Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-12387 | |
Entity Registrant Name | TENNECO INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0515284 | |
Entity Address, Address Line One | 500 North Field Drive | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60045 | |
City Area Code | 847 | |
Local Phone Number | 482-5000 | |
Title of 12(b) Security | Class A Voting Common Stock, par value $0.01 per share | |
Trading Symbol | TEN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001024725 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 57,134,173 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 23,793,669 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||||
Net sales and operating revenues | $ 4,319 | $ 2,371 | $ 13,307 | $ 7,485 | ||
Costs and expenses | ||||||
Cost of sales | 3,653 | 2,002 | 11,310 | 6,329 | ||
Selling, general, and administrative | 249 | 138 | 853 | 443 | ||
Depreciation and amortization | 165 | 60 | 503 | 180 | ||
Engineering, research, and development | 78 | 39 | 248 | 118 | ||
Restructuring charges, asset impairments, and other | 43 | 16 | 128 | 57 | ||
Goodwill impairment charge | 9 | $ 0 | $ 60 | 0 | 69 | 0 |
Costs and expenses | 4,197 | 2,255 | 13,111 | 7,127 | ||
Other expense (income) | ||||||
Non-service pension and other postretirement benefit costs (credits) | 2 | 4 | 8 | 10 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | (1) | 0 | (34) | 0 | ||
Other expense (income), net | (27) | 0 | (43) | 3 | ||
Total other expense (income) | (26) | 4 | (69) | 13 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 148 | 112 | 265 | 345 | ||
Interest expense | 79 | 24 | 242 | 69 | ||
Earnings (loss) before income taxes and noncontrolling interests | 69 | 88 | 23 | 276 | ||
Income tax expense (benefit) | (9) | 22 | 5 | 73 | ||
Net income (loss) | 78 | 66 | 18 | 203 | ||
Less: Net income (loss) attributable to noncontrolling interests | 8 | 9 | 39 | 39 | ||
Net income (loss) attributable to Tenneco Inc. | $ 70 | $ 57 | $ (21) | $ 164 | ||
Basic earnings (loss) per share: | ||||||
Earnings (loss) per share (in dollars per share) | $ 0.87 | $ 1.11 | $ (0.25) | $ 3.20 | ||
Weighted average shares outstanding (in shares) | 80,916,676 | 51,272,618 | 80,903,967 | 51,247,664 | ||
Diluted earnings (loss) per share: | ||||||
Earnings (loss) per share (in dollars per share) | $ 0.87 | $ 1.11 | $ (0.25) | $ 3.20 | ||
Weighted average shares outstanding (in shares) | 80,916,676 | 51,401,829 | 80,903,967 | 51,395,927 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 78 | $ 66 | $ 18 | $ 203 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustment | (97) | (31) | (80) | (103) |
Cash flow hedges | 0 | 0 | 1 | 0 |
Defined benefit plans | 3 | 4 | 2 | 11 |
Other comprehensive income (loss), net of tax | (94) | (27) | (77) | (92) |
Comprehensive income (loss) | (16) | 39 | (59) | 111 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (14) | 6 | 22 | 37 |
Comprehensive income (loss) attributable to common shareholders | $ (2) | $ 33 | $ (81) | $ 74 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 389 | $ 697 |
Restricted cash | 6 | 5 |
Receivables: | ||
Customer notes and accounts, net | 2,645 | 2,487 |
Other | 108 | 85 |
Inventories | 2,137 | 2,245 |
Prepayments and other current assets | 603 | 590 |
Total current assets | 5,888 | 6,109 |
Property, plant and equipment, net | 3,491 | 3,501 |
Long-term receivables, net | 10 | 10 |
Goodwill | 802 | 869 |
Intangibles, net | 1,578 | 1,519 |
Investments in nonconsolidated affiliates | 505 | 544 |
Deferred income taxes | 570 | 467 |
Other assets | 539 | 213 |
Total assets | 13,383 | 13,232 |
Current liabilities: | ||
Short-term debt, including current maturities of long-term debt | 161 | 153 |
Accounts payable | 2,651 | 2,759 |
Accrued compensation and employee benefits | 378 | 343 |
Accrued income taxes | 57 | 64 |
Accrued expenses and other current liabilities | 1,042 | 1,001 |
Total current liabilities | 4,289 | 4,320 |
Long-term debt | 5,408 | 5,340 |
Deferred income taxes | 104 | 88 |
Pension and postretirement benefits | 1,088 | 1,167 |
Deferred credits and other liabilities | 518 | 263 |
Commitments and contingencies (Note 13) | ||
Total liabilities | 11,407 | 11,178 |
Redeemable noncontrolling interests | 139 | 138 |
Tenneco Inc. shareholders’ equity: | ||
Preferred stock — $0.01 par value; none issued | 0 | 0 |
Additional paid-in capital | 4,377 | 4,360 |
Accumulated other comprehensive loss | (752) | (692) |
Accumulated deficit | (1,054) | (1,013) |
Total shareholders equity before treasury stock | 2,572 | 2,656 |
Shares held as treasury stock — at cost: September 30, 2019 and December 31, 2018 — 14,592,888 shares | (930) | (930) |
Tenneco Inc. shareholders’ equity | 1,642 | 1,726 |
Noncontrolling interests | 195 | 190 |
Total equity | 1,837 | 1,916 |
Total liabilities, redeemable noncontrolling interests and equity | 13,383 | 13,232 |
Class A voting stock — $0.01 par value; shares issued: September 30, 2019 — 71,719,614 and December 31, 2018 — 71,675,379 | ||
Tenneco Inc. shareholders’ equity: | ||
Common stock | 1 | 1 |
Class B non-voting convertible stock — $0.01 par value; shares issued: September 30, 2019 — 23,793,669 and December 31, 2018 — 23,793,669 | ||
Tenneco Inc. shareholders’ equity: | ||
Common stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury shares (in shares) | 14,592,888 | 14,592,888 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 71,719,614 | 71,675,379 |
Treasury shares (in shares) | 14,592,888 | |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,793,669 | 23,793,669 |
Treasury shares (in shares) | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net income (loss) | $ 18 | $ 203 |
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: | ||
Goodwill impairment charge | 69 | 0 |
Depreciation and amortization | 503 | 180 |
Deferred income taxes | (115) | (21) |
Stock-based compensation | 20 | 12 |
Restructuring charges, asset impairments, and other, net of cash paid | 12 | 8 |
Change in pension and other postretirement benefit plans | (49) | 3 |
Equity in earnings of nonconsolidated affiliates | (34) | 0 |
Cash dividends received from nonconsolidated affiliates | 45 | 0 |
Changes in operating assets and liabilities: | ||
Receivables | (457) | (260) |
Inventories | 112 | (115) |
Payables and accrued expenses | 99 | 154 |
Accrued interest and accrued income taxes | (12) | (5) |
Other assets and liabilities | (147) | (122) |
Net cash provided (used) by operating activities | 64 | 37 |
Investing Activities | ||
Proceeds from sale of assets | 8 | 6 |
Net proceeds from sale of business | 22 | 0 |
Cash payments for property, plant, and equipment | (541) | (255) |
Acquisition of business, net of cash acquired | (158) | 0 |
Proceeds from deferred purchase price of factored receivables | 203 | 102 |
Other | 0 | (2) |
Net cash used by investing activities | (466) | (149) |
Financing Activities | ||
Proceeds from term loans and notes | 171 | 12 |
Repayments of term loans and notes | (278) | (35) |
Borrowings on revolving lines of credit | 6,804 | 4,051 |
Payments on revolving lines of credit | (6,548) | (4,074) |
Issuance (repurchase) of common shares | (2) | (2) |
Cash dividends | (20) | (39) |
Net increase (decrease) in bank overdrafts | (12) | (5) |
Net increase (decrease) in short-term borrowings secured by accounts receivable | (3) | 150 |
Other | 1 | (2) |
Distributions to noncontrolling interest partners | (20) | (44) |
Net cash provided by (used by) financing activities | 93 | 12 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2 | (15) |
Decrease in cash, cash equivalents and restricted cash | (307) | (115) |
Cash, cash equivalents and restricted cash, beginning of period | 702 | 318 |
Cash, cash equivalents and restricted cash, end of period | 395 | 203 |
Supplemental Cash Flow Information | ||
Cash paid during the period for interest | 230 | 65 |
Cash paid during the period for income taxes, net of refunds | 139 | 79 |
Non-cash Investing Activities | ||
Period end balance of accounts payable for property, plant, and equipment | 118 | 52 |
Deferred purchase price of receivables factored in the period | $ 208 | $ 105 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Tenneco Inc. Shareholders' Equity | Noncontrolling Interests | Total Equity |
Balance at beginning of period at Dec. 31, 2017 | $ (930) | $ 3,112 | $ (1,009) | $ (538) | $ 636 | $ 46 | $ 682 | ||
Beginning balance (in shares) at Dec. 31, 2017 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 60 | 60 | 7 | 67 | |||||
Foreign currency translation adjustments | 19 | 19 | 7 | 26 | |||||
Defined benefit plans | 3 | 3 | 3 | ||||||
Comprehensive income (loss) | 82 | 14 | 96 | ||||||
Adjustments to adopt new accounting standards | (1) | (1) | (1) | ||||||
Stock-based compensation, net | 3 | 3 | 3 | ||||||
Cash dividends declared | (13) | (13) | (13) | ||||||
Ending balance (in shares) at Mar. 31, 2018 | 1 | ||||||||
Balance at end of period at Mar. 31, 2018 | (930) | 3,115 | (963) | (516) | 707 | 60 | 767 | ||
Balance at beginning of period at Dec. 31, 2017 | (930) | 3,112 | (1,009) | (538) | 636 | 46 | 682 | ||
Beginning balance (in shares) at Dec. 31, 2017 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ 164 | 164 | 164 | 181 | |||||
Foreign currency translation adjustments | (103) | (101) | (101) | (100) | |||||
Derivatives | 0 | ||||||||
Defined benefit plans | 11 | 11 | 11 | 11 | |||||
Comprehensive income (loss) | 111 | ||||||||
Purchase accounting measurement period adjustment | 0 | ||||||||
Distributions declared to noncontrolling interests | (26) | ||||||||
Ending balance (in shares) at Sep. 30, 2018 | 1 | ||||||||
Balance at end of period at Sep. 30, 2018 | (930) | 3,121 | (884) | (628) | 680 | 38 | 718 | ||
Balance at beginning of period at Mar. 31, 2018 | (930) | 3,115 | (963) | (516) | 707 | 60 | 767 | ||
Beginning balance (in shares) at Mar. 31, 2018 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 47 | 7 | 54 | ||||||
Foreign currency translation adjustments | (92) | (92) | (5) | (97) | |||||
Defined benefit plans | 4 | 4 | 4 | ||||||
Comprehensive income (loss) | (41) | 2 | (39) | ||||||
Stock-based compensation, net | 3 | 3 | 3 | ||||||
Cash dividends declared | (12) | (12) | (12) | ||||||
Distributions declared to noncontrolling interests | (18) | (18) | |||||||
Ending balance (in shares) at Jun. 30, 2018 | 1 | ||||||||
Balance at end of period at Jun. 30, 2018 | (930) | 3,118 | (928) | (604) | 657 | 44 | 701 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 57 | 57 | 57 | 3 | 60 | ||||
Foreign currency translation adjustments | (31) | (28) | (28) | (1) | (29) | ||||
Derivatives | 0 | ||||||||
Defined benefit plans | 4 | 4 | 4 | 4 | |||||
Comprehensive income (loss) | 39 | 33 | 2 | 35 | |||||
Adjustments to adopt new accounting standards | 1 | 1 | 1 | ||||||
Stock-based compensation, net | 3 | 3 | 3 | ||||||
Cash dividends declared | (14) | (14) | (14) | ||||||
Distributions declared to noncontrolling interests | (8) | (8) | |||||||
Ending balance (in shares) at Sep. 30, 2018 | 1 | ||||||||
Balance at end of period at Sep. 30, 2018 | (930) | 3,121 | (884) | (628) | 680 | 38 | 718 | ||
Balance at beginning of period at Dec. 31, 2018 | 1,916 | (930) | 4,360 | (1,013) | (692) | 1,726 | 190 | 1,916 | |
Beginning balance (in shares) at Dec. 31, 2018 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (117) | (117) | 7 | (110) | |||||
Foreign currency translation adjustments | 29 | 29 | 4 | 33 | |||||
Derivatives | 4 | 4 | 4 | ||||||
Defined benefit plans | 1 | 1 | 1 | ||||||
Comprehensive income (loss) | (83) | 11 | (72) | ||||||
Stock-based compensation, net | 5 | 5 | 5 | ||||||
Cash dividends declared | (20) | (20) | (20) | ||||||
Purchase accounting measurement period adjustment | (1) | (1) | |||||||
Distributions declared to noncontrolling interests | (1) | (1) | |||||||
Ending balance (in shares) at Mar. 31, 2019 | 1 | ||||||||
Balance at end of period at Mar. 31, 2019 | (930) | 4,365 | (1,150) | (658) | 1,628 | 199 | 1,827 | ||
Balance at beginning of period at Dec. 31, 2018 | 1,916 | (930) | 4,360 | (1,013) | (692) | 1,726 | 190 | 1,916 | |
Beginning balance (in shares) at Dec. 31, 2018 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (21) | ||||||||
Foreign currency translation adjustments | (80) | ||||||||
Derivatives | 1 | ||||||||
Defined benefit plans | 2 | ||||||||
Comprehensive income (loss) | (59) | ||||||||
Purchase accounting measurement period adjustment | (8) | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 1 | ||||||||
Balance at end of period at Sep. 30, 2019 | 1,837 | (930) | 4,377 | (1,054) | (752) | 1,642 | 195 | 1,837 | |
Balance at beginning of period at Mar. 31, 2019 | (930) | 4,365 | (1,150) | (658) | 1,628 | 199 | 1,827 | ||
Beginning balance (in shares) at Mar. 31, 2019 | 1 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 26 | 26 | 9 | 35 | |||||
Foreign currency translation adjustments | (17) | (17) | (17) | ||||||
Derivatives | (3) | (3) | (3) | ||||||
Defined benefit plans | (2) | (2) | (2) | ||||||
Comprehensive income (loss) | 4 | 9 | 13 | ||||||
Stock-based compensation, net | 6 | 6 | 6 | ||||||
Distributions declared to noncontrolling interests | (2) | (2) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 1 | ||||||||
Balance at end of period at Jun. 30, 2019 | (930) | 4,371 | (1,124) | (680) | 1,638 | 206 | 1,844 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 70 | 70 | 70 | 4 | 74 | ||||
Foreign currency translation adjustments | (97) | (75) | (75) | (11) | (86) | ||||
Derivatives | 0 | ||||||||
Defined benefit plans | 3 | 3 | 3 | 3 | |||||
Comprehensive income (loss) | (16) | (2) | (7) | (9) | |||||
Acquisition and other | (3) | (3) | |||||||
Stock-based compensation, net | 6 | 6 | 6 | ||||||
Purchase accounting measurement period adjustment | (1) | (1) | |||||||
Ending balance (in shares) at Sep. 30, 2019 | 1 | ||||||||
Balance at end of period at Sep. 30, 2019 | $ 1,837 | $ (930) | $ 4,377 | $ (1,054) | $ (752) | $ 1,642 | $ 195 | $ 1,837 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Tenneco Inc. ("Tenneco" or "the Company") was formed under the laws of Delaware in 1996. Tenneco designs, manufactures, and sells products and services for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers. The Company is one of the world's leading manufacturers of clean air, powertrain, and ride performance products and systems, and serves both original equipment manufacturers ("OEM") and replacement markets worldwide. On January 10, 2019, the Company completed the acquisition of a 90.5% ownership interest in Öhlins Intressenter AB (“Öhlins”, the "Öhlins Acquisition"), a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries. On October 1, 2018, the Company completed the acquisition of a 100% |
Summary of Accounting Policies
Summary of Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation — Interim Financial Statements Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments (consisting of normal recurring adjustments) management believes are necessary to fairly state the results of operations, comprehensive income, financial position, changes in shareholders' equity, and cash flows. The Company's management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the Securities and Exchange Commission on March 18, 2019. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The Company has previously announced its intentions to separate its businesses through a spinoff transaction in mid-2020 to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). Tenneco remains committed to the separation of the businesses and continues to execute its plan for the spinoff. Additionally, the company is evaluating multiple strategic options to deleverage and facilitate the separation. Certain of these options could help mitigate the effect of challenging market conditions, which, if current trends were to continue, would likely affect the company’s ability to complete a separation in the mid-year 2020 time range. In preparation for the separation, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. See Note 17, Segment Information . Redeemable Noncontrolling Interests — The Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. The redemption of these redeemable noncontrolling interests is not solely within the Company's control. Accordingly, these noncontrolling interests are presented in the temporary equity section of the Company's condensed consolidated balance sheets. The Company does not believe it is probable the redemption features related to these noncontrolling interest securities will be triggered, as a change in control event is generally not probable until it occurs, except as discussed in Note 3, Acquisitions and Divestitures , for the redeemable noncontrolling interests from the Acquisitions. The following is a rollforward of activities in the Company's redeemable noncontrolling interests: Nine Months Ended September 30, 2019 2018 Balance at beginning of period $ 138 $ 42 Net income (loss) attributable to redeemable noncontrolling interests 19 22 Other comprehensive income (loss) (10 ) (3 ) Acquisition and other 17 — Purchase accounting measurement period adjustment (8 ) — Dividends declared (17 ) (33 ) Balance at end of period $ 139 $ 28 The Company recorded a decrease to the redeemable noncontrolling interests of $8 million from the Federal-Mogul Acquisition, as a result of adjustments made in the measurement period. The purchase price allocation for the Federal-Mogul Acquisition has been finalized. The purchase price allocation for the Öhlins Acquisition is preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information. Earnings (loss) per share — Basic earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average shares outstanding during the period. Diluted earnings (loss) per share reflects the weighted average effect of all potentially dilutive securities from the date of issuance. Actual weighted average shares outstanding used in calculating earnings (loss) per share were: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average shares of common stock outstanding 80,916,676 51,272,618 80,903,967 51,247,664 Effect of dilutive securities: Restricted stock, PSUs and RSUs — 93,956 — 95,022 Stock options — 35,255 — 53,241 Dilutive shares outstanding 80,916,676 51,401,829 80,903,967 51,395,927 For the three and nine months ended September 30, 2019 , the calculation of diluted earnings (loss) per share excluded 1,895,180 and 1,865,345 of share-based awards, as the effect on the calculation would have been anti-dilutive. For the three and nine months ended September 30, 2018 , the calculation of diluted earnings (loss) per share excluded 124,865 and 124,606 of share-based awards, as the effect on the calculation would have been anti-dilutive. Revision of Previously Issued Financial Statements The Company identified an error in the accounting for certain costs capitalized into inventory that did not constitute inventoriable costs in its historical financial statements. The Company also revised for other immaterial errors related to various line items. As a result, certain amounts in the condensed consolidated financial statements have been revised for the three and nine month periods ended September 30, 2018 . These revisions were not material to the previously issued financial statements and are presented in the tables below. In addition, during the three and nine months ended September 30, 2019 , the Company recorded an immaterial $5 million charge in its Ride Performance segment related to prior periods. Reclassifications: Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. These reclassifications have no effect on previously reported earnings before income taxes and noncontrolling interests or net income, other comprehensive income (loss), current or total assets, current or total liabilities, and the cash provided (used) by operating, investing or financing activities within the condensed consolidated financial statements. The following tables present the effects of these reclassifications and revisions for the condensed consolidated financial statement line items adjusted in the affected periods included within this quarterly report: Three Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of income (loss) Revenues Net sales and operating revenues $ 2,372 $ — $ 2,372 $ (1 ) $ 2,371 Costs and expenses Cost of sales 2,014 (12 ) 2,002 — 2,002 Selling, general, and administrative 141 (4 ) 137 1 138 Depreciation and amortization 65 — 65 (5 ) 60 Engineering, research, and development 39 — 39 — 39 Restructuring charges, asset impairments, and other — 16 16 — 16 2,259 — 2,259 (4 ) 2,255 Other expense (income) Loss on sale of receivables 3 (3 ) — — — Non-service pension and other postretirement benefit costs (credits) — 4 4 — 4 Other expense (income), net 6 (4 ) 2 (2 ) — 9 (3 ) 6 (2 ) 4 Earnings (loss) before interest expense, income taxes, and noncontrolling interests 104 3 107 5 112 Interest expense 21 3 24 — 24 Earnings (loss) before income taxes and noncontrolling interests 83 — 83 5 88 Income tax expense (benefit) 20 — 20 2 22 Net income (loss) 63 — 63 3 66 Less: Net income (loss) attributable to noncontrolling interests 9 — 9 — 9 Net income (loss) attributable to Tenneco Inc. $ 54 $ — $ 54 $ 3 $ 57 Earnings (loss) per share Basic earnings (loss) per share of common stock $ 1.05 $ — $ 1.05 $ 0.06 $ 1.11 Diluted earnings (loss) per share of common stock $ 1.05 $ — $ 1.05 $ 0.06 $ 1.11 Three Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of comprehensive income (loss) Net income (loss) $ 63 $ — $ 63 $ 3 $ 66 Other comprehensive income (loss)—net of tax Foreign currency translation adjustment (31 ) — (31 ) — (31 ) Defined benefit plans 4 — 4 — 4 (27 ) — (27 ) — (27 ) Comprehensive income (loss) 36 — 36 3 39 Less: Comprehensive income (loss) attributable to noncontrolling interests 6 — 6 — 6 Comprehensive income (loss) attributable to common shareholders $ 30 $ — $ 30 $ 3 $ 33 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of income (loss) Revenues Net sales and operating revenues $ 7,483 $ — $ 7,483 $ 2 $ 7,485 Costs and expenses Cost of sales 6,371 (44 ) 6,327 2 6,329 Selling, general, and administrative 450 (8 ) 442 1 443 Depreciation and amortization 183 — 183 (3 ) 180 Engineering, research, and development 122 (5 ) 117 1 118 Restructuring charges, asset impairments, and other — 57 57 — 57 7,126 — 7,126 1 7,127 Other expense (income) Loss on sale of receivables 8 (8 ) — — — Non-service pension and other postretirement benefit costs (credits) — 10 10 — 10 Other expense (income), net 15 (10 ) 5 (2 ) 3 23 (8 ) 15 (2 ) 13 Earnings (loss) before interest expense, income taxes, and noncontrolling interests 334 8 342 3 345 Interest expense 61 8 69 — 69 Earnings (loss) before income taxes and noncontrolling interests 273 — 273 3 276 Income tax expense (benefit) 72 — 72 1 73 Net income (loss) 201 — 201 2 203 Less: Net income (loss) attributable to noncontrolling interests 39 — 39 — 39 Net income (loss) attributable to Tenneco Inc. $ 162 $ — $ 162 $ 2 $ 164 Earnings (loss) per share Basic earnings (loss) per share of common stock $ 3.17 $ — $ 3.17 $ 0.03 $ 3.20 Diluted earnings (loss) per share of common stock $ 3.16 $ — $ 3.16 $ 0.04 $ 3.20 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of comprehensive income (loss) Net income (loss) $ 201 $ — $ 201 $ 2 $ 203 Other comprehensive income (loss)—net of tax Foreign currency translation adjustment (104 ) — (104 ) 1 (103 ) Defined benefit plans 11 — 11 — 11 (93 ) — (93 ) 1 (92 ) Comprehensive income (loss) 108 — 108 3 111 Less: Comprehensive income (loss) attributable to noncontrolling interests 37 — 37 — 37 Comprehensive income (loss) attributable to common shareholders $ 71 $ — $ 71 $ 3 $ 74 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statements of cash flow Operating Activities Net income (loss) $ 201 $ — $ 201 $ 2 $ 203 Net cash provided by (used by) operating activities 37 — 37 — 37 Investing Activities Net cash used by investing activities (149 ) — (149 ) — (149 ) Financing Activities Proceeds from term loans and notes — — — 12 12 Repayments of term loans and notes — (17 ) (17 ) (18 ) (35 ) Retirement of long-term debt (17 ) 17 — — — Borrowings on revolving lines of credit — — — 4,051 4,051 Payments on revolving lines of credit — — — (4,074 ) (4,074 ) Net increase (decrease) in revolver borrowings (29 ) — (29 ) 29 — Issuance (repurchase) of common shares (2 ) — (2 ) — (2 ) Cash dividends (39 ) — (39 ) — (39 ) Debt issuance cost of long-term debt (2 ) 2 — — — Purchase of common stock under the share repurchase program — — — — — Net increase (decrease) in bank overdrafts (5 ) — (5 ) — (5 ) Net increase (decrease) in short-term borrowings secured by accounts receivable 150 — 150 — 150 Other — (2 ) (2 ) — (2 ) Distributions to noncontrolling interest partners (44 ) — (44 ) — (44 ) Net cash provided by (used by) financing activities 12 — 12 — 12 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (15 ) — (15 ) — (15 ) Increase (decrease) in cash, cash equivalents and restricted cash (115 ) — (115 ) — (115 ) Cash, cash equivalents and restricted cash, beginning of period 318 — 318 — 318 Cash, cash equivalents and restricted cash, end of period $ 203 $ — $ 203 $ — $ 203 Three Months Ended September 30, 2018 As Reported Revisions As Revised Condensed consolidated statements of changes in shareholders' equity Accumulated Deficit Balance June 30 $ (864 ) $ (64 ) $ (928 ) Net income (loss) attributable to Tenneco Inc. 54 3 57 Cash dividends declared (14 ) — (14 ) Adjustments to adopt new accounting standards — 1 1 Balance September 30 $ (824 ) $ (60 ) $ (884 ) Accumulated Other Comprehensive Income (loss) Balance June 30 $ (608 ) $ 4 $ (604 ) Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (27 ) (1 ) (28 ) Defined benefit plans 4 — 4 Balance September 30 $ (631 ) $ 3 $ (628 ) Total Tenneco Inc. Shareholders' Equity Balance June 30 $ 717 $ (60 ) $ 657 Net income (loss) attributable to Tenneco Inc. 54 3 57 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (27 ) (1 ) (28 ) Defined benefit plans 4 — 4 Comprehensive income (loss) 31 2 33 Adjustments to adopt new accounting standards — 1 1 Cash dividends declared (14 ) — (14 ) Stock-based compensation, net 3 — 3 Balance September 30 $ 737 $ (57 ) $ 680 Total Equity Balance June 30 $ 761 $ (60 ) $ 701 Net income (loss) 57 3 60 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (28 ) (1 ) (29 ) Defined benefit plans 4 — 4 Comprehensive income (loss) 33 2 35 Adjustments to adopt new accounting standards — 1 1 Cash dividends declared (14 ) — (14 ) Distributions declared to noncontrolling interests (8 ) — (8 ) Stock-based compensation, net 3 — 3 Balance September 30 $ 775 $ (57 ) $ 718 Nine Months Ended September 30, 2018 As Reported Revisions As Revised Condensed consolidated statements of changes in shareholders' equity Accumulated Deficit Balance January 1 $ (946 ) $ (63 ) $ (1,009 ) Net income (loss) attributable to Tenneco Inc. 162 2 164 Cash dividends declared (39 ) — (39 ) Adjustments to adopt new accounting standards (1 ) 1 — Balance September 30 $ (824 ) $ (60 ) $ (884 ) Accumulated Other Comprehensive Income (loss) Balance January 1 $ (541 ) $ 3 $ (538 ) Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (101 ) — (101 ) Defined benefit plans 11 — 11 Balance September 30 $ (631 ) $ 3 $ (628 ) Total Tenneco Inc. Shareholders' Equity Balance January 1 $ 696 $ (60 ) $ 636 Net income (loss) attributable to Tenneco Inc. 162 2 164 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (101 ) — (101 ) Defined benefit plans 11 — 11 Comprehensive income (loss) 72 2 74 Adjustments to adopt new accounting standards (1 ) 1 — Cash dividends declared (39 ) — (39 ) Stock-based compensation, net 9 — 9 Balance September 30 $ 737 $ (57 ) $ 680 Total Equity Balance January 1 $ 742 $ (60 ) $ 682 Net income (loss) 179 2 181 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (100 ) — (100 ) Defined benefit plans 11 — 11 Comprehensive income (loss) 90 2 92 Adjustments to adopt new accounting standards (1 ) 1 — Cash dividends declared (39 ) — (39 ) Distributions declared to noncontrolling interests (26 ) — (26 ) Stock-based compensation, net 9 — 9 Balance September 30 $ 775 $ (57 ) $ 718 New Accounting Pronouncements Adoption of New Accounting Standards Comprehensive income — In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The Company has elected not to adopt the optional reclassification. Leases — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update supersedes the lease requirements in Topic 840, 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 flows 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. The Company adopted this update on January 1, 2019 using the modified retrospective method without the recasting of comparative periods’ financial information, as permitted by the transition guidance. The Company adopted the package of practical expedients that allows companies to not reassess its previous conclusions related to contracts that contain leases, existing lease classification, and initial direct costs, and to carry forward its historical conclusions. It elected the land easements practical expedient allowing the Company not to reassess whether existing or expired land easements not accounted for as leases under previous guidance are or contain leases under the new guidance. It also did not adopt the hindsight practical expedient and has also made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. As a part of the implementation effort, the Company reviewed its internal control structure and modified and augmented existing controls, as necessary. The adoption of the new standard resulted in the recording of additional lease assets and lease liabilities of $387 million and $383 million , and a reduction of favorable lease intangibles of $4 million as of January 1, 2019. The standard did not materially affect the Company's condensed consolidated financial position or results of operations and had no effect on cash flows. See Note 14, Leases . Accounting Standards Issued But Not Yet Adopted Intangibles — In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the potential effect of this new guidance on its financial statements. Retirement benefits — In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The new standard (i) requires the removal of disclosures that are no longer considered cost beneficial; (ii) clarifies specific requirements of certain disclosures; and (iii) adds new disclosure requirements, including reasons for significant gains and losses related to changes in the benefit obligation. The amendments in this update are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company is currently evaluating the potential effect of this new guidance on its financial statements and will include the enhanced disclosures in the consolidated financial statements upon adoption. Fair value measurements — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential effect of this new guidance on its financial statements but does not expect this guidance to have a material effect on its consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures The preliminary allocation of the purchase price of the assets acquired and liabilities assumed, including the residual amount recognized as goodwill, is based upon estimated information and is subject to change within the measurement period. The measurement period is a period not to exceed one year from the acquisition date during which the Company may adjust estimated or provisional amounts recorded during purchase accounting if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. Any adjustments to amounts recorded in purchase accounting that do not qualify as measurement period adjustments are included in earnings in the period identified. The fair values of the assets acquired and liabilities assumed are based on preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes these preliminary estimates provide a reasonable basis for estimating the fair value of the assets acquired and liabilities assumed, it will continue to evaluate available information prior to finalization of the amounts. Öhlins Intressenter AB Acquisition The purchase price for the 90.5% ownership interest in Öhlins was $162 million . The remaining 9.5% ownership interest in Öhlins (the “KÖ Interest”) was retained by K Öhlin Holding AB (“Köhlin”). Köhlin has an irrevocable right at any time after the third anniversary of the Öhlins Acquisition to sell the KÖ Interest to the Company. As the redemption of this redeemable noncontrolling interest is not solely within the Company's control, the noncontrolling interest is presented in the temporary equity section of the Company's condensed consolidated balance sheets. The fair value of the KÖ Interest was $17 million and represents its current redemption value at September 30, 2019 . The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the nine months ended September 30, 2019 : Initial Allocation Adjustments Revised Allocation Cash, cash equivalents and restricted cash $ 4 $ — $ 4 Customer notes and accounts receivable 19 — 19 Inventories 31 — 31 Prepayments and other current assets 2 — 2 Property, plant, and equipment 8 — 8 Goodwill 28 2 30 Intangibles 135 (2 ) 133 Other assets 9 — 9 Total assets acquired 236 — 236 Short-term debt, including current maturities of long-term debt 10 — 10 Accounts payable 11 — 11 Accrued compensation and employee benefits 12 — 12 Deferred income taxes 18 — 18 Deferred credits and other liabilities 6 — 6 Total liabilities assumed 57 — 57 Redeemable noncontrolling interest 17 — 17 Net assets acquired $ 162 $ — $ 162 The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the intangible assets, deferred income tax assets and liabilities, and redeemable noncontrolling interest. Goodwill of $30 million was recognized as part of the acquisition and is reflected in the Ride Performance segment. During the nine months ended September 30, 2019 , the Company adjusted the initial allocation of the total purchase consideration, which resulted in a $2 million increase to goodwill. The goodwill consists of the Company’s expected future economic benefits that will result from the acquisition of Öhlins’ technology, which will allow the Company to more rapidly grow its product offerings for current and future customers, as well as assist the Company in obtaining a larger share of business in developing mobility markets. None of the goodwill is deductible for tax purposes. Other intangible assets acquired include the following: Estimated Fair Value Weighted-Average Useful Lives Definite-lived intangible assets: Customer platforms and relationships $ 37 10 years Technology rights 41 10 years Total definite-lived intangible assets 78 Indefinite-lived intangible assets: Trade names and trademarks 55 Total $ 133 The Company recorded a $5 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation and recognized $5 million as a non-cash charge to cost of goods sold during the nine months ended September 30, 2019 related to the amortization of this step-up, as the acquired inventory was sold. Pro Forma Results Pro forma results of operations have not been presented because the effects of the Öhlins Acquisition were not material to the Company’s condensed consolidated results of operations. Acquisition of Federal-Mogul The Company finalized the valuation of the assets and liabilities of the Federal-Mogul Acquisition during the third quarter of 2019. During the nine months ended September 30, 2019 , the Company made measurement period adjustments based on further evaluation of available information to facts and circumstances that existed as of the acquisition date. The following table summarizes the final fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the nine months ended September 30, 2019 : Initial Allocation Adjustments Final Allocation Cash, cash equivalents and restricted cash $ 277 $ — $ 277 Customer notes and accounts receivable 1,258 (4 ) 1,254 Other receivables 62 — 62 Inventories 1,551 (8 ) 1,543 Prepayments and other current assets 198 — 198 Property, plant and equipment 1,711 (28 ) 1,683 Long-term receivables 48 — 48 Goodwill 825 (22 ) 803 Intangibles 1,530 47 1,577 Investments in nonconsolidated affiliates 528 (4 ) 524 Deferred income taxes 166 30 196 Other assets 55 (5 ) 50 Total assets acquired 8,209 6 8,215 Short-term debt, including current maturities of long-term debt 130 — 130 Accounts payable 957 4 961 Accrued compensation and employee benefits 231 — 231 Accrued income taxes 49 — 49 Accrued expenses and other current liabilities 522 (7 ) 515 Long-term debt 1,315 — 1,315 Deferred income taxes 56 24 80 Pension and postretirement benefits 879 — 879 Deferred credits and other liabilities 124 (5 ) 119 Total liabilities assumed 4,263 16 4,279 Redeemable noncontrolling interests 96 (8 ) 88 Noncontrolling interests 143 (2 ) 141 Net assets and noncontrolling interests acquired $ 3,707 $ — $ 3,707 Goodwill of $343 million was allocated to the Powertrain segment, $395 million was allocated to the Motorparts segment, and $65 million was allocated to the Ride Performance segment. The goodwill consists of the Company's expected future economic benefits that will arise from expected future product sales and synergies from combining Federal-Mogul with its existing portfolio of products. None of the goodwill is deductible for tax purposes. Other intangible assets acquired include the following: Estimated Fair Value Weighted-Average Useful Lives Definite-lived intangible assets: Customer platforms and relationships $ 953 10 years Technology rights 66 10 years Packaged kits know-how 54 10 years Catalogs 47 10 years Licensing agreements 64 4.5 years Land use rights 30 42.8 years Total definite-lived intangible assets 1,214 10.5 years Indefinite-lived intangible assets: Trade names and trademarks 363 Total $ 1,577 The Company recorded a $149 million step-up of inventory to its fair value as of the acquisition date. The Company recognized $44 million as a non-cash charge to cost of goods sold during the nine months ended September 30, 2019 related to the amortization of this step-up, as the acquired inventory was sold. The Company recognized $105 million as a non-cash charge to cost of goods sold during the year ended December 31, 2018 . As of September 30, 2019 , there is no remaining inventory step-up to be amortized. In addition, the Company acquired $81 million in redeemable noncontrolling interests related to a subsidiary from the Federal-Mogul Acquisition. The Company initiated the process to make a tender offer for the shares it does not own due to the change in control in accordance with local regulations triggered by the acquisition. It is probable these shares will become redeemable within the next year under the tender offer at a price that is representative of fair value and as a result, the noncontrolling interest is presented in the temporary equity section of the Company’s condensed consolidated balance sheets. The carrying amount for this redeemable noncontrolling interest represents its current redemption value at September 30, 2019 . The Company's condensed consolidated statements of income (loss) for the nine months ended September 30, 2019 included net sales and operating revenues of $5,537 million and net loss of $34 million associated with the operating results of Federal-Mogul. Pro Forma Results The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the Federal-Mogul Acquisition, and the related financing, if the transaction had occurred as of January 1, 2017. The pro forma results are not necessarily indicative of either the actual consolidated results had the Federal-Mogul Acquisition occurred on January 1, 2017 or of future consolidated operating results. