Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 $.01 per share | ||
Trading Symbol | TEN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.6 | ||
Entity Common Stock, Shares Outstanding | 83,132,435 | ||
Documents Incorporated by Reference | Portions of Tenneco Inc.’s Definitive Proxy Statement related to the 2022 Annual Meeting of Stockholders to be filed subsequently are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001024725 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Milwaukee, Wisconsin |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Net sales and operating revenues | $ 18,035 | $ 15,379 | $ 17,450 |
Costs and expenses | |||
Cost of sales (exclusive of depreciation and amortization) | 15,665 | 13,402 | 14,912 |
Selling, general, and administrative | 1,017 | 889 | 1,138 |
Depreciation and amortization | 593 | 639 | 673 |
Engineering, research, and development | 285 | 273 | 324 |
Restructuring charges, net and asset impairments | 69 | 622 | 126 |
Goodwill and intangible impairment charges | 0 | 383 | 241 |
Costs and expenses | 17,629 | 16,208 | 17,414 |
Other income (expense) | |||
Non-service pension and postretirement benefit (costs) credits | 13 | 18 | (11) |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 57 | 47 | 43 |
Gain (loss) on extinguishment of debt | 8 | 2 | 0 |
Other income (expense), net | 72 | 38 | 53 |
Total other expense (income) | 150 | 105 | 85 |
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 556 | (724) | 121 |
Interest expense | (274) | (277) | (322) |
Earnings (loss) before income taxes and noncontrolling interests | 282 | (1,001) | (201) |
Income tax (expense) benefit | (182) | (459) | (19) |
Net income (loss) | 100 | (1,460) | (220) |
Less: Net income (loss) attributable to noncontrolling interests | 65 | 61 | 114 |
Net income (loss) attributable to Tenneco Inc. | $ 35 | $ (1,521) | $ (334) |
Basic earnings (loss) per share: | |||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 0.43 | $ (18.69) | $ (4.12) |
Weighted average shares outstanding (in shares) | 82,218,480 | 81,378,474 | 80,904,060 |
Diluted earnings (loss) per share: | |||
Diluted earnings (loss) per share of common stock (in dollars per share) | $ 0.42 | $ (18.69) | $ (4.12) |
Weighted average shares outstanding (in shares) | 83,600,027 | 81,378,474 | 80,904,060 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 100 | $ (1,460) | $ (220) |
Other comprehensive income (loss)—net of tax: | |||
Foreign currency translation adjustments | (83) | (12) | 16 |
Defined benefit plans | 227 | (11) | (45) |
Cash flow hedges | (2) | 4 | 0 |
Other comprehensive income (loss), net of tax | 142 | (19) | (29) |
Comprehensive income (loss) | 242 | (1,479) | (249) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 58 | 75 | 104 |
Comprehensive income (loss) attributable to common shareholders | $ 184 | $ (1,554) | $ (353) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 859 | $ 798 |
Restricted cash | 6 | 5 |
Receivables: | ||
Customer notes and accounts, net | 2,308 | 2,423 |
Other | 111 | 105 |
Inventories | 1,846 | 1,743 |
Prepayments and other current assets | 683 | 619 |
Total current assets | 5,813 | 5,693 |
Property, plant and equipment, net | 2,872 | 3,057 |
Long-term receivables, net | 5 | 8 |
Goodwill | 507 | 508 |
Intangibles, net | 1,056 | 1,194 |
Investments in nonconsolidated affiliates | 539 | 581 |
Deferred income taxes | 266 | 285 |
Other assets | 564 | 526 |
Total assets | 11,622 | 11,852 |
Current liabilities: | ||
Short-term debt, including current maturities of long-term debt | 57 | 162 |
Accounts payable | 2,955 | 2,917 |
Accrued compensation and employee benefits | 381 | 365 |
Accrued income taxes | 71 | 54 |
Accrued expenses and other current liabilities | 1,227 | 1,188 |
Total current liabilities | 4,691 | 4,686 |
Long-term debt | 5,018 | 5,171 |
Deferred income taxes | 105 | 89 |
Pension and postretirement benefits | 830 | 1,101 |
Deferred credits and other liabilities | 491 | 546 |
Commitments and contingencies (Note 13) | ||
Total liabilities | 11,135 | 11,593 |
Redeemable noncontrolling interests | 91 | 78 |
Tenneco Inc. shareholders’ equity: | ||
Preferred stock - $0.01 par value; none issued | 0 | 0 |
Additional paid-in capital | 4,462 | 4,442 |
Accumulated other comprehensive loss | (595) | (744) |
Accumulated deficit | (2,853) | (2,888) |
Shares held as treasury stock - at cost: (2021 and 2020 - 14,592,888 shares) | (930) | (930) |
Total Tenneco Inc. shareholders’ equity (deficit) | 85 | (119) |
Noncontrolling interests | 311 | 300 |
Total equity | 396 | 181 |
Total liabilities, redeemable noncontrolling interests, and equity | 11,622 | 11,852 |
Class A | ||
Tenneco Inc. shareholders’ equity: | ||
Common stock | 1 | 1 |
Class B | ||
Tenneco Inc. shareholders’ equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock (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) | 96,713,188 | 75,714,163 |
Treasury stock (in shares) | 14,592,888 | 14,592,888 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 0 | 20,308,454 |
Treasury stock (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net income | $ 100 | $ (1,460) | $ (220) |
Adjustments to reconcile net income (loss) to cash (used) provided by operating activities: | |||
Goodwill and intangible impairment charges | 0 | 383 | 241 |
Depreciation and amortization | 593 | 639 | 673 |
Deferred income taxes | 12 | 301 | (151) |
Stock-based compensation | 24 | 18 | 25 |
