Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TENNECO INC | |
Entity Central Index Key | 1,024,725 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 57,808,791 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Net sales and operating revenues | $ 2,025 | $ 2,081 | $ 6,178 | $ 6,416 |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,707 | 1,735 | 5,157 | 5,340 |
Engineering, research, and development | 35 | 42 | 114 | 126 |
Selling, general, and administrative | 113 | 108 | 359 | 379 |
Depreciation and amortization of other intangibles | 53 | 52 | 154 | 155 |
Costs and expenses | 1,908 | 1,937 | 5,784 | 6,000 |
Other expense | ||||
Loss on sale of receivables | (1) | (1) | (3) | (3) |
Other | 0 | (3) | 0 | (4) |
Total other income (expense) | (1) | (4) | (3) | (7) |
Earnings before interest expense, income taxes, and noncontrolling interests | 116 | 140 | 391 | 409 |
Interest expense | 16 | 20 | 49 | 58 |
Earnings before income taxes and noncontrolling interests | 100 | 120 | 342 | 351 |
Income tax expense | 34 | 31 | 122 | 117 |
Net income | 66 | 89 | 220 | 234 |
Less: Net income attributable to noncontrolling interests | 14 | 11 | 41 | 29 |
Net income attributable to Tenneco Inc. | $ 52 | $ 78 | $ 179 | $ 205 |
Weighted average shares of common stock outstanding — | ||||
Basic (in shares) | 59,587,628 | 60,762,667 | 60,428,806 | 60,671,410 |
Diluted (in shares) | 60,020,995 | 61,713,851 | 60,946,772 | 61,635,062 |
Basic earnings per share of common stock (in dollars per share) | $ 0.89 | $ 1.29 | $ 2.97 | $ 3.39 |
Diluted earnings per share of common stock (in dollars per share) | $ 0.88 | $ 1.27 | $ 2.94 | $ 3.33 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | $ 66 | $ 89 | $ 220 | $ 234 |
Translation of foreign currency statements | (47) | (60) | (97) | (61) |
Additional Liability for Pension and Postretirement Benefits, net of tax | 4 | 2 | 9 | 8 |
Other Comprehensive Loss | (43) | (58) | (88) | (53) |
Comprehensive Income (Loss) | 23 | 31 | 132 | 181 |
Cumulative Translation Adjustment | ||||
Beginning balance | (213) | (57) | (163) | (56) |
Translation of foreign currency statements | (47) | (60) | (97) | (61) |
Ending balance | (260) | (117) | (260) | (117) |
Additional Liability for Pension and Postretirement Benefits | ||||
Beginning balance | (374) | (293) | (379) | (299) |
Additional Liability for Pension and Postretirement Benefits, net of tax | 4 | 2 | 9 | 8 |
Ending balance | (370) | (291) | (370) | (291) |
Balance, Ending | (630) | (408) | (630) | (408) |
Tenneco Inc. | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 52 | 78 | 179 | 205 |
Translation of foreign currency statements | (45) | (60) | (95) | (60) |
Additional Liability for Pension and Postretirement Benefits, net of tax | 4 | 2 | 9 | 8 |
Other Comprehensive Loss | (41) | (58) | (86) | (52) |
Comprehensive Income (Loss) | 11 | 20 | 93 | 153 |
Cumulative Translation Adjustment | ||||
Beginning balance | (216) | (61) | (166) | (61) |
Translation of foreign currency statements | (45) | (60) | (95) | (60) |
Ending balance | (261) | (121) | (261) | (121) |
Additional Liability for Pension and Postretirement Benefits | ||||
Beginning balance | (374) | (293) | (379) | (299) |
Additional Liability for Pension and Postretirement Benefits, net of tax | 4 | 2 | 9 | 8 |
Ending balance | (370) | (291) | (370) | (291) |
Balance, Ending | (631) | (412) | (631) | (412) |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 14 | 11 | 41 | 29 |
Translation of foreign currency statements | (2) | 0 | (2) | (1) |
Other Comprehensive Loss | (2) | 0 | (2) | (1) |
Comprehensive Income (Loss) | 12 | 11 | 39 | 28 |
Cumulative Translation Adjustment | ||||
Beginning balance | 3 | 4 | 3 | 5 |
Translation of foreign currency statements | (2) | 0 | (2) | (1) |
Ending balance | 1 | 4 | 1 | 4 |
Additional Liability for Pension and Postretirement Benefits | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Balance, Ending | $ 1 | $ 4 | $ 1 | $ 4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 220 | $ 282 |
Restricted cash | 2 | 3 |
Receivables — | ||
Customer notes and accounts, net | 1,259 | 1,064 |
Other | 22 | 24 |
Inventories — | ||
Finished goods | 264 | 272 |
Work in process | 253 | 221 |
Raw materials | 146 | 137 |
Materials and supplies | 57 | 58 |
Deferred income taxes | 72 | 81 |
Prepayments and other | 276 | 284 |
Total current assets | 2,571 | 2,426 |
Other assets: | ||
Long-term receivables, net | 14 | 12 |
Goodwill | 62 | 65 |
Intangibles, net | 23 | 26 |
Deferred income taxes | 157 | 143 |
Other | 97 | 106 |
Total other assets | 353 | 352 |
Plant, property, and equipment, at cost | 3,439 | 3,490 |
Less — Accumulated depreciation and amortization | (2,206) | (2,272) |
Plant, property and equipment, net | 1,233 | 1,218 |
Total Assets | 4,157 | 3,996 |
Current liabilities: | ||
Short-term debt (including current maturities of long-term debt) | 95 | 60 |
Trade payables | 1,364 | 1,372 |
Accrued taxes | 32 | 40 |
Accrued interest | 16 | 3 |
Accrued liabilities | 272 | 258 |
Other | 71 | 66 |
Total current liabilities | 1,850 | 1,799 |
Long-term debt | 1,246 | 1,055 |
Deferred income taxes | 16 | 18 |
Postretirement benefits | 314 | 339 |
Deferred credits and other liabilities | $ 212 | $ 212 |
Commitments and contingencies | ||
Total liabilities | $ 3,638 | $ 3,423 |
Redeemable noncontrolling interests | 36 | 35 |
Tenneco Inc. Shareholders’ equity: | ||
Common stock | 1 | 1 |
Premium on common stock and other capital surplus | 3,074 | 3,059 |
Accumulated other comprehensive loss | (631) | (545) |
Retained earnings (accumulated deficit) | (1,516) | (1,695) |
Shareholders Equity Before Deduction Of Treasury Stock, Total | 928 | 820 |
Less — Shares held as treasury stock, at cost | 481 | 323 |
Total Tenneco Inc. shareholders’ equity | 447 | 497 |
Noncontrolling interests | 36 | 41 |
Total equity | 483 | 538 |
Total liabilities, redeemable noncontrolling interests and equity | $ 4,157 | $ 3,996 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||||
Net Income | $ 66 | $ 89 | $ 220 | $ 234 |
Adjustments to reconcile net income to cash provided by operating activities — | ||||
Depreciation and amortization of other intangibles | 53 | 52 | 154 | 155 |
Deferred income taxes | 12 | (12) | (1) | (13) |
Stock-based compensation | 4 | 3 | 13 | 11 |
Loss on sale of assets | 1 | 3 | 2 | 5 |
Changes in components of working capital — | ||||
(Increase) decrease in receivables | (17) | 67 | (237) | (236) |
(Increase) decrease in inventories | (19) | (21) | (65) | (125) |
(Increase) decrease in prepayments and other current assets | (1) | (5) | (4) | (57) |
Increase (decrease) in payables | 7 | (44) | 70 | 116 |
Increase (decrease) in accrued taxes | (29) | 6 | (7) | 6 |
Increase (decrease) in accrued interest | 12 | 5 | 13 | 5 |
Increase (decrease) in other current liabilities | 13 | (10) | 31 | 14 |
Changes in long-term assets | 0 | 2 | 1 | 3 |
Changes in long-term liabilities | 2 | (17) | 0 | (27) |
Other | 2 | (3) | (2) | (2) |
Net cash provided by operating activities | 106 | 115 | 188 | 89 |
Investing Activities | ||||
Proceeds from the sale of assets | 1 | 1 | 3 | 1 |
Cash payments for plant, property, and equipment | (71) | (95) | (221) | (262) |
Cash payments for software related intangible assets | (5) | (3) | (13) | (12) |
Changes in restricted cash | 0 | 0 | 1 | 0 |
Net cash used by investing activities | (75) | (97) | (230) | (273) |
Financing Activities | ||||
Issuance (repurchase) of common shares | 0 | 0 | 5 | (1) |
Tax impact from stock-based compensation | (5) | 1 | 1 | 18 |
Retirement of long-term debt | (4) | (6) | (25) | (16) |
Issuance of long-term debt | 1 | 0 | 1 | 45 |
Debt issuance cost of long-term debt | 0 | 0 | (1) | 0 |
Purchase of common stock under the share repurchase program | (114) | 0 | (158) | 0 |
Net decrease in bank overdrafts | (10) | (4) | (21) | (5) |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable | 138 | (20) | 223 | 147 |
Net increase (decrease) in short-term borrowings secured by accounts receivable | (20) | 30 | 30 | 20 |
Capital contribution from noncontrolling interest partner | 0 | 0 | 0 | 5 |
Distributions to noncontrolling interest partners | (22) | 0 | (44) | (23) |
Net cash provided (used) by financing activities | (36) | 1 | 11 | 190 |
Effect of foreign exchange rate changes on cash and cash equivalents | (25) | (4) | (31) | (6) |
Increase (decrease) in cash and cash equivalents | (30) | 15 | (62) | 0 |
Cash and cash equivalents, July 1 and January 1, respectively | 250 | 260 | 282 | 275 |
Cash and cash equivalents, September 30 (Note) | 220 | 275 | 220 | 275 |
Supplemental Cash Flow Information | ||||
Cash paid during the period for interest | 5 | 15 | 38 | 53 |
Cash paid during the period for income taxes (net of refunds) | 44 | 24 | 79 | 98 |
Non-cash Investing and Financing Activities | ||||
Period end balance of trade payables for plant, property, and equipment | $ 37 | $ 39 | $ 37 | $ 39 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) $ in Millions | Total | Common Stock | Premium on Common Stock and Other Capital Surplus | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Less — Common Stock Held as Treasury Stock, at Cost | Tenneco Inc. | Noncontrolling Interests |
Beginning balance at Dec. 31, 2013 | $ 1 | $ 3,014 | $ (360) | $ (1,921) | $ 301 | $ 39 | ||
Beginning balance (in shares) at Dec. 31, 2013 | 63,714,728 | 2,844,692 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Premium on common stock issued pursuant to benefit plans | 27 | |||||||
Other comprehensive income (loss) | $ (53) | (52) | $ (52) | (1) | ||||
Net income attributable to Tenneco Inc. | 205 | 205 | ||||||
Purchase of common stock through stock repurchase program (in shares) | 0 | |||||||
Purchase of common stock through stock repurchase program | $ 0 | |||||||
Net income | 14 | |||||||
Issued pursuant to benefit plans | 75,528 | |||||||
Stock options exercised | 70,186 | |||||||
Other comprehensive income (loss), noncontrolling interest | (1) | |||||||
Dividends declared | (17) | |||||||
Ending balance (in shares) at Sep. 30, 2014 | 63,860,442 | 2,844,692 | ||||||
Ending balance at Sep. 30, 2014 | 648 | $ 1 | 3,041 | (412) | (1,716) | $ 301 | 613 | 35 |
Beginning balance at Dec. 31, 2014 | 538 | $ 1 | 3,059 | (545) | (1,695) | $ 323 | 41 | |
Beginning balance (in shares) at Dec. 31, 2014 | 64,454,248 | 3,244,692 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Premium on common stock issued pursuant to benefit plans | 15 | |||||||
Other comprehensive income (loss) | (88) | (86) | (86) | (2) | ||||
Net income attributable to Tenneco Inc. | 179 | 179 | ||||||
Purchase of common stock through stock repurchase program (in shares) | 3,104,763 | |||||||
Purchase of common stock through stock repurchase program | $ 158 | |||||||
Net income | 16 | |||||||
Issued pursuant to benefit plans | 0 | |||||||
Stock options exercised | 239,490 | |||||||
Other comprehensive income (loss), noncontrolling interest | (1) | |||||||
Dividends declared | (20) | |||||||
Ending balance (in shares) at Sep. 30, 2015 | 64,693,738 | 6,349,455 | ||||||
Ending balance at Sep. 30, 2015 | $ 483 | $ 1 | $ 3,074 | $ (631) | $ (1,516) | $ 481 | $ 447 | $ 36 |
Consolidation and Presentation
Consolidation and Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Presentation | Consolidation and Presentation As you read the accompanying financial statements you should also read our Annual Report on Form 10-K for the year ended December 31, 2014 . In our opinion, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly Tenneco Inc.’s results of operations, comprehensive income, financial position, cash flows, and changes in shareholders’ equity for the periods indicated. We have prepared the unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (U.S. GAAP) for annual financial statements. Our condensed consolidated financial statements include all majority-owned subsidiaries. We carry investments in 20 percent to 50 percent owned companies in which the Company does not have a controlling interest, as equity method investments, at cost plus equity in undistributed earnings since the date of acquisition and cumulative translation adjustments. We have eliminated all intercompany transactions. Prepayments and Other Prepayments and other included $138 million and $98 million at September 30, 2015 and December 31, 2014 , respectively, for in-process tools and dies that we are building for our original equipment customers. Trade Payables Trade payables included $106 million and $91 million at September 30, 2015 and December 31, 2014 , respectively, for accrued compensation and $18 million and $39 million at September 30, 2015 and December 31, 2014 , respectively, for bank overdrafts at our European subsidiaries. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The net carrying and estimated fair values of our financial instruments by class at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Net Carrying Amount Fair Value Net Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,247 $ 1,278 $ 1,057 $ 1,106 Instruments with off-balance sheet risk: Foreign exchange forward contracts: Asset derivative contracts — — — — Asset and Liability Instruments — The fair value of cash and cash equivalents, short and long-term receivables, accounts payable, and short-term debt was considered to be the same as or was not determined to be materially different from the carrying amount. Long-term Debt — The fair value of our public fixed rate senior notes is based on quoted market prices (level 1). The fair value of our private borrowings under our senior credit facility and other long-term debt instruments is based on the market value of debt with similar maturities, interest rates and risk characteristics (level 2). The fair value of our level 1 debt, as classified in the fair value hierarchy, was $744 million and $759 million at September 30, 2015 and December 31, 2014 , respectively. We have classified $503 million and $301 million as level 2 in the fair value hierarchy at September 30, 2015 and December 31, 2014 , respectively, since we use valuation inputs that are observable both directly and indirectly. We classified the remaining $31 million and $46 million , consisting of foreign subsidiary debt, as level 3 in the fair value hierarchy at September 30, 2015 and December 31, 2014 , respectively. The fair value hierarchy definition prioritizes the inputs used in measuring fair value into the following levels: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. Level 3 — Unobservable inputs based on our own assumptions. Foreign Exchange Forward Contracts — We use derivative financial instruments, principally foreign currency forward purchase and sales contracts with terms of less than one year , to hedge our exposure to changes in foreign currency exchange rates. Our primary exposure to changes in foreign currency rates results from intercompany loans made between affiliates to minimize the need for borrowings from third parties. Additionally, we enter into foreign currency forward purchase and sale contracts to mitigate our exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. We manage counter-party credit risk by entering into derivative financial instruments with major financial institutions that can be expected to fully perform under the terms of such agreements. We do not enter into derivative financial instruments for speculative purposes. The fair value of our foreign currency forward contracts is based on an internally developed model which incorporates observable inputs including quoted spot rates, forward exchange rates and discounted future expected cash flows utilizing market interest rates with similar quality and maturity characteristics. We record the change in fair value of these foreign exchange forward contracts as part of currency gains (losses) within cost of sales in the condensed consolidated statements of income. The fair value of foreign exchange forward contracts are recorded in prepayments and other current assets or other current liabilities in the condensed consolidated balance sheet. The fair value of our foreign exchange forward contracts was a net liability position of less than $1 million at both September 30, 2015 and December 31, 2014 . The following table summarizes by major currency the notional amounts for foreign currency forward purchase and sale contracts as of September 30, 2015 (all of which mature in 2015): Notional Amount in Foreign Currency (Millions) Australian dollars —Purchase 1 British pounds —Purchase 6 Canadian dollars —Sell (4 ) European euro —Sell (12 ) South African rand —Purchase 99 Japanese yen —Purchase 456 —Sell (967 ) Polish zloty —Sell (3 ) U.S. dollars —Purchase 24 —Sell (18 ) Guarantees —We have from time to time issued guarantees for the performance of obligations by some of our subsidiaries, and some of our subsidiaries have guaranteed our debt. All of our existing and future material domestic wholly-owned subsidiaries fully and unconditionally guarantee our senior credit facility and our senior notes on a joint and several basis. The arrangement for the senior credit facility is also secured by first-priority liens on substantially all our domestic assets and pledges of up to 66 percent of the stock of certain first-tier foreign subsidiaries. No assets or capital stock secure our senior notes. For additional information, refer to Note 13 of our condensed consolidated financial statements, where we present the Supplemental Guarantor Condensed Consolidating Financial Statements. We have two performance guarantee agreements in the U.K. between Tenneco Management Europe Limited (“TMEL”) and the two Walker Group Retirement Plans, the Walker Group Employee Benefit Plan and the Walker Group Executive Retirement Benefit Plan (the “Walker Plans”), whereby TMEL will guarantee the payment of all current and future pension contributions in the event of a payment default by the sponsoring or participating employers of the Walker Plans. The Walker Plans are comprised of employees from Tenneco Walker (U.K.) Limited and our Futaba-Tenneco U.K. joint venture. Employer contributions are funded by both Tenneco Walker (U.K.) Limited, as the sponsoring employer and Futaba-Tenneco U.K., as a participating employer. The performance guarantee agreements are expected to remain in effect until all pension obligations for the Walker Plans’ sponsoring and participating employers have been satisfied. The maximum amount payable for these pension performance guarantees that is not attributable to Tenneco is approximately $9 million as of September 30, 2015 which is determined by taking 105 percent of the liability of the Walker Plans calculated under section 179 of the U.K. Pension Act of 2004 offset by plan assets multiplied by the ownership percent attributable to Futaba-Tenneco U.K. We did not record an additional liability for this performance guarantee since Tenneco