Goodyear Tire & Rubber reports net loss of $238 million

Cover page 2 changes

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For the Quarterly Period Ended June September 30, 2026

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Without Par Value, Outstanding at July October 31, 2026:

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Financial statements 145 changes

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June 30, Six Months Ended

September 30, Nine Months Ended

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Cost of Goods Sold 3,569 3,705 6,757 7,218

Selling, Administrative and General Expense 703 692 1,371 1,342

Cost of Goods Sold 3,817 3,801 10,574 11,019

Selling, Administrative and General Expense 665 676 2,036 2,018

Goodwill Impairment (Note 1)

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Net (Gain) Loss on Asset Sales ( 17 ) ( 439 9 ) 1 ( 20 29 ) ( 701 700 )

Income (Loss) before Income Taxes ( 161 211 ) 305 ( 341 733 ) 436 ( 552 ) ( 297 )

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Net Income (Loss) ( 207 ) 281 ( 453 ) 399

Goodyear Net Income (Loss) $ ( 204 ) $ 254 $ ( 453 ) $ 369

Net Income (Loss) ( 239 ) ( 2,197 ) ( 692 ) ( 1,798 )

Less: Minority Shareholders' Net Income (Loss) ( 3 1 ) 27 ( 30 2 ) ( 1 ) 28

Goodyear Net Income (Loss) $ ( 238 ) $ ( 2,195 ) $ ( 691 ) $ ( 1,826 )

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Basic $ ( 0.71 ) $ 0.88 $ ( 1.57 ) $ 1.28

Basic $ ( 0.82 ) $ ( 7.62 ) $ ( 2.39 ) $ ( 6.35 )

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Diluted $ ( 0.71 ) $ 0.87 $ ( 1.57 ) $ 1.27

Diluted $ ( 0.82 ) $ ( 7.62 ) $ ( 2.39 ) $ ( 6.35 )

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June 30, Six Months Ended

September 30, Nine Months Ended

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Net Income (Loss) $ ( 207 ) $ 281 $ ( 453 ) $ 399

Net Income (Loss) $ ( 239 ) $ ( 2,197 ) $ ( 692 ) $ ( 1,798 )

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Foreign currency translation, net of tax of $ 0 and $ 0 in 2026 (($ 4 6 ) and $ 6 0 in 2025)

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Amortization of prior service cost and unrecognized gains and losses included in total benefit cost, net of tax of $ 1 and $ 2 3 in 2026 (($ 7 9 ) and $ 13 4 in 2025)

Change in net actuarial gains and losses, net of tax of $ 0 and $ 0 in 2026 (($ 1 3 ) and ($ 2 1 ) in 2025)

Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements and divestitures, net of tax of $ 0 and $ 0 in 2026 (($ 0 1 ) and ($ 0 1 ) in 2025)

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Comprehensive Income (Loss) ( 173 ) 289 ( 403 ) 467

Goodyear Comprehensive Income (Loss) $ ( 169 ) $ 257 $ ( 399 ) $ 429

Comprehensive Income (Loss) ( 207 ) ( 2,120 ) ( 610 ) ( 1,653 )

Less: Comprehensive Income (Loss) Attributable to Minority Shareholders ( 4 1 ) 32 ( 4 3 ) 38 ( 5 ) 35

Goodyear Comprehensive Income (Loss) $ ( 206 ) $ ( 2,117 ) $ ( 605 ) $ ( 1,688 )

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Raw Materials 633 616

Finished Products 3,090 2,761

Intangible Assets 651 663

(In millions, except share data) June September 30,

Cash and Cash Equivalents $ 861 812 $ 801

Accounts Receivable, less Allowance — $ 84 95 ($ 89 in 2025)

Raw Materials 585 616

Work in Process 193 198 195

Finished Products 2,965 2,761

Assets Held for Sale (Note 1) — 58

Prepaid Expenses and Other Current Assets 407 298 446

Total Current Assets 7,912 7,939 7,218

Intangible Assets 640 663

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Other Assets 1,121 1,126 1,096

Operating Lease Right-of-Use Assets 972 947 998

Property, Plant and Equipment, less Accumulated Depreciation — $ 12,400 12,450 ($ 12,390 in 2025)

Total Assets $ 18,650 18,500 $ 18,208

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Accounts Payable — Trade $ 3,878 3,810 $ 3,879

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Other Current Liabilities 1,215 1,133 1,259

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Operating Lease Liabilities due Within One Year 191 190 196

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Total Current Liabilities 7,277 7,061 6,782

Operating Lease Liabilities 832 810 862

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Other Long Term Liabilities 901 944 941

Total Liabilities 15,649 15,706 14,805

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Capital Surplus 3,178 3,179 3,175

Retained Earnings 2,907 2,669 3,360

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Goodyear Shareholders' Equity 2,839 2,634 3,233

Minority Shareholders' Equity — Nonredeemable 162 160 170

Total Shareholders' Equity 3,001 2,794 3,403

Total Liabilities and Shareholders' Equity $ 18,650 18,500 $ 18,208

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Net income (loss) ( 453 ) ( 453 ) ( 453 )

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Common stock issued from treasury 1,125,762 1 ( 8 ) ( 7 ) ( 7 )

Balance at March 31, 2026

(after deducting 36,915,100 common treasury shares)

Net income (loss) ( 204 ) ( 204 ) ( 3 ) ( 207 )

Other comprehensive income (loss) 35 35 ( 1 ) 34

Total Comprehensive Income (Loss) ( 169 ) ( 4 ) ( 173 )

Stock-based compensation plans 4 4 4

Total Comprehensive Income (Loss) ( 230 399 ) ( 4 ) 230 ( 403 )

Stock-based compensation plans 8 8 8 12 12 12

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Common stock issued from treasury 285,377 1 ( 1 ) —

Common stock issued from treasury 1,411,139 2 ( 9 ) ( 7 ) ( 7 )

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Net income (loss) ( 238 ) ( 238 ) ( 1 ) ( 239 )

Other comprehensive income (loss) 32 32 32

Total Comprehensive Income (Loss) ( 206 ) ( 1 ) ( 207 )

Stock-based compensation plans 1 1 1

Dividends declared ( 1 ) ( 1 )

Common stock issued from treasury 277,621 —

Balance at September 30, 2026

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and 65 more changes in the filing

Note 1: ACCOUNTING POLICIES 15 changes

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Operating results for the three and six nine months ended June September 30, 2026 are not necessarily indicative of the results expected in subsequent quarters or for the year ending December 31, 2026.

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On September 18, 2025, the FASB issued a final ASU to modernize the accounting for internal-use software. This update replaces the previous stage-based capitalization model with a principles-based approach, allowing capitalization of software development costs once management has authorized and committed funding and it is probable the project will be completed and perform its intended function. The ASU also consolidates guidance for website development under the internal-use software framework and expands applicability to cloud-based and agile development methods. The standards update is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently assessing The impact adoption of this standards update will not have a material impact on our accounting policies and disclosures. consolidated financial statements.

