Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document and Entity Information [Abstract] | ||
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 | |
Document Type | 10-Q/A | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | true | |
Amendment Description | Tenneco Inc. (together with its subsidiaries, "Tenneco," the "Company," "we" and "our") is filing this Amendment No. 1 on Form 10-Q/A (the “Form 10-Q/A”) to its Quarterly Report on Form 10- Q for the quarter ended March 31, 2017, originally filed with the Securities and Exchange Commission on May 5, 2017 (the “Original Filing”), to make the certain changes as described below. In preparing the consolidated financial statements for the quarter ended June 30, 2017, the Company identified deficiencies in its internal control over financial reporting. These deficiencies, when aggregated together, resulted in a material weakness in the Company’s internal control over financial reporting in China as of June 30, 2017. Specifically, the Company did not have people with appropriate authority and experience in key positions in China to ensure adherence to Company policies and US GAAP. Additionally, we did not have adequate international oversight to prevent the intentional mischaracterization of the nature of accounting transactions related to payments received from suppliers by certain purchasing and accounting personnel at the Company’s China subsidiaries. The material weakness identified as of June 30, 2017 caused us to reevaluate our previous conclusions on internal control over financial reporting as of December 31, 2016, and we have now concluded that the material weakness relating to our internal control over financial reporting in China existed as of December 31, 2016. As a result, we have restated our December 31, 2016 report on internal control over financial reporting. As a result of the material weakness and our restated report on internal control over financial reporting, we have concluded that our disclosure controls and procedures were not effective as of March 31, 2017 and have determined to amend our report on those disclosure controls and procedures. The material weakness described above resulted in immaterial errors impacting our previously issued consolidated financial statements for the years ended December 31, 2016, 2015 and 2014, each interim and year-to-date period in those respective years, as well as the first quarter of 2017. We evaluated these errors and concluded that they did not, individually or in the aggregate, result in a material misstatement of our previously issued consolidated financial statements and that such financial statements may continue to be relied upon. This Form 10-Q/A amends the Original Filing to correct the immaterial errors to the consolidated financial statements, as described in more detail in Note 14 thereto. Revisions to the Original Filing have been made to the following items solely as a result of and to reflect these revisions: Part I, Item 1 - Financial Statements (Unaudited) Part I, Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4 - Controls and Procedures Part II, Item 1A - Risk Factors Part II, Item 6 - Exhibits As required by Rule 12b-15 under the Securities Exchange Act of 1934, the Company’s principal executive officer and principal financial officer are providing new currently dated certifications. In addition, the Company is filing a new letter of PricewaterhouseCoopers LLP regarding interim financial information. Accordingly, this Form 10-Q/A amends Part II, Item 6 in the Original Filing to reflect the filing of the new certifications and letter. Except as described above, this Form 10-Q/A does not amend, update or change any other items or disclosures in the Original Filing and does not purport to reflect any information or events subsequent to the filing thereof. As such, this Form 10-Q/A speaks only as of the date the Original Filing was filed, and the Company has not undertaken herein to amend, supplement or update any information contained in the Original Filing to give effect to any subsequent events. Accordingly, this Form 10-Q/A should be read in conjunction with the Company’s filings made with the Securities and Exchange Commission subsequent to the filing of the Original Filing, including any amendment to those filings. Concurrently with the filing of this Form 10-Q/A, we are also filing an amendment to our Annual Report on Form 10-K for the year ended December 31, 2016. Future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q will reflect the revisions for financial information included in this Form 10-Q/A and the Form 10-K/A for the year ended December 31, 2016. | |
Entity Common Stock, Shares Outstanding | 54,051,912 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Net sales and operating revenues | $ 2,292 | $ 2,136 |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,931 | 1,770 |
Engineering, research, and development | 39 | 39 |
Selling, general, and administrative | 148 | 147 |
Depreciation and amortization of other intangibles | 52 | 54 |
Costs and expenses | 2,170 | 2,010 |
Other expense | ||
Loss on sale of receivables | (1) | (1) |
Other expense | 0 | (1) |
Total other expense | (1) | (2) |
Earnings before interest expense, income taxes, and noncontrolling interests | 121 | 124 |
Interest expense | 15 | 18 |
Earnings before income taxes and noncontrolling interests | 106 | 106 |
Income tax expense | 33 | 34 |
Net income | 73 | 72 |
Less: Net income attributable to noncontrolling interests | 14 | 15 |
Net income attributable to Tenneco Inc. | $ 59 | $ 57 |
Weighted average shares of common stock outstanding — | ||
Basic (in shares) | 53,856,352 | 57,115,496 |
Diluted (in shares) | 54,231,759 | 57,445,941 |
Earnings Per Share, Basic | $ 1.10 | $ 1 |
Diluted earnings per share of common stock (in dollars per share) | $ 1.09 | $ 0.99 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income attributable to Tenneco Inc. | $ 59 | $ 57 |
Less: Net income attributable to noncontrolling interests | 14 | 15 |
Net Income | 73 | 72 |
Translation of foreign currency statements attributable to Tenneco | 21 | 23 |
Translation of foreign currency statements attributable to Noncontrolling Interest | 1 | 1 |
Translation of foreign currency statements | 22 | 24 |
Additional Liability for Pension and Postretirement Benefits, net of tax attributable to Tenneco | 7 | 4 |
Additional liability for pension and postretirement benefits, net of tax | 7 | 4 |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 620 | |
Ending balance | 691 | 544 |
Other Comprehensive Income (Loss) | 29 | 28 |
Comprehensive Income attributable to Tenneco | 87 | 84 |
Comprehensive Income attributable to Noncontrolling Interest | 15 | 16 |
Comprehensive Income | 102 | 100 |
Tenneco Inc. | ||
Net income attributable to Tenneco Inc. | 59 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 497 | |
Ending balance | 637 | 497 |
Other Comprehensive Income (Loss) | 28 | 27 |
Comprehensive Income attributable to Tenneco | 87 | |
AOCI Tenneco, Inc | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (665) | (665) |
Ending balance | (637) | (638) |
Other Comprehensive Income (Loss) | 28 | 27 |
Tenneco, Inc. Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (338) | (297) |
Reclassification | 21 | 23 |
Ending balance | (317) | (274) |
Tenneco, Inc. Additional Liability for Pension and Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (327) | (368) |
Reclassification | 7 | 4 |
Ending balance | (320) | (364) |
Noncontrolling Interests | ||
Less: Net income attributable to noncontrolling interests | 14 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 47 | 39 |
Ending balance | 54 | 47 |
Other Comprehensive Income (Loss) | 1 | |
Comprehensive Income attributable to Noncontrolling Interest | 15 | |
AOCI Noncontrolling Interests | ||
Accumulated Other Comprehensive Income (Loss) | ||
Ending balance | (4) | 0 |
Noncontrolling Interests Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (5) | (1) |
Reclassification | 1 | 1 |
Ending balance | (4) | 0 |
Total | ||
Accumulated Other Comprehensive Income (Loss) | ||
Ending balance | (641) | (638) |
Total Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (343) | (298) |
Reclassification | 22 | 24 |
Ending balance | (321) | (274) |
Total Additional Liability for Pension and Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (327) | (368) |
Reclassification | 7 | 4 |
Ending balance | $ (320) | $ (364) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 341 | $ 347 |
Restricted cash | 3 | 2 |
Receivables — | ||
Customer notes and accounts, net | 1,421 | 1,272 |
Other | 21 | 22 |
Inventories — | ||
Finished goods | 303 | 284 |
Work in process | 262 | 245 |
Raw materials | 150 | 137 |
Materials and supplies | 67 | 64 |
Prepayments and other | 288 | 229 |
Total current assets | 2,856 | 2,602 |
Other assets: | ||
Long-term receivables, net | 9 | 9 |
Goodwill | 58 | 57 |
Intangibles, net | 18 | 19 |
Deferred income taxes | 189 | 199 |
Other | 107 | 103 |
Total other assets | 381 | 387 |
Plant, property, and equipment, at cost | 3,651 | 3,548 |
Less — Accumulated depreciation and amortization | (2,246) | (2,191) |
Plant, property and equipment, net | 1,405 | 1,357 |
Total Assets | 4,642 | 4,346 |
Current liabilities: | ||
Short-term debt (including current maturities of long-term debt) | 113 | 90 |
Accounts payable | 1,594 | 1,501 |
Accrued taxes | 41 | 39 |
Accrued interest | 10 | 15 |
Accrued liabilities | 284 | 285 |
Other | 39 | 43 |
Total current liabilities | 2,081 | 1,973 |
Long-term debt | 1,406 | 1,294 |
Deferred income taxes | 7 | 7 |
Postretirement benefits | 259 | 273 |
Deferred credits and other liabilities | 150 | 139 |
Commitments and contingencies | ||
Total liabilities | 3,903 | 3,686 |
Redeemable noncontrolling interests | 48 | 40 |
Tenneco Inc. Shareholders’ equity: | ||
Common stock | 1 | 1 |
Premium on common stock and other capital surplus | 3,104 | 3,098 |
Accumulated other comprehensive loss | (637) | (665) |
Retained earnings (accumulated deficit) | (1,054) | (1,100) |
Total shareholders equity before treasury stock | 1,414 | 1,334 |
Less — Shares held as treasury stock, at cost | 777 | 761 |
Total Tenneco Inc. shareholders’ equity | 637 | 573 |
Noncontrolling interests | 54 | 47 |
Total equity | 691 | 620 |
Total liabilities, redeemable noncontrolling interests and equity | $ 4,642 | $ 4,346 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net Income | $ 73 | $ 72 |
Adjustments to reconcile net income to cash used by operating activities — | ||
Depreciation and amortization of other intangibles | 52 | 54 |
Deferred income taxes | 7 | 3 |
Stock-based compensation | 9 | 7 |
Loss on sale of assets | 1 | 0 |
Changes in components of working capital — | ||
(Increase) decrease in receivables | (137) | (160) |
(Increase) decrease in inventories | (45) | (51) |
(Increase) decrease in prepayments and other current assets | (57) | (19) |
Increase (decrease) in payables | 93 | 57 |
Increase (decrease) in accrued taxes | 3 | 15 |
Increase (decrease) in accrued interest | (5) | 12 |
Increase (decrease) in other current liabilities | (8) | (17) |
Changes in long-term assets | (1) | 3 |
Changes in long-term liabilities | 5 | (6) |
Other | 1 | 1 |
Net cash used by operating activities | (9) | (29) |
Investing Activities | ||
Proceeds from sale of assets | 3 | 1 |
Cash payments for plant, property, and equipment | (103) | (68) |
Cash payments for software related intangible assets | (6) | (6) |
Changes in restricted cash | (1) | (1) |
Net cash used by investing activities | (107) | (74) |
Financing Activities | ||
Repurchase of common shares | (3) | (2) |
Cash dividends | (13) | 0 |
Retirement of long-term debt | (6) | (4) |
Issuance of long-term debt | 0 | 5 |
Purchase of common stock under the share repurchase program | (16) | (16) |
Net increase in bank overdrafts | 3 | 7 |
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable | 117 | 193 |
Net increase in short-term borrowings secured by accounts receivable | 20 | 0 |
Net cash provided by financing activities | 102 | 183 |
Effect of foreign exchange rate changes on cash and cash equivalents | 8 | 7 |
Increase (decrease) in cash and cash equivalents | (6) | 87 |
Cash and cash equivalents, January 1 | 347 | 287 |
Cash and cash equivalents, March 31 (Note) | 341 | 374 |
Supplemental Cash Flow Information | ||
Cash paid during the period for interest (net of interest capitalized) | 22 | 6 |
Cash paid during the period for income taxes (net of refunds) | 15 | 21 |
Non-cash Investing and Financing Activities | ||
Period end balance of trade payables for plant, property, and equipment | $ 50 | $ 41 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - 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 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 315,706 | |||||||
Beginning balance at Dec. 31, 2015 | $ 1 | $ 3,081 | $ (665) | $ (1,456) | $ 536 | $ 39 | ||
Beginning balance (in shares) at Dec. 31, 2015 | 65,067,132 | 7,473,325 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted shares forfeited (shares) | 0 | |||||||
Stock options exercised (shares) | 21,392 | |||||||
Premium on common stock issued pursuant to benefit plans | 4 | |||||||
Other comprehensive income | $ 28 | 27 | $ 27 | 1 | ||||
Net income attributable to Tenneco Inc. | 57 | 57 | ||||||
Net income | 8 | |||||||
Cash dividends declared | 0 | |||||||
Purchase of common stock through stock repurchase program (shares) | 360,000 | |||||||
Purchase of common stock through stock repurchase program | 16 | |||||||
Ending balance (in shares) at Mar. 31, 2016 | 65,404,230 | 7,833,325 | ||||||
Ending balance at Mar. 31, 2016 | 544 | $ 1 | 3,085 | (638) | (1,399) | $ 552 | 497 | 47 |
Stock Issued During Period, Shares, Share-based Compensation, Gross | 11,241 | |||||||
Beginning balance at Dec. 31, 2016 | $ 620 | $ 1 | 3,098 | (665) | (1,100) | $ 761 | 497 | 47 |
Beginning balance (in shares) at Dec. 31, 2016 | 65,891,930 | 11,655,938 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted shares forfeited (shares) | (82,808) | |||||||
Stock options exercised (shares) | 164,863 | 164,863 | ||||||
Premium on common stock issued pursuant to benefit plans | 6 | |||||||
Other comprehensive income | $ 29 | 28 | 28 | |||||
Net income attributable to Tenneco Inc. | 59 | 59 | 59 | |||||
Net income | 7 | |||||||
Cash dividends declared | (13) | |||||||
Purchase of common stock through stock repurchase program (shares) | 240,000 | |||||||
Purchase of common stock through stock repurchase program | 16 | |||||||
Ending balance (in shares) at Mar. 31, 2017 | 65,985,226 | 11,895,938 | ||||||
Ending balance at Mar. 31, 2017 | $ 691 | $ 1 | $ 3,104 | $ (637) | $ (1,054) | $ 777 | $ 637 | $ 54 |
Consolidation and Presentation
