GOODYEAR TIRE & RUBBER CO /OH/ [GT] Filings

10-Q 1 gt-20240930.htm 10-Q 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2024

Commission File Number: 1-1927

THE GOODYEAR TIRE & RUBBER COMPANY

(Exact Name of Registrant as Specified in Its Charter)

    Ohio

    34-0253240

    (State or Other Jurisdiction of
Incorporation or Organization)

    (I.R.S. Employer
Identification No.)


200 Innovation Way, Akron, Ohio		44316-0001
(Address of Principal Executive Offices)		(Zip Code)

(330) 796-2121

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

    Title of each class

    Trading
Symbol(s)

    Name of each exchange
on which registered

    Common Stock, Without Par Value

    GT

    The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

    Number of Shares of Common Stock,
Without Par Value, Outstanding at October 31, 2024:

    284,919,673

Table of Contents

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
	ITEM 1. FINANCIAL STATEMENTS
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
	ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
	ITEM 4. CONTROLS AND PROCEDURES
PART II. OTHER INFORMATION
	ITEM 1. LEGAL PROCEEDINGS
	ITEM 1A. RISK FACTORS
	ITEM 5. OTHER INFORMATION
EX-2.1
EX-10.1
EX-22.1
EX-31.1
EX-31.2
EX-32.1
EX-101.INS INSTANCE DOCUMENT
EX-101.SCH SCHEMA DOCUMENT
EX-104

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions, except per share amounts)	2024			2023			2024			2023
Net Sales (Note 2)	$	4,824		$	5,142		$	13,931		$	14,950
Cost of Goods Sold		3,881			4,171			11,218			12,487
Selling, Administrative and General Expense		663			673			2,090			2,045
Intangible Asset Impairment (Note 1)		125			—			125			—
Rationalizations (Note 3)		11			198			52			302
Interest Expense		135			138			391			403
Other (Income) Expense (Note 4)		34			21			(8	)		82
Income (Loss) before Income Taxes		(25	)		(59	)		63			(369	)
United States and Foreign Tax Expense (Note 5)		9			25			75			22
Net Income (Loss)		(34	)		(84	)		(12	)		(391	)
Less: Minority Shareholders’ Net Income (Loss)		—			5			(6	)		7
Goodyear Net Income (Loss)	$	(34	)	$	(89	)	$	(6	)	$	(398	)
Goodyear Net Income (Loss) — Per Share of Common Stock
Basic	$	(0.12	)	$	(0.31	)	$	(0.02	)	$	(1.40	)
Weighted Average Shares Outstanding (Note 6)		287			285			286			285
Diluted	$	(0.12	)	$	(0.31	)	$	(0.02	)	$	(1.40	)
Weighted Average Shares Outstanding (Note 6)		287			285			286			285

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In millions)	2024			2023			2024			2023
Net Income (Loss)	$	(34	)	$	(84	)	$	(12	)	$	(391	)
Other Comprehensive Income (Loss):
Foreign currency translation, net of tax of $3 and $0 in 2024 (($2) and $0 in 2023)		39			(46	)		(20	)		(13	)
Defined benefit plans:
Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $7 and $20 in 2024 ($6 and $19 in 2023)		21			20			62			61
Change in net actuarial losses, net of tax of ($1) and $6 in 2024 (($3) and $0 in 2023)		(3	)		(8	)		7			3
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax of $0 and ($1) in 2024 ($1 and $9 in 2023)		—			4			(4	)		32
Prior service credit from plan amendments, net of tax of $7 and $7 in 2024 ($0 and $0 in 2023)		21			—			21			—
Deferred derivative gains (losses), net of tax of $0 and $0 in 2024 ($0 and ($1) in 2023)		—			—			—			(4	)
Reclassification adjustment for amounts recognized in income, net of tax of $0 and $0 in 2024 ($0 and $0 in 2023)		—			1			1			1
Other Comprehensive Income (Loss)		78			(29	)		67			80
Comprehensive Income (Loss)		44			(113	)		55			(311	)
Less: Comprehensive Income (Loss) Attributable to Minority Shareholders		8			2			(2	)		6
Goodyear Comprehensive Income (Loss)	$	36		$	(115	)	$	57		$	(317	)

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30,			December 31,
(In millions, except share data)	2024			2023
Assets:
Current Assets:
Cash and Cash Equivalents	$	905		$	902
Accounts Receivable, less Allowance — $94 ($102 in 2023)		3,380			2,731
Inventories:
Raw Materials		796			785
Work in Process		212			206
Finished Products		2,804			2,707
		3,812			3,698
Assets Held for Sale (Note 1)		495			—
Prepaid Expenses and Other Current Assets		309			319
Total Current Assets		8,901			7,650
Goodwill (Note 1)		759			781
Intangible Assets (Note 1)		814			969
Deferred Income Taxes (Note 5)		1,662			1,630
Other Assets		1,147			1,075
Operating Lease Right-of-Use Assets		981			985
Property, Plant and Equipment, less Accumulated Depreciation — $12,515 ($12,472 in 2023)		8,285			8,492
Total Assets	$	22,549		$	21,582

