Goodyear Tire & Rubber Co., Akron, Ohio, completed the termination of the Cooper Tire U.S. salaried pension plan during the second quarter, the company disclosed in its 10-Q filing with the SEC on Wednesday.
Goodyear said in the filing that during the quarter ended June 30, it completed lump-sum payments to participants and purchased a group annuity contract to an undisclosed insurer. How the assets were split between the transactions was not disclosed.
Goodyear acquired Cooper Tire & Rubber Co., also based in Akron, Ohio, in June 2021 and announced its plan in 2022 to terminate its former competitor's salaried pension plan. The plan had been frozen to benefit accruals since 2009, according to Goodyear's most recent 10-K filing.
As of Dec. 31, the Cooper Tire salaried pension plan had $380 million in assets and $375 million in liabilities, according to the 10-K filing.
In the new 10-Q filing, Goodyear said there remains about $18 million in surplus assets from the Cooper Tire pension plan that will be contributed to Goodyear's U.S. salaried defined contribution savings plan.
Goodyear's own U.S. salaried pension plans have been frozen to benefit accruals since Dec. 31, 2008. Its U.S. hourly plans have been frozen since April 30, 2014.
Also in Wednesday's 10-Q filing, Goodyear disclosed it had completed the termination of Cooper Tire's Ireland pension plan, and also froze its own Canadian salaried pension plan's benefit accruals effective May 1.
As of Dec. 31, Goodyear's U.S. pension plan assets, which include the Cooper Tire plan assets, totaled $4.17 billion, while projected benefit obligations totaled $4.08 billion, for a funding ratio of 102.2%, according to the 10-K filing. Non-U.S. pension plan assets totaled $2.04 billion and liabilities were $2.23 billion.
Goodyear officials could not be immediately reached for further information.