Consolidation and Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 . In our opinion, the accompanying unaudited condensed consolidated 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. Revision of Previously Issued Financial Statements For the periods from April 1, 2013 through March 31, 2017, we identified approximately $34 million in lump sum payments from our suppliers that were incorrectly recorded upon receipt as a reduction to cost of sales. The errors resulted from the intentional mischaracterization by certain purchasing and accounting personnel at the Company’s China subsidiaries of the nature of the accounting transactions related to the payments received from suppliers. These payments should have been deferred and amortized over the life of the underlying supplier agreements. The deferred amount related to these payments was $29 million at March 31, 2017 and recorded within deferred credit and other liabilities. In addition, we identified an unrelated error of approximately $7 million of substrate liabilities that should have been accrued during the periods from January 1, 2016 through March 31, 2017, understating cost of sales in each of these periods. We evaluated the impact of these items on prior periods under the guidance of SEC Staff Accounting Bulletin (SAB) No. 99, “Materiality” and determined that the amounts were not material to previously issued financial statements. As a result, we have revised and will revise for annual and interim periods in future filings, for certain amounts in the consolidated financial statements in order to correct these errors. See Note 14 in our notes to condensed consolidated financial statements located in Part I Item 1 of this Form 10-Q/A. Prepayments and Other Prepayments and other included $126 million and $97 million at March 31, 2017 and December 31, 2016 , respectively, for in-process tools and dies that we are building for our original equipment customers. Accounts Payable Accounts payable included $88 million and $99 million at March 31, 2017 and December 31, 2016 , respectively, for accrued compensation and $30 million and $27 million at March 31, 2017 and December 31, 2016 , respectively, for bank overdrafts at our European subsidiaries. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The net carrying and estimated fair values of our financial instruments by class at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Net Carrying Amount Fair Value Net Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,409 $ 1,418 $ 1,297 $ 1,311 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 $721 million and $725 million at March 31, 2017 and December 31, 2016 , respectively. We have classified $682 million and $571 million as level 2 in the fair value hierarchy at March 31, 2017 and December 31, 2016 , respectively, since we utilize valuation inputs that are observable both directly and indirectly. We classified the remaining $15 million , consisting of foreign subsidiary debt, as level 3 in the fair value hierarchy at both March 31, 2017 and December 31, 2016 . 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 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 consolidated balance sheet. The fair value of our foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2017 and a net liability position of less than $1 million at December 31, 2016 , respectively. The following table summarizes by major currency the notional amounts for foreign currency forward purchase and sale contracts as of March 31, 2017 (all of which mature in 2017): Notional Amount in Foreign Currency (Millions) British pounds —Purchase 19 —Sell (9 ) Canadian dollars —Purchase 2 —Sell (4 ) European euro —Purchase 10 —Sell (5 ) Japanese yen —Purchase 89 —Sell (90 ) South African rand —Sell (7 ) U.S. dollars —Purchase 21 —Sell (35 ) 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 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 the condensed consolidated financial statements of Tenneco Inc., 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 Futaba (U.K.) Limited, formerly our Futaba-Tenneco (U.K.) joint venture. Employer contributions are funded by Tenneco Walker (U.K.) Limited, as the sponsoring employer, and were also funded by Futaba (U.K.) Limited prior to its ceasing, on April 28, 2017, to be an entity in which Tenneco has an equity interest. 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. 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 $18 million and $19 million at March 31, 2017 and December 31, 2016 , respectively. At March 31, 2017 , 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 required Futaba to indemnify TMEL for any cost, loss or liability which TMEL may have incurred 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 was 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 March 31, 2017 , the maximum amount reimbursable by Futaba to TMEL was approximately $8 million . Subsequently, on April 28, 2017, Walker Limited sold its equity interest in the Futaba-Tenneco U.K. joint venture entity to Futaba Industrial Co., Ltd. In connection with the closing of that transaction, this indemnity agreement was terminated and accordingly Futaba no longer has any reimbursement obligations thereunder. We have issued guarantees through letters of credit in connection with some obligations of our affiliates. As of March 31, 2017 , we have guaranteed $31 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 delivery of negotiable 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. Such financial instruments held by our European subsidiary totaled zero and less than $1 million at March 31, 2017 and December 31, 2016 , respectively. In certain instances, several of our Chinese subsidiaries receive payment 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 $12 million at both March 31, 2017 and December 31, 2016 and were classified as notes payable. Financial instruments received from original equipment (OE) customers and not redeemed totaled $9 million and $5 million at March 31, 2017 and December 31, 2016 , 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 $9 million and $5 million in other current assets at March 31, 2017 and December 31, 2016 , 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 the 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 participate in supply chain financing programs 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 or drafts from Tenneco's suppliers at any time. If the financial institutions did not continue to purchase receivables or drafts from Tenneco's suppliers under these programs, 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. 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 for $2 million at both March 31, 2017 and December 31, 2016 . One of our subsidiaries in Brazil is required by law to maintain a cash deposit with the financial institution to guarantee the maximum estimated loss related to a tax audit until a settlement is reached. The cash deposit required was $1 million which has been classified as restricted cash on the Tenneco Inc. consolidated balance sheet at March 31, 2017 . |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
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. As of March 31, 2017 , the senior credit facility provides us with a total revolving credit facility size of $1,200 million and had a $264 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 $1 million debt issuance cost was $263 million as of March 31, 2017 . 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 $5.625 million 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 $24 million from current liabilities as of March 31, 2017 , 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 senior credit facility, and the actual ratios we calculated for the first quarter of 2017, are as follows (the ratios in the table reflect the revisions made to the financial statements in this Form 10-Q/A; these revisions would result in immaterial changes to the actual ratios reported to our lenders in prior periods, with such changes being less than .05 and .36 to the leverage ratio and interest coverage ratio, respectively): Quarter Ended March 31, 2017 Required Actual Leverage Ratio (maximum) 3.50 1.62 Interest Coverage Ratio (minimum) 2.75 15.38 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 March 31, 2017 , of the $1,200 million available under the revolving credit facility, we had unused borrowing capacity of $783 million with $417 million in outstanding borrowings and no outstanding letters of credit. As of March 31, 2017 , our outstanding debt also included (i) $264 million of a term loan which consisted of a $263 million net carrying amount including a $1 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 related to our 5 3 / 8 percent senior notes due December 15, 2024 , (iii) $500 million of notes which consisted of a $492 million net carrying amount including a $8 million debt issuance cost related to our 5 percent senior notes due July 15, 2026 (which were issued on June 13, 2016), and (iv) $126 million of other debt. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
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 $33 million and $34 million in the three month periods ended March 31, 2017 and March 31, 2016, respectively. The tax expense recorded in the first quarter of 2017 included a net tax benefit of $1 million primarily relating to the first quarter 2017 adoption of Accounting Standard Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The tax expense recorded in the first quarter of 2016 included a net tax benefit of $3 million primarily relating to tax adjustments to uncertain tax positions and prior year income tax estimates. We believe it is reasonably possible that up to $17 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Receivable Additional Disclosures [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable Securitization We securitize some of our accounts receivable on a limited recourse basis in the U.S. 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 the U.S., 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 April 2017, the U.S. program was amended and extended to April 30, 2019. The first priority facility now provides financing of up to $155 million and the second priority facility, which is subordinated to the first priority facility, now provides up to an additional $25 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 U.S. program was $50 million and $30 million at March 31, 2017 and December 31, 2016 , respectively. 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 seven 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 $209 million and $160 million at March 31, 2017 and December 31, 2016 , respectively. If we were not able to securitize receivables under either the U.S. 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 U.S. accounts receivable securitization program, 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 U.S. 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 March 31, 2017 and 2016 relating to our U.S. securitization program. In addition, we recognized a loss of $1 million in each of the three month periods ended March 31, 2017 and 2016 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 three months of both 2017 and 2016. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2017 | |
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 2016, we incurred $36 million in restructuring and related costs including asset write-downs of $6 million , primarily related to manufacturing footprint improvements in North America Ride Performance, headcount reduction and cost improvement initiatives in Europe and China Clean Air, South America and Australia, of which $17 million was recorded in cost of sales, $12 million in SG&A, $1 million in engineering expense, $2 million in other expense and $4 million in depreciation and amortization expense. In the first quarter of 2017, we incurred $15 million in restructuring and related costs, including asset write-downs of $1 million , primarily related to closing a Clean Air Belgian JIT plant in response to the end of production on a customer platform and cost improvement initiatives in Europe, of which $11 million was recorded in cost of sales, $3 million in SG&A and $1 million in depreciation and amortization expense. In the first quarter of 2016, we incurred $14 million in restructuring and related costs including asset write-downs of $5 million , primarily related to European cost reduction efforts and headcount reductions in South America, of which $3 million was recorded in cost of sales, $6 million in SG&A, $2 million in other expense and $3 million in depreciation and amortization expense. Amounts related to activities that are part of our restructuring reserves are as follows: December 31, 2017 2017 Impact of Exchange Rates March 31, 2017 (Millions) Employee Severance, Termination Benefits and Other Related Costs $15 13 (6 ) — $22 On January 31, 2013, we announced our intent to reduce structural costs in Europe by approximately $60 million annually. During the first quarter of 2016, we reached an annualized run rate on this cost reduction initiative of $49 million . With the disposition of the Gijon, Spain plant, which was completed at the end of the first quarter of 2016, the annualized rate essentially reached our target of $55 million at the current exchange rates at that time. In the first quarter of 2017, we incurred $15 million in restructuring and related costs, of which $2 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 2017 due to certain ongoing matters. For example, we closed the Gijon plant 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 engaged in a sales process for the facility. In March of 2016, we signed an agreement to transfer ownership of the aftermarket shock absorber manufacturing facility in Gijon to German private equity fund Quantum Capital Partners A.G. (QCP). The transfer to QCP was effective March 31, 2016 and under a three year manufacturing agreement, QCP will also continue as a supplier to Tenneco. 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 March 31, 2017 , we had excluded $96 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 , we have the obligation to remediate or contribute towards the remediation of certain sites, including one Federal Superfund site. At March 31, 2017 , our aggregated estimated share of environmental remediation costs for all these sites on a discounted basis was approximately $15 million , of which $2 million is recorded in other current liabilities and $13 million is recorded in deferred credits and other liabilities in our consolidated balance sheet. For those locations where the liability was discounted, the weighted average discount rate used was 2.5 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 each year beginning 2017 through 2021 and $13 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 and Litigation 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. On April 27, 2017, Tenneco received notification from the European Commission (EC) that it has administratively closed its global antitrust inquiry regarding the production, assembly, and supply of complete exhaust systems. No charges against Tenneco or any other competitor were initiated at any time and the EC inquiry is now closed. 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. Tenneco and certain of its competitors are also currently defendants in civil putative class action litigation in the United States. More related lawsuits may be filed, including in other jurisdictions. Plaintiffs in these cases generally allege that defendants have engaged in anticompetitive conduct, in violation of federal and state laws, relating to the sale of automotive exhaust systems or components thereof. Plaintiffs seek to recover, on behalf of themselves and various purported classes of purchasers, injunctive relief, damages and attorneys’ fees. However, as explained above, because we received conditional leniency from the DOJ, our civil liability in these follow-on actions is limited to single damages and we will not be jointly and severally liable with the other defendants, provided that we have satisfied our obligations under the DOJ leniency agreement and approval is granted by the presiding court. Antitrust law investigations, civil litigation, and related matters often continue for several years and can result in significant penalties and liability. We intend to vigorously defend the Company and/or take other actions to minimize our potential exposure. In light of the many uncertainties and variables involved, we cannot estimate the ultimate impact that these matters may have on our company. Further, there can be no assurance that the ultimate resolution of these matters 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, unclaimed property, employment matters, and commercial or contractual disputes, sometimes related to acquisitions or divestitures. Additionally, some of these matters involve allegations relating to legal compliance. 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, for many years we have been and continue to be subject to lawsuits initiated by claimants alleging health problems as a result of exposure to asbestos. 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 also to involve occupational exposures sustained in industries other than automotive. 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, in many cases 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 with our 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: Three Months Ended March 31, 2017 2016 (Millions) Beginning Balance January 1, $ 20 $ 23 Accruals related to product warranties 3 2 Reductions for payments made (3 ) (1 ) Ending Balance March 31, $ 20 $ 24 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share of common stock outstanding were computed as follows: Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 (Millions Except Share and Per Share Amounts) Basic earnings per share — Net income attributable to Tenneco Inc. $ 59 $ 57 Weighted Average shares of common stock outstanding 53,856,352 57,115,496 Earnings per share of common stock $ 1.10 $ 1.00 Diluted earnings per share — Net income attributable to Tenneco Inc. $ 59 $ 57 Weighted Average shares of common stock outstanding 53,856,352 57,115,496 Effect of dilutive securities: Restricted stock 145,999 48,603 Stock options 229,408 281,842 Weighted Average shares of common stock outstanding including dilutive securities 54,231,759 57,445,941 Earnings per share of common stock $ 1.09 $ 0.99 Options to purchase 834 and 335,826 shares of common stock were outstanding as of March 31, 2017 and 2016, respectively, but not included in the computation of diluted earnings per share respectively, because the options were anti-dilutive. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2017 | |