Restructuring charges and asset impairments, net of cash paid | (14) | 500 | 11 |
Change in pension and postretirement benefit plans | (34) | (94) | (57) |
Equity in earnings of nonconsolidated affiliates | (57) | (47) | (43) |
Cash dividends received from nonconsolidated affiliates | 64 | 23 | 53 |
Loss (gain) on sale of assets and other | 7 | (18) | 0 |
Changes in operating assets and liabilities: | |||
Receivables | (408) | (182) | (225) |
Inventories | (162) | 279 | 284 |
Payables and accrued expenses | 232 | 308 | (66) |
Accrued interest and accrued income taxes | 27 | (12) | 3 |
Other assets and liabilities | (151) | (9) | (84) |
Net Cash Provided by (Used in) Operating Activities, Total | 233 | 629 | 444 |
Investing Activities | |||
Acquisitions, net of cash acquired | 0 | 0 | (158) |
Proceeds from sale of assets | 55 | 29 | 20 |
Collection of divestiture receivable | 27 | 16 | 0 |
Net proceeds from sale of business | 1 | 9 | 22 |
Proceeds from sale of investment in nonconsolidated affiliates | 8 | 0 | 2 |
Cash payments for property, plant and equipment | (387) | (394) | (744) |
Proceeds from deferred purchase price of factored receivables | 472 | 283 | 250 |
Other | 0 | 0 | 2 |
Net cash (used) provided by investing activities | 176 | (57) | (606) |
Financing Activities | |||
Proceeds from term loans and notes | 839 | 654 | 200 |
Repayments and extinguishment costs of term loans and notes | (1,073) | (765) | (341) |
Borrowings on revolving lines of credit | 6,504 | 6,120 | 9,120 |
Payments on revolving lines of credit | (6,525) | (6,337) | (8,884) |
Cash dividends | 0 | 0 | (20) |
Debt issuance costs of long-term debt | (16) | (25) | 0 |
Net decrease in bank overdrafts | 0 | (2) | (13) |
Acquisition of additional ownership interest in consolidated affiliates | 0 | 0 | (10) |
Distributions to noncontrolling interests | (40) | (42) | (43) |
Other | (18) | 39 | (6) |
Net cash (used) provided by financing activities | (329) | (358) | 3 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | (18) | 23 | 23 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 62 | 237 | (136) |
Cash, cash equivalents, and restricted cash, beginning of period | 803 | 566 | 702 |
Cash, cash equivalents, and restricted cash, end of period | 865 | 803 | 566 |
Supplemental Cash Flow Information | |||
Cash paid during the year for interest | 219 | 246 | 284 |
Cash paid during the year for income taxes, net of refunds | 124 | 154 | 177 |
Non-cash inventory charge due to aftermarket product line exit | 44 | 73 | 0 |
Non-cash Investing Activities | |||
Period end balance of accounts payable for property, plant and equipment | 104 | 113 | 134 |
Deferred purchase price of receivables factored in the period | 463 | 299 | 253 |
Increase (decrease) in assets from redeemable noncontrolling interest transaction with owner | $ 0 | $ (53) | $ 53 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Total Tenneco Inc. Shareholders’ Equity (Deficit) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock | Noncontrolling Interests | Total Equity |
Beginning Balance at Dec. 31, 2018 | $ 1,726 | $ 1 | $ 4,360 | $ (692) | $ (1,013) | $ (930) | $ 190 | $ 1,916 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ (220) | (334) | (334) | 29 | (305) | ||||
Foreign currency translation adjustments | 16 | 26 | 26 | 26 | |||||
Defined benefit plans | (45) | (45) | (45) | (45) | |||||
Cash flow hedges | 0 | ||||||||
Comprehensive income (loss) | (249) | (353) | 29 | (324) | |||||
Acquisition of additional ownership interest in consolidated affiliates | (4) | (4) | (6) | (10) | |||||
Stock-based compensation, net | 23 | 23 | 23 | ||||||
Cash dividends | (20) | (20) | (20) | ||||||
Purchase accounting measurement period adjustment | (8) | (2) | (2) | ||||||
Distributions declared to noncontrolling interests | 0 | (17) | (17) | ||||||
Redeemable noncontrolling interest transaction with owner | 53 | 53 | 53 | 53 | |||||
Ending Balance at Dec. 31, 2019 | 1,425 | 1 | 4,432 | (711) | (1,367) | (930) | 194 | 1,619 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (1,460) | (1,521) | (1,521) | 29 | (1,492) | ||||
Foreign currency translation adjustments | (12) | (26) | (26) | 11 | (15) | ||||
Defined benefit plans | (11) | (11) | (11) | (11) | |||||
Cash flow hedges | 4 | 4 | 4 | 4 | |||||
Comprehensive income (loss) | (1,479) | (1,554) | 40 | (1,514) | |||||
Stock-based compensation, net | 17 | 17 | 17 | ||||||
Reclassification of redeemable noncontrolling interest to permanent equity | 82 | 82 | |||||||
Purchase accounting measurement period adjustment | 0 | ||||||||
Distributions declared to noncontrolling interests | (82) | (16) | (16) | ||||||
Redeemable noncontrolling interest transaction with owner | (53) | (7) | (7) | (7) | |||||
Ending Balance at Dec. 31, 2020 | 181 | (119) | 1 | 4,442 | (744) | (2,888) | (930) | 300 | 181 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 100 | 35 | 35 | 31 | 66 | ||||
Foreign currency translation adjustments | (83) | (76) | (76) | (3) | (79) | ||||
Defined benefit plans | 227 | 227 | 227 | 227 | |||||
Cash flow hedges | (2) | (2) | (2) | (2) | |||||
Comprehensive income (loss) | 242 | 184 | 28 | 212 | |||||
Stock-based compensation, net | 20 | 20 | 20 | ||||||
Purchase accounting measurement period adjustment | 0 | ||||||||
Distributions declared to noncontrolling interests | 0 | (17) | (17) | ||||||
Redeemable noncontrolling interest transaction with owner | 0 | ||||||||
