COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS

In order to maintain our global competitiveness, we have implemented rationalization actions over the past several years to reduce high-cost and excess manufacturing capacity and associate headcount.

The following table shows the roll-forward of our liability between periods:



				Other Exit and
(In millions)	Associate-			Non-cancelable
	Related Costs			Lease Costs			Total
Balance at December 31, 2016	$	214		$	5		$	219
2017 Charges	24			6			30
Incurred, Net of Foreign Currency Translation of $3 million and $0 million, respectively	(17		)	(6		)	(23		)
Reversed to the Statements of Operations	(1		)	—			(1		)
Balance at March 31, 2017	$	220		$	5		$	225

Rationalization actions accrued at March 31, 2017 include $111 million related to our announced plan to close our tire manufacturing facility in Philippsburg, Germany. The plan is in furtherance of our strategy to capture the growing demand for premium, large-rim diameter tires in part by reducing excess capacity in declining, less profitable segments of the tire market. The plan will result in approximately 890 job reductions. The charges related to the announced closure are expected to be paid through 2018.

The remainder of the accrual balance at March 31, 2017 is expected to be substantially utilized within the next 12 months and includes $25 million related to our global plan to reduce SAG headcount, $21 million related to manufacturing headcount reductions in certain countries in Europe, Middle East and Africa ("EMEA"), and $17 million related to a separate SAG headcount reduction plan in certain countries in EMEA.

The following table shows net rationalization charges included in Income before Income Taxes:



	Three Months Ended
(In millions)	March 31,
	2017		2016
Current Year Plans
Associate Severance and Other Related Costs	$	23	$	—
Current Year Plans - Net Charges	$	23	$	—

Prior Year Plans
Associate Severance and Other Related Costs	$	—	$	4
Other Exit and Non-Cancelable Lease Costs	6		7
Prior Year Plans - Net Charges	6		11
Total Net Charges	$	29	$	11

Asset Write-off and Accelerated Depreciation Charges	$	8	$	2

Substantially all of the new charges for the three months ended March 31, 2017 related to future cash outflows. Net current year plan charges for the three months ended March 31, 2017 include charges of $17 million related to SAG headcount reductions in certain countries in EMEA and $6 million related to a plan to improve operating efficiency in EMEA.

Net prior year plan charges for the three months ended March 31, 2017 include charges of $2 million related to the closure of our Wolverhampton, U.K. mixing and retreading facility and the plan to transfer consumer tire production from our manufacturing facility in Wittlich, Germany to other manufacturing facilities in EMEA and $2 million related to the announced plan to close our tire manufacturing facility in Philippsburg, Germany.

Net charges for the three months ended March 31, 2017 included reversals of $1 million for actions no longer needed for their originally intended purposes. Ongoing rationalization plans had approximately $595 million in charges incurred prior to 2017 and approximately $95 million is expected to be incurred in future periods.

Approximately 300 associates will be released under new plans initiated in 2017. In the first quarter of 2017, approximately 100 associates were released under plans initiated in prior years. In total, approximately 1,800 associates remain to be released under all ongoing rationalization plans.

Approximately 840 former associates of the closed Amiens, France manufacturing facility have asserted wrongful termination or other claims against us. Refer to Note to the Consolidated Financial Statements No. 11, Commitments and Contingent Liabilities, in this Form 10-Q.

Accelerated depreciation charges for the three months ended March 31, 2017 primarily related to the announced plan to close our tire manufacturing facility in Philippsburg, Germany. Accelerated depreciation charges for the three months ended March 31, 2016 primarily related to the plan to close our Wolverhampton, U.K. mixing and retreading facility. Asset write-off and accelerated depreciation charges for all periods were recorded in CGS.