Walker (U.K.) Limited, as the sponsoring employer of the Walker Plans, already recognizes 100 percent of the pension obligation calculated based on U.S. GAAP, for all of the Walker Plans’ participating employers on its balance sheet, which was $14 million and $17 million at September 30, 2015 and December 31, 2014 , respectively. At September 30, 2015 , all pension contributions under the Walker Plans were current for all of the Walker Plans’ sponsoring and participating employers. In June 2011, we entered into an indemnity agreement between TMEL and Futaba Industrial Co. Ltd. which requires Futaba to indemnify TMEL for any cost, loss or liability which TMEL may incur under the performance guarantee agreements relating to the Futaba-Tenneco U.K. joint venture. The maximum amount reimbursable by Futaba to TMEL under this indemnity agreement is equal to the amount incurred by TMEL under the performance guarantee agreements multiplied by Futaba’s shareholder ownership percentage of the Futaba-Tenneco U.K. joint venture. At September 30, 2015 , the maximum amount reimbursable by Futaba to TMEL is approximately $9 million . We have issued letters of credit in connection with some obligations of our affiliates. As of September 30, 2015 , we have issued $41 million in letters of credit to support some of our subsidiaries’ insurance arrangements, foreign employee benefit programs, environmental remediation activities and cash management and capital requirements. Financial Instruments — One of our European subsidiaries receives payment from one of its customers whereby the accounts receivable are satisfied through the early delivery of financial instruments. We may collect these financial instruments before their maturity date by either selling them at a discount or using them to satisfy accounts receivable that have previously been sold to a European bank. Any of these financial instruments which are not sold are classified as other current assets. No such financial instruments were held by our European subsidiary as of September 30, 2015 or December 31, 2014 . In certain instances, several of our Chinese subsidiaries receive payments from customers through the receipt of financial instruments on the date the customer payments are due. Several of our Chinese subsidiaries also satisfy vendor payments through the delivery of financial instruments on the date the payments are due. Financial instruments issued to satisfy vendor payables and not redeemed totaled $20 million and $24 million at September 30, 2015 and December 31, 2014 , respectively, and were classified as notes payable. Financial instruments received from OE customers and not redeemed totaled $15 million and $17 million at September 30, 2015 and December 31, 2014 , respectively. We classify financial instruments received from our customers as other current assets if issued by a financial institution of our customers or as customer notes and accounts, net if issued by our customer. We classified $15 million and $17 million in other current assets at September 30, 2015 and December 31, 2014 , respectively. The financial instruments received by one of our European subsidiaries and some of our Chinese subsidiaries are drafts drawn that are payable at a future date and, in some cases, are negotiable and/or are guaranteed by banks of the customers. The use of these instruments for payment follows local commercial practice. Because certain of such financial instruments are guaranteed by our customers’ banks, we believe they represent a lower financial risk than the outstanding accounts receivable that they satisfy which are not guaranteed by a bank. Supply Chain Financing — Certain of our suppliers in the U.S. participate in a supply chain financing program under which they securitize their accounts receivables from Tenneco. Financial institutions participate in the supply chain financing program on an uncommitted basis and can cease purchasing receivables from Tenneco's suppliers at any time. If the financial institutions did not continue to purchase receivables from Tenneco's suppliers under this program, the participating vendors may have a need to renegotiate their payment terms with Tenneco which in turn would cause our borrowings under our revolving credit facility to increase. The liquidity benefit to Tenneco from the extended payment terms totaled $20 million at September 30, 2015 . Restricted Cash - Some of our Chinese subsidiaries that issue their own financial instruments to pay vendors are required to maintain a cash balance if they exceed credit limits with the financial institution that guarantees the financial instruments. A restricted cash balance was required at those Chinese subsidiaries at September 30, 2015 for $2 million and was not required at December 31, 2014 . |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | Long-Term Debt and Financing Arrangements Our financing arrangements are primarily provided by a committed senior secured financing arrangement with a syndicate of banks and other financial institutions. The arrangement is secured by substantially all our domestic assets and pledges of up to 66 percent of the stock of certain first-tier foreign subsidiaries, as well as guarantees by our material domestic subsidiaries. In April 2015, the FASB issued Accounting Standard Update 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. We adopted this standard for the first quarter of 2015 and applied retrospectively. The balance for unamortized debt issuance costs was $12 million and $14 million at September 30, 2015 and December 31, 2014 , respectively. On December 8, 2014, we completed an amendment and restatement of our senior credit facility by increasing the amount and extending the maturity dates of our revolving credit facility and our Tranche A Term Facility. As of September 30, 2015 , the senior credit facility provides us with a total revolving credit facility size of $1,200 million and had a $289 million balance outstanding under the Tranche A Term Facility, both of which will mature on December 8, 2019 . Net carrying amount for the balance outstanding under the Tranche A Term Facility including a $2 million debt issuance cost was $287 million as of September 30, 2015 . Funds may be borrowed, repaid and re-borrowed under the revolving credit facility without premium or penalty (subject to any customary LIBOR breakage fees). The revolving credit facility is reflected as debt on our balance sheet only if we borrow money under this facility or if we use the facility to make payments for letters of credit. Outstanding letters of credit reduce our availability to borrow revolving loans under the facility. We are required to make quarterly principal payments under the Tranche A Term Facility of $3.75 million through December 31, 2016 , $5.625 million beginning March 31, 2017 through December 31, 2017, $7.5 million beginning March 31, 2018 through September 30, 2019 and a final payment of $195 million is due on December 8, 2019. We have excluded the required payments, within the next twelve months, under the Tranche A Term Facility totaling $15 million from current liabilities as of September 30, 2015 , because we have the intent and ability to refinance the obligations on a long-term basis by using our revolving credit facility. The financial ratios required under the amended and restated senior credit facility, and the actual ratios we achieved for the three quarters of 2015, are as follows: Quarter Ended September 30, 2015 June 30, 2015 March 31, 2015 Required Actual Required Actual Required Actual Leverage Ratio (maximum) 3.50 1.51 3.50 1.36 3.50 1.41 Interest Coverage Ratio (minimum) 2.75 13.07 2.75 12.43 2.75 11.95 The senior credit facility includes a maximum leverage ratio covenant of 3.50 and a minimum interest coverage ratio of 2.75 , in each case through December 8, 2019. At September 30, 2015 , of the $1,200 million available under the revolving credit facility, we had unused borrowing capacity of $979 million with $214 million in outstanding borrowings and $7 million in outstanding letters of credit. As of September 30, 2015 , our outstanding debt also included (i) $289 million of a term loan which consisted of a $287 million net carrying amount including a $2 million debt issuance cost related to our Tranche A Term Facility which is subject to quarterly principal payments as described above through December 8, 2019 , (ii) $225 million of notes which consisted of a $221 million net carrying amount including a $4 million debt issuance cost of 5 3 /8 percent senior notes due December 15, 2024 , (iii) $500 million of notes which consisted of a $494 million net carrying amount including a $6 million debt issuance cost of 6 7 /8 percent senior notes due December 15, 2020 , and (iv) $125 million of other debt. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim tax reporting we estimate our annual effective tax rate and apply it to our year to date ordinary income. Jurisdictions where no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a particular quarter due to the mix and timing of actual earnings versus annual projections. The tax effects of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. We reported income tax expense of $34 million and $31 million in the three month periods ended September 30, 2015 and 2014, respectively. The tax expense recorded in the third quarter of 2015 included a net tax benefit of $12 million primarily relating to tax adjustments to prior year U.S research and development tax credits. The tax expense recorded in the third quarter of 2014 included a net tax benefit of $10 million for tax adjustments to prior year income tax estimates. We reported income tax expense of $122 million and $117 million in the nine month periods ended September 30, 2015 and 2014, respectively. The tax expense recorded in the first nine months of 2015 included a net tax benefit of $9 million primarily relating to prior year U.S. research and development tax credits, prior year intercompany transactions and tax adjustments to prior year income tax estimates. The tax expense recorded in the first nine months of 2014 included a net tax benefit of $9 million for tax adjustments to prior year income tax estimates. We believe it is reasonably possible that up to $6 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the next twelve months. |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable Additional Disclosures [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable Securitization We securitize some of our accounts receivable on a limited recourse basis in North America and Europe. As servicer under these accounts receivable securitization programs, we are responsible for performing all accounts receivable administration functions for these securitized financial assets including collections and processing of customer invoice adjustments. In North America, we have an accounts receivable securitization program with three commercial banks comprised of a first priority facility and a second priority facility. We securitize original equipment and aftermarket receivables on a daily basis under the bank program. In March 2015, the North American program was amended and extended to April 30, 2017. The first priority facility provides financing of up to $130 million and the second priority facility, which is subordinated to the first priority facility, provides up to an additional $50 million of financing. Both facilities monetize accounts receivable generated in the U.S. and Canada that meet certain eligibility requirements, and the second priority facility also monetizes certain accounts receivable generated in the U.S. and Canada that would otherwise be ineligible under the first priority securitization facility. The amount of outstanding third-party investments in our securitized accounts receivable under the North American program was $30 million at September 30, 2015 and zero at December 31, 2014 . Each facility contains customary covenants for financings of this type, including restrictions related to liens, payments, mergers or consolidations and amendments to the agreements underlying the receivables pool. Further, each facility may be terminated upon the occurrence of customary events (with customary grace periods, if applicable), including breaches of covenants, failure to maintain certain financial ratios, inaccuracies of representations and warranties, bankruptcy and insolvency events, certain changes in the rate of default or delinquency of the receivables, a change of control and the entry or other enforcement of material judgments. In addition, each facility contains cross-default provisions, where the facility could be terminated in the event of non-payment of other material indebtedness when due and any other event which permits the acceleration of the maturity of material indebtedness. We also securitize receivables in our European operations with regional banks in Europe. The arrangements to securitize receivables in Europe are provided under six separate facilities provided by various financial institutions in each of the foreign jurisdictions. The commitments for these arrangements are generally for one year , but some may be canceled with notice 90 days prior to renewal. In some instances, the arrangement provides for cancellation by the applicable financial institution at any time upon notification. The amount of outstanding third-party investments in our securitized accounts receivable in Europe was $192 million and $153 million at September 30, 2015 and December 31, 2014 , respectively. If we were not able to securitize receivables under either the North American or European securitization programs, our borrowings under our revolving credit agreement might increase. These accounts receivable securitization programs provide us with access to cash at costs that are generally favorable to alternative sources of financing, and allow us to reduce borrowings under our revolving credit agreement. In our North American accounts receivable securitization programs, we transfer a partial interest in a pool of receivables and the interest that we retain is subordinate to the transferred interest. Accordingly, we account for our North American securitization program as a secured borrowing. In our European programs, we transfer accounts receivables in their entirety to the acquiring entities and satisfy all of the conditions established under ASC Topic 860, “Transfers and Servicing,” to report the transfer of financial assets in their entirety as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under our European securitization programs approximates the fair value of such receivables. We recognized $1 million interest expense in each of the three month periods ended September 30, 2015 and 2014 , and $2 million in each of the nine month periods ended September 30, 2015 and 2014, relating to our North American securitization program. In addition, we recognized a loss of $1 million in each of the three month periods ended September 30, 2015 and 2014 , and $3 million in each of the nine month periods ended September 30, 2015 and 2014 , on the sale of trade accounts receivable in our European accounts receivable securitization programs, representing the discount from book values at which these receivables were sold to our banks. The discount rate varies based on funding costs incurred by our banks, which averaged approximately two percent during the first nine months of both 2015 and 2014. |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges Over the past several years, we have adopted plans to restructure portions of our operations. These plans were approved by our Board of Directors and were designed to reduce operational and administrative overhead costs throughout the business. For the full year 2014, we incurred $49 million in restructuring and related costs including non-cash charges of $5 million , primarily related to European cost reduction efforts, headcount reductions in Australia and South America, the sale of a closed facility in Cozad, Nebraska and costs related to organizational changes, of which $28 million was recorded in cost of sales, $9 million in SG&A, $7 million in engineering expense, $4 million in other expense and $1 million in depreciation and amortization expense. In the third quarter of 2015, we incurred $35 million in restructuring and related costs including asset write-downs of $9 million , primarily related to European cost reduction efforts, exiting the Marzocchi suspension business, and headcount reductions in Australia and South America, of which $27 million was recorded in cost of sales, $3 million in SG&A, $1 million in engineering expense and $4 million in depreciation and amortization expense. In the third quarter of 2014, we incurred $8 million in restructuring and related costs including non-cash charges of $2 million , primarily related to European cost reduction efforts, headcount reductions in Australia and the sale of a closed facility in Cozad, Nebraska, of which $5 million was recorded in cost of sales and $3 million in other expense. In the first nine months of 2015, we incurred $47 million in restructuring and related costs including asset write-downs of $9 million , primarily related to European cost reduction efforts, exiting the Marzocchi suspension business, headcount reductions in Australia and South America, and the closure of a JIT plant in Australia, of which $37 million was recorded in cost of sales, $5 million in SG&A, $1 million in engineering expense and $4 million in depreciation and amortization expense. In the first nine months of 2014, we incurred $28 million in restructuring and related costs including non-cash charges of $3 million , primarily related to European cost reduction efforts, headcount reductions in Australia and South America and the sale of a closed facility in Cozad, Nebraska, of which $20 million was recorded in cost of sales, $3 million in SG&A, $1 million in engineering expense and $4 million in other expense. Amounts related to activities that are part of our restructuring reserves are as follows: December 31, 2015 2015 Impact of Exchange Rates September 30, 2015 (Millions) Employee Severance, Termination Benefits and Other Related Costs $40 38 (30 ) (3 ) $45 On January 31, 2013, we announced our intent to reduce structural costs in Europe by approximately $60 million annually. We still expect to reach our target annual savings rate in 2016, however the recent dramatic changes in exchange rates will likely have an impact on the actual savings achieved when translated from Euros into U.S. dollars. In the third quarter of 2015, we incurred $35 million in restructuring and related costs, of which $5 million was related to this initiative. In the first nine months of 2015, we incurred $47 million in restructuring and related costs, of which $12 million was related to this initiative. While we are nearing the completion of this initiative, we expect to incur additional restructuring and related costs in 2015 and 2016 due to certain ongoing matters. For example, we closed a plant in Gijon Spain in 2013, but subsequently re-opened it in July 2014 with about half of its prior workforce after the employees' works council successfully filed suit challenging the closure decision. Pursuant to an agreement we entered into with employee representatives, we are currently engaged in a sales process for the facility and intend to continue operating it until a complete transfer of ownership takes place in 2016. On July 22, 2015, we announced our intention to discontinue our Marzocchi motor bike fork suspension business and our mountain bike business, and liquidate our Marzocchi operations. These actions are subject to a consultation process with the employee representatives and in total would eliminate approximately 138 jobs. We employed 127 people at the Marzocchi plant in Bologna, Italy and an additional 11 people in our operations in North America and Taiwan. We intend to assist our motor bike customers with the transition of current production to an alternative supplier and expect to complete the closure by the end of 2015. On October 19, 2015, we entered into an agreement to sell our mountain bike business to Fox Factory, Inc. This intended action is a part of our ongoing efforts to optimize our Ride Performance business globally while continuously improving our operations and increasing profitability. We recorded charges of $25 million in the third quarter of 2015 related to severance and other employee related costs, asset write-downs and other expenses related to the closure. Under the terms of our amended and restated senior credit agreement that took effect on December 8, 2014, we are allowed to exclude up to $150 million in the aggregate of all costs, expenses, fees, fines, penalties, judgments, legal settlements and other amounts associated with any restructuring, litigation, claim, proceeding or investigation related to or undertaken by us or any of our subsidiaries, together with any related provision for taxes, incurred after December 8, 2014 in the calculation of the financial covenant ratios required under our senior credit facility. As of September 30, 2015 , we had excluded $38 million of allowable charges relating to restructuring initiatives against the $150 million available under the terms of the senior credit facility. |