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales and operating revenues $ 4,319 $ 4,283 $ 13,307 $ 13,581 Earnings (loss) before income taxes and noncontrolling interests $ 168 $ 287 $ 369 $ 745 Net income (loss) attributable to Tenneco Inc. $ 84 $ 142 $ 57 $ 313 Basic earnings (loss) per share of common stock $ 1.03 $ 1.75 $ 0.70 $ 3.88 Diluted earnings (loss) per share of common stock $ 1.03 $ 1.75 $ 0.70 $ 3.87 These pro forma amounts have been calculated after applying the Company's accounting policies and the results presented above primarily reflect: (i) depreciation adjustments relating to fair value adjustments to property, plant, and equipment; (ii) amortization adjustments relating to fair value estimates of intangible assets; (iii) incremental interest expense, net on assumed indebtedness, the new credit facility, debt issuance costs, and fair value adjustments to debt; and (iv) cost of goods sold adjustments relating to fair value adjustments to inventory. Pro forma adjustments described above have been tax affected using the Company's effective rate during the respective periods. Assets Held for Sale On March 1, 2019, the Company sold its wipers business in the Motorparts segment for a sale price of $29 million , subject to adjustment based on terms of the sale agreement. Proceeds from the sale were $22 million , subject to customary working capital adjustments. Certain assets and liabilities of the business are still classified as held for sale within the condensed consolidated balance sheet as of September 30, 2019 and were transferred to the buyer on October 1, 2019. In August 2019, the Company executed a letter of intent to sell a non-core business in the Motorparts segment for a sale price of $24 million , subject to adjustment, as the Company continues to rationalize its product portfolio and focus on core product lines. As of September 30, 2019 , proceeds from the sale would have been $24 million . The related assets and liabilities were classified as held for sale as of September 30, 2019 . The transaction is expected to close within the next year. The related assets and liabilities were classified as held for sale as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Assets Receivables $ 8 $ — Inventories 7 33 Other current assets 3 5 Long-lived assets 16 23 Goodwill 4 — Impairment on carrying value (8 ) — Total assets held for sale $ 30 $ 61 Liabilities Accounts payable $ 4 $ 21 Accrued liabilities — 7 Other liabilities 1 11 Total liabilities held for sale $ 5 $ 39 The assets and liabilities held for sale are recorded in “ Prepayments and other current assets ” and “ Accrued expenses and other current liabilities ” in the consolidated balance sheets as of September 30, 2019 and December 31, 2018 |
Restructuring Charges, Asset Im
Restructuring Charges, Asset Impairments, and Other, Net | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges, Asset Impairments, and Other, Net | 4. Restructuring Charges, Asset Impairments, and Other, Net Restructuring and Other Charges The Company's restructuring activities are undertaken as necessary to execute management's strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company's businesses and to relocate operations to best cost locations. The Company's restructuring charges consist primarily of employee costs (principally severance and/or termination benefits), facility closure and exit costs, and other. For the three and nine months ended September 30, 2019 and 2018 , restructuring charges, asset impairments, and other by segment are as follows: Three Months Ended September 30, 2019 Clean Air Powertrain Ride Performance (1) Motorparts Corporate Total Severance and other charges, net $ 6 $ 11 $ 15 $ 2 $ 1 $ 35 Impairment of assets held for sale — — — 8 — 8 Total restructuring charges, asset impairments, and other $ 6 $ 11 $ 15 $ 10 $ 1 $ 43 (1) The Ride Performance segment includes $10 million of other charges for the three months ended September 30, 2019. Three Months Ended September 30, 2018 Clean Air Powertrain Ride Performance Motorparts Corporate Total Severance and other charges, net $ 1 $ — $ 10 $ 2 $ 1 $ 14 Other non-restructuring asset impairments — — — — 2 2 Total restructuring charges, asset impairments, and other $ 1 $ — $ 10 $ 2 $ 3 $ 16 Nine Months Ended September 30, 2019 Clean Air Powertrain Ride Performance (2) Motorparts Corporate Total Severance and other charges, net $ 25 $ 29 $ 50 $ 12 $ 2 $ 118 Other non-restructuring asset impairments 1 — — 1 — 2 Impairment of assets held for sale — — — 8 — 8 Total asset impairment charges 1 — — 9 — 10 Total restructuring charges, asset impairments, and other $ 26 $ 29 $ 50 $ 21 $ 2 $ 128 (1) The Ride Performance segment includes $8 million, $20 million, and $30 million of other charges for the three months ended March 31, 2019, six months ended June 30, and for the nine months ended September 30, 2019. Nine Months Ended September 30, 2018 Clean Air Powertrain Ride Performance Motorparts Corporate Total Severance and other charges, net $ 19 $ — $ 27 $ 6 $ 3 $ 55 Other non-restructuring asset impairments — — — — 2 2 Total restructuring charges, asset impairments, and other $ 19 $ — $ 27 $ 6 $ 5 $ 57 During the three and nine months ended September 30, 2019 , the Company incurred $3 million and $12 million in restructuring and related costs and reduced previously recorded estimates by $1 million and $3 million related to a restructuring plan designed to achieve a portion of the synergies the Company anticipates achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company will reduce its headcount globally across all segments. The Company began implementing headcount reductions in January 2019 and these actions will continue throughout 2019. The Federal-Mogul Acquisition is discussed further in Note 3, Acquisitions and Divestitures . During the three and nine months ended September 30, 2019 , the Company also incurred $15 million and $43 million in restructuring and other costs related to plant relocation and closures within its Ride Performance segment. The Company expects the actions to be completed by the second quarter of 2020. During the three and nine months September 30, 2018 , the Company incurred $8 million and $22 million in restructuring and other costs related to the accelerated move of the Beijing Ride Performance plant. Restructuring Reserve Rollforward Amounts related to activities that were charges to restructuring reserves, including costs incurred to support future structural cost reductions, by reportable segments are as follows: Reportable Segments Clean Air Powertrain Ride Performance (1) Motorparts Total Reportable Segments Corporate Total Balance as of December 31, 2018 $ 17 $ 15 $ 25 $ 43 $ 100 $ 3 $ 103 Provisions 5 1 13 4 23 1 24 Payments (6 ) (3 ) (13 ) (14 ) (36 ) (2 ) (38 ) Balance as of March 31, 2019 16 13 25 33 87 2 89 Provisions 14 17 22 8 61 — 61 Revisions to estimates — — — (2 ) (2 ) — (2 ) Payments (2 ) (4 ) (19 ) (7 ) (32 ) (1 ) (33 ) Balance as of June 30, 2019 28 26 28 32 114 1 115 Provisions 6 11 15 4 36 1 37 Revisions to estimates — — — (2 ) (2 ) — (2 ) Payments (7 ) (4 ) (19 ) (13 ) (43 ) (2 ) (45 ) Foreign currency (1 ) — — — (1 ) — (1 ) Balance as of September 30, 2019 $ 26 $ 33 $ 24 $ 21 $ 104 $ — $ 104 (1) The Ride Performance segment includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019. Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Reportable Segments Corporate Total Balance as of December 31, 2017 $ 14 $ — $ 7 $ 4 $ 25 $ — $ 25 Provisions 1 — 8 3 12 — 12 Payments (5 ) — (9 ) (2 ) (16 ) — (16 ) Balance as of March 31, 2018 10 — 6 5 21 — 21 Provisions 17 — 9 1 27 2 29 Payments (3 ) — (10 ) (2 ) (15 ) — (15 ) Balance as of June 30, 2018 24 — 5 4 33 2 35 Provisions 1 — 10 2 13 1 14 Payments (2 ) — (7 ) (5 ) (14 ) (2 ) (16 ) Foreign currency (1 ) — — — (1 ) — (1 ) Balance as of September 30, 2018 $ 22 $ — $ 8 $ 1 $ 31 $ 1 $ 32 The following table provides a summary of the Company's restructuring liabilities and related activity for each type of exit costs: Employee Costs Facility Closure and Other Costs (1) Total Balance as of December 31, 2018 $ 98 $ 5 $ 103 Provisions 11 13 24 Payments (25 ) (13 ) (38 ) Balance as of March 31, 2019 84 5 89 Provisions 44 17 61 Revisions to estimates (2 ) — (2 ) Payments (16 ) (17 ) (33 ) Balance as of June 30, 2019 110 5 115 Provisions 22 15 37 Revisions to estimates (2 ) — (2 ) Payments (29 ) (16 ) (45 ) Foreign currency (1 ) — (1 ) Balance as of September 30, 2019 $ 100 $ 4 $ 104 (1) Facility closure and other costs includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019 related to the Ride Performance segment. Employee Costs Facility Closure and Other Costs Total Balance as of December 31, 2017 $ 19 $ 6 $ 25 Provisions 10 2 12 Payments (13 ) (3 ) (16 ) Balance as of March 31, 2018 16 5 21 Provisions 26 3 29 Payments (12 ) (3 ) (15 ) Balance as of June 30, 2018 30 5 35 Provisions 2 12 14 Payments (4 ) (12 ) (16 ) Foreign currency (1 ) — (1 ) Balance as of September 30, 2018 $ 27 $ 5 $ 32 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories At September 30, 2019 and December 31, 2018 , inventory consists of the following: September 30, 2019 December 31, 2018 Finished goods $ 1,078 $ 1,116 Work in process 519 562 Raw materials 440 457 Materials and supplies 100 110 $ 2,137 $ 2,245 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets At September 30, 2019 and December 31, 2018 , goodwill consists of the following: Nine Months Ended September 30, 2019 Clean Air Powertrain Ride Performance Motorparts Total Gross carrying amount at December 31, 2018 $ 22 $ 388 $ 210 $ 611 $ 1,231 Measurement period adjustments — 21 — (67 ) (46 ) Acquisitions — — 28 — 28 Gross carrying amount at March 31, 2019 22 409 238 544 1,213 Measurement period adjustments — 3 2 3 8 Gross carrying amount at June 30, 2019 22 412 240 547 1,221 Measurement period adjustments — (69 ) 10 77 18 Reclassification to assets held for sale — — — (4 ) (4 ) Foreign exchange (1 ) — (1 ) (1 ) (3 ) Gross carrying amount at September 30, 2019 21 343 249 619 1,232 Accumulated impairment loss at December 31, 2018 — — (143 ) (219 ) (362 ) Impairment — — (60 ) — (60 ) Accumulated impairment loss at March 31, 2019 — — (203 ) (219 ) (422 ) Impairment — — — — — Accumulated impairment loss at June 30, 2019 — — (203 ) (219 ) (422 ) Impairment — — (9 ) — (9 ) Foreign Exchange — — 1 — 1 Accumulated impairment loss at September 30, 2019 — — (211 ) (219 ) (430 ) Net carrying value at end of period $ 21 $ 343 $ 38 $ 400 $ 802 The Öhlins Acquisition resulted in $30 million of goodwill which was included in the Ride Performance segment. During the nine months ended September 30, 2019 , the Company made the following adjustments to goodwill in the measurement period to the preliminary purchase price allocation for the Acquisitions: • an increase of $2 million for the Öhlins Acquisition; and • a net decrease of $22 million for the Federal-Mogul Acquisition. The purchase price allocation for the Öhlins Acquisition is preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information. During the first quarter of 2019, the Company reorganized the reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company reassigned assets and liabilities (excluding goodwill) to the reporting units affected. Goodwill was then reassigned to the reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill. As a result, this non-cash charge was recorded in the first quarter of 2019. Goodwill allocated to other reporting units was supported by the valuation performed at that time. During the third quarter of 2019, the Company completed purchase accounting for the Federal-Mogul Acquisition. As a result, the final goodwill allocation was reassigned to the reorganized segments and reporting unit structure that occurred in the first quarter of 2019 using a relative fair value approach and the Company determined an incremental $9 million of goodwill was impaired for one reporting unit in its Ride Performance segment. This non-cash charge was recorded in the three months ended September 30, 2019 and the total impairment charge recognized in the nine months ended September 30, 2019 for the reorganization of the reporting units that occurred in the first quarter of 2019 was $69 million . During the three months ended September 30, 2019 , the Company performed a review of potential triggering events, and concluded no events indicated it was more likely than not that the fair values of its reporting units had declined to below their carrying values at September 30, 2019 . The Company considered the results of the post-reorganized reporting unit changes that occurred in the first quarter of 2019, which indicated nine reporting units with goodwill. Management compared its future projected cash flows as of September 30, 2019 to the future projected cash flows utilized in the valuation performed during the first quarter of 2019 and concluded there is no indication the carrying value of its reporting units would be less than their fair values. If the Company’s market capitalization remains at current levels for a sustained period of time or declines further, and if such a decline becomes indicative the fair value of its reporting units have declined to below their carrying values, the Company will need to determine the fair value of its reporting units which may result in a material non-cash goodwill impairment charge in a future period. At September 30, 2019 and December 31, 2018, the Company's intangible assets consist of the following: September 30, 2019 December 31, 2018 Useful Lives Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Customer relationships and platforms 10 years $ 985 $ (98 ) $ 887 $ 964 $ (24 ) $ 940 Customer contract 10 years 8 (6 ) 2 8 (5 ) 3 Patents 10 to 17 years 1 (1 ) — 1 (1 ) — Technology rights 10 to 30 years 131 (34 ) 97 98 (27 ) 71 Packaged kits know-how 10 years 54 (5 ) 49 36 (1 ) 35 Catalogs 10 years 47 (5 ) 42 — — — Licensing agreements 3 to 5 years 62 (14 ) 48 66 (3 ) 63 Land use rights 28 to 46 years 45 (3 ) 42 44 (2 ) 42 1,333 (166 ) 1,167 1,217 (63 ) 1,154 Indefinite-lived intangible assets: Trade names and trademarks 411 — 411 365 — 365 Total $ 1,744 $ (166 ) $ 1,578 $ 1,582 $ (63 ) $ 1,519 The Company recorded definite-lived and indefinite-lived intangible assets of $133 million as a result of the Öhlins Acquisition. During the nine months ended September 30, 2019 , the Company made the following adjustments to definite-lived and indefinite-lived intangible assets in the measurement period to the preliminary purchase price allocation for the Acquisitions: • a decrease of $2 million was recognized for the Öhlins Acquisition; and • a net increase of $47 million was recognized for the Federal-Mogul Acquisition. The purchase price allocation for the Öhlins Acquisition is preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information. The amortization expense associated with definite-lived intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 33 $ — $ 101 $ 1 The expected future amortization expense for the Company's definite-lived intangible assets is as follows: 2019 2020 2021 2022 2023 2024 and thereafter Total Expected amortization expense $ 33 $ 131 $ 130 $ 126 $ 126 $ 621 $ 1,167 |
Investment in Nonconsolidated A
Investment in Nonconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Nonconsolidated Affiliates | 7. Investment in Nonconsolidated Affiliates The Company has investments in several nonconsolidated affiliates, which are primarily located in China, Korea, Turkey, and the U.S. The Company generally equates control to ownership percentage whereby investments more than 50% owned are consolidated. The Company's ownership interest in affiliates accounted for under the equity method is as follows: September 30, 2019 December 31, 2018 Anqing TP Goetze Piston Ring Company Limited (China) 35.7 % 35.7 % Anqing TP Powder Metallurgy Co., Ltd (China) 20.0 % 20.0 % Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea) 50.0 % 50.0 % Farloc Argentina SAIC Y F (Argentina) 23.9 % 23.9 % Federal-Mogul Powertrain Otomotiv A.S. (Turkey) 50.0 % 50.0 % Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey) 25.0 % 25.0 % Federal-Mogul TP Liners, Inc. (USA) 46.0 % 46.0 % Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico) 49.0 % 49.0 % JURID do Brasil Sistemas Automotivos Ltda. (Brazil) 19.9 % 19.9 % KB Autosys Co., Ltd. (Korea) 33.6 % 33.6 % Montagewerk Abgastechnik Emden GmbH (Germany) 50.0 % 50.0 % The Company's investments in its nonconsolidated affiliates at September 30, 2019 and December 31, 2018 was: September 30, 2019 December 31, 2018 Investments in nonconsolidated affiliates $ 505 $ 544 The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Equity in earnings (losses) of nonconsolidated affiliates, net of tax $ 1 $ — $ 34 $ — Cash dividends received from nonconsolidated affiliates $ 18 $ — $ 45 $ — During the three and nine months ended September 30, 2019 , the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which resulted in a reduction to the fair value of its investments in nonconsolidated affiliates of $4 million . As a result of finalizing purchase accounting and completing a purchase price allocation for certain equity method investments, a $10 million reduction to equity in earnings was recognized in the three and nine months ended September 30, 2019 . The non-cash reduction in equity earnings was to recognize the basis difference between the fair value and book value of certain assets, including inventory, property, plant and equipment, and intangible assets. The purchase price allocation for the Federal-Mogul Acquisition has been finalized. See Note 3, Acquisitions and Divestitures , for additional information. The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three and nine months ended September 30, 2019 . The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share: Three Months Ended September 30, 2019 Statements of Income Otomotiv A.S. Anqing TP Goetze Other Total Sales $ 85 $ 33 $ 115 $ 233 Gross profit $ 18 $ 8 $ 20 $ 46 Income from continuing operations $ 13 $ 8 $ 11 $ 32 Net income $ 12 $ 7 $ 9 $ 28 Nine Months Ended September 30, 2019 Statements of Income Otomotiv A.S. Anqing TP Goetze Other Total Sales $ 261 $ 111 $ 360 $ 732 Gross profit $ 61 $ 34 $ 66 $ 161 Income from continuing operations $ 49 $ 28 $ 35 $ 112 Net income $ 51 $ 25 $ 31 $ 107 See Note 18, Related Party Transactions , for additional information on balances and transactions with equity method investments. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 8. Derivatives and Hedging Activities The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity compensation liabilities, and changes in interest rates, which may result in cash flow risks. For exposures not offset within its operations, the Company may enter into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. Designation of derivative instruments is performed on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. The Company assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy. Market Risks Foreign Currency Risk — The Company manufactures and sells its products in North America, South America, Asia, Europe, Australia, and Africa. As a result, the Company's financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which the Company manufactures and sells its products. The Company generally tries to use natural hedges within its foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, the Company considers managing certain aspects of its foreign currency activities and larger transactions through the use of foreign currency options or forward contracts. Principal currencies hedged have historically included the U.S. dollar, euro, British pound, Polish zloty, Mexican peso, and Canadian dollar. Concentrations of Credit Risk — Financial instruments including cash equivalents and derivative contracts expose the Company to counterparty credit risk for non-performance. The Company's counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company's requirement of high credit standing. The Company's counterparties for derivative contracts are substantial investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk through policies requiring minimum credit standing and limiting credit exposure to any one counterparty and through monitoring counterparty credit risks. The Company's concentration of credit risk related to derivative contracts at September 30, 2019 and 2018 is not material. Other — The Company presents its derivative positions and any related material collateral under master netting agreements on a net basis. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the hypothetical derivative method, are recognized in "Cost of sales" in the condensed consolidated statements of income (loss). Derivative gains and losses included in accumulated other comprehensive income (loss) for effective hedges are reclassified into operations upon recognition of the hedged transaction. Derivative gains and losses associated with undesignated hedges are recognized in "Cost of sales" in the condensed consolidated statements of income (loss). Derivative Instruments Foreign Currency Forward Contracts — The Company enters into foreign currency forward purchase and sale contracts to mitigate its exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. In managing its foreign currency exposures, the Company identifies and aggregates existing offsetting positions and then hedges residual exposures through third-party derivative contracts. The gains or losses on these contracts is recognized in "Cost of sales" in the condensed consolidated statements of income (loss). The fair value of foreign currency forward contracts are recorded in "Prepayments and other current assets" or "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at September 30, 2019 and December 31, 2018 . The following table summarizes by position the notional amounts for foreign currency forward contracts as of September 30, 2019 (all of which mature in 2019): Notional Amount Long positions $ (47 ) Short positions $ 47 Cash-Settled Share Swap Transactions — During 2019, the Company entered into an amended and restated equity swap agreement. The Company selectively uses cash-settled share swaps to reduce market risk associated with its deferred compensation liabilities. These equity deferred compensation liabilities increase as the Company's stock price increases and decrease as the Company's stock price decreases. In contrast, the value of the swap agreement moves in the opposite direction of these liabilities, allowing the Company to fix a portion of the liabilities at a stated amount. As of September 30, 2019 , the Company hedged its deferred compensation liability related to approximately 600,000 common share equivalents, an increase from 250,000 common share equivalents as of December 31, 2018 . The fair value of the equity swap agreement is recorded in "Prepayments and other current assets" or "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. The fair value of the Company's equity swap agreement was a net liability position of $1 million at September 30, 2019 and net asset position of $4 million at December 31, 2018 . Hedging Instruments Cash Flow Hedges — Commodity Price Risk — The Company’s production processes are dependent upon the supply of certain raw materials that are exposed to price fluctuations on the open market. The primary purpose of the Company’s commodity price forward contract activity is to manage the volatility associated with forecasted purchases for up to eighteen months in the future. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts. Principal raw materials hedged include copper and tin. In certain instances within this program, foreign currency forwards may be used in order to match critical terms for commodity exposure. The Company has designated these contracts as cash flow hedging instruments. The Company records unrecognized gains and losses in other comprehensive income (loss) (“OCI or OCL”) and makes regular reclassifying adjustments into “Cost of sales” within the condensed consolidated statements of income (loss) when the underlying hedged transaction is recognized in earnings. The Company had commodity derivatives outstanding with an equivalent notional amount of $26 million as of September 30, 2019 and $27 million as of December 31, 2018 . Substantially all of the commodity price hedge contracts mature within one year . Net Investment Hedge — Foreign Currency Borrowings — The Company has foreign currency denominated debt, €770 million of which was designated as a net investment hedge in certain foreign subsidiaries and affiliates of the Company. Changes to its carrying value are included in shareholders' equity in the foreign currency translation component of OCL and offset against the translation adjustment on the underlying net assets of those foreign subsidiaries and affiliates, which are also recorded in OCL. The Company’s debt instruments are discussed further in Note 10, Debt and Other Financing Arrangements . The following table is a summary of the carrying value of derivative and non-derivative instruments designated as hedges as of September 30, 2019 : Carrying Value Balance sheet classification September 30, 2019 December 31, 2018 Commodity price hedge contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 1 $ 2 Foreign currency borrowings designated as net investment hedges Long-term debt $ 839 $ 863 The following table represents the effects before reclassification into net income of derivative and non-derivative instruments designated as hedges in accumulated other comprehensive income (loss) three and nine month periods ended September 30, 2019 : Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Commodity price hedge contracts designated as cash flow hedges $ (1 ) $ — Foreign currency borrowings designated as net investment hedges $ 38 $ 45 The Company estimates less than $1 million included in accumulated OCI or OCL as of September 30, 2019 will be reclassified into earnings within the following 12 months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. 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. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents assets and liabilities included in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis and indicate the fair value hierarchy utilized to determine such fair value: September 30, 2019 December 31, 2018 Fair value Carrying Fair Carrying Fair Derivative instruments: Equity swap agreement Level 2 $ (1 ) $ (1 ) $ 4 $ 4 Commodity contracts Level 2 $ (1 ) $ (1 ) $ (2 ) $ (2 ) Cash-Settled Share Swap Transactions — The Company's stock price is used as an observable input in determining the fair value of the equity swap. Commodity and Foreign Currency Contracts — The Company calculates the fair value of its commodity contracts and foreign currency contracts using commodity forward rates and currency forward rates, to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at September 30, 2019 and December 31, 2018 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis In addition to items measured at fair value on a recurring basis, assets may be measured at fair value on a nonrecurring basis. These assets include long-lived assets and intangible assets which may be written down to fair value as a result of impairment. The Company has determined the fair value measurements related to each of these rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, as observable inputs are not available (level 3). To determine the fair value of long-lived asset groups, the Company utilizes discounted cash flows expected to be generated by the long-lived asset group. The Company evaluates the carrying value of its goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each year. These fair value measurements require the Company to make significant assumptions and estimates about the extent and timing of future cash flows, discount rates, and growth rates, which are subject to a high degree of uncertainty. The Company believes the assumptions and estimates used to determine the estimated fair value are reasonable, but different assumptions could materially affect the estimated fair value. During the first quarter, the Company reorganized the reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. See Note 6, Goodwill and Other Intangible Assets , for additional information on the goodwill impairment recognized in the three and nine months ended September 30, 2019 . Financial Instruments Not Carried at Fair Value Estimated fair values of the Company's outstanding debt were: September 30, 2019 December 31, 2018 Fair value Carrying Fair Carrying Fair Long-term debt (including current maturities): Term loans and senior notes Level 2 $ 5,169 $ 4,963 $ 5,307 $ 5,218 The fair value of the Company's public senior notes and private borrowings under its senior credit facility is based on observable inputs, and its borrowings on the revolving credit facility approximate fair value. The Company also had $78 million and $106 million at September 30, 2019 and December 31, 2018 in other debt whose carrying value approximates fair value, which consists primarily of foreign debt with maturities of one year or less. Assets and Liabilities Not Carried at Fair Value The carrying value of cash and cash equivalents, restricted cash, short and long-term receivables, accounts payable, and short-term debt approximates fair value. |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | 10. Debt and Other Financing Arrangements Long-Term Debt A summary of our long-term debt obligations at September 30, 2019 and December 31, 2018 is set forth in the following table: September 30, 2019 December 31, 2018 Principal Carrying Amount (1) Principal Carrying Amount (1) Credit Facilities Revolver Borrowings Due 2023 $ 229 $ 229 $ — $ — Term Loans LIBOR plus 1.75% Term Loan A due 2019 through 2023 1,636 1,628 1,700 1,691 LIBOR plus 3.00% Term Loan B due 2019 through 2025 (2) 1,687 1,624 1,700 1,629 Senior Unsecured Notes $225 million of 5.375% Senior Notes due 2024 225 222 225 222 $500 million of 5.000% Senior Notes due 2026 500 494 500 493 Senior Secured Notes €415 million 4.875% Euro Fixed Rate Notes due 2022 452 467 476 496 €300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024 327 331 344 349 €350 million of 5.000% Euro Fixed Rate Notes due 2024 381 403 401 427 Other debt, primarily foreign instruments 81 78 108 106 5,476 5,413 Less - maturities classified as current 68 73 Total long-term debt $ 5,408 $ 5,340 (1) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $80 million and $90 million as of September 30, 2019 and December 31, 2018. Total unamortized debt (premium) discount, net was $(38) million and $(49) million as of September 30, 2019 and December 31, 2018. (2) As of December 31, 2018, the rate on Term Loan B was LIBOR plus 2.75% . Term Loans On October 1, 2018, the Company entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and other lenders (the "New Credit Facility") in connection with the Federal-Mogul Acquisition. The New Credit Facility provides $4.9 billion of total debt financing, consisting of a five -year $1.5 billion revolving credit facility, a five -year $1.7 billion term loan A facility ("Term Loan A"), and a seven -year $1.7 billion term loan B facility ("Term Loan B"). Senior Notes The Company has outstanding 5.375% senior unsecured notes due December 15, 2024 ("2024 Senior Notes") and 5.000% senior unsecured notes due July 15, 2026 ("2026 Senior Notes" and together with the 2024 Senior Notes, the "Senior Unsecured Notes"). The Company has outstanding 5.000% euro denominated fixed rate notes which are due July 15, 2024 (" 5.000% Euro Fixed Rate Notes"), 4.875% euro denominated fixed rate notes due April 15, 2022 (" 4.875% Euro Fixed Rate Notes"), and floating rate notes due April 15, 2024 ("Euro Floating Rate Notes", together with the 5.000% Euro Fixed Rate Notes and the 4.875% Euro Fixed Notes, the "Senior Secured Notes"). Credit Facilities The Company had availability on its credit facilities as of September 30, 2019 as follows: Credit Facilities as of September 30, 2019 Term Available (b) (in billions) Tenneco Inc. revolving credit facility (a) 2023 $ 1.3 Tenneco Inc. Term Loan A 2023 — Tenneco Inc. Term Loan B 2025 — Subsidiaries’ credit agreements 2020 - 2028 0.1 $ 1.4 (a) The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment. (b) Letters of credit reduce the available borrowings under the revolving credit facility, as of September 30, 2019 the revolving credit facility had $20 million in letters of credit outstanding. Interest expense associated with the amortization of the debt issuance costs and original issue discounts recognized in the Company's condensed consolidated statements of income (loss) consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization of debt issuance fees $ 5 $ 1 $ 14 $ 3 Included in the table above, is the amortization of debt issuance costs on the revolver, which are $19 million at September 30, 2019 and are recorded in "Other assets" in the condensed consolidated balance sheets. In addition, there was a $3 million and $9 million reduction to interest expense during the three and nine months ended September 30, 2019 related to the accretion of the debt premium on the Senior Secured Notes. New Credit Facility — Other Terms and Conditions — The New Credit Facility also contains two financial maintenance covenants for the revolving credit facility and the Term Loan A facility including a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility) as of the end of each fiscal quarter of not greater than 4.0 to 1 through September 30, 2019, 3.75 to 1 through September 30, 2020 and 3.5 to 1 thereafter; and a requirement to maintain a consolidated interest coverage ratio (as defined in the New Credit Facility) for any period of four consecutive fiscal quarters of not less than 2.75 to 1. Senior Unsecured Notes and Senior Secured Notes — Other Terms and Conditions — The Senior Unsecured Notes and Senior Secured Notes contain covenants that will, among other things, limit the Company's ability to create liens and enter into sale and leaseback transactions. In addition, the Senior Secured Notes and 2024 Senior Unsecured Notes also require that, as a condition precedent to incurring certain types of indebtedness not otherwise permitted, the Company's consolidated fixed charge coverage ratio, as calculated on a pro forma basis, be greater than 2.00 , as well as containing restrictions on its operations, including limitations on: (i) incurring additional indebtedness; (ii) paying dividends; (iii) distributions and stock repurchases; (iv) investments; (v) asset sales and (vi) mergers and consolidations. Subject to limited exceptions, all of the Company's existing and future material domestic wholly owned subsidiaries fully and unconditionally guarantee its Senior Unsecured Notes and Senior Secured Notes on a joint and several basis. There are no significant restrictions on the ability of the subsidiaries that have guaranteed the Company's Senior Notes to make distributions to the Company. As of September 30, 2019 , the Company was in compliance with all of its financial covenants. Accounts Receivable Securitization and Factoring On-Balance Sheet Arrangements — The Company has securitization programs for some of its accounts receivables, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Borrowings on securitization programs $ 3 $ 6 Off-Balance Sheet Arrangements — In the Company's European and U.S. accounts receivable factoring programs, accounts receivables are transferred in their entirety to the acquiring entities and are accounted for as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under these factoring programs approximates the fair value of such receivables. Certain programs in Europe have deferred purchase price arrangements with the banks. The Company is the servicer of the receivables under some of these arrangements and is responsible for performing all accounts receivable administration functions. Where the Company receives a fee to service and monitor these transferred accounts receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of such activities. In the U.S and Canada, the Company participates in supply chain financing programs with certain of the Company's aftermarket customers through a drafting program. The amounts outstanding for these factoring and drafting arrangements as of September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 (in billions) Accounts receivable outstanding and derecognized $ 1.1 $ 1.0 The deferred purchase price receivable as of September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Deferred purchase price receivable $ 47 $ 154 Proceeds from the factoring of accounts receivable qualifying as sales are as follows: Three months ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in billions) Proceeds from factoring qualifying as sales $ 1.1 $ 0.6 $ 3.6 $ 2.1 Financing charges associated with the factoring of receivables are as follows: Three months ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Financing charges on sale of receivables (a) $ 9 $ 3 $ 23 $ 8 (a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss). |