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 less than $1 million in each of the three month periods ended March 31, 2017 and 2016 related to nonqualified stock options as part of our selling, general and administrative expense. This had no impact on basic or diluted earnings per share for each of the three month periods ended March 31, 2017 and 2016. 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 accelerate the recognition of any remaining expense associated with their stock options and restricted stock. As of March 31, 2017 , there was no unrecognized compensation cost related to our stock option awards. Compensation expense for restricted stock, restricted stock units, long-term performance units and SARs (net of taxes) was $6 million and $7 million for the three month periods ended March 31, 2017 and 2016, respectively, and was recorded in selling, general, and administrative expense in our condensed consolidated statements of income. Cash received from stock option exercises for the three month periods ended March 31, 2017 and 2016 was $6 million and less than $1 million , respectively. Stock options exercised in the first three months of 2017 and 2016 generated a tax benefit of $2 million and a tax shortfall of less than $1 million , respectively. Stock Options — The following table reflects the status and activity for all options to purchase common stock for the period indicated: Three Months Ended March 31, 2017 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options Outstanding, January 1, 2017 606,525 $ 38.54 2.6 $ 12 Canceled (2,214 ) 56.23 — Forfeited (1,107 ) 56.23 — Exercised (164,863 ) 33.70 5 Outstanding, March 31, 2017 438,341 $ 40.22 2.6 $ 11 There have been no stock options granted since 2015. The total fair value of shares vested from options that were granted prior to 2015 was $2 million for each of the periods ended March 31, 2017 and 2016. Restricted Stock — The following table reflects the status for all nonvested restricted shares for the period indicated: Three Months Ended March 31, 2017 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2017 591,416 $ 44.63 Granted 182,543 68.04 Vested (261,003 ) 50.95 Forfeited (65,354 ) 53.12 Nonvested balance at March 31, 2017 447,602 $ 49.25 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 March 31, 2017 , approximately $24 million of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of approximately 1.7 years. The total fair value of restricted shares vested was $13 million and $7 million at March 31, 2017 and 2016, respectively. Share Repurchase Program — 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. In October 2015, our Board of Directors expanded this share repurchase program, authorizing the repurchase of an additional $200 million of the Company's outstanding common stock. In February 2017, our Board of Directors authorized the repurchase of up to $400 million of the Company's outstanding common stock over the next three years. This includes $112 million that remained authorized under earlier repurchase programs. The Company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The repurchase program does not obligate the Company to repurchase shares within any specific time or situations, and opportunities in higher priority areas could affect the cadence of this program. We repurchased 240,000 shares for $16 million through this program in the three months ended March 31, 2017 . Since we announced the share repurchase program in January 2015, we have repurchased 8.7 million shares for $454 million through March 31, 2017 . Treasury stock shares including repurchased shares were 11,895,938 and 11,655,938 shares at March 31, 2017 and December 31, 2016 , respectively. Dividends — On February 1, 2017, Tenneco announced the reinstatement of a quarterly dividend program. We expect to pay a quarterly dividend of $0.25 per share on our common stock, representing a planned annual dividend of $1.00 per share. In March 2017, we paid an initial quarterly dividend of $0.25 per share, or $13 million . While we currently expect that comparable quarterly cash dividends will continue to be paid in the future, our dividend program and the payment of future cash dividends under the program are subject to continued capital availability, the judgment of our Board of Directors and our continued compliance with the provisions pertaining to the payment of dividends under our debt agreements. 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 March 31, 2017 , $33 million of total unrecognized compensation costs is expected to be recognized over a weighted-average period of approximately 2.2 years. |
Pension Plans, Postretirement a
Pension Plans, Postretirement and Other Employee Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans, Postretirement and Other Employee Benefits | ension Plans, Postretirement and Other Employee Benefits Net periodic pension costs and postretirement benefit costs consist of the following components: Three Months Ended March 31, Pension Postretirement 2017 2016 2017 2016 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ — $ 2 $ — $ 2 $ — $ — Interest cost 3 3 4 4 1 1 Expected return on plan assets (4 ) (4 ) (6 ) (5 ) — — Net amortization: Actuarial loss 1 2 2 2 1 1 Net pension and postretirement costs $ — $ 3 $ — $ 3 $ 2 $ 2 For the three months ended March 31, 2017 , we made pension contributions of $11 million and $3 million for our domestic and foreign pension plans, respectively. Based on current actuarial estimates, we believe we will be required to contribute approximately $18 million for the remainder of 2017 , which includes estimated contributions for the pension buyout referenced below. Pension contributions beyond 2017 will be required, but those amounts will vary based upon many factors including, for example, the performance of our pension fund investments during 2017 . In February 2016, the Company launched a voluntary program to buy out active employees and retirees who had earned benefits in the U.S. pension plans. As of March 31, 2017, this program has been substantially completed with cash payments made from pension plan assets to those who elected to take the buyout. In connection with this program the Company contributed $10 million into the pension trust and recognized a non-cash charge of $6 million in the first quarter of 2017. We made postretirement contributions of approximately $2 million during the first three months of 2017 . Based on current actuarial estimates, we believe we will be required to contribute approximately $8 million for the remainder of 2017 . 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 months ended March 31, 2017 and 2016 include the following components: Three Months Ended March 31, 2017 2016 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 actuarial loss included in net periodic pension and postretirement cost $ 4 $ (1 ) $ 3 $ 5 $ (1 ) $ 4 Settlement Charge 6 (2 ) 4 — — — Other comprehensive income – pension benefits $ 10 $ (3 ) $ 7 $ 5 $ (1 ) $ 4 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance improves the presentation of net periodic pension cost and net period postretirement benefit cost. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In November 2016, the FASB issued Accounting Standard Update 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) to eliminate diversity in practice in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued Accounting Standard Update 2016-16, Income Taxes - Intra Entity Transfers of Assets Other Than Inventory (Topic 740). The new standard changes the accounting for income taxes when a company transfers certain tangible and intangible assets, such as equipment or intellectual property, between entities in different tax jurisdictions. The new standard does not change the current accounting for the income taxes related to transfers of inventory. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued Accounting Standard Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard for the first quarter of 2017. The impact of the adoption resulted in the following: • We recorded a tax benefit of $2 million within income tax expense for the three months ended March 31, 2017 related to the excess tax benefit on share-based awards. Prior to adoption, this amount would have been recorded as an addition of additional paid-in capital. • We no longer reclassify the excess tax benefit from operating activities to financing activities in the statement of cash flows. Cash payments made to the taxing authorities on employees' behalf for withheld shares are presented as financing activities. Tenneco elected to apply this change in presentation retrospectively and thus prior periods have been adjusted. The amounts were not material. • We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended March 31, 2017 . The impact was not material. In February 2016, the FASB issued Accounting Standard Update 2016-02, Leases (Topic 842). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flow arising from a lease. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We will adopt this amendment on January 1, 2019. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. 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 approved 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. The guidance permits the use of either the retrospective or modified retrospective (cumulative effect) transition method and we have not yet selected which transition method we will apply. We have established a cross-functional coordinated team to implement the guidance related to the recognition of revenue from contracts with customers. We are in the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing the enhanced disclosure requirements of the new guidance. Under current guidance we generally recognize revenue when products are shipped and risk of loss has transferred to the customer. Under the proposed requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment, may require us to recognize revenue prior to the product being shipped to the customer. We are also assessing pricing provisions contained in certain of our customer contracts. Pricing provisions contained in some of our customer contracts represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. In addition, we are evaluating how the new guidance may impact our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production costs. Under the current applicable guidance, these customer reimbursements are recorded as cost recovery offsets; whereas under the new standard these guaranteed recoveries may represent consideration from contracts with customers and be recorded as revenues. We continue to evaluate the impact this guidance will have on our financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In connection with the reportable segment changes announced on February 7, 2017, our Clean Air and Ride Performance product lines in India, which have been reported as part of Europe, South America and India segments, will now be reported with their respective product lines in the Asia Pacific segments. Beginning with the first quarter of 2017, we are organized and manage our business along our two major product lines (clean air and ride performance) and three geographic areas (North America; Europe and South America; Asia Pacific), resulting in six operating segments (North America Clean Air, North America Ride Performance, Europe and South America Clean Air, Europe and South America 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. Prior period segment information has been revised to reflect our new reporting segments. The following table summarizes certain Tenneco Inc. segment information: Clean Air Division Ride Performance Division North America Europe & South America Asia Pacific North America Europe & South America Asia Pacific Other Reclass & Elims Total (Millions) At March 31, 2017 and for the Three Months Ended March 31, 2017 Revenues from external customers $ 816 $ 538 $ 277 $ 311 $ 243 $ 107 $ — $ — $ 2,292 Intersegment revenues 4 20 1 3 9 14 — (51 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 50 21 32 33 6 17 (38 ) — 121 Total assets 1,464 797 720 749 522 355 — 35 4,642 At March 31, 2016 and for the Three Months Ended March 31, 2016 Revenues from external customers 765 471 279 323 210 88 — — 2,136 Intersegment revenues 3 22 — 2 7 13 — (47 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 61 15 35 42 (6 ) 13 (36 ) — 124 Total assets 1,352 776 638 779 448 324 — 34 4,351 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
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 2024 and 2026 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. The accompanying supplemental guarantor condensed consolidating financial statements have been updated to reflect the revision as described in Note 14. 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 March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 1,018 $ 1,274 $ — $ — $ 2,292 Affiliated companies 144 182 — (326 ) — 1,162 1,456 — (326 ) 2,292 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 994 1,263 — (326 ) 1,931 Engineering, research, and development 20 19 — — 39 Selling, general, and administrative 75 73 — — 148 Depreciation and amortization of other intangibles 21 31 — — 52 1,110 1,386 — (326 ) 2,170 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (8 ) 8 — — — (8 ) 7 — — (1 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 44 77 — — 121 Interest expense — External (net of interest capitalized) (1 ) — 16 — 15 Affiliated companies (net of interest income) (3 ) 1 2 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 48 76 (18 ) — 106 Income tax expense (benefit) 8 25 — — 33 Equity in net income (loss) from affiliated companies 27 — 77 (104 ) — Net income (loss) 67 51 59 (104 ) 73 Less: Net income attributable to noncontrolling interests — 14 — — 14 Net income (loss) attributable to Tenneco Inc. $ 67 $ 37 $ 59 $ (104 ) $ 59 Comprehensive income (loss) attributable to Tenneco Inc. $ 67 $ 37 $ 87 $ (104 ) $ 87 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 996 $ 1,140 $ — $ — $ 2,136 Affiliated companies 127 190 — (317 ) — 1,123 1,330 — (317 ) 2,136 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 949 1,138 — (317 ) 1,770 Engineering, research, and development 20 19 — — 39 Selling, general, and administrative 68 79 — — 147 Depreciation and amortization of other intangibles 21 33 — — 54 1,058 1,269 — (317 ) 2,010 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (6 ) 5 — — (1 ) (6 ) 4 — — (2 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 59 65 — — 124 Interest expense — External (net of interest capitalized) — — 18 — 18 Affiliated companies (net of interest income) (3 ) 2 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 62 63 (19 ) — 106 Income tax expense 13 21 — — 34 Equity in net income (loss) from affiliated companies 27 — 76 (103 ) — Net income (loss) 76 42 57 (103 ) 72 Less: Net income attributable to noncontrolling interests — 15 — — 15 Net income (loss) attributable to Tenneco Inc. $ 76 $ 27 $ 57 $ (103 ) $ 57 Comprehensive income (loss) attributable to Tenneco Inc. $ 76 $ 27 $ 84 $ (103 ) $ 84 BALANCE SHEET March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 6 $ 335 $ — $ — $ 341 Restricted cash — 3 — — 3 Receivables, net 453 1,545 — (556 ) 1,442 Inventories 364 418 — — 782 Prepayments and other 89 199 — — 288 Total current assets 912 2,500 — (556 ) 2,856 Other assets: Investment in affiliated companies 1,224 — 1,315 (2,539 ) — Notes and advances receivable from affiliates 950 17,372 4,844 (23,166 ) — Long-term receivables, net 8 1 — — 9 Goodwill 22 36 — — 58 Intangibles, net 7 11 — — 18 Deferred income taxes 40 22 127 — 189 Other 45 55 7 — 107 2,296 17,497 6,293 (25,705 ) 381 Plant, property, and equipment, at cost 1,397 2,254 — — 3,651 Less — Accumulated depreciation and amortization (901 ) (1,345 ) — — (2,246 ) 496 909 — — 1,405 Total assets $ 3,704 $ 20,906 $ 6,293 $ (26,261 ) $ 4,642 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 98 $ 15 $ — $ 113 Short-term debt — affiliated 147 229 — (376 ) — Accounts payable 618 1,091 — (115 ) 1,594 Accrued taxes 9 32 — — 41 Other 134 254 10 (65 ) 333 Total current liabilities 908 1,704 25 (556 ) 2,081 Long-term debt — non-affiliated — 12 1,394 — 1,406 Long-term debt — affiliated 1,612 17,317 4,237 (23,166 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 279 130 — — 409 Commitments and contingencies Total liabilities 2,799 19,170 5,656 (23,722 ) 3,903 Redeemable noncontrolling interests — 48 — — 48 Tenneco Inc. shareholders’ equity 905 1,634 637 (2,539 ) 637 Noncontrolling interests — 54 — — 54 Total equity 905 1,688 637 (2,539 ) 691 Total liabilities, redeemable noncontrolling interests and equity $ 3,704 $ 20,906 $ 6,293 $ (26,261 ) $ 4,642 BALANCE SHEET December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 338 $ — $ — $ 347 Restricted cash — 2 — — 2 Receivables, net 386 1,412 — (504 ) 1,294 Inventories 361 369 — — 730 Prepayments and other 62 167 — — 229 Total current assets 818 2,288 — (504 ) 2,602 Other assets: Investment in affiliated companies 1,211 — 1,207 (2,418 ) — Notes and advances receivable from affiliates 939 16,529 4,781 (22,249 ) — Long-term receivables, net 9 — — — 9 Goodwill 22 35 — — 57 Intangibles, net 7 12 — — 19 Deferred income taxes 47 23 129 — 199 Other 46 49 8 — 103 2,281 16,648 6,125 (24,667 ) 387 Plant, property, and equipment, at cost 1,371 2,177 — — 3,548 Less — Accumulated depreciation and amortization (895 ) (1,296 ) — — (2,191 ) 476 881 — — 1,357 Total assets $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 75 $ 15 $ — $ 90 Short-term debt — affiliated 167 187 — (354 ) — Accounts payable 562 1,027 — (88 ) 1,501 Accrued taxes 4 35 — — 39 Other 147 243 15 (62 ) 343 Total current liabilities 880 1,567 30 (504 ) 1,973 Long-term debt — non-affiliated — 12 1,282 — 1,294 Long-term debt — affiliated 1,543 16,466 4,240 (22,249 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 297 115 — — 412 Commitments and contingencies Total liabilities 2,720 18,167 5,552 (22,753 ) 3,686 Redeemable noncontrolling interests — 40 — — 40 Tenneco Inc. shareholders’ equity 855 1,563 573 (2,418 ) 573 Noncontrolling interests — 47 — — 47 Total equity 855 1,610 573 (2,418 ) 620 Total liabilities, redeemable noncontrolling interests and equity $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 STATEMENT OF CASH FLOWS Three Months Ended March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (41 ) $ 46 $ (14 ) $ — $ (9 ) Investing Activities Proceeds from sale of assets 2 1 — — 3 Cash payments for plant, property, and equipment (42 ) (61 ) — — (103 ) Cash payments for software related intangible assets (2 ) (4 ) — — (6 ) Changes in restricted cash — (1 ) — — (1 ) Net cash used by investing activities (42 ) (65 ) — — (107 ) Financing Activities Repurchase of common shares — — (3 ) — (3 ) Cash dividends (13 ) (13 ) Retirement of long-term debt — — (6 ) — (6 ) Purchase of common stock under the share repurchase program — — (16 ) — (16 ) Net increase in bank overdrafts — 3 — — 3 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 — 20 97 — 117 Net increase in short-term borrowings secured by accounts receivables — — 20 — 20 Intercompany dividend payments and net increase (decrease) in intercompany obligations 80 (15 ) (65 ) — — Net cash provided by financing activities 80 8 14 — 102 Effect of foreign exchange rate changes on cash and cash equivalents — 8 — — 8 Decrease in cash and cash equivalents (3 ) (3 ) — — (6 ) Cash and cash equivalents, January 1 9 338 — — 347 Cash and cash equivalents, March 31 (Note) $ 6 $ 335 $ — $ — $ 341 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 March 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (212 ) $ 180 $ 3 $ — $ (29 ) Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (13 ) (55 ) — — (68 ) Cash payments for software related intangible assets (2 ) (4 ) — — (6 ) Changes in restricted cash — (1 ) (1 ) Net cash used by investing activities (15 ) (59 ) — — (74 ) Financing Activities Issuance of common shares — — (2 ) — (2 ) Retirement of long-term debt — — (4 ) — (4 ) Issuance of long-term debt — 5 — — 5 Purchase of common stock under the share repurchase program — — (16 ) — (16 ) Net decrease in bank overdrafts — 7 — — 7 Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt — 8 185 — 193 Intercompany dividend payments and net increase (decrease) in intercompany obligations 229 (63 ) (166 ) — — Net cash provided (used) by financing activities 229 (43 ) (3 ) — 183 Effect of foreign exchange rate changes on cash and cash equivalents — 7 — — 7 Decrease in cash and cash equivalents 2 85 — — 87 Cash and cash equivalents, January 1 2 285 — — 287 Cash and cash equivalents, March 31 (Note) $ 4 $ 370 $ — $ — $ 374 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
Revision of Previously Issued F
Revision of Previously Issued Financial Statements Revision of Previously Issued Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements For the periods from April 1, 2013 through March 31, 2017, we identified approximately $34 million in lump sum payments from our suppliers that were incorrectly recorded upon receipt as a reduction to cost of sales. These payments should have been deferred and amortized over the life of the underlying supplier agreements. The deferred credit balance related to these payments was $29 million and $23 million at March 31, 2017 and December 31, 2016, respectively. In addition, we identified approximately $7 million in cost of sales that should have been accrued in prior periods for substrate liabilities, impacting the periods from January 1, 2016 through March 31, 2017. We evaluated the impact of these items on prior periods under the guidance of SEC Staff Accounting Bulletin (SAB) No. 99, “Materiality” and determined that the amounts were not material to previously issued financial statements. We also evaluated the impact of correcting these items through a cumulative adjustment to our financial statements and concluded that based on the guidance within SEC SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” it was appropriate to revise our previously issued financial statements to reflect this correction. As a result, we have revised and will revise for annual and interim periods in future filings, for certain amounts in the consolidated financial statements and related notes in order to correct these errors, which are described further below. The following tables present the impact of this revision on our condensed consolidated balance sheets as of December 31, 2016 and March 31, 2017, our condensed consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions Except Per Share Amounts) Condensed Consolidated Income Statement Cost of sales (exclusive of depreciation and amortization) $ 1,925 $ 6 $ 1,931 Earnings before interest expense, income taxes, and noncontrolling interests 127 (6 ) 121 Earnings before income taxes and noncontrolling interests 112 (6 ) 106 Income tax expense 34 (1 ) 33 Net income 78 (5 ) 73 Less: Net income attributable to noncontrolling interests 15 (1 ) 14 Net income attributable to Tenneco Inc. $ 63 $ (4 ) $ 59 Earnings per share Basic earnings per share of common stock $ 1.17 $ (0.07 ) $ 1.10 Diluted earnings per share of common stock 1.16 (0.07 ) 1.09 Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Comprehensive Income Tenneco Inc. Net Income $ 63 $ (4 ) $ 59 Comprehensive Income $ 91 $ (4 ) $ 87 Noncontrolling Interests Net Income $ 15 $ (1 ) $ 14 Comprehensive Income $ 16 $ (1 ) $ 15 Total Net Income $ 78 $ (5 ) $ 73 Comprehensive Income $ 107 $ (5 ) $ 102 March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Balance Sheet Deferred income taxes $ 184 $ 5 $ 189 Total assets 4,637 5 4,642 Trade payables 1,587 7 1,594 Accrued taxes 44 (3 ) 41 Total current liabilities 2,077 4 2,081 Deferred credits and other liabilities 121 29 150 Total liabilities 3,870 33 3,903 Redeemable noncontrolling interests 52 (4 ) 48 Retained earnings (accumulated deficit) (1,035 ) (19 ) (1,054 ) Total Tenneco Inc. shareholders’ equity 656 (19 ) 637 Noncontrolling interests 59 (5 ) 54 Total equity 715 (24 ) 691 Total liabilities, redeemable noncontrolling interests and equity 4,637 5 4,642 December 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Balance Sheet Deferred income taxes $ 195 $ 4 $ 199 Total assets 4,342 4 4,346 Trade payables 1,496 5 1,501 Accrued taxes 41 (2 ) 39 Total current liabilities 1,970 3 1,973 Deferred credits and other liabilities 116 23 139 Total liabilities 3,660 26 3,686 Redeemable noncontrolling interests 43 (3 ) 40 Retained earnings (accumulated deficit) (1,085 ) (15 ) (1,100 ) Total Tenneco Inc. shareholders’ equity 588 (15 ) 573 Noncontrolling interests 51 (4 ) 47 Total equity 639 (19 ) 620 Total liabilities, redeemable noncontrolling interests and equity 4,342 4 4,346 Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Cash Flow * Net income $ 78 $ (5 ) $ 73 Deferred income taxes 8 (1 ) 7 Increase (decrease) in accounts payable 91 2 93 Changes in long-term liabilities 1 4 5 Three Months Ended March 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Cash Flow * Increase (decrease) in accounts payable 56 1 57 Changes in long-term liabilities (5 ) (1 ) (6 ) * No change to net cash used by operating activities. Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statements of Changes in Shareholders' Equity Retained earnings (accumulated deficit) Balance January 1 $ (1,085 ) $ (15 ) $ (1,100 ) Net income attributable to Tenneco Inc. 63 (4 ) 59 Cash dividends declared (13 ) — (13 ) Balance March 31 $ (1,035 ) $ (19 ) $ (1,054 ) Total Tenneco Inc. shareholders' equity $ 656 $ (19 ) $ 637 Noncontrolling interests: Balance January 1 $ 51 $ (4 ) $ 47 Net income 8 (1 ) 7 Balance March 31 $ 59 $ (5 ) $ 54 Total Equity $ 715 $ (24 ) $ 691 Three Months Ended March 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statements of Changes in Shareholders' Equity Retained earnings (accumulated deficit) Balance January 1 $ (1,448 ) $ (8 ) $ (1,456 ) Net income attributable to Tenneco Inc. 57 — 57 Balance March 31 $ (1,391 ) $ (8 ) $ (1,399 ) Total Tenneco Inc. shareholders' equity $ 505 $ (8 ) $ 497 Noncontrolling interests: Balance January 1 $ 42 $ (3 ) $ 39 Net income 7 1 8 Balance March 31 $ 49 $ (2 ) $ 47 Total Equity $ 554 $ (10 ) $ 544 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance improves the presentation of net periodic pension cost and net period postretirement benefit cost. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In November 2016, the FASB issued Accounting Standard Update 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230) to eliminate diversity in practice in the presentation of restricted cash and restricted cash equivalents in the statement of cash flows. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In October 2016, the FASB issued Accounting Standard Update 2016-16, Income Taxes - Intra Entity Transfers of Assets Other Than Inventory (Topic 740). The new standard changes the accounting for income taxes when a company transfers certain tangible and intangible assets, such as equipment or intellectual property, between entities in different tax jurisdictions. The new standard does not change the current accounting for the income taxes related to transfers of inventory. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued Accounting Standard Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this update involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We adopted this standard for the first quarter of 2017. The impact of the adoption resulted in the following: • We recorded a tax benefit of $2 million within income tax expense for the three months ended March 31, 2017 related to the excess tax benefit on share-based awards. Prior to adoption, this amount would have been recorded as an addition of additional paid-in capital. • We no longer reclassify the excess tax benefit from operating activities to financing activities in the statement of cash flows. Cash payments made to the taxing authorities on employees' behalf for withheld shares are presented as financing activities. Tenneco elected to apply this change in presentation retrospectively and thus prior periods have been adjusted. The amounts were not material. • We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended March 31, 2017 . The impact was not material. In February 2016, the FASB issued Accounting Standard Update 2016-02, Leases (Topic 842). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flow arising from a lease. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We will adopt this amendment on January 1, 2019. We are currently evaluating the potential impact of this new guidance on our consolidated financial statements. 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 approved 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. The guidance permits the use of either the retrospective or modified retrospective (cumulative effect) transition method and we have not yet selected which transition method we will apply. We have established a cross-functional coordinated team to implement the guidance related to the recognition of revenue from contracts with customers. We are in the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing the enhanced disclosure requirements of the new guidance. Under current guidance we generally recognize revenue when products are shipped and risk of loss has transferred to the customer. Under the proposed requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment, may require us to recognize revenue prior to the product being shipped to the customer. We are also assessing pricing provisions contained in certain of our customer contracts. Pricing provisions contained in some of our customer contracts represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. In addition, we are evaluating how the new guidance may impact our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production costs. Under the current applicable guidance, these customer reimbursements are recorded as cost recovery offsets; whereas under the new standard these guaranteed recoveries may represent consideration from contracts with customers and be recorded as revenues. We continue to evaluate the impact this guidance will have on our financial statements. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying and Estimated Fair Value | The net carrying and estimated fair values of our financial instruments by class at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Net Carrying Amount Fair Value Net Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,409 $ 1,418 $ 1,297 $ 1,311 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 March 31, 2017 (all of which mature in 2017): Notional Amount in Foreign Currency (Millions) British pounds —Purchase 19 —Sell (9 ) Canadian dollars —Purchase 2 —Sell (4 ) European euro —Purchase 10 —Sell (5 ) Japanese yen —Purchase 89 —Sell (90 ) South African rand —Sell (7 ) U.S. dollars —Purchase 21 —Sell (35 ) |
Long-Term Debt and Financing 23
Long-Term Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financial Ratios under Senior Credit Facility | The financial ratios required under the senior credit facility, and the actual ratios we calculated for the first quarter of 2017, are as follows (the ratios in the table reflect the revisions made to the financial statements in this Form 10-Q/A; these revisions would result in immaterial changes to the actual ratios reported to our lenders in prior periods, with such changes being less than .05 and .36 to the leverage ratio and interest coverage ratio, respectively): Quarter Ended March 31, 2017 Required Actual Leverage Ratio (maximum) 3.50 1.62 Interest Coverage Ratio (minimum) 2.75 15.38 |
Restructuring and Other Charg24
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2017 Impact of Exchange Rates March 31, 2017 (Millions) Employee Severance, Termination Benefits and Other Related Costs $15 13 (6 ) — $22 |
Environmental Matters, Litiga25
Environmental Matters, Litigation and Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Environmental Matters, Litigation and Product Warranties [Abstract] | |
