Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Expected Useful Lives of Property, Plant and Equipment Recorded at Cost and Depreciated or Amortized

Long-lived assets - Property, plant and equipment are recorded at cost and depreciated or amortized using the straight-line or accelerated methods over the following expected useful lives:


Buildings and improvements		10 to 40 years
Machinery and equipment		5 to 14 years
Furniture and fixtures		5 to 10 years
Molds, cores and rings		4 to 10 years

Computation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:


(Number of shares and dollar amounts in thousands except per share amounts)
	2012		2013		2014
Numerator
Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders	$	220,371	$	111,013	$	213,578

Denominator
Denominator for basic earnings per share - weighted average shares outstanding		62,561		63,327		61,402

Effect of dilutive securities - stock options and other stock units		663		955		999


Denominator for diluted earnings per share - adjusted weighted average shares outstanding		63,224		64,282		62,401


Basic earnings per share:
Net income attributable to Cooper Tire & Rubber Company common stockholders	$	3.52	$	1.75	$	3.48


Diluted earnings per share:
Net income attributable to Cooper Tire & Rubber Company common stockholders	$	3.49	$	1.73	$	3.42

Summary of Activity in Product Warranty Liabilities

The following table summarizes the activity in the Company’s product warranty liabilities which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Consolidated Balance Sheets:


	2012			2013			2014
Reserve at January 1	$	27,400		$	30,139		$	30,853
Additions		23,184			19,677			17,413
Payments		(20,445	)		(18,963	)		(19,112	)
Decrease due to sale of interest in subsidiary		—			—			(15,149	)

Reserve at December 31	$	30,139		$	30,853		$	14,005