cost and excess manufacturing capacity and operating and administrative costs, as well as actions related to the integration of Cooper Tire.

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, 2020	$	200		$	—		$	200
2021 charges		52			43			95
Incurred, net of foreign currency translation of $(8) million and $0 million, respectively		(162	)		(43	)		(205	)
Reversed to the Statement of Operations		(2	)		—			(2	)
Balance at December 31, 2021	$	88		$	—		$	88
2022 charges		110			28			138
Incurred, net of foreign currency translation of ($5) million and $0 million, respectively		(74	)		(26	)		(100	)
Reversed to the Statement of Operations		(9	)		—			(9	)
Balance at December 31, 2022	$	115		$	2		$	117
2023 charges		453			57			510
Incurred, net of foreign currency translation of $14 million and $0 million, respectively		(42	)		(43	)		(85	)
Reversed to the Statement of Operations		(8	)		—			(8	)
Balance at December 31, 2023	$	518		$	16		$	534

In January 2024, we approved a rationalization plan that will result in the closure of certain retail and warehouse locations, primarily in Americas, and a rationalization and global workforce reorganization plan to improve our cost structure, both as part of our Goodyear Forward transformation plan. The plans will lead to a reduction of approximately 250 positions globally. We expect to substantially complete the rationalization plans by the second quarter of 2024. The estimated total pre-tax charges associated with the closure of certain retail and warehouse locations is approximately $35 million, of which $30 million is expected to be cash charges primarily for other exit and lease costs, with the remainder representing non-cash charges primarily for accelerated depreciation and other asset-related charges. The estimated total pre-tax charges associated with the rationalization and global workforce reorganization plan is approximately $35 million, of which $10 million is expected to be cash charges primarily for associate-related and lease costs, with the remainder representing non-cash charges primarily for accelerated depreciation. We have $8 million accrued for these plans at December 31, 2023 and expect to record a majority of the remaining charges in the first and second quarters of 2024.

In November 2023, we approved a rationalization plan in Europe, Middle East and Africa ("EMEA") to permanently close our Fulda, Germany tire manufacturing facility (“Fulda”) and our Fürstenwalde, Germany tire manufacturing facility (“Fürstenwalde”) as part of our strategy to improve our competitive position and reduce production cost per tire in EMEA. The proposed plan amends and replaces the plan that was previously approved in May 2023 to permanently reduce production at Fulda by approximately 50%. The proposed plan would include approximately 1,750 job reductions at Fulda and Fürstenwalde, consisting of 1,500 associates and 250 contracted and temporary positions. We intend to continue operating our mixing center in Fürstenwalde, Germany. The plan remains subject to consultation with relevant employee representative bodies. We expect to substantially complete the closure of Fulda by 2025 and the closure of Fürstenwalde by the end of 2027. We estimate total pre-tax charges associated with these actions to be between $575 million and $600 million, of which $425 million to $450 million is expected to be cash charges primarily for associate-related and other exit costs, with the remainder representing non-cash charges of approximately $150 million, mostly related to accelerated depreciation and other asset-related charges. We have $250 million accrued related to this plan at December 31, 2023. We expect pre-tax charges between $90 million and $110 million in 2024 and between $110 million and $130 million in 2025. We expect cash outflows of approximately $25 million and $300 million in 2024 and 2025, respectively. We expect the remaining pre-tax charges and cash outflows will occur by the end of 2027.

During the third quarter of 2023, we approved a rationalization and workforce reorganization plan in EMEA to improve our cost structure. The plan would lead to a reduction of approximately 1,200 positions across multiple countries within EMEA, while also creating approximately 500 new roles principally in our existing shared services organization in Romania, resulting in an overall net reduction of approximately 700 positions. In certain countries, relevant portions of the plan remain subject to consultation with employee representative bodies. The total pre-tax charges associated with the plan are expected to be $210

million to $230 million, substantially all of which are expected to be cash charges primarily for associate-related and other implementation and exit costs. We have $166 million accrued related to this plan at December 31, 2023, which is expected to be substantially paid through 2024.

During the third quarter of 2023, we approved a plan in Asia Pacific to improve profitability in our Australia and New Zealand operations. The proposed plan will lead to a reduction of approximately 700 positions, the exit of nine warehouse locations, and the sale or exit of approximately 100 retail and fleet store locations. Estimated total pre-tax charges associated with this action will be between $55 million and $65 million, of which $40 million to $50 million are expected to be cash charges primarily for associate-related and lease exit costs, with the remainder primarily representing non-cash charges for accelerated depreciation and other asset-related charges. We have $21 million accrued related to this plan at December 31, 2023, which is expected to be substantially paid through 2024.

