Consolidating Financial Information

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidating Financial Information

Consolidating Financial Information

Certain of our subsidiaries have guaranteed our obligations under the $282 million outstanding principal amount of 8.75% notes due 2020, the $700 million outstanding principal amount of 7% senior notes due 2022, the $1.0 billion outstanding principal amount of 5.125% senior notes due 2023 and the $900 million outstanding principal amount of 5.0% senior notes due 2026 (collectively, the “notes”). The following presents the condensed consolidating financial information separately for:

(i) The Goodyear Tire & Rubber Company (the “Parent Company”), the issuer of the guaranteed obligations;

(ii) Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Goodyear’s obligations under the notes;

(iii) Non-guarantor subsidiaries, on a combined basis;

(iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries, and (c) record consolidating entries; and

(v) The Goodyear Tire & Rubber Company and Subsidiaries on a consolidated basis.

Each guarantor subsidiary is 100% owned by the Parent Company at the date of each balance sheet presented. The notes are fully and unconditionally guaranteed on a joint and several basis by each guarantor subsidiary. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and guarantor subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Changes in intercompany receivables and payables related to operations, such as intercompany sales or service charges, are included in cash flows from operating activities. Intercompany transactions reported as investing or financing activities include the sale of the capital stock of various subsidiaries, loans and other capital transactions between members of the consolidated group. In 2015, the Parent Company acquired the common shares of a non-guarantor subsidiary from another non-guarantor subsidiary at a cost of $145 million. The transaction was settled by the cancellation of intercompany balances between the Parent Company and the transferring non-guarantor subsidiary. In addition, in 2015 the Parent Company capitalized approximately $90 million of intercompany receivables from a non-guarantor subsidiary with a corresponding increase in equity of the subsidiary.

Certain non-guarantor subsidiaries of the Parent Company are limited in their ability to remit funds to it by means of dividends, advances or loans due to required foreign government and/or currency exchange board approvals or limitations in credit agreements or other debt instruments of those subsidiaries.

	Condensed Consolidating Balance Sheet
	December 31, 2016
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	185	$	58	$	889	$	—		$	1,132
Accounts Receivable	562		133		1,074		—			1,769
Accounts Receivable From Affiliates	—		436		270		(706		)	—
Inventories	1,336		142		1,178		(29		)	2,627
Prepaid Expenses and Other Current Assets	57		3		130		—			190
Total Current Assets	2,140		772		3,541		(735		)	5,718
Goodwill	—		24		391		120			535
Intangible Assets	118		—		18		—			136
Deferred Income Taxes	2,010		31		373		—			2,414
Other Assets	222		54		387		5			668
Investments in Subsidiaries	4,646		541		—		(5,187		)	—
Property, Plant and Equipment	2,454		335		4,279		(28		)	7,040
Total Assets	$	11,590	$	1,757	$	8,989	$	(5,825	)	$	16,511
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	887	$	160	$	1,542	$	—		$	2,589
Accounts Payable to Affiliates	706		—		—		(706		)	—
Compensation and Benefits	353		27		204		—			584
Other Current Liabilities	346		9		611		(3		)	963
Notes Payable and Overdrafts	—		—		245		—			245
Long Term Debt and Capital Leases Due Within One Year	6		—		430		—			436
Total Current Liabilities	2,298		196		3,032		(709		)	4,817
Long Term Debt and Capital Leases	3,685		—		1,113		—			4,798
Compensation and Benefits	676		104		680		—			1,460
Deferred Income Taxes	—		1		84		—			85
Other Long Term Liabilities	424		13		188		1			626
Total Liabilities	7,083		314		5,097		(708		)	11,786
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	252		—		—		—			252
Other Equity	4,255		1,443		3,674		(5,117		)	4,255
Goodyear Shareholders’ Equity	4,507		1,443		3,674		(5,117		)	4,507
Minority Shareholders’ Equity — Nonredeemable	—		—		218		—			218
Total Shareholders’ Equity	4,507		1,443		3,892		(5,117		)	4,725
Total Liabilities and Shareholders’ Equity	$	11,590	$	1,757	$	8,989	$	(5,825	)	$	16,511

