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.


(In millions)	Associate- Related Costs		Other Costs		Total
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
2024 charges	66		65		131
Incurred, net of foreign currency translation of $(24) million and $(1) million, respectively	(143)		(80)		(223)
Reversed to the Statement of Operations	(45)		—		(45)
Balance at December 31, 2024	$	396	$	1	$	397
2025 charges(1)	135		76		211
Incurred, net of foreign currency translation of $38 million and $1 million, respectively	(316)		(76)		(392)
Reversed to the Statement of Operations	(21)		—		(21)
Balance at December 31, 2025	$	194	$	1	$	195
(1) Charges of $211 million exclude $4 million of benefit plan termination benefit charges recorded in Rationalizations in the Statement of Operations.

During the fourth quarter of 2025, we approved a plan to reduce headcount in our Fayetteville, North Carolina tire manufacturing facility. The proposed plan includes approximately 300 net headcount reductions. Total estimated pre-tax charges are expected to be approximately $17 million. We have accrued approximately $10 million for this plan at December 31, 2025.

During the second quarter of 2025, we approved a plan to close our manufacturing facility in Kariega, South Africa in the EMEA business unit in the third quarter of 2025. The plan includes approximately 900 job reductions, including associates and contracted positions. 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. We have accrued approximately $4 million for this plan at December 31, 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 the second quarter of 2025 in order to reduce our production cost per tire in Americas. The plan includes approximately 950 job reductions, including associates and contracted positions. Total pre-tax charges are expected to be between $150 million and $160 million, of which $70 million to $80 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, pension termination benefit charges and other asset-related charges. We have accrued approximately $13 million for this plan at December 31, 2025.

During the first quarter of 2025, we approved a plan to reduce SAG headcount in Americas and Corporate. The plan includes approximately 80 net headcount reductions. Total estimated pre-tax charges are expected to be approximately $6 million. We have accrued approximately $1 million for this plan at December 31, 2025.

The remainder of the accrual balance at December 31, 2025 includes $102 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $41 million related to a rationalization and workforce reorganization plan in EMEA, which reflects $13 million of reversals due to voluntary attrition, $5 million related to the closed Amiens, France tire manufacturing facility, and various other plans to reduce headcount and improve operating efficiency.


(In millions)	2025		2024		2023
Current Year Plans
Associate Severance and Other Related Costs	$	106	$	30	$	449
Benefit Plan Curtailments/Settlements/Termination Benefits	4		—		1
Other Exit Costs	13		5		23
Current Year Plans - Net Charges	$	123	$	35	$	473
Prior Year Plans
Associate Severance and Other Related Costs	$	8	$	(9)	$	(5)
Other Exit Costs	63		60		34
Prior Year Plans - Net Charges	$	71	$	51	$	29
Total Net Charges	$	194	$	86	$	502
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net	$	160	$	146	$	36

Substantially all of the new charges in 2025 relate to future cash outflows. Current year plan charges for the year ended December 31, 2025 relate to the new plans approved during 2025 that are described above.

Net prior year plan charges for the year ended December 31, 2025 include $61 million related to the closures of Fulda and Fürstenwalde, $9 million related to the rationalization and workforce reorganization plan in EMEA, $5 million related to the closure of our Melksham, United Kingdom tire manufacturing facility ("Melksham"), $4 million related to plans to reduce SAG headcount, $4 million related to the closure of certain retail and warehouse locations in Americas, $3 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, and reversals of $20 million primarily related to voluntary attrition in our rationalization and workforce reorganization plan in EMEA.

Approximately 2,200 associates will be released under new plans initiated in 2025, of which approximately 1,750 were released through December 31, 2025. In 2025, approximately 1,800 associates were released under plans initiated in prior years. Approximately 1,000 associates remain to be released under all ongoing rationalization plans.

Rationalization activities initiated in 2024 include current year charges primarily related to the plans to reduce SAG and manufacturing costs, a plan to open a shared service center in Costa Rica and to exit certain CTSC locations and the closure of our Malaysia tire manufacturing facility. Net prior year plan charges recognized in the year ended December 31, 2024 include $52 million related to the closures of Fulda and Fürstenwalde, $15 million related to the rationalization and workforce organization plan in EMEA, $11 million related to the closure of Melksham, $4 million related to the closure of certain retail and warehouse locations in Americas, $3 million related to the permanent closure of our Gadsden, Alabama tire manufacturing facility ("Gadsden"), $3 million related to a plan to reduce SAG headcount globally, $3 million related to the plan to streamline our EMEA distribution network, and reversals of $45 million primarily related to voluntary attrition in our rationalization and workforce reorganization plan in EMEA.

Rationalization activities initiated in 2023 include current year charges primarily related to the Goodyear Forward plan that resulted in the closure of certain retail and warehouse locations, primarily in Americas, the rationalization and workforce reorganization plan in EMEA to improve our cost structure, the closures of Fulda and Fürstenwalde and a plan to improve profitability in Australia and New Zealand. 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 Gadsden, $2 million related to a plan in South Africa, and $2 million related to discontinued operations in Russia. Net prior plan charges also include reversals of $8 million for actions no longer needed for their originally intended purposes.

Asset write-off (recoveries), accelerated depreciation, and accelerated lease costs in 2025 primarily relate to the announced closures of our Fulda, Fürstenwalde and South Africa tire manufacturing facilities, and the announced elimination of commercial tire production at Danville. Asset write-off, accelerated depreciation, and accelerated lease charges for 2025 were primarily recorded in CGS.

Asset write-off (recoveries), accelerated depreciation, and accelerated lease costs in 2024 primarily related to plans to improve our cost structure through the closures of our Fulda, Fürstenwalde and Malaysia tire manufacturing facilities, as

Asset write-off (recoveries) and accelerated depreciation in 2023 primarily related to the integration of Cooper Tire, the closure of Melksham, and the announced closures of Fulda and Fürstenwalde, partially offset by 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.