Ending Balance at Dec. 31, 2021 | $ 396 | $ 85 | $ 1 | $ 4,462 | $ (595) | $ (2,853) | $ (930) | $ 311 | $ 396 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends (in dollars per share) | $ 0.25 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Tenneco Inc. (“Tenneco” or “the Company”) was formed under the laws of Delaware in 1996. Tenneco designs, manufactures, markets, and distributes products and services for light vehicle, commercial truck, off-highway, industrial, motorsport, and aftermarket customers. Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain and serves both original equipment (“OE”) manufacturers and the repair and replacement markets worldwide. On February 22, 2022, the Company entered into an Agreement and Plan of Merger with Pegasus Holdings III, LLC and Pegasus Merger Co. Refer t o Note 20, “Subsequent Events” for further information . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The Company consolidates into its financial statements the accounts of the Company, all wholly owned subsidiaries, and any partially owned subsidiary it has the ability to control. Control generally equates to ownership percentage, whereby investments more than 50% owned are consolidated. Investments in affiliates of 50% or less but greater than 20% where the Company exercises significant influence are accounted for using the equity method. Equity investments of 20% or less that do not have a readily determinable fair value are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments. Refer t o Note 7, “Investment in Nonconsolidated Affiliates” for further information . The Company does not have any subsidiaries that it consolidates based solely on the power to direct the activities and significant participation in the entity ’ s expected results that would not otherwise be consolidated based on control through voting interests. Further, its affiliates are businesses established and maintained in connection with its operating strategy and are not special purpose entities. All intercompany transactions and balances have been eliminated. Impairment of Investments in Affiliates The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss would be recorded, which would be measured as the difference between the carrying value and the fair value of the investment. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates. There are many uncertainties related to the COVID-19 global pandemic, the semiconductor shortage, other supply chain challenges, and the effects of inflation on commodities and other purchases that could negatively affect the Company’s results of operations, financial position, and cash flows. Reclassifications Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with maturities of 90 days or less from the date of original issuance to be cash equivalents. The Company is required to provide cash collateral in connection with certain contractual arrangements and statutory requirements. The Company has $6 million and $5 million of restricted cash at December 31, 2021 and 2020 in support of these arrangements and requirements. Notes and Accounts Receivable Notes and accounts receivable are stated at net realizable value, which approximates fair value. Receivables are reduced by an allowance for amounts that may become uncollectible in the future. The allowance is an estimate based on expected losses, current economic and market conditions, and a review of the current status of each customer’s trade accounts or notes receivable. A receivable is past due if payments have not been received within the agreed-upon invoice terms. Account balances are charged-off against the allowance when management determines the receivable will not be recovered. The allowance for doubtful accounts on “Customer notes and accounts, net” was $26 million and $32 million at December 31, 2021 and 2020. Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) or average cost methods. Work in process includes purchased parts such as substrates coated with precious metals. Cost of inventory includes direct materials, labor, and applicable manufacturing overhead costs. The value of inventories is reduced for excess and obsolescence based on management's review of on-hand inventories compared to historical and estimated future sales and usage. For the year ended December 31, 2019, the Company recorded non-cash charges to cost of goods sold to recognize the remaining step up in inventory fair values of $44 million from the Federal-Mogul LLC acquisition and $5 million from the Öhlins acquisition. Held for Sale and Divestitures The Company classifies assets and liabilities as held for sale (“disposal group”) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. The Company estimates fair value to approximate the expected proceeds to be received, less cost to sell, and compare it to the carrying value of the disposal group. An impairment charge is recognized when the carrying value exceeds the estimated fair value. At December 31, 2021 and 2020, the Company had $22 million and $15 million of assets held for sale, which primarily consists of land and buildings, and non-core machinery and equipment across multiple segments that are expected to be sold in the next twelve months, as well as $9 million and less than $1 million in related environmental and asset retirement obligation liabilities. The Company recognized non-cash impairment charges of $10 million, and $1 million, during the years ended December 31, 2021 and 2020 