During the second quarter of 2023, we approved a plan to reduce costs associated with our global operations and technology organization, which includes approximately 20 net headcount reductions. Total pre-tax charges are expected to be approximately $6 million, primarily consisting of cash charges for associate-related exit costs. We have $5 million accrued for this plan at December 31, 2023, which is expected to be substantially paid through the first quarter of 2024. Relevant portions of the rationalization plan remain subject to consultation with employee representative bodies.

During the first quarter of 2023, we approved a plan designed to streamline our EMEA distribution network that will result in the eventual closure of our Philippsburg, Germany distribution center. The rationalization plan will lower our operating costs while maintaining or improving the existing service levels to our customers. We expect approximately 10 net headcount reductions related to this plan. Total pre-tax cash charges are expected to be approximately $18 million, primarily for severance-related exit costs, including the exit of approximately 285 third party contract associates not included in our headcount. We have $18 million accrued for this plan at December 31, 2023, which is expected to be substantially paid during the first half of 2024.

During the first quarter of 2023, we approved a plan in EMEA to reduce staffing levels and capacity at several manufacturing facilities commensurate with the decline in demand. We expect approximately 280 net headcount reductions and total pre-tax charges of approximately $3 million related to this plan. We have $3 million accrued for this plan at December 31, 2023, which is expected to be substantially paid during the first half of 2024. Relevant portions of the rationalization plan remain subject to consultation with employee representative bodies.

The remainder of the accrual balance at December 31, 2023 is expected to be substantially utilized in the next 12 months and includes $35 million related to the closure of Cooper Tire's Melksham, United Kingdom facility ("Melksham"), $17 million related to plans to reduce SAG headcount, $5 million related to the closed Amiens, France tire manufacturing facility, and various other plans to reduce headcount and improve operating efficiency.

At December 31, 2023 and December 31, 2022, $239 million and $106 million were recorded in Other Current Liabilities in the Consolidated Balance Sheets, respectively.

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



(In millions)	2023			2022		2021
Current Year Plans
Associate severance and other related costs	$	449		$	103	$	19
Benefit plan curtailment and special termination benefits		1			—		—
Other exit costs		23			8		—
Current Year Plans - Net Charges	$	473		$	111	$	19
Prior Year Plans
Associate severance and other related costs	$	(5	)	$	—	$	31
Other exit costs		34			18		43
Prior Year Plans - Net Charges	$	29		$	18	$	74
Total Net Charges	$	502		$	129	$	93
Asset write-off and accelerated depreciation charges, net	$	36		$	30	$	1

Substantially all of the new charges in 2023 related to future cash outflows. Current year plan charges for the year ended December 31, 2023 related to the new plans approved during 2023 are described above.

Net prior year plan charges recognized in the year ended December 31, 2023 include $16 million related to the closure of Melksham, $9 million related to the integration of Cooper Tire, $6 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility ("Gadsden"), $2 million related to a plan in South Africa, and $2 million related to the

discontinued operations in Russia. Net prior year plan charges also include reversals of $8 million for actions no longer needed for their originally intended purposes.

Ongoing rationalization plans had approximately $1,470 million in rationalization charges through 2023 and approximately $260 million is expected to be incurred in future periods.

Approximately 3,500 associates will be released under new plans initiated in 2023, of which approximately 450 were released through December 31, 2023. In 2023, approximately 800 associates were released under plans initiated in prior years. Approximately 3,250 associates remain to be released under all ongoing rationalization plans.

Rationalization activities initiated in 2022 include current year charges primarily related to a rationalization and workforce reorganization plan as well as the plan to close Melksham. Net prior year plan charges recognized in the year ended December 31, 2022 include $15 million related to Gadsden, $7 million related to the modernization of two of our tire manufacturing facilities in Germany and $3 million for various plans to reduce global SAG headcount. Net prior year plan charges also include reversals of $9 million for actions no longer needed for their originally intended purposes.

Rationalization activities initiated in 2021 include current year charges primarily related to a plan to reduce SAG headcount in EMEA. Net prior year plan charges recognized in 2021 include $37 million related to Gadsden, $26 million related to the modernization of two of our tire manufacturing facilities in Germany, and $10 million related to various plans to reduce manufacturing headcount and improve operating efficiency in EMEA. In addition, net prior year plan charges include reversals of $2 million for actions no longer needed for their originally intended purposes.

Asset write-off and accelerated depreciation charges in 2023 primarily related to $18 million for the integration of Cooper Tire, $17 million for the closure of Melksham, and $10 million for the facility closures in Germany, partially offset by $10 million of recoveries of previously written-off accounts receivable and other assets in Russia. Asset write-off and accelerated depreciation charges for 2023 were primarily recorded in CGS.

Asset write-off and accelerated depreciation charges in 2022 primarily related to the discontinuation of our operations in Russia and a plan related to the integration of Cooper Tire. Asset write-off and accelerated depreciation charges for 2022 were primarily recorded in SAG.