Year Ended December 31, | |||||||||||
(In millions, except per share amounts) | 2013 | 2012 | 2011 | ||||||||
Net Sales | $ | 8,324 | $ | 8,898 | $ | 9,027 | |||||
Cost of Goods Sold | 7,001 | 7,792 | 8,209 | ||||||||
Selling, Administrative and General Expense | 946 | 895 | 898 | ||||||||
Rationalizations | 6 | 38 | 70 | ||||||||
Interest Expense | 315 | 258 | 247 | ||||||||
Other (Income) Expense | (251 | ) | (152 | ) | (218 | ) | |||||
Income (Loss) before Income Taxes and Equity in Earnings of Subsidiaries | 307 | 67 | (179 | ) | |||||||
United States and Foreign Taxes | 22 | 23 | 37 | ||||||||
Equity in Earnings of Subsidiaries | 344 | 168 | 559 | ||||||||
Net Income | 629 | 212 | 343 | ||||||||
Less: Preferred Stock Dividends | 29 | 29 | 22 | ||||||||
Net Income available to Common Shareholders | $ | 600 | $ | 183 | $ | 321 | |||||
Net Income available to Common Shareholders — Per Share of Common Stock | |||||||||||
Basic | $ | 2.44 | $ | 0.75 | $ | 1.32 | |||||
Weighted Average Shares Outstanding | 246 | 245 | 244 | ||||||||
Diluted | $ | 2.28 | $ | 0.74 | $ | 1.26 | |||||
Weighted Average Shares Outstanding | 277 | 247 | 271 | ||||||||
Cash Dividends Declared Per Common Share | $ | 0.05 | $ | — | $ | — | |||||
Goodyear Comprehensive Income (Loss) | $ | 1,242 | $ | (362 | ) | $ | (378 | ) | |||
December 31, | |||||||
(Dollars in millions, except share data) | 2013 | 2012 | |||||
Assets | |||||||
Current Assets: | |||||||
Cash and Cash Equivalents | $ | 1,269 | $ | 802 | |||
Accounts Receivable, less allowance — $21 ($22 in 2012) | 872 | 905 | |||||
Inventories: | |||||||
Raw Materials | 204 | 290 | |||||
Work in Process | 55 | 56 | |||||
Finished Goods | 840 | 917 | |||||
1,099 | 1,263 | ||||||
Prepaid Expenses and Other Current Assets | 68 | 64 | |||||
Total Current Assets | 3,308 | 3,034 | |||||
Intangible Assets | 111 | 110 | |||||
Other Assets | 288 | 240 | |||||
Investments in Subsidiaries | 4,325 | 3,986 | |||||
Property, Plant and Equipment, less accumulated depreciation — $4,032 ($4,084 in 2012) | 2,242 | 2,260 | |||||
Total Assets | $ | 10,274 | $ | 9,630 | |||
Liabilities | |||||||
Current Liabilities: | |||||||
Accounts Payable-Trade | $ | 833 | $ | 779 | |||
Accounts Payable to Affiliates | 275 | 485 | |||||
Compensation and Benefits | 373 | 384 | |||||
Other Current Liabilities | 347 | 350 | |||||
Long Term Debt and Capital Leases Due Within One Year | 8 | 9 | |||||
Total Current Liabilities | 1,836 | 2,007 | |||||
Long Term Debt and Capital Leases | 4,377 | 3,462 | |||||
Compensation and Benefits | 1,613 | 2,941 | |||||
Deferred and Other Noncurrent Income Taxes | 65 | 41 | |||||
Other Long Term Liabilities | 777 | 809 | |||||
Total Liabilities | 8,668 | 9,260 | |||||
Commitments and Contingent Liabilities | |||||||
Shareholders’ Equity | |||||||
Preferred Stock, no par value: | |||||||
Authorized, 50 million shares, Outstanding shares — 10 million (10 million in 2012) | 500 | 500 | |||||
Common Stock, no par value: | |||||||
Authorized, 450 million shares, Outstanding shares — 248 million (245 million in 2012) | 248 | 245 | |||||
Capital Surplus | 2,847 | 2,815 | |||||
Retained Earnings | 1,958 | 1,370 | |||||
Accumulated Other Comprehensive Loss | (3,947 | ) | (4,560 | ) | |||
Total Shareholders’ Equity | 1,606 | 370 | |||||
Total Liabilities and Shareholders’ Equity | $ | 10,274 | $ | 9,630 | |||
THE GOODYEAR TIRE & RUBBER COMPANY PARENT COMPANY STATEMENTS OF SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | ||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Capital | Retained | Comprehensive | Shareholders' | ||||||||||||||||||||||||