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In the second quarter of 2026, we experienced continued volume declines, primarily in Americas and Europe, Middle East and Africa ("EMEA"). We viewed this event as a triggering event and performed a quantitative analysis of the fair value of $ 425 million of our indefinite-lived intangible assets related to the acquisition of Cooper Tire as of June 30, 2026. Based on the results of the quantitative impairment assessments, the fair value of the indefinite-lived intangible assets approximated their respective carrying values. We determined the fair value of the indefinite-lived intangible assets using the relief-from-royalty method, which calculates the cost savings associated with owning rather than licensing the assets. The most critical assumptions used in the calculation of the fair value are projected revenue, discount rate and royalty rate. The fair value of the indefinite-lived intangible assets is sensitive to differences between estimated and actual revenue, including changes in the discount rate and royalty rate used to evaluate the fair value of these assets. Although we believe our estimate of fair value is reasonable, the performance of these indefinite-lived intangible assets is dependent on our ability to execute our business plan. If our future financial performance falls below our expectations or there are adverse revisions to significant assumptions, including projected revenues, discount rates or royalty rates, this could be indicative that the fair values of these indefinite-lived intangible assets have declined below their carrying values, and therefore we may need to record a material, non-cash impairment charge in a future period.

At June 30, 2026, after evaluating macroeconomic conditions and our current and future results of operations, we concluded that there were no triggering events and it was not more likely than not that the fair value of goodwill of our reporting unit within our Asia Pacific segment was less than its respective carrying value and, therefore, did not have any impairment.

Goodwill and indefinite-lived intangible assets are tested for impairment annually or more frequently if an indicator of impairment is present. Intangible assets with finite lives are amortized over their useful lives and are reviewed for impairment whenever events or circumstances warrant such review. Goodwill and intangible assets are written down to fair value if considered impaired. Goodwill and Intangible Assets totaled $ 44 million and $ 651 640 million, respectively, at June September 30, 2026, compared to $ 42 million and $ 663 million, respectively, at December 31, 2025. All goodwill was associated with the reporting unit in our Asia Pacific segment at June September 30, 2026 and December 31, 2025.

In the third quarter of 2026, macroeconomic and geopolitical events continued to have an adverse impact on our results and contributed to the decline in our replacement volume. We considered the impact on the fair value of our goodwill reporting unit and our indefinite-lived intangible assets. During this review, we considered the nature and extent of current market conditions, forecasts for reporting units and individual brands, as well as the quantitative analysis performed during our annual 2025 impairment test and the interim quantitative assessment performed in the second quarter of 2026. Based on our review of external and internal factors compared to our latest quantitative assessment, we determined it was not more likely than not that the fair value of our goodwill or indefinite-lived intangible assets is less than the respective carrying value, and thus, a triggering event had not occurred which would require an interim impairment test to be performed. We will continue to monitor our results and market conditions to determine if a future analysis would be required.

During the third quarter of 2025, we recorded a non-cash impairment charge of $ 674 million to fully impair our North America reporting unit's goodwill in our Americas segment.

The International Emergency Economic Powers Act ("IEEPA") was used by President Trump to impose tariffs on imports. On December 10, 2025, we filed a lawsuit in the U.S. Court of International Trade challenging the IEPPA tariffs. On February 20, 2026, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs. The Court of International Trade has ordered U.S. Customs and Border Protection ("CBP") to begin refunding tariffs imposed under IEEPA. On April 20, 2026, we submitted our claim for a refund of the IEEPA tariffs through the CBP portal established to process such claims.

Trade has ordered U.S. Customs and Border Protection ("CBP") to begin refunding tariffs imposed under IEEPA. On April 20, 2026, we submitted our claim for a refund of the IEEPA tariffs through the CBP portal established to process such claims.

We applied the loss recovery model and determined that the receipt of the refund of the previously paid IEEPA tariffs is probable. In the first quarter of 2026, we estimated the amount of the probable refund to be $ 60 million, of which $ 46 million was recognized as a reduction to cost of goods sold, $ 12 million was applied as a reduction to tariffs that remained in inventory, and $ 2 million was accrued as an other liability associated with contractual terms. We received IEEPA tariff refunds of $ 42 million in the second quarter of 2026, with the remaining refund amounts received in the third quarter of 2026.

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Restricted Cash 104 117

Cash and Cash Equivalents $ 861 812 $ 785 810

Restricted Cash 57 120

Total Cash, Cash Equivalents and Restricted Cash $ 965 869 $ 902 930

Restricted Cash at both September 30, 2026 and 2025, primarily represents amounts required to be set aside for accounts receivable factoring programs. The restrictions lapse when cash from factored accounts receivable is remitted to the purchaser of those receivables. Restricted cash at September 30, 2025, also includes amounts collected in connection with ongoing agreements related to the sale of our off-the-road ("OTR") tire business. At both June September 30, 2026 and 2025, restricted cash was recorded in Prepaid Expenses and Other Current Assets in the Consolidated Balance Sheets.

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Note 2: NET SALES 46 changes

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Three Months Ended June September 30, 2026

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Tire unit sales $ 1,979 $ 1,126 $ 471 $ 3,576

Chemical sales 4 — — 4

Net Sales by reportable segment $ 2,382 $ 1,372 $ 496 $ 4,250

Tire unit sales $ 2,271 $ 1,142 $ 483 $ 3,896

Other tire and related sales 206 202 24 432 207 169 21 397

Retail services and service related sales 191 192 44 — 235 236

Chemical sales 5 — — 5

Net Sales by reportable segment $ 2,675 $ 1,355 $ 510 $ 4,540

Three Months Ended June September 30, 2025

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Tire unit sales $ 2,132 $ 1,120 $ 434 $ 3,686

Chemical sales 126 — — 126

Net Sales by reportable segment $ 2,662 $ 1,344 $ 459 $ 4,465 (In millions) Americas Europe, Middle East and Africa Asia Pacific Total

Tire unit sales $ 3,676 $ 2,290 $ 904 $ 6,870

Chemical sales 11 — — 11

Net Sales by reportable segment $ 4,445 $ 2,735 $ 951 $ 8,131 (In millions) Americas Europe, Middle East and Africa Asia Pacific Total