Pension Plans, Postretirement a
Pension Plans, Postretirement and Other Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans, Postretirement and Other Employee Benefits | 11. Pension Plans, Postretirement and Other Employee Benefits The Company sponsors several defined benefit pension plans ("Pension Benefits") and health care and life insurance benefits ("Other Postretirement Benefits", or "OPEB") for certain employees and retirees around the world. Components of net periodic benefit cost (credit) for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended September 30 Pension Other Postretirement Benefits 2019 2018 US Non-U.S. US Non-U.S. 2019 2018 Service cost $ 1 $ 6 $ 1 $ 3 $ — $ — Interest cost 13 6 3 3 3 2 Expected return on plan assets (17 ) (5 ) (4 ) (5 ) — — Net amortization: Actuarial loss 1 1 1 2 1 2 Prior service cost (credit) — 1 — — (2 ) — Net pension and postretirement costs (credits) $ (2 ) $ 9 $ 1 $ 3 $ 2 $ 4 Components of net periodic benefit cost (credit) for the nine months ended September 30, 2019 and 2018 are as follows: Nine Months Ended September 30 Pension Other Postretirement Benefits 2019 2018 US Non-U.S. US Non-U.S. 2019 2018 Service cost $ 2 $ 18 $ 1 $ 8 $ — $ — Interest cost 40 18 8 9 10 5 Expected return on plan assets (51 ) (14 ) (11 ) (15 ) — — Net amortization: Actuarial loss 3 4 3 6 3 6 Prior service cost (credit) — 1 — — (6 ) (1 ) Net pension and postretirement costs (credits) $ (6 ) $ 27 $ 1 $ 8 $ 7 $ 10 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes For interim tax reporting, the Company estimates its annual effective tax rate and applies it to 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 effect of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a quarter due to the mix and timing of actual earnings versus annual projections. The tax effects of certain 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. For the three months ended September 30, 2019 , the Company recorded income tax benefit of $9 million on income from continuing operations before income taxes of $ 69 million . This compares to income tax expense of $ 22 million on income from continuing operations before income taxes of $ 88 million in the three months ended September 30, 2018 . For the nine months ended September 30, 2019 , the Company recorded income tax expense of $ 5 million on income from continuing operations before income taxes of $ 23 million . This compares to income tax expense of $ 73 million on income from continuing operations before income taxes of $ 276 million in the nine months ended September 30, 2018 . Income tax expense for the three and nine months ended September 30, 2019 differs from the U.S. statutory rate due primarily to $33 million of net tax benefit recognized relating to a valuation allowance release for an entity in Spain, pre-tax income taxed at rates higher than the U.S. statutory rate, and pre-tax losses with no tax benefit. Income tax expense for the three and nine months ended September 30, 2018 differs from the U.S. statutory rate due primarily to $5 million and $12 million of tax benefit recognized relating to acquisition and restructuring charges, $10 million of tax benefit recognized for valuation allowance release at our Australia entities, pre-tax income taxed at rates lower than the U.S. statutory rate, and pre-tax losses with no tax benefit. In addition, during the three and nine months ended September 30, 2018, $9 million and $11 million of tax expense was recognized for changes in the toll tax discussed below. On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was enacted into U.S. law, which, among other provisions, lowered the corporate income tax rate effective January 1, 2018 from 35% to 21%, and implemented significant changes with respect to U.S. tax treatment of earnings originating from outside the U.S. Many of the provisions of TCJA are subject to regulatory interpretation and U.S. state conforming enactments. The Internal Revenue Service (IRS) issued final regulations, effective on February 5, 2019, which provided additional guidance to assist taxpayers in computing the toll tax. Based on the final regulations a $2 million tax benefit was recognized for the nine months ended September 30, 2019 . The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required or should be adjusted. This assessment considers, among other matters, the nature, frequency and amount of recent losses, the duration of statutory carryforward periods, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. If recent operational improvements continue in our foreign subsidiaries, the Company believes it is reasonably possible sufficient positive evidence may be available to release all, or a portion, of its valuation allowance in the next twelve months in certain jurisdictions. This may result in a one-time tax benefit of up to $4 million , primarily related to China and France. The Company believes it is reasonably possible up to $9 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 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Environmental Matters The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. The Company has been notified by the U.S. Environmental Protection Agency, other national environmental agencies, and various provincial and state agencies it may be a potentially responsible party (“PRP”) under such laws for the cost of remediating hazardous substances pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and other national and state or provincial environmental laws. PRP designation typically requires the funding of site investigations and subsequent remedial activities. Many of the sites that are likely to be the costliest to remediate are often current or former commercial waste disposal facilities to which numerous companies sent wastes. Despite the potential joint and several liability which might be imposed on the Company under CERCLA and some of the other laws pertaining to these sites, its share of the total waste sent to these sites generally has been small. The Company believes its exposure for liability at these sites is not material. On a global basis, the Company has also identified certain other present and former properties at which it may be responsible for cleaning up or addressing environmental contamination, in some cases as a result of contractual commitments and/or federal or state environmental laws. The Company is seeking to resolve its responsibilities for those sites for which a claim has been received. The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. As of September 30, 2019 , the Company has an obligation to remediate or contribute towards the remediation of certain sites, including the sites discussed above at which it may be a PRP. The Company maintains the aggregated estimated share of environmental remediation costs for all these sites on a discounted basis in the condensed consolidated balance sheets as follows: September 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 8 $ 12 Deferred credits and other liabilities 29 28 $ 37 $ 40 For those locations where the liability was discounted, the weighted average discount rate used was 1.3% and 2.9% at September 30, 2019 and December 31, 2018. The Company's expected payments of environmental remediation costs for non-indemnified locations are estimated to be approximately: 2019 2020 2021 2022 2023 2024 and thereafter Expected payments $ 5 $ 5 $ 3 $ 3 $ 2 $ 17 Based on information known to the Company from site investigations and the professional judgment of consultants, the Company has established reserves it believes are adequate for these costs. Although the Company believes these estimates of remediation costs are reasonable and are based on the latest available information, the costs are estimates, difficult to quantify based on the complexity of the issues, and are subject to revision as more information becomes available about the extent of remediation required. At some sites, the Company expects other parties will contribute to the remediation costs. In addition, certain environmental statutes provide the Company's liability could be joint and several, meaning the Company could be required to pay amounts in excess of its share of remediation costs. The financial strength of the other PRPs at these sites has been considered, where appropriate, in the determination of the estimated liability. The Company does not believe any potential costs associated with its current status as a PRP, or as a liable party at the other locations referenced herein, will be material to its annual consolidated financial position, results of operations, or liquidity. Asset Retirement Obligations The Company’s primary asset retirement obligations ("ARO") activities relate to the removal of hazardous building materials at its facilities. The Company records an ARO at fair value upon initial recognition when the amount is probable and can be reasonably estimated. ARO fair values are determined based on the Company’s determination of what a third party would charge to perform the remediation activities, generally using a present value technique. The Company maintains ARO liabilities in the condensed consolidated balance sheets as follows: September 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 3 $ 3 Deferred credits and other liabilities 12 12 $ 15 $ 15 Antitrust Investigations and Litigation On March 25, 2014, representatives of the European Commission (EC) 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 the same date, the Company also received a related subpoena from the U.S. Department of Justice (“DOJ”). On November 5, 2014, the DOJ granted conditional leniency to the Company, its subsidiaries, and its 50% affiliates as of such date ("2014 Tenneco Entities") pursuant to an agreement the Company entered into under the Antitrust Division's Corporate Leniency Policy. This agreement provides important benefits to the 2014 Tenneco Entities in exchange for the Company's self-reporting of matters to the DOJ and its continuing full cooperation with the DOJ's resulting investigation. For example, the DOJ will not bring any criminal antitrust prosecution against the 2014 Tenneco Entities, nor seek any criminal fines or penalties, in connection with the matters the Company reported to the DOJ. Additionally, there are limits on the liability of the 2014 Tenneco Entities related to any follow-on civil antitrust litigation in the United States. 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 the Company satisfying the DOJ and any court presiding over such follow-on civil litigation. On April 27, 2017, the Company received notification from the EC that it has administratively closed its global antitrust inquiry regarding the production, assembly, and supply of complete exhaust systems. No charges against the Company 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 the Company and its subsidiaries, including Federal-Mogul. The Company has cooperated and continues to cooperate fully with all of these antitrust investigations and take other actions to minimize its potential exposure. The Company and certain of its competitors are also currently defendants in civil putative class action litigation and are subject to similar claims filed by other plaintiffs, in the United States and Canada. 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 the DOJ granted conditional leniency to the 2014 Tenneco Entities, the Company's civil liability in U.S. follow-on actions with respect to these entities is limited to single damages and the Company will not be jointly and severally liable with the other defendants, provided that the Company has satisfied its obligations under the DOJ leniency agreement and approval is granted by the presiding court. Typically, exposure for follow-on actions in Canada is less than the exposure for U.S. follow-on actions. Following the EC's decision to administratively close its antitrust inquiry into exhaust systems in 2017, receipt by the 2014 Tenneco Entities of conditional leniency from the DOJ and discussions during the third quarter of 2017 following the appointment of a special settlement master in the civil putative class action cases pending against the Company and/or certain of its competitors in the United States, the Company continues to vigorously defend itself and/or take actions to minimize its potential exposure to matters pertaining to the global antitrust investigation, including engaging in settlement discussions when it is in the best interests of the Company and its stockholders. For example, in October 2017, the Company settled an administrative action brought by Brazil's competition authority for an amount that was not material. In December 2018, the Company settled a separate administrative action brought by Brazil’s competition authority against a Federal-Mogul subsidiary, also for an amount that was not material. Additionally, in February 2018, the Company settled civil putative class action litigation in the United States brought by classes of direct purchasers, end-payors and auto dealers. No other classes of plaintiffs have brought claims against the Company in the United States. Based upon those earlier developments, including settlement discussions, the Company established a reserve of $132 million in its second quarter 2017 financial results for settlement costs that were probable, reasonably estimable, and expected to be necessary to resolve its antitrust matters globally, which primarily involves the resolution of civil suits and related claims. Of the $132 million reserve that was established, $79 million was paid through September 30, 2019 . In connection with the resolution of certain claims, $9 million was released from the reserve in the third quarter of 2019 and the Company expects to pay $30 million in the first quarter of 2020 from amounts that were included in the reserve. The reserve of $44 million as of September 30, 2019 is recorded in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. While the Company, including its Federal-Mogul subsidiaries, continues to cooperate with certain competition agencies investigating possible violations of antitrust laws relating to products supplied by the Company, and the Company may be subject to other civil lawsuits and/or related claims, no amount of this reserve is attributable to matters with the DOJ or the EC, and no such amount is expected based on current information. The Company's reserve for its antitrust matters is based upon all currently available information and an assessment of the probability of events for those matters where the Company can make a reasonable estimate of the costs to resolve such outstanding matters. The Company's estimate involves significant judgment, given the number, variety and potential outcomes of actual and potential claims, the uncertainty of future rulings and approvals by a court or other authority, the behavior or incentives of adverse parties or regulatory authorities, and other factors outside of its control. As a result, the Company's reserve may change from time to time, and actual costs may vary. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, the Company does not expect any such change in the reserve will have a material adverse effect on the Company's annual consolidated financial position, results of operations or liquidity. Other Legal Proceedings, Claims and Investigations For many years the Company has been and continues to be subject to lawsuits initiated by claimants alleging health problems as a result of exposure to asbestos. The Company's current docket of active and inactive cases is less than 500 cases in the United States and less than 50 in Europe. With respect to the claims filed in the United States, the substantial majority of the claims are related to alleged exposure to asbestos in the Company's line of Walker® exhaust automotive products although a significant number of those claims appear also to involve occupational exposures sustained in industries other than automotive. A small number of claims have been asserted against one of the Company's subsidiaries by railroad workers alleging exposure to asbestos products in railroad cars. The Company believes, based on scientific and other evidence, it is unlikely that U.S. claimants were exposed to asbestos by the Company's 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. Additionally, in many cases the plaintiffs either do not specify any, or specify the jurisdictional minimum, dollar amount for damages. With respect to the claims filed in Europe, the substantial majority relate to occupational exposure claims brought by current and former employees of Federal-Mogul facilities in France and amounts paid out were not material. A small number of occupational exposure claims have also been asserted against Federal-Mogul entities in Italy and Spain. As major asbestos manufacturers and/or users continue to go out of business or file for bankruptcy, the Company may experience an increased number of these claims. The Company vigorously defends itself against these claims as part of its ordinary course of business. In future periods, the Company could be subject to cash costs or charges to earnings if any of these matters are resolved unfavorably to the Company. To date, with respect to claims that have proceeded sufficiently through the judicial process, the Company has regularly achieved favorable resolutions. Accordingly, the Company presently believes that these asbestos-related claims will not have a material adverse effect on the Company's annual consolidated financial position, results of operations or liquidity. The Company is also from time to time involved in other legal proceedings, claims or investigations. Some of these matters involve allegations of damages against the Company 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 the Company vigorously defends itself against all of these legal proceedings, claims and investigations and take other actions to minimize its potential exposure, in future periods, the Company 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 the Company's assessment of the merits of the particular claim, except as described above under "Antitrust Investigations and Litigation", the Company does expect the legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its annual consolidated financial position, results of operations or liquidity. Warranty Matters The Company provides warranties on some of its products. The warranty terms vary but range from one year up to limited lifetime warranties on some of its 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 the Company's products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company believes 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 condensed consolidated balance sheets. Below is a table that shows the activity in the warranty accrual accounts: 2019 2018 Balance as of December 31 of the prior year $ 45 $ 26 Accruals related to product warranties 5 6 Reductions for payments made (2 ) (3 ) Foreign currency — — Balance as of March 31 48 29 Accruals related to product warranties 16 2 Reductions for payments made (11 ) (2 ) Foreign currency — — Balance as of June 30 53 29 Accruals related to product warranties 2 5 Reductions for payments made (2 ) (6 ) Foreign currency (1 ) — Balance as of September 30 $ 52 $ 28 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 14. Leases The Company has operating and finance leases for real estate and equipment. Generally, the leases have remaining terms of one month to ten years . Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. In addition, some leases include options to terminate the lease. The Company generally negotiates these termination clauses in anticipation of any changes in market conditions; however, because a termination option requires approval from management, the Company assumes the majority of its termination options will not be exercised when determining the lease term. The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. Lease expense is recorded in operating expenses in the results of operations. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable portion of lease payments is not included in the computation of the right of use assets or lease liabilities. Rather, variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred and are included in "Cost of sales" and "Selling, general, and administrative" within the condensed consolidated statements of income (loss). The Company does not include significant restrictions or covenants in its lease agreements, and residual value guarantees are generally not included within its operating leases. The components of lease expense were as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense $ 33 $ 97 Finance lease expense Amortization of right-of-use assets 1 1 Short-term lease expense 3 7 Variable lease expense 5 25 Sublease income (1 ) (1 ) Total lease expense $ 41 $ 129 Other information related to leases was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43 $ 125 Supplemental balance sheet information related to leases was as follows: September 30, 2019 Operating leases Operating lease right-of-use assets (a) $ 342 Other current liabilities (b) $ 101 Other long-term liabilities (c) 237 Total operating lease liabilities $ 338 Finance leases Property, plant and equipment, gross $ 2 Accumulated depreciation 1 Total finance lease right-of-use assets $ 1 Other current liabilities (b) $ 1 Other long-term liabilities (c) 1 Total finance lease liabilities $ 2 (a) Included in "Other assets" in the condensed consolidated balance sheets. (b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. (c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets. September 30, 2019 Weighted average remaining lease term Weighted average discount rate Operating leases 4.78 years 4.26 % Finance leases 2.82 years 4.33 % Maturities of lease liabilities under non-cancellable leases as of September 30, 2019 were as follows: Year ending December 31 Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 33 $ 1 2020 104 1 2021 80 — 2022 56 — 2023 39 — Thereafter 60 — Total future undiscounted lease payments 372 2 Less imputed interest (34 ) — Total reported lease liability $ 338 $ 2 Future minimum operating lease payments at December 31, 2018 are as follows: 2019 $ 120 2020 100 2021 86 2022 68 2023 56 Beyond 2023 53 $ 483 |
Leases | 14. Leases The Company has operating and finance leases for real estate and equipment. Generally, the leases have remaining terms of one month to ten years . Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. In addition, some leases include options to terminate the lease. The Company generally negotiates these termination clauses in anticipation of any changes in market conditions; however, because a termination option requires approval from management, the Company assumes the majority of its termination options will not be exercised when determining the lease term. The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. Lease expense is recorded in operating expenses in the results of operations. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable portion of lease payments is not included in the computation of the right of use assets or lease liabilities. Rather, variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred and are included in "Cost of sales" and "Selling, general, and administrative" within the condensed consolidated statements of income (loss). The Company does not include significant restrictions or covenants in its lease agreements, and residual value guarantees are generally not included within its operating leases. The components of lease expense were as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense $ 33 $ 97 Finance lease expense Amortization of right-of-use assets 1 1 Short-term lease expense 3 7 Variable lease expense 5 25 Sublease income (1 ) (1 ) Total lease expense $ 41 $ 129 Other information related to leases was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43 $ 125 Supplemental balance sheet information related to leases was as follows: September 30, 2019 Operating leases Operating lease right-of-use assets (a) $ 342 Other current liabilities (b) $ 101 Other long-term liabilities (c) 237 Total operating lease liabilities $ 338 Finance leases Property, plant and equipment, gross $ 2 Accumulated depreciation 1 Total finance lease right-of-use assets $ 1 Other current liabilities (b) $ 1 Other long-term liabilities (c) 1 Total finance lease liabilities $ 2 (a) Included in "Other assets" in the condensed consolidated balance sheets. (b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. (c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets. September 30, 2019 Weighted average remaining lease term Weighted average discount rate Operating leases 4.78 years 4.26 % Finance leases 2.82 years 4.33 % Maturities of lease liabilities under non-cancellable leases as of September 30, 2019 were as follows: Year ending December 31 Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 33 $ 1 2020 104 1 2021 80 — 2022 56 — 2023 39 — Thereafter 60 — Total future undiscounted lease payments 372 2 Less imputed interest (34 ) — Total reported lease liability $ 338 $ 2 Future minimum operating lease payments at December 31, 2018 are as follows: 2019 $ 120 2020 100 2021 86 2022 68 2023 56 Beyond 2023 53 $ 483 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 15. Share-Based Compensation Share-Based Compensation Expense The total share-based compensation expense was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cash-settled share-based compensation expense (benefit) $ — $ — $ — $ (3 ) Share-settled share-based compensation expense (benefit) 7 4 20 11 $ 7 $ 4 $ 20 $ 8 Cash-Settled Awards Prior to 2018, the Company has granted restricted stock units ("RSUs") and long-term performance units ("LTPUs") to certain key employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite period up until date of settlement. At September 30, 2019 , the LTPUs outstanding included a three-year grant for 2017 - 2019 payable in the first quarter of 2020. Share-Settled Awards The Company has granted restricted stock to its directors and certain key employees as well as RSUs and performance share units ("PSUs") that are payable in common stock to certain key employees. These awards are settled in shares upon vesting and recognized in equity based on their fair value. The following table reflects the status for all nonvested restricted shares, share-settled RSUs, and PSUs as of September 30, 2019 and December 31, 2018 : Restricted Stock Share-Settled RSUs PSUs Shares Weighted Avg. Units Weighted Avg. Units Weighted Avg. Nonvested balance at beginning of period 178,550 $ 55.46 440,403 $ 47.99 227,049 $ 49.18 Granted 36,603 34.06 867,137 34.21 634,511 24.77 Vested (172,667 ) 50.18 (90,040 ) 54.60 — — Forfeited (6,619 ) 55.64 (71,705 ) 40.71 (54,455 ) 43.02 Nonvested balance at end of period 35,867 $ 63.27 1,145,795 $ 37.99 807,105 $ 34.15 As of September 30, 2019 , approximately $47 million of total unrecognized compensation costs is expected to be recognized on the share-settled awards over a weighted-average period of approximately 2 years |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 16. Shareholders' Equity Common Stock Outstanding The Company has authorized 175,000,000 shares and 135,000,000 shares ( $0.01 par value) of Class A Common Stock at September 30, 2019 and 2018 . The Company has authorized 25,000,000 shares ( $0.01 par value) of Class B Common Stock at September 30, 2019 . Total common stock outstanding and changes in common stock issued are as follows: Class A Common Stock Class B Common Stock Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 Shares issued at beginning of period 71,675,379 66,033,509 23,793,669 Issuance (repurchased) pursuant to benefit plans 98,716 (18,553 ) — Restricted stock forfeited and withheld for taxes (62,919 ) (8,062 ) — Stock options exercised 8,438 16,199 — Shares issued at end of period 71,719,614 66,023,093 23,793,669 Treasury stock 14,592,888 14,592,888 — Total shares outstanding 57,126,726 51,430,205 23,793,669 Preferred Stock The Company had 50,000,000 shares of preferred stock ( $0.01 par value) authorized at both September 30, 2019 and 2018 . No shares of preferred stock were issued or outstanding at those dates. Accumulated Other Comprehensive Income (Loss) The following represents the Company's changes in accumulated other comprehensive income (loss) by component, net of tax for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign currency translation adjustments and other Balance at beginning of period $ (383 ) $ (336 ) $ (395 ) $ (263 ) Other comprehensive income (loss) before reclassifications adjustments (77 ) (28 ) (66 ) (103 ) Reclassification from other comprehensive income (loss) — — — — Other comprehensive income (loss) (77 ) (28 ) (66 ) (103 ) Income tax provision (benefit) 2 — 3 2 Balance at end of period $ (458 ) $ (364 ) $ (458 ) $ (364 ) Pensions and other postretirement benefits Balance at beginning of period $ (298 ) $ (268 ) $ (297 ) $ (275 ) Other comprehensive income (loss) before reclassifications — — — — Reclassification from other comprehensive income (loss) 2 5 5 14 Other comprehensive income (loss) 2 5 5 14 Income tax provision (benefit) 1 (1 ) (3 ) (3 ) Balance at end of period $ (295 ) $ (264 ) $ (295 ) $ (264 ) Cash flow hedge instruments Balance at beginning of period $ 1 $ — $ — $ — Other comprehensive income (loss) before reclassifications (1 ) — — — Reclassification from other comprehensive income (loss) 1 — 1 — Other comprehensive income (loss) — — 1 — Income tax provision (benefit) — — — — Balance at end of period $ 1 $ — $ 1 $ — Other comprehensive income (loss) attributable to noncontrolling interests $ (22 ) $ (3 ) $ (17 ) $ (2 ) |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information The Company intends to separate its businesses to form two independent companies, DRiV and New Tenneco. As such, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate." Management uses EBITDA including noncontrolling interests as the key performance measure of segment profitability and uses the measure in its financial and operational decision making processes, for internal reporting, and for planning and forecasting purposes to effectively allocate resources. EBITDA including noncontrolling interests is defined as earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization. Segment assets are not presented as it is not a measure reviewed by the Chief Operating Decision Maker in