(Dollars in millions) | Shares | Amount | Shares | Amount | Surplus | Earnings | Loss | Equity | |||||||||||||||||||||
Balance at December 31, 2010 | |||||||||||||||||||||||||||||
(after deducting 7,950,743 common treasury shares) | — | $ | — | 242,938,949 | $ | 243 | $ | 2,805 | $ | 866 | $ | (3,270 | ) | $ | 644 | ||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||
Net income | 343 | 343 | |||||||||||||||||||||||||||
Foreign currency translation (net of tax of $0) | (140 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax of $8) | 157 | ||||||||||||||||||||||||||||
Increase in net actuarial losses (net of tax benefit of $28) | (770 | ) | |||||||||||||||||||||||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of $1) | 18 | ||||||||||||||||||||||||||||
Deferred derivative gain (net of tax of $1) | 3 | ||||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax of $2) | 6 | ||||||||||||||||||||||||||||
Unrealized investment gains (net of tax of $0) | 5 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | (721 | ) | |||||||||||||||||||||||||||
Total comprehensive income (loss) | (378 | ) | |||||||||||||||||||||||||||
Stock-based compensation plans | 13 | 13 | |||||||||||||||||||||||||||
Preferred stock issued | 10,000,000 | 500 | (16 | ) | 484 | ||||||||||||||||||||||||
Preferred stock dividends declared | (22 | ) | (22 | ) | |||||||||||||||||||||||||
Common stock issued from treasury | 1,596,892 | 2 | 6 | 8 | |||||||||||||||||||||||||
Balance at December 31, 2011 | |||||||||||||||||||||||||||||
(after deducting 6,353,851 common treasury shares) | 10,000,000 | $ | 500 | 244,535,841 | $ | 245 | $ | 2,808 | $ | 1,187 | $ | (3,991 | ) | $ | 749 | ||||||||||||||
Balance at December 31, 2011 | |||||||||||||||||||||||||||||
(after deducting 6,353,851 common treasury shares) | 10,000,000 | $ | 500 | 244,535,841 | $ | 245 | $ | 2,808 | $ | 1,187 | $ | (3,991 | ) | $ | 749 | ||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||
Net income | 212 | 212 | |||||||||||||||||||||||||||
Foreign currency translation (net of tax of $0) | 51 | ||||||||||||||||||||||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax of $9) | 203 | ||||||||||||||||||||||||||||
Increase in net actuarial losses (net of tax benefit of $44) | (898 | ) | |||||||||||||||||||||||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of $1) | 9 | ||||||||||||||||||||||||||||
Prior service credit from plan amendments (net of tax of $3) | 72 | ||||||||||||||||||||||||||||
Deferred derivative loss (net of tax of $0) | (4 | ) | |||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax benefit of $3) | (7 | ) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (574 | ) | |||||||||||||||||||||||||||
Total comprehensive income (loss) | (362 | ) | |||||||||||||||||||||||||||
Purchase of subsidiary shares from minority interest | (13 | ) | 5 | (8 | ) | ||||||||||||||||||||||||
Stock-based compensation plans | 17 | 17 | |||||||||||||||||||||||||||
Preferred stock dividends declared | (29 | ) | (29 | ) | |||||||||||||||||||||||||
Common stock issued from treasury | 704,921 | — | 3 | 3 | |||||||||||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||||||||||||
(after deducting 5,648,930 common treasury shares) | 10,000,000 | $ | 500 | 245,240,762 | $ | 245 | $ | 2,815 | $ | 1,370 | $ | (4,560 | ) | $ | 370 | ||||||||||||||
THE GOODYEAR TIRE & RUBBER COMPANY PARENT COMPANY STATEMENTS OF SHAREHOLDERS’ EQUITY - (Continued) | |||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||
Other | Total | ||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Capital | Retained | Comprehensive | Shareholders' | ||||||||||||||||||||||||