	Condensed Consolidating Balance Sheet
	December 31, 2015
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	354	$	70	$	1,052	$	—		$	1,476
Accounts Receivable	814		136		1,083		—			2,033
Accounts Receivable From Affiliates	—		609		—		(609		)	—
Inventories	1,199		157		1,152		(44		)	2,464
Prepaid Expenses and Other Current Assets	42		3		105		3			153
Total Current Assets	2,409		975		3,392		(650		)	6,126
Goodwill	—		24		407		124			555
Intangible Assets	118		—		20		—			138
Deferred Income Taxes	2,049		19		73		—			2,141
Other Assets	216		81		350		7			654
Investments in Subsidiaries	4,088		383		—		(4,471		)	—
Property, Plant and Equipment	2,377		216		4,213		(29		)	6,777
Total Assets	$	11,257	$	1,698	$	8,455	$	(5,019	)	$	16,391
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	1,002	$	189	$	1,578	$	—		$	2,769
Accounts Payable to Affiliates	540		—		69		(609		)	—
Compensation and Benefits	411		29		226		—			666
Other Current Liabilities	328		16		547		(5		)	886
Notes Payable and Overdrafts	—		—		49		—			49
Long Term Debt and Capital Leases Due Within One Year	6		—		579		—			585
Total Current Liabilities	2,287		234		3,048		(614		)	4,955
Long Term Debt and Capital Leases	3,796		—		1,278		—			5,074
Compensation and Benefits	725		97		646		—			1,468
Deferred Income Taxes	—		1		92		(2		)	91
Other Long Term Liabilities	529		15		119		(2		)	661
Total Liabilities	7,337		347		5,183		(618		)	12,249
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	267		—		—		—			267
Other Equity	3,653		1,351		3,050		(4,401		)	3,653
Goodyear Shareholders’ Equity	3,920		1,351		3,050		(4,401		)	3,920
Minority Shareholders’ Equity — Nonredeemable	—		—		222		—			222
Total Shareholders’ Equity	3,920		1,351		3,272		(4,401		)	4,142
Total Liabilities and Shareholders’ Equity	$	11,257	$	1,698	$	8,455	$	(5,019	)	$	16,391

	Consolidating Statements of Operations
	Year Ended December 31, 2016
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	6,982		$	1,774		$	9,121		$	(2,719	)	$	15,158
Cost of Goods Sold	5,147			1,632			6,971			(2,778		)	10,972
Selling, Administrative and General Expense	955			151			1,302			(1		)	2,407
Rationalizations	20			—			190			—			210
Interest Expense	276			12			129			(45		)	372
Other (Income) Expense	(45		)	—			(52		)	87			(10		)
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	629			(21		)	581			18			1,207
United States and Foreign Tax (Benefit) Expense	104			(7		)	(180		)	6			(77		)
Equity in Earnings (Loss) of Subsidiaries	739			122			—			(861		)	—
Net Income (Loss)	1,264			108			761			(849		)	1,284
Less: Minority Shareholders’ Net Income	—			—			20			—			20
Goodyear Net Income (Loss)	$	1,264		$	108		$	741		$	(849	)	$	1,264
Comprehensive Income (Loss)	$	1,076		$	38		$	585		$	(615	)	$	1,084
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			8			—			8
Goodyear Comprehensive Income (Loss)	$	1,076		$	38		$	577		$	(615	)	$	1,076

	Year Ended December 31, 2015
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,566		$	2,129		$	10,308		$	(3,560	)	$	16,443
Cost of Goods Sold	5,804			1,915			8,090			(3,645		)	12,164
Selling, Administrative and General Expense	1,053			172			1,392			(3		)	2,614
Rationalizations	13			—			101			—			114
Interest Expense	339			22			135			(58		)	438
Loss on Deconsolidation of Venezuelan Subsidiary	374			—			272			—			646
Other (Income) Expense	(455		)	(13		)	173			154			(141		)
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	438			33			145			(8		)	608
United States and Foreign Tax (Benefit) Expense	104			10			112			6			232
Equity in Earnings (Loss) of Subsidiaries	(27		)	19			—			8			—
Net Income (Loss)	307			42			33			(6		)	376
Less: Minority Shareholders’ Net Income	—			—			69			—			69
Goodyear Net Income (Loss)	307			42			(36		)	(6		)	307
Comprehensive Income (Loss)	$	535		$	54		$	46		$	(94	)	$	541
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			32			(26		)	6
Goodyear Comprehensive Income (Loss)	$	535		$	54		$	14		$	(68	)	$	535