resulting from recognizing the related assets as held for sale. In the fourth quarter of 2020, the Company closed on the sale of a non-core business and its related assets for $15 million. The Company received $6 million of the purchase price at closing in 2020 with the remaining to be received in installment payments through the fourth quarter of 2023. The Company recognized non-cash impairment charges of $1 million, and $8 million for the years ended December 31, 2020 and 2019 on recognizing the related assets as held for sale. On March 1, 2019, in accordance with a stock and asset purchase agreement, the Company sold certain assets and liabilities related to a non-core business and received proceeds of $22 million, subject to customary working capital adjustments. During the year ended December 31, 2020, the Company received $3 million of proceeds due to the finalization of working capital adjustments. 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 at December 31, 2021 and 2020. Acquisition 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, for a purchase price of $162 million (including $4 million of cash acquired). The remaining 9.5% ownership interest in Öhlins Intressenter AB (the “KÖ Interest”) was retained by K Öhlin Holding AB (“Köhlin”). Refer to “Redeemable Noncontrolling Interests” section below, for further information on the KÖ Interest. 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 in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. At December 31, 2021 and 2020, the Company held redeemable noncontrolling interests of $50 million and $45 million which were not currently redeemable or probable of becoming redeemable. The redemption of these redeemable noncontrolling interests is not solely within the Company’s control, therefore, they are presented in the temporary equity section of the Company’s 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. As such, these noncontrolling interests have not been remeasured to redemption value. In addition, at December 31, 2021 and 2020, the Company held a redeemable noncontrolling interest of $41 million and $33 million which was probable of becoming redeemable. This noncontrolling interest is also presented in the temporary equity section of the Company’s consolidated balance sheets and has been remeasured to its redemption value. The Company immediately recognizes changes to redemption value as a component of “Net income (loss) attributable to noncontrolling interests” in the consolidated statements of income (loss). Köhlin has an irrevocable right at any time after the third anniversary of the Öhlins acquisition to sell the KÖ Interest to the Company. During the years ended December 31, 2021, 2020 and 2019, the Company recognized an increase of $11 million, $10 million and $5 million to the carrying value of this noncontrolling interest. During the first quarter of 2020, the Company completed the process to make a tender offer of the shares it did not own for a subsidiary in India acquired by the Company as part of the Federal-Mogul LLC acquisition on October 1, 2018, in accordance with local regulations. As a result of completing the tender offer, the redeemable noncontrolling interest was no longer redeemable or probable of becoming redeemable and the amount of $82 million was reclassified to permanent equity during the year ended December 31, 2020. The Company recognized an adjustment of $53 million loss to income available to common shareholders concurrently with marking the related redeemable noncontrolling interest to its redemption value in the year ended December 31, 2019. Refer to Note 19, “Related Party Transactions”, for additional information related to the tender offer of this noncontrolling interest. The following is a rollforward of activities in the Company’s redeemable noncontrolling interests: Year Ended December 31 2021 2020 2019 Balance at beginning of period $ 78 $ 196 $ 138 Net income attributable to redeemable noncontrolling interests 23 22 27 Other comprehensive (loss) income (4) 3 (10) Acquisition and other — — 17 Noncontrolling interest tender offer redemption — (46) — Redemption value remeasurement adjustments 11 10 58 Purchase accounting measurement period adjustments — — (8) Reclassification of noncontrolling interest to permanent equity — (82) — Dividends declared to noncontrolling interests (17) (25) (26) Balance at end of period $ 91 $ 78 $ 196 Long-Lived Assets Long-lived assets, such as property, plant and equipment and definite-lived intangible assets are recorded at cost or fair value established at acquisition. Definite-lived intangible assets include customer relationships and platforms, patented and unpatented technology, and licensing agreements. Long-lived asset groups are evaluated for impairment when impairment indicators exist. If the carrying value of a long-lived asset group is impaired, an impairment charge is recorded for the amount by which the carrying value of the long-lived asset group exceeds its fair value. Depreciation and amortization are computed principally on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Expenditures for maintenance and repairs are expensed as incurred. Certain costs related to the purchase and development of software used in the business operations are capitalized and included in property, plant and equipment. Costs attributable to these software systems are amortized over their estimated useful lives based on various