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(1)	217		69		286
Incurred, net of foreign currency translation of ($5) million and $0 million, respectively	(110)		(56)		(166)
Reversed to the Statement of Operations	(12)		—		(12)
Balance at September 30, 2026	$	289	$	14	$	303
(1)Charges of $286 million exclude $7 million of benefit plan termination benefit charges recorded in Rationalizations in the Consolidated Statement of Operations

During the third quarter of 2026, we approved a plan to reduce manufacturing expenses globally. The plan includes approximately 300 net job reductions. We expect these actions to be substantially complete by the end of 2027. Total pre-tax charges are expected to be approximately $30 million, of which approximately $15 million is expected to be cash charges for associate-related and other exit costs, and the remaining costs are expected to be asset-related charges. We have accrued approximately $16 million for this plan at September 30, 2026.

During the third quarter of 2026, we approved a plan to close our chemical manufacturing facilities in Niagara Falls, New York (“Niagara Falls”) and Bayport, Texas (“Bayport”). The plan includes approximately 85 job reductions. We expect these actions to be substantially complete by the end of 2027. Total pre-tax charges are expected to be between $55 million to $75 million, of which approximately $30 million is expected to be cash charges primarily for plant decommissioning and associate-related and other exit costs, and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges. We have accrued approximately $5 million for this plan at September 30, 2026.

During the third quarter of 2026, we approved a plan to permanently close our Fayetteville, North Carolina tire manufacturing facility ("Fayetteville"). The plan includes approximately 1,750 job reductions. We expect to substantially complete this rationalization plan by the end of 2027 and estimate the total pre-tax charges associated with this action to be between $535 million and $565 million, of which $190 million to $210 million are expected to be cash charges primarily for associate-related and other exit costs, and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges ($290 million to $310 million) and pension special termination benefits ($40 million to $50 million). We have accrued approximately $109 million for this plan at September 30, 2026.

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 are expected to be primarily cash charges of approximately $20 million for associate-related and other exit costs. We have accrued approximately $18 million for this plan at September 30, 2026.

During the first quarter of 2026, we approved a rationalization plan in Europe, Middle East and Africa ("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 $67 million for this plan at September 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 $4 million for this plan at September 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 $15 million, primarily for associate-related and other exit costs. We have accrued approximately $1 million for this plan at September 30, 2026.

The remainder of the accrual balance at September 30, 2026 primarily includes $60 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities and $11 million related to a rationalization and workforce reorganization plan in EMEA.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2026		2025		2026		2025
Current Year Plans
Associate Severance and Other Related Costs	$	114	$	6	$	217	$	95
Benefit Plan Curtailments/Settlements/Termination Benefits	7		—		7		4
Other Exit Costs	23		2		25		8
Current Year Plans - Net Charges	$	144	$	8	$	249	$	107

Prior Year Plans
Associate Severance and Other Related Costs	$	(6)	$	(2)	$	(12)	$	11
Other Exit Costs	10		15		44		43
Prior Year Plans - Net Charges	$	4	$	13	$	32	$	54
Total Net Charges	$	148	$	21	$	281	$	161
Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net	$	71	$	55	$	87	$	142

Substantially all of the new charges for the three and nine months ended September 30, 2026 and 2025 relate to future cash outflows. Net current year plan charges for the three and nine months ended September 30, 2026 primarily relate to plans approved during the first, second and third quarters of 2026 described above and also include a $7 million termination benefits charge for one of our defined benefit pension plans related to headcount reductions at Fayetteville. Net current year plan charges for the three months ended September 30, 2025 primarily relate to the elimination of commercial tire production at our Danville, Virginia tire manufacturing facility ("Danville") and the closure of our Kariega, South Africa tire manufacturing facility ("Kariega"). Net current year plan charges for the nine months ended September 30, 2025 also include a $4 million termination benefits charge for one of our defined benefit pension plans related to headcount reductions at Danville.

Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs for both the three and nine months ended September 30, 2026 primarily relate to the announced closures of Niagara Falls, Bayport, Fayetteville, Tall Timbers, Fulda and Fürstenwalde.

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

Approximately 2,950 associates will be released under plans initiated in 2026, of which approximately 450 were released through September 30, 2026. In the first nine months of 2026, approximately 550 associates were released under plans initiated in prior years. Approximately 2,950 associates remain to be released under all ongoing rationalization plans.