allocating resources and assessing performance. EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with US GAAP and should not be considered an alternative to net income, which is the most directly comparable financial measure to EBITDA including noncontrolling interests that is in accordance with US GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies. The following table summarizes certain of the Company's segment information: Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Corporate Reclass & Elims Total For the Three Months Ended September 30, 2019 Revenues from external customers $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 $ — $ — $ 4,319 Intersegment revenues $ — $ 38 $ 42 $ 9 $ 89 $ — $ (89 ) $ — For the Nine Months Ended September 30, 2019 Revenues from external customers $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 $ — $ — 13,307 Intersegment revenues $ — $ 124 $ 126 $ 31 $ 281 $ — $ (281 ) $ — Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Corporate Reclass & Elims Total For the Three Months Ended September 30, 2018 Revenues from external customers $ 1,602 $ — $ 461 $ 308 $ 2,371 $ — $ — $ 2,371 Intersegment revenues $ — $ — $ 5 $ — $ 5 $ — $ (5 ) $ — For the Nine Months Ended September 30, 2018 Revenues from external customers $ 5,052 $ — $ 1,480 $ 953 $ 7,485 $ — $ — $ 7,485 Intersegment revenues $ — $ — $ 16 $ — $ 16 $ — $ (16 ) $ — Segment EBITDA including noncontrolling interests and the reconciliation to net income (loss) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 EBITDA including noncontrolling interests by Segments: Clean Air $ 169 $ 144 $ 452 $ 443 Powertrain 90 — 303 — Ride Performance 20 14 1 58 Motorparts 113 53 268 153 Corporate (79 ) (39 ) (256 ) (129 ) Total EBITDA including noncontrolling interests 313 172 768 525 Depreciation and amortization (165 ) (60 ) (503 ) (180 ) Earnings (loss) before interest expense, income taxes, and noncontrolling interests 148 112 265 345 Interest expense (79 ) (24 ) (242 ) (69 ) Income tax (expense) benefit 9 (22 ) (5 ) (73 ) Net income (loss) $ 78 $ 66 $ 18 $ 203 Disaggregated Revenue Revenue from contracts with customers is disaggregated by customer type and geography, as it depicts the nature and amount of the Company’s revenue that is aligned with the Company's key growth strategies. In the following tables, revenue is disaggregated accordingly: Reportable Segments By Customer Type Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2019 OE - Substrate $ 775 $ — $ — $ — $ 775 OE - Value add 997 1,082 671 — 2,750 Aftermarket — — — 794 794 Total $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 Nine Months Ended September 30, 2019 OE - Substrate $ 2,258 $ — $ — $ — $ 2,258 OE - Value add 3,120 3,390 2,113 — 8,623 Aftermarket — — — 2,426 2,426 Total $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 Reportable Segments By Customer Type Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2018 OE - Substrate $ 596 $ — $ — $ — $ 596 OE - Value add 1,006 — 461 — 1,467 Aftermarket — — — 308 308 Total $ 1,602 $ — $ 461 $ 308 $ 2,371 Nine Months Ended September 30, 2018 OE - Substrate $ 1,869 $ — $ — $ — $ 1,869 OE - Value add 3,183 — 1,480 — 4,663 Aftermarket — — — 953 $ 953 Total $ 5,052 $ — $ 1,480 $ 953 $ 7,485 Reportable Segments By Geography Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2019 North America $ 759 $ 386 $ 225 $ 513 $ 1,883 Europe, Middle East and Africa 581 502 311 229 1,623 Rest of world 432 194 135 52 813 Total $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 Nine Months Ended September 30, 2019 North America $ 2,352 $ 1,189 $ 685 $ 1,556 $ 5,782 Europe, Middle East and Africa 1,831 1,617 1,038 707 5,193 Rest of world 1,195 584 390 163 2,332 Total $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 Reportable Segments By Geography Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2018 North America $ 735 $ — $ 180 $ 196 $ 1,111 Europe, Middle East and Africa 559 — 177 97 833 Rest of world 308 — 104 15 427 Total $ 1,602 $ — $ 461 $ 308 $ 2,371 Nine Months Ended September 30, 2018 North America $ 2,248 $ — $ 545 $ 594 $ 3,387 Europe, Middle East and Africa 1,839 — 614 310 2,763 Rest of world 965 — 321 49 1,335 Total $ 5,052 $ — $ 1,480 $ 953 $ 7,485 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions Amounts presented as Icahn Automotive Group LLC represent the Company's activity with Auto Plus and Pep Boys. See Note 7, Investment in Nonconsolidated Affiliates , for further information for companies within the tables below that represent equity method investments. The following tables are summaries of the net sales, purchases, and royalty and other income from related parties for the three and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Net Sales Purchases Royalty and Other Income Icahn Automotive Group LLC $ 48 $ — $ 1 PSC Metals, Inc. $ — $ — $ — Anqing TP Goetze Piston Ring Company Limited $ 1 $ 14 $ — Anqing TP Powder Metallurgy Company Limited $ 1 $ 2 $ — Dongsuh Federal-Mogul Industrial Co., Ltd. $ 1 $ 3 $ — Federal-Mogul Powertrain Otomotiv A.S. $ 10 $ 51 $ 1 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 1 $ — Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ 1 $ 5 $ — Federal-Mogul TP Liners, Inc. $ 4 $ — $ — Frenos Hidraulicos Autos $ — $ — $ — Montagewerk Abgastechnik Emden GmbH $ 2 $ — $ — Nine Months Ended September 30, 2019 Net Sales Purchases Royalty and Other Income Icahn Automotive Group LLC $ 138 $ — $ 3 PSC Metals, Inc. $ 1 $ — $ — Anqing TP Goetze Piston Ring Company Limited $ 1 $ 43 $ 1 Anqing TP Powder Metallurgy Company Limited $ 2 $ 5 $ — Dongsuh Federal-Mogul Industrial Co., Ltd. $ 4 $ 10 $ — Federal-Mogul Powertrain Otomotiv A.S. $ 52 $ 155 $ 3 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 6 $ — Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ 3 $ 13 $ — Federal-Mogul TP Liners, Inc. $ 12 $ — $ 1 Frenos Hidraulicos Autos $ 1 $ — $ — Montagewerk Abgastechnik Emden GmbH $ 4 $ — $ — The following table is a summary of amounts due to and from the Company's related parties as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Receivables Payables and accruals Receivables Payables and accruals Icahn Automotive Group LLC $ 63 $ 1 $ 60 $ 12 Anqing TP Goetze Piston Ring Company Limited $ 2 $ 21 $ 1 $ 22 Anqing TP Powder Metallurgy Company Limited $ — $ 1 $ 1 $ 1 Dongsuh Federal-Mogul Industrial Co., Ltd. $ 1 $ 2 $ 1 $ 2 Federal-Mogul Powertrain Otomotiv A.S. $ 3 $ 29 $ 9 $ 16 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 1 $ — $ 1 Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ — $ 2 $ — $ — Federal-Mogul TP Liners, Inc. $ 2 $ 7 $ 2 $ 7 Farloc Argentina SAIC $ 1 $ — $ — $ — Montagewerk Abgastechnik Emden GmbH $ 1 $ — $ — $ — |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Condensed Consolidating Financial Statements | 19. Supplemental Guarantor Condensed Consolidating Financial Statements Basis of Presentation Substantially all of the Company's existing and future material domestic 100% owned subsidiaries (which are referred to as the "Guarantor Subsidiaries") fully and unconditionally guarantee its senior notes 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, the Company's investments are recorded at cost and adjusted for its ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. The condensed consolidating financial information of the Guarantor Subsidiaries should be read in conjunction with the Company's condensed consolidated financial statements and related notes of which this note is an integral part. The accompanying supplemental guarantor consolidating financial statements have been updated to reflect the revision as described in Note 2, Summary of Significant Accounting Policies . The purchase price allocation for the Öhlins Acquisition is preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information. Distributions There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions. STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 1,603 $ 2,716 $ — $ — $ 4,319 Affiliated companies 241 279 — (520 ) — 1,844 2,995 — (520 ) 4,319 Costs and expenses Cost of sales 1,558 2,615 — (520 ) 3,653 Selling, general, and administrative 172 76 1 — 249 Depreciation and amortization 54 110 1 — 165 Engineering, research, and development 33 45 — — 78 Restructuring charges, asset impairments, and other 13 30 — — 43 Goodwill impairment charge 9 — — — 9 1,839 2,876 2 (520 ) 4,197 Other expense (income) Non-service postretirement benefit costs — 2 — — 2 Equity in (income) losses of nonconsolidated affiliates, net of tax (1 ) — — — (1 ) Other (income) expense, net (33 ) 6 — — (27 ) (34 ) 8 — — (26 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 39 111 (2 ) — 148 Interest expense: External, net of interest capitalized 25 — 54 — 79 Affiliated companies, net of interest income (6 ) (13 ) 19 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 20 124 (75 ) — 69 Income tax expense (benefit) 5 (3 ) (11 ) — (9 ) Equity in net income (loss) from affiliated companies 124 — 134 (258 ) — Net income (loss) 139 127 70 (258 ) 78 Less: Net income (loss) attributable to noncontrolling interests — 8 — — 8 Net income (loss) attributable to Tenneco Inc. $ 139 $ 119 $ 70 $ (258 ) $ 70 Comprehensive income (loss) attributable to Tenneco Inc. $ 135 $ 5 $ (2 ) $ (140 ) $ (2 ) STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 990 $ 1,381 $ — $ — $ 2,371 Affiliated companies 145 152 — (297 ) — 1,135 1,533 — (297 ) 2,371 Costs and expenses Cost of sales 960 1,339 — (297 ) 2,002 Selling, general, and administrative 113 25 — — 138 Depreciation and amortization 24 36 — — 60 Engineering, research, and development 20 19 — — 39 Restructuring charges, asset impairments, and other 2 14 — — 16 1,119 1,433 — (297 ) 2,255 Other expense (income) Non-service postretirement benefit costs 3 1 — — 4 Other (income) expense, net (35 ) 29 — 6 — (32 ) 30 — 6 4 Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 48 70 — (6 ) 112 Interest expense: External, net of interest capitalized 10 4 10 — 24 Affiliated companies, net of interest income (5 ) — 5 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 43 66 (15 ) (6 ) 88 Income tax (benefit) expense 12 10 — — 22 Equity in net income (loss) from affiliated companies 37 — 72 (109 ) — Net income (loss) 68 56 57 (115 ) 66 Less: Net income (loss) attributable to noncontrolling interests — 9 — — 9 Net income (loss) attributable to Tenneco Inc. $ 68 $ 47 $ 57 $ (115 ) $ 57 Comprehensive income (loss) attributable to Tenneco Inc. $ 68 $ 47 $ 33 $ (115 ) $ 33 Nine Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 4,984 $ 8,323 $ — $ — $ 13,307 Affiliated companies 694 843 — (1,537 ) — 5,678 9,166 — (1,537 ) 13,307 Costs and expenses Cost of sales 4,852 7,995 — (1,537 ) 11,310 Selling, general, and administrative 498 354 1 — 853 Depreciation and amortization 218 284 1 — 503 Engineering, research, and development 102 146 — — 248 Restructuring charges, asset impairments, and other 64 64 — — 128 Goodwill impairment charge 42 27 — — 69 5,776 8,870 2 (1,537 ) 13,111 Other expense (income) Non-service postretirement benefit costs (1 ) 9 — — 8 Equity in losses of nonconsolidated affiliates, net of tax (3 ) (31 ) — — (34 ) Other (income) expense, net (10 ) (33 ) — — (43 ) (14 ) (55 ) — — (69 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies (84 ) 351 (2 ) — 265 Interest expense: External, net of interest capitalized 30 17 195 — 242 Affiliated companies, net of interest income (20 ) 6 14 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies (94 ) 328 (211 ) — 23 Income tax expense (benefit) (13 ) 54 (36 ) — 5 Equity in net income (loss) from affiliated companies 196 — 154 (350 ) — Net income (loss) 115 274 (21 ) (350 ) 18 Less: Net income (loss) attributable to noncontrolling interests — 39 — — 39 Net income (loss) attributable to Tenneco Inc. $ 115 $ 235 $ (21 ) $ (350 ) $ (21 ) Comprehensive income (loss) attributable to Tenneco Inc. $ 118 $ 133 $ (81 ) $ (251 ) $ (81 ) Nine Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 3,050 $ 4,435 $ — $ — $ 7,485 Affiliated companies 402 464 — (866 ) — 3,452 4,899 — (866 ) 7,485 Costs and expenses Cost of sales 2,951 4,244 — (866 ) 6,329 Selling, general, and administrative 268 175 — — 443 Depreciation and amortization 71 109 — — 180 Engineering, research, and development 57 61 — — 118 Restructuring charges, asset impairments, and other 5 52 — — 57 3,352 4,641 — (866 ) 7,127 Other expense (income) Non-service postretirement benefit costs 9 1 — — 10 Other (income) expense, net (11 ) (2 ) — 16 3 (2 ) (1 ) — 16 13 Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 102 259 — (16 ) 345 Interest expense: External, net of interest capitalized 30 10 29 — 69 Affiliated companies, net of interest income (12 ) — 12 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 84 249 (41 ) (16 ) 276 Income tax (benefit) expense 11 62 — — 73 Equity in net income (loss) from affiliated companies 122 — 205 (327 ) — Net income (loss) 195 187 164 (343 ) 203 Less: Net income (loss) attributable to noncontrolling interests — 39 — — 39 Net income (loss) attributable to Tenneco Inc. $ 195 $ 148 $ 164 $ (343 ) $ 164 Comprehensive income (loss) attributable to Tenneco Inc. $ 195 $ 148 $ 74 $ (343 ) $ 74 BALANCE SHEETS September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated ASSETS Current assets: Cash and cash equivalents $ 201 $ 188 $ — $ — $ 389 Restricted cash — 6 — — 6 Receivables, net 893 1,860 — — 2,753 Inventories, net 940 1,197 — — 2,137 Prepayments and other current assets 156 417 30 — 603 Total current assets 2,190 3,668 30 — 5,888 Property, plant and equipment, net 1,148 2,335 8 — 3,491 Investment in affiliated companies 1,615 — 5,203 (6,818 ) — Long-term receivables, net 9 1 — — 10 Goodwill 497 305 — — 802 Intangibles, net 1,033 545 — — 1,578 Investments in nonconsolidated affiliates 43 462 — — 505 Deferred income taxes 321 236 13 — 570 Other assets 150 375 14 — 539 Total assets $ 7,006 $ 7,927 $ 5,268 $ (6,818 ) $ 13,383 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt, including current maturities of long-term debt $ 1 $ 160 $ — $ — $ 161 Accounts payable 882 1,765 4 — 2,651 Accrued compensation and employee benefits 93 285 — — 378 Accrued income taxes — 57 — — 57 Accrued expenses and other current liabilities 436 556 50 — 1,042 Total current liabilities 1,412 2,823 54 — 4,289 Long-term debt 229 9 5,170 — 5,408 Intercompany due to (due from) 1,830 (200 ) (1,630 ) — — Deferred income taxes — 104 — — 104 Pension, postretirement benefits and other liabilities 768 806 32 — 1,606 Commitments and contingencies Total liabilities 4,239 3,542 3,626 — 11,407 Redeemable noncontrolling interests — 139 — — 139 Tenneco Inc. shareholders’ equity 2,767 4,051 1,642 (6,818 ) 1,642 Noncontrolling interests — 195 — — 195 Total equity 2,767 4,246 1,642 (6,818 ) 1,837 Total liabilities, redeemable noncontrolling interests and equity $ 7,006 $ 7,927 $ 5,268 $ (6,818 ) $ 13,383 BALANCE SHEETS December 31, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated ASSETS Current assets: Cash and cash equivalents $ 329 $ 364 $ 4 $ — $ 697 Restricted cash — 5 — — 5 Receivables, net 943 1,629 — — 2,572 Inventories, net 958 1,287 — — 2,245 Prepayments and other current assets 254 311 25 — 590 Total current assets 2,484 3,596 29 — 6,109 Property, plant and equipment, net 1,131 2,361 9 — 3,501 Investment in affiliated companies 1,421 — 4,856 (6,277 ) — Long-term receivables, net 9 1 — — 10 Goodwill 263 383 223 — 869 Intangibles, net 1,007 510 2 — 1,519 Investments in nonconsolidated affiliates 43 501 — — 544 Deferred income taxes 255 200 12 — 467 Other assets 48 180 — (15 ) 213 Total assets $ 6,661 $ 7,732 $ 5,131 $ (6,292 ) $ 13,232 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt, including current maturities of long-term debt $ 1 $ 152 $ — $ — $ 153 Accounts payable 858 1,894 7 — 2,759 Accrued compensation and employee benefits 88 255 — — 343 Accrued income taxes — 52 27 (15 ) 64 Accrued expenses and other current liabilities 436 488 77 — 1,001 Total current liabilities 1,383 2,841 — 111 (15 ) 4,320 Long-term debt 3 32 5,305 — 5,340 Intercompany due to (due from) 2,726 (215 ) (2,511 ) — — Deferred income taxes — 88 — — 88 Postretirement benefits and other liabilities 225 705 500 — 1,430 Commitments and contingencies Total liabilities 4,337 3,451 3,405 (15 ) 11,178 Redeemable noncontrolling interests — 138 — — 138 Tenneco Inc. shareholders’ equity 2,324 3,953 1,726 (6,277 ) 1,726 Noncontrolling interests — 190 — — 190 Total equity 2,324 4,143 1,726 (6,277 ) 1,916 Total liabilities, redeemable noncontrolling interests and equity $ 6,661 $ 7,732 $ 5,131 $ (6,292 ) $ 13,232 STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Operating Activities Net cash provided (used) by operating activities $ 137 $ 45 $ (115 ) $ (3 ) $ 64 Investing Activities Proceeds from sale of assets 2 6 — — 8 Net proceeds from sale of business 6 16 — — 22 Cash payments for property, plant and equipment (166 ) (375 ) — — (541 ) Acquisition of business, net of cash acquired — (158 ) — — — (158 ) Proceeds from deferred purchase price of factored receivables — 203 — — 203 Other 3 (4 ) 1 — — Net cash provided (used) by investing activities (155 ) (312 ) 1 — (466 ) Financing Activities Proceeds from term loans and notes — 171 — — 171 Repayment of term loans and notes — (201 ) (77 ) — (278 ) Borrowings on revolving lines of credit 6,119 171 514 — 6,804 Payments on revolving lines of credit (5,890 ) (144 ) (514 ) — (6,548 ) Issuance (repurchase) of common shares — — (2 ) — (2 ) Cash dividends — — (20 ) — (20 ) Decrease in bank overdrafts — (12 ) — — (12 ) Net increase (decrease) in short-term borrowings secured by accounts receivable — (3 ) — — (3 ) Other 1 — — — 1 Distribution to noncontrolling interests partners — (20 ) — — (20 ) Intercompany dividends and net (decrease) increase in intercompany obligations (340 ) 128 209 3 — Net cash provided (used) by financing activities (110 ) 90 110 3 93 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 2 — — 2 Increase (decrease) in cash, cash equivalents and restricted cash (128 ) (175 ) (4 ) — (307 ) Cash, cash equivalents and restricted cash, January 1 329 369 4 — 702 Cash, cash equivalents and restricted cash, September 30 $ 201 $ 194 $ — $ — $ 395 STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Operating Activities Net cash provided by (used in) operating activities $ 179 $ (122 ) $ (8 ) $ (12 ) $ 37 Investing Activities Proceeds from sale of assets 1 5 — — 6 Cash payments for property, plant and equipment (98 ) (157 ) — — (255 ) Proceeds from deferred purchase price of factored receivables — 102 — — 102 Other (2 ) — — — (2 ) Net cash used in investing activities (99 ) (50 ) — — (149 ) Financing Activities Proceeds from term loans and notes — 12 — — 12 Repayments of term loans and notes (14 ) (21 ) — — (35 ) Borrowings on revolving lines of credit 3,537 56 458 — 4,051 Payments on revolving lines of credit (3,575 ) (56 ) (443 ) — (4,074 ) Issuance (repurchase) of common shares — — (2 ) — (2 ) Cash dividends — — (39 ) — (39 ) Net increase (decrease) in bank overdrafts — (5 ) — — (5 ) Net increase (decrease) in short-term borrowings secured by accounts receivable — 150 — — 150 Other (2 ) — — — (2 ) Distribution to noncontrolling interests partners — (44 ) — — (44 ) Intercompany dividends and net (decrease) increase in intercompany obligations (28 ) (18 ) 34 12 — Net cash (used in) provided by financing activities (82 ) 74 8 12 12 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — (15 ) — — (15 ) Increase (decrease) in cash, cash equivalents and restricted cash (2 ) (113 ) — — (115 ) Cash, cash equivalents and restricted cash, January 1 7 311 — — 318 Cash, cash equivalents and restricted cash, September 30 $ 5 $ 198 $ — $ — $ 203 |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — Interim Financial Statements Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments (consisting of normal recurring adjustments) management believes are necessary to fairly state the results of operations, comprehensive income, financial position, changes in shareholders' equity, and cash flows. The Company's management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the Securities and Exchange Commission on March 18, 2019. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The Company has previously announced its intentions to separate its businesses through a spinoff transaction in mid-2020 to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). Tenneco remains committed to the separation of the businesses and continues to execute its plan for the spinoff. Additionally, the company is evaluating multiple strategic options to deleverage and facilitate the separation. Certain of these options could help mitigate the effect of challenging market conditions, which, if current trends were to continue, would likely affect the company’s ability to complete a separation in the mid-year 2020 time range. In preparation for the separation, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. See Note 17, Segment Information . |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests — The Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. The redemption of these redeemable noncontrolling interests is not solely within the Company's control. Accordingly, these noncontrolling interests are presented in the temporary equity section of the Company's condensed consolidated balance sheets. The Company does not believe it is probable the redemption features related to these noncontrolling interest securities will be triggered, as a change in control event is generally not probable until it occurs, except as discussed in |
Earnings (loss) per share | Earnings (loss) per share — |
Reclassifications | Reclassifications: Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. These reclassifications have no effect on previously reported earnings before income taxes and noncontrolling interests or net income, other comprehensive income (loss), current or total assets, current or total liabilities, and the cash provided (used) by operating, investing or financing activities within the condensed consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements Adoption of New Accounting Standards Comprehensive income — In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The Company has elected not to adopt the optional reclassification. Leases — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update supersedes the lease requirements in Topic 840, 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 flows 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. The Company adopted this update on January 1, 2019 using the modified retrospective method without the recasting of comparative periods’ financial information, as permitted by the transition guidance. The Company adopted the package of practical expedients that allows companies to not reassess its previous conclusions related to contracts that contain leases, existing lease classification, and initial direct costs, and to carry forward its historical conclusions. It elected the land easements practical expedient allowing the Company not to reassess whether existing or expired land easements not accounted for as leases under previous guidance are or contain leases under the new guidance. It also did not adopt the hindsight practical expedient and has also made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. As a part of the implementation effort, the Company reviewed its internal control structure and modified and augmented existing controls, as necessary. The adoption of the new standard resulted in the recording of additional lease assets and lease liabilities of $387 million and $383 million , and a reduction of favorable lease intangibles of $4 million as of January 1, 2019. The standard did not materially affect the Company's condensed consolidated financial position or results of operations and had no effect on cash flows. See Note 14, Leases . Accounting Standards Issued But Not Yet Adopted Intangibles — In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the potential effect of this new guidance on its financial statements. Retirement benefits — In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The new standard (i) requires the removal of disclosures that are no longer considered cost beneficial; (ii) clarifies specific requirements of certain disclosures; and (iii) adds new disclosure requirements, including reasons for significant gains and losses related to changes in the benefit obligation. The amendments in this update are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company is currently evaluating the potential effect of this new guidance on its financial statements and will include the enhanced disclosures in the consolidated financial statements upon adoption. Fair value measurements — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential effect of this new guidance on its financial statements but does not expect this guidance to have a material effect on its consolidated financial statements. |
Summary of Accounting Policie_2
Summary of Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Redeemable Noncontrolling Interests | The following is a rollforward of activities in the Company's redeemable noncontrolling interests: Nine Months Ended September 30, 2019 2018 Balance at beginning of period $ 138 $ 42 Net income (loss) attributable to redeemable noncontrolling interests 19 22 Other comprehensive income (loss) (10 ) (3 ) Acquisition and other 17 — Purchase accounting measurement period adjustment (8 ) — Dividends declared (17 ) (33 ) Balance at end of period $ 139 $ 28 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Actual weighted average shares outstanding used in calculating earnings (loss) per share were: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Weighted average shares of common stock outstanding 80,916,676 51,272,618 80,903,967 51,247,664 Effect of dilutive securities: Restricted stock, PSUs and RSUs — 93,956 — 95,022 Stock options — 35,255 — 53,241 Dilutive shares outstanding 80,916,676 51,401,829 80,903,967 51,395,927 |
Schedule of Error Corrections and Prior Period Adjustments | The following tables present the effects of these reclassifications and revisions for the condensed consolidated financial statement line items adjusted in the affected periods included within this quarterly report: Three Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of income (loss) Revenues Net sales and operating revenues $ 2,372 $ — $ 2,372 $ (1 ) $ 2,371 Costs and expenses Cost of sales 2,014 (12 ) 2,002 — 2,002 Selling, general, and administrative 141 (4 ) 137 1 138 Depreciation and amortization 65 — 65 (5 ) 60 Engineering, research, and development 39 — 39 — 39 Restructuring charges, asset impairments, and other — 16 16 — 16 2,259 — 2,259 (4 ) 2,255 Other expense (income) Loss on sale of receivables 3 (3 ) — — — Non-service pension and other postretirement benefit costs (credits) — 4 4 — 4 Other expense (income), net 6 (4 ) 2 (2 ) — 9 (3 ) 6 (2 ) 4 Earnings (loss) before interest expense, income taxes, and noncontrolling interests 104 3 107 5 112 Interest expense 21 3 24 — 24 Earnings (loss) before income taxes and noncontrolling interests 83 — 83 5 88 Income tax expense (benefit) 20 — 20 2 22 Net income (loss) 63 — 63 3 66 Less: Net income (loss) attributable to noncontrolling interests 9 — 9 — 9 Net income (loss) attributable to Tenneco Inc. $ 54 $ — $ 54 $ 3 $ 57 Earnings (loss) per share Basic earnings (loss) per share of common stock $ 1.05 $ — $ 1.05 $ 0.06 $ 1.11 Diluted earnings (loss) per share of common stock $ 1.05 $ — $ 1.05 $ 0.06 $ 1.11 Three Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of comprehensive income (loss) Net income (loss) $ 63 $ — $ 63 $ 3 $ 66 Other comprehensive income (loss)—net of tax Foreign currency translation adjustment (31 ) — (31 ) — (31 ) Defined benefit plans 4 — 4 — 4 (27 ) — (27 ) — (27 ) Comprehensive income (loss) 36 — 36 3 39 Less: Comprehensive income (loss) attributable to noncontrolling interests 6 — 6 — 6 Comprehensive income (loss) attributable to common shareholders $ 30 $ — $ 30 $ 3 $ 33 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of income (loss) Revenues Net sales and operating revenues $ 7,483 $ — $ 7,483 $ 2 $ 7,485 Costs and expenses Cost of sales 6,371 (44 ) 6,327 2 6,329 Selling, general, and administrative 450 (8 ) 442 1 443 Depreciation and amortization 183 — 183 (3 ) 180 Engineering, research, and development 122 (5 ) 117 1 118 Restructuring charges, asset impairments, and other — 57 57 — 57 7,126 — 7,126 1 7,127 Other expense (income) Loss on sale of receivables 8 (8 ) — — — Non-service pension and other postretirement benefit costs (credits) — 10 10 — 10 Other expense (income), net 15 (10 ) 5 (2 ) 3 23 (8 ) 15 (2 ) 13 Earnings (loss) before interest expense, income taxes, and noncontrolling interests 334 8 342 3 345 Interest expense 61 8 69 — 69 Earnings (loss) before income taxes and noncontrolling interests 273 — 273 3 276 Income tax expense (benefit) 72 — 72 1 73 Net income (loss) 201 — 201 2 203 Less: Net income (loss) attributable to noncontrolling interests 39 — 39 — 39 Net income (loss) attributable to Tenneco Inc. $ 162 $ — $ 162 $ 2 $ 164 Earnings (loss) per share Basic earnings (loss) per share of common stock $ 3.17 $ — $ 3.17 $ 0.03 $ 3.20 Diluted earnings (loss) per share of common stock $ 3.16 $ — $ 3.16 $ 0.04 $ 3.20 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statement of comprehensive income (loss) Net income (loss) $ 201 $ — $ 201 $ 2 $ 203 Other comprehensive income (loss)—net of tax Foreign currency translation adjustment (104 ) — (104 ) 1 (103 ) Defined benefit plans 11 — 11 — 11 (93 ) — (93 ) 1 (92 ) Comprehensive income (loss) 108 — 108 3 111 Less: Comprehensive income (loss) attributable to noncontrolling interests 37 — 37 — 37 Comprehensive income (loss) attributable to common shareholders $ 71 $ — $ 71 $ 3 $ 74 Nine Months Ended September 30, 2018 As Reported Reclasses As Reclassified Revisions As Revised Condensed consolidated statements of cash flow Operating Activities Net income (loss) $ 201 $ — $ 201 $ 2 $ 203 Net cash provided by (used by) operating activities 37 — 37 — 37 Investing Activities Net cash used by investing activities (149 ) — (149 ) — (149 ) Financing Activities Proceeds from term loans and notes — — — 12 12 Repayments of term loans and notes — (17 ) (17 ) (18 ) (35 ) Retirement of long-term debt (17 ) 17 — — — Borrowings on revolving lines of credit — — — 4,051 4,051 Payments on revolving lines of credit — — — (4,074 ) (4,074 ) Net increase (decrease) in revolver borrowings (29 ) — (29 ) 29 — Issuance (repurchase) of common shares (2 ) — (2 ) — (2 ) Cash dividends (39 ) — (39 ) — (39 ) Debt issuance cost of long-term debt (2 ) 2 — — — Purchase of common stock under the share repurchase program — — — — — Net increase (decrease) in bank overdrafts (5 ) — (5 ) — (5 ) Net increase (decrease) in short-term borrowings secured by accounts receivable 150 — 150 — 150 Other — (2 ) (2 ) — (2 ) Distributions to noncontrolling interest partners (44 ) — (44 ) — (44 ) Net cash provided by (used by) financing activities 12 — 12 — 12 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (15 ) — (15 ) — (15 ) Increase (decrease) in cash, cash equivalents and restricted cash (115 ) — (115 ) — (115 ) Cash, cash equivalents and restricted cash, beginning of period 318 — 318 — 318 Cash, cash equivalents and restricted cash, end of period $ 203 $ — $ 203 $ — $ 203 Three Months Ended September 30, 2018 As Reported Revisions As Revised Condensed consolidated statements of changes in shareholders' equity Accumulated Deficit Balance June 30 $ (864 ) $ (64 ) $ (928 ) Net income (loss) attributable to Tenneco Inc. 54 3 57 Cash dividends declared (14 ) — (14 ) Adjustments to adopt new accounting standards — 1 1 Balance September 30 $ (824 ) $ (60 ) $ (884 ) Accumulated Other Comprehensive Income (loss) Balance June 30 $ (608 ) $ 4 $ (604 ) Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (27 ) (1 ) (28 ) Defined benefit plans 4 — 4 Balance September 30 $ (631 ) $ 3 $ (628 ) Total Tenneco Inc. Shareholders' Equity Balance June 30 $ 717 $ (60 ) $ 657 Net income (loss) attributable to Tenneco Inc. 54 3 57 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (27 ) (1 ) (28 ) Defined benefit plans 4 — 4 Comprehensive income (loss) 31 2 33 Adjustments to adopt new accounting standards — 1 1 Cash dividends declared (14 ) — (14 ) Stock-based compensation, net 3 — 3 Balance September 30 $ 737 $ (57 ) $ 680 Total Equity Balance June 30 $ 761 $ (60 ) $ 701 Net income (loss) 57 3 60 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (28 ) (1 ) (29 ) Defined benefit plans 4 — 4 Comprehensive income (loss) 33 2 35 Adjustments to adopt new accounting standards — 1 1 Cash dividends declared (14 ) — (14 ) Distributions declared to noncontrolling interests (8 ) — (8 ) Stock-based compensation, net 3 — 3 Balance September 30 $ 775 $ (57 ) $ 718 Nine Months Ended September 30, 2018 As Reported Revisions As Revised Condensed consolidated statements of changes in shareholders' equity Accumulated Deficit Balance January 1 $ (946 ) $ (63 ) $ (1,009 ) Net income (loss) attributable to Tenneco Inc. 162 2 164 Cash dividends declared (39 ) — (39 ) Adjustments to adopt new accounting standards (1 ) 1 — Balance September 30 $ (824 ) $ (60 ) $ (884 ) Accumulated Other Comprehensive Income (loss) Balance January 1 $ (541 ) $ 3 $ (538 ) Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (101 ) — (101 ) Defined benefit plans 11 — 11 Balance September 30 $ (631 ) $ 3 $ (628 ) Total Tenneco Inc. Shareholders' Equity Balance January 1 $ 696 $ (60 ) $ 636 Net income (loss) attributable to Tenneco Inc. 162 2 164 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (101 ) — (101 ) Defined benefit plans 11 — 11 Comprehensive income (loss) 72 2 74 Adjustments to adopt new accounting standards (1 ) 1 — Cash dividends declared (39 ) — (39 ) Stock-based compensation, net 9 — 9 Balance September 30 $ 737 $ (57 ) $ 680 Total Equity Balance January 1 $ 742 $ (60 ) $ 682 Net income (loss) 179 2 181 Other comprehensive income (loss)—net of tax: Foreign currency translation adjustment (100 ) — (100 ) Defined benefit plans 11 — 11 Comprehensive income (loss) 90 2 92 Adjustments to adopt new accounting standards (1 ) 1 — Cash dividends declared (39 ) — (39 ) Distributions declared to noncontrolling interests (26 ) — (26 ) Stock-based compensation, net 9 — 9 Balance September 30 $ 775 $ (57 ) $ 718 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the final fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the nine months ended September 30, 2019 : Initial Allocation Adjustments Final Allocation Cash, cash equivalents and restricted cash $ 277 $ — $ 277 Customer notes and accounts receivable 1,258 (4 ) 1,254 Other receivables 62 — 62 Inventories 1,551 (8 ) 1,543 Prepayments and other current assets 198 — 198 Property, plant and equipment 1,711 (28 ) 1,683 Long-term receivables 48 — 48 Goodwill 825 (22 ) 803 Intangibles 1,530 47 1,577 Investments in nonconsolidated affiliates 528 (4 ) 524 Deferred income taxes 166 30 196 Other assets 55 (5 ) 50 Total assets acquired 8,209 6 8,215 Short-term debt, including current maturities of long-term debt 130 — 130 Accounts payable 957 4 961 Accrued compensation and employee benefits 231 — 231 Accrued income taxes 49 — 49 Accrued expenses and other current liabilities 522 (7 ) 515 Long-term debt 1,315 — 1,315 Deferred income taxes 56 24 80 Pension and postretirement benefits 879 — 879 Deferred credits and other liabilities 124 (5 ) 119 Total liabilities assumed 4,263 16 4,279 Redeemable noncontrolling interests 96 (8 ) 88 Noncontrolling interests 143 (2 ) 141 Net assets and noncontrolling interests acquired $ 3,707 $ — $ 3,707 The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the nine months ended September 30, 2019 : Initial Allocation Adjustments Revised Allocation Cash, cash equivalents and restricted cash $ 4 $ — $ 4 Customer notes and accounts receivable 19 — 19 Inventories 31 — 31 Prepayments and other current assets 2 — 2 Property, plant, and equipment 8 — 8 Goodwill 28 2 30 Intangibles 135 (2 ) 133 Other assets 9 — 9 Total assets acquired 236 — 236 Short-term debt, including current maturities of long-term debt 10 — 10 Accounts payable 11 — 11 Accrued compensation and employee benefits 12 — 12 Deferred income taxes 18 — 18 Deferred credits and other liabilities 6 — 6 Total liabilities assumed 57 — 57 Redeemable noncontrolling interest 17 — 17 Net assets acquired $ 162 $ — $ 162 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Other intangible assets acquired include the following: Estimated Fair Value Weighted-Average Useful Lives Definite-lived intangible assets: Customer platforms and relationships $ 37 10 years Technology rights 41 10 years Total definite-lived intangible assets 78 Indefinite-lived intangible assets: Trade names and trademarks 55 Total $ 133 Other intangible assets acquired include the following: Estimated Fair Value Weighted-Average Useful Lives Definite-lived intangible assets: Customer platforms and relationships $ 953 10 years Technology rights 66 10 years Packaged kits know-how 54 10 years Catalogs 47 10 years Licensing agreements 64 4.5 years Land use rights 30 42.8 years Total definite-lived intangible assets 1,214 10.5 years Indefinite-lived intangible assets: Trade names and trademarks 363 Total $ 1,577 |
