Consolidating Financial Information

12 Months Ended

Dec. 31, 2017

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 $1.0 billion outstanding principal amount of 5.125% senior notes due 2023, the $900 million outstanding principal amount of 5% senior notes due 2026 and the $700 million outstanding principal amount of 4.875% senior notes due 2027 (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 capital stock, loans and other capital transactions between members of the consolidated group.

During the first quarter of 2017, one of our guarantor subsidiaries merged with the Parent Company.  We have changed the prior year consolidating financial statements to conform to the current structure.  As a result, Parent Company Total Assets decreased $113 million and Guarantor Subsidiaries Total Assets decreased $358 million, with corresponding offsetting adjustments presented on the same line items in the Consolidating Entries and Eliminations column, as of December 31, 2016. In addition, Parent Company Total Liabilities decreased $113 million, Guarantor Subsidiaries Total Liabilities decreased $46 million and Guarantor Subsidiaries Total Shareholders' Equity decreased $312 million, with corresponding offsetting adjustments presented on the same line items in the Consolidating Entries and Eliminations column, as of December 31, 2016. Furthermore, Net Income increased $17 million and $1 million for Guarantor Subsidiaries, with corresponding offsetting adjustments presented on the same line items in the Consolidating Entries and Eliminations column, for the year ended December 31, 2016 and December 31, 2015, respectively. The change did not impact the Non-Guarantor Subsidiaries presentation in the previously issued consolidating financial statements.

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, 2017
(In millions)	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Entries and Eliminations			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	176	$	32	$	835	$	—		$	1,043
Accounts Receivable	649		116		1,260		—			2,025
Accounts Receivable From Affiliates	—		254		71		(325		)	—
Inventories	1,444		43		1,329		(29		)	2,787
Prepaid Expenses and Other Current Assets	59		3		157		5			224
Total Current Assets	2,328		448		3,652		(349		)	6,079
Goodwill	24		1		444		126			595
Intangible Assets	119		—		20		—			139
Deferred Income Taxes	1,549		35		424		—			2,008
Other Assets	221		51		518		2			792
Investments in Subsidiaries	4,424		503		—		(4,927		)	—
Property, Plant and Equipment	2,491		420		4,569		(29		)	7,451
Total Assets	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	927	$	115	$	1,765	$	—		$	2,807
Accounts Payable to Affiliates	325		—		—		(325		)	—
Compensation and Benefits	322		15		202		—			539
Other Current Liabilities	323		2		701		—			1,026
Notes Payable and Overdrafts	—		—		262		—			262
Long Term Debt and Capital Leases Due Within One Year	60		—		331		—			391
Total Current Liabilities	1,957		132		3,261		(325		)	5,025
Long Term Debt and Capital Leases	3,544		152		1,380		—			5,076
Compensation and Benefits	682		109		724		—			1,515
Deferred Income Taxes	—		1		99		—			100
Other Long Term Liabilities	370		8		120		—			498
Total Liabilities	6,553		402		5,584		(325		)	12,214
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	240		—		—		—			240
Other Equity	4,363		1,056		3,796		(4,852		)	4,363
Goodyear Shareholders’ Equity	4,603		1,056		3,796		(4,852		)	4,603
Minority Shareholders’ Equity — Nonredeemable	—		—		247		—			247
Total Shareholders’ Equity	4,603		1,056		4,043		(4,852		)	4,850
Total Liabilities and Shareholders’ Equity	$	11,156	$	1,458	$	9,627	$	(5,177	)	$	17,064