Tire unit sales $ 4,140 $ 2,236 $ 885 $ 7,261

Chemical sales 259 — — 259

Net Sales by reportable segment $ 5,164 $ 2,621 $ 933 $ 8,718

Tire unit sales $ 2,209 $ 1,222 $ 474 $ 3,905

Other tire and related sales 199 181 205 148 25 405 378

Retail services and service related sales 196 43 199 37 — 239 236

Chemical sales 121 — — 121

Net Sales by reportable segment $ 2,737 $ 1,407 $ 501 $ 4,645

Nine Months Ended September 30, 2026

(In millions) Americas Europe, Middle East

and Africa Asia Pacific Total

Tire unit sales $ 5,947 $ 3,432 $ 1,387 $ 10,766

Other tire and related sales 387 362 45 794 594 531 66 1,191

Retail services and service related sales 366 83 558 127 — 449 685

Chemical sales 16 — — 16

Net Sales by reportable segment $ 7,120 $ 4,090 $ 1,461 $ 12,671

Nine Months Ended September 30, 2025

(In millions) Americas Europe, Middle East

and Africa Asia Pacific Total

Tire unit sales $ 6,349 $ 3,458 $ 1,359 $ 11,166

Other tire and related sales 374 305 46 725 582 453 71 1,106

Retail services and service related sales 377 80 576 117 — 457 693

Chemical sales 380 — — 380

Net Sales by reportable segment $ 7,901 $ 4,028 $ 1,434 $ 13,363

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When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue included in Other Current Liabilities in the Consolidated Balance Sheets totaled $ 33 million and $ 34 million at June September 30, 2026 and December 31, 2025, respectively. Deferred revenue included in Other Long Term Liabilities in the Consolidated Balance Sheets totaled $ 64 59 million and $ 76 million at June September 30, 2026 and December 31, 2025, respectively. We recognize deferred revenue after we have transferred control of the goods or services to the customer and all revenue recognition criteria are met. Revenue deferred at June September 30, 2026 primarily relates to the product supply agreement we entered into with Yokohama in connection with the sale of our OTR tire business.

The following table presents the balance of deferred revenue related to contracts with customers, and changes during the six nine months ended June September 30, 2026:

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Revenue deferred during period 79 124

Revenue recognized during period ( 92 142 )

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Balance at June 30, 2026 $ 97

Balance at September 30, 2026 $ 92

Note 3: COSTS ASSOCIATED WITH RATIONALIZATION PROGRAMS 34 changes

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Balance at June 30, 2026 $ 199 $ 2 $ 201

Incurred, net of foreign currency translation of ($ 4 5 ) million and $ 0 million, respectively ( 92 110 ) ( 35 56 ) ( 127 166 )

Reversed to the Statement of Operations ( 8 12 ) — ( 8 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 first third quarter of 2026, we approved a plan to reduce Selling, Administrative and General Expense ("SAG") headcount manufacturing expenses globally. The plan includes approximately 100 300 net headcount job reductions. We expect these actions to be substantially complete by the end of 2027. Total pre-tax charges associated with these actions are expected to be approximately $ 10 30 million, primarily 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 $ 6 16 million for this plan at June 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 $ 19 20 million were recorded in the second quarter of 2026, primarily 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 $ 69 67 million for this plan at June September 30, 2026.

During the first quarter of 2026, we approved a plan in Americas to consolidate mold operations reduce Selling, Administrative and close the Tall Timbers mold plant in Findlay, Ohio ("Tall Timbers"). 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 $ 13 10 million, primarily for associate-related and other exit costs. We have accrued approximately $ 2 4 million for this plan at June 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 June September 30, 2026 primarily includes $ 61 60 million related to the closures of our Fulda, Germany ("Fulda") and our Fürstenwalde, Germany ("Fürstenwalde") tire manufacturing facilities and $ 13 11 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 September 30, 2026 and December 31, 2025, $ 134 193 million and $ 131 million were recorded in Other Current Liabilities in the Consolidated Balance Sheets, respectively.

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June 30, Six Months Ended

September 30, Nine Months Ended

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Other Exit Costs 1 2 2 6

Other Exit Costs 13 15 34 28

Total Net Charges $ 29 $ 59 $ 133 $ 140

Associate Severance and Other Related Costs $ 19 114 $ 32 6 $ 103 217 $ 89 95

Benefit Plan Curtailments/Settlements/Termination Benefits — — 7 — 7 4

Other Exit Costs 23 2 25 8

Current Year Plans - Net Charges $ 20 144 $ 34 8 $ 105 249 $ 99 107

Associate Severance and Other Related Costs $ ( 4 6 ) $ 10 ( 2 ) $ ( 6 12 ) $ 13 11

Other Exit Costs 10 15 44 43

Prior Year Plans - Net Charges $ 9 4 $ 25 13 $ 28 32 $ 41 54

Total Net Charges $ 148 $ 21 $ 281 $ 161

Asset write-offs (recoveries), accelerated depreciation, and accelerated lease costs, net $ — $ 41 71 $ 16 55 $ 87 $ 142

Substantially all of the new charges for the three and six nine months ended June September 30, 2026 and 2025 relate to future cash outflows. Net current year plan charges for the three and six nine months ended June September 30, 2026 primarily relate to plans approved during the first, and 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 June 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 in ("Kariega"). Net current year plan charges for the six nine months ended June 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.

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

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

Ongoing rationalization plans had approximately $ 950 million in charges incurred prior to 2026 and have approximately $ 50 200 million in expected charges to be incurred in future periods.

Approximately 800 2,950 associates will be released under plans initiated in 2026, of which approximately 250 450 were released through June September 30, 2026. In the first six nine months of 2026, approximately 350 550 associates were released under plans initiated in prior years. Approximately 1,200 2,950 associates remain to be released under all ongoing rationalization plans.

Note 4: OTHER (INCOME) EXPENSE 7 changes

June 30, Six Months Ended

September 30, Nine Months Ended

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Net foreign currency exchange (gains) losses 7 10 — 6 6 6 12

General and product liability expense - discontinued products ( 19 15 ) ( 15 17 ) ( 40 56 ) ( 26 43 )

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Non-service related pension and other postretirement benefits cost consists primarily of the interest cost, expected return on plan assets and amortization components of net periodic cost, as well as curtailments and settlements which are not related to rationalization plans. Pension expense for the six three and nine months ended June September 30, 2025 includes a pension settlement charge charges of $ 4 68 million and $ 72 million, respectively, resulting from total lump sum payments exceeding annual service and interest cost of the applicable plan. For further information, refer to Note to the Consolidated Financial Statements No. 10, Pension, Savings and Other Postretirement Benefit Plans.

Royalty and other income for the three and six nine months ended June September 30, 2026 includes $ 14 12 million and $ 29 41 million, respectively, related to royalty income from the OTR license agreement and transition services income related to the sales of the OTR tire business, the Dunlop brand and the chemical business. Royalty and other income for the three and six nine months ended June September 30, 2025 includes $ 7 13 million and $ 12 26 million, respectively, related to royalty income from the OTR license agreement and transition services income related to the sales of the OTR tire business and the Dunlop brand.

Other (Income) Expense also includes financing fees and financial instruments expense, which consists of commitment fees and charges incurred in connection with financing transactions; net foreign currency exchange (gains) losses, primarily related to the euro and Turkish lira; interest (income); and general and product liability expense - discontinued products, which consists of charges for claims against us related primarily to asbestos personal injury claims, net of probable insurance recoveries; and miscellaneous (income) expense.

