120 added · 96 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
These decreases were partially offset by higher raw material costs of $443 million, higher conversion costs of $402 million, an increase in other costs of $138 million, primarily related to tariff and transportation costs, a net decrease of $62 million ($30 million after-tax and minority) from insurance proceeds for property damages and business interruptions received in 2024 and 2025, an increase in asset write-offs, accelerated depreciation and accelerated lease charges of $32 million, primarily related to the closures of our Fulda, Germany ("Fulda"), Fürstenwalde, Germany ("Fürstenwalde"), and Kariega, South Africa ("Kariega") tire manufacturing facilities and the elimination of commercial tire production at our Danville, Virginia tire manufacturing facility ("Danville"), and a benefit received in 2024 related to a reduction in U.S. duty rates on various commercial tires from China of $14 million.
The decrease in operating income was due to higher conversion costs of $305 million, driven by the effect of lower tire production on fixed cost absorption and inflation, higher raw material costs of $277 million, higher SAG of $136 million when excluding Goodyear Forward savings, an increase in other costs of $131 million, primarily related to tariff and transportation costs, a $92 million benefit received in 2024 related to insurance proceeds for property damage and business interruptions resulting from storm damage events in prior years, an d lower tire volume of $79 million.
Summarized Balance Sheet (In millions) December 31, 2025 Total Current Assets (1) $ 5,058 Total Non-Current Assets 5,948 Total Current Liabilities $ 3,121 Total Non-Current Liabilities 6,929 (1) Includes receivables due from Non-Guarantor Subsidiaries of $1,574 million as of December 31, 2025. 41 Table of Contents Summarized Statement of Operations (In millions) Year Ended December 31, 2025 Net Sales $ 10,348 Cost of Goods Sold 8,530 Selling, Administrative and General Expense 1,505 Goodwill Impairment 674 Rationalizations 133 Interest Expense 385 Other (Income) Expense (159) Net (Gain) Loss on Asset Sales (254) Income (Loss) before Income Taxes (2) $ (466) Net Income (Loss) (3) $ (1,851) Goodyear Net Income (Loss) (3) $ (1,851) (2) Includes income from intercompany transactions with Non-Guarantor Subsidiaries of $557 million for the year ended December 31, 2025, primarily from royalties, dividends, interest and intercompany product sales.
See Note to the Consolidated Financial Statements No. 7, Income Taxes, for details. 42 Table of Contents COMMITMENTS AND CONTINGENT LIABILITIES Contractual Obligations The following table presents our contractual obligations and commitments to make future payments as of December 31, 2025: (In millions) Total 2026 2027 2028 2029 2030 Beyond 2030 Debt Obligations (1) $ 5,946 $ 1,173 $ 1,025 $ 794 $ 853 $ 501 $ 1,600 Finance Lease Obligations (2) 261 10 8 8 10 5 220 Interest Payments (3) 1,573 330 264 216 190 141 432 Operating Lease Obligations (4) 1,419 264 226 178 144 120 487 Pension Benefits (5) 225 55 40 40 50 40 N/A Other Postretirement Benefits (6) 191 21 20 20 20 19 91 Workers’ Compensation (7) 185 28 20 16 12 10 99 Binding Commitments (8) 5,520 1,517 537 345 319 293 2,509 Uncertain Income Tax Positions (9) 23 2 3 18 — — — $ 15,343 $ 3,400 $ 2,143 $ 1,635 $ 1,598 $ 1,129 $ 5,438 (1) Debt obligations include Notes Payable and Overdrafts, and excludes the impact of deferred financing fees, unamortized discounts, and the fair value step-up related to the Cooper Tire acquisition.
Based on our interim impairment test, the fair value of the North America reporting unit as of September 30, 2025 was less than its carrying value, resulting in full goodwill impairment and a non-cash charge of $674 million during the third quarter of 2025.
Goodwill and Intangible Asset Impairment During 2025, we recorded a non-cash impairment charge of $674 million ($674 million after-tax and minority) to fully impair our North America reporting unit's goodwill in our Americas segment.
During 2025, industry disruption and various macroeconomic factors such as the impact of tariff, transportation, labor and energy costs have negatively impacted our U.S. operating results and future forecasted U.S. earnings.
During 2025, industry disruption and various macroeconomic factors such as the impact of tariff, transportation, labor and energy costs have negatively impacted our U.S. operating results and future forecasted U.S. earnings.
We recorded an intangible asset impairment charge of $125 million in the third quarter of 2024 primarily related to our lower tier indefinite-lived intangible assets related to the acquisition of Cooper Tire.
As part of our annual impairment analysis as of October 31, 2025, we completed a qualitative impairment analysis of our Asia Pacific reporting unit.
The change in Goodyear net income (loss) was primarily due to the change in U.S. and Foreign Tax Expense, driven by the establishment of a full valuation allowance on our net deferred tax assets in the U.S., a non-cash goodwill impairment charge in Americas and lower segment operating income, partially offset by gains on the sales of the OTR tire business, the Dunlop brand and the Chemical Business.
Our stock price has a history of volatility; however, given the decrease was sustained throughout the quarter, combined with the reduction in outlook, we viewed these events as triggering events for purposes of testing goodwill for impairment and performed a quantitative analysis of the fair value of the North America reporting unit in our Americas segment.