Environmental Matters, Litigati
Environmental Matters, Litigation and Product Warranties | 9 Months Ended |
Sep. 30, 2015 | |
Environmental Matters, Litigation and Product Warranties [Abstract] | |
Environmental Matters, Litigation and Product Warranties | Environmental Matters, Legal Proceedings and Product Warranties We are involved in environmental remediation matters, legal proceedings, claims, investigations and warranty obligations. These matters are typically incidental to the conduct of our business and create the potential for contingent losses. We accrue for potential contingent losses when our review of available facts indicates that it is probable a loss has been incurred and the amount of the loss is reasonably estimable. Each quarter we assess our loss contingencies based upon currently available facts, existing technology, presently enacted laws and regulations and taking into consideration the likely effects of inflation and other societal and economic factors and record adjustments to these reserves as required. As an example, we consider all available evidence, including prior experience in remediation of contaminated sites, other companies’ cleanup experiences and data released by the United States Environmental Protection Agency or other organizations when we evaluate our environmental remediation contingencies. All of our loss contingency estimates are subject to revision in future periods based on actual costs or new information. With respect to our environmental liabilities, where future cash flows are fixed or reliably determinable, we have discounted those liabilities. We evaluate recoveries separately from the liability and, when they are assured, recoveries are recorded and reported separately from the associated liability in our consolidated financial statements. Environmental Matters We are subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which we operate. We expense or capitalize, as appropriate, expenditures for ongoing compliance with environmental regulations that relate to current operations. We expense costs related to an existing condition caused by past operations that do not contribute to current or future revenue generation. As of September 30, 2015 , we have the obligation to remediate or contribute towards the remediation of certain sites, including one Federal Superfund site. At September 30, 2015 , our aggregated estimated share of environmental remediation costs for all these sites on a discounted basis was approximately $15 million , of which $3 million is recorded in other current liabilities and $12 million is recorded in deferred credits and other liabilities in our condensed consolidated balance sheet. For those locations where the liability was discounted, the weighted average discount rate used was 1.9 percent . The undiscounted value of the estimated remediation costs was $18 million . Our expected payments of environmental remediation costs are estimated to be approximately $1 million in 2015, $2 million in 2016, $1 million each year beginning 2017 through 2019 and $12 million in aggregate thereafter. Based on information known to us, we have established reserves that we believe are adequate for these costs. Although we believe these estimates of remediation costs are reasonable and are based on the latest available information, the costs are estimates and are subject to revision as more information becomes available about the extent of remediation required. At some sites, we expect that other parties will contribute to the remediation costs. In addition, certain environmental statutes provide that our liability could be joint and several, meaning that we could be required to pay in excess of our share of remediation costs. Our understanding of the financial strength of other potentially responsible parties at these sites has been considered, where appropriate, in our determination of our estimated liability. We do not believe that any potential costs associated with our current status as a potentially responsible party in the Federal Superfund site, or as a liable party at the other locations referenced herein, will be material to our consolidated financial position, results of operations, or liquidity. Antitrust Investigations On March 25, 2014, representatives of the European Commission were at Tenneco GmbH's Edenkoben, Germany administrative facility to gather information in connection with an ongoing global antitrust investigation concerning multiple automotive suppliers. On March 25, 2014, we also received a related subpoena from the U.S. Department of Justice (“DOJ”). On November 5, 2014, the DOJ granted us conditional leniency pursuant to an agreement we entered into under the Antitrust Division’s Corporate Leniency Policy. This agreement provides us with important benefits in exchange for our self reporting of matters to the DOJ and our continuing full cooperation with the DOJ’s resulting investigation. For example, the DOJ will not bring any criminal antitrust prosecution against us, nor seek any criminal fines or penalties, in connection with the matters we reported to the DOJ. Additionally, there are limits on our liability related to any follow on civil antitrust litigation in the U.S. The limits include single rather than treble damages, as well as relief from joint and several antitrust liability with other relevant civil antitrust action defendants. These limits are subject to our satisfying the DOJ and any court presiding over such follow on civil litigation. We cannot provide any assurance as to when such actions will be filed in the future or how they will ultimately be resolved. Certain other competition agencies are also investigating possible violations of antitrust laws relating to products supplied by our company. We have cooperated and continue to cooperate fully with all of these antitrust investigations, and take other actions to minimize our potential exposure. Antitrust law investigations and related matters often continue for several years and can result in significant penalties and liability. At this point, we cannot estimate the ultimate impact on our company from investigations into our antitrust compliance and related matters in light of the uncertainties and many variables involved, and there can be no assurance that the ultimate resolution of these matters, including any civil litigation claims, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. Other Legal Proceedings, Claims and Investigations We are also from time to time involved in other legal proceedings, claims or investigations. Some of these matters involve allegations of damages against us relating to environmental liabilities (including toxic tort, property damage and remediation), intellectual property matters (including patent, trademark and copyright infringement, and licensing disputes), personal injury claims (including injuries due to product failure, design or warning issues, and other product liability related matters), taxes, employment matters, and commercial or contractual disputes, sometimes related to acquisitions or divestitures. Additionally, some of these matters involve allegations relating to legal compliance. For example, one of our Argentine subsidiaries is currently defending against a criminal complaint alleging the failure to comply with laws requiring the proceeds of export transactions to be collected, reported and/or converted to local currency within specified time periods. As another example, in the U.S. we are subject to an audit in 11 states with respect to the payment of unclaimed property to those states, spanning a period as far back as over 30 years . While we vigorously defend ourselves against all of these legal proceedings, claims and investigations and take other actions to minimize our potential exposure, in future periods, we could be subject to cash costs or charges to earnings if any of these matters are resolved on unfavorable terms. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, including our assessment of the merits of the particular claim, except as described above under "Antitrust Investigations," we do not expect the legal proceedings, claims or investigations currently pending against us will have any material adverse impact on our consolidated financial position, results of operations or liquidity. In addition, we are subject to lawsuits initiated by a significant number of claimants alleging health problems as a result of exposure to asbestos. In the early 2000's we were named in nearly 20,000 complaints, most of which were filed in Mississippi state court and the vast majority of which made no allegations of exposure to asbestos from our product categories. Most of these claims have been dismissed and our current docket of active and inactive cases is less than 500 cases nationwide. A small number of claims have been asserted against one of our subsidiaries by railroad workers alleging exposure to asbestos products in railroad cars. The substantial majority of the remaining claims are related to alleged exposure to asbestos in our automotive products although a significant number of those claims appear to involve workers in industries that are not automotive-related or otherwise do not include sufficient information to determine whether there is any basis for a claim against us. We believe, based on scientific and other evidence, it is unlikely that claimants were exposed to asbestos by our former products and that, in any event, they would not be at increased risk of asbestos-related disease based on their work with these products. Further, many of these cases involve numerous defendants, with the number in some cases exceeding 100 defendants from a variety of industries. Additionally, the plaintiffs either do not specify any, or specify the jurisdictional minimum, dollar amount for damages. As major asbestos manufacturers and/or users continue to go out of business or file for bankruptcy, we may experience an increased number of these claims. We vigorously defend ourselves against these claims as part of our ordinary course of business. In future periods, we could be subject to cash costs or charges to earnings if any of these matters are resolved unfavorably to us. To date, with respect to claims that have proceeded sufficiently through the judicial process, we have regularly achieved favorable resolutions. Accordingly, we presently believe that these asbestos-related claims will not have a material adverse impact on our future consolidated financial position, results of operations or liquidity. Warranty Matters We provide warranties on some of our products. The warranty terms vary but range from one year up to limited lifetime warranties on some of our premium aftermarket products. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified on OE products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. We actively study trends of our warranty claims and take action to improve product quality and minimize warranty claims. We believe that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. The reserve is included in both current and long-term liabilities on the balance sheet. Below is a table that shows the activity in the warranty accrual accounts: Nine Months Ended September 30, 2015 2014 (Millions) Beginning Balance January 1, $ 26 $ 24 Accruals related to product warranties 11 18 Reductions for payments made (13 ) (16 ) Ending Balance September 30, $ 24 $ 26 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share of common stock outstanding were computed as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Millions Except Share and Per Share Amounts) Basic earnings per share — Net income attributable to Tenneco Inc. $ 52 $ 78 $ 179 $ 205 Weighted Average shares of common stock outstanding 59,587,628 60,762,667 60,428,806 60,671,410 Earnings per share of common stock $ 0.89 $ 1.29 $ 2.97 $ 3.39 Diluted earnings per share — Net income attributable to Tenneco Inc. $ 52 $ 78 $ 179 $ 205 Weighted Average shares of common stock outstanding 59,587,628 60,762,667 60,428,806 60,671,410 Effect of dilutive securities: Restricted stock 76,203 122,865 91,615 135,170 Stock options 357,164 828,319 426,351 828,482 Weighted Average shares of common stock outstanding including dilutive securities 60,020,995 61,713,851 60,946,772 61,635,062 Earnings per share of common stock $ 0.88 $ 1.27 $ 2.94 $ 3.33 Options to purchase 175,343 and 834 shares of common stock were outstanding as of September 30, 2015 and 2014, respectively, but not included in the computation of diluted earnings per share respectively, because the options were anti-dilutive. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock | Common Stock Equity Plans — We have granted a variety of awards, including common stock, restricted stock, restricted stock units, performance units, stock appreciation rights (“SARs”), and stock options to our directors, officers, and employees. Accounting Methods — We recorded compensation expense (net of taxes) of $1 million in each of the three month periods ended September 30, 2015 and 2014, respectively and $2 million and $3 million in compensation expense for each of the nine month periods ended September 30, 2015 and 2014, respectively, related to nonqualified stock options as part of our selling, general and administrative expense. This resulted in a decrease of $0.01 in both basic and diluted earnings per share for each of the three month periods ended September 30, 2015 and 2014 and a decrease of $0.03 and $0.05 in both basic and diluted earnings per share for the nine month period ended September 30, 2015 and 2014. For employees eligible to retire at the grant date, we immediately expense stock options and restricted stock. If employees become eligible to retire during the vesting period, we immediately recognize any remaining expense associated with their stock options and restricted stock. As of September 30, 2015 , there was approximately $3 million of unrecognized compensation costs related to our stock option awards that we expect to recognize over a weighted average period of 0.4 years. Compensation expense for restricted stock, restricted stock units, long-term performance units and SARs (net of taxes) was less than $1 million for the three month periods ended September 30, 2015 and 2014 and $10 million for each of the nine month periods ended September 30, 2015 and 2014, and was recorded in selling, general, and administrative expense in our condensed consolidated statements of income. Cash received from stock option exercises for the nine months ended September 30, 2015 and 2014 was $4 million and $1 million , respectively. Stock options exercised in the first nine months of 2015 and 2014 generated a tax benefit of $6 million and $4 million , respectively. We started to record this tax benefit in the third quarter of 2013 when we began utilizing our federal and state NOLs. Assumptions — We calculated the fair values of stock option awards using the Black-Scholes option pricing model with the weighted average assumptions listed below. The fair value of share-based awards is determined at the time the awards are granted which is generally in January of each year, and requires judgment in estimating employee and market behavior. There were no stock options granted in 2015. Nine Months Ended September 30, 2015 2014 Stock Options Granted Weighted average grant date fair value, per share $ — $ 26.46 Weighted average assumptions used: Expected volatility — % 52.8 % Expected lives 5.0 Risk-free interest rates — % 1.7 % Dividend yields — % — % Expected volatility is calculated based on current implied volatility and historical realized volatility for the Company. Expected lives of options are based upon the historical and expected time to post-vesting forfeiture and exercise. We believe this method is the best estimate of the future exercise patterns currently available. The risk-free interest rates are based upon the Constant Maturity Rates provided by the U.S. Treasury. For our valuations, we used the continuous rate with a term equal to the expected life of the options. Stock Options — The following table reflects the status and activity for all options to purchase common stock for the period indicated: Nine Months Ended September 30, 2015 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options Outstanding, January 1, 2015 1,454,003 $ 31.16 4.4 $ 33 Canceled (20,427 ) 23.75 Exercised (96,997 ) 20.78 3 Outstanding, March 31, 2015 1,336,579 $ 32.03 4.3 $ 31 Forfeited (7,531 ) 47.36 Exercised (141,644 ) 14.68 6 Outstanding, June 30, 2015 1,187,404 $ 34.00 4.2 $ 30 Exercised (749 ) 19.48 Outstanding, September 30, 2015 1,186,655 $ 33.99 3.9 $ 19 The weighted average grant-date fair value of options granted during the nine months ended September 30, 2014 was $26.48 . There were no stock options granted in 2015. The total fair value of shares vested was $4 million and $6 million for the periods ended September 30, 2015 and 2014, respectively. Restricted Stock — The following table reflects the status for all nonvested restricted shares for the period indicated: Nine Months Ended September 30, 2015 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2015 286,051 $ 42.35 Granted 350,101 53.40 Vested (150,171 ) 37.86 Nonvested balance at March 31, 2015 485,981 $ 51.70 Granted 17,164 56.06 Vested (13,008 ) 46.37 Forfeited (11,034 ) 48.85 Nonvested balance at June 30, 2015 479,103 $ 52.07 Granted 7,824 57.98 Vested (14,948 ) 49.98 Nonvested balance at September 30, 2015 471,979 $ 52.15 The fair value of restricted stock grants is usually equal to the average of the high and low trading price of our stock on the date of grant. As of September 30, 2015 , approximately $15 million of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of approximately 2.5 years. The total fair value of restricted shares vested was $6 million and $8 million at September 30, 2015 and 2014, respectively. In January 2015, our Board of Directors approved a share repurchase program, authorizing our company to repurchase up to $350 million of our outstanding common stock over a three -year period. This repurchase program does not obligate Tenneco to make repurchases at any specific time or situation and is part of our overall capital allocation strategy. We repurchased 3,104,763 shares for $158 million through this program in the nine months ended September 30, 2015 . In October 2015, our Board of Directors expanded our company's share repurchase plan, authorizing the repurchase of an additional $200 million of our company's outstanding common stock. This authorization is in addition to the $350 million share repurchase program our company announced in January, 2015. Repurchased shares held as part of our treasury stock were 6,349,455 and 3,244,692 shares at September 30, 2015 and December 31, 2014 , respectively. Long-Term Performance Units, Restricted Stock Units and SARs — Long-term performance units, restricted stock units and SARs are paid in cash and recognized as a liability based upon their fair value. As of September 30, 2015 , $18 million of total unrecognized compensation costs is expected to be recognized over a weighted-average period of approximately 1.9 years. |
