EX-99.1 2 d876693dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Global Headquarters: 200 Innovation Way, Akron, Ohio 44316-0001

  

News Release

 

Media Website: www.GoodyearNewsRoom.com

 

 

 

 

 

  

        MEDIA CONTACT:             Keith Price

                                                          330-796-1863

        ANALYST CONTACT:       Christina Zamarro

                                                          330-796-1042

 

        FOR IMMEDIATE RELEASE

Goodyear Reports Fourth Quarter, Full Year Results

 

   

Record full-year segment operating income of $1.7 billion

 

   

Full-year free cash flow from operations of $1.0 billion

 

   

North America sets earnings records for fourth quarter, full year

 

   

Completed $150 million in share repurchases in fourth quarter

 

   

Company releases $2.2 billion U.S. tax valuation allowance, no change to cash taxes

 

   

Company reaffirms 2015 earnings growth target of 10%-15% above 2014 results

AKRON, Ohio, February 17, 2015 – The Goodyear Tire & Rubber Company today reported results for the fourth quarter and full year of 2014.

“We delivered record full-year segment operating income, successfully navigating a challenging global economic environment,” said Richard J. Kramer, chairman and chief executive officer.

“While industry conditions led to mixed results globally, we achieved record fourth quarter segment operating income in North America as well as in Asia Pacific. Our continued performance validates the successful execution of our strategy,” he added.

“The release of our $2.2 billion U.S. tax valuation allowance after 12 years is a major milestone for Goodyear. It marks the completion of the successful turnaround of our North America business,” Kramer said.

The release of the tax valuation allowance represents a one-time, non-cash benefit to earnings in 2014. While the company will record charges for income taxes in future periods, it does not expect to pay cash taxes in the U.S. for approximately five years.

“Led by our momentum in North America, we are on target to achieve 2015 segment operating income growth of 10 percent to 15 percent above our record setting $1.7 billion in 2014, despite severe headwinds from the increasing strength of the U.S. dollar,” Kramer said.

Goodyear’s fourth quarter 2014 sales were $4.4 billion, compared to $4.8 billion a year ago. Sales were impacted by $256 million in unfavorable foreign currency translation and $181 million in lower sales volume in Europe, Middle East and Africa.

 

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Tire unit volumes totaled 39.5 million for the fourth quarter of 2014. Original equipment unit volume was down 1 percent, primarily due to continued industry weakness in Latin America. Replacement tire shipments were down 4 percent, due to lower sales of winter tires in Europe resulting from one of the warmest winters on record.

The company reported segment operating income of $359 million in the fourth quarter of 2014, compared to $419 million a year ago. The decline in segment operating income was driven by reduced price/mix and lower volume, which more than offset the benefits of lower raw material costs and other cost savings actions.

Goodyear’s fourth quarter 2014 net income available to common shareholders was $2.1 billion ($7.68 per share). Excluding certain significant items, adjusted net income was $166 million (59 cents per share).

For the fourth quarter of 2013, net income available to common shareholders was $228 million (84 cents per share). Excluding certain significant items, adjusted net income was $209 million (74 cents per share). Per share amounts are diluted.

Full-Year Results

Goodyear’s 2014 sales were $18.1 billion, compared to $19.5 billion in 2013. Sales were impacted by $571 million in unfavorable foreign currency translation. Tire unit volumes totaled 162 million. Replacement tire shipments were up 1 percent. Original equipment unit volume was down 3 percent.

The company’s segment operating income of $1.7 billion was up 8 percent from last year. Compared to the prior year, the significant increase in segment operating income reflects lower raw material and conversion costs partially offset by lower price/mix and unfavorable foreign currency translation.

Goodyear’s 2014 net income available to common shareholders was $2.4 billion ($8.78 per share). Excluding certain significant items, adjusted net income was $790 million ($2.83 per share).

Net income available to common shareholders was $600 million ($2.28 per share) in 2013. Excluding certain significant items, adjusted net income was $725 million ($2.63 per share). All per share amounts are diluted.

See the note at the end of this release for further explanation and reconciliation tables for Segment Operating Income and Margin; Free Cash Flow from Operations; Adjusted Net Income; and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2014 and 2013 periods.