	Consolidating Statements of Operations
	Year Ended December 31, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,915		$	2,487		$	12,051		$	(4,315	)	$	18,138
Cost of Goods Sold	6,457			2,237			9,622			(4,410		)	13,906
Selling, Administrative and General Expense	916			166			1,645			(7		)	2,720
Rationalizations	(6		)	—			101			—			95
Interest Expense	342			26			139			(63		)	444
Other (Income) Expense	(101		)	(11		)	222			176			286
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	307			69			322			(11		)	687
United States and Foreign Tax (Benefit) Expense	(2,026		)	14			174			4			(1,834		)
Equity in Earnings (Loss) of Subsidiaries	119			28			—			(147		)	—
Net Income (Loss)	2,452			83			148			(162		)	2,521
Less: Minority Shareholders’ Net Income	—			—			69			—			69
Goodyear Net Income (Loss)	2,452			83			79			(162		)	2,452
Less: Preferred Stock Dividends	7			—			—			—			7
Goodyear Net Income (Loss) available to Common Shareholders	$	2,445		$	83		$	79		$	(162	)	$	2,445
Comprehensive Income (Loss)	$	2,257		$	89		$	(11	)	$	(58	)	$	2,277
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			46			(26		)	20
Goodyear Comprehensive Income (Loss)	$	2,257		$	89		$	(57	)	$	(32	)	$	2,257

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 2016
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	598		$	103		$	875		$	(72	)	$	1,504
Cash Flows from Investing Activities:
Capital Expenditures	(361		)	(116		)	(525		)	6			(996		)
Asset Dispositions	11			—			24			—			35
Decrease (Increase) in Restricted Cash	—			—			6			—			6
Short Term Securities Acquired	—			—			(72		)	—			(72		)
Short Term Securities Redeemed	—			—			60			—			60
Capital Contributions Received and Loans Incurred	(257		)	—			(576		)	833			—
Capital Redemptions and Loans Paid	163			—			148			(311		)	—
Other Transactions	—			—			(6		)	—			(6		)
Total Cash Flows from Investing Activities	(444		)	(116		)	(941		)	528			(973		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	—			41			417			(41		)	417
Short Term Debt and Overdrafts Paid	(41		)	—			(228		)	41			(228		)
Long Term Debt Incurred	2,896			—			2,092			—			4,988
Long Term Debt Paid	(3,016		)	—			(2,417		)	—			(5,433		)
Common Stock Issued	13			—			—			—			13
Common Stock Repurchased	(500		)	—			—			—			(500		)
Common Stock Dividends Paid	(82		)	—			—			—			(82		)
Capital Contributions Received and Loans Incurred	576			59			198			(833		)	—
Capital Redemptions and Loans Paid	(148		)	(80		)	(83		)	311			—
Intercompany Dividends Paid	—			(19		)	(47		)	66			—
Transactions with Minority Interests in Subsidiaries	—			—			(11		)	—			(11		)
Debt Related Costs and Other Transactions	(21		)	—			(3		)	—			(24		)
Total Cash Flows from Financing Activities	(323		)	1			(82		)	(456		)	(860		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(15		)	—			(15		)
Net Change in Cash and Cash Equivalents	(169		)	(12		)	(163		)	—			(344		)
Cash and Cash Equivalents at Beginning of the Year	354			70			1,052			—			1,476
Cash and Cash Equivalents at End of the Year	$	185		$	58		$	889		$	—		$	1,132

	Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	979		$	149		$	612		$	(53	)	$	1,687
Cash Flows from Investing Activities:
Capital Expenditures	(315		)	(119		)	(558		)	9			(983		)
Asset Dispositions	48			—			14			—			62
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary	—			—			(320		)	—			(320		)
Decrease (Increase) in Restricted Cash	—			—			(6		)	—			(6		)
Short Term Securities Acquired	—			—			(77		)	—			(77		)
Short Term Securities Redeemed	—			—			69			—			69
Capital Contributions Received and Loans Incurred	(70		)	—			(90		)	160			—
Capital Redemptions and Loans Paid	122			—			125			(247		)	—
Other Transactions	—			—			(7		)	—			(7		)
Total Cash Flows from Investing Activities	(215		)	(119		)	(850		)	(78		)	(1,262		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	55			—			118			(70		)	103
Short Term Debt and Overdrafts Paid	(15		)	(16		)	(123		)	70			(84		)
Long Term Debt Incurred	1,736			—			1,083			—			2,819
Long Term Debt Paid	(2,341		)	—			(974		)	—			(3,315		)
Common Stock Issued	53			—			—			—			53
Common Stock Repurchased	(180		)	—			—			—			(180		)
Common Stock Dividends Paid	(68		)	—			—			—			(68		)
Capital Contributions Received and Loans Incurred	90			12			58			(160		)	—
Capital Redemptions and Loans Paid	(125		)	(15		)	(107		)	247			—
Intercompany Dividends Paid	—			(17		)	(27		)	44			—
Transactions with Minority Interests in Subsidiaries	—			—			(9		)	—			(9		)
Debt Related Costs and Other Transactions	(18		)	—			(15		)	—			(33		)
Dissolution of Global Alliance	(271		)	—			—			—			(271		)
Total Cash Flows from Financing Activities	(1,084		)	(36		)	4			131			(985		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			(13		)	(112		)	—			(125		)
Net Change in Cash and Cash Equivalents	(320		)	(19		)	(346		)	—			(685		)
Cash and Cash Equivalents at Beginning of the Year	674			89			1,398			—			2,161
Cash and Cash Equivalents at End of the Year	$	354		$	70		$	1,052		$	—		$	1,476

	Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Cash Flows from Operating Activities:
Total Cash Flows from Operating Activities	$	(334	)	$	195		$	758		$	(279	)	$	340
Cash Flows from Investing Activities:
Capital Expenditures	(303		)	(19		)	(607		)	6			(923		)
Asset Dispositions	9			2			7			—			18
Decrease (Increase) in Restricted Cash	(1		)	—			6			—			5
Short Term Securities Acquired	—			—			(72		)	—			(72		)
Short Term Securities Redeemed	—			—			95			—			95
Capital Contributions Received and Loans Incurred	(382		)	—			(457		)	839			—
Capital Redemptions and Loans Paid	459			—			244			(703		)	—
Other Transactions	13			—			13			—			26
Total Cash Flows from Investing Activities	(205		)	(17		)	(771		)	142			(851		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	22			—			60			(36		)	46
Short Term Debt and Overdrafts Paid	(14		)	(22		)	(24		)	36			(24		)
Long Term Debt Incurred	601			—			1,241			—			1,842
Long Term Debt Paid	(608		)	—			(947		)	—			(1,555		)
Common Stock Issued	39			—			—			—			39
Common Stock Repurchased	(234		)	—			—			—			(234		)
Common Stock Dividends Paid	(60		)	—			—			—			(60		)
Preferred Stock Dividends Paid	(15		)	—			—			—			(15		)
Capital Contributions Received and Loans Incurred	457			47			335			(839		)	—
Capital Redemptions and Loans Paid	(244		)	—			(459		)	703			—
Intercompany Dividends Paid	—			(203		)	(70		)	273			—
Transactions with Minority Interests in Subsidiaries	—			—			(49		)	—			(49		)
Debt Related Costs and Other Transactions	—			—			(1		)	—			(1		)
Total Cash Flows from Financing Activities	(56		)	(178		)	86			137			(11		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			(5		)	(308		)	—			(313		)
Net Change in Cash and Cash Equivalents	(595		)	(5		)	(235		)	—			(835		)
Cash and Cash Equivalents at Beginning of the Year	1,269			94			1,633			—			2,996
Cash and Cash Equivalents at End of the Year	$	674		$	89		$	1,398		$	—		$	2,161