No longer disclosed
Operating income in 2023 excluded net rationalization charges of $409 million, a non-cash goodwill impairment charge of $230 million, accelerated depreciation of $27 million and recoveries of previously written-off accounts receivable and other assets of $10 million in Russia.
Summarized Statement of Operations (In millions) Year Ended December 31, 2024 Net Sales $ 10,402 Cost of Goods Sold 8,427 Selling, Administrative and General Expense 1,495 Intangible Asset Impairment 125 Rationalizations 27 Interest Expense 482 Other (Income) Expense (169 ) Income before Income Taxes (2) $ 15 Net Income $ 26 Goodyear Net Income $ 26 (2) Includes income from intercompany transactions with Non-Guarantor Subsidiaries of $659 million for the year ended December 31, 2024, primarily from royalties, dividends, interest and intercompany product sales. 43 Table of Contents COMMITMENTS AND CONTINGENT LIABILITIES Contractual Obligations The following table presents our contractual obligations and commitments to make future payments as of December 31, 2024: (In millions) Total 2025 2026 2027 2028 2029 Beyond 2029 Debt Obligations (1) $ 7,545 $ 1,395 $ 1,905 $ 1,130 $ 662 $ 852 $ 1,601 Finance Lease Obligations (2) 261 8 8 7 7 9 222 Interest Payments (3) 1,664 349 258 206 167 148 536 Operating Lease Obligations (4) 1,297 261 223 184 138 107 384 Pension Benefits (5) 350 95 65 60 60 70 NA Other Postretirement Benefits (6) 192 22 21 20 19 19 91 Workers’ Compensation (7) 199 31 24 15 11 9 109 Binding Commitments (8) 2,569 1,501 506 253 232 20 57 Uncertain Income Tax Positions (9) 25 4 9 4 3 3 2 $ 14,102 $ 3,666 $ 3,019 $ 1,879 $ 1,299 $ 1,237 $ 3,002 (1) Debt obligations include Notes Payable and Overdrafts, and excludes the impact of deferred financing fees, unamortized discounts, and a fair value step-up related to the Cooper Tire acquisition.
As part of our annual impairment analysis as of October 31, 2024, we completed a quantitative impairment analysis of our North America and Asia Pacific reporting units to determine if their fair values were less than their carrying amounts.
Based on the quantitative test, the North America reporting unit had an estimated fair value that exceeded its carrying value, including goodwill, by approximately 11% and the Asia Pacific reporting unit substantially exceeded its carrying value. 46 Table of Contents The following table highlights the sensitivities of the North America reporting unit's goodwill as of October 31, 2024: North America Reporting Unit Goodwill Assumption: Approximate percentage by which the fair value exceeds the carrying value based on annual impairment test 11 % Approximate percentage by which the fair value exceeds the carrying value if the discount rate were to increase by 0.5% 6 % Approximate percentage by which the fair value exceeds the carrying value if the projected operating margin were to decrease by 0.5% 10 % Approximate percentage by which the fair value exceeds the carrying value if the projected revenue were to decrease by 0.5% 10 % We determined the estimated fair value for the reporting units based on discounted cash flow projections.
In the third quarter of 2024, we experienced a decline in volumes primarily in our lower tier indefinite-lived intangible assets related to the acquisition of Cooper Tire as a result of increased competition from lower tier imports in the market.
Based on the results of the quantitative impairment assessments, the fair value of the intangible assets was less than the carrying value, resulting in a non-cash impairment charge of $125 million during the third quarter of 2024.
We viewed this event as a triggering event and performed a quantitative analysis of the fair value of our indefinite-lived intangible assets related to the acquisition of Cooper Tire as of September 30, 2024.
Cash provided by operating activities reflects net income for the period of $60 million, which includes non-cash charges for depreciation and amortization of $1,049 million, a non-cash impairment charge of $125 million, non-cash rationalization charges of $86 million, a non-cash gain on asset sales of $93 million, primarily related to the sale of a distribution center in Germany, and a non-cash gain on insurance recoveries of $75 million.
During 2023, we recorded a non-cash impairment charge of $230 million ($216 million after-tax and minority) to write off all of the goodwill of our EMEA reporting unit.
Our tax planning strategies include accelerating income on cross border transactions, including sales of inventory or raw materials to our subsidiaries, reducing U.S. interest expense by, for example, reducing intercompany loans through repatriating current year earnings of foreign subsidiaries, repatriation of certain foreign royalty income, and other financing transactions, all of which would increase our domestic profitability.
Although we believe our estimate of fair value is reasonable, if a reporting unit’s future financial performance falls below our expectations, there are adverse revisions to significant assumptions, or our market capitalization declines further or does not improve from the strategic actions we are implementing, this could be indicative that the fair values of each of our reporting units has declined below their carrying values, and therefore we may need to record a material, non-cash goodwill impairment charge in a future period.
Net Sales Net sales in 2024 of $18,878 million decreased $1,188 million, or 5.9%, compared to $20,066 million in 2023, due to lower tire volume of $900 million, primarily in Americas and EMEA, global declines in price and product mix of $349 million and the negative impact of changes in foreign exchange rates globally of $192 million, driven by the strengthening of the U.S. dollar, partially offset by the unfavorable impact of the Tupelo storm on sales in 2023 of $110 million and an increase in sales in other tire-related businesses of $91 million, primarily due to Fleet Solutions in EMEA and higher third-party chemical sales in Americas.