Note 5: INCOME TAXES 8 changes

For the second quarter of 2025, we recorded income tax expense of $ 24 million on income before income taxes of $ 305 million. For the first six months of 2025, we recorded income tax expense of $ 37 million on income before income taxes of $ 436 million. Income tax expense for the three and six months ended June 30, 2025 includes net discrete tax benefits of $ 4 million and $ 5 million, respectively.

For the second third quarter of 2026, we recorded income tax expense of $ 46 28 million on loss before income taxes of $ 161 211 million. For the first six nine months of 2026, we recorded income tax expense of $ 112 140 million on loss before income taxes of $ 341 552 million. Income tax expense for the three and six months ended June September 30, 2026 includes net discrete tax expense benefits of $ 5 7 million. and Income tax expense for the nine months ended September 30, 2026 includes net discrete tax expense of $ 25 19 million respectively, and is primarily related to an expected settlement of a prior year tax matter in one of our foreign locations.

For the third quarter of 2025, we recorded income tax expense of $ 1,464 million on loss before income taxes of $ 733 million. For the first nine months of 2025, we recorded income tax expense of $ 1,501 million on loss before income taxes of $ 297 million. Income tax expense for the three and nine months ended September 30, 2025 includes net discrete tax expense of $ 1,450 million and $ 1,446 million, respectively. Discrete tax expense for both periods was primarily related to the establishment of a full valuation allowance on our net deferred tax assets in the U.S.

We record taxes based on overall estimated annual effective tax rates. The difference between our effective tax rate and the U.S. statutory rate of 21 % for the three and six nine months ended June September 30, 2026 primarily relates to losses in the U.S. and foreign jurisdictions in which no tax benefits are recorded and the discrete items noted above. The difference between our effective tax rate and the U.S. statutory rate of 21 % for the three and six nine months ended June September 30, 2025 was favorably mainly impacted by gains recognized as a result of the sales establishment of the OTR tire business and the Dunlop brand, which included certain associated intellectual property and other intangible assets, in jurisdictions where no taxes are recorded, a full valuation allowance on our net deferred tax assets of losses in foreign jurisdictions $ 1.4 billion in which no tax benefits are recorded, and the discrete items noted above. U.S.

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At June September 30, 2026 and December 31, 2025, we had approximately $ 1.6 billion and $ 1.4 billion, respectively, of U.S. federal, state and local net deferred tax assets and related valuation allowances totaling $ 1.6 billion and $ 1.4 billion, respectively. At June September 30, 2026 and December 31, 2025, we also had foreign net deferred tax assets of approximately $ 1.6 billion and $ 1.5 billion, respectively, and related valuation allowances of approximately $ 1.3 billion. Our foreign valuation allowances include a $ 1.1 billion full valuation allowance on our net deferred tax assets in Luxembourg. Our losses in the U.S. and various foreign taxing jurisdictions in recent periods represented sufficient negative evidence to require us to maintain a full valuation allowance against certain of these net deferred tax assets. Each reporting period, we assess available positive and negative evidence and estimate if sufficient future taxable income will be generated to utilize these existing deferred tax assets. We do not believe that sufficient positive evidence required to release valuation allowances on our U.S. and foreign deferred tax assets will exist within the next twelve months.

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We are open to examination in the United States from 2021 onward and in Germany from 2019 onward. Generally, for our remaining tax jurisdictions, years from 2021 onward are still open to examination.

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We challenged the proposed adjustment through the established IRS administrative procedures and engaged in settlement discussions with the IRS. On July 29, 2026, we entered into a closing agreement with the IRS resolving all federal income tax consequences related to the 2021 transaction (the "IRS settlement"). As a result of the IRS settlement, in the third quarter of 2026, we expect to write-off wrote-off approximately $ 45 million of our deferred tax assets that were previously utilized to offset the related federal and state taxes. However, since our U.S. deferred tax assets are in a full valuation allowance, the write-off of those deferred tax assets will did not have a material impact on our operating results or cash flow.

We are open to examination in the United States from 2021 onward and in Germany from 2019 onward. Generally, for our remaining tax jurisdictions, years from 2021 onward are still open to examination.

Note 6: EARNINGS PER SHARE 15 changes

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June 30, Six Months Ended

September 30, Nine Months Ended

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Goodyear net income (loss) $ ( 204 ) $ 254 $ ( 453 ) $ 369

Goodyear net income (loss) $ ( 204 ) $ 254 $ ( 453 ) $ 369

Earnings Loss per share — basic:

Goodyear net income (loss) $ ( 238 ) $ ( 2,195 ) $ ( 691 ) $ ( 1,826 )

Weighted average shares outstanding 289 287 288 289 287

Earnings Loss per common share — basic

Earnings Loss per share — diluted:

Goodyear net income (loss) $ ( 238 ) $ ( 2,195 ) $ ( 691 ) $ ( 1,826 )

Weighted average shares outstanding 289 287 288 289 287

Dilutive effect of stock options and other dilutive securities — 3 — 3 — —

Weighted average shares outstanding — diluted 289 290 288 289 290 287

Earnings Loss per common share — diluted

Weighted average shares outstanding — diluted for both the three and six nine months ended June September 30, 2026 excludes approximately 2 million equivalent shares, and, for both the three and six nine months ended June September 30, 2025, excludes approximately 1 million equivalent shares and 3 million equivalent shares, respectively, related to options with exercise prices greater than the average market price of our common shares (i.e., "underwater" options). Additionally, weighted average shares outstanding — diluted for both the three and six nine months ended June September 30, 2026 excludes the dilutive effect of approximately 1 million equivalent shares, related primarily to options with exercise prices less than and for both the average market price three and nine months ended September 30, 2025 excludes the dilutive effect of our common approximately 2 million equivalent shares, (i.e., "in-the-money" options) and related to unvested restricted stock units, as their inclusion would have been anti-dilutive due to the Goodyear net loss.

Note 7: BUSINESS SEGMENTS 125 changes

Segment information reflects our strategic business units ("SBUs"), which are organized to meet customer requirements and global competition. For the three and six nine months ended June September 30, 2026, we operated our business through operating segments representing our regional tire businesses: Americas; Europe, Middle East and Africa; EMEA; 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.