Pension Plans, Postretirement a
Pension Plans, Postretirement and Other Employee Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans, Postretirement and Other Employee Benefits | Pension Plans, Postretirement and Other Employee Benefits Net periodic pension costs and postretirement benefit costs consist of the following components: Three Months Ended September 30, Pension Postretirement 2015 2014 2015 2014 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ — $ 3 $ 1 $ 2 $ — $ — Interest cost 4 2 5 5 — 1 Expected return on plan assets (5 ) (6 ) (6 ) (7 ) — — Net amortization: Actuarial loss 1 3 1 3 2 1 Prior service cost — 1 — — (1 ) (2 ) Net pension and postretirement costs $ — $ 3 $ 1 $ 3 $ 1 $ — Nine Months Ended September 30, Pension Postretirement 2015 2014 2015 2014 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ 1 $ 7 $ 1 $ 6 $ — $ — Interest cost 13 11 15 14 4 4 Expected return on plan assets (17 ) (16 ) (18 ) (19 ) — — Net amortization: Actuarial loss 5 6 5 7 4 2 Prior service cost (credit) — 1 — 1 (3 ) (5 ) Net pension and postretirement costs $ 2 $ 9 $ 3 $ 9 $ 5 $ 1 For the nine months ended September 30, 2015 , we made pension contributions of $1 million and $11 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $14 million for the remainder of 2015 . Pension contributions beyond 2015 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2015 . We made postretirement contributions of approximately $7 million during the first nine months of 2015 . Based on current actuarial estimates, we believe we will be required to contribute approximately $2 million for the remainder of 2015 . The assets of some of our pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools of the trusts. The investments for all our pension plans are recorded at estimated fair value, in compliance with the accounting guidance on fair value measurement. Amounts recognized for pension and postretirement benefits in other comprehensive income for the three and nine months periods ended September 30, 2015 and 2014 include the following components: Three Months Ended September 30, 2015 2014 Before-Tax Amount Tax Benefit Net-of-Tax Amount Before- Tax Amount Tax Benefit Net-of-Tax Amount (Millions) Defined benefit pension and postretirement plans: Amortization of prior service cost included in net periodic pension and postretirement cost $ — $ — $ — $ (2 ) $ — $ (2 ) Amortization of actuarial loss included in net periodic pension and postretirement cost 6 (2 ) 4 5 (1 ) 4 Other comprehensive income – pension benefits $ 6 $ (2 ) $ 4 $ 3 $ (1 ) $ 2 Nine Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before- Tax Net-of-Tax (Millions) Defined benefit pension and postretirement plans: Amortization of prior service cost included in net periodic pension and postretirement cost $ (2 ) $ — $ (2 ) $ (4 ) $ — $ (4 ) Amortization of actuarial loss included in net periodic pension and postretirement cost 15 (4 ) 11 14 (2 ) 12 Other comprehensive income – pension benefits $ 13 $ (4 ) $ 9 $ 10 $ (2 ) $ 8 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent). ASU No. 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Such investments should be disclosed separate from the fair value hierarchy. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this guidance is not expected to have an impact on the Company's consolidated financial statements but will impact pension asset disclosure. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. We adopted this standard for the first quarter of 2015 and applied retrospectively. Please refer to note 3 in our notes to condensed consolidated financial statements located in Part I Item 1 of this Form 10-Q for further discussion. In May 2014, the FASB issued an amendment on revenue recognition. The amendment in this update creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendment supersedes the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has voted to approve a one-year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 for public entities. We will adopt this amendment on January 1, 2018. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are managed and organized along our two major product lines (clean air and ride performance) and three geographic areas (North America; Europe, South America and India; and Asia Pacific), resulting in six operating segments (North America Clean Air, North America Ride Performance, Europe, South America and India Clean Air, Europe, South America and India Ride Performance, Asia Pacific Clean Air and Asia Pacific Ride Performance). Within each geographical area, each operating segment manufactures and distributes either clean air or ride performance products primarily for the original equipment and aftermarket industries. Each of the six operating segments constitutes a reportable segment. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the six operating segments as "Other." We evaluate segment performance based primarily on earnings before interest expense, income taxes, and noncontrolling interests. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the “market value” of the products. The following table summarizes certain Tenneco Inc. segment information: Clean Air Division Ride Performance Division North America Europe, South America & India Asia Pacific North America Europe, South America & India Asia Pacific Other Reclass & Elims Total (Millions) At September 30, 2015 and for the Three Months Ended September 30, 2015 Revenues from external customers $ 720 $ 453 $ 235 $ 330 $ 236 $ 51 $ — $ — $ 2,025 Intersegment revenues 4 27 — 3 7 12 — (53 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 58 14 31 39 (21 ) 9 (14 ) — 116 Total assets 1,292 775 532 768 557 200 — 33 4,157 At September 30, 2014 and for the Three Months Ended September 30, 2014 Revenues from external customers 700 484 247 342 252 56 — — 2,081 Intersegment revenues 4 30 — 3 9 12 — (58 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 56 14 27 38 9 10 (14 ) — 140 Total assets 1,228 895 576 713 542 240 — 27 4,221 At September 30, 2015 and for the Nine Months Ended September 30, 2015 Revenues from external customers $ 2,150 $ 1,381 $ 743 $ 1,021 $ 718 $ 165 $ — $ — $ 6,178 Intersegment revenues 11 79 — 8 22 37 — (157 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 179 36 86 125 (1 ) 27 (61 ) — 391 Total assets 1,292 775 532 768 557 200 — 33 4,157 At September 30, 2014 and for the Nine Months Ended September 30, 2014 Revenues from external customers 2,153 1,513 750 1,041 795 164 — — 6,416 Intersegment revenues 18 88 — 8 31 31 — (176 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 186 41 70 116 39 25 (68 ) — 409 Total assets 1,228 895 576 713 542 240 — 27 4,221 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Condensed Consolidating Financial Statements | Supplemental Guarantor Condensed Consolidating Financial Statements Basis of Presentation Substantially all of our existing and future material domestic 100% owned subsidiaries (which are referred to as the Guarantor Subsidiaries) fully and unconditionally guarantee our senior notes due in 2020 and 2024 on a joint and several basis. However, a subsidiary’s guarantee may be released in certain customary circumstances such as a sale of the subsidiary or all or substantially all of its assets in accordance with the indenture applicable to the notes. The Guarantor Subsidiaries are combined in the presentation below. These consolidating financial statements are presented on the equity method. Under this method, our investments are recorded at cost and adjusted for our ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. You should read the condensed consolidating financial information of the Guarantor Subsidiaries in connection with our condensed consolidated financial statements and related notes of which this note is an integral part. Distributions There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us. STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 936 $ 1,089 $ — $ — $ 2,025 Affiliated companies 102 135 — (237 ) — 1,038 1,224 — (237 ) 2,025 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 866 1,078 — (237 ) 1,707 Engineering, research, and development 18 17 — — 35 Selling, general, and administrative 41 71 1 — 113 Depreciation and amortization of other intangibles 22 31 — — 53 947 1,197 1 (237 ) 1,908 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) 10 8 — (18 ) — 10 7 — (18 ) (1 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 101 34 (1 ) (18 ) 116 Interest expense — External (net of interest capitalized) (1 ) — 17 — 16 Affiliated companies (net of interest income) 19 (19 ) — — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 83 53 (18 ) (18 ) 100 Income tax expense 22 12 — — 34 Equity in net income (loss) from affiliated companies 26 — 70 (96 ) — Net Income (loss) 87 41 52 (114 ) 66 Less: Net income attributable to noncontrolling interests — 14 — — 14 Net income (loss) attributable to Tenneco Inc. $ 87 $ 27 $ 52 $ (114 ) $ 52 Comprehensive income (loss) attributable to Tenneco Inc. $ 87 $ 27 $ 11 $ (114 ) $ 11 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 934 $ 1,147 $ — $ — $ 2,081 Affiliated companies 97 153 — (250 ) — 1,031 1,300 — (250 ) 2,081 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 789 1,196 — (250 ) 1,735 Engineering, research, and development 20 22 — — 42 Selling, general, and administrative 33 74 1 — 108 Depreciation and amortization of other intangibles 22 30 — — 52 864 1,322 1 (250 ) 1,937 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (2 ) 11 — (12 ) (3 ) (2 ) 10 — (12 ) (4 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 165 (12 ) (1 ) (12 ) 140 Interest expense — External (net of interest capitalized) — 1 19 — 20 Affiliated companies (net of interest income) 18 (19 ) 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 147 6 (21 ) (12 ) 120 Income tax expense 34 (3 ) — — 31 Equity in net income (loss) from affiliated companies (2 ) — 99 (97 ) — Net income (loss) 111 9 78 (109 ) 89 Less: Net income attributable to noncontrolling interests — 11 — — 11 Net income (loss) attributable to Tenneco Inc. $ 111 $ (2 ) $ 78 $ (109 ) $ 78 Comprehensive income (loss) attributable to Tenneco Inc. $ 111 $ (2 ) $ 20 $ (109 ) $ 20 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2015 Guarantor Nonguarantor Tenneco Inc. Reclass & Consolidated (Millions) Revenues Net sales and operating revenues — External $ 2,817 $ 3,361 $ — $ — $ 6,178 Affiliated companies 313 423 — (736 ) — 3,130 3,784 — (736 ) 6,178 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 2,609 3,284 — (736 ) 5,157 Engineering, research, and development 59 55 — — 114 Selling, general, and administrative 137 219 3 — 359 Depreciation and amortization of other intangibles 66 88 — — 154 2,871 3,646 3 (736 ) 5,784 Other income (expense) Loss on sale of receivables (1 ) (2 ) — — (3 ) Other income (expense) 37 11 — (48 ) — 36 9 — (48 ) (3 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 295 147 (3 ) (48 ) 391 Interest expense — External (net of interest capitalized) (2 ) 2 49 — 49 Affiliated companies (net of interest income) 56 (57 ) 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 241 202 (53 ) (48 ) 342 Income tax expense 83 39 — — 122 Equity in net income (loss) from affiliated companies 115 — 232 (347 ) — Net income (loss) 273 163 179 (395 ) 220 Less: Net income attributable to noncontrolling interests — 41 — — 41 Net income (loss) attributable to Tenneco Inc. $ 273 $ 122 $ 179 $ (395 ) $ 179 Comprehensive income (loss) attributable to Tenneco Inc. $ 273 $ 122 $ 93 $ (395 ) $ 93 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2014 Guarantor Nonguarantor Tenneco Inc. Reclass & Consolidated (Millions) Revenues Net sales and operating revenues — External $ 2,861 $ 3,555 $ — $ — $ 6,416 Affiliated companies 303 458 — (761 ) — 3,164 4,013 — (761 ) 6,416 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 2,566 3,535 — (761 ) 5,340 Engineering, research, and development 60 66 — — 126 Selling, general, and administrative 139 235 5 — 379 Depreciation and amortization of other intangibles 64 91 — — 155 2,829 3,927 5 (761 ) 6,000 Other income (expense) Loss on sale of receivables — (3 ) — — (3 ) Other income (expense) 23 11 — (38 ) (4 ) 23 8 — (38 ) (7 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 358 94 (5 ) (38 ) 409 Interest expense — External (net of interest capitalized) (1 ) 2 57 — 58 Affiliated companies (net of interest income) 55 (56 ) 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 304 148 (63 ) (38 ) 351 Income tax expense 70 47 — — 117 Equity in net income (loss) from affiliated companies 66 — 268 (334 ) — Net income (loss) 300 101 205 (372 ) 234 Less: Net income attributable to noncontrolling interests — 29 — — 29 Net income (loss) attributable to Tenneco Inc. $ 300 $ 72 $ 205 $ (372 ) $ 205 Comprehensive income (loss) attributable to Tenneco Inc. $ 300 $ 72 $ 153 $ (372 ) $ 153 BALANCE SHEET September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 2 $ 218 $ — $ — $ 220 Restricted cash — 2 — — 2 Receivables, net 428 1,328 — (475 ) 1,281 Inventories 350 370 — — 720 Deferred income taxes 48 18 6 — 72 Prepayments and other 87 189 — — 276 Total current assets 915 2,125 6 (475 ) 2,571 Other assets: Investment in affiliated companies 1,155 — 982 (2,137 ) — Notes and advances receivable from affiliates 935 12,688 4,875 (18,498 ) — Long-term receivables, net 11 3 — — 14 Goodwill 22 40 — — 62 Intangibles, net 10 13 — — 23 Deferred income taxes 79 24 54 — 157 Other 36 50 11 — 97 2,248 12,818 5,922 (20,635 ) 353 Plant, property, and equipment, at cost 1,281 2,158 — — 3,439 Less — Accumulated depreciation and amortization (855 ) (1,351 ) — — (2,206 ) 426 807 — — 1,233 Total assets $ 3,589 $ 15,750 $ 5,928 $ (21,110 ) $ 4,157 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 80 $ 15 $ — $ 95 Short-term debt — affiliated 116 213 — (329 ) — Trade payables 531 923 — (90 ) 1,364 Accrued taxes 14 18 — — 32 Other 141 259 15 (56 ) 359 Total current liabilities 802 1,493 30 (475 ) 1,850 Long-term debt — non-affiliated — 30 1,216 — 1,246 Long-term debt — affiliated 1,662 12,601 4,235 (18,498 ) — Deferred income taxes — 16 — — 16 Postretirement benefits and other liabilities 419 107 — — 526 Commitments and contingencies Total liabilities 2,883 14,247 5,481 (18,973 ) 3,638 Redeemable noncontrolling interests — 36 — — 36 Tenneco Inc. shareholders’ equity 706 1,431 447 (2,137 ) 447 Noncontrolling interests — 36 — — 36 Total equity 706 1,467 447 (2,137 ) 483 Total liabilities, redeemable noncontrolling interests and equity $ 3,589 $ 15,750 $ 5,928 $ (21,110 ) $ 4,157 BALANCE SHEET December 31, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 10 $ 272 $ — $ — $ 282 Restricted cash — 3 — — 3 Receivables, net 408 1,309 — (629 ) 1,088 Inventories 312 376 — — 688 Deferred income taxes 49 25 7 — 81 Prepayments and other 96 188 — — 284 Total current assets 875 2,173 7 (629 ) 2,426 Other assets: Investment in affiliated companies 1,064 — 764 (1,828 ) — Notes and advances receivable from affiliates 944 10,589 4,844 (16,377 ) — Long-term receivables, net 12 — — — 12 Goodwill 22 43 — — 65 Intangibles, net 10 16 — — 26 Deferred income taxes 76 14 53 — 143 Other 40 53 13 — 106 2,168 10,715 5,674 (18,205 ) 352 Plant, property, and equipment, at cost 1,236 2,254 — — 3,490 Less — Accumulated depreciation and amortization (845 ) (1,427 ) — — (2,272 ) 391 827 — — 1,218 Total assets $ 3,434 $ 13,715 $ 5,681 $ (18,834 ) $ 3,996 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 54 $ 6 $ — $ 60 Short-term debt — affiliated 243 220 9 (472 ) — Trade payables 478 1,000 — (106 ) 1,372 Accrued taxes (15 ) 31 24 — 40 Other 134 241 3 (51 ) 327 Total current liabilities 840 1,546 42 (629 ) 1,799 Long-term debt — non-affiliated — 44 1,011 — 1,055 Long-term debt — affiliated 1,730 10,516 4,131 (16,377 ) — Deferred income taxes — 18 — — 18 Postretirement benefits and other liabilities 418 129 — 4 551 Commitments and contingencies Total liabilities 2,988 12,253 5,184 (17,002 ) 3,423 Redeemable noncontrolling interests — 35 — — 35 Tenneco Inc. shareholders’ equity 446 1,386 497 (1,832 ) 497 Noncontrolling interests — 41 — — 41 Total