v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
Segment information reflects our strategic business units (“SBUs”), which are organized to meet customer requirements and global competition. For the three and six months ended June 30, 2026, we operated our business through operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa; and Asia Pacific. Segment information is reported on the basis used for reporting to our Chief Executive Officer. Each of the SBUs is involved in the development, manufacture, distribution and sale of tires. Certain of the SBUs also provide related products and services, which include retreads and automotive and commercial truck maintenance and repair services.
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 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.
The following tables present segment sales, significant segment expenses and segment operating income (loss), and the reconciliation of segment operating income (loss) to Income (Loss) before Income Taxes:
Three Months Ended June 30, 2026
(In millions)AmericasEurope, Middle East and AfricaAsia PacificTotal
Net Sales$2,382 $1,372 $496 $4,250 
Less:
Cost of Goods Sold2,035 1,157 369 3,561 
Selling, Administrative and General Expense367 239 66 672 
Other (income) expense(1)
(10)(7)(2)(19)
Segment Operating Income (Loss)
$(10)$(17)$63 $36 
Less:
Rationalizations (Note 3)
29 
Interest expense
105 
Other (income) expense (Note 4)
22 
Net (gains) losses on asset sales(17)
Corporate incentive compensation plans8 
Retained expenses of divested operations3 
Other(2)
47 
Income (Loss) before Income Taxes
$(161)
(1)Primarily represents OTR license agreement royalty income, in addition to transition services income related to the sales of the OTR tire business, the Dunlop brand and the chemical business.
(2)Primarily represents unallocated corporate costs and the elimination of royalty and other income attributable to the SBUs.
Three Months Ended June 30, 2025
(In millions)AmericasEurope, Middle East and AfricaAsia PacificTotal
Net Sales$2,662 $1,344 $459 $4,465 
Less:
Cost of Goods Sold2,166 1,153 350 3,669 
Selling, Administrative and General Expense362 221 69 652 
Other (income) expense(1)
(7)(5)(3)(15)
Segment Operating Income (Loss)
$141 $(25)$43 $159 
Less:
Rationalizations (Note 3)
59 
Interest expense
112 
Other (income) expense (Note 4)
31 
Net (gains) losses on asset sales(439)
Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 3)
41 
Corporate incentive compensation plans20 
Retained expenses of divested operations1 
Other(2)
29 
Income (Loss) before Income Taxes$305 
(1)Primarily represents OTR transition license agreement royalty income, in addition to transition services income related to the sales of the OTR tire business and the Dunlop brand.
(2)Primarily represents unallocated corporate costs and the elimination of royalty and other income attributable to the SBUs.
Six Months Ended June 30, 2026
(In millions)AmericasEurope, Middle East and AfricaAsia PacificTotal
Net Sales$4,445 $2,735 $951 $8,131 
Less:
Cost of Goods Sold3,727 2,306 707 6,740 
Selling, Administrative and General Expense710 460 128 1,298 
Other (income) expense(1)
(19)(15)(4)(38)
Segment Operating Income (Loss)
$27 $(16)$120 $131 
Less:
Rationalizations (Note 3)
133 
Interest expense
200 
Other (income) expense (Note 4)
31 
Net (gains) losses on asset sales(20)
Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 3)
16 
Corporate incentive compensation plans31 
Retained expenses of divested operations6 
Other(2)
75 
Income (Loss) before Income Taxes$(341)
(1)Primarily represents OTR license agreement royalty income, in addition to transition services income related to the sales of the OTR tire business, the Dunlop brand and the chemical business.
(2)Primarily represents unallocated corporate costs and the elimination of royalty and other income attributable to the SBUs.
Six Months Ended June 30, 2025
(In millions)AmericasEurope, Middle East and AfricaAsia PacificTotal
Net Sales$5,164 $2,621 $933 $8,718 
Less:
Cost of Goods Sold4,189 2,235 718 7,142 
Selling, Administrative and General Expense693 424 131 1,248 
Other (income) expense(1)
(14)(8)(4)(26)
Segment Operating Income (Loss)
$296 $(30)$88 $354 
Less:
Rationalizations (Note 3)
140 
Interest expense
227 
Other (income) expense (Note 4)
56 
Net (gains) losses on asset sales(701)
Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 3)
87 
Corporate incentive compensation plans36 
Retained expenses of divested operations3 
Other(2)
70 
Income (Loss) before Income Taxes$436 
(1)Primarily represents OTR license agreement royalty income, in addition to transition services income related to the sales of the OTR tire business and the Dunlop brand.
(2)Primarily represents unallocated corporate costs and the elimination of royalty income attributable to the SBUs.
The following table presents segment assets:
(In millions)June 30,
2026		December 31,
2025
Assets
Americas$10,586 $10,275 
Europe, Middle East and Africa4,899 4,878 
Asia Pacific2,182 2,166 
Total Segment Assets$17,667 $17,319 
Corporate983 889 
$18,650 $18,208 
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. For net sales, only the United States and Luxembourg were considered to be significant. For long-lived assets, only the United States and China were considered to be significant.
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Net Sales
United States$1,973 $2,234 $3,624 $4,286 
Luxembourg472 384 926 $695 
Other international1,805 1,847 3,581 3,737 
$4,250 $4,465 $8,131 $8,718 
(In millions)June 30,
2026		December 31,
2025
Long-Lived Assets
United States$3,304 $3,435 
China629 645 
Other international3,665 3,763 
$7,598 $7,843 
Rationalizations, as described in Note to the Consolidated Financial Statements No. 3, Costs Associated with Rationalization Programs; net (gains) losses on asset sales, and asset write-offs, accelerated depreciation and accelerated lease costs were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Rationalizations
Americas$3 $10 $14 $72 
Europe, Middle East and Africa23 43 108 55 
Asia Pacific2 — 3 1 
Total Segment Rationalizations$28 $53 $125 $128 
Corporate1 6 8 12 
$29 $59 $133 $140 
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Net (Gains) Losses on Asset Sales
Americas$(14)$— $(14)$(1)
Europe, Middle East and Africa(2)1 (3)— 
Asia Pacific— (55)— (55)
Total Segment (Gains) Losses on Asset Sales$(16)$(54)$(17)$(56)
Corporate(1)(385)(3)(645)
$(17)$(439)$(20)$(701)
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net
Americas$— $14 $7 $42 
Europe, Middle East and Africa— 26 8 42 
Asia Pacific— 1 1 3 
Total Segment Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, net$— $41 $16 $87 
The following tables present segment capital expenditures and depreciation and amortization:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Capital Expenditures
Americas$120 $151 $223 $327 
Europe, Middle East and Africa37 33 79 92 
Asia Pacific7 23 26 44 
Total Segment Capital Expenditures$164 $207 $328 $463 
Corporate3 — 14 3 
$167 $207 $342 $466 
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Depreciation and Amortization
Americas$135 $153 $275 $316 
Europe, Middle East and Africa62 82 121 149 
Asia Pacific28 29 58 60 
Total Segment Depreciation and Amortization$225 $264 $454 $525 
Corporate10 10 20 19 
$235 $274 $474 $544 
The following table presents segment equity in the net (income) loss of investees accounted for by the equity method:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Equity in (Income) Loss
Americas$13 $8 $29 $26 
Europe, Middle East and Africa— (1)— (1)
Asia Pacific(2)(4)(5)(7)
Total Segment Equity in (Income) Loss
$11 $3 $24 $18