	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	$	188	$	55	$	889	$	—		$	1,132
Accounts Receivable	589		106		1,074		—			1,769
Accounts Receivable From Affiliates	—		277		270		(547		)	—
Inventories	1,443		25		1,178		(19		)	2,627
Prepaid Expenses and Other Current Assets	57		3		130		—			190
Total Current Assets	2,277		466		3,541		(566		)	5,718
Goodwill	24		—		391		120			535
Intangible Assets	118		—		18		—			136
Deferred Income Taxes	2,010		31		373		—			2,414
Other Assets	223		53		387		5			668
Investments in Subsidiaries	4,344		541		—		(4,885		)	—
Property, Plant and Equipment	2,481		308		4,279		(28		)	7,040
Total Assets	$	11,477	$	1,399	$	8,989	$	(5,354	)	$	16,511
Liabilities:
Current Liabilities:
Accounts Payable-Trade	$	905	$	142	$	1,542	$	—		$	2,589
Accounts Payable to Affiliates	547		—		—		(547		)	—
Compensation and Benefits	365		15		204		—			584
Other Current Liabilities	355		—		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	2,178		157		3,032		(550		)	4,817
Long Term Debt and Capital Leases	3,685		—		1,113		—			4,798
Compensation and Benefits	682		98		680		—			1,460
Deferred Income Taxes	—		1		84		—			85
Other Long Term Liabilities	425		12		188		1			626
Total Liabilities	6,970		268		5,097		(549		)	11,786
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock	252		—		—		—			252
Other Equity	4,255		1,131		3,674		(4,805		)	4,255
Goodyear Shareholders’ Equity	4,507		1,131		3,674		(4,805		)	4,507
Minority Shareholders’ Equity — Nonredeemable	—		—		218		—			218
Total Shareholders’ Equity	4,507		1,131		3,892		(4,805		)	4,725
Total Liabilities and Shareholders’ Equity	$	11,477	$	1,399	$	8,989	$	(5,354	)	$	16,511

	Consolidating Statements of Operations
	Year Ended December 31, 2017
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,378		$	1,186		$	9,499		$	(2,686	)	$	15,377
Cost of Goods Sold	5,794			1,135			7,546			(2,756		)	11,719
Selling, Administrative and General Expense	991			37			1,274			—			2,302
Rationalizations	20			1			114			—			135
Interest Expense	254			10			122			(51		)	335
Other (Income) Expense	(91		)	(1		)	(30		)	130			8
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	410			4			473			(9		)	878
United States and Foreign Tax (Benefit) Expense	417			(2		)	101			(3		)	513
Equity in Earnings (Loss) of Subsidiaries	353			39			—			(392		)	—
Net Income (Loss)	346			45			372			(398		)	365
Less: Minority Shareholders’ Net Income	—			—			19			—			19
Goodyear Net Income (Loss)	$	346		$	45		$	353		$	(398	)	$	346
Comprehensive Income (Loss)	$	568		$	62		$	656		$	(683	)	$	603
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			35			—			35
Goodyear Comprehensive Income (Loss)	$	568		$	62		$	621		$	(683	)	$	568

	Year Ended December 31, 2016
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	7,418		$	1,265		$	9,121		$	(2,646	)	$	15,158
Cost of Goods Sold	5,498			1,218			6,971			(2,715		)	10,972
Selling, Administrative and General Expense	1,068			38			1,302			(1		)	2,407
Rationalizations	20			—			190			—			210
Interest Expense	276			12			129			(45		)	372
Other (Income) Expense	(46		)	1			(52		)	87			(10		)
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries	602			(4		)	581			28			1,207
United States and Foreign Tax (Benefit) Expense	104			(7		)	(180		)	6			(77		)
Equity in Earnings (Loss) of Subsidiaries	766			122			—			(888		)	—
Net Income (Loss)	1,264			125			761			(866		)	1,284
Less: Minority Shareholders’ Net Income	—			—			20			—			20
Goodyear Net Income (Loss)	$	1,264		$	125		$	741		$	(866	)	$	1,264
Comprehensive Income (Loss)	$	1,076		$	55		$	585		$	(632	)	$	1,084
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			8			—			8
Goodyear Comprehensive Income (Loss)	$	1,076		$	55		$	577		$	(632	)	$	1,076

	Consolidating Statements of Operations
	Year Ended December 31, 2015
(In millions)	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Entries and Eliminations			Consolidated
Net Sales	$	8,044		$	1,558		$	10,308		$	(3,467	)	$	16,443
Cost of Goods Sold	6,186			1,458			8,090			(3,570		)	12,164
Selling, Administrative and General Expense	1,168			57			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	419			34			145			10			608
United States and Foreign Tax (Benefit) Expense	104			10			112			6			232
Equity in Earnings (Loss) of Subsidiaries	(8		)	19			—			(11		)	—
Net Income (Loss)	307			43			33			(7		)	376
Less: Minority Shareholders’ Net Income	—			—			69			—			69
Goodyear Net Income (Loss)	$	307		$	43		$	(36	)	$	(7	)	$	307
Comprehensive Income (Loss)	$	535		$	55		$	46		$	(95	)	$	541
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders	—			—			32			(26		)	6
Goodyear Comprehensive Income (Loss)	$	535		$	55		$	14		$	(69	)	$	535