factors such as the effects of obsolescence, technology, and other economic factors. Additions to capitalized software development costs, including payroll and payroll-related costs for those employees directly associated with developing and obtaining the internal use software, are classified as investing activities in the consolidated statements of cash flows. Goodwill and Other Indefinite-Lived Intangible Assets Goodwill is determined as the excess of fair value over amounts attributable to specific tangible and intangible assets. Goodwill is evaluated for impairment during the fourth quarter of each year, or more frequently, if impairment indicators exist. An impairment indicator exists when a reporting unit’s carrying value exceeds its fair value. When performing the goodwill impairment testing, a reporting unit’s fair value is based on valuation techniques using the best available information. The assessment of fair value utilizes a combination of the income approach and market approach. The impairment charge is the excess of the goodwill’s carrying value over the implied fair value of goodwill using a one-step quantitative approach. Other indefinite-lived intangible assets related to trade names and trademarks are stated at fair value established at acquisition or cost. These indefinite-lived intangible assets are evaluated for impairment during the fourth quarter of each year, or more frequently, if impairment indicators exist. An impairment exists when a trade name and trademark’s carrying value exceeds its fair value. The fair values of these assets are based upon the prospective stream of hypothetical after-tax royalty cost savings discounted at rates that reflect the rates of return appropriate for these intangible assets. The impairment charge is the excess of the asset’s carrying value over its fair value. Pre-production Design and Development and Tooling Assets The Company expenses pre-production design and development costs as incurred unless there is a contractual guarantee for reimbursement from the OE customer. Costs for molds, dies, and other tools used to make products sold on long-term supply arrangements for which the Company has title to the assets are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets. Costs for molds, dies, and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee for reimbursement or has the non-cancelable right to use the assets during the term of the supply arrangement from the customer are capitalized. “Prepayments and other current assets” in the consolidated balance sheets included $112 million and $143 million at December 31, 2021 and 2020 for in-process tools and dies being built for OE customers and unbilled pre-production design and development costs. Fair Value Measurements 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 the Company’s own assumptions. Income Taxes Deferred tax assets and liabilities are recognized on the basis of the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and the respective tax values, and net operating losses (“NOL”) and tax credit carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations in the period that includes the enactment date under the law. Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted. Valuation allowances are established in certain jurisdictions based on a more likely than not standard. The ability to realize deferred tax assets depends on the Company’s ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each tax jurisdiction. The Company considers the various possible sources of taxable income when assessing the realization of its deferred tax assets. The valuation allowances recorded against deferred tax assets generated by taxable losses in certain jurisdictions will affect the provision for income taxes until the valuation allowances are released. The Company’s provision for income taxes will include no tax benefit for losses incurred and no tax expense with respect to income generated in these jurisdictions until the respective valuation allowance is eliminated. The Company records uncertain tax positions on the basis of a two-step process whereby it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and for those tax positions that meet the more likely than not criteria, the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority is recognized. The Company elected to account for Global Intangible Low-Taxed Income (“GILTI”) as a current-period expense when incurred. Pension and Other Postretirement Benefit Plan Obligations Pensions and other postretirement employee benefit costs and related liabilities and assets are dependent upon assumptions used in calculating such amounts. These assumptions include discount rates, long term rate of return on plan assets, health care cost trends, compensation, and other factors. Actual results that differ from the assumptions used are accumulated and amortized over future periods, and accordingly, generally affect recognized expense in future periods. The cost of benefits provided by defined benefit pension and other postretirement plans is recorded in the period employees provide service. Future pension expense for certain significant funded benefit plans is calculated using an expected return on plan asset methodology. Investments with registered investment companies, common and preferred stocks, and certain government debt securities are valued at the closing price reported on the active market on which the securities