v3.24.0.1
Cooper Tire Acquisition (Tables)
 12 Months Ended
Dec. 31, 2023
Business Acquisition [Line Items]  
Calculation of Merger Consideration

The following table sets forth cumulative measurement period changes from the Closing Date to the second quarter of 2022 when our purchase accounting was finalized, as well as the final and initial allocation of the Merger Consideration to the estimated fair value of the identifiable tangible and intangible assets acquired and liabilities assumed of Cooper Tire, with the excess recorded to Goodwill as of the Closing Date:

(In millions)

 

Final
Purchase Price Allocation

 

 

Cumulative
Measurement
Period Changes

 

 

Initial
Purchase Price Allocation

 

Cash and Cash Equivalents

 

$

231

 

 

$

—

 

 

$

231

 

Accounts Receivable

 

 

538

 

 

 

(83

)

 

 

621

 

Inventories

 

 

708

 

 

 

15

 

 

 

693

 

Property, Plant and Equipment

 

 

1,346

 

 

 

(26

)

 

 

1,372

 

Goodwill

 

 

633

 

 

 

158

 

 

 

475

 

Intangible Assets

 

 

926

 

 

 

(160

)

 

 

1,086

 

Other Assets

 

 

360

 

 

 

(2

)

 

 

362

 

 

 

4,742

 

 

 

(98

)

 

 

4,840

 

 

 

 

 

 

 

 

 

 

Accounts Payable — Trade

 

 

384

 

 

 

(80

)

 

 

464

 

Compensation and Benefits

 

 

356

 

 

 

(30

)

 

 

386

 

Debt, Finance Leases and Notes Payable and Overdrafts

 

 

151

 

 

 

—

 

 

 

151

 

Deferred Tax Liabilities, net

 

 

292

 

 

 

(55

)

 

 

347

 

Other Liabilities

 

 

441

 

 

 

67

 

 

 

374

 

Minority Equity

 

 

21

 

 

 

—

 

 

 

21

 

 

 

1,645

 

 

 

(98

)

 

 

1,743

 

Merger Consideration

 

$

3,097

 

 

$

—

 

 

$

3,097

 
Cooper Tire [Member]  
Business Acquisition [Line Items]  
Schedule of Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed

The estimated fair values of the identifiable intangible assets acquired, their weighted average estimated useful lives and the related valuation methodology are as follows:

(In millions, except years)

 

Final
Fair Value

 

 

Cumulative
Measurement
Period
Changes

 

 

Initial
Fair Value

 

 

Weighted Average
Useful Lives

 

Valuation Methodology

Trade names (indefinite-lived)

 

$

560

 

 

$

250

 

 

$

310

 

 

N/A

 

Relief-from-royalty

Trade names (definite-lived)

 

 

10

 

 

 

(30

)

 

 

40

 

 

14 years

 

Relief-from-royalty

Customer relationships

 

 

350

 

 

 

(380

)

 

 

730

 

 

12 years

 

Multi-period excess earnings

Non-compete and other

 

 

6

 

 

 

—

 

 

 

6

 

 

2 years

 

Discounted cash flow

 

$

926

 

 

$

(160

)

 

$

1,086

 

 

 

 

 
Schedule of Pro Forma Financial Information

The following table summarizes, on a pro forma basis, the combined results of operations of Goodyear and Cooper Tire for the year ended December 31, 2021 as though the acquisition and the related financing had occurred as of January 1, 2020. The pro forma results are not necessarily indicative of either the actual consolidated results had the acquisition of Cooper Tire occurred on January 1, 2020, nor are they indicative of future consolidated operating results.

 

 

Year Ended December 31,

 

(In millions)

 

2021

 

Net Sales

 

$

18,732

 

Income before Income Taxes

 

 

791

 

Goodyear Net Income

 

 

974