equity 446 1,427 497 (1,832 ) 538 Total liabilities, redeemable noncontrolling interests and equity $ 3,434 $ 13,715 $ 5,681 $ (18,834 ) $ 3,996 STATEMENT OF CASH FLOWS Three Months Ended September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 17 $ 114 $ 4 $ (29 ) $ 106 Investing Activities Proceeds from sale of assets (1 ) 2 — — 1 Cash payments for plant, property, and equipment (36 ) (35 ) — — (71 ) Cash payments for software related intangible assets (2 ) (3 ) — — (5 ) Net cash used by investing activities (39 ) (36 ) — — (75 ) Financing Activities Tax impact from stock-based compensation — — (5 ) — (5 ) Retirement of long-term debt — (1 ) (3 ) — (4 ) Issuance of long-term debt — 1 — — 1 Purchase of common stock under the share repurchase program — — (114 ) — (114 ) Net decrease in bank overdrafts — (10 ) — — (10 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — (29 ) 167 — 138 Net decrease in short-term borrowings secured by accounts receivables — — (20 ) — (20 ) Intercompany dividend payments and net increase (decrease) in intercompany obligations 20 (20 ) (29 ) 29 — Distributions to noncontrolling interest partners — (22 ) — — (22 ) Net cash provided (used) by financing activities 20 (81 ) (4 ) 29 (36 ) Effect of foreign exchange rate changes on cash and cash equivalents — (25 ) — — (25 ) Decrease in cash and cash equivalents (2 ) (28 ) — — (30 ) Cash and cash equivalents, July 1 4 246 — — 250 Cash and cash equivalents, September 30 (Note) $ 2 $ 218 $ — $ — $ 220 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Three Months Ended September 30, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 86 $ 42 $ (13 ) $ — $ 115 Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (31 ) (64 ) — — (95 ) Cash payments for software related intangible assets (2 ) (1 ) — — (3 ) Net cash used by investing activities (33 ) (64 ) — — (97 ) Financing Activities Tax impact from stock-based compensation — — 1 — 1 Retirement of long-term debt — — (6 ) — (6 ) Net decrease in bank overdrafts — (4 ) — — (4 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — 22 (42 ) — (20 ) Net increase in short-term borrowings secured by accounts receivable — — 30 — 30 Intercompany dividend payments and net increase (decrease) in intercompany obligations (53 ) 23 30 — — Net cash provided (used) by financing activities (53 ) 41 13 — 1 Effect of foreign exchange rate changes on cash and cash equivalents — (4 ) — — (4 ) Increase in cash and cash equivalents — 15 — — 15 Cash and cash equivalents, July 1 — 260 — — 260 Cash and cash equivalents, September 30 (Note) $ — $ 275 $ — $ — $ 275 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2015 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 61 $ 202 $ (28 ) $ (47 ) $ 188 Investing Activities Proceeds from sale of assets — 3 — — 3 Cash payments for plant, property, and equipment (93 ) (128 ) — — (221 ) Cash payments for software related intangible assets (7 ) (6 ) — — (13 ) Changes in restricted cash — 1 — — 1 Net cash used by investing activities (100 ) (130 ) — — (230 ) Financing Activities Issuance of common shares — — 5 — 5 Tax impact from stock-based compensation — — 1 — 1 Retirement of long-term debt — (14 ) (11 ) — (25 ) Issuance of long-term debt — 1 — — 1 Debt issuance cost of long-term debt — — (1 ) — (1 ) Purchase of common stock under the share repurchase program — — (158 ) — (158 ) Net decrease in bank overdrafts — (21 ) — — (21 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — 30 193 — 223 Net increase in short-term borrowings secured by accounts receivables — — 30 — 30 Intercompany dividend payments and net increase (decrease) in intercompany obligations 31 (47 ) (31 ) 47 — Distributions to noncontrolling interest partners — (44 ) — — (44 ) Net cash provided (used) by financing activities 31 (95 ) 28 47 11 Effect of foreign exchange rate changes on cash and cash equivalents — (31 ) — — (31 ) Decrease in cash and cash equivalents (8 ) (54 ) — — (62 ) Cash and cash equivalents, January 1 10 272 — — 282 Cash and cash equivalents, September 30 (Note) $ 2 $ 218 $ — $ — $ 220 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2014 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (70 ) $ 212 $ (27 ) $ (26 ) $ 89 Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (78 ) (184 ) — — (262 ) Cash payments for software related intangible assets (8 ) (4 ) — — (12 ) Net cash used by investing activities (86 ) (187 ) — — (273 ) Financing Activities Repurchase of common shares — — (1 ) — (1 ) Tax impact from stock-based compensation — — 18 — 18 Retirement of long-term debt — — (16 ) — (16 ) Issuance of long-term debt — 45 — — 45 Net decrease in bank overdrafts — (5 ) — — (5 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt — 29 118 — 147 Net increase in short-term borrowings secured by accounts receivables — — 20 — 20 Intercompany dividend payments and net increase (decrease) in intercompany obligations 150 (64 ) (112 ) 26 — Capital contribution from noncontrolling interest partners — 5 — — 5 Distributions to noncontrolling interest partners — (23 ) — — (23 ) Net cash provided (used) by financing activities 150 (13 ) 27 26 190 Effect of foreign exchange rate changes on cash and cash equivalents — (6 ) — — (6 ) Increase (decrease) in cash and cash equivalents (6 ) 6 — — — Cash and cash equivalents, January 1 6 269 — — 275 Cash and cash equivalents, September 30 (Note) $ — $ 275 $ — $ — $ 275 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (ASU) No. 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent). ASU No. 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Such investments should be disclosed separate from the fair value hierarchy. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this guidance is not expected to have an impact on the Company's consolidated financial statements but will impact pension asset disclosure. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. We adopted this standard for the first quarter of 2015 and applied retrospectively. Please refer to note 3 in our notes to condensed consolidated financial statements located in Part I Item 1 of this Form 10-Q for further discussion. In May 2014, the FASB issued an amendment on revenue recognition. The amendment in this update creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendment supersedes the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has voted to approve a one-year deferral of the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 for public entities. We will adopt this amendment on January 1, 2018. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying and Estimated Fair Value | The net carrying and estimated fair values of our financial instruments by class at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Net Carrying Amount Fair Value Net Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,247 $ 1,278 $ 1,057 $ 1,106 Instruments with off-balance sheet risk: Foreign exchange forward contracts: Asset derivative contracts — — — — |
Summarization for Foreign Currency Forward Purchase and Sale Contracts | The following table summarizes by major currency the notional amounts for foreign currency forward purchase and sale contracts as of September 30, 2015 (all of which mature in 2015): Notional Amount in Foreign Currency (Millions) Australian dollars —Purchase 1 British pounds —Purchase 6 Canadian dollars —Sell (4 ) European euro —Sell (12 ) South African rand —Purchase 99 Japanese yen —Purchase 456 —Sell (967 ) Polish zloty —Sell (3 ) U.S. dollars —Purchase 24 —Sell (18 ) |
Long-Term Debt and Financing 22
Long-Term Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Financial Ratios under Senior Credit Facility | The financial ratios required under the amended and restated senior credit facility, and the actual ratios we achieved for the three quarters of 2015, are as follows: Quarter Ended September 30, 2015 June 30, 2015 March 31, 2015 Required Actual Required Actual Required Actual Leverage Ratio (maximum) 3.50 1.51 3.50 1.36 3.50 1.41 Interest Coverage Ratio (minimum) 2.75 13.07 2.75 12.43 2.75 11.95 |
Restructuring and Other Charg23
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Roll Forward of Restructuring Reserve | Amounts related to activities that are part of our restructuring reserves are as follows: December 31, 2015 2015 Impact of Exchange Rates September 30, 2015 (Millions) Employee Severance, Termination Benefits and Other Related Costs $40 38 (30 ) (3 ) $45 |
Environmental Matters, Litiga24
Environmental Matters, Litigation and Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Environmental Matters, Litigation and Product Warranties [Abstract] | |
Warranty Accrual Rollforward | Below is a table that shows the activity in the warranty accrual accounts: Nine Months Ended September 30, 2015 2014 (Millions) Beginning Balance January 1, $ 26 $ 24 Accruals related to product warranties 11 18 Reductions for payments made (13 ) (16 ) Ending Balance September 30, $ 24 $ 26 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share of Common Stock | Earnings per share of common stock outstanding were computed as follows: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Millions Except Share and Per Share Amounts) Basic earnings per share — Net income attributable to Tenneco Inc. $ 52 $ 78 $ 179 $ 205 Weighted Average shares of common stock outstanding 59,587,628 60,762,667 60,428,806 60,671,410 Earnings per share of common stock $ 0.89 $ 1.29 $ 2.97 $ 3.39 Diluted earnings per share — Net income attributable to Tenneco Inc. $ 52 $ 78 $ 179 $ 205 Weighted Average shares of common stock outstanding 59,587,628 60,762,667 60,428,806 60,671,410 Effect of dilutive securities: Restricted stock 76,203 122,865 91,615 135,170 Stock options 357,164 828,319 426,351 828,482 Weighted Average shares of common stock outstanding including dilutive securities 60,020,995 61,713,851 60,946,772 61,635,062 Earnings per share of common stock $ 0.88 $ 1.27 $ 2.94 $ 3.33 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions Used for Calculating Fair Values of Stock Option Awards | The fair value of share-based awards is determined at the time the awards are granted which is generally in January of each year, and requires judgment in estimating employee and market behavior. There were no stock options granted in 2015. Nine Months Ended September 30, 2015 2014 Stock Options Granted Weighted average grant date fair value, per share $ — $ 26.46 Weighted average assumptions used: Expected volatility — % 52.8 % Expected lives 5.0 Risk-free interest rates — % 1.7 % Dividend yields — % — % |
Stock Options Status and Activity | Stock Options — The following table reflects the status and activity for all options to purchase common stock for the period indicated: Nine Months Ended September 30, 2015 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options Outstanding, January 1, 2015 1,454,003 $ 31.16 4.4 $ 33 Canceled (20,427 ) 23.75 Exercised (96,997 ) 20.78 3 Outstanding, March 31, 2015 1,336,579 $ 32.03 4.3 $ 31 Forfeited (7,531 ) 47.36 Exercised (141,644 ) 14.68 6 Outstanding, June 30, 2015 1,187,404 $ 34.00 4.2 $ 30 Exercised (749 ) 19.48 Outstanding, September 30, 2015 1,186,655 $ 33.99 3.9 $ 19 |
Nonvested Restricted Shares | Restricted Stock — The following table reflects the status for all nonvested restricted shares for the period indicated: Nine Months Ended September 30, 2015 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2015 286,051 $ 42.35 Granted 350,101 53.40 Vested (150,171 ) 37.86 Nonvested balance at March 31, 2015 485,981 $ 51.70 Granted 17,164 56.06 Vested (13,008 ) 46.37 Forfeited (11,034 ) 48.85 Nonvested balance at June 30, 2015 479,103 $ 52.07 Granted 7,824 57.98 Vested (14,948 ) 49.98 Nonvested balance at September 30, 2015 471,979 $ 52.15 |
Pension Plans, Postretirement27
Pension Plans, Postretirement and Other Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Net periodic pension costs and postretirement benefit costs consist of the following components: Three Months Ended September 30, Pension Postretirement 2015 2014 2015 2014 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ — $ 3 $ 1 $ 2 $ — $ — Interest cost 4 2 5 5 — 1 Expected return on plan assets (5 ) (6 ) (6 ) (7 ) — — Net amortization: Actuarial loss 1 3 1 3 2 1 Prior service cost — 1 — — (1 ) (2 ) Net pension and postretirement costs $ — $ 3 $ 1 $ 3 $ 1 $ — Nine Months Ended September 30, Pension Postretirement 2015 2014 2015 2014 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ 1 $ 7 $ 1 $ 6 $ — $ — Interest cost 13 11 15 14 4 4 Expected return on plan assets (17 ) (16 ) (18 ) (19 ) — — Net amortization: Actuarial loss 5 6 5 7 4 2 Prior service cost (credit) — 1 — 1 (3 ) (5 ) Net pension and postretirement costs $ 2 $ 9 $ 3 $ 9 $ 5 $ 1 |
Amounts Recognized for Pension and Postretirement Benefits in Other Comprehensive Income | Amounts recognized for pension and postretirement benefits in other comprehensive income for the three and nine months periods ended September 30, 2015 and 2014 include the following components: Three Months Ended September 30, 2015 2014 Before-Tax Amount Tax Benefit Net-of-Tax Amount Before- Tax Amount Tax Benefit Net-of-Tax Amount (Millions) Defined benefit pension and postretirement plans: Amortization of prior service cost included in net periodic pension and postretirement cost $ — $ — $ — $ (2 ) $ — $ (2 ) Amortization of actuarial loss included in net periodic pension and postretirement cost 6 (2 ) 4 5 (1 ) 4 Other comprehensive income – pension benefits $ 6 $ (2 ) $ 4 $ 3 $ (1 ) $ 2 Nine Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before- Tax Net-of-Tax (Millions) Defined benefit pension and postretirement plans: Amortization of prior service cost included in net periodic pension and postretirement cost $ (2 ) $ — $ (2 ) $ (4 ) $ — $ (4 ) Amortization of actuarial loss included in net periodic pension and postretirement cost 15 (4 ) 11 14 (2 ) 12 Other comprehensive income – pension benefits $ 13 $ (4 ) $ 9 $ 10 $ (2 ) $ 8 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | We are managed and organized along our two major product lines (clean air a |
Supplemental Guarantor Conden29
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statement of Comprehensive Income (Loss) | STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 936 $ 1,089 $ — $ — $ 2,025 Affiliated companies 102 135 — (237 ) — 1,038 1,224 — (237 ) 2,025 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 866 1,078 — (237 ) 1,707 Engineering, research, and development 18 17 — — 35 Selling, general, and administrative 41 71 1 — 113 Depreciation and amortization of other intangibles 22 31 — — 53 947 1,197 1 (237 ) 1,908 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) 10 8 — (18 ) — 10 7 — (18 ) (1 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 101 34 (1 ) (18 ) 116 Interest expense — External (net of interest capitalized) (1 ) — 17 — 16 Affiliated companies (net of interest income) 19 (19 ) — — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 83 53 (18 ) (18 ) 100 Income tax expense 22 12 — — 34 Equity in net income (loss) from affiliated companies 26 — 70 (96 ) — Net Income (loss) 87 41 52 (114 ) 66 Less: Net income attributable to noncontrolling interests — 14 — — 14 Net income (loss) attributable to Tenneco Inc. $ 87 $ 27 $ 52 $ (114 ) $ 52 Comprehensive income (loss) attributable to Tenneco Inc. $ 87 $ 27 $ 11 $ (114 ) $ 11 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 934 $ 1,147 $ — $ — $ 2,081 Affiliated companies 97 153 — (250 ) — 1,031 1,300 — (250 ) 2,081 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 789 1,196 — (250 ) 1,735 Engineering, research, and development 20 22 — — 42 Selling, general, and administrative 33 74 1 — 108 Depreciation and amortization of other intangibles 22 30 — — 52 864 1,322 1 (250 ) 1,937 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (2 ) 11 — (12 ) (3 ) (2 ) 10 — (12 ) (4 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 165 (12 ) (1 ) (12 ) 140 Interest expense — External (net of interest capitalized) — 1 19 — 20 Affiliated companies (net of interest income) 18 (19 ) 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 147 6 (21 ) (12 ) 120 Income tax expense 34 (3 ) — — 31 Equity in net income (loss) from affiliated companies (2 ) — 99 (97 ) — Net income (loss) 111 9 78 (109 ) 89 Less: Net income attributable to noncontrolling interests — 11 — — 11 Net income (loss) attributable to Tenneco Inc. $ 111 $ (2 ) $ 78 $ (109 ) $ 78 Comprehensive income (loss) attributable to Tenneco Inc. $ 111 $ (2 ) $ 20 $ (109 ) $ 20 |
Balance Sheet | BALANCE SHEET September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 2 $ 218 $ — $ — $ 220 Restricted cash — 2 — — 2 Receivables, net 428 1,328 — (475 ) 1,281 Inventories 350 370 — — 720 Deferred income taxes 48 18 6 — 72 Prepayments and other 87 189 — — 276 Total current assets 915 2,125 6 (475 ) 2,571 Other assets: Investment in affiliated companies 1,155 — 982 (2,137 ) — Notes and advances receivable from affiliates 935 12,688 4,875 (18,498 ) — Long-term receivables, net 11 3 — — 14 Goodwill 22 40 — — 62 Intangibles, net 10 13 — — 23 Deferred income taxes 79 24 54 — 157 Other 36 50 11 — 97 2,248 12,818 5,922 (20,635 ) 353 Plant, property, and equipment, at cost 1,281 2,158 — — 3,439 Less — Accumulated depreciation and amortization (855 ) (1,351 ) — — (2,206 ) 426 807 — — 1,233 Total assets $ 3,589 $ 15,750 $ 5,928 $ (21,110 ) $ 4,157 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 80 $ 15 $ — $ 95 Short-term debt — affiliated 116 213 — (329 ) — Trade payables 531 923 — (90 ) 1,364 Accrued taxes 14 18 — — 32 Other 141 259 15 (56 ) 359 Total current liabilities 802 1,493 30 (475 ) 1,850 Long-term debt — non-affiliated — 30 1,216 — 1,246 Long-term debt — affiliated 1,662 12,601 4,235 (18,498 ) — Deferred income taxes — 16 — — 16 Postretirement benefits and other liabilities 419 107 — — 526 Commitments and contingencies Total liabilities 2,883 14,247 5,481 (18,973 ) 3,638 Redeemable noncontrolling interests — 36 — — 36 Tenneco Inc. shareholders’ equity 706 1,431 447 (2,137 ) 447 Noncontrolling interests — 36 — — 36 Total equity 706 1,467 447 (2,137 ) 483 Total liabilities, redeemable noncontrolling interests and equity $ 3,589 $ 15,750 $ 5,928 $ (21,110 ) $ 4,157 BALANCE SHEET December 31, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 10 $ 272 $ — $ — $ 282 Restricted cash — 3 — — 3 Receivables, net 408 1,309 — (629 ) 1,088 Inventories 312 376 — — 688 Deferred income taxes 49 25 7 — 81 Prepayments and other 96 188 — — 284 Total current assets 875 2,173 7 (629 ) 2,426 Other assets: Investment in affiliated companies 1,064 — 764 (1,828 ) — Notes and advances receivable from affiliates 944 10,589 4,844 (16,377 ) — Long-term receivables, net 12 — — — 12 Goodwill 22 43 — — 65 Intangibles, net 10 16 — — 26 Deferred income taxes 76 14 53 — 143 Other 40 53 13 — 106 2,168 10,715 5,674 (18,205 ) 352 Plant, property, and equipment, at cost 1,236 2,254 — — 3,490 Less — Accumulated depreciation and amortization (845 ) (1,427 ) — — (2,272 ) 391 827 — — 1,218 Total assets $ 3,434 $ 13,715 $ 5,681 $ (18,834 ) $ 3,996 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 54 $ 6 $ — $ 60 Short-term debt — affiliated 243 220 9 (472 ) — Trade payables 478 1,000 — (106 ) 1,372 Accrued taxes (15 ) 31 24 — 40 Other 134 241 3 (51 ) 327 Total current liabilities 840 1,546 42 (629 ) 1,799 Long-term debt — non-affiliated — 44 1,011 — 1,055 Long-term debt — affiliated 1,730 10,516 4,131 (16,377 ) — Deferred income taxes — 18 — — 18 Postretirement benefits and other liabilities 418 129 — 4 551 Commitments and contingencies Total liabilities 2,988 12,253 5,184 (17,002 ) 3,423 Redeemable noncontrolling interests — 35 — — 35 Tenneco Inc. shareholders’ equity 446 1,386 497 (1,832 ) 497 Noncontrolling interests — 41 — — 41 Total equity 446 1,427 497 (1,832 ) 538 Total liabilities, redeemable noncontrolling interests and equity $ 3,434 $ 13,715 $ 5,681 $ (18,834 ) $ 3,996 |