Warranty Accrual Rollforward | Below is a table that shows the activity in the warranty accrual accounts: Three Months Ended March 31, 2017 2016 (Millions) Beginning Balance January 1, $ 20 $ 23 Accruals related to product warranties 3 2 Reductions for payments made (3 ) (1 ) Ending Balance March 31, $ 20 $ 24 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 Three Months Ended March 31, 2016 (Millions Except Share and Per Share Amounts) Basic earnings per share — Net income attributable to Tenneco Inc. $ 59 $ 57 Weighted Average shares of common stock outstanding 53,856,352 57,115,496 Earnings per share of common stock $ 1.10 $ 1.00 Diluted earnings per share — Net income attributable to Tenneco Inc. $ 59 $ 57 Weighted Average shares of common stock outstanding 53,856,352 57,115,496 Effect of dilutive securities: Restricted stock 145,999 48,603 Stock options 229,408 281,842 Weighted Average shares of common stock outstanding including dilutive securities 54,231,759 57,445,941 Earnings per share of common stock $ 1.09 $ 0.99 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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: Three Months Ended March 31, 2017 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options Outstanding, January 1, 2017 606,525 $ 38.54 2.6 $ 12 Canceled (2,214 ) 56.23 — Forfeited (1,107 ) 56.23 — Exercised (164,863 ) 33.70 5 Outstanding, March 31, 2017 438,341 $ 40.22 2.6 $ 11 |
Nonvested Restricted Shares | Restricted Stock — The following table reflects the status for all nonvested restricted shares for the period indicated: Three Months Ended March 31, 2017 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2017 591,416 $ 44.63 Granted 182,543 68.04 Vested (261,003 ) 50.95 Forfeited (65,354 ) 53.12 Nonvested balance at March 31, 2017 447,602 $ 49.25 |
Pension Plans, Postretirement28
Pension Plans, Postretirement and Other Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, Pension Postretirement 2017 2016 2017 2016 US Foreign US Foreign US US (Millions) Service cost — benefits earned during the period $ — $ 2 $ — $ 2 $ — $ — Interest cost 3 3 4 4 1 1 Expected return on plan assets (4 ) (4 ) (6 ) (5 ) — — Net amortization: Actuarial loss 1 2 2 2 1 1 Net pension and postretirement costs $ — $ 3 $ — $ 3 $ 2 $ 2 |
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 months ended March 31, 2017 and 2016 include the following components: Three Months Ended March 31, 2017 2016 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 actuarial loss included in net periodic pension and postretirement cost $ 4 $ (1 ) $ 3 $ 5 $ (1 ) $ 4 Settlement Charge 6 (2 ) 4 — — — Other comprehensive income – pension benefits $ 10 $ (3 ) $ 7 $ 5 $ (1 ) $ 4 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The following table summarizes certain Tenneco Inc. segment information: Clean Air Division Ride Performance Division North America Europe & South America Asia Pacific North America Europe & South America Asia Pacific Other Reclass & Elims Total (Millions) At March 31, 2017 and for the Three Months Ended March 31, 2017 Revenues from external customers $ 816 $ 538 $ 277 $ 311 $ 243 $ 107 $ — $ — $ 2,292 Intersegment revenues 4 20 1 3 9 14 — (51 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 50 21 32 33 6 17 (38 ) — 121 Total assets 1,464 797 720 749 522 355 — 35 4,642 At March 31, 2016 and for the Three Months Ended March 31, 2016 Revenues from external customers 765 471 279 323 210 88 — — 2,136 Intersegment revenues 3 22 — 2 7 13 — (47 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 61 15 35 42 (6 ) 13 (36 ) — 124 Total assets 1,352 776 638 779 448 324 — 34 4,351 |
Supplemental Guarantor Conden30
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statement of Comprehensive Income (Loss) | STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 1,018 $ 1,274 $ — $ — $ 2,292 Affiliated companies 144 182 — (326 ) — 1,162 1,456 — (326 ) 2,292 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 994 1,263 — (326 ) 1,931 Engineering, research, and development 20 19 — — 39 Selling, general, and administrative 75 73 — — 148 Depreciation and amortization of other intangibles 21 31 — — 52 1,110 1,386 — (326 ) 2,170 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (8 ) 8 — — — (8 ) 7 — — (1 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 44 77 — — 121 Interest expense — External (net of interest capitalized) (1 ) — 16 — 15 Affiliated companies (net of interest income) (3 ) 1 2 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 48 76 (18 ) — 106 Income tax expense (benefit) 8 25 — — 33 Equity in net income (loss) from affiliated companies 27 — 77 (104 ) — Net income (loss) 67 51 59 (104 ) 73 Less: Net income attributable to noncontrolling interests — 14 — — 14 Net income (loss) attributable to Tenneco Inc. $ 67 $ 37 $ 59 $ (104 ) $ 59 Comprehensive income (loss) attributable to Tenneco Inc. $ 67 $ 37 $ 87 $ (104 ) $ 87 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended March 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues — External $ 996 $ 1,140 $ — $ — $ 2,136 Affiliated companies 127 190 — (317 ) — 1,123 1,330 — (317 ) 2,136 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 949 1,138 — (317 ) 1,770 Engineering, research, and development 20 19 — — 39 Selling, general, and administrative 68 79 — — 147 Depreciation and amortization of other intangibles 21 33 — — 54 1,058 1,269 — (317 ) 2,010 Other income (expense) Loss on sale of receivables — (1 ) — — (1 ) Other income (expense) (6 ) 5 — — (1 ) (6 ) 4 — — (2 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies 59 65 — — 124 Interest expense — External (net of interest capitalized) — — 18 — 18 Affiliated companies (net of interest income) (3 ) 2 1 — — Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies 62 63 (19 ) — 106 Income tax expense 13 21 — — 34 Equity in net income (loss) from affiliated companies 27 — 76 (103 ) — Net income (loss) 76 42 57 (103 ) 72 Less: Net income attributable to noncontrolling interests — 15 — — 15 Net income (loss) attributable to Tenneco Inc. $ 76 $ 27 $ 57 $ (103 ) $ 57 Comprehensive income (loss) attributable to Tenneco Inc. $ 76 $ 27 $ 84 $ (103 ) $ 84 |
Balance Sheet | BALANCE SHEET March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 6 $ 335 $ — $ — $ 341 Restricted cash — 3 — — 3 Receivables, net 453 1,545 — (556 ) 1,442 Inventories 364 418 — — 782 Prepayments and other 89 199 — — 288 Total current assets 912 2,500 — (556 ) 2,856 Other assets: Investment in affiliated companies 1,224 — 1,315 (2,539 ) — Notes and advances receivable from affiliates 950 17,372 4,844 (23,166 ) — Long-term receivables, net 8 1 — — 9 Goodwill 22 36 — — 58 Intangibles, net 7 11 — — 18 Deferred income taxes 40 22 127 — 189 Other 45 55 7 — 107 2,296 17,497 6,293 (25,705 ) 381 Plant, property, and equipment, at cost 1,397 2,254 — — 3,651 Less — Accumulated depreciation and amortization (901 ) (1,345 ) — — (2,246 ) 496 909 — — 1,405 Total assets $ 3,704 $ 20,906 $ 6,293 $ (26,261 ) $ 4,642 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 98 $ 15 $ — $ 113 Short-term debt — affiliated 147 229 — (376 ) — Accounts payable 618 1,091 — (115 ) 1,594 Accrued taxes 9 32 — — 41 Other 134 254 10 (65 ) 333 Total current liabilities 908 1,704 25 (556 ) 2,081 Long-term debt — non-affiliated — 12 1,394 — 1,406 Long-term debt — affiliated 1,612 17,317 4,237 (23,166 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 279 130 — — 409 Commitments and contingencies Total liabilities 2,799 19,170 5,656 (23,722 ) 3,903 Redeemable noncontrolling interests — 48 — — 48 Tenneco Inc. shareholders’ equity 905 1,634 637 (2,539 ) 637 Noncontrolling interests — 54 — — 54 Total equity 905 1,688 637 (2,539 ) 691 Total liabilities, redeemable noncontrolling interests and equity $ 3,704 $ 20,906 $ 6,293 $ (26,261 ) $ 4,642 BALANCE SHEET December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 338 $ — $ — $ 347 Restricted cash — 2 — — 2 Receivables, net 386 1,412 — (504 ) 1,294 Inventories 361 369 — — 730 Prepayments and other 62 167 — — 229 Total current assets 818 2,288 — (504 ) 2,602 Other assets: Investment in affiliated companies 1,211 — 1,207 (2,418 ) — Notes and advances receivable from affiliates 939 16,529 4,781 (22,249 ) — Long-term receivables, net 9 — — — 9 Goodwill 22 35 — — 57 Intangibles, net 7 12 — — 19 Deferred income taxes 47 23 129 — 199 Other 46 49 8 — 103 2,281 16,648 6,125 (24,667 ) 387 Plant, property, and equipment, at cost 1,371 2,177 — — 3,548 Less — Accumulated depreciation and amortization (895 ) (1,296 ) — — (2,191 ) 476 881 — — 1,357 Total assets $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt — non-affiliated $ — $ 75 $ 15 $ — $ 90 Short-term debt — affiliated 167 187 — (354 ) — Accounts payable 562 1,027 — (88 ) 1,501 Accrued taxes 4 35 — — 39 Other 147 243 15 (62 ) 343 Total current liabilities 880 1,567 30 (504 ) 1,973 Long-term debt — non-affiliated — 12 1,282 — 1,294 Long-term debt — affiliated 1,543 16,466 4,240 (22,249 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 297 115 — — 412 Commitments and contingencies Total liabilities 2,720 18,167 5,552 (22,753 ) 3,686 Redeemable noncontrolling interests — 40 — — 40 Tenneco Inc. shareholders’ equity 855 1,563 573 (2,418 ) 573 Noncontrolling interests — 47 — — 47 Total equity 855 1,610 573 (2,418 ) 620 Total liabilities, redeemable noncontrolling interests and equity $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 |
Statement of Cash Flows | STATEMENT OF CASH FLOWS Three Months Ended March 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (41 ) $ 46 $ (14 ) $ — $ (9 ) Investing Activities Proceeds from sale of assets 2 1 — — 3 Cash payments for plant, property, and equipment (42 ) (61 ) — — (103 ) Cash payments for software related intangible assets (2 ) (4 ) — — (6 ) Changes in restricted cash — (1 ) — — (1 ) Net cash used by investing activities (42 ) (65 ) — — (107 ) Financing Activities Repurchase of common shares — — (3 ) — (3 ) Cash dividends (13 ) (13 ) Retirement of long-term debt — — (6 ) — (6 ) Purchase of common stock under the share repurchase program — — (16 ) — (16 ) Net increase in bank overdrafts — 3 — — 3 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 — 20 97 — 117 Net increase in short-term borrowings secured by accounts receivables — — 20 — 20 Intercompany dividend payments and net increase (decrease) in intercompany obligations 80 (15 ) (65 ) — — Net cash provided by financing activities 80 8 14 — 102 Effect of foreign exchange rate changes on cash and cash equivalents — 8 — — 8 Decrease in cash and cash equivalents (3 ) (3 ) — — (6 ) Cash and cash equivalents, January 1 9 338 — — 347 Cash and cash equivalents, March 31 (Note) $ 6 $ 335 $ — $ — $ 341 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 March 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ (212 ) $ 180 $ 3 $ — $ (29 ) Investing Activities Proceeds from sale of assets — 1 — — 1 Cash payments for plant, property, and equipment (13 ) (55 ) — — (68 ) Cash payments for software related intangible assets (2 ) (4 ) — — (6 ) Changes in restricted cash — (1 ) (1 ) Net cash used by investing activities (15 ) (59 ) — — (74 ) Financing Activities Issuance of common shares — — (2 ) — (2 ) Retirement of long-term debt — — (4 ) — (4 ) Issuance of long-term debt — 5 — — 5 Purchase of common stock under the share repurchase program — — (16 ) — (16 ) Net decrease in bank overdrafts — 7 — — 7 Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt — 8 185 — 193 Intercompany dividend payments and net increase (decrease) in intercompany obligations 229 (63 ) (166 ) — — Net cash provided (used) by financing activities 229 (43 ) (3 ) — 183 Effect of foreign exchange rate changes on cash and cash equivalents — 7 — — 7 Decrease in cash and cash equivalents 2 85 — — 87 Cash and cash equivalents, January 1 2 285 — — 287 Cash and cash equivalents, March 31 (Note) $ 4 $ 370 $ — $ — $ 374 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
Revision of Previously Issued31
Revision of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables present the impact of this revision on our condensed consolidated balance sheets as of December 31, 2016 and March 31, 2017, our condensed consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions Except Per Share Amounts) Condensed Consolidated Income Statement Cost of sales (exclusive of depreciation and amortization) $ 1,925 $ 6 $ 1,931 Earnings before interest expense, income taxes, and noncontrolling interests 127 (6 ) 121 Earnings before income taxes and noncontrolling interests 112 (6 ) 106 Income tax expense 34 (1 ) 33 Net income 78 (5 ) 73 Less: Net income attributable to noncontrolling interests 15 (1 ) 14 Net income attributable to Tenneco Inc. $ 63 $ (4 ) $ 59 Earnings per share Basic earnings per share of common stock $ 1.17 $ (0.07 ) $ 1.10 Diluted earnings per share of common stock 1.16 (0.07 ) 1.09 Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Comprehensive Income Tenneco Inc. Net Income $ 63 $ (4 ) $ 59 Comprehensive Income $ 91 $ (4 ) $ 87 Noncontrolling Interests Net Income $ 15 $ (1 ) $ 14 Comprehensive Income $ 16 $ (1 ) $ 15 Total Net Income $ 78 $ (5 ) $ 73 Comprehensive Income $ 107 $ (5 ) $ 102 March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Balance Sheet Deferred income taxes $ 184 $ 5 $ 189 Total assets 4,637 5 4,642 Trade payables 1,587 7 1,594 Accrued taxes 44 (3 ) 41 Total current liabilities 2,077 4 2,081 Deferred credits and other liabilities 121 29 150 Total liabilities 3,870 33 3,903 Redeemable noncontrolling interests 52 (4 ) 48 Retained earnings (accumulated deficit) (1,035 ) (19 ) (1,054 ) Total Tenneco Inc. shareholders’ equity 656 (19 ) 637 Noncontrolling interests 59 (5 ) 54 Total equity 715 (24 ) 691 Total liabilities, redeemable noncontrolling interests and equity 4,637 5 4,642 December 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Balance Sheet Deferred income taxes $ 195 $ 4 $ 199 Total assets 4,342 4 4,346 Trade payables 1,496 5 1,501 Accrued taxes 41 (2 ) 39 Total current liabilities 1,970 3 1,973 Deferred credits and other liabilities 116 23 139 Total liabilities 3,660 26 3,686 Redeemable noncontrolling interests 43 (3 ) 40 Retained earnings (accumulated deficit) (1,085 ) (15 ) (1,100 ) Total Tenneco Inc. shareholders’ equity 588 (15 ) 573 Noncontrolling interests 51 (4 ) 47 Total equity 639 (19 ) 620 Total liabilities, redeemable noncontrolling interests and equity 4,342 4 4,346 Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Cash Flow * Net income $ 78 $ (5 ) $ 73 Deferred income taxes 8 (1 ) 7 Increase (decrease) in accounts payable 91 2 93 Changes in long-term liabilities 1 4 5 Three Months Ended March 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statement of Cash Flow * Increase (decrease) in accounts payable 56 1 57 Changes in long-term liabilities (5 ) (1 ) (6 ) * No change to net cash used by operating activities. Three Months Ended March 31, 2017 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statements of Changes in Shareholders' Equity Retained earnings (accumulated deficit) Balance January 1 $ (1,085 ) $ (15 ) $ (1,100 ) Net income attributable to Tenneco Inc. 63 (4 ) 59 Cash dividends declared (13 ) — (13 ) Balance March 31 $ (1,035 ) $ (19 ) $ (1,054 ) Total Tenneco Inc. shareholders' equity $ 656 $ (19 ) $ 637 Noncontrolling interests: Balance January 1 $ 51 $ (4 ) $ 47 Net income 8 (1 ) 7 Balance March 31 $ 59 $ (5 ) $ 54 Total Equity $ 715 $ (24 ) $ 691 Three Months Ended March 31, 2016 As Previously Reported Adjustment As Revised (Millions) Condensed Consolidated Statements of Changes in Shareholders' Equity Retained earnings (accumulated deficit) Balance January 1 $ (1,448 ) $ (8 ) $ (1,456 ) Net income attributable to Tenneco Inc. 57 — 57 Balance March 31 $ (1,391 ) $ (8 ) $ (1,399 ) Total Tenneco Inc. shareholders' equity $ 505 $ (8 ) $ 497 Noncontrolling interests: Balance January 1 $ 42 $ (3 ) $ 39 Net income 7 1 8 Balance March 31 $ 49 $ (2 ) $ 47 Total Equity $ 554 $ (10 ) $ 544 |
Consolidation and Presentation
Consolidation and Presentation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 15 Months Ended | 48 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Cost of sales | $ 1,931 | $ 1,770 | |||
In process tools and dies built for original equipment customers | 126 | $ 126 | $ 126 | $ 97 | |
Accrued compensation | 88 | 88 | 88 | 99 | |
Bank overdrafts | $ 30 | $ 30 | $ 30 | 27 | |
Minimum | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Equity method ownership percentage | 20.00% | 20.00% | 20.00% | ||