Liabilities:
Current Liabilities:
Accounts Payable — Trade	$	4,050		$	4,326
Compensation and Benefits (Notes 10 and 11)		685			663
Other Current Liabilities		1,261			1,165
Notes Payable and Overdrafts (Note 8)		587			344
Operating Lease Liabilities due Within One Year		202			200
Long Term Debt and Finance Leases due Within One Year (Note 8)		1,013			449
Total Current Liabilities		7,798			7,147
Operating Lease Liabilities		829			825
Long Term Debt and Finance Leases (Note 8)		7,428			6,831
Compensation and Benefits (Notes 10 and 11)		877			974
Deferred Income Taxes (Note 5)		103			83
Other Long Term Liabilities		610			885
Total Liabilities		17,645			16,745
Commitments and Contingent Liabilities (Note 12)
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares — 285 million in 2024 (284 million in 2023)		285			284
Capital Surplus		3,152			3,133
Retained Earnings		5,080			5,086
Accumulated Other Comprehensive Loss (Note 14)		(3,772	)		(3,835	)
Goodyear Shareholders’ Equity		4,745			4,668
Minority Shareholders’ Equity — Nonredeemable		159			169
Total Shareholders’ Equity		4,904			4,837
Total Liabilities and Shareholders’ Equity	$	22,549		$	21,582

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


											Accumulated						Minority
											Other			Goodyear			Shareholders'			Total
	Common Stock				Capital			Retained			Comprehensive			Shareholders'			Equity — Non-			Shareholders'
(In millions, except share data)	Shares		Amount		Surplus			Earnings			Loss			Equity			Redeemable			Equity
Balance at December 31, 2023
(after deducting 40,501,644 common treasury shares)		283,786,263	$	284	$	3,133		$	5,086		$	(3,835	)	$	4,668		$	169		$	4,837
Net income (loss)									28						28			(6	)		22
Other comprehensive income (loss)												(7	)		(7	)		(4	)		(11	)
Total Comprehensive Income (Loss)															21			(10	)		11
Stock-based compensation plans						17									17						17
Dividends declared																		(7	)		(7	)
Common stock issued from treasury		900,744		1		(4	)								(3	)					(3	)
Balance at June 30, 2024
(after deducting 39,600,900 common treasury shares)		284,687,007	$	285	$	3,146		$	5,114		$	(3,842	)	$	4,703		$	152		$	4,855
Net income (loss)									(34	)					(34	)					(34	)
Other comprehensive income (loss)												70			70			8			78
Total comprehensive income (loss)															36			8			44
Stock-based compensation plans						6									6						6
Dividends declared																		(1	)		(1	)
Common stock issued from treasury		228,014
Balance at September 30, 2024
(after deducting 39,372,886 common treasury shares)		284,915,021	$	285	$	3,152		$	5,080		$	(3,772	)	$	4,745		$	159		$	4,904

There were no dividends declared or paid during the three and nine months ended September 30, 2024.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)


											Accumulated						Minority
											Other			Goodyear			Shareholders'			Total
	Common Stock				Capital			Retained			Comprehensive			Shareholders'			Equity — Non-			Shareholders'
(In millions, except share data)	Shares		Amount		Surplus			Earnings			Loss			Equity			Redeemable			Equity
Balance at December 31, 2022
(after deducting 41,391,555 common treasury shares)		282,896,352	$	283	$	3,117		$	5,775		$	(3,875	)	$	5,300		$	166		$	5,466
Net income (loss)									(309	)					(309	)		2			(307	)
Other comprehensive income (loss)												107			107			2			109
Total Comprehensive Income (Loss)															(202	)		4			(198	)
Stock-based compensation plans						9									9						9
Dividends declared																		(2	)		(2	)
Common stock issued from treasury		555,965				(2	)								(2	)					(2	)
Balance at June 30, 2023
(after deducting 40,835,590 common treasury shares)		283,452,317	$	283	$	3,124		$	5,466		$	(3,768	)	$	5,105		$	168		$	5,273
Net income (loss)									(89	)					(89	)		5			(84	)
Other comprehensive income (loss)												(26	)		(26	)		(3	)		(29	)
Total comprehensive income (loss)															(115	)		2			(113	)
Stock-based compensation plans						2									2						2
Dividends declared																		(2	)		(2	)
Common stock issued from treasury		93,390		1											1						1
Balance at September 30, 2023
(after deducting 40,742,200 common treasury shares)		283,545,707	$	284	$	3,126		$	5,377		$	(3,794	)	$	4,993		$	168		$	5,161

There were no dividends declared or paid during the three and nine months ended September 30, 2023.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
	September 30,
(In millions)	2024			2023
Cash Flows from Operating Activities:
Net Income (Loss)	$	(12	)	$	(391	)
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities:
Depreciation and Amortization		800			751
Amortization and Write-Off of Debt Issuance Costs		10

GOODYEAR TIRE & RUBBER CO /OH/ [GT] Filings
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10-Q	[2023-08-03]
10-Q	[2023-05-05]
10-K	[2023-02-13]
10-Q	[2022-11-01]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-14]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-04-30]
10-K	[2021-02-09]
10-Q	[2020-10-30]
10-Q	[2020-07-31]
10-Q	[2020-04-30]
10-K	[2020-02-11]
10-Q	[2019-10-25]
10-Q	[2019-07-26]
10-Q	[2019-04-26]
10-K	[2019-02-08]
10-Q	[2018-10-26]
10-Q	[2018-07-27]
10-Q	[2018-04-25]
10-K	[2018-02-08]
10-Q	[2017-10-27]
10-Q	[2017-07-28]
10-Q	[2017-04-28]
10-K	[2017-02-08]
10-Q	[2016-10-28]
10-Q	[2016-07-27]
10-Q	[2016-04-27]
10-K	[2016-02-09]
10-Q	[2015-10-29]
10-Q	[2015-07-29]
10-Q	[2015-04-29]
10-K	[2015-02-17]
10-Q	[2014-10-29]
10-Q	[2014-07-30]
10-Q	[2014-04-29]
10-K	[2014-02-13]
10-Q	[2013-10-29]
10-Q	[2013-07-30]
10-Q	[2013-04-26]
10-K	[2013-02-12]
10-Q	[2012-10-26]
10-Q	[2012-07-31]
10-Q	[2012-04-27]
10-K	[2012-02-14]