Statement of Cash Flows | STATEMENT OF CASH FLOWS Three Months Ended September 30, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 17 $ 114 $ 4 $ (29 ) $ 106 Investing Activities Proceeds from sale of assets (1 ) 2 — — 1 Cash payments for plant, property, and equipment (36 ) (35 ) — — (71 ) Cash payments for software related intangible assets (2 ) (3 ) — — (5 ) Net cash used by investing activities (39 ) (36 ) — — (75 ) Financing Activities Tax impact from stock-based compensation — — (5 ) — (5 ) Retirement of long-term debt — (1 ) (3 ) — (4 ) Issuance of long-term debt — 1 — — 1 Purchase of common stock under the share repurchase program — — (114 ) — (114 ) Net decrease in bank overdrafts — (10 ) — — (10 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — (29 ) 167 — 138 Net decrease in short-term borrowings secured by accounts receivables — — (20 ) — (20 ) Intercompany dividend payments and net increase (decrease) in intercompany obligations 20 (20 ) (29 ) 29 — Distributions to noncontrolling interest partners — (22 ) — — (22 ) Net cash provided (used) by financing activities 20 (81 ) (4 ) 29 (36 ) Effect of foreign exchange rate changes on cash and cash equivalents — (25 ) — — (25 ) Decrease in cash and cash equivalents (2 ) (28 ) — — (30 ) Cash and cash equivalents, July 1 4 246 — — 250 Cash and cash equivalents, September 30 (Note) $ 2 $ 218 $ — $ — $ 220 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Three Months Ended September 30, 2014 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 86 $ 42 $ (13 ) $ — $ 115 Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (31 ) (64 ) — — (95 ) Cash payments for software related intangible assets (2 ) (1 ) — — (3 ) Net cash used by investing activities (33 ) (64 ) — — (97 ) Financing Activities Tax impact from stock-based compensation — — 1 — 1 Retirement of long-term debt — — (6 ) — (6 ) Net decrease in bank overdrafts — (4 ) — — (4 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — 22 (42 ) — (20 ) Net increase in short-term borrowings secured by accounts receivable — — 30 — 30 Intercompany dividend payments and net increase (decrease) in intercompany obligations (53 ) 23 30 — — Net cash provided (used) by financing activities (53 ) 41 13 — 1 Effect of foreign exchange rate changes on cash and cash equivalents — (4 ) — — (4 ) Increase in cash and cash equivalents — 15 — — 15 Cash and cash equivalents, July 1 — 260 — — 260 Cash and cash equivalents, September 30 (Note) $ — $ 275 $ — $ — $ 275 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2015 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 61 $ 202 $ (28 ) $ (47 ) $ 188 Investing Activities Proceeds from sale of assets — 3 — — 3 Cash payments for plant, property, and equipment (93 ) (128 ) — — (221 ) Cash payments for software related intangible assets (7 ) (6 ) — — (13 ) Changes in restricted cash — 1 — — 1 Net cash used by investing activities (100 ) (130 ) — — (230 ) Financing Activities Issuance of common shares — — 5 — 5 Tax impact from stock-based compensation — — 1 — 1 Retirement of long-term debt — (14 ) (11 ) — (25 ) Issuance of long-term debt — 1 — — 1 Debt issuance cost of long-term debt — — (1 ) — (1 ) Purchase of common stock under the share repurchase program — — (158 ) — (158 ) Net decrease in bank overdrafts — (21 ) — — (21 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables — 30 193 — 223 Net increase in short-term borrowings secured by accounts receivables — — 30 — 30 Intercompany dividend payments and net increase (decrease) in intercompany obligations 31 (47 ) (31 ) 47 — Distributions to noncontrolling interest partners — (44 ) — — (44 ) Net cash provided (used) by financing activities 31 (95 ) 28 47 11 Effect of foreign exchange rate changes on cash and cash equivalents — (31 ) — — (31 ) Decrease in cash and cash equivalents (8 ) (54 ) — — (62 ) Cash and cash equivalents, January 1 10 272 — — 282 Cash and cash equivalents, September 30 (Note) $ 2 $ 218 $ — $ — $ 220 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2014 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (70 ) $ 212 $ (27 ) $ (26 ) $ 89 Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (78 ) (184 ) — — (262 ) Cash payments for software related intangible assets (8 ) (4 ) — — (12 ) Net cash used by investing activities (86 ) (187 ) — — (273 ) Financing Activities Repurchase of common shares — — (1 ) — (1 ) Tax impact from stock-based compensation — — 18 — 18 Retirement of long-term debt — — (16 ) — (16 ) Issuance of long-term debt — 45 — — 45 Net decrease in bank overdrafts — (5 ) — — (5 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt — 29 118 — 147 Net increase in short-term borrowings secured by accounts receivables — — 20 — 20 Intercompany dividend payments and net increase (decrease) in intercompany obligations 150 (64 ) (112 ) 26 — Capital contribution from noncontrolling interest partners — 5 — — 5 Distributions to noncontrolling interest partners — (23 ) — — (23 ) Net cash provided (used) by financing activities 150 (13 ) 27 26 190 Effect of foreign exchange rate changes on cash and cash equivalents — (6 ) — — (6 ) Increase (decrease) in cash and cash equivalents (6 ) 6 — — — Cash and cash equivalents, January 1 6 269 — — 275 Cash and cash equivalents, September 30 (Note) $ — $ 275 $ — $ — $ 275 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
Consolidation and Presentation
Consolidation and Presentation - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
In-process tools and dies | $ 138 | $ 98 |
Accrued compensation | 106 | 91 |
Bank Overdrafts | $ 18 | $ 39 |
Minimum | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Range of percentages of investments, equity method investments | 20.00% | |
Maximum | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Range of percentages of investments, equity method investments | 50.00% |
Financial Instruments - Carryin
Financial Instruments - Carrying and Estimated Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Net Carrying Amount | ||
Carrying and estimated fair value | ||
Long-term debt (including current maturities) | $ 1,247 | $ 1,057 |
Instruments with off-balance sheet risk: | ||
Asset derivative contracts | 0 | 0 |
Fair Value | ||
Carrying and estimated fair value | ||
Long-term debt (including current maturities) | 1,278 | 1,106 |
Instruments with off-balance sheet risk: | ||
Foreign exchange forward contracts | $ 0 | $ 0 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | $ 744 | $ 759 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | 503 | 301 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | $ 31 | $ 46 |
Financial Instruments - Foreign
Financial Instruments - Foreign Exchange Forward Contracts (Details) - Foreign Exchange Forward Contracts - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | ||
Term Of Foreign Currency Forward Purchase And Sales Contacts (less than one year) | 1 year | |
Net liability position | $ 1 | $ 1 |
Financial Instruments - Summari
Financial Instruments - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Sep. 30, 2015 - Foreign Exchange Forward Contracts € in Millions, ¥ in Millions, £ in Millions, ZAR in Millions, PLN in Millions, CAD in Millions, AUD in Millions, $ in Millions | JPY (¥) | AUD | PLN | GBP (£) | CAD | USD ($) | ZAR | EUR (€) |
Australia, Dollars | Long | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | AUD | AUD 1 | |||||||
British, Pounds | Long | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | £ | £ 6 | |||||||
Canada, Dollars | Short | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | CAD | CAD (4) | |||||||
European, Euro | Short | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | € | € (12) | |||||||
South Africa, Rand | Long | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | ZAR | ZAR 99 | |||||||
Japan, Yen | Long | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | ¥ 456 | |||||||
Japan, Yen | Short | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | ¥ (967) | |||||||
Polish, Zloty | Short | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | PLN | PLN (3) | |||||||
U.S., Dollars | Long | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | $ | $ 24 | |||||||
U.S., Dollars | Short | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount in Foreign Currency | $ | $ (18) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | Sep. 30, 2015USD ($)group_retirement_planperformance_agreement | Dec. 31, 2014USD ($) |
Financial Instruments [Line Items] | ||
Maximum percentage of stock of certain first tier foreign subsidiaries pledged to secure senior credit facility | 66.00% | |
Line of credit facility letters of credit outstanding | $ 41 | |
Financial Instruments not redeemed and used for vendor payment | 20 | $ 24 |
Financial Instruments received from one customer and not redeemed | 15 | 17 |
Financial Instruments received and classified as other current assets | 15 | 17 |
Liquidity from extended payment term | $ 20 | |
TMEL and Walker Plans | ||
Financial Instruments [Line Items] | ||
Number of performance guarantee agreements | performance_agreement | 2 | |
Number of group benefit plans under the agreement | group_retirement_plan | 2 | |
Maximum amount payable to third parties for pension performance guarantees | $ 9 | |
Percentage of liability considered to determine maximum amount payable for pension performance guarantees | 105.00% | |
Percentage of the pension obligation recognized for participating employers | 100.00% | |
Pension obligation of participating employers recognized on the balance sheet | $ 14 | $ 17 |
TMEL and Futaba | ||
Financial Instruments [Line Items] | ||
Maximum amount reimbursable under indemnity agreement | 9 | |
Subsidiaries | CHINA | ||
Financial Instruments [Line Items] | ||
Restricted cash | $ 2 |
Long-Term Debt and Financing 36
Long-Term Debt and Financing Arrangements - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 15 Months Ended | 18 Months Ended | ||
Dec. 31, 2019USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Maximum percentage of stock of certain first-tier foreign subsidiaries pledged to secure senior credit facility | 66.00% | |||||
Interest coverage ratio (minimum) effective from March 31, 2014 through March 22, 2017 | 2.75 | |||||
Leverage Ratio Required (Maximum) for future quarters | 3.50 | |||||
Tranche Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Expense | $ 2,000 | |||||
Principal payments excluded from current liabilities | 15,000 | |||||
Net carrying amount of debt | 287,000 | |||||
Outstanding debt | $ 289,000 | |||||
Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 5.375% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,200,000 | |||||
6.875% senior notes due December 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Stated percentage | 6.875% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unused Borrowing Capacity | $ 979,000 | |||||
Outstanding debt | 214,000 | |||||
Revolving Credit Facility | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | 7,000 | |||||
Revolving Credit Facility | Tranche Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Expense | 2,000 | |||||
Net carrying amount of debt | 287,000 | |||||
Outstanding debt | 289,000 | |||||
Revolving Credit Facility | Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Expense | 4,000 | |||||
Net carrying amount of debt | 221,000 | |||||
Outstanding debt | 225,000 | |||||
Revolving Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,200,000 | |||||
Revolving Credit Facility | 6.875% senior notes due December 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Expense | 6,000 | |||||
Net carrying amount of debt | 494,000 | |||||
Outstanding debt | 500,000 | |||||
Revolving Credit Facility | Other Debt | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured debt | 125,000 | |||||
Adjustments for New Accounting Principle, Early Adoption | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Debt Issuance Expense | $ 12,000 | $ 14,000 | ||||
Future payment | Tranche Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of term loan | $ 195,000 | $ 5,625 | $ 3,750 | $ 7,500 |
Long-Term Debt and Financing 37
Long-Term Debt and Financing Arrangements - Financial Ratios under Senior Credit Facility (Details) | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Required [Member] | |||
Financial Ratios Under Senior Credit Facility [Line Items] | |||
Leverage Ratio (maximum) | 3.5 | 3.5 | 3.5 |
Interest Coverage Ratio (minimum) | 2.75 | 2.75 | 2.75 |
Actual [Member] | |||
Financial Ratios Under Senior Credit Facility [Line Items] | |||
Leverage Ratio (maximum) | 1.51 | 1.36 | 1.41 |
Interest Coverage Ratio (minimum) | 13.07 | 12.43 | 11.95 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 34 | $ 31 | $ 122 | $ 117 |
Net tax benefit for prior year tax adjustments | 12 | $ 10 | 9 | $ 9 |
Reasonably possible change in unrecognized tax benefits | $ 6 | $ 6 |
Accounts Receivable Securitiz39
Accounts Receivable Securitization - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)bank | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)bank | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Transfers of Servicing of Financial Assets [Line Items] | |||||
Number of commercial banks with accounts receivable securitization programs | bank | 3 | 3 | |||
Term of commitments (in years) | 1 year | ||||
Term of commitments, cancellation period (in years) | 90 days | ||||
North America | |||||
Transfers of Servicing of Financial Assets [Line Items] | |||||
North American program maximum facility size | $ 130,000,000 | $ 130,000,000 | |||
Additional Financing from second priority facility | 50,000,000 | 50,000,000 | |||
Outstanding third party investments in securitized accounts receivable bank program | 30,000,000 | 30,000,000 | $ 0 | ||
Securitization interest expense | 1,000,000 | $ 1,000,000 | 2,000,000 | $ 2,000,000 | |
Europe | |||||
Transfers of Servicing of Financial Assets [Line Items] | |||||
Outstanding third party investments in securitized accounts receivable bank program | 192,000,000 | 192,000,000 | $ 153,000,000 | ||
Loss on sale of trade accounts receivable | $ 1,000,000 | $ 1,000,000 | $ 3,000,000 | $ 3,000,000 | |
Financing cost related to sale of securitized receivables percentage | 2.00% | 2.00% |
Restructuring and Other Charg40
Restructuring and Other Charges - Additional Information (Details) $ in Millions | Jul. 22, 2015peoplejob | Dec. 08, 2014USD ($) | Jan. 31, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | $ 35 | $ 8 | $ 47 | $ 28 | $ 49 | |||
Non- cash charges | 9 | 2 | 9 | 3 | 5 | |||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios | $ 150 | 38 | ||||||
Other Expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 3 | 4 | 4 | |||||
Reduced Depreciation | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 4 | 4 | 1 | |||||
Cost of Sales | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 27 | $ 5 | 37 | 20 | 28 | |||
Selling, General and Administrative Expenses | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 3 | 5 | 3 | 9 | ||||
Engineering Expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 1 | 1 | $ 1 | $ 7 | ||||
Europe | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | 5 | $ 12 | ||||||
Amount intended to reduce structural costs | $ 60 | |||||||
Discontinuation of Marzocchi Motor Bike Fork Suspension Business, Mountain Bike Business, and Liquidation of Marzocchi Operations | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost | $ 25 | |||||||
Number of jobs eliminated | job | 138 | |||||||
Discontinuation of Marzocchi Motor Bike Fork Suspension Business, Mountain Bike Business, and Liquidation of Marzocchi Operations | Bologna, Italy | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of jobs eliminated | people | 127 | |||||||
Discontinuation of Marzocchi Motor Bike Fork Suspension Business, Mountain Bike Business, and Liquidation of Marzocchi Operations | North America and Taiwan | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of jobs eliminated | people | 11 |
Restructuring and Other Charg41
Restructuring and Other Charges - Roll Forward of Restructuring Reserve (Details) - Severance $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | $ 40 |
Expenses | 38 |
Cash Payments | (30) |
Impact of exchange rates | (3) |
Restructuring Reserve | $ 45 |
Environmental Matters, Litiga42
Environmental Matters, Litigation and Product Warranties - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)LegalMatterdefendentStatefederal_superfund_site | |
Environmental Matters, Litigation and Product Warranties [Abstract] | |
Number of Federal Super Fund sites | federal_superfund_site | 1 |
Environmental remediation accrual, discounted basis | $ 15 |
Portion of environmental remediation costs recorded in other current liabilities | 3 |
Portion of environmental remediation costs recorded in deferred credits and other liabilities | $ 12 |
Weighted average discount rate | 1.90% |
Environmental remediation accrual, undiscounted basis | $ 18 |
Environmental Remediation, 2015 | 1 |
Environmental Remediation, 2016 | 2 |
Environmental Remediation, 2017 | 1 |
Environmental Remediation, 2018 | 1 |
Environmental Remediation, 2019 | 1 |
Environmental Remediation, Thereafter | $ 12 |
Number of states for which we are subject to an audit with respect to payment of unclaimed property | State | 11 |
Number of years subject to audit with respect to payment of unclaimed property | 30 years |
Number of complaints filed alleging exposure to asbestos from our product categories | LegalMatter | 20,000 |
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories (less than 500 cases) | LegalMatter | 500 |
Number of defendants in many asbestos related cases | defendent | 100 |
Environmental Matters, Litiga43
Environmental Matters, Litigation and Product Warranties - Warranty Accrual Rollforward (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning Balance January 1, | $ 26 | $ 24 |