Pro Forma Information | The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the Federal-Mogul Acquisition, and the related financing, if the transaction had occurred as of January 1, 2017. The pro forma results are not necessarily indicative of either the actual consolidated results had the Federal-Mogul Acquisition occurred on January 1, 2017 or of future consolidated operating results. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net sales and operating revenues $ 4,319 $ 4,283 $ 13,307 $ 13,581 Earnings (loss) before income taxes and noncontrolling interests $ 168 $ 287 $ 369 $ 745 Net income (loss) attributable to Tenneco Inc. $ 84 $ 142 $ 57 $ 313 Basic earnings (loss) per share of common stock $ 1.03 $ 1.75 $ 0.70 $ 3.88 Diluted earnings (loss) per share of common stock $ 1.03 $ 1.75 $ 0.70 $ 3.87 |
Disposal Groups, Including Discontinued Operations | The related assets and liabilities were classified as held for sale as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Assets Receivables $ 8 $ — Inventories 7 33 Other current assets 3 5 Long-lived assets 16 23 Goodwill 4 — Impairment on carrying value (8 ) — Total assets held for sale $ 30 $ 61 Liabilities Accounts payable $ 4 $ 21 Accrued liabilities — 7 Other liabilities 1 11 Total liabilities held for sale $ 5 $ 39 |
Restructuring Charges, Asset _2
Restructuring Charges, Asset Impairments, and Other, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring | For the three and nine months ended September 30, 2019 and 2018 , restructuring charges, asset impairments, and other by segment are as follows: Three Months Ended September 30, 2019 Clean Air Powertrain Ride Performance (1) Motorparts Corporate Total Severance and other charges, net $ 6 $ 11 $ 15 $ 2 $ 1 $ 35 Impairment of assets held for sale — — — 8 — 8 Total restructuring charges, asset impairments, and other $ 6 $ 11 $ 15 $ 10 $ 1 $ 43 (1) The Ride Performance segment includes $10 million of other charges for the three months ended September 30, 2019. Three Months Ended September 30, 2018 Clean Air Powertrain Ride Performance Motorparts Corporate Total Severance and other charges, net $ 1 $ — $ 10 $ 2 $ 1 $ 14 Other non-restructuring asset impairments — — — — 2 2 Total restructuring charges, asset impairments, and other $ 1 $ — $ 10 $ 2 $ 3 $ 16 Nine Months Ended September 30, 2019 Clean Air Powertrain Ride Performance (2) Motorparts Corporate Total Severance and other charges, net $ 25 $ 29 $ 50 $ 12 $ 2 $ 118 Other non-restructuring asset impairments 1 — — 1 — 2 Impairment of assets held for sale — — — 8 — 8 Total asset impairment charges 1 — — 9 — 10 Total restructuring charges, asset impairments, and other $ 26 $ 29 $ 50 $ 21 $ 2 $ 128 (1) The Ride Performance segment includes $8 million, $20 million, and $30 million of other charges for the three months ended March 31, 2019, six months ended June 30, and for the nine months ended September 30, 2019. Nine Months Ended September 30, 2018 Clean Air Powertrain Ride Performance Motorparts Corporate Total Severance and other charges, net $ 19 $ — $ 27 $ 6 $ 3 $ 55 Other non-restructuring asset impairments — — — — 2 2 Total restructuring charges, asset impairments, and other $ 19 $ — $ 27 $ 6 $ 5 $ 57 Amounts related to activities that were charges to restructuring reserves, including costs incurred to support future structural cost reductions, by reportable segments are as follows: Reportable Segments Clean Air Powertrain Ride Performance (1) Motorparts Total Reportable Segments Corporate Total Balance as of December 31, 2018 $ 17 $ 15 $ 25 $ 43 $ 100 $ 3 $ 103 Provisions 5 1 13 4 23 1 24 Payments (6 ) (3 ) (13 ) (14 ) (36 ) (2 ) (38 ) Balance as of March 31, 2019 16 13 25 33 87 2 89 Provisions 14 17 22 8 61 — 61 Revisions to estimates — — — (2 ) (2 ) — (2 ) Payments (2 ) (4 ) (19 ) (7 ) (32 ) (1 ) (33 ) Balance as of June 30, 2019 28 26 28 32 114 1 115 Provisions 6 11 15 4 36 1 37 Revisions to estimates — — — (2 ) (2 ) — (2 ) Payments (7 ) (4 ) (19 ) (13 ) (43 ) (2 ) (45 ) Foreign currency (1 ) — — — (1 ) — (1 ) Balance as of September 30, 2019 $ 26 $ 33 $ 24 $ 21 $ 104 $ — $ 104 (1) The Ride Performance segment includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019. Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Reportable Segments Corporate Total Balance as of December 31, 2017 $ 14 $ — $ 7 $ 4 $ 25 $ — $ 25 Provisions 1 — 8 3 12 — 12 Payments (5 ) — (9 ) (2 ) (16 ) — (16 ) Balance as of March 31, 2018 10 — 6 5 21 — 21 Provisions 17 — 9 1 27 2 29 Payments (3 ) — (10 ) (2 ) (15 ) — (15 ) Balance as of June 30, 2018 24 — 5 4 33 2 35 Provisions 1 — 10 2 13 1 14 Payments (2 ) — (7 ) (5 ) (14 ) (2 ) (16 ) Foreign currency (1 ) — — — (1 ) — (1 ) Balance as of September 30, 2018 $ 22 $ — $ 8 $ 1 $ 31 $ 1 $ 32 The following table provides a summary of the Company's restructuring liabilities and related activity for each type of exit costs: Employee Costs Facility Closure and Other Costs (1) Total Balance as of December 31, 2018 $ 98 $ 5 $ 103 Provisions 11 13 24 Payments (25 ) (13 ) (38 ) Balance as of March 31, 2019 84 5 89 Provisions 44 17 61 Revisions to estimates (2 ) — (2 ) Payments (16 ) (17 ) (33 ) Balance as of June 30, 2019 110 5 115 Provisions 22 15 37 Revisions to estimates (2 ) — (2 ) Payments (29 ) (16 ) (45 ) Foreign currency (1 ) — (1 ) Balance as of September 30, 2019 $ 100 $ 4 $ 104 (1) Facility closure and other costs includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019 related to the Ride Performance segment. Employee Costs Facility Closure and Other Costs Total Balance as of December 31, 2017 $ 19 $ 6 $ 25 Provisions 10 2 12 Payments (13 ) (3 ) (16 ) Balance as of March 31, 2018 16 5 21 Provisions 26 3 29 Payments (12 ) (3 ) (15 ) Balance as of June 30, 2018 30 5 35 Provisions 2 12 14 Payments (4 ) (12 ) (16 ) Foreign currency (1 ) — (1 ) Balance as of September 30, 2018 $ 27 $ 5 $ 32 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | At September 30, 2019 and December 31, 2018 , inventory consists of the following: September 30, 2019 December 31, 2018 Finished goods $ 1,078 $ 1,116 Work in process 519 562 Raw materials 440 457 Materials and supplies 100 110 $ 2,137 $ 2,245 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | At September 30, 2019 and December 31, 2018 , goodwill consists of the following: Nine Months Ended September 30, 2019 Clean Air Powertrain Ride Performance Motorparts Total Gross carrying amount at December 31, 2018 $ 22 $ 388 $ 210 $ 611 $ 1,231 Measurement period adjustments — 21 — (67 ) (46 ) Acquisitions — — 28 — 28 Gross carrying amount at March 31, 2019 22 409 238 544 1,213 Measurement period adjustments — 3 2 3 8 Gross carrying amount at June 30, 2019 22 412 240 547 1,221 Measurement period adjustments — (69 ) 10 77 18 Reclassification to assets held for sale — — — (4 ) (4 ) Foreign exchange (1 ) — (1 ) (1 ) (3 ) Gross carrying amount at September 30, 2019 21 343 249 619 1,232 Accumulated impairment loss at December 31, 2018 — — (143 ) (219 ) (362 ) Impairment — — (60 ) — (60 ) Accumulated impairment loss at March 31, 2019 — — (203 ) (219 ) (422 ) Impairment — — — — — Accumulated impairment loss at June 30, 2019 — — (203 ) (219 ) (422 ) Impairment — — (9 ) — (9 ) Foreign Exchange — — 1 — 1 Accumulated impairment loss at September 30, 2019 — — (211 ) (219 ) (430 ) Net carrying value at end of period $ 21 $ 343 $ 38 $ 400 $ 802 |
Schedule of Indefinite-Lived Intangible Assets | At September 30, 2019 and December 31, 2018, the Company's intangible assets consist of the following: September 30, 2019 December 31, 2018 Useful Lives Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Customer relationships and platforms 10 years $ 985 $ (98 ) $ 887 $ 964 $ (24 ) $ 940 Customer contract 10 years 8 (6 ) 2 8 (5 ) 3 Patents 10 to 17 years 1 (1 ) — 1 (1 ) — Technology rights 10 to 30 years 131 (34 ) 97 98 (27 ) 71 Packaged kits know-how 10 years 54 (5 ) 49 36 (1 ) 35 Catalogs 10 years 47 (5 ) 42 — — — Licensing agreements 3 to 5 years 62 (14 ) 48 66 (3 ) 63 Land use rights 28 to 46 years 45 (3 ) 42 44 (2 ) 42 1,333 (166 ) 1,167 1,217 (63 ) 1,154 Indefinite-lived intangible assets: Trade names and trademarks 411 — 411 365 — 365 Total $ 1,744 $ (166 ) $ 1,578 $ 1,582 $ (63 ) $ 1,519 |
Schedule of Finite-Lived Intangible Assets | At September 30, 2019 and December 31, 2018, the Company's intangible assets consist of the following: September 30, 2019 December 31, 2018 Useful Lives Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Customer relationships and platforms 10 years $ 985 $ (98 ) $ 887 $ 964 $ (24 ) $ 940 Customer contract 10 years 8 (6 ) 2 8 (5 ) 3 Patents 10 to 17 years 1 (1 ) — 1 (1 ) — Technology rights 10 to 30 years 131 (34 ) 97 98 (27 ) 71 Packaged kits know-how 10 years 54 (5 ) 49 36 (1 ) 35 Catalogs 10 years 47 (5 ) 42 — — — Licensing agreements 3 to 5 years 62 (14 ) 48 66 (3 ) 63 Land use rights 28 to 46 years 45 (3 ) 42 44 (2 ) 42 1,333 (166 ) 1,167 1,217 (63 ) 1,154 Indefinite-lived intangible assets: Trade names and trademarks 411 — 411 365 — 365 Total $ 1,744 $ (166 ) $ 1,578 $ 1,582 $ (63 ) $ 1,519 |
Finite-lived Intangible Assets Amortization Expense | The amortization expense associated with definite-lived intangible assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 33 $ — $ 101 $ 1 The expected future amortization expense for the Company's definite-lived intangible assets is as follows: 2019 2020 2021 2022 2023 2024 and thereafter Total Expected amortization expense $ 33 $ 131 $ 130 $ 126 $ 126 $ 621 $ 1,167 |
Investment in Nonconsolidated_2
Investment in Nonconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three and nine months ended September 30, 2019 . The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share: Three Months Ended September 30, 2019 Statements of Income Otomotiv A.S. Anqing TP Goetze Other Total Sales $ 85 $ 33 $ 115 $ 233 Gross profit $ 18 $ 8 $ 20 $ 46 Income from continuing operations $ 13 $ 8 $ 11 $ 32 Net income $ 12 $ 7 $ 9 $ 28 Nine Months Ended September 30, 2019 Statements of Income Otomotiv A.S. Anqing TP Goetze Other Total Sales $ 261 $ 111 $ 360 $ 732 Gross profit $ 61 $ 34 $ 66 $ 161 Income from continuing operations $ 49 $ 28 $ 35 $ 112 Net income $ 51 $ 25 $ 31 $ 107 The Company's ownership interest in affiliates accounted for under the equity method is as follows: September 30, 2019 December 31, 2018 Anqing TP Goetze Piston Ring Company Limited (China) 35.7 % 35.7 % Anqing TP Powder Metallurgy Co., Ltd (China) 20.0 % 20.0 % Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea) 50.0 % 50.0 % Farloc Argentina SAIC Y F (Argentina) 23.9 % 23.9 % Federal-Mogul Powertrain Otomotiv A.S. (Turkey) 50.0 % 50.0 % Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey) 25.0 % 25.0 % Federal-Mogul TP Liners, Inc. (USA) 46.0 % 46.0 % Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico) 49.0 % 49.0 % JURID do Brasil Sistemas Automotivos Ltda. (Brazil) 19.9 % 19.9 % KB Autosys Co., Ltd. (Korea) 33.6 % 33.6 % Montagewerk Abgastechnik Emden GmbH (Germany) 50.0 % 50.0 % The Company's investments in its nonconsolidated affiliates at September 30, 2019 and December 31, 2018 was: September 30, 2019 December 31, 2018 Investments in nonconsolidated affiliates $ 505 $ 544 The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Equity in earnings (losses) of nonconsolidated affiliates, net of tax $ 1 $ — $ 34 $ — Cash dividends received from nonconsolidated affiliates $ 18 $ — $ 45 $ — |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summarization for Foreign Currency Forward Purchase and Sale Contracts | The following table summarizes by position the notional amounts for foreign currency forward contracts as of September 30, 2019 (all of which mature in 2019): Notional Amount Long positions $ (47 ) Short positions $ 47 |
Schedule of Derivative Instruments | The following table is a summary of the carrying value of derivative and non-derivative instruments designated as hedges as of September 30, 2019 : Carrying Value Balance sheet classification September 30, 2019 December 31, 2018 Commodity price hedge contracts designated as cash flow hedges Accrued expenses and other current liabilities $ 1 $ 2 Foreign currency borrowings designated as net investment hedges Long-term debt $ 839 $ 863 The following table represents the effects before reclassification into net income of derivative and non-derivative instruments designated as hedges in accumulated other comprehensive income (loss) three and nine month periods ended September 30, 2019 : Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Commodity price hedge contracts designated as cash flow hedges $ (1 ) $ — Foreign currency borrowings designated as net investment hedges $ 38 $ 45 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying and Estimated Fair Value | The following table presents assets and liabilities included in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis and indicate the fair value hierarchy utilized to determine such fair value: September 30, 2019 December 31, 2018 Fair value Carrying Fair Carrying Fair Derivative instruments: Equity swap agreement Level 2 $ (1 ) $ (1 ) $ 4 $ 4 Commodity contracts Level 2 $ (1 ) $ (1 ) $ (2 ) $ (2 ) Estimated fair values of the Company's outstanding debt were: September 30, 2019 December 31, 2018 Fair value Carrying Fair Carrying Fair Long-term debt (including current maturities): Term loans and senior notes Level 2 $ 5,169 $ 4,963 $ 5,307 $ 5,218 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Obligations | Interest expense associated with the amortization of the debt issuance costs and original issue discounts recognized in the Company's condensed consolidated statements of income (loss) consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization of debt issuance fees $ 5 $ 1 $ 14 $ 3 A summary of our long-term debt obligations at September 30, 2019 and December 31, 2018 is set forth in the following table: September 30, 2019 December 31, 2018 Principal Carrying Amount (1) Principal Carrying Amount (1) Credit Facilities Revolver Borrowings Due 2023 $ 229 $ 229 $ — $ — Term Loans LIBOR plus 1.75% Term Loan A due 2019 through 2023 1,636 1,628 1,700 1,691 LIBOR plus 3.00% Term Loan B due 2019 through 2025 (2) 1,687 1,624 1,700 1,629 Senior Unsecured Notes $225 million of 5.375% Senior Notes due 2024 225 222 225 222 $500 million of 5.000% Senior Notes due 2026 500 494 500 493 Senior Secured Notes €415 million 4.875% Euro Fixed Rate Notes due 2022 452 467 476 496 €300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024 327 331 344 349 €350 million of 5.000% Euro Fixed Rate Notes due 2024 381 403 401 427 Other debt, primarily foreign instruments 81 78 108 106 5,476 5,413 Less - maturities classified as current 68 73 Total long-term debt $ 5,408 $ 5,340 (1) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $80 million and $90 million as of September 30, 2019 and December 31, 2018. Total unamortized debt (premium) discount, net was $(38) million and $(49) million as of September 30, 2019 and December 31, 2018. (2) As of December 31, 2018, the rate on Term Loan B was LIBOR plus 2.75% . |
Financing Arrangements | The Company had availability on its credit facilities as of September 30, 2019 as follows: Credit Facilities as of September 30, 2019 Term Available (b) (in billions) Tenneco Inc. revolving credit facility (a) 2023 $ 1.3 Tenneco Inc. Term Loan A 2023 — Tenneco Inc. Term Loan B 2025 — Subsidiaries’ credit agreements 2020 - 2028 0.1 $ 1.4 (a) The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment. (b) Letters of credit reduce the available borrowings under the revolving credit facility, as of September 30, 2019 the revolving credit facility had $20 million in letters of credit outstanding. |
Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale | The Company has securitization programs for some of its accounts receivables, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Borrowings on securitization programs $ 3 $ 6 The amounts outstanding for these factoring and drafting arrangements as of September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 (in billions) Accounts receivable outstanding and derecognized $ 1.1 $ 1.0 The deferred purchase price receivable as of September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Deferred purchase price receivable $ 47 $ 154 Proceeds from the factoring of accounts receivable qualifying as sales are as follows: Three months ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in billions) Proceeds from factoring qualifying as sales $ 1.1 $ 0.6 $ 3.6 $ 2.1 Financing charges associated with the factoring of receivables are as follows: Three months ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Financing charges on sale of receivables (a) $ 9 $ 3 $ 23 $ 8 (a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss). |
Pension Plans, Postretirement_2
Pension Plans, Postretirement and Other Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost (credit) for the three months ended September 30, 2019 and 2018 are as follows: Three Months Ended September 30 Pension Other Postretirement Benefits 2019 2018 US Non-U.S. US Non-U.S. 2019 2018 Service cost $ 1 $ 6 $ 1 $ 3 $ — $ — Interest cost 13 6 3 3 3 2 Expected return on plan assets (17 ) (5 ) (4 ) (5 ) — — Net amortization: Actuarial loss 1 1 1 2 1 2 Prior service cost (credit) — 1 — — (2 ) — Net pension and postretirement costs (credits) $ (2 ) $ 9 $ 1 $ 3 $ 2 $ 4 Components of net periodic benefit cost (credit) for the nine months ended September 30, 2019 and 2018 are as follows: Nine Months Ended September 30 Pension Other Postretirement Benefits 2019 2018 US Non-U.S. US Non-U.S. 2019 2018 Service cost $ 2 $ 18 $ 1 $ 8 $ — $ — Interest cost 40 18 8 9 10 5 Expected return on plan assets (51 ) (14 ) (11 ) (15 ) — — Net amortization: Actuarial loss 3 4 3 6 3 6 Prior service cost (credit) — 1 — — (6 ) (1 ) Net pension and postretirement costs (credits) $ (6 ) $ 27 $ 1 $ 8 $ 7 $ 10 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Loss Contingencies | The Company maintains the aggregated estimated share of environmental remediation costs for all these sites on a discounted basis in the condensed consolidated balance sheets as follows: September 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 8 $ 12 Deferred credits and other liabilities 29 28 $ 37 $ 40 The Company's expected payments of environmental remediation costs for non-indemnified locations are estimated to be approximately: 2019 2020 2021 2022 2023 2024 and thereafter Expected payments $ 5 $ 5 $ 3 $ 3 $ 2 $ 17 |
Schedule of Asset Retirement Obligations | The Company maintains ARO liabilities in the condensed consolidated balance sheets as follows: September 30, 2019 December 31, 2018 Accrued expenses and other current liabilities $ 3 $ 3 Deferred credits and other liabilities 12 12 $ 15 $ 15 |
Warranty Accrual Table | Below is a table that shows the activity in the warranty accrual accounts: 2019 2018 Balance as of December 31 of the prior year $ 45 $ 26 Accruals related to product warranties 5 6 Reductions for payments made (2 ) (3 ) Foreign currency — — Balance as of March 31 48 29 Accruals related to product warranties 16 2 Reductions for payments made (11 ) (2 ) Foreign currency — — Balance as of June 30 53 29 Accruals related to product warranties 2 5 Reductions for payments made (2 ) (6 ) Foreign currency (1 ) — Balance as of September 30 $ 52 $ 28 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease costs | The components of lease expense were as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense $ 33 $ 97 Finance lease expense Amortization of right-of-use assets 1 1 Short-term lease expense 3 7 Variable lease expense 5 25 Sublease income (1 ) (1 ) Total lease expense $ 41 $ 129 Other information related to leases was as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43 $ 125 September 30, 2019 Weighted average remaining lease term Weighted average discount rate Operating leases 4.78 years 4.26 % Finance leases 2.82 years 4.33 % |
Assets and Liabilities | Supplemental balance sheet information related to leases was as follows: September 30, 2019 Operating leases Operating lease right-of-use assets (a) $ 342 Other current liabilities (b) $ 101 Other long-term liabilities (c) 237 Total operating lease liabilities $ 338 Finance leases Property, plant and equipment, gross $ 2 Accumulated depreciation 1 Total finance lease right-of-use assets $ 1 Other current liabilities (b) $ 1 Other long-term liabilities (c) 1 Total finance lease liabilities $ 2 (a) Included in "Other assets" in the condensed consolidated balance sheets. (b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. (c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets. |
Operating lease liabilities | Maturities of lease liabilities under non-cancellable leases as of September 30, 2019 were as follows: Year ending December 31 Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 33 $ 1 2020 104 1 2021 80 — 2022 56 — 2023 39 — Thereafter 60 — Total future undiscounted lease payments 372 2 Less imputed interest (34 ) — Total reported lease liability $ 338 $ 2 |
Finance lease liabilities | Maturities of lease liabilities under non-cancellable leases as of September 30, 2019 were as follows: Year ending December 31 Operating leases Finance leases 2019 (excluding the nine months ended September 30, 2019) $ 33 $ 1 2020 104 1 2021 80 — 2022 56 — 2023 39 — Thereafter 60 — Total future undiscounted lease payments 372 2 Less imputed interest (34 ) — Total reported lease liability $ 338 $ 2 |
Schedule of Future Minimum Payments Due | Future minimum operating lease payments at December 31, 2018 are as follows: 2019 $ 120 2020 100 2021 86 2022 68 2023 56 Beyond 2023 53 $ 483 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | The total share-based compensation expense was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cash-settled share-based compensation expense (benefit) $ — $ — $ — $ (3 ) Share-settled share-based compensation expense (benefit) 7 4 20 11 $ 7 $ 4 $ 20 $ 8 |
Unvested Restricted Shares | The following table reflects the status for all nonvested restricted shares, share-settled RSUs, and PSUs as of September 30, 2019 and December 31, 2018 : Restricted Stock Share-Settled RSUs PSUs Shares Weighted Avg. Units Weighted Avg. Units Weighted Avg. Nonvested balance at beginning of period 178,550 $ 55.46 440,403 $ 47.99 227,049 $ 49.18 Granted 36,603 34.06 867,137 34.21 634,511 24.77 Vested (172,667 ) 50.18 (90,040 ) 54.60 — — Forfeited (6,619 ) 55.64 (71,705 ) 40.71 (54,455 ) 43.02 Nonvested balance at end of period 35,867 $ 63.27 1,145,795 $ 37.99 807,105 $ 34.15 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stock by Class | Total common stock outstanding and changes in common stock issued are as follows: Class A Common Stock Class B Common Stock Nine Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 Shares issued at beginning of period 71,675,379 66,033,509 23,793,669 Issuance (repurchased) pursuant to benefit plans 98,716 (18,553 ) — Restricted stock forfeited and withheld for taxes (62,919 ) (8,062 ) — Stock options exercised 8,438 16,199 — Shares issued at end of period 71,719,614 66,023,093 23,793,669 Treasury stock 14,592,888 14,592,888 — Total shares outstanding 57,126,726 51,430,205 23,793,669 |
Schedule of AOCI | The following represents the Company's changes in accumulated other comprehensive income (loss) by component, net of tax for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Foreign currency translation adjustments and other Balance at beginning of period $ (383 ) $ (336 ) $ (395 ) $ (263 ) Other comprehensive income (loss) before reclassifications adjustments (77 ) (28 ) (66 ) (103 ) Reclassification from other comprehensive income (loss) — — — — Other comprehensive income (loss) (77 ) (28 ) (66 ) (103 ) Income tax provision (benefit) 2 — 3 2 Balance at end of period $ (458 ) $ (364 ) $ (458 ) $ (364 ) Pensions and other postretirement benefits Balance at beginning of period $ (298 ) $ (268 ) $ (297 ) $ (275 ) Other comprehensive income (loss) before reclassifications — — — — Reclassification from other comprehensive income (loss) 2 5 5 14 Other comprehensive income (loss) 2 5 5 14 Income tax provision (benefit) 1 (1 ) (3 ) (3 ) Balance at end of period $ (295 ) $ (264 ) $ (295 ) $ (264 ) Cash flow hedge instruments Balance at beginning of period $ 1 $ — $ — $ — Other comprehensive income (loss) before reclassifications (1 ) — — — Reclassification from other comprehensive income (loss) 1 — 1 — Other comprehensive income (loss) — — 1 — Income tax provision (benefit) — — — — Balance at end of period $ 1 $ — $ 1 $ — Other comprehensive income (loss) attributable to noncontrolling interests $ (22 ) $ (3 ) $ (17 ) $ (2 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | The following table summarizes certain of the Company's segment information: Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Corporate Reclass & Elims Total For the Three Months Ended September 30, 2019 Revenues from external customers $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 $ — $ — $ 4,319 Intersegment revenues $ — $ 38 $ 42 $ 9 $ 89 $ — $ (89 ) $ — For the Nine Months Ended September 30, 2019 Revenues from external customers $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 $ — $ — 13,307 Intersegment revenues $ — $ 124 $ 126 $ 31 $ 281 $ — $ (281 ) $ — Reportable Segments Clean Air Powertrain Ride Performance Motorparts Total Corporate Reclass & Elims Total For the Three Months Ended September 30, 2018 Revenues from external customers $ 1,602 $ — $ 461 $ 308 $ 2,371 $ — $ — $ 2,371 Intersegment revenues $ — $ — $ 5 $ — $ 5 $ — $ (5 ) $ — For the Nine Months Ended September 30, 2018 Revenues from external customers $ 5,052 $ — $ 1,480 $ 953 $ 7,485 $ — $ — $ 7,485 Intersegment revenues $ — $ — $ 16 $ — $ 16 $ — $ (16 ) $ — Segment EBITDA including noncontrolling interests and the reconciliation to net income (loss) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 EBITDA including noncontrolling interests by Segments: Clean Air $ 169 $ 144 $ 452 $ 443 Powertrain 90 — 303 — Ride Performance 20 14 1 58 Motorparts 113 53 268 153 Corporate (79 ) (39 ) (256 ) (129 ) Total EBITDA including noncontrolling interests 313 172 768 525 Depreciation and amortization (165 ) (60 ) (503 ) (180 ) Earnings (loss) before interest expense, income taxes, and noncontrolling interests 148 112 265 345 Interest expense (79 ) (24 ) (242 ) (69 ) Income tax (expense) benefit 9 (22 ) (5 ) (73 ) Net income (loss) $ 78 $ 66 $ 18 $ 203 |
Disaggregation of Revenue | Revenue from contracts with customers is disaggregated by customer type and geography, as it depicts the nature and amount of the Company’s revenue that is aligned with the Company's key growth strategies. In the following tables, revenue is disaggregated accordingly: Reportable Segments By Customer Type Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2019 OE - Substrate $ 775 $ — $ — $ — $ 775 OE - Value add 997 1,082 671 — 2,750 Aftermarket — — — 794 794 Total $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 Nine Months Ended September 30, 2019 OE - Substrate $ 2,258 $ — $ — $ — $ 2,258 OE - Value add 3,120 3,390 2,113 — 8,623 Aftermarket — — — 2,426 2,426 Total $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 Reportable Segments By Customer Type Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2018 OE - Substrate $ 596 $ — $ — $ — $ 596 OE - Value add 1,006 — 461 — 1,467 Aftermarket — — — 308 308 Total $ 1,602 $ — $ 461 $ 308 $ 2,371 Nine Months Ended September 30, 2018 OE - Substrate $ 1,869 $ — $ — $ — $ 1,869 OE - Value add 3,183 — 1,480 — 4,663 Aftermarket — — — 953 $ 953 Total $ 5,052 $ — $ 1,480 $ 953 $ 7,485 Reportable Segments By Geography Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2019 North America $ 759 $ 386 $ 225 $ 513 $ 1,883 Europe, Middle East and Africa 581 502 311 229 1,623 Rest of world 432 194 135 52 813 Total $ 1,772 $ 1,082 $ 671 $ 794 $ 4,319 Nine Months Ended September 30, 2019 North America $ 2,352 $ 1,189 $ 685 $ 1,556 $ 5,782 Europe, Middle East and Africa 1,831 1,617 1,038 707 5,193 Rest of world 1,195 584 390 163 2,332 Total $ 5,378 $ 3,390 $ 2,113 $ 2,426 $ 13,307 Reportable Segments By Geography Clean Air Powertrain Ride Performance Motorparts Total Three Months Ended September 30, 2018 North America $ 735 $ — $ 180 $ 196 $ 1,111 Europe, Middle East and Africa 559 — 177 97 833 Rest of world 308 — 104 15 427 Total $ 1,602 $ — $ 461 $ 308 $ 2,371 Nine Months Ended September 30, 2018 North America $ 2,248 $ — $ 545 $ 594 $ 3,387 Europe, Middle East and Africa 1,839 — 614 310 2,763 Rest of world 965 — 321 49 1,335 Total $ 5,052 $ — $ 1,480 $ 953 $ 7,485 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables are summaries of the net sales, purchases, and royalty and other income from related parties for the three and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Net Sales Purchases Royalty and Other Income Icahn Automotive Group LLC $ 48 $ — $ 1 PSC Metals, Inc. $ — $ — $ — Anqing TP Goetze Piston Ring Company Limited $ 1 $ 14 $ — Anqing TP Powder Metallurgy Company Limited $ 1 $ 2 $ — Dongsuh Federal-Mogul Industrial Co., Ltd. $ 1 $ 3 $ — Federal-Mogul Powertrain Otomotiv A.S. $ 10 $ 51 $ 1 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 1 $ — Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ 1 $ 5 $ — Federal-Mogul TP Liners, Inc. $ 4 $ — $ — Frenos Hidraulicos Autos $ — $ — $ — Montagewerk Abgastechnik Emden GmbH $ 2 $ — $ — Nine Months Ended September 30, 2019 Net Sales Purchases Royalty and Other Income Icahn Automotive Group LLC $ 138 $ — $ 3 PSC Metals, Inc. $ 1 $ — $ — Anqing TP Goetze Piston Ring Company Limited $ 1 $ 43 $ 1 Anqing TP Powder Metallurgy Company Limited $ 2 $ 5 $ — Dongsuh Federal-Mogul Industrial Co., Ltd. $ 4 $ 10 $ — Federal-Mogul Powertrain Otomotiv A.S. $ 52 $ 155 $ 3 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 6 $ — Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ 3 $ 13 $ — Federal-Mogul TP Liners, Inc. $ 12 $ — $ 1 Frenos Hidraulicos Autos $ 1 $ — $ — Montagewerk Abgastechnik Emden GmbH $ 4 $ — $ — The following table is a summary of amounts due to and from the Company's related parties as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Receivables Payables and accruals Receivables Payables and accruals Icahn Automotive Group LLC $ 63 $ 1 $ 60 $ 12 Anqing TP Goetze Piston Ring Company Limited $ 2 $ 21 $ 1 $ 22 Anqing TP Powder Metallurgy Company Limited $ — $ 1 $ 1 $ 1 Dongsuh Federal-Mogul Industrial Co., Ltd. $ 1 $ 2 $ 1 $ 2 Federal-Mogul Powertrain Otomotiv A.S. $ 3 $ 29 $ 9 $ 16 Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. $ — $ 1 $ — $ 1 Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. $ — $ 2 $ — $ — Federal-Mogul TP Liners, Inc. $ 2 $ 7 $ 2 $ 7 Farloc Argentina SAIC $ 1 $ — $ — $ — Montagewerk Abgastechnik Emden GmbH $ 1 $ — $ — $ — |
Supplemental Guarantor Conden_2
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Statement of Comprehensive Income (Loss) | STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 1,603 $ 2,716 $ — $ — $ 4,319 Affiliated companies 241 279 — (520 ) — 1,844 2,995 — (520 ) 4,319 Costs and expenses Cost of sales 1,558 2,615 — (520 ) 3,653 Selling, general, and administrative 172 76 1 — 249 Depreciation and amortization 54 110 1 — 165 Engineering, research, and development 33 45 — — 78 Restructuring charges, asset impairments, and other 13 30 — — 43 Goodwill impairment charge 9 — — — 9 1,839 2,876 2 (520 ) 4,197 Other expense (income) Non-service postretirement benefit costs — 2 — — 2 Equity in (income) losses of nonconsolidated affiliates, net of tax (1 ) — — — (1 ) Other (income) expense, net (33 ) 6 — — (27 ) (34 ) 8 — — (26 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 39 111 (2 ) — 148 Interest expense: External, net of interest capitalized 25 — 54 — 79 Affiliated companies, net of interest income (6 ) (13 ) 19 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 20 124 (75 ) — 69 Income tax expense (benefit) 5 (3 ) (11 ) — (9 ) Equity in net income (loss) from affiliated companies 124 — 134 (258 ) — Net income (loss) 139 127 70 (258 ) 78 Less: Net income (loss) attributable to noncontrolling interests — 8 — — 8 Net income (loss) attributable to Tenneco Inc. $ 139 $ 119 $ 70 $ (258 ) $ 70 Comprehensive income (loss) attributable to Tenneco Inc. $ 135 $ 5 $ (2 ) $ (140 ) $ (2 ) STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 990 $ 1,381 $ — $ — $ 2,371 Affiliated companies 145 152 — (297 ) — 1,135 1,533 — (297 ) 2,371 Costs and expenses Cost of sales 960 1,339 — (297 ) 2,002 Selling, general, and administrative 113 25 — — 138 Depreciation and amortization 24 36 — — 60 Engineering, research, and development 20 19 — — 39 Restructuring charges, asset impairments, and other 2 14 — — 16 1,119 1,433 — (297 ) 2,255 Other expense (income) Non-service postretirement benefit costs 3 1 — — 4 Other (income) expense, net (35 ) 29 — 6 — (32 ) 30 — 6 4 Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 48 70 — (6 ) 112 Interest expense: External, net of interest capitalized 10 4 10 — 24 Affiliated companies, net of interest income (5 ) — 5 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 43 66 (15 ) (6 ) 88 Income tax (benefit) expense 12 10 — — 22 Equity in net income (loss) from affiliated companies 37 — 72 (109 ) — Net income (loss) 68 56 57 (115 ) 66 Less: Net income (loss) attributable to noncontrolling interests — 9 — — 9 Net income (loss) attributable to Tenneco Inc. $ 68 $ 47 $ 57 $ (115 ) $ 57 Comprehensive income (loss) attributable to Tenneco Inc. $ 68 $ 47 $ 33 $ (115 ) $ 33 Nine Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 4,984 $ 8,323 $ — $ — $ 13,307 Affiliated companies 694 843 — (1,537 ) — 5,678 9,166 — (1,537 ) 13,307 Costs and expenses Cost of sales 4,852 7,995 — (1,537 ) 11,310 Selling, general, and administrative 498 354 1 — 853 Depreciation and amortization 218 284 1 — 503 Engineering, research, and development 102 146 — — 248 Restructuring charges, asset impairments, and other 64 64 — — 128 Goodwill impairment charge 42 27 — — 69 5,776 8,870 2 (1,537 ) 13,111 Other expense (income) Non-service postretirement benefit costs (1 ) 9 — — 8 Equity in losses of nonconsolidated affiliates, net of tax (3 ) (31 ) — — (34 ) Other (income) expense, net (10 ) (33 ) — — (43 ) (14 ) (55 ) — — (69 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies (84 ) 351 (2 ) — 265 Interest expense: External, net of interest capitalized 30 17 195 — 242 Affiliated companies, net of interest income (20 ) 6 14 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies (94 ) 328 (211 ) — 23 Income tax expense (benefit) (13 ) 54 (36 ) — 5 Equity in net income (loss) from affiliated companies 196 — 154 (350 ) — Net income (loss) 115 274 (21 ) (350 ) 18 Less: Net income (loss) attributable to noncontrolling interests — 39 — — 39 Net income (loss) attributable to Tenneco Inc. $ 115 $ 235 $ (21 ) $ (350 ) $ (21 ) Comprehensive income (loss) attributable to Tenneco Inc. $ 118 $ 133 $ (81 ) $ (251 ) $ (81 ) Nine Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Revenues Net sales and operating revenues: External $ 3,050 $ 4,435 $ — $ — $ 7,485 Affiliated companies 402 464 — (866 ) — 3,452 4,899 — (866 ) 7,485 Costs and expenses Cost of sales 2,951 4,244 — (866 ) 6,329 Selling, general, and administrative 268 175 — — 443 Depreciation and amortization 71 109 — — 180 Engineering, research, and development 57 61 — — 118 Restructuring charges, asset impairments, and other 5 52 — — 57 3,352 4,641 — (866 ) 7,127 Other expense (income) Non-service postretirement benefit costs 9 1 — — 10 Other (income) expense, net (11 ) (2 ) — 16 3 (2 ) (1 ) — 16 13 Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 102 259 — (16 ) 345 Interest expense: External, net of interest capitalized 30 10 29 — 69 Affiliated companies, net of interest income (12 ) — 12 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies 84 249 (41 ) (16 ) 276 Income tax (benefit) expense 11 62 — — 73 Equity in net income (loss) from affiliated companies 122 — 205 (327 ) — Net income (loss) 195 187 164 (343 ) 203 Less: Net income (loss) attributable to noncontrolling interests — 39 — — 39 Net income (loss) attributable to Tenneco Inc. $ 195 $ 148 $ 164 $ (343 ) $ 164 Comprehensive income (loss) attributable to Tenneco Inc. $ 195 $ 148 $ 74 $ (343 ) $ 74 |