Maximum | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Equity method ownership percentage | 50.00% | 50.00% | 50.00% | ||
Adjustment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Cost of sales | $ 6 | ||||
Lump Sum Payments Immediately Recognized, Should Have Been Deferred And Amortized | Adjustment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Cost of sales | $ 7 | $ 34 | |||
Deferred charges | $ 29 | 29 | $ 29 | $ 23 | |
AccrualsForSubstrateLiabilitiesAndAssociatedCostOfSales [Member] | Adjustment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Cost of sales | $ 7 |
Financial Instruments - Carryin
Financial Instruments - Carrying and Estimated Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying And Estimated Fair Value [Line Items] | ||
Long-term debt (including current maturities) | $ 1,406 | $ 1,294 |
Net Carrying Amount | ||
Carrying And Estimated Fair Value [Line Items] | ||
Long-term debt (including current maturities) | 1,409 | 1,297 |
Net Carrying Amount | Foreign Exchange Forward Contracts | ||
Instruments with off-balance sheet risk: | ||
Asset derivative contracts | 0 | 0 |
Fair Value | ||
Carrying And Estimated Fair Value [Line Items] | ||
Long-term debt (including current maturities) | 1,418 | 1,311 |
Fair Value | Foreign Exchange Forward Contracts | ||
Instruments with off-balance sheet risk: | ||
Asset derivative contracts | $ 0 | $ 0 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Long Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | $ 721 | $ 725 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | 682 | 571 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | $ 15 | $ 15 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)group_retirement_planperformance_agreement | Dec. 31, 2016USD ($) | |
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 | $ 31,000,000 | |
Negotiable financial instruments not redeemed and not used for vendor payment | 0 | $ 1,000,000 |
Financial Instruments not redeemed and used for vendor payment | 12,000,000 | 12,000,000 |
Negotiable financial instruments received from OE customer not redeemed | 9,000,000 | 5,000,000 |
Other Current Assets | ||
Financial Instruments [Line Items] | ||
Negotiable financial instruments received from OE customer not redeemed | $ 9,000,000 | 5,000,000 |
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 | |
Percentage of the pension obligation recognized for participating employers | 100.00% | |
Pension obligation of participating employers recognized on the balance sheet | $ 18,000,000 | 19,000,000 |
TMEL and Futaba | ||
Financial Instruments [Line Items] | ||
Maximum amount reimbursable under indemnity agreement | 8,000,000 | |
Subsidiaries | CHINA | ||
Financial Instruments [Line Items] | ||
Restricted cash | 2,000,000 | 2,000,000 |
Subsidiaries | BRAZIL | ||
Financial Instruments [Line Items] | ||
Restricted cash | $ 1,000,000 | |
Foreign Exchange Forward Contracts | ||
Financial Instruments [Line Items] | ||
Term of foreign currency forward contracts (less than one year) | 1 year | |
Net asset position | $ 1,000,000 | |
Net liability position | $ 1,000,000 |
Financial Instruments - Summari
Financial Instruments - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Mar. 31, 2017 - Foreign Exchange Forward Contracts € in Millions, ¥ in Millions, £ in Millions, ZAR in Millions, CAD in Millions, $ in Millions | JPY (¥) | CAD | GBP (£) | USD ($) | ZAR | EUR (€) |
British, Pounds | Long | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | £ | £ 19 | |||||
British, Pounds | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | £ | £ 9 | |||||
Canada, Dollars | Long | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | CAD | CAD 2 | |||||
Canada, Dollars | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | CAD | CAD 4 | |||||
European, Euro | Long | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | € | € 10 | |||||
European, Euro | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | € | € 5 | |||||
Japan, Yen | Long | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | ¥ | ¥ 89 | |||||
Japan, Yen | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | ¥ | ¥ 90 | |||||
South Africa, Rand | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | ZAR | ZAR 7 | |||||
U.S., Dollars | Long | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | $ | $ 21 | |||||
U.S., Dollars | Short | ||||||
Derivative [Line Items] | ||||||
Notional Amount in Foreign Currency | $ | $ 35 |
Long-Term Debt and Financing 37
Long-Term Debt and Financing Arrangements - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 18 Months Ended | ||
Dec. 31, 2019USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Maximum percentage of stock of certain first-tier foreign subsidiaries pledged to secure senior credit facility | 66.00% | ||||
Debt outstanding | $ 1,406,000,000 | $ 1,294,000,000 | |||
Leverage Ratio Required (Maximum) for future quarters | 3.50 | ||||
Interest coverage ratio (minimum) | 2.75 | ||||
5.375% Senior Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 225,000,000 | ||||
Debt issuance costs | 4,000,000 | ||||
Debt outstanding | $ 221,000,000 | ||||
Stated percentage | 5.375% | ||||
5% Senior Notes Due July 15 2026 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 500,000,000 | ||||
Debt issuance costs | 8,000,000 | ||||
Debt outstanding | $ 492,000,000 | ||||
Stated percentage | 5.00% | ||||
Other Debt | |||||
Debt Instrument [Line Items] | |||||
Unsecured debt | $ 126,000,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,200,000,000 | ||||
Outstanding debt | 417,000,000 | ||||
Unused borrowing capacity | 783,000,000 | ||||
Revolving Credit Facility | Tranche Term Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 264,000,000 | ||||
Debt issuance costs | 1,000,000 | ||||
Debt outstanding | 263,000,000 | ||||
Principal payments excluded from current liabilities | 24,000,000 | ||||
Revolving Credit Facility | Term loan | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 264,000,000 | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 0 | ||||
Future payment | Revolving Credit Facility | Tranche Term Facility | |||||
Debt Instrument [Line Items] | |||||
Repayment of term loan | $ 195,000,000 | $ 5,625,000 | $ 7,500,000 |
Long-Term Debt and Financing 38
Long-Term Debt and Financing Arrangements - Financial Ratios under Senior Credit Facility (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Required [Member] | |
Financial Ratios Under Senior Credit Facility [Line Items] | |
Leverage Ratio (maximum) | 3.50 |
Interest Coverage Ratio (minimum) | 2.75 |
Actual [Member] | |
Financial Ratios Under Senior Credit Facility [Line Items] | |
Leverage Ratio (maximum) | 1.62 |
Interest Coverage Ratio (minimum) | 15.38 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 33 | $ 34 |
Net tax benefit for prior year tax adjustments | 1 | $ 3 |
Reasonably possible change in unrecognized tax benefits | $ 17 |
Accounts Receivable Securitiz40
Accounts Receivable Securitization - Additional Information (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017USD ($)bank | Mar. 31, 2016USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Transfers of Servicing of Financial Assets [Line Items] | ||||
Number of commercial banks with accounts receivable securitization programs | bank | 3 | |||
Term of commitments (in years) | 1 year | |||
Term of commitments, cancellation period (in days) | 90 days | |||
US | ||||
Transfers of Servicing of Financial Assets [Line Items] | ||||
Outstanding third party investments in securitized accounts receivable bank program | $ 50 | $ 30 | ||
Securitization interest expense | 1 | $ 1 | ||
Europe | ||||
Transfers of Servicing of Financial Assets [Line Items] | ||||
Outstanding third party investments in securitized accounts receivable bank program | 209 | $ 160 | ||
Loss on sale of trade accounts receivable | $ 1 | $ 1 | ||
Financing cost related to sale of securitized receivables percentage | 2.00% | 2.00% | ||
Amended and Extended Accounts Receivable Securitization Program | Subsequent event | ||||
Transfers of Servicing of Financial Assets [Line Items] | ||||
North American program maximum facility size | $ 155 | |||
Additional Financing from second priority facility | $ 25 |
Restructuring and Other Charg41
Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Millions | Dec. 08, 2014 | Jan. 31, 2013 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | $ 15 | $ 14 | $ 36 | |||
Non- cash charges | 1 | 5 | 6 | |||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios | $ 150 | 96 | ||||
Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 11 | 3 | 17 | |||
Selling, General and Administrative Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 3 | 6 | 12 | |||
Engineering Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 2 | 1 | ||||
Other Expense | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 2 | |||||
Depreciation and Amortization | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 1 | 3 | $ 4 | |||
Reduction in Structural Costs | Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring cost | 15 | |||||
Annualized run rate | $ 60 | 49 | ||||
Target cost reduction at current exchange rates | $ 55 | |||||
Restructuring charges | $ 2 | |||||
Quantum Capital Partners A.G. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Manufacturing agreement (in years) | 3 years |
Restructuring and Other Charg42
Restructuring and Other Charges - Roll Forward of Restructuring Reserve (Details) - Severance $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | $ 15 |
Restructuring charges | 13 |
Cash Payments | (6) |
Impact of exchange rates | 0 |
Restructuring Reserve | $ 22 |
Environmental Matters, Litiga43
Environmental Matters, Litigation and Product Warranties - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)defendentcasefederal_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 | 2 |
Portion of environmental remediation costs recorded in deferred credits and other liabilities | $ 13 |
Weighted average discount rate | 2.50% |
Environmental remediation accrual, undiscounted basis | $ 18 |
Environmental Remediation, 2017 | 1 |
Environmental Remediation, 2018 | 1 |
Environmental Remediation, 2019 | 1 |
Environmental Remediation, 2020 | 1 |
Environmental Remediation, 2021 | 1 |
Environmental Remediation, Thereafter | $ 13 |
Number of legal cases (less than) | case | 500 |
Number of defendants in many asbestos related cases | defendent | 100 |
Environmental Matters, Litiga44
Environmental Matters, Litigation and Product Warranties - Warranty Accrual Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning Balance | $ 20 | $ 23 |
Accruals related to product warranties | 3 | 2 |
Reductions for payments made | (3) | (1) |
Ending Balance | $ 20 | $ 24 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic earnings per share — | ||
Net income attributable to Tenneco Inc. | $ 59 | $ 57 |
Weighted Average shares of common stock outstanding (in shares) | 53,856,352 | 57,115,496 |
Earnings Per Share, Basic | $ 1.10 | $ 1 |
Diluted earnings per share — | ||
Net income attributable to Tenneco Inc. | $ 59 | $ 57 |
Weighted Average shares of common stock outstanding (in shares) | 53,856,352 | 57,115,496 |
Effect of dilutive securities: | ||
Restricted stock (in shares) | 145,999 | 48,603 |
Stock options (in shares) | 229,408 | 281,842 |
Weighted Average shares of common stock outstanding including dilutive securities (in shares) | 54,231,759 | 57,445,941 |
Earnings per share of common stock (in dollars per share) | $ 1.09 | $ 0.99 |
Earnings Per Share - Additiona
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive stock options | 834 | 335,826 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) | Feb. 01, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2015 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Share-based compensation, effect on earnings per share, basic (in dollars per share) | $ 0 | $ 0 | |||||||
Share-based compensation, effect on earnings per share, diluted (in dollars per share) | $ 0 | $ 0 | |||||||
Share-based Compensation | $ 9,000,000 | $ 7,000,000 | |||||||
Tax benefit from options exercised | 2,000,000 | 1,000,000 | |||||||
Total fair value of shares vested | $ 2,000,000 | 2,000,000 | |||||||
Treasury stock repurchased | 11,895,938 | 11,895,938 | 11,895,938 | 11,655,938 | |||||
Dividend declared (in dollars per share) | $ 0.25 | ||||||||
Annual divided declared (in dollars per share) | $ 1 | ||||||||
Dividend paid (in dollars per share) | $ 0.25 | ||||||||
Cash dividends paid | $ 13,000,000 | $ 13,000,000 | 0 | ||||||
Equity Option | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Compensation expense | 1,000,000 | 1,000,000 | |||||||
Stock Option | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Cash received from stock option exercises | 6,000,000 | 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] | |||||||||
Unrecognized compensation costs | 33,000,000 | $ 33,000,000 | $ 33,000,000 | ||||||
Unrecognized compensation costs, not yet recognized | 2 years 2 months 12 days | ||||||||
Share-based Compensation | $ 6,000,000 | 7,000,000 | |||||||
Restricted Stock | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Unrecognized compensation costs | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 | ||||||
Unrecognized compensation costs, not yet recognized | 1 year 8 months 12 days | ||||||||
Total fair value of restricted shares vested | $ 13,000,000 | $ 7,000,000 | |||||||
Common Stock | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Amount authorized to repurchase | $ 400,000,000 | $ 350,000,000 | $ 200,000,000 | ||||||
Period of time to repurchase common stock | 3 years | 3 years | |||||||
Previous authorized amount to repurchase | $ 112,000,000 | ||||||||
Number of shares repurchased | 240,000 | 8,700,000 | |||||||
Value of shares reprchased | $ 16,000,000 | $ 454,000,000 |
Common Stock - Stock Options St
Common Stock - Stock Options Status and Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Shares Under Option | ||
Outstanding, Beginning Balance (in shares) | 606,525 | |
Canceled (in shares) | (2,214) | |
Forfeited (in shares) | (1,107) | |
Exercised (in shares) | (164,863) | |
Outstanding, Ending Balance (in shares) | 438,341 | 606,525 |
Weighted Avg. Exercise Prices | ||
Outstanding, Beginning Balance (in dollars per share) | $ 38.54 | |
Canceled (in dollars per share) | 56.23 | |
Forfeited (in dollars per share) | 56.23 | |
Exercised (in dollars per share) | 33.70 | |
Outstanding, Ending Balance (in dollars per share) | $ 40.22 | $ 38.54 |
Weighted Avg. Remaining Life in Years | 2 years 7 months 6 days | 2 years 7 months 6 days |
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 12 | |
Aggregate Intrinsic Value, Exercised | 5 | |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 11 | $ 12 |
Common Stock - Nonvested Restri
Common Stock - Nonvested Restricted Shares (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Nonvested Restricted Shares | |
Nonvested, Beginning Balance (in shares) | shares | 591,416 |
Granted (in shares) | shares | 182,543 |
Vested (in shares) | shares | (261,003) |
Forfeited (in shares) | shares | (65,354) |
Nonvested, Ending Balance (in shares) | shares | 447,602 |
Weighted Avg. Grant Date Fair Value | |
Nonvested, Beginning Balance (in dollars per share) | $ / shares | $ 44.63 |
Granted (in dollars per share) | $ / shares | 68.04 |
Vested (in dollars per share) | $ / shares | 50.95 |
Forfeited (in dollars per share) | $ / shares | 53.12 |
Nonvested, Ending Balance (in dollars per share) | $ / shares | $ 49.25 |
Pension Plans, Postretirement50
Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
US Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost — benefits earned during the period | $ 0 | $ 0 |
Interest cost | 3 | 4 |
Expected return on plan assets | (4) | (6) |
Net amortization: | ||
Actuarial loss | 1 | 2 |
Net pension and postretirement costs | 0 | 0 |
Foreign Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost — benefits earned during the period | 2 | 2 |
Interest cost | 3 | 4 |
Expected return on plan assets | (4) | (5) |
Net amortization: | ||
Actuarial loss | 2 | 2 |
Net pension and postretirement costs | 3 | 3 |
US Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost — benefits earned during the period | 0 | 0 |
Interest cost | 1 | 1 |
Expected return on plan assets | 0 | 0 |
Net amortization: | ||
Actuarial loss | 1 | 1 |
Net pension and postretirement costs | $ 2 | $ 2 |
Pension Plans, Postretirement51
