v3.25.1
Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segments

NOTE 8. BUSINESS SEGMENTS

Results of operations are measured based on net sales to unaffiliated customers and segment operating income. Each segment exports tires to other segments. The financial results of each segment exclude sales of tires exported to other segments, but include operating income derived from such transactions. Segment operating income is computed as follows: Net sales less Cost of Goods Sold ("CGS") (excluding asset write-offs and accelerated depreciation charges) and SAG (including certain allocated corporate administrative expenses). Segment operating income also includes certain royalties and equity in earnings of most affiliates. Segment operating income does not include net rationalization charges, asset sales, goodwill and other asset impairment charges, and certain other items.

The chief operating decision maker ("CODM") is the Chief Executive Officer. The CODM uses segment operating income to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for the profit measure when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income or loss for evaluating product pricing and to assess the performance for each segment by comparing the results and return on assets of each segment with one another and in the compensation of certain employees.

The following tables present segment sales, significant segment expenses and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes:

 

 

Three Months Ended

 

 

March 31, 2025

 

(In millions)

 

Americas

 

 

Europe, Middle East and Africa

 

 

Asia Pacific

 

 

Total

 

Net Sales

 

$

2,502

 

 

$

1,277

 

 

$

474

 

 

$

4,253

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

2,023

 

 

 

1,082

 

 

 

368

 

 

 

3,473

 

Selling, Administrative and General Expense

 

 

331

 

 

 

203

 

 

 

62

 

 

 

596

 

Other (income)(1)

 

 

(7

)

 

 

(3

)

 

 

(1

)

 

 

(11

)

Segment Operating Income (Loss)

 

$

155

 

 

$

(5

)

 

$

45

 

 

$

195

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Rationalizations (Note 4)

 

 

 

 

 

 

 

 

 

 

 

81

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

115

 

Other (income) expense (Note 5)

 

 

 

 

 

 

 

 

 

 

 

25

 

Net (gains) losses on asset sales

 

 

 

 

 

 

 

 

 

 

 

(262

)

Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 4)

 

 

 

 

 

 

 

 

 

 

 

46

 

Corporate incentive compensation plans

 

 

 

 

 

 

 

 

 

 

 

16

 

Retained expenses of divested operations

 

 

 

 

 

 

 

 

 

 

 

5

 

Other(2)

 

 

 

 

 

 

 

 

 

 

 

38

 

Income (Loss) before Income Taxes

 

 

 

 

 

 

 

 

 

 

$

131

 
(1)
Primarily represents royalty income attributable to the SBUs, including royalty income earned from the OTR sale.
(2)
Primarily represents unallocated corporate costs and the elimination of royalty income attributable to the SBUs.

 

 

Three Months Ended

 

 

March 31, 2024

 

(In millions)

 

Americas

 

 

Europe, Middle East and Africa

 

 

Asia Pacific

 

 

Total

 

Net Sales

 

$

2,588

 

 

$

1,347

 

 

$

602

 

 

$

4,537

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

 

2,076

 

 

 

1,135

 

 

 

463

 

 

 

3,674

 

Selling, Administrative and General Expense

 

 

337

 

 

 

205

 

 

 

79

 

 

 

621

 

Other (income)(1)

 

 

(4

)

 

 

(1

)

 

 

—

 

 

 

(5

)

Segment Operating Income

 

$

179

 

 

$

8

 

 

$

60

 

 

$

247

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Rationalizations (Note 4)

 

 

 

 

 

 

 

 

 

 

 

22

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

126

 

Other (income) expense (Note 5)

 

 

 

 

 

 

 

 

 

 

 

28

 

Net (gains) losses on asset sales

 

 

 

 

 

 

 

 

 

 

 

2

 

Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 4)

 

 

 

 

 

 

 

 

 

 

 

51

 

Corporate incentive compensation plans

 

 

 

 

 

 

 

 

 

 

 

20

 

Retained expenses of divested operations

 

 

 

 

 

 

 

 

 

 

 

5

 

Other(2)

 

 

 

 

 

 

 

 

 

 

 

45

 

Income (Loss) before Income Taxes

 

 

 

 

 

 

 

 

 

 

$

(52

)

 

(1)
Primarily represents royalty income attributable to the SBUs.
(2)
Primarily represents unallocated corporate costs and the elimination of royalty income attributable to the SBUs. Other also includes $28 million of costs related to the Goodyear Forward plan, primarily related to third-party advisory, legal and consulting fees and costs associated with planned asset sales.