are traded. Corporate debt securities are valued by third-party pricing sources using the multi-dimensional relational model using instruments with similar characteristics. Hedge funds and the collective trusts are valued at net asset value (“NAV”) per share which are provided by the respective investment sponsors or investment advisers. Leases 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. Revenue Recognition The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Revenue is recognized for sales to OE and aftermarket customers when transfer of control of the related good or service has occurred. Revenue from most OE and aftermarket goods and services is transferred to customers at a point in time. The customer is invoiced once transfer of control has occurred and the Company has a right to payment. Typical payment terms vary based on the customer and the type of goods and services in the contract. The period of time between invoicing and when payment is due is not significant. Amounts billed and due from customers are classified as “Customer notes and accounts, net” in the consolidated balance sheets. Standard payment terms are less than one year and the Company applies the practical expedient to not assess whether a contract has a significant financing component if the payment terms are less than one year. Performance Obligations: The majority of the Company’s customer contracts with OE and aftermarket customers are long-term supply arrangements. The performance obligations are established by the enforceable contract, which is generally considered to be the purchase order but, in some cases could be the delivery release schedule. The purchase order, or related delivery release schedule, is of a duration of less than one year. As such, the Company does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. Rebates: The Company accrues for rebates pursuant to specific arrangements primarily with aftermarket customers. Rebates generally provide for payments to customers based upon the achievement of specified purchase volumes and are recorded as a reduction of sales as earned by such customers. Product Returns: Certain aftermarket contracts with customers include terms and conditions that result in a customer right of return that is accounted for on a gross basis. For these contracts the Company has recorded a refund liability within other accrued liabilities and a return asset within “Prepayments and other current assets” in the consolidated balance sheets. Shipping and Handling Costs: Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Cost of sales (exclusive of depreciation and amortization)” in the consolidated statements of income (loss). Sales and Sales Related Taxes: The Company collects and remits taxes assessed by various governmental authorities that are both imposed on and concurrent with revenue-producing transactions with its customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. The collection and remittance of these taxes is reported on a net basis. Contract Balances: Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. The contract assets are transferred to accounts receivable when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. There have been no impairment losses recognized related to any accounts receivable or contract assets arising from the Company’s contracts with customers. Engineering, Research, and Development The Company records engineering, research, and development costs (“R&D”) net of customer reimbursements as they are considered a recovery of cost. Advertising and Promotion Expenses The Company expenses advertising and promotional expenses as incurred and these expenses were $36 million, $24 million, and $45 million for the years ended December 31, 2021, 2020, and 2019. Other Income (Expense) Other income (expense) for the year ended December 31, 2021 includes $32 million in gains on sale-leaseback transactions. Other income (expense) for the year ended December 31, 2019 includes a $22 million recovery of value-added tax in a foreign jurisdiction. Foreign Currency Translation Exchange adjustments related to foreign currency transactions and remeasurement adjustments for foreign subsidiaries whose functional currency is the U.S. dollar are reflected in the consolidated statements of income (loss). Translation adjustments of foreign subsidiaries for which local currency is the functional currency are reflected in the consolidated balance sheets as a component of “Accumulated other comprehensive loss”. Transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred, except for those intercompany balances for which settlement is not planned or anticipated in the foreseeable future. The amounts recorded in “Cost of sales (exclusive of depreciation and amortization)” in the consolidated statements of income (loss) for foreign currency transactions included losses of $20 million, $17 million, and $11 million for the years ended December 31, 2021, 2020, and 2019. Derivative Financial Instruments |
Restructuring Charges, Net and