Accruals related to product warranties | 11 | 18 |
Reductions for payments made | (13) | (16) |
Ending Balance September 30, | $ 24 | $ 26 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic earnings per share — | ||||
Net income attributable to Tenneco Inc. | $ 52 | $ 78 | $ 179 | $ 205 |
Weighted Average shares of common stock outstanding | 59,587,628 | 60,762,667 | 60,428,806 | 60,671,410 |
Earnings per share of common stock (in dollars per share) | $ 0.89 | $ 1.29 | $ 2.97 | $ 3.39 |
Diluted earnings per share — | ||||
Net income attributable to Tenneco Inc. | $ 52 | $ 78 | $ 179 | $ 205 |
Weighted Average shares of common stock outstanding | 59,587,628 | 60,762,667 | 60,428,806 | 60,671,410 |
Effect of dilutive securities: | ||||
Restricted stock | 76,203 | 122,865 | 91,615 | 135,170 |
Stock options | 357,164 | 828,319 | 426,351 | 828,482 |
Weighted Average shares of common stock outstanding including dilutive securities | 60,020,995 | 61,713,851 | 60,946,772 | 61,635,062 |
Earnings per share of common stock (in dollars per share) | $ 0.88 | $ 1.27 | $ 2.94 | $ 3.33 |
Earnings Per Share - Additiona
Earnings Per Share - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options | 175,343 | 834 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Share-based Compensation, Effect on Earnings Per Share, Basic | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.05 | |||
Share-based compensation, effect on earnings per share, diluted | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.05 | |||
Tax benefit from options exercised | $ 6,000,000 | $ 4,000,000 | |||||
Weighted average grant-date fair value of options granted | $ 26.48 | ||||||
Total fair value of shares vested | $ 4,000,000 | 6,000,000 | |||||
Treasury stock repurchased | 6,349,455 | 6,349,455 | 3,244,692 | ||||
Nonqualified Employee Stock Options | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Compensation expense | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | 3,000,000 | |||
Stock Option | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Unrecognized compensation costs | 3,000,000 | $ 3,000,000 | |||||
Unrecognized compensation costs, not yet recognized | 5 months | ||||||
Cash received from stock option exercises | $ 4,000,000 | 1,000,000 | |||||
Restricted Stock, Restricted Stock Units, Long Term Performance Units, SARs | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Compensation expense | 1,000,000 | $ 1,000,000 | 10,000,000 | 10,000,000 | |||
Unrecognized compensation costs | 18,000,000 | $ 18,000,000 | |||||
Unrecognized compensation costs, not yet recognized | 1 year 11 months | ||||||
Restricted Stock | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Unrecognized compensation costs | $ 15,000,000 | $ 15,000,000 | |||||
Unrecognized compensation costs, not yet recognized | 2 years 6 months | ||||||
Total fair value of restricted shares vested | $ 6,000,000 | $ 8,000,000 | |||||
Common Stock | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Amount authorized to repurchase | $ 350,000,000 | ||||||
Period of time to repurchase common stock | 3 years | ||||||
Number of shares repurchased | 3,104,763 | 0 | |||||
Stock Repurchased During Period, Value | $ 158,000,000 | $ 0 | |||||
Subsequent Event | Common Stock | |||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Amount authorized to repurchase | $ 200,000,000 |
Common Stock - Assumptions Used
Common Stock - Assumptions Used for Calculating Fair Values of Stock Option Awards (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options Granted | ||
Weighted average grant date fair value, per share (in dollars per share) | $ 0 | $ 26.46 |
Weighted average assumptions used: | ||
Expected volatility | 0.00% | 52.80% |
Expected lives (in years) | 5 years | |
Risk-free interest rates | 0.00% | 1.70% |
Dividend yields | 0.00% | 0.00% |
Common Stock - Stock Options St
Common Stock - Stock Options Status and Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Tax benefit from options exercised | $ 6 | $ 4 | |||||
Total fair value of shares vested | $ 4 | $ 6 | |||||
Shares Under Option | |||||||
Outstanding, Beginning Balance (in shares) | 1,187,404 | 1,336,579 | 1,454,003 | 1,454,003 | 1,454,003 | ||
Canceled (in shares) | (20,427) | ||||||
Forfeited (in shares) | (7,531) | ||||||
Exercised (in shares) | (749) | (141,644) | (96,997) | ||||
Outstanding, Ending Balance (in shares) | 1,186,655 | 1,187,404 | 1,336,579 | 1,187,404 | 1,186,655 | 1,454,003 | |
Weighted Avg. Exercise Prices | |||||||
Outstanding, Beginning Balance (in dollars per share) | $ 34 | $ 32.03 | $ 31.16 | $ 31.16 | $ 31.16 | ||
Canceled (in dollars per share) | 23.75 | ||||||
Forfeited (in dollars per share) | 47.36 | ||||||
Exercised (in dollars per share) | 19.48 | 14.68 | 20.78 | ||||
Outstanding, Ending Balance (in dollars per share) | $ 33.99 | $ 34 | $ 32.03 | $ 34 | $ 33.99 | $ 31.16 | |
Weighted Avg. Remaining Life in Years | 4 years 3 months 17 days | 4 years 2 months 12 days | 3 years 11 months | 4 years 4 months 24 days | |||
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 30 | $ 31 | $ 33 | $ 33 | $ 33 | ||
Aggregate Intrinsic Value, Exercised | 3 | 6 | |||||
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 19 | $ 30 | $ 31 | $ 30 | $ 19 | $ 33 |
Common Stock - Nonvested Restri
Common Stock - Nonvested Restricted Shares (Details) - Restricted Stock - $ / shares | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Nonvested Restricted Shares | |||
Nonvested, Beginning Balance (in shares) | 479,103 | 485,981 | 286,051 |
Granted (in shares) | 7,824 | 17,164 | 350,101 |
Vested (in shares) | (14,948) | (13,008) | (150,171) |
Forfeited (in shares) | (11,034) | ||
Nonvested, Ending Balance (in shares) | 471,979 | 479,103 | 485,981 |
Weighted Avg. Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 52.07 | $ 51.70 | $ 42.35 |
Granted (in dollars per share) | 57.98 | 56.06 | 53.40 |
Vested (in dollars per share) | 49.98 | 46.37 | 37.86 |
Forfeited (in dollars per share) | 48.85 | ||
Nonvested, Ending Balance (in dollars per share) | $ 52.15 | $ 52.07 | $ 51.70 |
Pension Plans, Postretirement50
Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
US Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost — benefits earned during the period | $ 0 | $ 1 | $ 1 | $ 1 |
Interest cost | 4 | 5 | 13 | 15 |
Expected return on plan assets | (5) | (6) | (17) | (18) |
Net amortization: | ||||
Actuarial loss | 1 | 1 | 5 | 5 |
Prior service cost | 0 | 0 | 0 | 0 |
Net pension and postretirement costs | 0 | 1 | 2 | 3 |
Foreign Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost — benefits earned during the period | 3 | 2 | 7 | 6 |
Interest cost | 2 | 5 | 11 | 14 |
Expected return on plan assets | (6) | (7) | (16) | (19) |
Net amortization: | ||||
Actuarial loss | 3 | 3 | 6 | 7 |
Prior service cost | 1 | 0 | 1 | 1 |
Net pension and postretirement costs | 3 | 3 | 9 | 9 |
US Postretirement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost — benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost | 0 | 1 | 4 | 4 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net amortization: | ||||
Actuarial loss | 2 | 1 | 4 | 2 |
Prior service cost | (1) | (2) | (3) | (5) |
Net pension and postretirement costs | $ 1 | $ 0 | $ 5 | $ 1 |
Pension Plans, Postretirement51
Pension Plans, Postretirement and Other Employee Benefits - Pension Plans, Postretirement and Other Employee Benefits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
US Pension | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Employer contributions | $ 1 | |
Foreign Pension | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Employer contributions | 11 | |
Pension Plan | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Employer estimated contributions | 14 | |
US Postretirement | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Employer contributions | $ 7 | |
Employer estimated contributions | $ 2 |
Pension Plans, Postretirement52
Pension Plans, Postretirement and Other Employee Benefits - Amounts Recognized for Pension and Postretirement Benefits in Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Before-Tax Amount | ||||
Amortization of prior service cost included in net periodic pension and postretirement cost | $ 0 | $ (2) | $ (2) | $ (4) |
Amortization of actuarial loss included in net periodic pension and postretirement cost | 6 | 5 | 15 | 14 |
Other comprehensive income – pension benefits | 6 | 3 | 13 | 10 |
Tax Benefit | ||||
Amortization of prior service cost included in net periodic pension and postretirement cost | 0 | 0 | 0 | 0 |
Amortization of actuarial loss included in net periodic pension and postretirement cost | (2) | (1) | (4) | (2) |
Other comprehensive income – pension benefits | (2) | (1) | (4) | (2) |
Net-of-Tax Amount | ||||
Amortization of prior service cost included in net periodic pension and postretirement cost | 0 | (2) | (2) | (4) |
Amortization of actuarial loss included in net periodic pension and postretirement cost | 4 | 4 | 11 | 12 |
Other comprehensive income – pension benefits | $ 4 | $ 2 | $ 9 | $ 8 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015product_segmentgeographic_segmentSegmentoperating_segment | |
Segment Reporting [Abstract] | |
Number of product segments | product_segment | 2 |
Number of geographic areas | geographic_segment | 3 |
Number of operating segments | operating_segment | 6 |
Number of reportable segments | 6 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting [Line Items] | |||||
Revenues from external customers | $ 2,025 | $ 2,081 | $ 6,178 | $ 6,416 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 116 | 140 | 391 | 409 | |
Total assets | 4,157 | 4,221 | 4,157 | 4,221 | $ 3,996 |
Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Reclass and Elims | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 0 | 0 | 0 | 0 | |
Total assets | 33 | 27 | 33 | 27 | |
Reclass and Elims | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | (53) | (58) | (157) | (176) | |
North America | |||||
Segment Reporting [Line Items] | |||||
Total assets | 713 | 713 | |||
Europe South America And India | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 252 | ||||
Total assets | 542 | 542 | |||
Clean Air Division | North America | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 720 | 700 | 2,150 | 2,153 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 58 | 56 | 179 | 186 | |
Total assets | 1,292 | 1,228 | 1,292 | 1,228 | |
Clean Air Division | North America | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 4 | 4 | 11 | 18 | |
Clean Air Division | Europe South America And India | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 453 | 484 | 1,381 | 1,513 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 14 | 14 | 36 | 41 | |
Total assets | 775 | 895 | 775 | 895 | |
Clean Air Division | Europe South America And India | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 27 | 30 | 79 | 88 | |
Clean Air Division | Asia Pacific | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 235 | 247 | 743 | 750 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 31 | 27 | 86 | 70 | |
Total assets | 532 | 576 | 532 | 576 | |
Clean Air Division | Asia Pacific | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Ride Performance Division | North America | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 330 | 342 | 1,021 | 1,041 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 39 | 38 | 125 | 116 | |
Total assets | 768 | 713 | 768 | 713 | |
Ride Performance Division | North America | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 3 | 3 | 8 | 8 | |
Ride Performance Division | Europe South America And India | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 236 | 718 | 795 | ||
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | (21) | 9 | (1) | 39 | |
Total assets | 557 | 542 | 557 | 542 | |
Ride Performance Division | Europe South America And India | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 7 | 9 | 22 | 31 | |
Ride Performance Division | Asia Pacific | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 51 | 56 | 165 | 164 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 9 | 10 | 27 | 25 | |
Total assets | 200 | 240 | 200 | 240 | |
Ride Performance Division | Asia Pacific | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 12 | 12 | 37 | 31 | |
Other | Other Countries | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | (14) | (14) | (61) | (68) | |
Total assets | 0 | 0 | 0 | 0 | |
Other | Other Countries | Intersegment Revenues | |||||
Segment Reporting [Line Items] | |||||
Revenues from external customers | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Conden55
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Ownership percentage of existing and future material domestic owned subsidiaries | 100.00% |
Supplemental Guarantor Conden56
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales and operating revenues — | ||||
External | $ 2,025 | $ 2,081 | $ 6,178 | $ 6,416 |
Affiliated companies | 0 | 0 | 0 | 0 |
Net sales and operating revenues | 2,025 | 2,081 | 6,178 | 6,416 |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,707 | 1,735 | 5,157 | 5,340 |
Engineering, research, and development | 35 | 42 | 114 | 126 |
Selling, general, and administrative | 113 | 108 | 359 | 379 |
Depreciation and amortization of other intangibles | 53 | 52 | 154 | 155 |
Costs and Expenses | 1,908 | 1,937 | 5,784 | 6,000 |
Other income (expense) | ||||
Loss on sale of receivables | (1) | (1) | (3) | (3) |
Other income (expense) | 0 | (3) | 0 | (4) |
Total other income (expense) | (1) | (4) | (3) | (7) |
Earnings before interest expense, income taxes, and noncontrolling interests | 116 | 140 | 391 | 409 |
Interest expense — | ||||
External (net of interest capitalized) | 16 | 20 | 49 | 58 |
Affiliated Income Expenses Net Of Interest Income | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 100 | 120 | 342 | 351 |
Income tax expense | 34 | 31 | 122 | 117 |
Equity in net income (loss) from affiliated companies | 0 | 0 | 0 | 0 |
Net Income (loss) | 66 | 89 | 220 | 234 |
Less: Net income attributable to noncontrolling interests | 14 | 11 | 41 | 29 |
Net income attributable to Tenneco Inc. | 52 | 78 | 179 | 205 |
Comprehensive income (loss) attributable to Tenneco Inc. | 11 | 20 | 93 | 153 |
Guarantor Subsidiaries | ||||
Net sales and operating revenues — | ||||
External | 936 | 934 | 2,817 | 2,861 |
Affiliated companies | 102 | 97 | 313 | 303 |
Net sales and operating revenues | 1,038 | 1,031 | 3,130 | 3,164 |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 866 | 789 | 2,609 | 2,566 |
Engineering, research, and development | 18 | 20 | 59 | 60 |
Selling, general, and administrative | 41 | 33 | 137 | 139 |
Depreciation and amortization of other intangibles | 22 | 22 | 66 | 64 |
Costs and Expenses | 947 | 864 | 2,871 | 2,829 |
Other income (expense) | ||||
Loss on sale of receivables | 0 | 0 | (1) | 0 |
Other income (expense) | 10 | (2) | 37 | 23 |
Total other income (expense) | 10 | (2) | 36 | 23 |
Earnings before interest expense, income taxes, and noncontrolling interests | 101 | 165 | 295 | 358 |
Interest expense — | ||||
External (net of interest capitalized) | (1) | 0 | (2) | (1) |
Affiliated Income Expenses Net Of Interest Income | 19 | 18 | 56 | 55 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 83 | 147 | 241 | 304 |
Income tax expense | 22 | 34 | 83 | 70 |
Equity in net income (loss) from affiliated companies | 26 | (2) | 115 | 66 |
Net Income (loss) | 87 | 111 | 273 | 300 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Tenneco Inc. | 87 | 111 | 273 | 300 |
Comprehensive income (loss) attributable to Tenneco Inc. | 87 | 111 | 273 | 300 |
Non-Guarantor Subsidiaries | ||||
Net sales and operating revenues — | ||||
External | 1,089 | 1,147 | 3,361 | 3,555 |
Affiliated companies | 135 | 153 | 423 | 458 |
Net sales and operating revenues | 1,224 | 1,300 | 3,784 | 4,013 |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,078 | 1,196 | 3,284 | 3,535 |
Engineering, research, and development | 17 | 22 | 55 | 66 |
Selling, general, and administrative | 71 | 74 | 219 | 235 |
Depreciation and amortization of other intangibles | 31 | 30 | 88 | 91 |
Costs and Expenses | 1,197 | 1,322 | 3,646 | 3,927 |
Other income (expense) | ||||
Loss on sale of receivables | (1) | (1) | (2) | (3) |
Other income (expense) | 8 | 11 | 11 | 11 |
Total other income (expense) | 7 | 10 | 9 | 8 |
Earnings before interest expense, income taxes, and noncontrolling interests | 34 | (12) | 147 | 94 |
Interest expense — | ||||
External (net of interest capitalized) | 0 | 1 | 2 | 2 |
Affiliated Income Expenses Net Of Interest Income | (19) | (19) | (57) | (56) |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 53 | 6 | 202 | 148 |
Income tax expense | 12 | (3) | 39 | 47 |
Equity in net income (loss) from affiliated companies | 0 | 0 | 0 | 0 |
Net Income (loss) | 41 | 9 | 163 | 101 |
Less: Net income attributable to noncontrolling interests | 14 | 11 | 41 | 29 |
Net income attributable to Tenneco Inc. | 27 | (2) | 122 | 72 |
Comprehensive income (loss) attributable to Tenneco Inc. | 27 | (2) | 122 | 72 |
Tenneco Inc | ||||
Net sales and operating revenues — | ||||
External | 0 | 0 | 0 | 0 |
Affiliated companies | 0 | 0 | 0 | |
Net sales and operating revenues | 0 | 0 | 0 | 0 |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | 0 | 0 | 0 | 0 |
Engineering, research, and development | 0 | 0 | 0 | 0 |
Selling, general, and administrative | 1 | 1 | 3 | 5 |
Depreciation and amortization of other intangibles | 0 | 0 | 0 | 0 |
Costs and Expenses | 1 | 1 | 3 | 5 |
Other income (expense) | ||||
Loss on sale of receivables | 0 | 0 | 0 | 0 |
Other income (expense) | 0 | 0 | 0 | 0 |
Total other income (expense) | 0 | 0 | 0 | 0 |
Earnings before interest expense, income taxes, and noncontrolling interests | (1) | (1) | (3) | (5) |
Interest expense — | ||||
External (net of interest capitalized) | 17 | 19 | 49 | 57 |
Affiliated Income Expenses Net Of Interest Income | 0 | 1 | 1 | 1 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | (18) | (21) | (53) | (63) |
Income tax expense | 0 | 0 | 0 | 0 |
Equity in net income (loss) from affiliated companies | 70 | 99 | 232 | 268 |
Net Income (loss) | 52 | 78 | 179 | 205 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Tenneco Inc. | 52 | 78 | 179 | 205 |
Comprehensive income (loss) attributable to Tenneco Inc. | 11 | 20 | 93 | 153 |
Reclass and Elims | ||||
Net sales and operating revenues — | ||||
External | 0 | 0 | 0 | 0 |
Affiliated companies | (237) | (250) | (736) | (761) |
Net sales and operating revenues | (237) | (250) | (736) | (761) |
Costs and expenses | ||||
Cost of sales (exclusive of depreciation and amortization shown below) | (237) | (250) | (736) | (761) |
Engineering, research, and development | 0 | 0 | 0 | 0 |
Selling, general, and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization of other intangibles | 0 | 0 | 0 | 0 |
