Net Sales

6 Months Ended

Jun. 30, 2024

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 June 30, 2024
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	2,175	$	1,093	$	566	$	3,834
Other tire and related sales		196		150		23		369
Retail services and service related sales		187		36		3		226
Chemical sales		134		—		—		134
Other		5		—		2		7
Net Sales by reportable segment	$	2,697	$	1,279	$	594	$	4,570

	Three Months Ended June 30, 2023
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	2,434	$	1,159	$	554	$	4,147
Other tire and related sales		211		144		22		377
Retail services and service related sales		173		38		9		220
Chemical sales		116		—		—		116
Other		5		—		2		7
Net Sales by reportable segment	$	2,939	$	1,341	$	587	$	4,867

	Six Months Ended June 30, 2024
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	4,297	$	2,279	$	1,140	$	7,716
Other tire and related sales		379		282		41		702
Retail services and service related sales		356		65		12		433
Chemical sales		244		—		—		244
Other		9		—		3		12
Net Sales by reportable segment	$	5,285	$	2,626	$	1,196	$	9,107

	Six Months Ended June 30, 2023
			Europe, Middle East
(In millions)	Americas		and Africa		Asia Pacific		Total
Tire unit sales	$	4,812	$	2,487	$	1,103	$	8,402
Other tire and related sales		396		283		43		722
Retail services and service related sales		334		63		19		416
Chemical sales		256		—		—		256
Other		8		—		4		12
Net Sales by reportable segment	$	5,806	$	2,833	$	1,169	$	9,808

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 $19 million and $18 million at June 30, 2024 and December 31, 2023, respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $8 million and $10 million at June 30, 2024 and December 31, 2023, 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 six months ended June 30, 2024:

(In millions)
Balance at December 31, 2023	$	28
Revenue deferred during period		101
Revenue recognized during period		(102	)
Impact of foreign currency translation		—
Balance at June 30, 2024	$	27