Restructuring Charges, Net and Asset Impairments | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges, Net and Asset Impairments | Restructuring Charges, Net and Asset Impairments 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), and facility closure and exit costs. Restructuring charges, net and asset impairments by segment are as follows: Year Ended December 31, 2021 Year Ended December 31, 2021 Motorparts Performance Solutions Clean Air Powertrain Corporate Total Severance and other charges, net $ 5 $ 12 $ 7 $ 22 $ 2 $ 48 Asset impairments related to restructuring actions 2 — — — — 2 Other non-restructuring asset impairments 1 — 1 — 7 9 Impairment of assets held for sale — — 10 — — 10 Total asset impairment charges 3 — 11 — 7 21 Total restructuring charges, asset impairments, and other $ 8 $ 12 $ 18 $ 22 $ 9 $ 69 Severance and other charges, net In response to the COVID-19 global pandemic, the Company announced Project Accelerate and executed global headcount reductions. The Company began implementing these actions during the second quarter of 2020 and expects to complete them during 2022. The Company recognized a reduction of $4 million in revisions to estimates for the cash severance costs expected to be paid in connection with these actions for the year ended December 31, 2021. The Company recognized a net charge of $27 million in severance and other charges expected to be paid for cost reduction initiatives aimed at optimizing the Company’s cost structure across all segments and regions for the year ended December 31, 2021. The Company also recognized severance and other charges of $25 million related to plant consolidations, relocations, and closures for the year ended December 31, 2021. During the year ended December 31, 2021, the Company made revisions to previously recorded estimates and reduced its restructuring reserves by $36 million due to various changes in the business, including natural attrition and changes in demand. Motorparts recognized severance and other charges, and revisions to estimates as follows: • $3 million in connection with its supply chain rationalization and distribution network initiative, which was initiated during the 2nd quarter of 2020, to achieve efficiencies and improve throughput to its customers in North America; • $2 million, along with a reduction of $7 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $7 million related to plant consolidations, relocations, and closures, primarily in Europe. Performance Solutions recognized severance and other charges, and revisions to estimates as follows: • $13 million, along with a reduction of $5 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; • $6 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations, relocations, and closures, primarily in North America; and • $1 million reduction as a result of revisions to estimates in connection with Project Accelerate. Clean Air recognized severance and other charges, and revisions to estimates as follows: • $18 million, along with a reduction of $12 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe; • $5 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations and closures primarily in North America and Asia Pacific; and • $3 million reduction as a result of revisions to estimates in connection with Project Accelerate. Powertrain recognized severance and other charges, and revisions to estimates as follows: • $12 million, along with a reduction of $6 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; • $9 million related to plant consolidations, relocations, and closures, primarily in Europe; and • $7 million restructuring costs incurred related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount. At December 31, 2021, total severance related restructuring charges for this program aggregate to $15 million. During the year ended December 31, 2021, an additional $5 million of special termination benefits were approved under this program. Total severance related charges are expected to be approximately $36 million, comprised of approximately $10 million for postemployment benefits, including an early retirement program, and $26 million of special termination benefits. In addition, the Company expects to incur additional costs of approximately $2 million for customer validation, equipment transfer, and related expenditures. The Company also incurred $2 million in cash and severance costs within its corporate component for the year ended December 31, 2021. Asset impairments Asset impairments related to restructuring actions During the year ended December 31, 2021, as a result of the supply chain rationalization and distribution network in the Motorparts segment, asset impairment charges of $2 million were recognized related to the write-down of property, plant and equipment. Refer to Note 4, “Inventories” for additional information related to this action. Other non-restructuring asset impairments During the year ended December 31, 2021, the Motorparts and Clean Air segments recognized asset impairment charges of $1 million and $1 million related to write-down of property, plant and equipment. During the year ended December 31, 2021, the Company assessed and concluded an impairment trigger had occurred in its corporate component and recognized an impairment charge of $7 million. The asset impairment charge included $3 million related to property, plant and equipment and $4 million related to operating lease right-of-use assets. Year Ended December 31, 2020 Year Ended December 31, 2020 Motorparts Performance Solutions Clean Air Powertrain Corporate Total Severance and other charges, net $ 17 $ 25 $ 22 $ 50 $ 5 $ 119 Asset impairments related to restructuring actions 26 — — 3 — 29 Other non-restructuring asset impairments — 455 — — 17 472 Impairment of assets held for sale 1 — — 1 — 2 Total asset impairment charges 27 455 — 4 17 503 Total