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Costs Associated with Rationalization Programs
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Costs Associated with Rationalization Programs COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS
In order to improve our global competitiveness and as part of our execution of the Goodyear Forward transformation plan ("Goodyear Forward"), we have implemented, and are implementing, rationalization actions to reduce high-cost and excess manufacturing capacity and operating and administrative costs.
The following table presents a roll-forward of the liability balance between periods:
(In millions)Associate-
Related Costs		Other CostsTotal
Balance at December 31, 2024$396 $1 $397 
2025 Charges(1)
111 34 145 
Incurred, net of foreign currency translation of $38 million and $0 million, respectively
(132)(34)(166)
Reversed to the Statement of Operations(9)— (9)
Balance at June 30, 2025$366 $1 $367 
(1) Charges of $145 million exclude $4 million of benefit plan termination benefit charges recorded in Rationalizations in the Statement of Operations
During the second quarter of 2025, we approved a proposed plan to close our manufacturing facility in Kariega, South Africa in the EMEA business unit. The plan includes approximately 900 job reductions, including associates and contracted positions, and is expected to be substantially complete by the end of 2025. The total charges associated with this action are expected to be between $100 million and $110 million, of which $45 million to $55 million are expected to be cash charges primarily for associate-related and other exit costs and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges. The rationalization plan remains subject to consultation with employee representative bodies. We have accrued approximately $26 million for this plan at June 30, 2025.
During the first quarter of 2025, we approved a rationalization plan to eliminate our production of commercial tires in our Danville, Virginia tire manufacturing facility ("Danville") in order to reduce our production cost per tire in Americas. The plan includes approximately 850 job reductions, including associates and contracted positions. We expect to substantially complete this rationalization plan by the end of 2025. Total pre-tax charges are expected to be between $130 million and $140 million, of which $80 million to $90 million is expected to be cash charges primarily for associate-related and other exit costs and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation, pension termination benefit charges and other asset-related charges. We have approximately $23 million accrued for this plan at June 30, 2025.
During the first quarter of 2025, we approved a plan to reduce Selling, Administrative and General expenses (“SAG”) headcount in Americas and Corporate. The proposed plan includes approximately 80 net headcount reductions. Total estimated pre-tax charges are expected to be approximately $6 million. We have accrued approximately $2 million for this plan at June 30, 2025.
The remainder of the accrual balance at June 30, 2025 includes $219 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $56 million related to a
rationalization and workforce reorganization plan in EMEA, which reflects $7 million of reversals due to voluntary attrition, $7 million related to the plan to open a shared service center in Costa Rica and to exit certain Commercial Tire and Service Center ("CTSC") locations, $5 million related to the closed Amiens, France tire manufacturing facility, $4 million related to a global workforce reorganization plan to improve our cost structure, $3 million related to plans to reduce SAG headcount, $2 million related to the closure of Cooper Tire's Melksham, United Kingdom tire manufacturing facility ("Melksham"), and various other plans to reduce headcount and improve operating efficiency.
At June 30, 2025 and December 31, 2024, $291 million and $296 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:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2025202420252024
Current Year Plans
Associate Severance and Other Related Costs$32 $13 $89 $23 
Benefit Plan Curtailments/Settlements/Termination Benefits— — 4 — 
Other Exit Costs2 1 6 1 
Current Year Plans - Net Charges$34 $14 $99 $24 
Prior Year Plans
Associate Severance and Other Related Costs$10 $(9)$13 $(8)
Other Exit Costs15 14 28 25 
Prior Year Plans - Net Charges$25 $5 $41 $17 
Total Net Charges$59 $19 $140 $41 
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net$41 $43 $87 $94 
Substantially all of the new charges for the three and six months ended June 30, 2025 and 2024 relate to future cash outflows. Net current year plan charges for the three months ended June 30, 2025 primarily relate to the plans approved during the first and second quarter of 2025 described above. Net current year plan charges for the six months ended June 30, 2025 also include a $4 million termination benefits charge for one of our defined benefit pension plans related to headcount reductions at Danville. Net current year plan charges for the three months ended June 30, 2024 primarily relate to the plan to open a new shared service center in Costa Rica. Net current year plan charges for the six months ended June 30, 2024 also include the closure of our tire manufacturing facility in Malaysia.
Net prior year plan charges for the three months ended June 30, 2025 include $15 million related to the closures of Fulda and Fürstenwalde, $5 million related to the rationalization and workforce reorganization plan in EMEA, $2 million related to the closure of Melksham, $2 million related to plans to reduce SAG headcount, $1 million related to our closure of certain retail and warehouse locations in Americas, and reversals of $3 million primarily related to voluntary attrition. Net prior year plan charges for the six months ended June 30, 2025 include $30 million related to the closures of Fulda and Fürstenwalde, $7 million related to the rationalization and workforce reorganization plan in EMEA, $3 million related to the closure of Melksham, $3 million related to plans to reduce SAG headcount, $2 million related to our closure of certain retail and warehouse locations in Americas, and reversals of $9 million primarily related to voluntary attrition. Net prior year plan charges for the three months ended June 30, 2024 include $6 million related to the closures of Fulda and Fürstenwalde, $3 million related to the closure of Melksham, $2 million related to a plan to improve profitability in Australia and New Zealand, $2 million related to a plan to streamline our EMEA distribution network, $1 million related to our closure of certain retail and warehouse locations in Americas, $1 million related to plans to reduce SAG headcount, and reversals of $12 million primarily related to voluntary attrition. Net prior year plan charges for the six months ended June 30, 2024 include $8 million related to the closures of Fulda and Fürstenwalde, $7 million related to the closure of Melksham, $3 million related to the plan in Australia and New Zealand, $3 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility, $2 million related to the plan to streamline our EMEA distribution network, $2 million related to the closure of certain retail and warehouse locations in Americas, $1 million related to plans to reduce SAG headcount, and reversals of $13 million related to voluntary attrition.
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and six months ended June 30, 2025 primarily relate to the announced closures of Fulda and Fürstenwalde, the plan to reduce our production capacity at Danville, and the proposed plan to close our manufacturing facility in South Africa.
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and six months ended June 30, 2024 primarily relate to the announced closures of our Fulda, Fürstenwalde and Malaysia tire manufacturing facilities, as well as the closure of a development center and warehouse in the U.S.
Ongoing rationalization plans had approximately $1,050 million in charges incurred prior to 2025 and have approximately $200 million in expected charges to be incurred in future periods.
Approximately 1,800 associates will be released under plans initiated in 2025, of which approximately 750 were released through June 30, 2025. In the first six months of 2025, approximately 700 associates were released under plans initiated in prior years. Approximately 2,700 associates remain to be released under all ongoing rationalization plans.