Balance Sheet | BALANCE SHEETS September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated ASSETS Current assets: Cash and cash equivalents $ 201 $ 188 $ — $ — $ 389 Restricted cash — 6 — — 6 Receivables, net 893 1,860 — — 2,753 Inventories, net 940 1,197 — — 2,137 Prepayments and other current assets 156 417 30 — 603 Total current assets 2,190 3,668 30 — 5,888 Property, plant and equipment, net 1,148 2,335 8 — 3,491 Investment in affiliated companies 1,615 — 5,203 (6,818 ) — Long-term receivables, net 9 1 — — 10 Goodwill 497 305 — — 802 Intangibles, net 1,033 545 — — 1,578 Investments in nonconsolidated affiliates 43 462 — — 505 Deferred income taxes 321 236 13 — 570 Other assets 150 375 14 — 539 Total assets $ 7,006 $ 7,927 $ 5,268 $ (6,818 ) $ 13,383 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt, including current maturities of long-term debt $ 1 $ 160 $ — $ — $ 161 Accounts payable 882 1,765 4 — 2,651 Accrued compensation and employee benefits 93 285 — — 378 Accrued income taxes — 57 — — 57 Accrued expenses and other current liabilities 436 556 50 — 1,042 Total current liabilities 1,412 2,823 54 — 4,289 Long-term debt 229 9 5,170 — 5,408 Intercompany due to (due from) 1,830 (200 ) (1,630 ) — — Deferred income taxes — 104 — — 104 Pension, postretirement benefits and other liabilities 768 806 32 — 1,606 Commitments and contingencies Total liabilities 4,239 3,542 3,626 — 11,407 Redeemable noncontrolling interests — 139 — — 139 Tenneco Inc. shareholders’ equity 2,767 4,051 1,642 (6,818 ) 1,642 Noncontrolling interests — 195 — — 195 Total equity 2,767 4,246 1,642 (6,818 ) 1,837 Total liabilities, redeemable noncontrolling interests and equity $ 7,006 $ 7,927 $ 5,268 $ (6,818 ) $ 13,383 BALANCE SHEETS December 31, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated ASSETS Current assets: Cash and cash equivalents $ 329 $ 364 $ 4 $ — $ 697 Restricted cash — 5 — — 5 Receivables, net 943 1,629 — — 2,572 Inventories, net 958 1,287 — — 2,245 Prepayments and other current assets 254 311 25 — 590 Total current assets 2,484 3,596 29 — 6,109 Property, plant and equipment, net 1,131 2,361 9 — 3,501 Investment in affiliated companies 1,421 — 4,856 (6,277 ) — Long-term receivables, net 9 1 — — 10 Goodwill 263 383 223 — 869 Intangibles, net 1,007 510 2 — 1,519 Investments in nonconsolidated affiliates 43 501 — — 544 Deferred income taxes 255 200 12 — 467 Other assets 48 180 — (15 ) 213 Total assets $ 6,661 $ 7,732 $ 5,131 $ (6,292 ) $ 13,232 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt, including current maturities of long-term debt $ 1 $ 152 $ — $ — $ 153 Accounts payable 858 1,894 7 — 2,759 Accrued compensation and employee benefits 88 255 — — 343 Accrued income taxes — 52 27 (15 ) 64 Accrued expenses and other current liabilities 436 488 77 — 1,001 Total current liabilities 1,383 2,841 — 111 (15 ) 4,320 Long-term debt 3 32 5,305 — 5,340 Intercompany due to (due from) 2,726 (215 ) (2,511 ) — — Deferred income taxes — 88 — — 88 Postretirement benefits and other liabilities 225 705 500 — 1,430 Commitments and contingencies Total liabilities 4,337 3,451 3,405 (15 ) 11,178 Redeemable noncontrolling interests — 138 — — 138 Tenneco Inc. shareholders’ equity 2,324 3,953 1,726 (6,277 ) 1,726 Noncontrolling interests — 190 — — 190 Total equity 2,324 4,143 1,726 (6,277 ) 1,916 Total liabilities, redeemable noncontrolling interests and equity $ 6,661 $ 7,732 $ 5,131 $ (6,292 ) $ 13,232 |
Statement of Cash Flows | STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2019 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Operating Activities Net cash provided (used) by operating activities $ 137 $ 45 $ (115 ) $ (3 ) $ 64 Investing Activities Proceeds from sale of assets 2 6 — — 8 Net proceeds from sale of business 6 16 — — 22 Cash payments for property, plant and equipment (166 ) (375 ) — — (541 ) Acquisition of business, net of cash acquired — (158 ) — — — (158 ) Proceeds from deferred purchase price of factored receivables — 203 — — 203 Other 3 (4 ) 1 — — Net cash provided (used) by investing activities (155 ) (312 ) 1 — (466 ) Financing Activities Proceeds from term loans and notes — 171 — — 171 Repayment of term loans and notes — (201 ) (77 ) — (278 ) Borrowings on revolving lines of credit 6,119 171 514 — 6,804 Payments on revolving lines of credit (5,890 ) (144 ) (514 ) — (6,548 ) Issuance (repurchase) of common shares — — (2 ) — (2 ) Cash dividends — — (20 ) — (20 ) Decrease in bank overdrafts — (12 ) — — (12 ) Net increase (decrease) in short-term borrowings secured by accounts receivable — (3 ) — — (3 ) Other 1 — — — 1 Distribution to noncontrolling interests partners — (20 ) — — (20 ) Intercompany dividends and net (decrease) increase in intercompany obligations (340 ) 128 209 3 — Net cash provided (used) by financing activities (110 ) 90 110 3 93 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 2 — — 2 Increase (decrease) in cash, cash equivalents and restricted cash (128 ) (175 ) (4 ) — (307 ) Cash, cash equivalents and restricted cash, January 1 329 369 4 — 702 Cash, cash equivalents and restricted cash, September 30 $ 201 $ 194 $ — $ — $ 395 STATEMENT OF CASH FLOWS Nine Months Ended September 30, 2018 Guarantor Nonguarantor Tenneco Inc. Reclass Consolidated Operating Activities Net cash provided by (used in) operating activities $ 179 $ (122 ) $ (8 ) $ (12 ) $ 37 Investing Activities Proceeds from sale of assets 1 5 — — 6 Cash payments for property, plant and equipment (98 ) (157 ) — — (255 ) Proceeds from deferred purchase price of factored receivables — 102 — — 102 Other (2 ) — — — (2 ) Net cash used in investing activities (99 ) (50 ) — — (149 ) Financing Activities Proceeds from term loans and notes — 12 — — 12 Repayments of term loans and notes (14 ) (21 ) — — (35 ) Borrowings on revolving lines of credit 3,537 56 458 — 4,051 Payments on revolving lines of credit (3,575 ) (56 ) (443 ) — (4,074 ) Issuance (repurchase) of common shares — — (2 ) — (2 ) Cash dividends — — (39 ) — (39 ) Net increase (decrease) in bank overdrafts — (5 ) — — (5 ) Net increase (decrease) in short-term borrowings secured by accounts receivable — 150 — — 150 Other (2 ) — — — (2 ) Distribution to noncontrolling interests partners — (44 ) — — (44 ) Intercompany dividends and net (decrease) increase in intercompany obligations (28 ) (18 ) 34 12 — Net cash (used in) provided by financing activities (82 ) 74 8 12 12 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — (15 ) — — (15 ) Increase (decrease) in cash, cash equivalents and restricted cash (2 ) (113 ) — — (115 ) Cash, cash equivalents and restricted cash, January 1 7 311 — — 318 Cash, cash equivalents and restricted cash, September 30 $ 5 $ 198 $ — $ — $ 203 |
Description of Business - Addit
Description of Business - Additional Information (Details) | Sep. 30, 2019 | Jan. 10, 2019 | Oct. 01, 2018 |
Öhlins Intressenter AB | |||
Business Acquisition [Line Items] | |||
Percentage of business acquired | 90.50% | 90.50% | |
Federal-Mogul | |||
Business Acquisition [Line Items] | |||
Percentage of business acquired | 100.00% |
Summary of Accounting Policie_3
Summary of Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019USD ($) | Mar. 31, 2019Segment | Mar. 31, 2018Segment | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2019Segment | Dec. 31, 2018Segment | Jan. 01, 2019USD ($) | |
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Number of operating segments | Segment | 2 | 3 | 4 | 3 | ||||
Purchase accounting measurement period adjustment | $ 8 | $ 0 | ||||||
ROU asset | $ 342 | 342 | ||||||
Lease liability | 338 | 338 | ||||||
Federal-Mogul | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Purchase accounting measurement period adjustment | 8 | |||||||
ASU 2016-02 | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
ROU asset | $ 387 | |||||||
Lease liability | 383 | |||||||
Reduction in favorable leases | $ 4 | |||||||
Forecast | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Number of operating segments | Segment | 2 | |||||||
Ride Performance | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Adjustments related to prior periods | $ 5 | $ 5 |
Summary of Accounting Policie_4
Summary of Accounting Policies - Redeemable Non Controlling Interest (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance at beginning of period | $ 138 | $ 42 |
Net income (loss) attributable to redeemable noncontrolling interests | 19 | 22 |
Other comprehensive income (loss) | (10) | (3) |
Acquisition and other | 17 | 0 |
Purchase accounting measurement period adjustment | (8) | 0 |
Dividends declared | (17) | (33) |
Balance at end of period | $ 139 | $ 28 |
Summary of Accounting Policie_5
Summary of Accounting Policies - Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted average shares of common stock outstanding (in shares) | 80,916,676 | 51,272,618 | 80,903,967 | 51,247,664 |
Dilutive shares outstanding (in shares) | 80,916,676 | 51,401,829 | 80,903,967 | 51,395,927 |
Anti-dilutive shares (in shares) | 1,895,180 | 124,865 | 1,865,345 | 124,606 |
Restricted stock, PSUs and RSUs | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 93,956 | 0 | 95,022 |
Stock options | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 35,255 | 0 | 53,241 |
Summary of Accounting Policie_6
Summary of Accounting Policies - Error Correction, Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales and operating revenues | $ 4,319 | $ 2,371 | $ 13,307 | $ 7,485 |
Cost of sales | 3,653 | 2,002 | 11,310 | 6,329 |
Selling, general, and administrative | 249 | 138 | 853 | 443 |
Depreciation and amortization | 165 | 60 | 503 | 180 |
Engineering, research, and development | 78 | 39 | 248 | 118 |
Restructuring charges, asset impairments, and other | 43 | 16 | 128 | 57 |
Costs and expenses | 4,197 | 2,255 | 13,111 | 7,127 |
Loss on sale of receivables | 0 | 0 | ||
Non-service pension and other postretirement benefit costs (credits) | 2 | 4 | 8 | 10 |
Other expense (income), net | (27) | 0 | (43) | 3 |
Total other expense (income) | (26) | 4 | (69) | 13 |
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 148 | 112 | 265 | 345 |
Interest expense | 79 | 24 | 242 | 69 |
Earnings (loss) before income taxes and noncontrolling interests | 69 | 88 | 23 | 276 |
Income tax expense (benefit) | (9) | 22 | 5 | 73 |
Net income (loss) | 78 | 66 | 18 | 203 |
Less: Net income (loss) attributable to noncontrolling interests | 8 | 9 | 39 | 39 |
Net income (loss) attributable to Tenneco Inc. | $ 70 | $ 57 | $ (21) | $ 164 |
Basic earnings (loss) per share of common stock (in dollars per share) | $ 0.87 | $ 1.11 | $ (0.25) | $ 3.20 |
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 0.87 | $ 1.11 | $ (0.25) | $ 3.20 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales and operating revenues | $ 2,372 | $ 7,483 | ||
Cost of sales | 2,014 | 6,371 | ||
Selling, general, and administrative | 141 | 450 | ||
Depreciation and amortization | 65 | 183 | ||
Engineering, research, and development | 39 | 122 | ||
Restructuring charges, asset impairments, and other | 0 | 0 | ||
Costs and expenses | 2,259 | 7,126 | ||
Loss on sale of receivables | 3 | 8 | ||
Non-service pension and other postretirement benefit costs (credits) | 0 | 0 | ||
Other expense (income), net | 6 | 15 | ||
Total other expense (income) | 9 | 23 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 104 | 334 | ||
Interest expense | 21 | 61 | ||
Earnings (loss) before income taxes and noncontrolling interests | 83 | 273 | ||
Income tax expense (benefit) | 20 | 72 | ||
Net income (loss) | 63 | 201 | ||
Less: Net income (loss) attributable to noncontrolling interests | 9 | 39 | ||
Net income (loss) attributable to Tenneco Inc. | $ 54 | $ 162 | ||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 1.05 | $ 3.17 | ||
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 1.05 | $ 3.16 | ||
Reclasses | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales and operating revenues | $ 0 | $ 0 | ||
Cost of sales | (12) | (44) | ||
Selling, general, and administrative | (4) | (8) | ||
Depreciation and amortization | 0 | 0 | ||
Engineering, research, and development | 0 | (5) | ||
Restructuring charges, asset impairments, and other | 16 | 57 | ||
Costs and expenses | 0 | 0 | ||
Loss on sale of receivables | (3) | (8) | ||
Non-service pension and other postretirement benefit costs (credits) | 4 | 10 | ||
Other expense (income), net | (4) | (10) | ||
Total other expense (income) | (3) | (8) | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 3 | 8 | ||
Interest expense | 3 | 8 | ||
Earnings (loss) before income taxes and noncontrolling interests | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | ||
Net income (loss) attributable to Tenneco Inc. | $ 0 | $ 0 | ||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 0 | $ 0 | ||
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 0 | $ 0 | ||
As Reclassified | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales and operating revenues | $ 2,372 | $ 7,483 | ||
Cost of sales | 2,002 | 6,327 | ||
Selling, general, and administrative | 137 | 442 | ||
Depreciation and amortization | 65 | 183 | ||
Engineering, research, and development | 39 | 117 | ||
Restructuring charges, asset impairments, and other | 16 | 57 | ||
Costs and expenses | 2,259 | 7,126 | ||
Loss on sale of receivables | 0 | 0 | ||
Non-service pension and other postretirement benefit costs (credits) | 4 | 10 | ||
Other expense (income), net | 2 | 5 | ||
Total other expense (income) | 6 | 15 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 107 | 342 | ||
Interest expense | 24 | 69 | ||
Earnings (loss) before income taxes and noncontrolling interests | 83 | 273 | ||
Income tax expense (benefit) | 20 | 72 | ||
Net income (loss) | 63 | 201 | ||
Less: Net income (loss) attributable to noncontrolling interests | 9 | 39 | ||
Net income (loss) attributable to Tenneco Inc. | $ 54 | $ 162 | ||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 1.05 | $ 3.17 | ||
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 1.05 | $ 3.16 | ||
Revisions | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales and operating revenues | $ (1) | $ 2 | ||
Cost of sales | 0 | 2 | ||
Selling, general, and administrative | 1 | 1 | ||
Depreciation and amortization | (5) | (3) | ||
Engineering, research, and development | 0 | 1 | ||
Restructuring charges, asset impairments, and other | 0 | 0 | ||
Costs and expenses | (4) | 1 | ||
Loss on sale of receivables | 0 | 0 | ||
Non-service pension and other postretirement benefit costs (credits) | 0 | 0 | ||
Other expense (income), net | (2) | (2) | ||
Total other expense (income) | (2) | (2) | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 5 | 3 | ||
Interest expense | 0 | 0 | ||
Earnings (loss) before income taxes and noncontrolling interests | 5 | 3 | ||
Income tax expense (benefit) | 2 | 1 | ||
Net income (loss) | 3 | 2 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | ||
Net income (loss) attributable to Tenneco Inc. | $ 3 | $ 2 | ||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 0.06 | $ 0.03 | ||
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 0.06 | $ 0.04 |
Summary of Accounting Policie_7
Summary of Accounting Policies - Error Correction, Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income (loss) | $ 78 | $ 66 | $ 18 | $ 203 |
Foreign currency translation adjustments | (97) | (31) | (80) | (103) |
Defined benefit plans | 3 | 4 | 2 | 11 |
Other comprehensive income (loss), net of tax | (94) | (27) | (77) | (92) |
Comprehensive income (loss) | (16) | 39 | (59) | 111 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (14) | 6 | 22 | 37 |
Comprehensive income (loss) attributable to common shareholders | $ (2) | 33 | $ (81) | 74 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income (loss) | 63 | 201 | ||
Foreign currency translation adjustments | (31) | (104) | ||
Defined benefit plans | 4 | 11 | ||
Other comprehensive income (loss), net of tax | (27) | (93) | ||
Comprehensive income (loss) | 36 | 108 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 6 | 37 | ||
Comprehensive income (loss) attributable to common shareholders | 30 | 71 | ||
Reclasses | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income (loss) | 0 | 0 | ||
Foreign currency translation adjustments | 0 | 0 | ||
Defined benefit plans | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 0 | ||
Comprehensive income (loss) | 0 | 0 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income (loss) attributable to common shareholders | 0 | 0 | ||
As Reclassified | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income (loss) | 63 | 201 | ||
Foreign currency translation adjustments | (31) | (104) | ||
Defined benefit plans | 4 | 11 | ||
Other comprehensive income (loss), net of tax | (27) | (93) | ||
Comprehensive income (loss) | 36 | 108 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 6 | 37 | ||
Comprehensive income (loss) attributable to common shareholders | 30 | 71 | ||
Revisions | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income (loss) | 3 | 2 | ||
Foreign currency translation adjustments | 0 | 1 | ||
Defined benefit plans | 0 | 0 | ||
Other comprehensive income (loss), net of tax | 0 | 1 | ||
Comprehensive income (loss) | 3 | 3 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income (loss) attributable to common shareholders | $ 3 | $ 3 |
Summary of Accounting Policie_8
Summary of Accounting Policies - Error Correction, Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||||
Net income (loss) | $ 78 | $ 66 | $ 18 | $ 203 |
Net cash provided by (used by) operating activities | 64 | 37 | ||
Investing Activities | ||||
Net cash used by investing activities | (466) | (149) | ||
Financing Activities | ||||
Proceeds from term loans and notes | 171 | 12 | ||
Repayments of term loans and notes | (278) | (35) | ||
Retirement of long-term debt | 0 | |||
Borrowings on revolving lines of credit | 6,804 | 4,051 | ||
Payments on revolving lines of credit | (6,548) | (4,074) | ||
Net increase (decrease) in revolver borrowings | 0 | |||
Issuance (repurchase) of common shares | (2) | (2) | ||
Cash dividends | (20) | (39) | ||
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | |||
Net increase (decrease) in bank overdrafts | (12) | (5) | ||
Net increase (decrease) in short-term borrowings secured by accounts receivable | 150 | |||
Other | 1 | (2) | ||
Distributions to noncontrolling interest partners | (20) | (44) | ||
Net cash provided by (used by) financing activities | 93 | 12 | ||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2 | (15) | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (307) | (115) | ||
Cash, cash equivalents and restricted cash, beginning of period | 702 | 318 | ||
Cash, cash equivalents and restricted cash, end of period | $ 395 | 203 | $ 395 | 203 |
As Reported | ||||
Operating Activities | ||||
Net income (loss) | 63 | 201 | ||
Net cash provided by (used by) operating activities | 37 | |||
Investing Activities | ||||
Net cash used by investing activities | (149) | |||
Financing Activities | ||||
Proceeds from term loans and notes | 0 | |||
Repayments of term loans and notes | 0 | |||
Retirement of long-term debt | (17) | |||
Borrowings on revolving lines of credit | 0 | |||
Payments on revolving lines of credit | 0 | |||
Net increase (decrease) in revolver borrowings | (29) | |||
Issuance (repurchase) of common shares | (2) | |||
Cash dividends | (39) | |||
Debt issuance cost of long-term debt | (2) | |||
Purchase of common stock under the share repurchase program | 0 | |||
Net increase (decrease) in bank overdrafts | (5) | |||
Net increase (decrease) in short-term borrowings secured by accounts receivable | 150 | |||
Other | 0 | |||
Distributions to noncontrolling interest partners | (44) | |||
Net cash provided by (used by) financing activities | 12 | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (15) | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (115) | |||
Cash, cash equivalents and restricted cash, beginning of period | 318 | |||
Cash, cash equivalents and restricted cash, end of period | 203 | 203 | ||
Reclasses | ||||
Operating Activities | ||||
Net income (loss) | 0 | 0 | ||
Net cash provided by (used by) operating activities | 0 | |||
Investing Activities | ||||
Net cash used by investing activities | 0 | |||
Financing Activities | ||||
Proceeds from term loans and notes | 0 | |||
Repayments of term loans and notes | (17) | |||
Retirement of long-term debt | 17 | |||
Borrowings on revolving lines of credit | 0 | |||
Payments on revolving lines of credit | 0 | |||
Net increase (decrease) in revolver borrowings | 0 | |||
Issuance (repurchase) of common shares | 0 | |||
Cash dividends | 0 | |||
Debt issuance cost of long-term debt | 2 | |||
Purchase of common stock under the share repurchase program | 0 | |||
Net increase (decrease) in bank overdrafts | 0 | |||
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | |||
Other | (2) | |||
Distributions to noncontrolling interest partners | 0 | |||
Net cash provided by (used by) financing activities | 0 | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | |||
Cash, cash equivalents and restricted cash, beginning of period | 0 | |||
Cash, cash equivalents and restricted cash, end of period | 0 | 0 | ||
As Reclassified | ||||
Operating Activities | ||||
Net income (loss) | 63 | 201 | ||
Net cash provided by (used by) operating activities | 37 | |||
Investing Activities | ||||
Net cash used by investing activities | (149) | |||
Financing Activities | ||||
Proceeds from term loans and notes | 0 | |||
Repayments of term loans and notes | (17) | |||
Retirement of long-term debt | 0 | |||
Borrowings on revolving lines of credit | 0 | |||
Payments on revolving lines of credit | 0 | |||
Net increase (decrease) in revolver borrowings | (29) | |||
Issuance (repurchase) of common shares | (2) | |||
Cash dividends | (39) | |||
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | |||
Net increase (decrease) in bank overdrafts | (5) | |||
Net increase (decrease) in short-term borrowings secured by accounts receivable | 150 | |||
Other | (2) | |||
Distributions to noncontrolling interest partners | (44) | |||
Net cash provided by (used by) financing activities | 12 | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (15) | |||
Increase (decrease) in cash, cash equivalents and restricted cash | (115) | |||
Cash, cash equivalents and restricted cash, beginning of period | 318 | |||
Cash, cash equivalents and restricted cash, end of period | 203 | 203 | ||
Revisions | ||||
Operating Activities | ||||
Net income (loss) | 3 | 2 | ||
Net cash provided by (used by) operating activities | 0 | |||
Investing Activities | ||||
Net cash used by investing activities | 0 | |||
Financing Activities | ||||
Proceeds from term loans and notes | 12 | |||
Repayments of term loans and notes | (18) | |||
Retirement of long-term debt | 0 | |||
Borrowings on revolving lines of credit | 4,051 | |||
Payments on revolving lines of credit | (4,074) | |||
Net increase (decrease) in revolver borrowings | 29 | |||
Issuance (repurchase) of common shares | 0 | |||
Cash dividends | 0 | |||
Debt issuance cost of long-term debt | 0 | |||
Purchase of common stock under the share repurchase program | 0 | |||
Net increase (decrease) in bank overdrafts | 0 | |||
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | |||
Other | 0 | |||
Distributions to noncontrolling interest partners | 0 | |||
Net cash provided by (used by) financing activities | 0 | |||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | |||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | |||
Cash, cash equivalents and restricted cash, beginning of period | 0 | |||
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |
Summary of Accounting Policie_9
Summary of Accounting Policies - Error Correction, Equity Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | $ 1,916 | $ 1,916 | ||||||||
Net income (loss) attributable to Tenneco Inc. | $ 70 | $ 57 | (21) | $ 164 | ||||||
Foreign currency translation adjustments | (97) | (31) | (80) | (103) | ||||||
Defined benefit plans | 3 | 4 | 2 | 11 | ||||||
Comprehensive income (loss) | (94) | (27) | (77) | (92) | ||||||
Balance at end of period | 1,837 | 1,837 | ||||||||
As Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to Tenneco Inc. | 54 | 162 | ||||||||
Foreign currency translation adjustments | (31) | (104) | ||||||||
Defined benefit plans | 4 | 11 | ||||||||
Comprehensive income (loss) | (27) | (93) | ||||||||
Revisions | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to Tenneco Inc. | 3 | 2 | ||||||||
Foreign currency translation adjustments | 0 | 1 | ||||||||
Defined benefit plans | 0 | 0 | ||||||||
Comprehensive income (loss) | 0 | 1 | ||||||||
Accumulated Deficit | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (1,124) | $ (1,150) | (1,013) | (928) | $ (963) | $ (1,009) | (1,013) | (1,009) | ||
Net income (loss) attributable to Tenneco Inc. | 70 | 26 | (117) | 57 | 60 | 164 | ||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | $ 1 | |||||||||
Balance at end of period | (1,054) | (1,124) | (1,150) | (884) | (928) | (963) | (1,054) | (884) | ||
Accumulated Deficit | As Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (864) | (946) | (946) | |||||||
Net income (loss) attributable to Tenneco Inc. | 54 | 162 | ||||||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | (1) | (1) | ||||||||
Balance at end of period | (824) | (864) | (824) | |||||||
Accumulated Deficit | Revisions | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (64) | (63) | (63) | |||||||
Net income (loss) attributable to Tenneco Inc. | 3 | 2 | ||||||||
Adjustments to adopt new accounting standards | 1 | 1 | 1 | |||||||
Balance at end of period | (60) | (64) | (60) | |||||||
Accumulated Other Comprehensive Income (loss) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (680) | (658) | (692) | (604) | (516) | (538) | (692) | (538) | ||
Foreign currency translation adjustments | (75) | (17) | 29 | (28) | (92) | 19 | (101) | |||
Defined benefit plans | 3 | (2) | 1 | 4 | 4 | 3 | 11 | |||
Balance at end of period | (752) | (680) | (658) | (628) | (604) | (516) | (752) | (628) | ||
Accumulated Other Comprehensive Income (loss) | As Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (608) | (541) | (541) | |||||||
Foreign currency translation adjustments | (27) | (101) | ||||||||
Defined benefit plans | 4 | 11 | ||||||||
Balance at end of period | (631) | (608) | (631) | |||||||
Accumulated Other Comprehensive Income (loss) | Revisions | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | 4 | 3 | 3 | |||||||
Foreign currency translation adjustments | (1) | |||||||||
Balance at end of period | 3 | 4 | 3 | |||||||
Total Tenneco Inc. Shareholders' Equity | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | 1,638 | 1,628 | 1,726 | 657 | 707 | 636 | 1,726 | 636 | ||
Net income (loss) attributable to Tenneco Inc. | 70 | 26 | (117) | 57 | 47 | 60 | 164 | |||
Foreign currency translation adjustments | (75) | (17) | 29 | (28) | (92) | 19 | (101) | |||
Defined benefit plans | 3 | (2) | 1 | 4 | 4 | 3 | 11 | |||
Comprehensive income (loss) | 33 | 74 | ||||||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | 1 | |||||||||
Stock-based compensation, net | 3 | 9 | ||||||||
Balance at end of period | 1,642 | 1,638 | 1,628 | 680 | 657 | 707 | 1,642 | 680 | ||
Total Tenneco Inc. Shareholders' Equity | As Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | 717 | 696 | 696 | |||||||
Net income (loss) attributable to Tenneco Inc. | 54 | 162 | ||||||||
Foreign currency translation adjustments | (27) | (101) | ||||||||
Defined benefit plans | 4 | 11 | ||||||||
Comprehensive income (loss) | 31 | 72 | ||||||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | $ (1) | |||||||||
Stock-based compensation, net | 3 | 9 | ||||||||
Balance at end of period | 737 | 717 | 737 | |||||||
Total Tenneco Inc. Shareholders' Equity | Revisions | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (60) | (60) | (60) | |||||||
Net income (loss) attributable to Tenneco Inc. | 3 | 2 | ||||||||
Foreign currency translation adjustments | (1) | |||||||||
Comprehensive income (loss) | 2 | 2 | ||||||||
Adjustments to adopt new accounting standards | 1 | 1 | ||||||||
Balance at end of period | (57) | (60) | (57) | |||||||
Total Equity | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | 1,844 | 1,827 | 1,916 | 701 | 767 | 682 | 1,916 | 682 | ||
Net income (loss) attributable to Tenneco Inc. | 74 | 35 | (110) | 60 | 54 | 67 | 181 | |||
Foreign currency translation adjustments | (86) | (17) | 33 | (29) | (97) | 26 | (100) | |||
Defined benefit plans | 3 | (2) | 1 | 4 | 4 | 3 | 11 | |||
Comprehensive income (loss) | 35 | 92 | ||||||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | 1 | |||||||||
Distributions declared to noncontrolling interests | (2) | (1) | (8) | (18) | (26) | |||||
Stock-based compensation, net | 3 | 9 | ||||||||
Balance at end of period | $ 1,837 | $ 1,844 | $ 1,827 | 718 | 701 | 767 | $ 1,837 | 718 | ||
Total Equity | As Reported | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | 761 | 742 | 742 | |||||||
Net income (loss) attributable to Tenneco Inc. | 57 | 179 | ||||||||
Foreign currency translation adjustments | (28) | (100) | ||||||||
Defined benefit plans | 4 | 11 | ||||||||
Comprehensive income (loss) | 33 | 90 | ||||||||
Cash dividends declared | (14) | (39) | ||||||||
Adjustments to adopt new accounting standards | (1) | |||||||||
Distributions declared to noncontrolling interests | (8) | (26) | ||||||||
Stock-based compensation, net | 3 | 9 | ||||||||
Balance at end of period | 775 | 761 | 775 | |||||||
Total Equity | Revisions | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Balance at beginning of period | (60) | $ (60) | (60) | |||||||
Net income (loss) attributable to Tenneco Inc. | 3 | 2 | ||||||||
Foreign currency translation adjustments | (1) | |||||||||
Comprehensive income (loss) | 2 | 2 | ||||||||
Adjustments to adopt new accounting standards | $ 1 | $ 1 | ||||||||
Balance at end of period | $ (57) | $ (60) | $ (57) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Öhlins Intressenter AB (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 29, 2019 | Jan. 10, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 802 | $ 869 | ||
Öhlins Intressenter AB | ||||
Business Acquisition [Line Items] | ||||
Percentage of business acquired | 90.50% | 90.50% | ||
Total consideration | $ 162 | |||
Redeemable noncontrolling interest | 17 | $ 17 | ||
Goodwill | 30 | $ 28 | ||
Step up of inventory | 5 | |||
Non-cash charge for inventory step-up | $ 5 | |||
K Öhlin Holding AB | Öhlins Intressenter AB | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 9.50% |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 29, 2019 | Dec. 31, 2018 | Oct. 01, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 802 | $ 869 | ||
Öhlins Intressenter AB | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 4 | $ 4 | ||
Customer notes and accounts receivable | 19 | 19 | ||
Inventories | 31 | 31 | ||
Prepayments and other current assets | 2 | 2 | ||
Property, plant, and equipment | 8 | 8 | ||
Goodwill | 30 | 28 | ||
Intangibles | 133 | 135 | ||
Other assets | 9 | 9 | ||
Total assets acquired | 236 | 236 | ||
Short-term debt, including current maturities of long-term debt | 10 | 10 | ||
Accounts payable | 11 | 11 | ||
Accrued compensation and employee benefits | 12 | 12 | ||
Deferred income taxes | 18 | 18 | ||
Deferred credits and other liabilities | 6 | 6 | ||
Total liabilities assumed | 57 | 57 | ||
Redeemable noncontrolling interest | 17 | 17 | ||
Net assets and noncontrolling interests acquired | 162 | $ 162 | ||
Federal-Mogul | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 277 | $ 277 | ||
Customer notes and accounts receivable | 1,254 | 1,258 | ||
Other receivables | 62 | 62 | ||
Inventories | 1,543 | 1,551 | ||
Prepayments and other current assets | 198 | 198 | ||
Property, plant, and equipment | 1,683 | 1,711 | ||
Long-term receivables | 48 | 48 | ||
Goodwill | 803 | 825 | ||
Intangibles | 1,577 | 1,530 | ||
Investments in nonconsolidated affiliates | 524 | 528 | ||
Deferred income taxes | 196 | 166 | ||
Other assets | 50 | 55 | ||
Total assets acquired | 8,215 | 8,209 | ||
Short-term debt, including current maturities of long-term debt | 130 | 130 | ||
Accounts payable | 961 | 957 | ||
Accrued compensation and employee benefits | 231 | 231 | ||
Accrued income taxes | 49 | 49 | ||
Accrued expenses and other current liabilities | 515 | 522 | ||
Long-term debt | 1,315 | 1,315 | ||
Deferred income taxes | 80 | 56 | ||
Pension and postretirement benefits | 879 | 879 | ||
Deferred credits and other liabilities | 119 | 124 | ||
Total liabilities assumed | 4,279 | 4,263 | ||
Redeemable noncontrolling interest | 88 | 96 | ||
Noncontrolling interests | 141 | 143 | ||
Net assets and noncontrolling interests acquired | 3,707 | $ 3,707 | ||
Adjustments | Öhlins Intressenter AB | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 0 | |||
Customer notes and accounts receivable | 0 | |||
Inventories | 0 | |||
Prepayments and other current assets | 0 | |||
Property, plant, and equipment | 0 | |||
Goodwill | 2 | |||
Intangibles | (2) | |||
Other assets | 0 | |||
Total assets acquired | 0 | |||
Short-term debt, including current maturities of long-term debt | 0 | |||
Accounts payable | 0 | |||
Accrued compensation and employee benefits | 0 | |||
Deferred income taxes | 0 | |||
Deferred credits and other liabilities | 0 | |||
Total liabilities assumed | 0 | |||
Redeemable noncontrolling interest | 0 | |||
Net assets and noncontrolling interests acquired | 0 | |||
Adjustments | Federal-Mogul | ||||
Business Acquisition [Line Items] | ||||
Cash, cash equivalents and restricted cash | 0 | |||
Customer notes and accounts receivable | (4) | |||
Other receivables | 0 | |||
Inventories | (8) | |||