Pension Plans, Postretirement and Other Employee Benefits - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
US Pension | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Employer contributions | $ 11 |
Foreign Pension | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Employer contributions | 3 |
Pension Plan | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Employer estimated contributions | 18 |
Other Pension Plan | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Employer contributions | 10 |
Non-cash contribution expense | 6 |
US Postretirement | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Employer contributions | 2 |
Employer estimated contributions | $ 8 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Before-Tax Amount | ||
Amortization of actuarial loss included in net periodic pension and postretirement cost | $ 4 | $ 5 |
Settlement Charge | 6 | 0 |
Other comprehensive income – pension benefits | 10 | 5 |
Tax Benefit | ||
Amortization of actuarial loss included in net periodic pension and postretirement cost | (1) | (1) |
Settlement Charge | (2) | 0 |
Other comprehensive income – pension benefits | (3) | (1) |
Net-of-Tax Amount | ||
Amortization of actuarial loss included in net periodic pension and postretirement cost | 3 | 4 |
Settlement Charge | 4 | 0 |
Other comprehensive income – pension benefits | $ 7 | $ 4 |
New Accounting Pronouncements53
New Accounting Pronouncements (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Excess tax benefit | $ 2 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017Segmentoperating_segmentproduct_segmentgeographic_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 | Segment | 6 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting [Line Items] | |||
Revenues from external customers | $ 2,292 | $ 2,136 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 121 | 124 | |
Total assets | 4,642 | 4,351 | $ 4,346 |
Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 0 | 0 | |
Reclass and Elims | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 0 | 0 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 0 | 0 | |
Total assets | 35 | 34 | |
Reclass and Elims | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | (51) | (47) | |
Clean Air Division | North America | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 816 | 765 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 50 | 61 | |
Total assets | 1,464 | 1,352 | |
Clean Air Division | North America | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 4 | 3 | |
Clean Air Division | Europe South America And India | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 538 | 471 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 21 | 15 | |
Total assets | 797 | 776 | |
Clean Air Division | Europe South America And India | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 20 | 22 | |
Clean Air Division | Asia Pacific | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 277 | 279 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 32 | 35 | |
Total assets | 720 | 638 | |
Clean Air Division | Asia Pacific | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 1 | 0 | |
Ride Performance Division | North America | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 311 | 323 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 33 | 42 | |
Total assets | 749 | 779 | |
Ride Performance Division | North America | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 3 | 2 | |
Ride Performance Division | Europe South America And India | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 243 | 210 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 6 | (6) | |
Total assets | 522 | 448 | |
Ride Performance Division | Europe South America And India | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 9 | 7 | |
Ride Performance Division | Asia Pacific | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 107 | 88 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 17 | 13 | |
Total assets | 355 | 324 | |
Ride Performance Division | Asia Pacific | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | 14 | 13 | |
Other | |||
Segment Reporting [Line Items] | |||
Revenues from external customers | 0 | 0 | |
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | (38) | (36) | |
Total assets | 0 | 0 | |
Other | Intersegment Revenues | |||
Segment Reporting [Line Items] | |||
Revenues | $ 0 | $ 0 |
Supplemental Guarantor Conden56
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Ownership percentage of existing and future material domestic owned subsidiaries | 100.00% |
Supplemental Guarantor Conden57
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales and operating revenues — | ||
External | $ 2,292 | $ 2,136 |
Affiliated companies | 0 | 0 |
Net sales and operating revenues | 2,292 | 2,136 |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,931 | 1,770 |
Engineering, research, and development | 39 | 39 |
Selling, general, and administrative | 148 | 147 |
Depreciation and amortization of other intangibles | 52 | 54 |
Total costs and expenses | 2,170 | 2,010 |
Other income (expense) | ||
Loss on sale of receivables | (1) | (1) |
Other income (expense) | 0 | (1) |
Total other income (expense) | (1) | (2) |
Earnings before interest expense, income taxes, and noncontrolling interests | 121 | 124 |
Interest expense — | ||
External (net of interest capitalized) | 15 | 18 |
Affiliated companies (net of interest income) | 0 | 0 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 106 | 106 |
Income tax expense | 33 | 34 |
Equity in net income (loss) from affiliated companies | 0 | 0 |
Net income | 73 | 72 |
Less: Net income attributable to noncontrolling interests | 14 | 15 |
Net income attributable to Tenneco Inc. | 59 | 57 |
Comprehensive Income attributable to Tenneco | 87 | 84 |
Reclass and Elims | ||
Net sales and operating revenues — | ||
External | 0 | 0 |
Affiliated companies | (326) | (317) |
Net sales and operating revenues | (326) | (317) |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | (326) | (317) |
Engineering, research, and development | 0 | 0 |
Selling, general, and administrative | 0 | 0 |
Depreciation and amortization of other intangibles | 0 | 0 |
Total costs and expenses | (326) | (317) |
Other income (expense) | ||
Loss on sale of receivables | 0 | 0 |
Other income (expense) | 0 | 0 |
Total other income (expense) | 0 | 0 |
Earnings before interest expense, income taxes, and noncontrolling interests | 0 | 0 |
Interest expense — | ||
External (net of interest capitalized) | 0 | 0 |
Affiliated companies (net of interest income) | 0 | 0 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 0 | 0 |
Income tax expense | 0 | 0 |
Equity in net income (loss) from affiliated companies | (104) | (103) |
Net income | (104) | (103) |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Tenneco Inc. | (104) | (103) |
Comprehensive Income attributable to Tenneco | (104) | (103) |
Guarantor Subsidiaries | ||
Net sales and operating revenues — | ||
External | 1,018 | 996 |
Affiliated companies | 144 | 127 |
Net sales and operating revenues | 1,162 | 1,123 |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | 994 | 949 |
Engineering, research, and development | 20 | 20 |
Selling, general, and administrative | 75 | 68 |
Depreciation and amortization of other intangibles | 21 | 21 |
Total costs and expenses | 1,110 | 1,058 |
Other income (expense) | ||
Loss on sale of receivables | 0 | 0 |
Other income (expense) | (8) | (6) |
Total other income (expense) | (8) | (6) |
Earnings before interest expense, income taxes, and noncontrolling interests | 44 | 59 |
Interest expense — | ||
External (net of interest capitalized) | (1) | 0 |
Affiliated companies (net of interest income) | (3) | (3) |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 48 | 62 |
Income tax expense | 8 | 13 |
Equity in net income (loss) from affiliated companies | 27 | 27 |
Net income | 67 | 76 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Tenneco Inc. | 67 | 76 |
Comprehensive Income attributable to Tenneco | 67 | 76 |
Non-Guarantor Subsidiaries | ||
Net sales and operating revenues — | ||
External | 1,274 | 1,140 |
Affiliated companies | 182 | 190 |
Net sales and operating revenues | 1,456 | 1,330 |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | 1,263 | 1,138 |
Engineering, research, and development | 19 | 19 |
Selling, general, and administrative | 73 | 79 |
Depreciation and amortization of other intangibles | 31 | 33 |
Total costs and expenses | 1,386 | 1,269 |
Other income (expense) | ||
Loss on sale of receivables | (1) | (1) |
Other income (expense) | 8 | 5 |
Total other income (expense) | 7 | 4 |
Earnings before interest expense, income taxes, and noncontrolling interests | 77 | 65 |
Interest expense — | ||
External (net of interest capitalized) | 0 | 0 |
Affiliated companies (net of interest income) | 1 | 2 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | 76 | 63 |
Income tax expense | 25 | 21 |
Equity in net income (loss) from affiliated companies | 0 | 0 |
Net income | 51 | 42 |
Less: Net income attributable to noncontrolling interests | 14 | 15 |
Net income attributable to Tenneco Inc. | 37 | 27 |
Comprehensive Income attributable to Tenneco | 37 | 27 |
Tenneco Inc | ||
Net sales and operating revenues — | ||
External | 0 | 0 |
Affiliated companies | 0 | |
Net sales and operating revenues | 0 | 0 |
Costs and expenses | ||
Cost of sales (exclusive of depreciation and amortization shown below) | 0 | 0 |
Engineering, research, and development | 0 | 0 |
Selling, general, and administrative | 0 | 0 |
Depreciation and amortization of other intangibles | 0 | 0 |
Total costs and expenses | 0 | 0 |
Other income (expense) | ||
Loss on sale of receivables | 0 | 0 |
Other income (expense) | 0 | 0 |
Total other income (expense) | 0 | 0 |
Earnings before interest expense, income taxes, and noncontrolling interests | 0 | 0 |
Interest expense — | ||
External (net of interest capitalized) | 16 | 18 |
Affiliated companies (net of interest income) | 2 | 1 |
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies | (18) | (19) |
Income tax expense | 0 | 0 |
Equity in net income (loss) from affiliated companies | 77 | 76 |
Net income | 59 | 57 |
Less: Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Tenneco Inc. | 59 | 57 |
Comprehensive Income attributable to Tenneco | $ 87 | $ 84 |
Supplemental Guarantor Conden58
Supplemental Guarantor Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 341 | $ 347 | $ 374 | $ 287 |
Restricted cash | 3 | 2 | ||
Receivables, net | 1,442 | 1,294 | ||
Inventories | 782 | 730 | ||
Prepayments and other | 288 | 229 | ||
Total current assets | 2,856 | 2,602 | ||
Other assets: | ||||
Investment in affiliated companies | 0 | 0 | ||
Notes and advances receivable from affiliates | 0 | 0 | ||
Long-term receivables, net | 9 | 9 | ||
Goodwill | 58 | 57 | ||
Intangibles, net | 18 | 19 | ||
Deferred income taxes | 189 | 199 | ||
Other | 107 | 103 | ||
Total other assets | 381 | 387 | ||
Plant, property, and equipment, at cost | 3,651 | 3,548 | ||
Less — Accumulated depreciation and amortization | (2,246) | (2,191) | ||
Plant, property and equipment, net | 1,405 | 1,357 | ||
Total Assets | 4,642 | 4,346 | 4,351 | |
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt — non-affiliated | 113 | 90 | ||
Short-term debt — affiliated | 0 | 0 | ||
Accounts payable | 1,594 | 1,501 | ||
Accrued taxes | 41 | 39 | ||
Other | 333 | 343 | ||
Total current liabilities | 2,081 | 1,973 | ||
Long-term debt — non-affiliated | 1,406 | 1,294 | ||
Long-term debt — affiliated | 0 | 0 | ||
Deferred income taxes | 7 | 7 | ||
Postretirement benefits and other liabilities | 409 | 412 | ||
Commitments and contingencies | ||||
Total liabilities | 3,903 | 3,686 | ||
Redeemable noncontrolling interests | 48 | 40 | ||
Tenneco Inc. shareholders’ equity | 637 | 573 | ||
Noncontrolling interests | 54 | 47 | ||
Total equity | 691 | 620 | 544 | |
Total liabilities, redeemable noncontrolling interests and equity | 4,642 | 4,346 | ||
Reclass and Elims | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Receivables, net | (556) | (504) | ||
Inventories | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Total current assets | (556) | (504) | ||
Other assets: | ||||
Investment in affiliated companies | (2,539) | (2,418) | ||
Notes and advances receivable from affiliates | (23,166) | (22,249) | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other | 0 | 0 | ||
Total other assets | (25,705) | (24,667) | ||
Plant, property, and equipment, at cost | 0 | 0 | ||
Less — Accumulated depreciation and amortization | 0 | 0 | ||
Plant, property and equipment, net | 0 | 0 | ||
Total Assets | (26,261) | (25,171) | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt — non-affiliated | 0 | 0 | ||
Short-term debt — affiliated | (376) | (354) | ||
Accounts payable | (115) | (88) | ||
Accrued taxes | 0 | 0 | ||
Other | (65) | (62) | ||
Total current liabilities | (556) | (504) | ||
Long-term debt — non-affiliated | 0 | 0 | ||
Long-term debt — affiliated | (23,166) | (22,249) | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Total liabilities | (23,722) | (22,753) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | (2,539) | (2,418) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (2,539) | (2,418) | ||
Total liabilities, redeemable noncontrolling interests and equity | (26,261) | (25,171) | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 6 | 9 | 4 | 2 |
Restricted cash | 0 | 0 | ||
Receivables, net | 453 | 386 | ||
Inventories | 364 | 361 | ||
Prepayments and other | 89 | 62 | ||
Total current assets | 912 | 818 | ||
Other assets: | ||||
Investment in affiliated companies | 1,224 | 1,211 | ||
Notes and advances receivable from affiliates | 950 | 939 | ||
Long-term receivables, net | 8 | 9 | ||
Goodwill | 22 | 22 | ||
Intangibles, net | 7 | 7 | ||
Deferred income taxes | 40 | 47 | ||
Other | 45 | 46 | ||
Total other assets | 2,296 | 2,281 | ||
Plant, property, and equipment, at cost | 1,397 | 1,371 | ||
Less — Accumulated depreciation and amortization | (901) | (895) | ||
Plant, property and equipment, net | 496 | 476 | ||
Total Assets | 3,704 | 3,575 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt — non-affiliated | 0 | 0 | ||
Short-term debt — affiliated | 147 | 167 | ||
Accounts payable | 618 | 562 | ||
Accrued taxes | 9 | 4 | ||
Other | 134 | 147 | ||
Total current liabilities | 908 | 880 | ||
Long-term debt — non-affiliated | 0 | 0 | ||
Long-term debt — affiliated | 1,612 | 1,543 | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 279 | 297 | ||
Commitments and contingencies | ||||
Total liabilities | 2,799 | 2,720 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | 905 | 855 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 905 | 855 | ||
Total liabilities, redeemable noncontrolling interests and equity | 3,704 | 3,575 | ||
Nonguarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 335 | 338 | 370 | 285 |
Restricted cash | 3 | 2 | ||
Receivables, net | 1,545 | 1,412 | ||
Inventories | 418 | 369 | ||
Prepayments and other | 199 | 167 | ||
Total current assets | 2,500 | 2,288 | ||
Other assets: | ||||
Investment in affiliated companies | 0 | 0 | ||
Notes and advances receivable from affiliates | 17,372 | 16,529 | ||
Long-term receivables, net | 1 | 0 | ||
Goodwill | 36 | 35 | ||
Intangibles, net | 11 | 12 | ||
Deferred income taxes | 22 | 23 | ||
Other | 55 | 49 | ||
Total other assets | 17,497 | 16,648 | ||
Plant, property, and equipment, at cost | 2,254 | 2,177 | ||
Less — Accumulated depreciation and amortization | (1,345) | (1,296) | ||
Plant, property and equipment, net | 909 | 881 | ||
Total Assets | 20,906 | 19,817 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt — non-affiliated | 98 | 75 | ||
Short-term debt — affiliated | 229 | 187 | ||
Accounts payable | 1,091 | 1,027 | ||
Accrued taxes | 32 | 35 | ||
Other | 254 | 243 | ||
Total current liabilities | 1,704 | 1,567 | ||
Long-term debt — non-affiliated | 12 | 12 | ||
Long-term debt — affiliated | 17,317 | 16,466 | ||
Deferred income taxes | 7 | 7 | ||
Postretirement benefits and other liabilities | 130 | 115 | ||
Commitments and contingencies | ||||
Total liabilities | 19,170 | 18,167 | ||
Redeemable noncontrolling interests | 48 | 40 | ||
Tenneco Inc. shareholders’ equity | 1,634 | 1,563 | ||
Noncontrolling interests | 54 | 47 | ||
Total equity | 1,688 | 1,610 | ||
Total liabilities, redeemable noncontrolling interests and equity | 20,906 | 19,817 | ||
Tenneco Inc | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Other assets: | ||||