 

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Business Segment Results

North America

 

     Fourth Quarter     Twelve Months  
(in millions)    2014     2013     2014     2013  

Tire Units

     16.0        16.3        61.1        61.7   

Sales

   $ 2,105      $ 2,131      $ 8,085      $ 8,684   

Segment Operating Income

     229        199        803        691   

Segment Operating Margin

     10.9     9.3     9.9     8.0

North America’s fourth quarter 2014 sales decreased 1 percent from last year to $2.1 billion. Sales reflect a 1 percent decrease in tire unit volume and unfavorable foreign currency translation, partially offset by improved price/mix. Replacement tire shipments were down 1 percent. Original equipment unit volume was flat.

Fourth quarter 2014 segment operating income of $229 million was a 15 percent improvement over the prior year and a record for any quarter. The improvement was driven primarily by lower raw material costs and lower pension expense.

Europe, Middle East and Africa

 

     Fourth Quarter     Twelve Months  
(in millions)    2014     2013     2014     2013  

Tire Units

     12.8        14.4        60.5        60.8   

Sales

   $ 1,306      $ 1,631      $ 6,180      $ 6,567   

Segment Operating Income

     30        101        438        298   

Segment Operating Margin

     2.3     6.2     7.1     4.5

Europe, Middle East and Africa’s fourth quarter sales decreased 20 percent from last year to $1.3 billion. Sales reflect a 12 percent decrease in tire unit volume, unfavorable foreign currency translation and lower price/mix. Replacement tire shipments were down 15 percent, primarily due to lower winter tire sales resulting from one of the warmest winters on record. Original equipment unit volume was down 5 percent.

Fourth quarter 2014 segment operating income of $30 million was 70 percent below the prior year primarily due to reduced price/mix, lower volume and higher marketing expenses, partially offset by lower raw material costs and cost savings actions including savings from the closure of a tire plant in France.

 

(more)


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Latin America

 

     Fourth Quarter     Twelve Months  
(in millions)    2014     2013     2014     2013  

Tire Units

     4.7        4.4        17.4        17.9   

Sales

   $ 434      $ 492      $ 1,796      $ 2,063   

Segment Operating Income

     20        52        170        283   

Segment Operating Margin

     4.6     10.6     9.5     13.7

Latin America’s fourth quarter sales decreased 12 percent from last year to $434 million. Sales reflect an 8 percent increase in tire unit volume more than offset by unfavorable foreign currency translation. Replacement tire shipments were up 20 percent. Original equipment unit volume was down 24 percent, primarily in Brazil.

Fourth quarter segment operating income of $20 million was down 62 percent from a year ago primarily due to higher conversion costs, unfavorable foreign currency translation and an unfavorable tax claim.

Asia Pacific

 

     Fourth Quarter     Twelve Months  
(in millions)    2014     2013     2014     2013  

Tire Units

     6.0        5.6        23.0        21.9   

Sales

   $ 511      $ 537      $ 2,077      $ 2,226   

Segment Operating Income

     80        67        301        308   

Segment Operating Margin

     15.7     12.5     14.5     13.8

Asia Pacific’s fourth quarter sales decreased 5 percent from last year to $511 million. Sales reflect a 7 percent increase in tire unit volume, which was more than offset by reduced price/mix and unfavorable foreign currency translation. Replacement tire shipments were flat. Original equipment unit volume was up 15 percent.

Fourth quarter segment operating income of $80 million was up 19 percent from last year and a record, driven by lower raw material costs and higher volume.

Outlook

The company reaffirmed its 2015-2016 financial targets, which include:

 

   

Segment Operating Income growth of between 10 percent and 15 percent per year;

 

   

Annual positive Free Cash Flow from Operations and,

 

   

An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x.

 

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Shareholder Return Program

The company paid a quarterly dividend of 6 cents per share of common stock on December 1, 2014. Directors have declared a quarterly dividend of 6 cents per share payable March 2, 2015, to shareholders of record on February 2, 2015.

As a part of its previously announced $450 million share repurchase program, the company repurchased 5.7 million shares of its common stock for $150 million during the fourth quarter. For the full year of 2014, Goodyear repurchased 8.9 million shares of its common stock for $233 million.