(Dollars in millions) | Shares | Amount | Shares | Amount | Surplus | Earnings | Loss | Equity | |||||||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||||||||||||
(after deducting 5,648,930 common treasury shares) | 10,000,000 | $ | 500 | 245,240,762 | $ | 245 | $ | 2,815 | $ | 1,370 | $ | (4,560 | ) | $ | 370 | ||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||
Net income | 629 | 629 | |||||||||||||||||||||||||||
Foreign currency translation (net of tax of $0) | (153 | ) | |||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax of $0) | 1 | ||||||||||||||||||||||||||||
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost (net of tax of $9) | 224 | ||||||||||||||||||||||||||||
Decrease in net actuarial losses (net of tax of $33) | 498 | ||||||||||||||||||||||||||||
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures (net of tax of $1) | 2 | ||||||||||||||||||||||||||||
Prior service credit from plan amendments (net of tax of $0) | 30 | ||||||||||||||||||||||||||||
Deferred derivative gains (net of tax of $1) | 1 | ||||||||||||||||||||||||||||
Reclassification adjustment for amounts recognized in income (net of tax benefit of $0) | 2 | ||||||||||||||||||||||||||||
Unrealized investment gains (net of tax of $0) | 8 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | 613 | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 1,242 | ||||||||||||||||||||||||||||
Purchase of subsidiary shares from minority interest | (2 | ) | (2 | ) | |||||||||||||||||||||||||
Stock-based compensation plans | 15 | 15 | |||||||||||||||||||||||||||
Dividends declared | (41 | ) | (41 | ) | |||||||||||||||||||||||||
Common stock issued from treasury | 2,512,267 | 3 | 19 | 22 | |||||||||||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||||||
(after deducting 3,136,663 common treasury shares) | 10,000,000 | $ | 500 | 247,753,029 | $ | 248 | $ | 2,847 | $ | 1,958 | $ | (3,947 | ) | $ | 1,606 | ||||||||||||||
Year Ended December 31, | |||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||
Total Cash Flows from Operating Activities | $ | 17 | $ | 335 | $ | 260 | |||||
Cash Flows from Investing Activities: | |||||||||||
Capital Expenditures | (220 | ) | (231 | ) | (210 | ) | |||||
Asset Dispositions | 2 | 5 | 69 | ||||||||
Decrease in Restricted Cash | — | 1 | (1 | ) | |||||||
Capital Contributions and Loans Incurred | (91 | ) | (191 | ) | (14 | ) | |||||
Capital Redemptions and Loans Paid | 214 | 81 | — | ||||||||
Other Transactions | — | 4 | (1 | ) | |||||||
Total Cash Flows from Investing Activities | (95 | ) | (331 | ) | (157 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Short Term Debt and Overdrafts Incurred | 14 | — | — | ||||||||
Short Term Debt and Overdrafts Paid | (90 | ) | — | — | |||||||
Long Term Debt Incurred | 900 | 800 | 400 | ||||||||
Long Term Debt Paid | (11 | ) | (762 | ) | (750 | ) | |||||
Proceeds From Issuance of Preferred Stock | — | — | 484 | ||||||||
Preferred Stock Dividends Paid | (29 | ) | (29 | ) | (15 | ) | |||||
Common Stock Issued | 22 | 3 | 8 | ||||||||
Common Stock Dividends Paid | (12 | ) | — | — | |||||||
Capital Contributions and Loans Incurred | 170 | 150 | (101 | ) | |||||||
Capital Redemptions and Loans Paid | (403 | ) | (200 | ) | — | ||||||
Transactions with Minority Interests in Subsidiaries | — | (17 | ) | (3 | ) | ||||||
Debt Related Costs and Other Transactions | (16 | ) | (63 | ) | (2 | ) | |||||
Total Cash Flows from Financing Activities | 545 | (118 | ) | 21 | |||||||
Net Change in Cash and Cash Equivalents | 467 | (114 | ) | 124 | |||||||
Cash and Cash Equivalents at Beginning of the Year | 802 | 916 | 792 | ||||||||
Cash and Cash Equivalents at End of the Year | $ | 1,269 | $ | 802 | $ | 916 | |||||