Investment in affiliated companies | 1,315 | 1,207 | ||
Notes and advances receivable from affiliates | 4,844 | 4,781 | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes | 127 | 129 | ||
Other | 7 | 8 | ||
Total other assets | 6,293 | 6,125 | ||
Plant, property, and equipment, at cost | 0 | 0 | ||
Less — Accumulated depreciation and amortization | 0 | 0 | ||
Plant, property and equipment, net | 0 | 0 | ||
Total Assets | 6,293 | 6,125 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt — non-affiliated | 15 | 15 | ||
Short-term debt — affiliated | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Other | 10 | 15 | ||
Total current liabilities | 25 | 30 | ||
Long-term debt — non-affiliated | 1,394 | 1,282 | ||
Long-term debt — affiliated | 4,237 | 4,240 | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Total liabilities | 5,656 | 5,552 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | 637 | 573 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 637 | 573 | ||
Total liabilities, redeemable noncontrolling interests and equity | $ 6,293 | $ 6,125 |
Supplemental Guarantor Conden59
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | |||
Net cash provided (used) by operating activities | $ (9) | $ (29) | |
Investing Activities | |||
Proceeds from sale of assets | 3 | 1 | |
Cash payments for plant, property, and equipment | (103) | (68) | |
Cash payments for software related intangible assets | (6) | (6) | |
Changes in restricted cash | (1) | (1) | |
Net cash used by investing activities | (107) | (74) | |
Financing Activities | |||
Repurchase of common shares | (3) | (2) | |
Cash dividends | $ (13) | (13) | 0 |
Issuance of common shares | (2) | ||
Retirement of long-term debt | (6) | (4) | |
Issuance of long-term debt | 0 | 5 | |
Purchase of common stock under the share repurchase program | (16) | (16) | |
Net increase in bank overdrafts | 3 | 7 | |
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 | 117 | 193 | |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 20 | ||
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 0 | 0 | |
Net cash provided by financing activities | 102 | 183 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 8 | 7 | |
Increase (decrease) in cash and cash equivalents | (6) | 87 | |
Cash and cash equivalents, January 1 | 347 | 287 | |
Cash and cash equivalents, March 31 (Note) | 341 | 341 | 374 |
Reclass and Elims | |||
Operating Activities | |||
Net cash provided (used) by operating activities | 0 | 0 | |
Investing Activities | |||
Proceeds from sale of assets | 0 | 0 | |
Cash payments for plant, property, and equipment | 0 | 0 | |
Cash payments for software related intangible assets | 0 | 0 | |
Changes in restricted cash | 0 | ||
Net cash used by investing activities | 0 | 0 | |
Financing Activities | |||
Repurchase of common shares | 0 | ||
Issuance of common shares | 0 | ||
Retirement of long-term debt | 0 | 0 | |
Issuance of long-term debt | 0 | ||
Purchase of common stock under the share repurchase program | 0 | 0 | |
Net increase in bank overdrafts | 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 | |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | ||
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 0 | 0 | |
Net cash provided by financing activities | 0 | 0 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | |
Increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, January 1 | 0 | 0 | |
Cash and cash equivalents, March 31 (Note) | 0 | 0 | 0 |
Guarantor Subsidiaries | |||
Operating Activities | |||
Net cash provided (used) by operating activities | (41) | (212) | |
Investing Activities | |||
Proceeds from sale of assets | 2 | 0 | |
Cash payments for plant, property, and equipment | (42) | (13) | |
Cash payments for software related intangible assets | (2) | (2) | |
Changes in restricted cash | 0 | 0 | |
Net cash used by investing activities | (42) | (15) | |
Financing Activities | |||
Repurchase of common shares | 0 | ||
Issuance of common shares | 0 | ||
Retirement of long-term debt | 0 | 0 | |
Issuance of long-term debt | 0 | ||
Purchase of common stock under the share repurchase program | 0 | 0 | |
Net increase in bank overdrafts | 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 | |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | ||
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 80 | 229 | |
Net cash provided by financing activities | 80 | 229 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | |
Increase (decrease) in cash and cash equivalents | (3) | 2 | |
Cash and cash equivalents, January 1 | 9 | 2 | |
Cash and cash equivalents, March 31 (Note) | 6 | 6 | 4 |
Non-Guarantor Subsidiaries | |||
Operating Activities | |||
Net cash provided (used) by operating activities | 46 | 180 | |
Investing Activities | |||
Proceeds from sale of assets | 1 | 1 | |
Cash payments for plant, property, and equipment | (61) | (55) | |
Cash payments for software related intangible assets | (4) | (4) | |
Changes in restricted cash | (1) | (1) | |
Net cash used by investing activities | (65) | (59) | |
Financing Activities | |||
Repurchase of common shares | 0 | ||
Issuance of common shares | 0 | ||
Retirement of long-term debt | 0 | 0 | |
Issuance of long-term debt | 5 | ||
Purchase of common stock under the share repurchase program | 0 | 0 | |
Net increase in bank overdrafts | 3 | 7 | |
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 | 20 | 8 | |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | ||
Intercompany dividend payments and net increase (decrease) in intercompany obligations | (15) | (63) | |
Net cash provided by financing activities | 8 | (43) | |
Effect of foreign exchange rate changes on cash and cash equivalents | 8 | 7 | |
Increase (decrease) in cash and cash equivalents | (3) | 85 | |
Cash and cash equivalents, January 1 | 338 | 285 | |
Cash and cash equivalents, March 31 (Note) | 335 | 335 | 370 |
Tenneco Inc | |||
Operating Activities | |||
Net cash provided (used) by operating activities | (14) | 3 | |
Investing Activities | |||
Proceeds from sale of assets | 0 | 0 | |
Cash payments for plant, property, and equipment | 0 | 0 | |
Cash payments for software related intangible assets | 0 | 0 | |
Changes in restricted cash | 0 | ||
Net cash used by investing activities | 0 | 0 | |
Financing Activities | |||
Repurchase of common shares | (3) | ||
Cash dividends | (13) | ||
Issuance of common shares | (2) | ||
Retirement of long-term debt | (6) | (4) | |
Issuance of long-term debt | 0 | ||
Purchase of common stock under the share repurchase program | (16) | (16) | |
Net increase in bank overdrafts | 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 | 97 | 185 | |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 20 | ||
Intercompany dividend payments and net increase (decrease) in intercompany obligations | (65) | (166) | |
Net cash provided by financing activities | 14 | (3) | |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | |
Increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents, January 1 | 0 | 0 | |
Cash and cash equivalents, March 31 (Note) | $ 0 | $ 0 | $ 0 |
Revision of Previously Issued60
Revision of Previously Issued Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 15 Months Ended | 48 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | $ 1,931 | $ 1,770 | |||
Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | 6 | ||||
Lump Sum Payments Immediately Recognized, Should Have Been Deferred And Amortized | Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Deferred charges | $ 29 | $ 29 | $ 29 | $ 23 | |
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | 7 | $ 34 | |||
AccrualsForSubstrateLiabilitiesAndAssociatedCostOfSales [Member] | Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | $ 7 |
Revision of Previously Issued61
Revision of Previously Issued Financial Statements Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | $ 1,931 | $ 1,770 |
Earnings before interest expense, income taxes, and noncontrolling interests | 121 | 124 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 106 | 106 |
Income Tax Expense (Benefit) | 33 | 34 |
Net Income | 73 | 72 |
Less: Net income attributable to noncontrolling interests | 14 | 15 |
Net Income (Loss) Attributable to Parent | $ 59 | $ 57 |
Earnings Per Share, Basic | $ 1.10 | $ 1 |
Diluted earnings per share of common stock (in dollars per share) | $ 1.09 | $ 0.99 |
As Previously Reported | ||
Income Statement [Abstract] | ||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | $ 1,925 | |
Earnings before interest expense, income taxes, and noncontrolling interests | 127 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 112 | |
Income Tax Expense (Benefit) | 34 | |
Net Income | 78 | |
Less: Net income attributable to noncontrolling interests | 15 | |
Net Income (Loss) Attributable to Parent | $ 63 | |
Earnings Per Share, Basic | $ 1.17 | |
Diluted earnings per share of common stock (in dollars per share) | $ 1.16 | |
Adjustment | ||
Income Statement [Abstract] | ||
Cost of Goods Sold, Excluding Depreciation, Depletion, and Amortization | $ 6 | |
Earnings before interest expense, income taxes, and noncontrolling interests | (6) | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (6) | |
Income Tax Expense (Benefit) | (1) | |
Net Income | (5) | |
Less: Net income attributable to noncontrolling interests | (1) | |
Net Income (Loss) Attributable to Parent | $ (4) | |
Earnings Per Share, Basic | $ (0.07) | |
Diluted earnings per share of common stock (in dollars per share) | $ (0.07) |
Revision of Previously Issued62
Revision of Previously Issued Financial Statements Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | $ 59 | $ 57 |
Comprehensive Income attributable to Tenneco | 87 | 84 |
Net Income (Loss) Attributable to Noncontrolling Interest | 14 | 15 |
Comprehensive Income attributable to Noncontrolling Interest | 15 | 16 |
Net Income | 73 | 72 |
Other comprehensive income | 29 | 28 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 102 | 100 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | 63 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 15 | |
Net Income | 78 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 107 | |
Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | (4) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (1) | |
Net Income | (5) | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (5) | |
Tenneco Inc. | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | 59 | |
Comprehensive Income attributable to Tenneco | 87 | |
Other comprehensive income | 28 | 27 |
Tenneco Inc. | As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | 63 | |
Comprehensive Income attributable to Tenneco | 91 | |
Tenneco Inc. | Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Parent | (4) | |
Comprehensive Income attributable to Tenneco | (4) | |
Noncontrolling Interest [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 14 | |
Comprehensive Income attributable to Noncontrolling Interest | 15 | |
Other comprehensive income | $ 1 | |
Noncontrolling Interest [Member] | As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 15 | |
Comprehensive Income attributable to Noncontrolling Interest | 16 | |
Noncontrolling Interest [Member] | Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (1) | |
Comprehensive Income attributable to Noncontrolling Interest | $ (1) |
Revision of Previously Issued63
Revision of Previously Issued Financial Statements Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | $ 189 | $ 199 | |
Total assets | 4,642 | 4,346 | $ 4,351 |
Accounts payable | 1,594 | 1,501 | |
Accrued Income Taxes, Current | 41 | 39 | |
Liabilities, Current | 2,081 | 1,973 | |
Deferred credits and other liabilities | 150 | 139 | |
Liabilities | 3,903 | 3,686 | |
Redeemable noncontrolling interests | 48 | 40 | |
Retained earnings (accumulated deficit) | (1,054) | (1,100) | |
Stockholders' Equity Attributable to Parent | 637 | 573 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 54 | 47 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 691 | 620 | 544 |
Liabilities and Equity | 4,642 | 4,346 | |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | 184 | 195 | |
Total assets | 4,637 | 4,342 | |
Accounts payable | 1,587 | 1,496 | |
Accrued Income Taxes, Current | 44 | 41 | |
Liabilities, Current | 2,077 | 1,970 | |
Deferred credits and other liabilities | 121 | 116 | |
Liabilities | 3,870 | 3,660 | |
Redeemable noncontrolling interests | 52 | 43 | |
Retained earnings (accumulated deficit) | (1,035) | (1,085) | |
Stockholders' Equity Attributable to Parent | 656 | 588 | |
Stockholders' Equity Attributable to Noncontrolling Interest | 59 | 51 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 715 | 639 | 554 |
Liabilities and Equity | 4,637 | 4,342 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | 5 | 4 | |
Total assets | 5 | 4 | |
Accounts payable | 7 | 5 | |
Accrued Income Taxes, Current | (3) | (2) | |
Liabilities, Current | 4 | 3 | |
Deferred credits and other liabilities | 29 | 23 | |
Liabilities | 33 | 26 | |
Redeemable noncontrolling interests | (4) | (3) | |
Retained earnings (accumulated deficit) | (19) | (15) | |
Stockholders' Equity Attributable to Parent | (19) | (15) | |
Stockholders' Equity Attributable to Noncontrolling Interest | (5) | (4) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (24) | (19) | $ (10) |
Liabilities and Equity | $ 5 | $ 4 |
Revision of Previously Issued64
Revision of Previously Issued Financial Statements Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income | $ 73 | $ 72 |
Deferred income taxes | 7 | 3 |
Increase (decrease) in payables | 93 | 57 |
Changes in long-term liabilities | 5 | (6) |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income | 78 | |
Deferred income taxes | 8 | |
Increase (decrease) in payables | 91 | 56 |
Changes in long-term liabilities | 1 | (5) |
Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net Income | (5) | |
Deferred income taxes | (1) | |
Increase (decrease) in payables | 2 | 1 |
Changes in long-term liabilities | $ 4 | $ (1) |
Revision of Previously Issued65
Revision of Previously Issued Financial Statements Shareholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 691 | $ 544 | $ 620 | |
Retained Earnings (Accumulated Deficit) | (1,054) | (1,100) | ||
Net Income (Loss) Attributable to Parent | 59 | 57 | ||
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 715 | 554 | 639 | |
Retained Earnings (Accumulated Deficit) | (1,035) | (1,085) | ||
Net Income (Loss) Attributable to Parent | 63 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (24) | (10) | (19) | |
Retained Earnings (Accumulated Deficit) | (19) | (15) | ||
Net Income (Loss) Attributable to Parent | (4) | |||
Retained Earnings (Accumulated Deficit) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (1,054) | (1,399) | (1,100) | $ (1,456) |
Net Income (Loss) Attributable to Parent | 59 | 57 | ||
Cash dividends declared | (13) | 0 | ||
Retained Earnings (Accumulated Deficit) | As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (1,035) | (1,391) | (1,085) | (1,448) |
Net Income (Loss) Attributable to Parent | 63 | 57 | ||
Cash dividends declared | (13) | |||
Retained Earnings (Accumulated Deficit) | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (19) | (8) | (8) | |
Retained Earnings (Accumulated Deficit) | (15) | |||
Net Income (Loss) Attributable to Parent | (4) | 0 | ||
Cash dividends declared | 0 | |||
Tenneco Inc. | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 637 | 497 | 497 | |
Net Income (Loss) Attributable to Parent | 59 | |||
Tenneco Inc. | As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 656 | 505 | ||
Net Income (Loss) Attributable to Parent | 63 | |||
Tenneco Inc. | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (19) | (8) | ||
Net Income (Loss) Attributable to Parent | (4) | |||
Noncontrolling Interest [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 54 | 47 | $ 47 | 39 |
Net income | 7 | 8 | ||
Other Comprehensive Income Loss Attributable To Redeemable Non Controlling Interests | 7 | 8 | ||
Noncontrolling Interest [Member] | As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 59 | 49 | 42 | |
Net income | 51 | |||
Other Comprehensive Income Loss Attributable To Redeemable Non Controlling Interests | 8 | 7 | ||
Noncontrolling Interest [Member] | Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (5) | (2) | $ (3) | |
Net income | (4) | |||
Other Comprehensive Income Loss Attributable To Redeemable Non Controlling Interests | $ (1) | $ 1 |