3 unchanged paragraphs

Three Months Ended June September 30, 2026

1 unchanged paragraph

Net Sales $ 2,382 $ 1,372 $ 496 $ 4,250

Cost of Goods Sold 2,035 1,157 369 3,561

Net Sales $ 2,675 $ 1,355 $ 510 $ 4,540

Cost of Goods Sold 2,228 1,143 379 3,750

Selling, Administrative and General Expense 367 239 359 208 66 672 633

1 unchanged paragraph

Segment Operating Income (Loss) $ 96 $ 12 $ 66 $ 174

2 unchanged paragraphs

Net (gains) losses on asset sales ( 17 9 )

Asset write-offs, accelerated depreciation and accelerated lease costs, net (Note 3)

Corporate incentive compensation plans 8 9

Retained expenses of divested operations 3 4

3 unchanged paragraphs

Three Months Ended June September 30, 2025

1 unchanged paragraph

Net Sales $ 2,662 $ 1,344 $ 459 $ 4,465

Cost of Goods Sold 2,166 1,153 350 3,669

Net Sales $ 2,737 $ 1,407 $ 501 $ 4,645

Cost of Goods Sold 2,187 1,176 384 3,747

Selling, Administrative and General Expense 362 221 69 652 350 209 67 626

1 unchanged paragraph

Segment Operating Income (Loss) $ 206 $ 30 $ 51 $ 287

2 unchanged paragraphs

Net (gains) losses on asset sales ( 439 ) 1

1 unchanged paragraph

Corporate incentive compensation plans 20 8

Retained expenses of divested operations 1 5

Income (Loss) before Income Taxes $ 305 ( 733 )

2 unchanged paragraphs

Six Months Ended June 30, 2026

Nine Months Ended September 30, 2026

1 unchanged paragraph

Net Sales $ 4,445 $ 2,735 $ 951 $ 8,131

Cost of Goods Sold 3,727 2,306 707 6,740

Selling, Administrative and General Expense 710 460 128 1,298 ( 19 ) ( 15 ) ( 4 ) ( 38 )

Net Sales $ 7,120 $ 4,090 $ 1,461 $ 12,671

Cost of Goods Sold 5,955 3,449 1,086 10,490

Selling, Administrative and General Expense 1,069 668 194 1,931 ( 27 ) ( 23 ) ( 5 ) ( 55 )

3 unchanged paragraphs

Net (gains) losses on asset sales ( 20 29 )

1 unchanged paragraph

Corporate incentive compensation plans 31 40

Retained expenses of divested operations 6 10

Income (Loss) before Income Taxes $ ( 341 552 )

2 unchanged paragraphs

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

1 unchanged paragraph

Net Sales $ 5,164 $ 2,621 $ 933 $ 8,718

Cost of Goods Sold 4,189 2,235 718 7,142

Selling, Administrative and General Expense 693 424 131 1,248 ( 14 ) ( 8 ) ( 4 ) ( 26 )

Net Sales $ 7,901 $ 4,028 $ 1,434 $ 13,363

Cost of Goods Sold 6,376 3,411 1,102 10,889

Selling, Administrative and General Expense 1,043 633 198 1,874 ( 20 ) ( 16 ) ( 5 ) ( 41 )

Segment Operating Income (Loss) $ 502 $ — $ 139 $ 641

2 unchanged paragraphs

Net (gains) losses on asset sales ( 701 700 )

1 unchanged paragraph

Corporate incentive compensation plans 36 44

Retained expenses of divested operations 3 8

Income (Loss) before Income Taxes $ 436 ( 297 )

3 unchanged paragraphs

(In millions) June 30,

(In millions) September 30,

Americas $ 10,586 10,327 $ 10,275

Europe, Middle East and Africa 4,899 5,096 4,878

Asia Pacific 2,182 2,199 2,166

Total Segment Assets $ 17,667 17,622 $ 17,319

1 unchanged paragraph

June 30, Six Months Ended

September 30, Nine Months Ended

1 unchanged paragraph

United States $ 1,973 $ 2,234 $ 3,624 $ 4,286

Luxembourg 472 384 926 $ 695

Other international 1,805 1,847 3,581 3,737

(In millions) June 30,

June 30, Six Months Ended

United States $ 2,252 $ 2,262 $ 5,876 $ 6,548

Luxembourg 416 350 1,342 $ 1,045

Other international 1,872 2,033 5,453 5,770

(In millions) September 30,

United States $ 3,304 3,198 $ 3,435

Other international 3,665 3,630 3,763

Goodwill impairment, as described in Note to the Consolidated Financial Statements No. 1, Accounting Policies; 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:

September 30, Nine Months Ended

1 unchanged paragraph

Americas $ 3 $ 10 $ 14 $ 72

Europe, Middle East and Africa 23 43 108 55

Asia Pacific 2 — 3 1

Total Segment Rationalizations $ 28 $ 53 $ 125 $ 128

June 30, Six Months Ended

Americas $ — $ 674 $ — $ 674

Total Segment Goodwill Impairment $ — $ 674 $ — $ 674

September 30, Nine Months Ended

1 unchanged paragraph

Americas $ 124 $ 4 $ 138 $ 76

Europe, Middle East and Africa 18 16 126 71

Asia Pacific 2 — 5 1

1 unchanged paragraph

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and 45 more changes in the filing

Note 8: FINANCING ARRANGEMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS 48 changes

At June September 30, 2026, we had total credit arrangements of $ 10,992 10,939 million, of which $ 3,891 3,639 million were unused. At that date, approximately 17 19 % of our debt was at variable interest rates averaging 6.62 6.10 %.

Note s Notes Payable and Overdrafts, Long Term Debt and Finance Leases due Within One Year and Short Term Financing Arrangements

At June September 30, 2026, we had short term committed and uncommitted credit arrangements totaling $ 702 687 million, of which $ 326 313 million were unused. These arrangements are available primarily to certain of our foreign subsidiaries through various banks at quoted market interest rates.

1 unchanged paragraph

(In millions) June 30,

(In millions) September 30,

1 unchanged paragraph

Other foreign and domestic debt 355 345 464

Notes Payable and Overdrafts $ 359 349 $ 506

Weighted average interest rate 8.22 8.45 % 7.62 %

2 unchanged paragraphs

Chinese credit facilities 123 109 48

1 unchanged paragraph

Other foreign and domestic debt (including finance leases) 117 63 116

Long Term Debt and Finance Leases due Within One Year $ 1,059 990 $ 364

Weighted average interest rate 4.84 5.31 % 5.07 %

Total obligations due within one year $ 1,418 1,339 $ 870

1 unchanged paragraph

At June September 30, 2026, we had long term credit arrangements totaling $ 10,290 10,252 million, of which $ 3,565 3,326 million were unused.

1 unchanged paragraph

June September 30, 2026 December 31, 2025

7 unchanged paragraphs

Pan-European accounts receivable facility 244 4.14 228 4.45 % 292 3.86 %

1 unchanged paragraph

Chinese credit facilities 159 2.36 156 2.35 % 150 1.69 %

1 unchanged paragraph

Unamortized deferred financing fees ( 36 34 ) ( 26 )

1 unchanged paragraph

Less portion due within one year ( 1,059 990 ) ( 364 )

1 unchanged paragraph

(2) Includes $ 2 4 million non-cash financing additions during the six nine months ended June September 30, 2026 and $ 2 million of non-cash financing additions during the twelve months ended December 31, 2025.

At June September 30, 2026, we had $ 5,425 5,423 million of outstanding notes, compared to $ 4,391 million at December 31, 2025.