E-Commerce Platform Launched

At its 2015 Dealer Conference on January 26, Goodyear’s North America business announced that, driven by consumer demand, it is launching an e-commerce platform later this year to enable consumers to buy tires online at Goodyear.com and have them installed locally at an authorized Goodyear retailer of their choice. Goodyear will be the first major tire manufacturer to offer online consumer tire purchasing.

Conference Call

Goodyear will hold an investor conference call at 9 a.m. today. Prior to the commencement of the call, the company will post the financial and other related information that will be presented on its investor relations Web site: http://investor.goodyear.com.

Participating in the conference call will be Richard J. Kramer, chairman and chief executive officer, and Laura K. Thompson, executive vice president and chief financial officer.

Investors, members of the media and other interested persons can access the conference call on the Web site or via telephone by calling either 800-895-1085 or 785-424-1055 before 8:55 a.m. and providing the Conference ID “Goodyear.” A taped replay will be available by calling 800-839-2485 or 402-220-7222. The replay will also remain available on the Web site.

Goodyear is one of the world’s largest tire companies. It employs about 67,000 people and manufactures its products in 50 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear and its products, go to www.goodyear.com/corporate. GT-FN

 

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Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; foreign currency translation and transaction risks; increases in the prices paid for raw materials and energy; a labor strike, work stoppage or other similar event; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

(financial statements follow)

 


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The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Operations

 

     (Unaudited)
Three Months
Ended
December 31,
    Year Ended
December 31,
 
(In millions, except per share amounts)    2014     2013     2014     2013  

NET SALES

   $ 4,356      $ 4,791      $ 18,138      $ 19,540   

Cost of Goods Sold

     3,340        3,690        13,906        15,422   

Selling, Administrative and General Expense

     702        736        2,720        2,758   

Rationalizations

     15        17        95        58   

Interest Expense

     113        105        428        392   

Other Expense (Income)

     60        (15     302        97   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before Income Taxes

     126        258        687        813   

United States and Foreign Taxes

     (2,002     2        (1,834     138   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     2,128        256        2,521        675   

Less: Minority Shareholders’ Net Income (Loss)

     (1     21        69        46   
  

 

 

   

 

 

   

 

 

   

 

 

 

Goodyear Net Income

     2,129        235        2,452        629   

Less: Preferred Stock Dividends

     —          7        7        29   
  

 

 

   

 

 

   

 

 

   

 

 

 

Goodyear Net Income Available to Common Shareholders

   $ 2,129      $ 228      $ 2,445      $ 600   
  

 

 

   

 

 

   

 

 

   

 

 

 

Goodyear Net Income Available to Common Shareholders—Per Share of Common Stock

        

Basic

   $ 7.82      $ 0.92      $ 9.13      $ 2.44   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Shares Outstanding

     272        247        268        246   

Diluted

   $ 7.68      $ 0.84      $ 8.78      $ 2.28   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Shares Outstanding

     277        280        279        277   

Cash Dividends Declared Per Common Share

   $ 0.06      $ —        $ 0.22      $ 0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(more)


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The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Balance Sheets

 

(In millions, except share data)    December 31,     December 31,  
     2014     2013  

Assets:

    

Current Assets:

    

Cash and Cash Equivalents

   $ 2,161      $ 2,996   

Accounts Receivable, less Allowance—$89 ($99 in 2013)

     2,126        2,435   

Inventories:

    

Raw Materials

     535        592   

Work in Process

     149        164   

Finished Products

     1,987        2,060   
  

 

 

   

 

 

 
     2,671        2,816   

Deferred Income Taxes

     570        143   

Prepaid Expenses and Other Current Assets

     196        254   
  

 

 

   

 

 

 

Total Current Assets

     7,724        8,644   

Goodwill

     601        668   

Intangible Assets

     138        138   

Deferred Income Taxes

     1,762        157   

Other Assets

     731        600   

Property, Plant and Equipment

        less Accumulated Depreciation—$9,031 ($9,158 in 2013)

     7,153        7,320   
  

 

 

   

 

 

 

Total Assets

   $ 18,109      $ 17,527   
  

 

 

   

 

 

 

Liabilities:

    

Current Liabilities:

    