	Condensed Consolidating Statement of Cash Flows
	Year Ended December 31, 2017
(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	$	1,192		$	67		$	577		$	(678	)	$	1,158
Cash Flows from Investing Activities:
Capital Expenditures	(305		)	(136		)	(442		)	2			(881		)
Asset Dispositions	1			1			10			—			12
Short Term Securities Acquired	—			—			(83		)	—			(83		)
Short Term Securities Redeemed	—			—			83			—			83
Capital Contributions Received and Loans Incurred	(79		)	—			(292		)	371			—
Capital Redemptions and Loans Paid	76			—			563			(639		)	—
Other Transactions	(3		)	—			(7		)	—			(10		)
Total Cash Flows from Investing Activities	(310		)	(135		)	(168		)	(266		)	(879		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	420			—			634			—			1,054
Short Term Debt and Overdrafts Paid	(420		)	—			(626		)	—			(1,046		)
Long Term Debt Incurred	3,062			204			3,197			—			6,463
Long Term Debt Paid	(3,151		)	(52		)	(3,139		)	—			(6,342		)
Common Stock Issued	14			—			—			—			14
Common Stock Repurchased	(400		)	—			—			—			(400		)
Common Stock Dividends Paid	(110		)	—			—			—			(110		)
Capital Contributions Received and Loans Incurred	292			66			13			(371		)	—
Capital Redemptions and Loans Paid	(563		)	(48		)	(28		)	639			—
Intercompany Dividends Paid	—			(128		)	(548		)	676			—
Transactions with Minority Interests in Subsidiaries	—			—			(7		)	—			(7		)
Debt Related Costs and Other Transactions	(35		)	—			(6		)	—			(41		)
Total Cash Flows from Financing Activities	(891		)	42			(510		)	944			(415		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			3			54			—			57
Net Change in Cash, Cash Equivalents and Restricted Cash	(9		)	(23		)	(47		)	—			(79		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	210			55			924			—			1,189
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	201		$	32		$	877		$	—		$	1,110

	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	$	609		$	135		$	885		$	(72	)	$	1,557
Cash Flows from Investing Activities:
Capital Expenditures	(370		)	(107		)	(525		)	6			(996		)
Asset Dispositions	11			—			24			—			35
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	(453		)	(107		)	(947		)	528			(979		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	—			—			417			—			417
Short Term Debt and Overdrafts Paid	—			—			(228		)	—			(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	(46		)	—			6			—			(40		)
Total Cash Flows from Financing Activities	(307		)	(40		)	(73		)	(456		)	(876		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			—			(15		)	—			(15		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(151		)	(12		)	(150		)	—			(313		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	361			67			1,074			—			1,502
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	210		$	55		$	924		$	—		$	1,189

	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	$	1,043		$	126		$	612		$	(53	)	$	1,728
Cash Flows from Investing Activities:
Capital Expenditures	(322		)	(112		)	(558		)	9			(983		)
Asset Dispositions	48			—			14			—			62
Decrease in Cash Due to Deconsolidation of Venezuelan Subsidiary	—			—			(320		)	—			(320		)
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	(222		)	(112		)	(844		)	(78		)	(1,256		)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred	39			—			118			(54		)	103
Short Term Debt and Overdrafts Paid	(15		)	—			(123		)	54			(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	(59		)	—			(15		)	—			(74		)
Dissolution of Global Alliance	(271		)	—			—			—			(271		)
Total Cash Flows from Financing Activities	(1,141		)	(20		)	4			131			(1,026		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	—			(13		)	(112		)	—			(125		)
Net Change in Cash, Cash Equivalents and Restricted Cash	(320		)	(19		)	(340		)	—			(679		)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year	681			86			1,414			—			2,181
Cash, Cash Equivalents and Restricted Cash at End of the Year	$	361		$	67		$	1,074		$	—		$	1,502