The following table presents segment assets:

 

March 31,

 

 

December 31,

 

(In millions)

 

2025

 

 

2024

 

Assets

 

 

 

 

 

 

Americas

 

$

11,724

 

 

$

11,406

 

Europe, Middle East and Africa

 

 

5,040

 

 

 

4,557

 

Asia Pacific

 

 

2,349

 

 

 

2,610

 

Total Segment Assets

 

 

19,113

 

 

 

18,573

 

Corporate(1)

 

 

2,598

 

 

 

2,391

 

 

$

21,711

 

 

$

20,964

 

 

(1)
Corporate includes substantially all of our U.S. net deferred tax assets.

The following table presents geographic information. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consist of property, plant and equipment. Management did not consider the net sales of any individual country outside the United States to be significant to the consolidated financial statements. For long-lived assets, only the United States and China were considered to be significant.

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Net Sales

 

 

 

 

 

 

United States

 

$

2,052

 

 

$

2,091

 

International

 

 

2,201

 

 

 

2,446

 

 

$

4,253

 

 

$

4,537

 

 

 

March 31,

 

 

December 31,

 

(In millions)

 

2025

 

 

2024

 

Long-Lived Assets

 

 

 

 

 

 

United States

 

$

3,839

 

 

$

3,688

 

China

 

 

664

 

 

 

676

 

Other international

 

 

3,626

 

 

 

3,718

 

 

$

8,129

 

 

$

8,082

 

Rationalizations, as described in Note to the Consolidated Financial Statements No. 4, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, as described in Note to the Consolidated Financial Statements No. 2, Divestitures; and asset write-offs, accelerated depreciation and accelerated leases costs were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Rationalizations

 

 

 

 

 

 

Americas

 

$

62

 

 

$

5

 

Europe, Middle East and Africa

 

 

12

 

 

 

6

 

Asia Pacific

 

 

1

 

 

 

11

 

Total Segment Rationalizations

 

$

75

 

 

$

22

 

Corporate

 

 

6

 

 

 

—

 

 

$

81

 

 

$

22

 

 

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Net (Gains) Losses on Asset Sales

 

 

 

 

 

 

Americas

 

$

(1

)

 

$

—

 

Europe, Middle East and Africa

 

 

(1

)

 

 

2

 

Total Segment (Gains) Losses on Asset Sales

 

$

(2

)

 

$

2

 

Corporate

 

 

(260

)

 

 

—

 

 

$

(262

)

 

$

2

 

 

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net

 

 

 

 

 

 

Americas

 

$

28

 

 

$

8

 

Europe, Middle East and Africa

 

 

16

 

 

 

16

 

Asia Pacific

 

 

2

 

 

 

7

 

Total Segment Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net

 

$

46

 

 

$

31

 

Corporate

 

 

—

 

 

 

20

 

 

$

46

 

 

$

51

 

The following tables present segment capital expenditures and depreciation and amortization:

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Capital Expenditures

 

 

 

 

 

 

Americas

 

$

176

 

 

$

208

 

Europe, Middle East and Africa

 

 

59

 

 

 

71

 

Asia Pacific

 

 

21

 

 

 

32

 

Total Segment Capital Expenditures

 

$

256

 

 

$

311

 

Corporate

 

 

3

 

 

 

7

 

 

$

259

 

 

$

318

 

 

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Depreciation and Amortization

 

 

 

 

 

 

Americas

 

$

163

 

 

$

163

 

Europe, Middle East and Africa

 

 

67

 

 

 

71

 

Asia Pacific

 

 

31

 

 

 

40

 

Total Segment Depreciation and Amortization

 

$

261

 

 

$

274

 

Corporate

 

 

9

 

 

 

10

 

 

$

270

 

 

$

284

 

The following table presents segment equity in the net (income) loss of investees accounted for by the equity method:

 

 

Three Months Ended

 

 

March 31,

 

(In millions)

 

2025

 

 

2024

 

Equity in (Income) Loss

 

 

 

 

 

 

Americas

 

$

18

 

 

$

10

 

Asia Pacific

 

 

(3

)

 

 

(2

)

Total Segment Equity in (Income) Loss

 

$

15

 

 

$

8