Prepayments and other current assets | 0 | |||
Property, plant, and equipment | (28) | |||
Long-term receivables | 0 | |||
Goodwill | (22) | |||
Intangibles | 47 | |||
Investments in nonconsolidated affiliates | (4) | |||
Deferred income taxes | 30 | |||
Other assets | (5) | |||
Total assets acquired | 6 | |||
Short-term debt, including current maturities of long-term debt | 0 | |||
Accounts payable | 4 | |||
Accrued compensation and employee benefits | 0 | |||
Accrued income taxes | 0 | |||
Accrued expenses and other current liabilities | (7) | |||
Long-term debt | 0 | |||
Deferred income taxes | 24 | |||
Pension and postretirement benefits | 0 | |||
Deferred credits and other liabilities | (5) | |||
Total liabilities assumed | 16 | |||
Redeemable noncontrolling interest | (8) | |||
Noncontrolling interests | (2) | |||
Net assets and noncontrolling interests acquired | $ 0 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Jun. 29, 2019 | Oct. 01, 2018 | |
Öhlins Intressenter AB | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 78 | ||
Intangibles | 133 | $ 135 | |
Öhlins Intressenter AB | Customer platforms and relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 37 | ||
Weighted-average useful lives | 10 years | ||
Öhlins Intressenter AB | Technology rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 41 | ||
Weighted-average useful lives | 10 years | ||
Federal-Mogul | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 1,214 | ||
Weighted-average useful lives | 10 years 6 months | ||
Intangibles | $ 1,577 | $ 1,530 | |
Federal-Mogul | Customer platforms and relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 953 | ||
Weighted-average useful lives | 10 years | ||
Federal-Mogul | Technology rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 66 | ||
Weighted-average useful lives | 10 years | ||
Federal-Mogul | Packaged kits know-how | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 54 | ||
Weighted-average useful lives | 10 years | ||
Federal-Mogul | Catalogs | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 47 | ||
Weighted-average useful lives | 10 years | ||
Federal-Mogul | Licensing agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 64 | ||
Weighted-average useful lives | 4 years 6 months | ||
Federal-Mogul | Land use rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total definite-lived intangible assets | $ 30 | ||
Weighted-average useful lives | 42 years 9 months 18 days | ||
Trade names and trademarks | Öhlins Intressenter AB | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 55 | ||
Trade names and trademarks | Federal-Mogul | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 363 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Acquisition of Federal-Mogul (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,232 | $ 1,231 | $ 1,221 | $ 1,213 | |
Federal-Mogul | |||||
Business Acquisition [Line Items] | |||||
Step up of inventory | $ 149 | ||||
Non-cash charge for inventory step-up | 44 | 105 | |||
Redeemable noncontrolling interest | $ 96 | 88 | |||
Revenue since acquisition | 5,537 | ||||
Net income since acquisition | 34 | ||||
Subsidiary Of Federal-Mogul | |||||
Business Acquisition [Line Items] | |||||
Redeemable noncontrolling interest | 81 | ||||
Powertrain | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 343 | 388 | 412 | 409 | |
Powertrain | Federal-Mogul | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 343 | ||||
Motorparts | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 619 | 611 | 547 | 544 | |
Motorparts | Federal-Mogul | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 395 | ||||
Ride Performance | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 249 | $ 210 | $ 240 | $ 238 | |
Ride Performance | Federal-Mogul | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 65 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Combinations [Abstract] | ||||
Net sales and operating revenues | $ 4,319 | $ 4,283 | $ 13,307 | $ 13,581 |
Earnings (loss) before income taxes and noncontrolling interests | 168 | 287 | 369 | 745 |
Net income (loss) attributable to Tenneco Inc. | $ 84 | $ 142 | $ 57 | $ 313 |
Basic earnings (loss) per share of common stock (in dollars per share) | $ 1.03 | $ 1.75 | $ 0.70 | $ 3.88 |
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 1.03 | $ 1.75 | $ 0.70 | $ 3.87 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Assets Held For Sale (Details) - USD ($) $ in Millions | Mar. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of assets | $ 8 | $ 6 | ||||
Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Receivables | $ 8 | 8 | $ 0 | |||
Inventories | 7 | 7 | 33 | |||
Other current assets | 3 | 3 | 5 | |||
Long-lived assets | 16 | 16 | 23 | |||
Goodwill | 4 | 4 | 0 | |||
Impairment on carrying value | (8) | (8) | 0 | |||
Total assets held for sale | 30 | 30 | 61 | |||
Accounts payable | 4 | 4 | 21 | |||
Accrued liabilities | 0 | 0 | 7 | |||
Other liabilities | 1 | 1 | 11 | |||
Total liabilities held for sale | 5 | $ 5 | $ 39 | |||
Motorsports Certain Assets and Liabilities | Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale price | $ 29 | $ 24 | ||||
Proceeds from sale of assets | $ 22 | $ 24 |
Restructuring Charges, Asset _3
Restructuring Charges, Asset Impairments, and Other, Net - Incurred Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | $ 35 | $ 14 | $ 118 | $ 55 | ||
Other non-restructuring asset impairments | 2 | 2 | 2 | |||
Impairment of assets held for sale | 8 | 8 | ||||
Total asset impairment charges | 10 | |||||
Total restructuring charges, asset impairments, and other | 43 | 16 | 128 | 57 | ||
Clean Air | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | 6 | 1 | 25 | 19 | ||
Other non-restructuring asset impairments | 0 | 1 | 0 | |||
Impairment of assets held for sale | 0 | 0 | ||||
Total asset impairment charges | 1 | |||||
Total restructuring charges, asset impairments, and other | 6 | 1 | 26 | 19 | ||
Powertrain | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | 11 | 0 | 29 | 0 | ||
Other non-restructuring asset impairments | 0 | 0 | 0 | |||
Impairment of assets held for sale | 0 | 0 | ||||
Total asset impairment charges | 0 | |||||
Total restructuring charges, asset impairments, and other | 11 | 0 | 29 | 0 | ||
Ride Performance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | 15 | 10 | 50 | 27 | ||
Other non-restructuring asset impairments | 0 | 0 | 0 | |||
Impairment of assets held for sale | 0 | 0 | ||||
Total asset impairment charges | 0 | |||||
Total restructuring charges, asset impairments, and other | 15 | 10 | 50 | 27 | ||
Other restructuring charges | 10 | $ 8 | $ 20 | 30 | ||
Motorparts | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | 2 | 2 | 12 | 6 | ||
Other non-restructuring asset impairments | 0 | 1 | 0 | |||
Impairment of assets held for sale | 8 | 8 | ||||
Total asset impairment charges | 9 | |||||
Total restructuring charges, asset impairments, and other | 10 | 2 | 21 | 6 | ||
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other charges, net | 1 | 1 | 2 | 3 | ||
Other non-restructuring asset impairments | 2 | 0 | 2 | |||
Impairment of assets held for sale | 0 | 0 | ||||
Total asset impairment charges | 0 | |||||
Total restructuring charges, asset impairments, and other | $ 1 | $ 3 | $ 2 | $ 5 |
Restructuring Charges, Asset _4
Restructuring Charges, Asset Impairments, and Other, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | $ (2) | $ (2) | |||
Beijing, China | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 8 | $ 22 | |||
Facility Closure and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | 0 | $ 0 | |||
Ride Performance | Facility Closure and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 15 | $ 43 | |||
Federal-Mogul | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3 | 12 | |||
Revisions to estimates | $ 1 | $ 3 |
Restructuring Charges, Asset _5
Restructuring Charges, Asset Impairments, and Other, Net - Roll Forward of Restructuring Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | $ 115 | $ 89 | $ 103 | $ 35 | $ 21 | $ 25 | $ 103 |
Provisions | 37 | 61 | 24 | 14 | 29 | 12 | |
Revisions to estimates | (2) | (2) | |||||
Payments | (45) | (33) | (38) | (16) | (15) | (16) | |
Foreign currency | (1) | (1) | |||||
Restructuring reserve, ending balance | 104 | 115 | 89 | 32 | 35 | 21 | 104 |
Employee Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 110 | 84 | 98 | 30 | 16 | 19 | 98 |
Provisions | 22 | 44 | 11 | 2 | 26 | 10 | |
Revisions to estimates | (2) | (2) | |||||
Payments | (29) | (16) | (25) | (4) | (12) | (13) | |
Foreign currency | (1) | (1) | |||||
Restructuring reserve, ending balance | 100 | 110 | 84 | 27 | 30 | 16 | 100 |
Facility Closure and Other Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 5 | 5 | 5 | 5 | 5 | 6 | 5 |
Provisions | 15 | 17 | 13 | 12 | 3 | 2 | |
Revisions to estimates | 0 | 0 | |||||
Payments | (16) | (17) | (13) | (12) | (3) | (3) | |
Foreign currency | 0 | 0 | |||||
Restructuring reserve, ending balance | 4 | 5 | 5 | 5 | 5 | 5 | 4 |
Other charges and payments | 10 | 12 | 8 | ||||
Total Reportable Segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 114 | 87 | 100 | 33 | 21 | 25 | 100 |
Provisions | 36 | 61 | 23 | 13 | 27 | 12 | |
Revisions to estimates | (2) | (2) | |||||
Payments | (43) | (32) | (36) | (14) | (15) | (16) | |
Foreign currency | (1) | (1) | |||||
Restructuring reserve, ending balance | 104 | 114 | 87 | 31 | 33 | 21 | 104 |
Clean Air | Total Reportable Segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 28 | 16 | 17 | 24 | 10 | 14 | 17 |
Provisions | 6 | 14 | 5 | 1 | 17 | 1 | |
Revisions to estimates | 0 | 0 | |||||
Payments | (7) | (2) | (6) | (2) | (3) | (5) | |
Foreign currency | (1) | (1) | |||||
Restructuring reserve, ending balance | 26 | 28 | 16 | 22 | 24 | 10 | 26 |
Powertrain | Total Reportable Segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 26 | 13 | 15 | 0 | 0 | 0 | 15 |
Provisions | 11 | 17 | 1 | 0 | 0 | 0 | |
Revisions to estimates | 0 | 0 | |||||
Payments | (4) | (4) | (3) | 0 | 0 | 0 | |
Foreign currency | 0 | 0 | |||||
Restructuring reserve, ending balance | 33 | 26 | 13 | 0 | 0 | 0 | 33 |
Ride Performance | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Other charges and payments | 10 | 12 | 8 | ||||
Ride Performance | Total Reportable Segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 28 | 25 | 25 | 5 | 6 | 7 | 25 |
Provisions | 15 | 22 | 13 | 10 | 9 | 8 | |
Revisions to estimates | 0 | 0 | |||||
Payments | (19) | (19) | (13) | (7) | (10) | (9) | |
Foreign currency | 0 | 0 | |||||
Restructuring reserve, ending balance | 24 | 28 | 25 | 8 | 5 | 6 | 24 |
Motorparts | Total Reportable Segments | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 32 | 33 | 43 | 4 | 5 | 4 | 43 |
Provisions | 4 | 8 | 4 | 2 | 1 | 3 | |
Revisions to estimates | (2) | (2) | |||||
Payments | (13) | (7) | (14) | (5) | (2) | (2) | |
Foreign currency | 0 | 0 | |||||
Restructuring reserve, ending balance | 21 | 32 | 33 | 1 | 4 | 5 | 21 |
Corporate | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring reserve, beginning balance | 1 | 2 | 3 | 2 | 0 | 0 | 3 |
Provisions | 1 | 0 | 1 | 1 | 2 | 0 | |
Revisions to estimates | 0 | 0 | |||||
Payments | (2) | (1) | (2) | (2) | 0 | 0 | |
Foreign currency | 0 | 0 | |||||
Restructuring reserve, ending balance | $ 0 | $ 1 | $ 2 | $ 1 | $ 2 | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,078 | $ 1,116 |
Work in process | 519 | 562 |
Raw materials | 440 | 457 |
Materials and supplies | 100 | 110 |
Total inventories | $ 2,137 | $ 2,245 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||||||
Gross carrying amount at beginning of period | $ 1,221 | $ 1,213 | $ 1,231 | $ 1,231 | |||
Measurement period adjustments | 18 | 8 | (46) | ||||
Acquisitions | 28 | ||||||
Reclassification to assets held for sale | (4) | ||||||
Foreign exchange | (3) | ||||||
Gross carrying amount at end of period | 1,232 | 1,221 | 1,213 | 1,232 | |||
Accumulated impairment loss, beginning balance | (422) | (422) | (362) | (362) | |||
Impairment | (9) | 0 | (60) | $ 0 | (69) | $ 0 | |
Foreign Exchange | 1 | ||||||
Accumulated impairment loss, ending balance | (430) | (422) | (422) | (430) | |||
Net carrying value at end of period | 802 | 802 | $ 869 | ||||
Clean Air | |||||||
Goodwill [Roll Forward] | |||||||
Gross carrying amount at beginning of period | 22 | 22 | 22 | 22 | |||
Measurement period adjustments | 0 | 0 | 0 | ||||
Acquisitions | 0 | ||||||
Reclassification to assets held for sale | 0 | ||||||
Foreign exchange | (1) | ||||||
Gross carrying amount at end of period | 21 | 22 | 22 | 21 | |||
Accumulated impairment loss, beginning balance | 0 | 0 | 0 | 0 | |||
Impairment | 0 | 0 | 0 | ||||
Foreign Exchange | 0 | ||||||
Accumulated impairment loss, ending balance | 0 | 0 | 0 | 0 | |||
Net carrying value at end of period | 21 | 21 | |||||
Powertrain | |||||||
Goodwill [Roll Forward] | |||||||
Gross carrying amount at beginning of period | 412 | 409 | 388 | 388 | |||
Measurement period adjustments | (69) | 3 | 21 | ||||
Acquisitions | 0 | ||||||
Reclassification to assets held for sale | 0 | ||||||
Foreign exchange | 0 | ||||||
Gross carrying amount at end of period | 343 | 412 | 409 | 343 | |||
Accumulated impairment loss, beginning balance | 0 | 0 | 0 | 0 | |||
Impairment | 0 | 0 | 0 | ||||
Foreign Exchange | 0 | ||||||
Accumulated impairment loss, ending balance | 0 | 0 | 0 | 0 | |||
Net carrying value at end of period | 343 | 343 | |||||
Ride Performance | |||||||
Goodwill [Roll Forward] | |||||||
Gross carrying amount at beginning of period | 240 | 238 | 210 | 210 | |||
Measurement period adjustments | 10 | 2 | 0 | ||||
Acquisitions | 28 | ||||||
Reclassification to assets held for sale | 0 | ||||||
Foreign exchange | (1) | ||||||
Gross carrying amount at end of period | 249 | 240 | 238 | 249 | |||
Accumulated impairment loss, beginning balance | (203) | (203) | (143) | (143) | |||
Impairment | (9) | 0 | (60) | ||||
Foreign Exchange | 1 | ||||||
Accumulated impairment loss, ending balance | (211) | (203) | (203) | (211) | |||
Net carrying value at end of period | 38 | 38 | |||||
Motorparts | |||||||
Goodwill [Roll Forward] | |||||||
Gross carrying amount at beginning of period | 547 | 544 | 611 | 611 | |||
Measurement period adjustments | 77 | 3 | (67) | ||||
Acquisitions | 0 | ||||||
Reclassification to assets held for sale | (4) | ||||||
Foreign exchange | (1) | ||||||
Gross carrying amount at end of period | 619 | 547 | 544 | 619 | |||
Accumulated impairment loss, beginning balance | (219) | (219) | (219) | (219) | |||
Impairment | 0 | 0 | 0 | ||||
Foreign Exchange | 0 | ||||||
Accumulated impairment loss, ending balance | (219) | $ (219) | $ (219) | (219) | |||
Net carrying value at end of period | $ 400 | $ 400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019USD ($)reporting_unit | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($)reporting_unit | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 29, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 01, 2018USD ($) | |
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | $ 802 | $ 802 | $ 869 | ||||||
Goodwill impairment charge | 9 | $ 0 | $ 60 | $ 0 | 69 | $ 0 | |||
Number of reporting units | reporting_unit | 9 | ||||||||
Ride Performance | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | 38 | 38 | |||||||
Goodwill impairment charge | $ 9 | $ 0 | $ 60 | ||||||
Number of reporting units | reporting_unit | 1 | 2 | |||||||
Öhlins Intressenter AB | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | $ 30 | 30 | $ 28 | ||||||
Intangibles, increase (decrease) | 133 | 133 | $ 135 | ||||||
Federal-Mogul | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | 803 | 803 | $ 825 | ||||||
Intangibles, increase (decrease) | 1,577 | 1,577 | $ 1,530 | ||||||
Adjustments | Öhlins Intressenter AB | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | 2 | 2 | |||||||
Intangibles, increase (decrease) | (2) | (2) | |||||||
Adjustments | Federal-Mogul | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill, increase (decrease) | (22) | (22) | |||||||
Intangibles, increase (decrease) | $ 47 | 47 | |||||||
Three Reporting Units | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | $ 69 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 1,333 | $ 1,217 |
Accumulated amortization | (166) | (63) |
Net carrying value | 1,167 | 1,154 |
Indefinite-lived intangible assets | 411 | 365 |
Intangible assets, gross | 1,744 | 1,582 |
Intangible assets, net | $ 1,578 | 1,519 |
Customer platforms and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross carrying value | $ 985 | 964 |
Accumulated amortization | (98) | (24) |
Net carrying value | $ 887 | 940 |
Customer contract | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross carrying value | $ 8 | 8 |
Accumulated amortization | (6) | (5) |
Net carrying value | 2 | 3 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 1 | 1 |
Accumulated amortization | (1) | (1) |
Net carrying value | $ 0 | 0 |
Patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 17 years | |
Technology rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 131 | 98 |
Accumulated amortization | (34) | (27) |
Net carrying value | $ 97 | 71 |
Technology rights | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Technology rights | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 30 years | |
Packaged kits know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross carrying value | $ 54 | 36 |
Accumulated amortization | (5) | (1) |
Net carrying value | $ 49 | 35 |
Catalogs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross carrying value | $ 47 | 0 |
Accumulated amortization | (5) | 0 |
Net carrying value | 42 | 0 |
Licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 62 | 66 |
Accumulated amortization | (14) | (3) |
Net carrying value | $ 48 | 63 |
Licensing agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 3 years | |
Licensing agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 5 years | |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 45 | 44 |
Accumulated amortization | (3) | (2) |
Net carrying value | $ 42 | $ 42 |
Land use rights | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 28 years | |
Land use rights | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 46 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of intangible assets | $ 33 | $ 0 | $ 101 | $ 1 | |
2019 | 33 | 33 | |||
2020 | 131 | 131 | |||
2021 | 130 | 130 | |||
2022 | 126 | 126 | |||
2023 | 126 | 126 | |||
2024 and thereafter | 621 | 621 | |||
Net carrying value | $ 1,167 | $ 1,167 | $ 1,154 |
Investment in Nonconsolidated_3
Investment in Nonconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Oct. 01, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in nonconsolidated affiliates | $ 505 | $ 505 | $ 544 | |||
Equity earnings (losses) of nonconsolidated affiliates, net of tax | 1 | $ 0 | 34 | $ 0 | ||
Cash dividends received from nonconsolidated affiliates | $ 18 | $ 0 | $ 45 | $ 0 | ||
Anqing TP Goetze Piston Ring Company Limited (China) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 35.70% | 35.70% | 35.70% | |||
Anqing TP Powder Metallurgy Co., Ltd (China) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 20.00% | 20.00% | 20.00% | |||
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |||
Farloc Argentina SAIC Y F (Argentina) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 23.90% | 23.90% | 23.90% | |||
Federal-Mogul Powertrain Otomotiv A.S. (Turkey) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |||
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 25.00% | 25.00% | 25.00% | |||
Federal-Mogul TP Liners, Inc. (USA) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 46.00% | 46.00% | 46.00% | |||
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 49.00% | 49.00% | 49.00% | |||
JURID do Brasil Sistemas Automotivos Ltda. (Brazil) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 19.90% | 19.90% | 19.90% | |||
KB Autosys Co., Ltd. (Korea) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 33.60% | 33.60% | 33.60% | |||
Montagewerk Abgastechnik Emden GmbH (Germany) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |||
Federal-Mogul | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in nonconsolidated affiliates | $ (524) | $ (524) | $ (528) | |||
Reduction to equity in earnings | 10 | 10 | ||||
Federal-Mogul | Adjustments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in nonconsolidated affiliates | $ 4 | $ 4 |
Investment in Nonconsolidated_4
Investment in Nonconsolidated Affiliates - Summarized Financial Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Sales | $ 233 | $ 732 |
Gross profit | 46 | 161 |
Income from continuing operations | 32 | 112 |
Net income | 28 | 107 |
Otomotiv A.S. | ||
Schedule of Equity Method Investments [Line Items] | ||
Sales | 85 | 261 |
Gross profit | 18 | 61 |
Income from continuing operations | 13 | 49 |
Net income | 12 | 51 |
Anqing TP Goetze | ||
Schedule of Equity Method Investments [Line Items] | ||
Sales | 33 | 111 |
Gross profit | 8 | 34 |
Income from continuing operations | 8 | 28 |
Net income | 7 | 25 |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Sales | 115 | 360 |
Gross profit | 20 | 66 |
Income from continuing operations | 11 | 35 |
Net income | $ 9 | $ 31 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) shares in Thousands, € in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)shares | Sep. 30, 2019EUR (€)shares | Dec. 31, 2018USD ($)shares | |
Financial Instruments [Line Items] | |||
Long-term debt | $ 5,408,000,000 | $ 5,340,000,000 | |
Net derivative losses to be reclassified within twelve months (less than) | 1,000,000 | ||
Foreign Exchange Forward | |||
Financial Instruments [Line Items] | |||
Derivative asset | $ 1,000,000 | $ 1,000,000 | |
Equity swap agreement | |||
Financial Instruments [Line Items] | |||
Notional amount | shares | 600 | 600 | 250 |
Net asset (liabilities) position fair value | $ (1,000,000) | $ 4,000,000 | |
Commodity contracts | |||
Financial Instruments [Line Items] | |||
Period of forecasted purchases | 18 months | ||
Notional amount | $ 26,000,000 | $ 27,000,000 | |
Term of derivative | 1 year | ||
Net Investment Hedging | |||
Financial Instruments [Line Items] | |||
Long-term debt | € | € 770 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying and Estimated Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Foreign Exchange Forward | ||
Carrying And Estimated Fair Value [Line Items] | ||
Derivative asset | $ 1 | $ 1 |
Level 2 | Carrying Amount | Equity swap agreement | ||
Carrying And Estimated Fair Value [Line Items] | ||
Derivative liability | (1) | |
Derivative asset | 4 | |
Level 2 | Carrying Amount | Commodity contracts | ||
Carrying And Estimated Fair Value [Line Items] | ||
Derivative liability | (1) | (2) |
Level 2 | Fair Value | Equity swap agreement | ||
Carrying And Estimated Fair Value [Line Items] | ||
Derivative liability | (1) | |
Derivative asset | 4 | |
Level 2 | Fair Value | Commodity contracts | ||
Carrying And Estimated Fair Value [Line Items] | ||
Derivative liability | $ (1) | $ (2) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Foreign Exchange Forward | Sep. 30, 2019USD ($) |
Long | |
Notional amount | $ 47,000,000 |
Short | |
Notional amount | $ 47,000,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value of Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 5,476 | $ 5,413 |
Term loans and senior notes | Carrying Amount | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | 5,169 | 5,307 |
Term loans and senior notes | Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long term debt | 4,963 | 5,218 |
Other Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 78 | $ 106 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Carrying and Estimated Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Commodity contracts | Cash Flow Hedging | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion) | $ (1) | $ 0 | |
Foreign Currency | Net Investment Hedging | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion) | 38 | 45 | |
Accrued expenses and other current liabilities | Commodity contracts | Cash Flow Hedging | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative asset (liabilities) | 1 | 1 | $ 2 |
Long-term debt | Foreign Currency | Net Investment Hedging | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative asset (liabilities) | $ 839 | $ 839 | $ 863 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Summary of Long-Term Debt Obligations (Details) | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Carrying amount | $ 5,476,000,000 | $ 5,413,000,000 | |
Less - maturities classified as current | 68,000,000 | 73,000,000 | |
Total long-term debt | 5,408,000,000 | 5,340,000,000 | |
Unamortized debt issuance costs | 80,000,000 | 90,000,000 | |
Unamortized premium | (38,000,000) | (49,000,000) | |
Line of Credit | Revolver Borrowings Due 2023 | |||
Debt Instrument [Line Items] | |||
Principal | 229,000,000 | 0 | |
Carrying amount | 229,000,000 | 0 | |
Term Loan | Tenneco Inc. Term Loan A | |||
Debt Instrument [Line Items] | |||
Principal | 1,636,000,000 | 1,700,000,000 | |
Carrying amount | $ 1,628,000,000 | 1,691,000,000 | |
Stated rate | 1.75% | 1.75% | |
Term Loan | Tenneco Inc. Term Loan B | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,687,000,000 | 1,700,000,000 | |
Carrying amount | $ 1,624,000,000 | $ 1,629,000,000 | |
Stated rate | 3.00% | 3.00% | 2.75% |
Senior Notes | 5 3/8% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Principal | $ 225,000,000 | € 225,000,000 | $ 225,000,000 |
Carrying amount | $ 222,000,000 | 222,000,000 | |
Stated rate | 5.375% | 5.375% | |
Senior Notes | 5.000% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Principal | $ 500,000,000 | € 500,000,000 | 500,000,000 |
Carrying amount | $ 494,000,000 | 493,000,000 | |
Stated rate | 5.00% | 5.00% | |
Senior Notes | 4.875% Euro Fixed Rate Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Principal | $ 452,000,000 | € 415,000,000 | 476,000,000 |
Carrying amount | $ 467,000,000 | 496,000,000 | |
Stated rate | 4.875% | 4.875% | |
Senior Notes | Euro Floating Rate Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Principal | $ 327,000,000 | € 300,000,000 | 344,000,000 |
Carrying amount | $ 331,000,000 | 349,000,000 | |
Stated rate | 4.875% | 4.875% | |
Senior Notes | 5.000% Euro Fixed Rate Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Principal | $ 381,000,000 | € 350,000,000 | 401,000,000 |
Carrying amount | $ 403,000,000 | 427,000,000 | |
Stated rate | 5.00% | 5.00% | |
Other Debt, primarily foreign instruments | |||
Debt Instrument [Line Items] | |||
Principal | $ 81,000,000 | 108,000,000 | |
Carrying amount | $ 78,000,000 | $ 106,000,000 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Term Loans (Details) $ in Billions | Oct. 01, 2018USD ($) |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 4.9 |
Revolving Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 1.5 |
Debt term | 5 years |
Term Loan A Facility | Term Loan | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 1.7 |
Debt term | 5 years |
Term Loan B Facility | Term Loan | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 1.7 |
Debt term | 7 years |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Senior Notes (Details) - Senior Notes | Sep. 30, 2019 |
5 3/8% Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Stated rate | 5.375% |
5.000% Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Stated rate | 5.00% |
5.000% Euro Fixed Rate Notes due 2024 | |
Debt Instrument [Line Items] | |
Stated rate | 5.00% |
4.875% Euro Fixed Rate Notes due 2022 | |
Debt Instrument [Line Items] | |
Stated rate | 4.875% |
4.875% Euro Fixed Rate Notes due 2024 | |
Debt Instrument [Line Items] | |
Stated rate | 4.875% |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements - Financing Arrangements (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Available | $ 1,400 |
Letters of credit | 20 |
Tenneco Inc. revolving credit agreement | |
Debt Instrument [Line Items] | |
Available | 1,300 |
Tenneco Inc. Term Loan A | |
Debt Instrument [Line Items] | |
Available | 0 |
Tenneco Inc. Term Loan B | |
Debt Instrument [Line Items] | |
Available | 0 |
Subsidiaries’ credit agreements | |
Debt Instrument [Line Items] | |
Available | $ 100 |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Expense | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance fees | $ 5 | $ 1 | $ 14 | $ 3 |
Prepayments and other current assets | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance fees | 19 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Accretion of debt premium | $ 3 | $ 9 |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Senior Credit Facility (Details) - Line of Credit | Oct. 01, 2018 | Sep. 30, 2019covenant |
Debt Instrument [Line Items] | ||
Number of covenants | 2 | |
Consolidated fixed charge coverage ratio | 2 | |
Debt Covenant, Term 1 | ||
Debt Instrument [Line Items] | ||
Consolidated net leverage ratio | 4 | |
Debt Covenant, Term 2 | ||
Debt Instrument [Line Items] | ||
Consolidated net leverage ratio | 3.75 | |
Debt Covenant, Term 3 | ||
Debt Instrument [Line Items] | ||
Consolidated net leverage ratio | 3.5 | |
Debt Covenant, Term 4 | ||
Debt Instrument [Line Items] | ||
Consolidated net leverage ratio | 2.75 |
Debt and Other Financing Arra_9
Debt and Other Financing Arrangements - Accounts Receivable Securitization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Accounts receivable outstanding and derecognized | $ 1,100 | $ 1,100 | $ 1,000 | ||
Deferred purchase price receivable | 47 | 47 | 154 | ||
Proceeds from factoring qualifying as sales | 1,100 | $ 600 | 3,600 | $ 2,100 | |
Financing charges on sale of receivables | 0 | 0 | |||
Accounts Receivable Securitization Programs | |||||
Debt Instrument [Line Items] | |||||
Borrowings on securitization programs | 3 | 3 | $ 6 | ||
Interest Expense | |||||
Debt Instrument [Line Items] | |||||
Financing charges on sale of receivables | $ 9 | $ 3 | $ 23 | $ 8 |
Pension Plans, Postretirement_3
Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
US | Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 1 |
Interest cost | 13 | 3 | 40 | 8 |
Expected return on plan assets | (17) | (4) | (51) | (11) |
Net amortization: | ||||
Actuarial loss | 1 | 1 | 3 | 3 |
Prior service cost (credit) | 0 | 0 | 0 | 0 |
Net pension and postretirement costs (credits) | (2) | 1 | (6) | 1 |
US | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 3 | 2 | 10 | 5 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net amortization: | ||||
Actuarial loss | 1 | 2 | 3 | 6 |
Prior service cost (credit) | (2) | 0 | (6) | (1) |
Net pension and postretirement costs (credits) | 2 | 4 | 7 | 10 |
Non-U.S. | Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 3 | 18 | 8 |
Interest cost | 6 | 3 | 18 | 9 |
Expected return on plan assets | (5) | (5) | (14) | (15) |
Net amortization: | ||||
Actuarial loss | 1 | 2 | 4 | 6 |
Prior service cost (credit) | 1 | 0 | 1 | 0 |
Net pension and postretirement costs (credits) | $ 9 | $ 3 | $ 27 | $ 8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ (9) | $ 22 | $ 5 | $ 73 |
Earnings before income taxes and noncontrolling interests | 69 | 88 | 23 | 276 |
Income tax benefit related to toll tax | (5) | 2 | (12) | |
Tax expense relating to acquisition charges | 9 | 11 | ||
Reasonably possible change in unrecognized tax benefits | 9 | 9 | ||
Spain | ||||
Income Tax Contingency [Line Items] | ||||
Income tax benefit related to valuation allowance | $ 37 | 33 | ||
Australia | ||||
Income Tax Contingency [Line Items] | ||||
Income tax benefit related to valuation allowance | $ 10 | $ 10 | ||
China and France | ||||
Income Tax Contingency [Line Items] | ||||
One time tax benefit | $ 4 |
Commitments and Contingencies -
Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued expenses and other current liabilities | $ 8 | $ 12 |
Deferred credits and other liabilities | 29 | 28 |
Environmental remediation accrual, discounted basis | $ 37 | $ 40 |
Weighted average discount rate | 1.30% | 2.90% |
Expected payments of environmental remediation costs, 2019 | $ 5 | |
Expected payments of environmental remediation costs, 2020 | 5 | |
Expected payments of environmental remediation costs, 2021 | 3 | |
Expected payments of environmental remediation costs, 2022 | 3 | |
Expected payments of environmental remediation costs, 2023 | 2 | |
Expected payments of environmental remediation costs, thereafter | $ 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Asset retirement obligation | $ 15 | $ 15 |
Accrued expenses and other current liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligation | 3 | 3 |
Deferred credits and other liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligation | $ 12 | $ 12 |
Commitments and Contingencies_3
Commitments and Contingencies - Other Legal Proceedings, Claims and Investigations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)LegalMatter | Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||
Estimated liability | $ 44 | $ 44 | $ 132 | |
Payments for settlement | $ 79 | |||
Decrease in estimated liability | $ 9 | |||
United States | ||||
Loss Contingencies [Line Items] | ||||
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | LegalMatter | 500 | |||
Europe | ||||
Loss Contingencies [Line Items] | ||||
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | LegalMatter | 50 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Warranty term | 1 year | |||
Forecast | ||||
Loss Contingencies [Line Items] | ||||
Payments for settlement | $ 30 |
Commitments and Contingencies_4
Commitments and Contingencies - Warranty Accrual Table (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||||
Beginning balance | $ 53 | $ 48 | $ 45 | $ 29 | $ 29 | $ 26 |
Accruals related to product warranties | 2 | 16 | 5 | 5 | 2 | 6 |
Reductions for payments made | (2) | (11) | (2) | (6) | (2) | (3) |
Foreign currency | (1) | 0 | 0 | 0 | 0 | 0 |
Ending balance | $ 52 | $ 53 | $ 48 | $ 28 | $ 29 | $ 29 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 10 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease expense | $ 33 | $ 97 |
Amortization of right-of-use assets | 1 | 1 |
Short-term lease expense | 3 | 7 |
Variable lease expense | 5 | 25 |
Sublease income | (1) | (1) |
Total lease expense | 41 | 129 |
Operating cash flows from operating leases | $ 43 | $ 125 |
Weighted average remaining lease term, operating lease | 4 years 9 months 10 days | 4 years 9 months 10 days |
Weighted average remaining lease term, finance lease | 2 years 9 months 25 days | 2 years 9 months 25 days |
Weighted average discount rate, operating lease | 4.26% | 4.26% |
Weighted average discount rate, finance lease | 4.33% | 4.33% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 342 |
Other current liabilities | 101 |
Other long-term liabilities | 237 |
Total operating lease liabilities | 338 |
Property, plant and equipment, gross | 2 |
Accumulated depreciation | (1) |
Total finance lease right-of-use assets | 1 |
Other current liabilities | 1 |
Other long-term liabilities | 1 |
Total finance lease liabilities | $ 2 |
Leases - Maturity Schedules (De
Leases - Maturity Schedules (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating leases | |
2019 (excluding the nine months ended September 30, 2019) | $ 33 |
2020 | 104 |
2021 | 80 |
2022 | 56 |
2023 | 39 |
Thereafter | 60 |
Total future undiscounted lease payments | 372 |
Less imputed interest | (34) |
Total reported lease liability | 338 |
Finance leases | |
2019 (excluding the nine months ended September 30, 2019) | 1 |
2020 | 1 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total future undiscounted lease payments | 2 |
Less imputed interest | 0 |
Total reported lease liability | $ 2 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 120 |
2020 | 100 |
2021 | 86 |
2022 | 68 |
2023 | 56 |
Beyond 2023 | 53 |