Accounts Payable—Trade

   $ 2,878      $ 3,097   

Compensation and Benefits

     724        758   

Other Current Liabilities

     956        1,083   

Notes Payable and Overdrafts

     30        14   

Long Term Debt and Capital Leases due Within One Year

     148        73   
  

 

 

   

 

 

 

Total Current Liabilities

     4,736        5,025   

Long Term Debt and Capital Leases

     6,216        6,162   

Compensation and Benefits

     1,676        2,673   

Deferred and Other Noncurrent Income Taxes

     181        256   

Other Long Term Liabilities

     873        966   
  

 

 

   

 

 

 

Total Liabilities

     13,682        15,082   

Commitments and Contingent Liabilities

    

Minority Shareholders’ Equity

     582        577   

Shareholders’ Equity:

    

Goodyear Shareholders’ Equity:

    

Preferred Stock, no par value:

    

Authorized, 50 million shares, Outstanding shares — none (10 million in 2013), liquidation preference $50 per share

     —          500   

Common Stock, no par value:

    

Authorized, 450 million shares, Outstanding shares — 269 million (248 million in 2013) after deducting 9 million treasury shares (3 million in 2013)

     269        248   

Capital Surplus

     3,141        2,847   

Retained Earnings

     4,343        1,958   

Accumulated Other Comprehensive Loss

     (4,143     (3,947
  

 

 

   

 

 

 

Goodyear Shareholders’ Equity

     3,610        1,606   

Minority Shareholders’ Equity — Nonredeemable

     235        262   
  

 

 

   

 

 

 

Total Shareholders’ Equity

     3,845        1,868   
  

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 18,109      $ 17,527   
  

 

 

   

 

 

 

 

(more)


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The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Cash Flows

 

(In millions)    Year Ended  
     December 31,  
     2014     2013  

Cash Flows from Operating Activities:

    

Net Income

   $ 2,521      $ 675   

Adjustments to Reconcile Net Income to Cash Flows from Operating Activities:

    

Depreciation and Amortization

     732        722   

Amortization and Write-Off of Debt Issuance Costs

     14        18   

Provision for Deferred Income Taxes

     (1,970     (34

Net Pension Curtailments and Settlements

     39        —     

Net Rationalization Charges

     95        58   

Rationalization Payments

     (226     (72

Net Gains on Asset Sales

     (3     (8

Pension Contributions and Direct Payments

     (1,338     (1,162

Net Venezuela Currency Losses

     200        115   

Customer Prepayments and Government Grants

     14        44   

Insurance Proceeds

     4        17   

Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions:

    

Accounts Receivable

     75        79   

Inventories

     (35     366   

Accounts Payable—Trade

     (41     (30

Compensation and Benefits

     223        243   

Other Current Liabilities

     (40     (28

Other Assets and Liabilities

     76        (65
  

 

 

   

 

 

 

Total Cash Flows from Operating Activities

     340        938   

Cash Flows from Investing Activities:

    

Capital Expenditures

     (923     (1,168

Asset Dispositions

     18        25   

Decrease in Restricted Cash

     5        14   

Short Term Securities Acquired

     (72     (105

Short Term Securities Redeemed

     95        89   

Other Transactions

     26        9   
  

 

 

   

 

 

 

Total Cash Flows from Investing Activities

     (851     (1,136

Cash Flows from Financing Activities:

    

Short Term Debt and Overdrafts Incurred

     46        31   

Short Term Debt and Overdrafts Paid

     (24     (120

Long Term Debt Incurred

     1,842        1,913   

Long Term Debt Paid

     (1,555     (681

Common Stock Issued

     39        26   

Common Stock Repurchased

     (234     (4

Common Stock Dividends Paid

     (60     (12

Preferred Stock Dividends Paid

     (15     (29

Transactions with Minority Interests in Subsidiaries

     (49     (26

Debt Related Costs and Other Transactions

     (1     (16
  

 

 

   

 

 

 

Total Cash Flows from Financing Activities

     (11     1,082   

Effect of Exchange Rate Changes on Cash and Cash Equivalents

     (313     (169
  

 

 

   

 

 

 

Net Change in Cash and Cash Equivalents

     (835     715   

Cash and Cash Equivalents at Beginning of the Period

     2,996        2,281   
  

 

 

   

 

 

 

Cash and Cash Equivalents at End of the Period

   $ 2,161      $ 2,996   
  

 

 

   

 

 

 

 

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Non-GAAP Financial Measures (unaudited)

This earnings release presents Total Segment Operating Income, Free Cash Flow from Operations, Adjusted Net Income and Adjusted Diluted Earnings Per Share (EPS) on a historical basis and our targeted Total Segment Operating Income growth rate for 2015-2016 and our targeted ratio of Adjusted Debt to EBITDAP for 2016, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as an alternative to corresponding financial measures presented in accordance with U.S. GAAP.

Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs) Segment Operating Income as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income is useful because it represents the aggregate value of income created by the company’s SBUs and excludes items not directly related to the SBUs for performance evaluation purposes.

Free Cash Flow from Operations is the company’s Cash Flows from Operating Activities as determined in accordance with U.S. GAAP before pension contributions and direct payments and rationalization payments, less capital expenditures. Management believes that Free Cash Flow from Operations is useful because it represents the cash generating capability of the company’s ongoing operations, after taking into consideration capital expenditures necessary to maintain its business and pursue growth opportunities.

Adjusted Net Income is Goodyear’s Net Income as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted EPS is the company’s Adjusted Net Income divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income and Adjusted Diluted EPS are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated depreciation, asset sales and certain other significant items.

Adjusted Debt is the sum of our total debt and our global pension liability, each as determined in accordance with U.S. GAAP, and EBITDAP, as adjusted, represents Net Income (the most directly comparable U.S. GAAP financial measure) before interest expense, income tax expense, depreciation and amortization expense, net periodic pension cost, rationalization charges and other (income) and expense. We refer to the ratio of Adjusted Debt to EBITDAP because we believe it is widely used by investors as a means of evaluating a company’s leverage.

We are unable to present a quantitative reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, because management cannot reliably predict all of the necessary components of those U.S. GAAP financial measures without unreasonable effort. These components could be significant to the calculation of those U.S. GAAP financial measures in the future.

It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies.

See the tables below for reconciliations of historical Total Segment Operating Income, Free Cash Flow from Operations, Adjusted Net Income and Adjusted Diluted EPS to the most directly comparable U.S. GAAP measures.

Total Segment Operating Income and Margin Reconciliation Table

 

    

Three Months
Ended

December 31,

    Year Ended
December 31,
 
(In millions)    2014     2013     2014     2013  

Segment Operating Income

   $ 359      $ 419      $ 1,712      $ 1,580   

Rationalizations

     15        17        95        58   

Interest Expense

     113        105        428        392   

Other (Income) Expense

     60        (15     302        97   

Asset Write-offs and Accelerated Depreciation

     4        8        7        23   

Corporate Incentive Compensation Plans

     28        29        97        108   

Corporate Pension Curtailments/Settlements

     —          —          33        —     

Intercompany Profit Elimination

     (8     (9     (4     (4

Retained Expenses of Divested Operations

     5        7        16        24   

Other

     16        19        51        69   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before Income Taxes

   $ 126      $ 258      $ 687      $ 813   

United States and Foreign Taxes

     (2,002     2        (1,834     138   

Less: Minority Shareholders Net Income (Loss)

     (1     21        69        46   
  

 

 

   

 

 

   

 

 

   

 

 

 

Goodyear Net Income

   $ 2,129      $ 235      $ 2,452      $ 629   
  

 

 

   

 

 

   

 

 

   

 

 

 

Sales

   $ 4,356      $ 4,791      $ 18,138      $ 19,540   

Return on Sales

     48.9     4.9     13.5     3.2

Total Segment Operating Margin

     8.2     8.7     9.4     8.1

 

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Free Cash Flow from Operations Reconciliation Table

 

     Year Ended
December 31,
 
(in millions)    2014      2013  

Net Income

   $ 2,521       $ 675   

Depreciation and Amortization

     732         722   

Working Capital (1)

     (1      415   

Pension Expense (2)

     158         285   

Provision for Deferred Income Taxes

     (1,970      (34

Other (3)

     464         109   

Capital Expenditures

     (923      (1,168
  

 

 

    

 

 

 

Free Cash Flow from Operations (non-GAAP)

   $ 981       $ 1,004   

Capital Expenditures

     923         1,168   

Pension Contributions and Direct Payments

     (1,338      (1,162

Rationalization Payments

     (226      (72
  

 

 

    

 

 

 

Cash Flow from Operating Activities (GAAP)

   $ 340       $ 938   
  

 

 

    

 

 

 

Amounts are calculated from the consolidated Statements of Cash Flows except for pension expense, which is as reported in the Notes to Consolidated Financial Statements.

