In order to improve our global competitiveness, we have implemented, and are implementing, rationalization actions to reduce high-cost and excess manufacturing capacity and operating and administrative costs.


(In millions)	Associate- Related Costs		Other Costs		Total
Balance at December 31, 2025	$	194	$	1	$	195
2026 Charges	105		36		141
Incurred, net of foreign currency translation of ($4) million and $0 million, respectively	(92)		(35)		(127)
Reversed to the Statement of Operations	(8)		—		(8)
Balance at June 30, 2026	$	199	$	2	$	201

During the second quarter of 2026, we approved a plan to reduce headcount globally. The plan includes approximately 200 net headcount reductions. Total pre-tax charges of $19 million were recorded in the second quarter of 2026, primarily for associate-related and other exit costs.

During the first quarter of 2026, we approved a rationalization plan in EMEA to improve its cost structure as part of actions we expect to take in order to streamline its sales and distribution model and simplify business processes. The plan includes approximately 400 net headcount reductions. In certain countries, relevant portions of the rationalization plan remain subject to consultation with employee representative bodies. Total pre-tax charges are expected to be primarily cash charges between $100 million and $110 million, of which $75 million to $85 million are for associate-related and other exit costs. We expect these actions to be substantially complete in 2028. We have accrued approximately $69 million for this plan at June 30, 2026.

During the first quarter of 2026, we approved a plan to reduce Selling, Administrative and General Expense ("SAG") headcount globally. The plan includes approximately 100 net headcount reductions. The total pre-tax charges associated with these actions are expected to be approximately $10 million, primarily for associate-related and other exit costs. We have accrued approximately $6 million for this plan at June 30, 2026.

During the first quarter of 2026, we approved a plan in Americas to consolidate mold operations and close the Tall Timbers mold plant in Findlay, Ohio ("Tall Timbers"). The plan includes approximately 100 net headcount reductions. The total pre-tax charges associated with these actions are expected to be approximately $13 million, primarily for associate-related and other exit costs. We have accrued approximately $2 million for this plan at June 30, 2026.

The remainder of the accrual balance at June 30, 2026 includes $61 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities, $13 million related to a rationalization and workforce reorganization plan in EMEA, $8 million for the plan to eliminate commercial tire production at our Danville, Virginia ("Danville") tire manufacturing facility, $7 million related to the plan to reduce headcount in our Fayetteville, North Carolina ("Fayetteville") tire manufacturing facility, $5 million related to the closed Amiens, France tire

manufacturing facility, $4 million related to a global workforce reorganization plan to improve our cost structure, and $1 million related to the closure of our Kariega, South Africa ("Kariega") tire manufacturing facility.

At June 30, 2026 and December 31, 2025, $134 million and $131 million were recorded in Other Current Liabilities in the Consolidated Balance Sheets, respectively.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Current Year Plans
Associate Severance and Other Related Costs	$	19	$	32	$	103	$	89
Benefit Plan Curtailments/Settlements/Termination Benefits	—		—		—		4
Other Exit Costs	1		2		2		6
Current Year Plans - Net Charges	$	20	$	34	$	105	$	99

Prior Year Plans
Associate Severance and Other Related Costs	$	(4)	$	10	$	(6)	$	13
Other Exit Costs	13		15		34		28
Prior Year Plans - Net Charges	$	9	$	25	$	28	$	41
Total Net Charges	$	29	$	59	$	133	$	140
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net	$	—	$	41	$	16	$	87

Substantially all of the new charges for the three and six months ended June 30, 2026 and 2025 relate to future cash outflows. Net current year plan charges for the three and six months ended June 30, 2026 primarily relate to plans approved during the first and second quarters of 2026 described above. Net current year plan charges for the three months ended June 30, 2025 primarily relate to the elimination of commercial tire production at Danville and the closure of our manufacturing facility in Kariega. Net current year plan charges for the six months ended June 30, 2025 also include a $4 million termination benefits charge for one of our defined benefit pension plans related to headcount reductions at Danville.

Net prior year plan charges for both the three and six months ended June 30, 2026 and 2025 primarily relate to the closures of Fulda and Fürstenwalde.

Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for the six months ended June 30, 2026 primarily relate to the announced closures of the Tall Timbers mold plant as well as Fulda and Fürstenwalde.

Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and six months ended June 30, 2025 primarily relate to the closures of Fulda and Fürstenwalde, the elimination of commercial tire production at Danville, and the closure of Kariega.

Ongoing rationalization plans had approximately $950 million in charges incurred prior to 2026 and have approximately $50 million in expected charges to be incurred in future periods.

Approximately 800 associates will be released under plans initiated in 2026, of which approximately 250 were released through June 30, 2026. In the first six months of 2026, approximately 350 associates were released under plans initiated in prior years. Approximately 1,200 associates remain to be released under all ongoing rationalization plans.