Total | $ 483 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 7 | $ 4 | $ 20 | $ 8 |
Cash-settled | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | 0 | 0 | $ 0 | (3) |
Vesting period | 3 years | |||
Share-settled | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Compensation expense | $ 7 | $ 4 | $ 20 | $ 11 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested Restricted Shares (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Restricted Shares | |
Nonvested Restricted Shares | |
Unvested, beginning balance (in shares) | shares | 178,550 |
Granted (in shares) | shares | 36,603 |
Vested (in shares) | shares | (172,667) |
Forfeited (in shares) | shares | (6,619) |
Unvested, ending balance (in shares) | shares | 35,867 |
Weighted Avg. Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 55.46 |
Granted (in dollars per share) | $ / shares | 34.06 |
Vested (in dollars per share) | $ / shares | 50.18 |
Forfeited (in dollars per share) | $ / shares | 55.64 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 63.27 |
Share-Settled RSUs | |
Nonvested Restricted Shares | |
Unvested, beginning balance (in shares) | shares | 440,403 |
Granted (in shares) | shares | 867,137 |
Vested (in shares) | shares | (90,040) |
Forfeited (in shares) | shares | (71,705) |
Unvested, ending balance (in shares) | shares | 1,145,795 |
Weighted Avg. Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 47.99 |
Granted (in dollars per share) | $ / shares | 34.21 |
Vested (in dollars per share) | $ / shares | 54.60 |
Forfeited (in dollars per share) | $ / shares | 40.71 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 37.99 |
Unrecognized compensation costs | $ | $ 47 |
Unrecognized compensation costs, not yet recognized | 2 years |
PSUs | |
Nonvested Restricted Shares | |
Unvested, beginning balance (in shares) | shares | 227,049 |
Granted (in shares) | shares | 634,511 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (54,455) |
Unvested, ending balance (in shares) | shares | 807,105 |
Weighted Avg. Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 49.18 |
Granted (in dollars per share) | $ / shares | 24.77 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 43.02 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 34.15 |
Shareholders' Equity - Shares O
Shareholders' Equity - Shares Outstanding (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Treasury stock (in shares) | 14,592,888 | 14,592,888 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Class A | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 175,000,000 | 135,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued at beginning of period (in shares) | 71,675,379 | 66,033,509 | |
Issuance (repurchased) pursuant to benefit plans (in shares) | 98,716 | (18,553) | |
Restricted stock forfeited and withheld for taxes (in shares) | (62,919) | (8,062) | |
Stock options exercised (in shares) | 8,438 | 16,199 | |
Shares issued at end of period (in shares) | 71,719,614 | 66,023,093 | |
Treasury stock (in shares) | 14,592,888 | 14,592,888 | |
Total shares outstanding (in shares) | 57,126,726 | 51,430,205 | |
Class B | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 25,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares issued at beginning of period (in shares) | 23,793,669 | ||
Issuance (repurchased) pursuant to benefit plans (in shares) | 0 | ||
Restricted stock forfeited and withheld for taxes (in shares) | 0 | ||
Stock options exercised (in shares) | 0 | ||
Shares issued at end of period (in shares) | 23,793,669 | ||
Treasury stock (in shares) | 0 | ||
Total shares outstanding (in shares) | 23,793,669 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 1,916 | |||
Balance at end of period | $ 1,837 | 1,837 | ||
Other comprehensive income (loss) attributable to noncontrolling interests | (22) | $ (3) | (17) | $ (2) |
Foreign currency translation adjustments and other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (383) | (336) | (395) | (263) |
Other comprehensive income (loss) before reclassifications adjustments | (77) | (28) | (66) | (103) |
Reclassification from other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (77) | (28) | (66) | (103) |
Income tax provision (benefit) | 2 | 0 | 3 | 2 |
Balance at end of period | (458) | (364) | (458) | (364) |
Pensions and other postretirement benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (298) | (268) | (297) | (275) |
Other comprehensive income (loss) before reclassifications adjustments | 0 | 0 | 0 | 0 |
Reclassification from other comprehensive income (loss) | 2 | 5 | 5 | 14 |
Other comprehensive income (loss) | 2 | 5 | 5 | 14 |
Income tax provision (benefit) | 1 | (1) | (3) | (3) |
Balance at end of period | (295) | (264) | (295) | (264) |
Cash flow hedge instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 1 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications adjustments | (1) | 0 | 0 | 0 |
Reclassification from other comprehensive income (loss) | 1 | 0 | 1 | 0 |
Other comprehensive income (loss) | 0 | 0 | 1 | 0 |
Income tax provision (benefit) | 0 | 0 | 0 | 0 |
Balance at end of period | $ 1 | $ 0 | $ 1 | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - Segment | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | 2 | 3 | 4 | 3 | |
Forecast | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating segments | 2 |
Segment Information - Segment I
Segment Information - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Line Items] | ||||
Revenues from external customers | $ 4,319 | $ 2,371 | $ 13,307 | $ 7,485 |
Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 0 | 0 | 0 | 0 |
Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 4,319 | 2,371 | 13,307 | 7,485 |
Operating Segments | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 89 | 5 | 281 | 16 |
Reclass and Elims | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 0 | 0 | 0 | 0 |
Reclass and Elims | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | (89) | (5) | (281) | (16) |
Clean Air | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 1,772 | 1,602 | 5,378 | 5,052 |
Clean Air | Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 1,772 | 1,602 | 5,378 | 5,052 |
Clean Air | Operating Segments | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 0 | 0 | 0 | 0 |
Powertrain | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 1,082 | 0 | 3,390 | 0 |
Powertrain | Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 1,082 | 0 | 3,390 | 0 |
Powertrain | Operating Segments | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 38 | 0 | 124 | 0 |
Ride Performance | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 671 | 461 | 2,113 | 1,480 |
Ride Performance | Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 671 | 461 | 2,113 | 1,480 |
Ride Performance | Operating Segments | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 42 | 5 | 126 | 16 |
Motorparts | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 794 | 308 | 2,426 | 953 |
Motorparts | Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 794 | 308 | 2,426 | 953 |
Motorparts | Operating Segments | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | 9 | 0 | 31 | 0 |
Corporate | ||||
Segment Reporting [Line Items] | ||||
Revenues from external customers | 0 | 0 | 0 | 0 |
Corporate | Intersegment Revenues | ||||
Segment Reporting [Line Items] | ||||
Intersegment revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Segment A
Segment Information - Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
EBITDA | $ 313 | $ 172 | $ 768 | $ 525 |
Items required to reconcile EBITDA to Net income (loss): | ||||
Depreciation and amortization | (165) | (60) | (503) | (180) |
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 148 | 112 | 265 | 345 |
Interest expense | (79) | (24) | (242) | (69) |
Income tax (expense) benefit | 9 | (22) | (5) | (73) |
Net income (loss) | 78 | 66 | 18 | 203 |
Clean Air | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 169 | 144 | 452 | 443 |
Powertrain | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 90 | 0 | 303 | 0 |
Ride Performance | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 20 | 14 | 1 | 58 |
Motorparts | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 113 | 53 | 268 | 153 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | $ (79) | $ (39) | $ (256) | $ (129) |
Segment Information - Segment R
Segment Information - Segment Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | $ 4,319 | $ 2,371 | $ 13,307 | $ 7,485 |
Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 1,772 | 1,602 | 5,378 | 5,052 |
Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 1,082 | 0 | 3,390 | 0 |
Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 671 | 461 | 2,113 | 1,480 |
Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 794 | 308 | 2,426 | 953 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 1,883 | 1,111 | 5,782 | 3,387 |
North America | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 759 | 735 | 2,352 | 2,248 |
North America | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 386 | 0 | 1,189 | 0 |
North America | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 225 | 180 | 685 | 545 |
North America | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 513 | 196 | 1,556 | 594 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 1,623 | 833 | 5,193 | 2,763 |
Europe, Middle East and Africa | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 581 | 559 | 1,831 | 1,839 |
Europe, Middle East and Africa | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 502 | 0 | 1,617 | 0 |
Europe, Middle East and Africa | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 311 | 177 | 1,038 | 614 |
Europe, Middle East and Africa | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 229 | 97 | 707 | 310 |
Rest of world | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 813 | 427 | 2,332 | 1,335 |
Rest of world | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 432 | 308 | 1,195 | 965 |
Rest of world | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 194 | 0 | 584 | 0 |
Rest of world | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 135 | 104 | 390 | 321 |
Rest of world | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 52 | 15 | 163 | 49 |
OE - Substrate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 775 | 596 | 2,258 | 1,869 |
OE - Substrate | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 775 | 596 | 2,258 | 1,869 |
OE - Substrate | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
OE - Substrate | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
OE - Substrate | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
OE - Value add | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 2,750 | 1,467 | 8,623 | 4,663 |
OE - Value add | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 997 | 1,006 | 3,120 | 3,183 |
OE - Value add | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 1,082 | 0 | 3,390 | 0 |
OE - Value add | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 671 | 461 | 2,113 | 1,480 |
OE - Value add | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 794 | 308 | 2,426 | 953 |
Aftermarket | Clean Air | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
Aftermarket | Powertrain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
Aftermarket | Ride Performance | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | 0 | 0 | 0 | 0 |
Aftermarket | Motorparts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales and operating revenues | $ 794 | $ 308 | $ 2,426 | $ 953 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Net Sales | $ 0 | $ 0 | $ 0 | $ 0 | |
Icahn Automotive Group LLC | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 48 | 138 | |||
Purchases | 0 | 0 | |||
Royalty and Other Income | 1 | 3 | |||
Receivables | 63 | 63 | $ 60 | ||
Payables and accruals | 1 | 1 | 12 | ||
PSC Metals, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 0 | 1 | |||
Purchases | 0 | 0 | |||
Royalty and Other Income | 0 | 0 | |||
Anqing TP Goetze Piston Ring Company Limited | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 1 | 1 | |||
Purchases | 14 | 43 | |||
Royalty and Other Income | 0 | 1 | |||
Receivables | 2 | 2 | 1 | ||
Payables and accruals | 21 | 21 | 22 | ||
Anqing TP Powder Metallurgy Company Limited | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 1 | 2 | |||
Purchases | 2 | 5 | |||
Royalty and Other Income | 0 | 0 | |||
Receivables | 0 | 0 | 1 | ||
Payables and accruals | 1 | 1 | 1 | ||
Dongsuh Federal-Mogul Industrial Co., Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 1 | 4 | |||
Purchases | 3 | 10 | |||
Royalty and Other Income | 0 | 0 | |||
Receivables | 1 | 1 | 1 | ||
Payables and accruals | 2 | 2 | 2 | ||
Federal-Mogul Powertrain Otomotiv A.S. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 10 | 52 | |||
Purchases | 51 | 155 | |||
Royalty and Other Income | 1 | 3 | |||
Receivables | 3 | 3 | 9 | ||
Payables and accruals | 29 | 29 | 16 | ||
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 0 | 0 | |||
Purchases | 1 | 6 | |||
Royalty and Other Income | 0 | 0 | |||
Receivables | 0 | 0 | 0 | ||
Payables and accruals | 1 | 1 | 1 | ||
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 1 | 3 | |||
Purchases | 5 | 13 | |||
Royalty and Other Income | 0 | 0 | |||
Receivables | 0 | 0 | 0 | ||
Payables and accruals | 2 | 2 | 0 | ||
Federal-Mogul TP Liners, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 4 | 12 | |||
Purchases | 0 | 0 | |||
Royalty and Other Income | 0 | 1 | |||
Receivables | 2 | 2 | 2 | ||
Payables and accruals | 7 | 7 | 7 | ||
Frenos Hidraulicos Autos | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 0 | 1 | |||
Purchases | 0 | 0 | |||
Royalty and Other Income | 0 | 0 | |||
Farloc Argentina SAIC | |||||
Related Party Transaction [Line Items] | |||||
Receivables | 1 | 1 | 0 | ||
Payables and accruals | 0 | 0 | 0 | ||
Montagewerk Abgastechnik Emden GmbH | |||||
Related Party Transaction [Line Items] | |||||
Net Sales | 2 | 4 | |||
Purchases | 0 | 0 | |||
Royalty and Other Income | 0 | 0 | |||
Receivables | 1 | 1 | 0 | ||
Payables and accruals | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Conden_3
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Ownership percentage of existing and future material domestic owned subsidiaries | 100.00% |
Supplemental Guarantor Conden_4
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||||
External | $ 4,319 | $ 2,371 | $ 13,307 | $ 7,485 | ||
Affiliated companies | 0 | 0 | 0 | 0 | ||
Net sales and operating revenues | 4,319 | 2,371 | 13,307 | 7,485 | ||
Costs and expenses | ||||||
Cost of sales | 3,653 | 2,002 | 11,310 | 6,329 | ||
Selling, general, and administrative | 249 | 138 | 853 | 443 | ||
Depreciation and amortization | 165 | 60 | 503 | 180 | ||
Engineering, research, and development | 78 | 39 | 248 | 118 | ||
Restructuring charges, asset impairments, and other | 43 | 16 | 128 | 57 | ||
Impairment | 9 | $ 0 | $ 60 | 0 | 69 | 0 |
Costs and expenses | 4,197 | 2,255 | 13,111 | 7,127 | ||
Other expense (income) | ||||||
Non-service postretirement benefit costs | 2 | 4 | 8 | 10 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | (1) | 0 | (34) | 0 | ||
Other (income) expense, net | (27) | 0 | (43) | 3 | ||
Total other expense (income) | (26) | 4 | (69) | 13 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 148 | 112 | 265 | 345 | ||
Interest expense: | ||||||
External, net of interest capitalized | 79 | 24 | 242 | 69 | ||
Affiliated companies, net of interest income | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes and noncontrolling interests | 69 | 88 | 23 | 276 | ||
Income tax expense (benefit) | (9) | 22 | 5 | 73 | ||
Equity in net income (loss) from affiliated companies | 0 | 0 | 0 | 0 | ||
Net income (loss) | 78 | 66 | 18 | 203 | ||
Less: Net income (loss) attributable to noncontrolling interests | 8 | 9 | 39 | 39 | ||
Net income (loss) attributable to Tenneco Inc. | 70 | 57 | (21) | 164 | ||
Comprehensive income (loss) attributable to Tenneco Inc. | (2) | 33 | (81) | 74 | ||
Reclass and Elims | ||||||
Revenues | ||||||
External | 0 | 0 | 0 | 0 | ||
Affiliated companies | (520) | (297) | (1,537) | (866) | ||
Net sales and operating revenues | (520) | (297) | (1,537) | (866) | ||
Costs and expenses | ||||||
Cost of sales | (520) | (297) | (1,537) | (866) | ||
Selling, general, and administrative | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Engineering, research, and development | 0 | 0 | 0 | 0 | ||
Restructuring charges, asset impairments, and other | 0 | 0 | 0 | 0 | ||
Impairment | 0 | 0 | ||||
Costs and expenses | (520) | (297) | (1,537) | (866) | ||
Other expense (income) | ||||||
Non-service postretirement benefit costs | 0 | 0 | 0 | 0 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | 0 | 0 | ||||
Other (income) expense, net | 0 | 6 | 0 | 16 | ||
Total other expense (income) | 0 | 6 | 0 | 16 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 0 | (6) | 0 | (16) | ||
Interest expense: | ||||||
External, net of interest capitalized | 0 | 0 | 0 | 0 | ||
Affiliated companies, net of interest income | 0 | 0 | 0 | 0 | ||
Earnings (loss) before income taxes and noncontrolling interests | 0 | (6) | 0 | (16) | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Equity in net income (loss) from affiliated companies | (258) | (109) | (350) | (327) | ||
Net income (loss) | (258) | (115) | (350) | (343) | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Tenneco Inc. | (258) | (115) | (350) | (343) | ||
Comprehensive income (loss) attributable to Tenneco Inc. | (140) | (115) | (251) | (343) | ||
Guarantor Subsidiaries | ||||||
Revenues | ||||||
External | 1,603 | 990 | 4,984 | 3,050 | ||
Affiliated companies | 241 | 145 | 694 | 402 | ||
Net sales and operating revenues | 1,844 | 1,135 | 5,678 | 3,452 | ||
Costs and expenses | ||||||
Cost of sales | 1,558 | 960 | 4,852 | 2,951 | ||
Selling, general, and administrative | 172 | 113 | 498 | 268 | ||
Depreciation and amortization | 54 | 24 | 218 | 71 | ||
Engineering, research, and development | 33 | 20 | 102 | 57 | ||
Restructuring charges, asset impairments, and other | 13 | 2 | 64 | 5 | ||
Impairment | 9 | 42 | ||||
Costs and expenses | 1,839 | 1,119 | 5,776 | 3,352 | ||
Other expense (income) | ||||||
Non-service postretirement benefit costs | 0 | 3 | (1) | 9 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | (1) | (3) | ||||
Other (income) expense, net | (33) | (35) | (10) | (11) | ||
Total other expense (income) | (34) | (32) | (14) | (2) | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 39 | 48 | (84) | 102 | ||
Interest expense: | ||||||
External, net of interest capitalized | 25 | 10 | 30 | 30 | ||
Affiliated companies, net of interest income | (6) | (5) | (20) | (12) | ||
Earnings (loss) before income taxes and noncontrolling interests | 20 | 43 | (94) | 84 | ||
Income tax expense (benefit) | 5 | 12 | (13) | 11 | ||
Equity in net income (loss) from affiliated companies | 124 | 37 | 196 | 122 | ||
Net income (loss) | 139 | 68 | 115 | 195 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Tenneco Inc. | 139 | 68 | 115 | 195 | ||
Comprehensive income (loss) attributable to Tenneco Inc. | 135 | 68 | 118 | 195 | ||
Nonguarantor Subsidiaries | ||||||
Revenues | ||||||
External | 2,716 | 1,381 | 8,323 | 4,435 | ||
Affiliated companies | 279 | 152 | 843 | 464 | ||
Net sales and operating revenues | 2,995 | 1,533 | 9,166 | 4,899 | ||
Costs and expenses | ||||||
Cost of sales | 2,615 | 1,339 | 7,995 | 4,244 | ||
Selling, general, and administrative | 76 | 25 | 354 | 175 | ||
Depreciation and amortization | 110 | 36 | 284 | 109 | ||
Engineering, research, and development | 45 | 19 | 146 | 61 | ||
Restructuring charges, asset impairments, and other | 30 | 14 | 64 | 52 | ||
Impairment | 0 | 27 | ||||
Costs and expenses | 2,876 | 1,433 | 8,870 | 4,641 | ||
Other expense (income) | ||||||
Non-service postretirement benefit costs | 2 | 1 | 9 | 1 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | 0 | (31) | ||||
Other (income) expense, net | 6 | 29 | (33) | (2) | ||
Total other expense (income) | 8 | 30 | (55) | (1) | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 111 | 70 | 351 | 259 | ||
Interest expense: | ||||||
External, net of interest capitalized | 0 | 4 | 17 | 10 | ||
Affiliated companies, net of interest income | (13) | 0 | 6 | 0 | ||
Earnings (loss) before income taxes and noncontrolling interests | 124 | 66 | 328 | 249 | ||
Income tax expense (benefit) | (3) | 10 | 54 | 62 | ||
Equity in net income (loss) from affiliated companies | 0 | 0 | 0 | 0 | ||
Net income (loss) | 127 | 56 | 274 | 187 | ||
Less: Net income (loss) attributable to noncontrolling interests | 8 | 9 | 39 | 39 | ||
Net income (loss) attributable to Tenneco Inc. | 119 | 47 | 235 | 148 | ||
Comprehensive income (loss) attributable to Tenneco Inc. | 5 | 47 | 133 | 148 | ||
Tenneco Inc | ||||||
Revenues | ||||||
External | 0 | 0 | 0 | 0 | ||
Affiliated companies | 0 | 0 | 0 | 0 | ||
Net sales and operating revenues | 0 | 0 | 0 | 0 | ||
Costs and expenses | ||||||
Cost of sales | 0 | 0 | 0 | 0 | ||
Selling, general, and administrative | 1 | 0 | 1 | 0 | ||
Depreciation and amortization | 1 | 0 | 1 | 0 | ||
Engineering, research, and development | 0 | 0 | 0 | 0 | ||
Restructuring charges, asset impairments, and other | 0 | 0 | 0 | 0 | ||
Impairment | 0 | 0 | ||||
Costs and expenses | 2 | 0 | 2 | 0 | ||
Other expense (income) | ||||||
Non-service postretirement benefit costs | 0 | 0 | 0 | 0 | ||
Equity in (earnings) losses of nonconsolidated affiliates, net of tax | 0 | 0 | ||||
Other (income) expense, net | 0 | 0 | 0 | 0 | ||
Total other expense (income) | 0 | 0 | 0 | 0 | ||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | (2) | 0 | (2) | 0 | ||
Interest expense: | ||||||
External, net of interest capitalized | 54 | 10 | 195 | 29 | ||
Affiliated companies, net of interest income | 19 | 5 | 14 | 12 | ||
Earnings (loss) before income taxes and noncontrolling interests | (75) | (15) | (211) | (41) | ||
Income tax expense (benefit) | (11) | 0 | (36) | 0 | ||
Equity in net income (loss) from affiliated companies | 134 | 72 | 154 | 205 | ||
Net income (loss) | 70 | 57 | (21) | 164 | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Tenneco Inc. | 70 | 57 | (21) | 164 | ||
Comprehensive income (loss) attributable to Tenneco Inc. | $ (2) | $ 33 | $ (81) | $ 74 |
Supplemental Guarantor Conden_5
Supplemental Guarantor Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 389 | $ 697 | ||
Restricted cash | 6 | 5 | ||
Receivables, net | 2,753 | 2,572 | ||
Inventories, net | 2,137 | 2,245 | ||
Prepayments and other current assets | 603 | 590 | ||
Total current assets | 5,888 | 6,109 | ||
Property, plant and equipment, net | 3,491 | 3,501 | ||
Investment in affiliated companies | 0 | 0 | ||
Long-term receivables, net | 10 | 10 | ||
Goodwill | 802 | 869 | ||
Intangibles, net | 1,578 | 1,519 | ||
Investments in nonconsolidated affiliates | 505 | 544 | ||
Deferred income taxes | 570 | 467 | ||
Other assets | 539 | 213 | ||
Total assets | 13,383 | 13,232 | ||
Current liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 161 | 153 | ||
Accounts payable | 2,651 | 2,759 | ||
Accrued compensation and employee benefits | 378 | 343 | ||
Accrued income taxes | 57 | 64 | ||
Accrued expenses and other current liabilities | 1,042 | 1,001 | ||
Total current liabilities | 4,289 | 4,320 | ||
Long-term debt | 5,408 | 5,340 | ||
Intercompany due to (due from) | 0 | 0 | ||
Deferred income taxes | 104 | 88 | ||
Postretirement benefits and other liabilities | 1,606 | 1,430 | ||
Commitments and contingencies | ||||
Total liabilities | 11,407 | 11,178 | ||
Redeemable noncontrolling interests | 139 | 138 | $ 28 | $ 42 |
Tenneco Inc. shareholders’ equity | 1,642 | 1,726 | ||
Noncontrolling interests | 195 | 190 | ||
Total equity | 1,837 | 1,916 | ||
Total liabilities, redeemable noncontrolling interests and equity | 13,383 | 13,232 | ||
Reclass and Elims | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepayments and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Investment in affiliated companies | (6,818) | (6,277) | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Investments in nonconsolidated affiliates | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 0 | (15) | ||
Total assets | (6,818) | (6,292) | ||
Current liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued compensation and employee benefits | 0 | 0 | ||
Accrued income taxes | 0 | (15) | ||
Accrued expenses and other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | (15) | ||
Long-term debt | 0 | 0 | ||
Intercompany due to (due from) | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Total liabilities | 0 | (15) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | (6,818) | (6,277) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (6,818) | (6,277) | ||
Total liabilities, redeemable noncontrolling interests and equity | (6,818) | (6,292) | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 201 | 329 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 893 | 943 | ||
Inventories, net | 940 | 958 | ||
Prepayments and other current assets | 156 | 254 | ||
Total current assets | 2,190 | 2,484 | ||
Property, plant and equipment, net | 1,148 | 1,131 | ||
Investment in affiliated companies | 1,615 | 1,421 | ||
Long-term receivables, net | 9 | 9 | ||
Goodwill | 497 | 263 | ||
Intangibles, net | 1,033 | 1,007 | ||
Investments in nonconsolidated affiliates | 43 | 43 | ||
Deferred income taxes | 321 | 255 | ||
Other assets | 150 | 48 | ||
Total assets | 7,006 | 6,661 | ||
Current liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 1 | 1 | ||
Accounts payable | 882 | 858 | ||
Accrued compensation and employee benefits | 93 | 88 | ||
Accrued income taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | 436 | 436 | ||
Total current liabilities | 1,412 | 1,383 | ||
Long-term debt | 229 | 3 | ||
Intercompany due to (due from) | 1,830 | 2,726 | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 768 | 225 | ||
Commitments and contingencies | ||||
Total liabilities | 4,239 | 4,337 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | 2,767 | 2,324 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 2,767 | 2,324 | ||
Total liabilities, redeemable noncontrolling interests and equity | 7,006 | 6,661 | ||
Nonguarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 188 | 364 | ||
Restricted cash | 6 | 5 | ||
Receivables, net | 1,860 | 1,629 | ||
Inventories, net | 1,197 | 1,287 | ||
Prepayments and other current assets | 417 | 311 | ||
Total current assets | 3,668 | 3,596 | ||
Property, plant and equipment, net | 2,335 | 2,361 | ||
Investment in affiliated companies | 0 | 0 | ||
Long-term receivables, net | 1 | 1 | ||
Goodwill | 305 | 383 | ||
Intangibles, net | 545 | 510 | ||
Investments in nonconsolidated affiliates | 462 | 501 | ||
Deferred income taxes | 236 | 200 | ||
Other assets | 375 | 180 | ||
Total assets | 7,927 | 7,732 | ||
Current liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 160 | 152 | ||
Accounts payable | 1,765 | 1,894 | ||
Accrued compensation and employee benefits | 285 | 255 | ||
Accrued income taxes | 57 | 52 | ||
Accrued expenses and other current liabilities | 556 | 488 | ||
Total current liabilities | 2,823 | 2,841 | ||
Long-term debt | 9 | 32 | ||
Intercompany due to (due from) | (200) | (215) | ||
Deferred income taxes | 104 | 88 | ||
Postretirement benefits and other liabilities | 806 | 705 | ||
Commitments and contingencies | ||||
Total liabilities | 3,542 | 3,451 | ||
Redeemable noncontrolling interests | 139 | 138 | ||
Tenneco Inc. shareholders’ equity | 4,051 | 3,953 | ||
Noncontrolling interests | 195 | 190 | ||
Total equity | 4,246 | 4,143 | ||
Total liabilities, redeemable noncontrolling interests and equity | 7,927 | 7,732 | ||
Tenneco Inc | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 4 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepayments and other current assets | 30 | 25 | ||
Total current assets | 30 | 29 | ||
Property, plant and equipment, net | 8 | 9 | ||
Investment in affiliated companies | 5,203 | 4,856 | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 223 | ||
Intangibles, net | 0 | 2 | ||
Investments in nonconsolidated affiliates | 0 | 0 | ||
Deferred income taxes | 13 | 12 | ||
Other assets | 14 | 0 | ||
Total assets | 5,268 | 5,131 | ||
Current liabilities: | ||||
Short-term debt, including current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 4 | 7 | ||
Accrued compensation and employee benefits | 0 | 0 | ||
Accrued income taxes | 0 | 27 | ||
Accrued expenses and other current liabilities | 50 | 77 | ||
Total current liabilities | 54 | 111 | ||
Long-term debt | 5,170 | 5,305 | ||
Intercompany due to (due from) | (1,630) | (2,511) | ||
Deferred income taxes | 0 | 0 | ||
Postretirement benefits and other liabilities | 32 | 500 | ||
Commitments and contingencies | ||||
Total liabilities | 3,626 | 3,405 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. shareholders’ equity | 1,642 | 1,726 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 1,642 | 1,726 | ||
Total liabilities, redeemable noncontrolling interests and equity | $ 5,268 | $ 5,131 |
Supplemental Guarantor Conden_6
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net cash provided (used) by operating activities | $ 64 | $ 37 |
Investing Activities | ||
Acquisition of business, net of cash acquired | (158) | 0 |
Proceeds from sale of assets | 8 | 6 |
Cash payments for property, plant, and equipment | (541) | (255) |
Net proceeds from sale of business | 22 | 0 |
Other | 0 | (2) |
Proceeds from deferred purchase price of factored receivables | 203 | 102 |
Net cash used by investing activities | (466) | (149) |
Financing Activities | ||
Cash dividends | (20) | (39) |
Repayments of term loans and notes | (278) | (35) |
Proceeds from term loans and notes | 171 | 12 |
Issuance (repurchase) of common shares | (2) | (2) |
Net increase (decrease) in bank overdrafts | (12) | (5) |
Net increase (decrease) in short-term borrowings secured by accounts receivable | (3) | 150 |
Borrowings on revolving lines of credit | 6,804 | 4,051 |
Payments on revolving lines of credit | (6,548) | (4,074) |
Other | 1 | (2) |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 0 | 0 |
Distributions to noncontrolling interest partners | (20) | (44) |
Net cash provided by (used by) financing activities | 93 | 12 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2 | (15) |
Increase (decrease) in cash, cash equivalents and restricted cash | (307) | (115) |
Cash, cash equivalents and restricted cash, beginning of period | 702 | 318 |
Cash, cash equivalents and restricted cash, end of period | 395 | 203 |
Reclass and Elims | ||
Operating Activities | ||
Net cash provided (used) by operating activities | (3) | (12) |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | |
Proceeds from sale of assets | 0 | 0 |
Cash payments for property, plant, and equipment | 0 | 0 |
Net proceeds from sale of business | 0 | |
Other | 0 | 0 |
Proceeds from deferred purchase price of factored receivables | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Financing Activities | ||
Cash dividends | 0 | 0 |
Repayments of term loans and notes | 0 | 0 |
Proceeds from term loans and notes | 0 | 0 |
Issuance (repurchase) of common shares | 0 | 0 |
Net increase (decrease) in bank overdrafts | 0 | 0 |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | 0 |
Borrowings on revolving lines of credit | 0 | 0 |
Payments on revolving lines of credit | 0 | 0 |
Other | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 3 | 12 |
Distributions to noncontrolling interest partners | 0 | 0 |
Net cash provided by (used by) financing activities | 3 | 12 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Operating Activities | ||
Net cash provided (used) by operating activities | 137 | 179 |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | |
Proceeds from sale of assets | 2 | 1 |
Cash payments for property, plant, and equipment | (166) | (98) |
Net proceeds from sale of business | 6 | |
Other | 3 | (2) |
Proceeds from deferred purchase price of factored receivables | 0 | 0 |
Net cash used by investing activities | (155) | (99) |
Financing Activities | ||
Cash dividends | 0 | 0 |
Repayments of term loans and notes | 0 | (14) |
Proceeds from term loans and notes | 0 | 0 |
Issuance (repurchase) of common shares | 0 | 0 |
Net increase (decrease) in bank overdrafts | 0 | 0 |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | 0 |
Borrowings on revolving lines of credit | 6,119 | 3,537 |
Payments on revolving lines of credit | (5,890) | (3,575) |
Other | 1 | (2) |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | (340) | (28) |
Distributions to noncontrolling interest partners | 0 | 0 |
Net cash provided by (used by) financing activities | (110) | (82) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Increase (decrease) in cash, cash equivalents and restricted cash | (128) | (2) |
Cash, cash equivalents and restricted cash, beginning of period | 329 | 7 |
Cash, cash equivalents and restricted cash, end of period | 201 | 5 |
Nonguarantor Subsidiaries | ||
Operating Activities | ||
Net cash provided (used) by operating activities | 45 | (122) |
Investing Activities | ||
Acquisition of business, net of cash acquired | (158) | |
Proceeds from sale of assets | 6 | 5 |
Cash payments for property, plant, and equipment | (375) | (157) |
Net proceeds from sale of business | 16 | |
Other | (4) | 0 |
Proceeds from deferred purchase price of factored receivables | 203 | 102 |
Net cash used by investing activities | (312) | (50) |
Financing Activities | ||
Cash dividends | 0 | 0 |
Repayments of term loans and notes | (201) | (21) |
Proceeds from term loans and notes | 171 | 12 |
Issuance (repurchase) of common shares | 0 | 0 |
Net increase (decrease) in bank overdrafts | (12) | (5) |
Net increase (decrease) in short-term borrowings secured by accounts receivable | (3) | 150 |
Borrowings on revolving lines of credit | 171 | 56 |
Payments on revolving lines of credit | (144) | (56) |
Other | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 128 | (18) |
Distributions to noncontrolling interest partners | (20) | (44) |
Net cash provided by (used by) financing activities | 90 | 74 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 2 | (15) |
Increase (decrease) in cash, cash equivalents and restricted cash | (175) | (113) |
Cash, cash equivalents and restricted cash, beginning of period | 369 | 311 |
Cash, cash equivalents and restricted cash, end of period | 194 | 198 |
Tenneco Inc | ||
Operating Activities | ||
Net cash provided (used) by operating activities | (115) | (8) |
Investing Activities | ||
Acquisition of business, net of cash acquired | 0 | |
Proceeds from sale of assets | 0 | 0 |
Cash payments for property, plant, and equipment | 0 | 0 |
Net proceeds from sale of business | 0 | |
Other | 1 | 0 |
Proceeds from deferred purchase price of factored receivables | 0 | 0 |
Net cash used by investing activities | 1 | 0 |
Financing Activities | ||
Cash dividends | (20) | (39) |
Repayments of term loans and notes | (77) | 0 |
Proceeds from term loans and notes | 0 | 0 |
Issuance (repurchase) of common shares | (2) | (2) |
Net increase (decrease) in bank overdrafts | 0 | 0 |
Net increase (decrease) in short-term borrowings secured by accounts receivable | 0 | 0 |
Borrowings on revolving lines of credit | 514 | 458 |
Payments on revolving lines of credit | (514) | (443) |
Other | 0 | 0 |
Intercompany dividend payments and net increase (decrease) in intercompany obligations | 209 | 34 |
Distributions to noncontrolling interest partners | 0 | 0 |
Net cash provided by (used by) financing activities | 110 | 8 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Increase (decrease) in cash, cash equivalents and restricted cash | (4) | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 4 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 0 | $ 0 |