(1) Working Capital represents total changes in accounts receivable, inventories and accounts payable – trade.

(2) Pension expense is the net periodic pension cost (before curtailments, settlements and termination benefits) as reported in the pension-related note in the Notes to Consolidated Financial Statements.

(3) Other includes amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges, net (gains) losses on asset sales, net Venezuela currency loss, customer prepayments and government grants, insurance proceeds, compensation and benefits less pension expense, other current liabilities, and other assets and liabilities.

Adjusted Net Income Reflecting Certain Significant Items (after tax and minority interest)

 

Fourth Quarter 2014    In
Millions
     Per Share
(Diluted)
 

Goodyear Net Income

   $ 2,129       $ 7.68   

Significant Items:

     

Net Venezuela Currency Losses

     45         0.16   

Rationalizations, Asset Write-offs, and Accelerated

        Depreciation Charges

     12         0.04   

Net Income and Other Discrete Tax Benefits

     (2,013      (7.26

Net Gains on Asset Sales

     (7      (0.03
  

 

 

    

 

 

 
   $ (1,963    $ (7.09
  

 

 

    

 

 

 

Adjusted Net Income (non-GAAP)

   $ 166       $ 0.59   
  

 

 

    

 

 

 

 

Fourth Quarter 2013    In
Millions
     Per Share
(Diluted)
 

Goodyear Net Income

   $ 235       $ 0.84   

Significant Items:

     

Rationalizations, Asset Write-offs, and Accelerated Depreciation Charges

     17         0.06   

Net Income and Other Discrete Tax Items

     (41      (0.15

Net Gains on Asset Sales

     (2      (0.01
  

 

 

    

 

 

 
   $ (26    $ (0.10
  

 

 

    

 

 

 

Adjusted Net Income (non-GAAP)

   $ 209       $ 0.74   
  

 

 

    

 

 

 

 

(more)


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Adjusted Net Income Reflecting Certain Significant Items (after tax and minority interest)

 

Full-Year 2014    In
Millions
     Per Share
(Diluted)
 

Goodyear Net Income

   $ 2,452       $ 8.78   

Significant Items:

     

Net Venezuela Currency Losses

     175         0.63   

Rationalizations, Asset Write-offs, and Accelerated

Depreciation Charges

     71         0.25   

Pension Curtailments and Settlements

     36         0.13   

Charges Relating to Labor Claims with Respect to a Previously Closed Facility in Greece

     22         0.08   

Charge Relating to Government Investigation in Africa

     16         0.06   

Net Income and Other Discrete Tax Benefits

     (1,978      (7.09

Net Gains on Asset Sales

     (4      (0.01
  

 

 

    

 

 

 
   $ (1,662    $ (5.95
  

 

 

    

 

 

 

Adjusted Net Income (non-GAAP)

   $ 790       $ 2.83   
  

 

 

    

 

 

 

 

Full-Year 2013    In
Millions
     Per Share
(Diluted)
 

Goodyear Net Income

   $ 629       $ 2.28   

Significant Items:

     

Net Venezuela Currency Losses

     92         0.33   

Rationalizations, Asset Write-offs, and Accelerated Depreciation Charges

     58         0.21   

Charges Relating to Labor Claims with Respect to a

        Previously Closed Facility in Greece

     6         0.02   

Net Income and Other Discrete Tax Benefits

     (47      (0.17

Net Gains on Asset Sales

     (7      (0.02

Net Insurance Recoveries from 2011 Thailand Flood

     (6      (0.02
  

 

 

    

 

 

 
   $ 96       $ 0.35   
  

 

 

    

 

 

 

Adjusted Net Income (non-GAAP)

   $ 725       $ 2.63   
  

 

 

    

 

 

 

 

-0-