Costs and Expenses | (237) | (250) | (736) | (761) |
Other income (expense) | ||||
Loss on sale of receivables | 0 | 0 | 0 | 0 |
Other income (expense) | (18) | (12) | (48) | (38) |
Total other income (expense) | (18) | (12) | (48) | (38) |
Earnings before interest expense, income taxes, and noncontrolling interests | (18) | (12) | (48) | (38) |
Interest expense — | ||||
External (net of interest capitalized) | 0 | 0 | 0 | 0 |
Affiliated Income Expenses Net Of Interest Income | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | (18) | (12) | (48) | (38) |
Income tax expense | 0 | 0 | 0 | 0 |
Equity in net income (loss) from affiliated companies | (96) | (97) | (347) | (334) |
Net Income (loss) | (114) | (109) | (395) | (372) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Tenneco Inc. | (114) | (109) | (395) | (372) |
Comprehensive income (loss) attributable to Tenneco Inc. | $ (114) | $ (109) | $ (395) | $ (372) |
Supplemental Guarantor Conden57
Supplemental Guarantor Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||||
Cash and cash equivalents | $ 220 | $ 250 | $ 282 | $ 275 | $ 260 | $ 275 |
Restricted cash | 2 | 3 | ||||
Receivables, net | 1,281 | 1,088 | ||||
Inventories | 720 | 688 | ||||
Deferred income taxes | 72 | 81 | ||||
Prepayments and other | 276 | 284 | ||||
Total current assets | 2,571 | 2,426 | ||||
Other assets: | ||||||
Investment in affiliated companies | 0 | 0 | ||||
Notes and advances receivable from affiliates | 0 | 0 | ||||
Long-term receivables, net | 14 | 12 | ||||
Goodwill | 62 | 65 | ||||
Intangibles, net | 23 | 26 | ||||
Deferred income taxes | 157 | 143 | ||||
Other | 97 | 106 | ||||
Total other assets | 353 | 352 | ||||
Plant, property, and equipment, at cost | 3,439 | 3,490 | ||||
Less — Accumulated depreciation and amortization | (2,206) | (2,272) | ||||
Plant, property and equipment, net | 1,233 | 1,218 | ||||
Total Assets | 4,157 | 3,996 | 4,221 | |||
Short-term debt (including current maturities of long-term debt) | ||||||
Short-term debt — non-affiliated | 95 | 60 | ||||
Short-term debt — affiliated | 0 | 0 | ||||
Trade payables | 1,364 | 1,372 | ||||
Accrued taxes | 32 | 40 | ||||
Other | 359 | 327 | ||||
Total current liabilities | 1,850 | 1,799 | ||||
Long-term debt — non-affiliated | 1,246 | 1,055 | ||||
Long-term debt — affiliated | 0 | 0 | ||||
Deferred income taxes | 16 | 18 | ||||
Postretirement benefits and other liabilities | $ 526 | $ 551 | ||||
Commitments and contingencies | ||||||
Total liabilities | $ 3,638 | $ 3,423 | ||||
Redeemable noncontrolling interests | 36 | 35 | ||||
Tenneco Inc. shareholders’ equity | 447 | 497 | ||||
Noncontrolling interests | 36 | 41 | ||||
Total equity | 483 | 538 | 648 | |||
Total liabilities, redeemable noncontrolling interests and equity | 4,157 | 3,996 | ||||
Guarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 2 | 4 | 10 | 0 | 0 | 6 |
Restricted cash | 0 | 0 | ||||
Receivables, net | 428 | 408 | ||||
Inventories | 350 | 312 | ||||
Deferred income taxes | 48 | 49 | ||||
Prepayments and other | 87 | 96 | ||||
Total current assets | 915 | 875 | ||||
Other assets: | ||||||
Investment in affiliated companies | 1,155 | 1,064 | ||||
Notes and advances receivable from affiliates | 935 | 944 | ||||
Long-term receivables, net | 11 | 12 | ||||
Goodwill | 22 | 22 | ||||
Intangibles, net | 10 | 10 | ||||
Deferred income taxes | 79 | 76 | ||||
Other | 36 | 40 | ||||
Total other assets | 2,248 | 2,168 | ||||
Plant, property, and equipment, at cost | 1,281 | 1,236 | ||||
Less — Accumulated depreciation and amortization | (855) | (845) | ||||
Plant, property and equipment, net | 426 | 391 | ||||
Total Assets | 3,589 | 3,434 | ||||
Short-term debt (including current maturities of long-term debt) | ||||||
Short-term debt — non-affiliated | 0 | 0 | ||||
Short-term debt — affiliated | 116 | 243 | ||||
Trade payables | 531 | 478 | ||||
Accrued taxes | 14 | (15) | ||||
Other | 141 | 134 | ||||
Total current liabilities | 802 | 840 | ||||
Long-term debt — non-affiliated | 0 | 0 | ||||
Long-term debt — affiliated | 1,662 | 1,730 | ||||
Deferred income taxes | 0 | 0 | ||||
Postretirement benefits and other liabilities | $ 419 | $ 418 | ||||
Commitments and contingencies | ||||||
Total liabilities | $ 2,883 | $ 2,988 | ||||
Redeemable noncontrolling interests | 0 | 0 | ||||
Tenneco Inc. shareholders’ equity | 706 | 446 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 706 | 446 | ||||
Total liabilities, redeemable noncontrolling interests and equity | 3,589 | 3,434 | ||||
Nonguarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 218 | 246 | 272 | 275 | 260 | 269 |
Restricted cash | 2 | 3 | ||||
Receivables, net | 1,328 | 1,309 | ||||
Inventories | 370 | 376 | ||||
Deferred income taxes | 18 | 25 | ||||
Prepayments and other | 189 | 188 | ||||
Total current assets | 2,125 | 2,173 | ||||
Other assets: | ||||||
Investment in affiliated companies | 0 | 0 | ||||
Notes and advances receivable from affiliates | 12,688 | 10,589 | ||||
Long-term receivables, net | 3 | 0 | ||||
Goodwill | 40 | 43 | ||||
Intangibles, net | 13 | 16 | ||||
Deferred income taxes | 24 | 14 | ||||
Other | 50 | 53 | ||||
Total other assets | 12,818 | 10,715 | ||||
Plant, property, and equipment, at cost | 2,158 | 2,254 | ||||
Less — Accumulated depreciation and amortization | (1,351) | (1,427) | ||||
Plant, property and equipment, net | 807 | 827 | ||||
Total Assets | 15,750 | 13,715 | ||||
Short-term debt (including current maturities of long-term debt) | ||||||
Short-term debt — non-affiliated | 80 | 54 | ||||
Short-term debt — affiliated | 213 | 220 | ||||
Trade payables | 923 | 1,000 | ||||
Accrued taxes | 18 | 31 | ||||
Other | 259 | 241 | ||||
Total current liabilities | 1,493 | 1,546 | ||||
Long-term debt — non-affiliated | 30 | 44 | ||||
Long-term debt — affiliated | 12,601 | 10,516 | ||||
Deferred income taxes | 16 | 18 | ||||
Postretirement benefits and other liabilities | $ 107 | $ 129 | ||||
Commitments and contingencies | ||||||
Total liabilities | $ 14,247 | $ 12,253 | ||||
Redeemable noncontrolling interests | 36 | 35 | ||||
Tenneco Inc. shareholders’ equity | 1,431 | 1,386 | ||||
Noncontrolling interests | 36 | 41 | ||||
Total equity | 1,467 | 1,427 | ||||
Total liabilities, redeemable noncontrolling interests and equity | 15,750 | 13,715 | ||||
Tenneco Inc | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||||
Receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred income taxes | 6 | 7 | ||||
Prepayments and other | 0 | 0 | ||||
Total current assets | 6 | 7 | ||||
Other assets: | ||||||
Investment in affiliated companies | 982 | 764 | ||||
Notes and advances receivable from affiliates | 4,875 | 4,844 | ||||
Long-term receivables, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangibles, net | 0 | 0 | ||||
Deferred income taxes | 54 | 53 | ||||
Other | 11 | 13 | ||||
Total other assets | 5,922 | 5,674 | ||||
Plant, property, and equipment, at cost | 0 | 0 | ||||
Less — Accumulated depreciation and amortization | 0 | 0 | ||||
Plant, property and equipment, net | 0 | 0 | ||||
Total Assets | 5,928 | 5,681 | ||||
Short-term debt (including current maturities of long-term debt) | ||||||
Short-term debt — non-affiliated | 15 | 6 | ||||
Short-term debt — affiliated | 0 | 9 | ||||
Trade payables | 0 | 0 | ||||
Accrued taxes | 0 | 24 | ||||
Other | 15 | 3 | ||||
Total current liabilities | 30 | 42 | ||||
Long-term debt — non-affiliated | 1,216 | 1,011 | ||||
Long-term debt — affiliated | 4,235 | 4,131 | ||||
Deferred income taxes | 0 | 0 | ||||
Postretirement benefits and other liabilities | $ 0 | $ 0 | ||||
Commitments and contingencies | ||||||
Total liabilities | $ 5,481 | $ 5,184 | ||||
Redeemable noncontrolling interests | 0 | 0 | ||||
Tenneco Inc. shareholders’ equity | 447 | 497 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 447 | 497 | ||||
Total liabilities, redeemable noncontrolling interests and equity | 5,928 | 5,681 | ||||
Reclass and Elims | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||||
Receivables, net | (475) | (629) | ||||
Inventories | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Prepayments and other | 0 | 0 | ||||
Total current assets | (475) | (629) | ||||
Other assets: | ||||||
Investment in affiliated companies | (2,137) | (1,828) | ||||
Notes and advances receivable from affiliates | (18,498) | (16,377) | ||||
Long-term receivables, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangibles, net | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other | 0 | 0 | ||||
Total other assets | (20,635) | (18,205) | ||||
Plant, property, and equipment, at cost | 0 | 0 | ||||
Less — Accumulated depreciation and amortization | 0 | 0 | ||||
Plant, property and equipment, net | 0 | 0 | ||||
Total Assets | (21,110) | (18,834) | ||||
Short-term debt (including current maturities of long-term debt) | ||||||
Short-term debt — non-affiliated | 0 | 0 | ||||
Short-term debt — affiliated | (329) | (472) | ||||
Trade payables | (90) | (106) | ||||
Accrued taxes | 0 | 0 | ||||
Other | (56) | (51) | ||||
Total current liabilities | (475) | (629) | ||||
Long-term debt — non-affiliated | 0 | 0 | ||||
Long-term debt — affiliated | (18,498) | (16,377) | ||||
Deferred income taxes | 0 | 0 | ||||
Postretirement benefits and other liabilities | $ 0 | $ 4 | ||||
Commitments and contingencies | ||||||
Total liabilities | $ (18,973) | $ (17,002) | ||||
Redeemable noncontrolling interests | 0 | 0 | ||||
Tenneco Inc. shareholders’ equity | (2,137) | (1,832) | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | (2,137) | (1,832) | ||||
Total liabilities, redeemable noncontrolling interests and equity | $ (21,110) | $ (18,834) |
Supplemental Guarantor Conden58
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||||
Net cash provided (used) by operating activities | $ 106,000,000 | $ 115,000,000 | $ 188,000,000 | $ 89,000,000 |
Investing Activities | ||||
Proceeds from sale of assets | 1,000,000 | 1,000,000 | 3,000,000 | 1,000,000 |
Cash payments for plant, property, and equipment | (71,000,000) | (95,000,000) | (221,000,000) | (262,000,000) |
Cash payments for software related intangible assets | (5,000,000) | (3,000,000) | (13,000,000) | (12,000,000) |
Changes in restricted cash | 0 | 0 | 1,000,000 | 0 |
Net cash used by investing activities | (75,000,000) | (97,000,000) | (230,000,000) | (273,000,000) |
Financing Activities | ||||
Issuance (repurchase) of common shares | 0 | 0 | 5,000,000 | (1,000,000) |
Tax impact from stock-based compensation | (5,000,000) | 1,000,000 | 1,000,000 | 18,000,000 |
Retirement of long-term debt | (4,000,000) | (6,000,000) | (25,000,000) | (16,000,000) |
Issuance of long-term debt | 1,000,000 | 0 | 1,000,000 | 45,000,000 |
Debt issuance cost of long-term debt | 0 | 0 | (1,000,000) | 0 |
Purchase of common stock under the share repurchase program | (114,000,000) | 0 | (158,000,000) | 0 |
Net decrease in bank overdrafts | (10,000,000) | (4,000,000) | (21,000,000) | (5,000,000) |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables | 138,000,000 | (20,000,000) | 223,000,000 | 147,000,000 |
Net decrease in short-term borrowings secured by accounts receivables | (20,000,000) | 30,000,000 | 30,000,000 | 20,000,000 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 0 | 0 | 0 | 0 |
Capital contribution from noncontrolling interest partner | 0 | 0 | 0 | 5,000,000 |
Distributions to noncontrolling interest partners | (22,000,000) | 0 | (44,000,000) | (23,000,000) |
Net cash provided (used) by financing activities | (36,000,000) | 1,000,000 | 11,000,000 | 190,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | (25,000,000) | (4,000,000) | (31,000,000) | (6,000,000) |
Increase (decrease) in cash and cash equivalents | (30,000,000) | 15,000,000 | (62,000,000) | 0 |
Cash and cash equivalents, July 1 and January 1, respectively | 250,000,000 | 260,000,000 | 282,000,000 | 275,000,000 |
Cash and cash equivalents, September 30 (Note) | 220,000,000 | 275,000,000 | 220,000,000 | 275,000,000 |
Guarantor Subsidiaries | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | 17,000,000 | 86,000,000 | 61,000,000 | (70,000,000) |
Investing Activities | ||||
Proceeds from sale of assets | (1,000,000) | 0 | 0 | 0 |
Cash payments for plant, property, and equipment | (36,000,000) | (31,000,000) | (93,000,000) | (78,000,000) |
Cash payments for software related intangible assets | (2,000,000) | (2,000,000) | (7,000,000) | (8,000,000) |
Changes in restricted cash | 0 | |||
Net cash used by investing activities | (39,000,000) | (33,000,000) | (100,000,000) | (86,000,000) |
Financing Activities | ||||
Issuance (repurchase) of common shares | 0 | 0 | ||
Tax impact from stock-based compensation | 0 | 0 | 0 | 0 |
Retirement of long-term debt | 0 | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | 0 | |
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | ||
Net decrease in bank overdrafts | 0 | 0 | 0 | 0 |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables | 0 | 0 | 0 | 0 |
Net decrease in short-term borrowings secured by accounts receivables | 0 | 0 | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 20,000,000 | (53,000,000) | 31,000,000 | 150,000,000 |
Capital contribution from noncontrolling interest partner | 0 | |||
Distributions to noncontrolling interest partners | 0 | 0 | 0 | |
Net cash provided (used) by financing activities | 20,000,000 | (53,000,000) | 31,000,000 | 150,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | (2,000,000) | 0 | (8,000,000) | (6,000,000) |
Cash and cash equivalents, July 1 and January 1, respectively | 4,000,000 | 0 | 10,000,000 | 6,000,000 |
Cash and cash equivalents, September 30 (Note) | 2,000,000 | 0 | 2,000,000 | 0 |
Non-Guarantor Subsidiaries | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | 114,000,000 | 42,000,000 | 202,000,000 | 212,000,000 |
Investing Activities | ||||
Proceeds from sale of assets | 2,000,000 | 1,000,000 | 3,000,000 | 1,000,000 |
Cash payments for plant, property, and equipment | (35,000,000) | (64,000,000) | (128,000,000) | (184,000,000) |
Cash payments for software related intangible assets | (3,000,000) | (1,000,000) | (6,000,000) | (4,000,000) |
Changes in restricted cash | 1,000,000 | |||
Net cash used by investing activities | (36,000,000) | (64,000,000) | (130,000,000) | (187,000,000) |
Financing Activities | ||||
Issuance (repurchase) of common shares | 0 | 0 | ||
Tax impact from stock-based compensation | 0 | 0 | 0 | 0 |
Retirement of long-term debt | (1,000,000) | 0 | (14,000,000) | 0 |
Issuance of long-term debt | 1,000,000 | 1,000,000 | 45,000,000 | |
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | ||
Net decrease in bank overdrafts | (10,000,000) | (4,000,000) | (21,000,000) | (5,000,000) |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables | (29,000,000) | 22,000,000 | 30,000,000 | 29,000,000 |
Net decrease in short-term borrowings secured by accounts receivables | 0 | 0 | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | (20,000,000) | 23,000,000 | (47,000,000) | (64,000,000) |
Capital contribution from noncontrolling interest partner | 5,000,000 | |||
Distributions to noncontrolling interest partners | (22,000,000) | (44,000,000) | (23,000,000) | |
Net cash provided (used) by financing activities | (81,000,000) | 41,000,000 | (95,000,000) | (13,000,000) |
Effect of foreign exchange rate changes on cash and cash equivalents | (25,000,000) | (4,000,000) | (31,000,000) | (6,000,000) |
Increase (decrease) in cash and cash equivalents | (28,000,000) | 15,000,000 | (54,000,000) | 6,000,000 |
Cash and cash equivalents, July 1 and January 1, respectively | 246,000,000 | 260,000,000 | 272,000,000 | 269,000,000 |
Cash and cash equivalents, September 30 (Note) | 218,000,000 | 275,000,000 | 218,000,000 | 275,000,000 |
Tenneco Inc | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | 4,000,000 | (13,000,000) | (28,000,000) | (27,000,000) |
Investing Activities | ||||
Proceeds from sale of assets | 0 | 0 | 0 | 0 |
Cash payments for plant, property, and equipment | 0 | 0 | 0 | 0 |
Cash payments for software related intangible assets | 0 | 0 | 0 | 0 |
Changes in restricted cash | 0 | |||
Net cash used by investing activities | 0 | 0 | 0 | 0 |
Financing Activities | ||||
Issuance (repurchase) of common shares | 5,000,000 | (1,000,000) | ||
Tax impact from stock-based compensation | (5,000,000) | 1,000,000 | 1,000,000 | 18,000,000 |
Retirement of long-term debt | (3,000,000) | (6,000,000) | (11,000,000) | (16,000,000) |
Issuance of long-term debt | 0 | 0 | 0 | |
Debt issuance cost of long-term debt | (1,000,000) | |||
Purchase of common stock under the share repurchase program | (114,000,000) | (158,000,000) | ||
Net decrease in bank overdrafts | 0 | 0 | 0 | 0 |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables | 167,000,000 | (42,000,000) | 193,000,000 | 118,000,000 |
Net decrease in short-term borrowings secured by accounts receivables | (20,000,000) | 30,000,000 | 30,000,000 | 20,000,000 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | (29,000,000) | 30,000,000 | (31,000,000) | (112,000,000) |
Capital contribution from noncontrolling interest partner | 0 | |||
Distributions to noncontrolling interest partners | 0 | 0 | 0 | |
Net cash provided (used) by financing activities | (4,000,000) | 13,000,000 | 28,000,000 | 27,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash and cash equivalents, July 1 and January 1, respectively | 0 | 0 | 0 | 0 |
Cash and cash equivalents, September 30 (Note) | 0 | 0 | 0 | 0 |
Reclass and Elims | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | (29,000,000) | 0 | (47,000,000) | (26,000,000) |
Investing Activities | ||||
Proceeds from sale of assets | 0 | 0 | 0 | 0 |
Cash payments for plant, property, and equipment | 0 | 0 | 0 | 0 |
Cash payments for software related intangible assets | 0 | 0 | 0 | 0 |
Changes in restricted cash | 0 | |||
Net cash used by investing activities | 0 | 0 | 0 | 0 |
Financing Activities | ||||
Issuance (repurchase) of common shares | 0 | 0 | ||
Tax impact from stock-based compensation | 0 | 0 | 0 | 0 |
Retirement of long-term debt | 0 | 0 | 0 | 0 |
Issuance of long-term debt | 0 | 0 | 0 | |
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | ||
Net decrease in bank overdrafts | 0 | 0 | 0 | 0 |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables | 0 | 0 | 0 | 0 |
Net decrease in short-term borrowings secured by accounts receivables | 0 | 0 | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 29,000,000 | 0 | 47,000,000 | 26,000,000 |
Capital contribution from noncontrolling interest partner | 0 | |||
Distributions to noncontrolling interest partners | 0 | 0 | 0 | |
Net cash provided (used) by financing activities | 29,000,000 | 0 | 47,000,000 | 26,000,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash and cash equivalents, July 1 and January 1, respectively | 0 | 0 | 0 | 0 |
Cash and cash equivalents, September 30 (Note) | $ 0 | $ 0 | $ 0 | $ 0 |