1 unchanged paragraph

We have the option to redeem these notes, in whole or in part, at any time on or after July 15, 2029 at a redemption price of 104.438 %, 102.219 % and 100 % during the 12-month periods commencing on July 15, 2029, 2030 and 2031 and thereafter, respectively, plus accrued and unpaid interest to the redemption date. Prior to July 15, 2029, we may redeem these notes, in whole or in part, at a redemption price equal to 100 % of the principal amount plus a make-whole premium and accrued and unpaid interest to the redemption date. In addition, prior to July 15, 2029, we may redeem up to 35 % of the original aggregate principal amount of these notes from the net cash proceeds of certain equity offerings at a redemption price equal to 108.875 % of the principal amount plus accrued and unpaid interest to the redemption date.

The terms of the indenture for these notes, among other things, limit our ability and the ability of certain of our subsidiaries to (i) incur certain liens, (ii) engage in sale and leaseback transactions, and (iii) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets. These covenants are subject to significant exceptions and qualifications.

On June 4, 2026, we issued $ 1,050 million in aggregate principal amount of 8.875 % senior notes due 2032. These notes were sold at 100 % of the principal amount and will mature on July 15, 2032. These notes are unsecured senior obligations and are guaranteed by our U.S. and Canadian subsidiaries that also guarantee our obligations under our U.S. first lien revolving credit facility described below.

2 unchanged paragraphs

Our obligations under the facility are guaranteed by most of our wholly-owned U.S. and Canadian subsidiaries. Our obligations under the facility and our subsidiaries' obligations under the related guarantees are secured by first priority security interests in a variety of collateral. Availability under the facility is subject to a borrowing base, which is based on (i) eligible accounts receivable and inventory of The Goodyear Tire & Rubber Company and certain of its U.S. and Canadian subsidiaries, (ii) the greater of 50 % of the appraised value, if any, of our principal trademarks or $ 400 million, (iii) the value of eligible machinery and equipment, and (iv) certain cash in an amount not to exceed $ 275 million. To the extent that our eligible accounts receivable, inventory and other components of the borrowing base decline in value, our borrowing base will decrease and the availability under the facility may decrease below $ 2.75 billion. As of June September 30, 2026, our borrowing base, and therefore our availability under this facility, was $ 354 270 million below the facility's stated amount of $ 2.75 billion.

2 unchanged paragraphs

At June September 30, 2026, we had $ 157 57 million of borrowings and $ 1 million of letters of credit issued under the revolving credit facility. At December 31, 2025, we had no borrowings and $ 1 million of letters of credit issued under the revolving credit facility.

4 unchanged paragraphs

At June September 30, 2026, there were $ 205 204 million (€ 180 million) of borrowings outstanding under the German tranche, no $ 415 million ( € 365 million ) of borrowings outstanding under the all-borrower tranche, and no letters of credit outstanding under the European revolving credit facility. At December 31, 2025, we had no borrowings and no letters of credit outstanding under the European revolving credit facility.

Accounts Receivable Securitization Facilities Facility (On-Balance Sheet)

4 unchanged paragraphs

At June September 30, 2026, the amounts available and utilized under this program totaled $ 244 228 million (€ 214 200 million). At December 31, 2025, the amounts available and utilized under this program totaled $ 292 million (€ 249 million). The program does not qualify for sale accounting, and accordingly, these amounts are included in Long Term Debt and Finance Leases.

2 unchanged paragraphs

We have sold certain of our accounts receivables under off-balance sheet programs. For these programs, we have concluded that there is generally no risk of loss to us from non-payment of the sold receivables. At June September 30, 2026, the gross amount of receivables sold was $ 830 844 million, compared to $ 892 million at December 31, 2025.

We have entered into supplier finance programs with several financial institutions. Under these programs, the financial institutions act as our paying agents with respect to accounts payable due to our suppliers. We agree to pay the financial institutions the stated amount of the confirmed invoices from the designated suppliers on the original due dates of the invoices. Invoice payment terms can be up to 120 days based on industry norms for the specific item purchased. We do not pay any fees to the financial institutions, and we do not pledge any assets as security or provide other forms of guarantees for these programs. These programs allow our suppliers to sell their receivables to the financial institutions at the sole discretion of the suppliers and the financial institutions on terms that are negotiated among them. We are not always notified when our suppliers sell receivables under these programs. Our obligations to our suppliers, including the amounts due and scheduled payment dates, are not impacted by our suppliers' decisions to sell their receivables under these programs. The amounts available under these programs were $ 881 899 million and $ 876 million at June September 30, 2026 and December 31, 2025, respectively. The amounts confirmed to the financial institutions were $ 550 589 million and $ 551 million at June September 30, 2026 and December 31, 2025, respectively, and are included in Accounts Payable — Trade in our Consolidated Balance Sheets. All activity related to these obligations is presented within operating activities on the Consolidated Statements of Cash Flows.

1 unchanged paragraph

A Mexican subsidiary and a U.S. subsidiary have a revolving credit facility in Mexico. At June September 30, 2026, we have $ 200 million available and no borrowings outstanding under this facility. At December 31, 2025, the amounts available and utilized under the facility were $ 200 million. The facility was renewed on September 1, 2026 and matures on November 22, 2026, 2028. The facility has covenants relating to the Mexican and U.S. subsidiaries and has customary representations and warranties and defaults relating to the Mexican and U.S. subsidiaries' ability to perform their respective obligations under the facility.

2 unchanged paragraphs

(In millions) June 30,

Total available $ 789 $ 854

(In millions) September 30,

Total available $ 797 $ 854

1 unchanged paragraph

Total utilized $ 284 $ 323

Long Term Debt due Within One Year 123 109 48

Long Term Debt 36 47 102

Letters of credit, bank acceptances and other utilization 121 139 131

Total utilized $ 299 $ 323

Maturities 7/26-6/29 10/26-6/29

5 unchanged paragraphs

(In millions) June 30,

(In millions) September 30,

1 unchanged paragraph

Accounts receivable $ 38 $ 6

Accounts receivable $ 32 $ 6

Other current liabilities ( 16 14 ) ( 30 )

At June September 30, 2026 and December 31, 2025, these outstanding foreign currency derivatives had notional amounts of $ 1,897 1,841 million and $ 1,942 million, respectively, and were primarily related to intercompany loans. Other (Income) Expense included net transaction gains on derivatives of $ 11 0 million and $ 24 million for the three and six nine months ended June September 30, 2026, respectively, and net transaction losses gains on derivatives of $ 91 4 million and losses of $ 106 102 million for the three and six nine months ended June September 30, 2025, respectively. These amounts were substantially offset in Other (Income) Expense by the effect of changing exchange rates on the underlying currency exposures.

2 unchanged paragraphs

Note 9: FAIR VALUE MEASUREMENTS 16 changes

The following table presents information about assets and liabilities recorded at fair value on the Consolidated Balance Sheets at June September 30, 2026 and December 31, 2025:

7 unchanged paragraphs

Foreign Exchange Contracts 38 6 — — 38 6 — —

Foreign Exchange Contracts $ 16 $ 30 $ — $ — $ 16 $ 30 $ — $ —

(In millions) June 30,

Foreign Exchange Contracts 32 6 — — 32 6 — —

Total Assets at Fair Value $ 51 45 $ 19 $ 13 $ 13 $ 38 32 $ 6 $ — $ —

Foreign Exchange Contracts $ 14 $ 30 $ — $ — $ 14 $ 30 $ — $ —

Total Liabilities at Fair Value $ 16 14 $ 30 $ — $ — $ 16 14 $ 30 $ — $ —

The following table presents supplemental fair value information about long term fixed rate and variable rate debt, excluding finance leases, at June September 30, 2026 and December 31, 2025:

(In millions) September 30,

1 unchanged paragraph

Carrying amount — liability $ 5,516 5,513 $ 4,496

Fair value — liability 5,293 5,071 4,422

1 unchanged paragraph

Carrying amount — liability $ 1,059 1,252 $ 935

Fair value — liability 1,037 1,189 935

(1) Excludes Notes Payable and Overdrafts of $ 359 349 million and $ 506 million at June September 30, 2026 and December 31, 2025, respectively, of which $ 186 177 million and $ 216 million, respectively, are at fixed rates and $ 173 172 million and $ 290 million, respectively, are at variable rates. The carrying value of Notes Payable and Overdrafts approximates fair value due to the short term nature of the facilities.

Long term debt with fair values of $ 5,167 4,947 million and $ 4,291 million at June September 30, 2026 and December 31, 2025, respectively, were estimated using quoted Level 1 market prices. The carrying value of the remaining long term debt approximates fair value since the terms of the financing arrangements are similar to terms that could be obtained under current lending market conditions.

Note 10: PENSION, SAVINGS AND OTHER POSTRETIREMENT BENEFIT PLANS 30 changes

2 unchanged paragraphs

June 30, Six Months Ended

September 30, Nine Months Ended

1 unchanged paragraph

Service cost $ 2 $ 2 $ 3 $ 3

Amortization of net losses 21 23 43 47

Net periodic pension cost $ 11 $ 15 $ 23 $ 30

June 30, Six Months Ended

Service cost $ 1 $ 1 $ 4 $ 4

Interest cost 32 40 64 81 96 121

Expected return on plan assets ( 44 43 ) ( 50 ) ( 87 130 ) ( 101 151 )

Amortization of net losses 22 24 65 71

Net periodic pension cost $ 12 $ 15 $ 35 $ 45

Net curtailments/settlements/termination benefits — — — 8 7 68 7 76

Total defined benefit pension cost $ 11 19 $ 15 83 $ 23 42 $ 38 121

September 30, Nine Months Ended

1 unchanged paragraph

Service cost $ 3 $ 4 $ 7 $ 8

Interest cost 25 26 50 50

Amortization of net losses 6 5 11 10

Net periodic pension cost $ 12 $ 12 $ 24 $ 23

Service cost $ 4 $ 4 $ 11 $ 12

Interest cost 24 26 74 76

Expected return on plan assets ( 22 ) ( 24 ) ( 45 67 ) ( 46 70 )

Amortization of prior service cost — 1 — 1 1

Amortization of net losses 5 6 16 16

Net periodic pension cost $ 11 $ 12 $ 35 $ 35

1 unchanged paragraph

Total defined benefit pension cost $ 12 11 $ 12 $ 24 35 $ 24 36

1 unchanged paragraph

In the third quarter of 2026, a pension termination benefits charge of $ 7 million was recorded related to the exit of employees under an approved rationalization plan.

In the third quarter and first six nine months of 2025, a pension settlement charge charges of $ 4 68 million was and $ 72 million, respectively, were recorded in Other (Income) Expense. The settlement charge charges resulted from total lump sum payments sums exceeding annual service and interest cost of the applicable plans, including $ 68 million in the third quarter from the offer of lump sum payments over a limited time to certain active and former employees in the U.S. salaried defined benefit pension plan. In addition, in the first nine months of 2025, pension termination benefits charges of $ 4 million and $ 1 million were recorded related to the exit of employees under an approved rationalization plan and the sale of the OTR tire business, respectively.

We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. There was no net other postretirement benefits benefit expense for the three and six nine months ended June September 30, 2026. Net other postretirement benefits income for three and nine months ended September 30, 2025 was $ 1 million for both periods.

We expect to contribute approximately $ 25 million to our funded non-U.S. pension plans in 2026. For the three and six nine months ended June September 30, 2026, we contributed $ 6 3 million and $ 9 12 million, respectively, to our non-U.S. plans.

The expense recognized for our contributions to defined contribution savings plans for the three months ended June September 30, 2026 and 2025 was $ 28 26 million and $ 30 million, respectively, and for the six nine months ended June September 30, 2026 and 2025 was $ 57 83 million and $ 62 92 million, respectively.

Note 11: STOCK COMPENSATION PLANS 2 changes

Our Board of Directors granted 2.1 2.2 million restricted stock units and 0.7 million performance share units during the six nine months ended June September 30, 2026 under our stock compensation plans. We measure the fair value of grants of restricted stock units and performance share units based primarily on the closing market price of a share of our common stock on the date of the grant, modified as appropriate to take into account the features of such grants. The weighted average fair value per share was $ 8.45 8.34 for restricted stock units and $ 8.30 for performance share units granted during the six nine months ended June September 30, 2026.

We recognized stock-based compensation expense of $ 4 1 million and $ 12 13 million during the three and six nine months ended June September 30, 2026, respectively. At June September 30, 2026, unearned compensation cost related to the unvested portion of all stock-based awards was approximately $ 27 19 million and is expected to be recognized over the remaining vesting period of the respective grants, through the second third quarter of 2029. We recognized stock-based compensation expense of $ 5 6 million and $ 11 17 million during the three and six nine months ended June September 30, 2025, respectively.

Note 12: COMMITMENTS AND CONTINGENT LIABILITIES 15 changes

1 unchanged paragraph

We have recorded liabilities totaling $ 76 84 million and $ 79 million at June September 30, 2026 and December 31, 2025, respectively, for anticipated costs related to various environmental matters, primarily the remediation of numerous waste disposal sites and certain properties sold by us. Of these amounts, $ 22 million was included in Other Current Liabilities at both June September 30, 2026 and December 31, 2025. The costs include legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring and related activities, and will be paid over several years. The amount of our ultimate liability in respect of these matters may be affected by several uncertainties, primarily the ultimate cost of required remediation and the extent to which other responsible parties contribute. We have limited potential insurance coverage for future environmental claims.

2 unchanged paragraphs

We have recorded net liabilities, on a discounted basis, totaling $ 156 148 million and $ 145 million for anticipated costs related to workers' compensation at June September 30, 2026 and December 31, 2025, respectively. Of these amounts, $ 30 million and $ 28 million were was included in Other Current Liabilities as part of Compensation and Benefits at June both September 30, 2026 and December 31, 2025. respectively. The costs include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on our assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and current cost trends. The amount of our ultimate liability in respect of these matters may differ from these estimates. We periodically, and at least annually, update our loss development factors based on actuarial analyses. At June September 30, 2026 and December 31, 2025, the liability was discounted using a risk-free rate of return. At June September 30, 2026, we estimate that it is reasonably possible that the liability could exceed our recorded amounts by approximately $ 25 million.

1 unchanged paragraph

We maintain insurance coverage for certain general and product liability exposures. After consideration of the terms of applicable policies, the financial condition of the insurers and other relevant factors, we record a receivable for recoveries that are considered probable and reasonably estimable. At June 30, 2026, we recorded an insurance receivable related to general and product liability claims of approximately $ 20 million, which is included in Current Assets as part of Accounts Receivable.

We have recorded liabilities for both asserted and unasserted claims totaling $ 470 435 million and $ 417 million, including related legal fees expected to be incurred, for potential product liability and other tort claims, including asbestos claims, at June September 30, 2026 and December 31, 2025, respectively. Of these amounts, $ 111 74 million and $ 66 million were included in Other Current Liabilities at June September 30, 2026 and December 31, 2025, respectively. The amounts recorded were estimated based on an assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and, where available, recent and current trends. Based upon that assessment, at June September 30, 2026, we do not believe that estimated reasonably possible losses associated with general and product liability claims in excess of the amounts recorded will have a material adverse effect on our financial position, cash flows or results of operations. However, the amount of our ultimate liability in respect of these matters may differ from these estimates.

We have recorded an indemnification asset within Accounts Receivable of $ 2 1 million and within Other Assets of $ 1 2 million for Sumitomo Rubber Industries, Ltd. ("SRI's") obligation to indemnify us for certain product liability claims related to products manufactured by a formerly consolidated joint venture entity, subject to certain caps and restrictions.

Asbestos. We are a defendant in numerous lawsuits alleging various asbestos-related personal injuries purported to result from alleged exposure to asbestos in certain products manufactured by us or present in certain of our facilities. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. To date, we have disposed of approximately 169,500 169,700 claims by defending, obtaining the dismissal thereof, or entering into a settlement. The sum of our accrued asbestos-related liability and gross payments to date, including legal costs, by us and our insurers totaled $ 610 613 million through June September 30, 2026 and $ 597 million through December 31, 2025.

1 unchanged paragraph

(Dollars in millions) Six Nine Months Ended June September 30, 2026 Year Ended

1 unchanged paragraph

New claims filed 600 800 800

Claims settled/dismissed ( 2,500 2,700 ) ( 5,800 )

2 unchanged paragraphs

We periodically, and at least annually, review our existing reserves for pending claims, including a reasonable estimate of the liability associated with unasserted asbestos claims, and estimate our receivables from probable insurance recoveries. We recorded gross liabilities for both asserted and unasserted claims, inclusive of defense costs, totaling $ 112 million and $ 107 million at June September 30, 2026 and December 31, 2025, respectively. In determining the estimate of our asbestos liability, we evaluated claims over the next ten-year period. Due to the difficulties in making these estimates, analysis based on new data and/or a change in circumstances arising in the future may result in an increase in the recorded obligation, and that increase could be significant.

1 unchanged paragraph

We recorded an insurance receivable related to asbestos claims of $ 58 million and $ 57 million at June September 30, 2026 and December 31, 2025, respectively. We expect that approximately 50 % of asbestos claim related losses would be recoverable through insurance during the ten-year period covered by the estimated liability. Of these amounts, $ 10 million was included in Current Assets as part of Accounts Receivable at both June September 30, 2026 and December 31, 2025. The recorded receivable consists of an amount we expect to collect under coverage-in-place agreements with certain primary and excess insurance carriers, as well as an amount we believe is probable of recovery from certain of our other excess insurance carriers.

6 unchanged paragraphs

We challenged the proposed adjustment through the established IRS administrative procedures and engaged in settlement discussions with the IRS. On July 29, 2026, we entered into a closing agreement with the IRS resolving all federal income tax consequences related to the 2021 transaction (the "IRS settlement"). As a result of the IRS settlement, in the third quarter of 2026, we expect to write-off wrote-off approximately $ 45 million of our deferred tax assets that were previously utilized to offset the related federal and state taxes. However, since our U.S. deferred tax assets are in a full valuation allowance, the write-off of those deferred tax assets will did not have a material impact on our operating results or cash flow.

2 unchanged paragraphs

We have off-balance sheet financial guarantees and other commitments totaling $ 15 million at both June September 30, 2026 and December 31, 2025. We issue guarantees to financial institutions or other entities on behalf of certain of our affiliates, lessors or customers. We generally do not require collateral in connection with the issuance of these guarantees.

In 2015, as a result of the dissolution of the global alliance with SRI, we issued a guarantee of $ 46 million to an insurance company related to SRI's obligation to pay certain outstanding workers' compensation claims of a formerly consolidated joint venture entity. As of June September 30, 2026, this guarantee amount has been reduced to $ 15 million. We have concluded the probability of our performance to be remote and, therefore, have not recorded a liability for this guarantee. While there is no fixed duration of this guarantee, we expect the amount of this guarantee to continue to decrease over time as the formerly consolidated joint venture entity pays its outstanding claims.

1 unchanged paragraph

We have an agreement to provide a revolving loan commitment to TireHub, LLC. During the first quarter of 2026, the revolving loan commitment decreased from $ 130 million to $ 100 million. The carrying value of our net investment in TireHub was $ 33 17 million and $ 44 million, which includes an outstanding loan receivable of $ 88 84 million and $ 103 million, including $ 1 million and $ 2 million of interest, at June September 30, 2026 and December 31, 2025, respectively, and was included in Other Assets on our Consolidated Balance Sheets. Our investment in TireHub is accounted for under the equity method of accounting and, as such, includes our 50 % share of the net income (losses) of TireHub.

Note 13: CAPITAL STOCK 1 change

1 unchanged paragraph

We may repurchase shares delivered to us by employees as payment for the exercise price of stock options and the withholding taxes due upon the exercise of stock options or the vesting or payment of stock awards. During the first six nine months of 2026, we did not repurchase any shares from employees.

Note 14: ACCUMULATED OTHER COMPREHENSIVE LOSS 20 changes

The following tables present changes in AOCL, by component, for the six nine months ended June September 30, 2026 and 2025, after tax and minority interest.

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and 19 more changes in the filing

MD&A 177 changes

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and 177 more changes in the filing

Market risk 15 changes

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and 15 more changes in the filing

Controls and procedures 1 change

2 unchanged paragraphs

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and 1 more change in the filing

Legal proceedings 2 changes

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and 2 more changes in the filing

Other information 1 change

and 1 more change in the filing

Exhibits 8 changes

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and 8 more changes in the filing