restructuring charges, asset impairments, and other $ 44 $ 480 $ 22 $ 54 $ 22 $ 622 Severance and other charges, net In conjunction with the Company’s previously announced Project Accelerate, and in response to the COVID-19 global pandemic, the Company executed global headcount reductions. As noted above, the Company began implementing these actions during the second quarter of 2020. The Company recognized charges of $26 million in connection with the cash severance costs expected to be paid in connection with these actions for the year ended December 31, 2020. In addition to the actions above, the Company initiated several other cost reduction initiatives across all segments and regions aimed at optimizing the Company’s cost structure. The Company recognized cash severance charges of $65 million expected to be paid under these programs for the year ended December 31, 2020. The Company recognized severance and other charges of $28 million related to plant consolidations, relocations, and closures for the year ended December 31, 2020. Motorparts recognized severance and other charges, and revisions to estimates as follows: • $5 million in connection with Project Accelerate; • $7 million, along with a reduction of $2 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; • $4 million, along with a reduction of $1 million in revisions to estimates related to plant consolidations, relocations, and closures primarily in Europe; and • $4 million in connection with its supply chain rationalization and distribution network initiative to achieve efficiencies and improve throughput to its customers in North America. Performance Solutions recognized severance and other charges, and revisions to estimates as follows: • $3 million in connection with Project Accelerate; • $11 million, along with a reduction of $3 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $15 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations, relocations, and closures, primarily in North America. Clean Air recognized severance and other charges, and revisions to estimates as follows: • $9 million in connection with Project Accelerate; • $16 million, along with a reduction of $2 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $5 million, along with a reduction of $6 million in revisions to estimates, related to plant consolidations and closures primarily in Europe and Asia Pacific. Powertrain recognized severance and other charges, and revisions to estimates as follows: • $8 million in connection with Project Accelerate; • $23 million, along with a reduction of $1 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; • $17 million, along with a reduction of $5 million in revisions to estimates related to plant consolidations, relocations, and closures, primarily in Europe and North America; and • On June 30, 2020, the Company approved a voluntary termination program within the Powertrain segment at one of its European bearings ’ plants aimed at reducing headcount, as negotiated with the works council and union. The Company began implementing headcount reductions during 2020 and the program continued into 2021 through a voluntary early retirement program and a voluntary special termination program. During the year ended December 31, 2020, restructuring costs incurred related to this program were $8 million. The Company also incurred $4 million in cash severance costs for the elimination of certain redundant positions and $1 million in cash severance costs in connection with Project Accelerate within its corporate component for the year ended December 31, 2020. Asset impairments Asset impairments related to restructuring actions In the second quarter of 2020, the Motorparts segment initiated a rationalization of its supply chain and distribution network resulting in asset impairment charges of $25 million, which included $16 million related to the write-down of property, plant and equipment to its fair value, and $9 million of impairment charge to its operating lease right-of-use assets. During the year ended December 31, 2020, as a result of actions in the Motorparts and Powertrain segments, asset impairment charges of $1 million and $3 million were recognized related to the write-down of property, plant and equipment. Other non-restructuring asset impairments The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. During the first quarter of 2020, the Company concluded impairment triggers had occurred for certain long-lived asset groups in the Performance Solutions segment as a result of the effects of the COVID-19 global pandemic on the Company’s projected financial information. Accordingly, the Company tested these long-lived asset groups for recoverability by performing undiscounted cash flow analyses. Based on these analyses, the net carrying values of these asset groups exceeded their undiscounted future cash flows. As such, the Company estimated the fair values of these asset groups at March 31, 2020 and compared them to their carrying values. As the net carrying values of these long-lived asset groups exceeded their fair values, the Company recorded long-lived asset impairment charges for property, plant and equipment of $455 million during the year ended December 31, 2020. Refer to Note 8, “Financial Instruments and Fair Value” for additional information on the fair value estimates used in these analyses. As a result of changes in the business, during the first quarter of 2020, the Company assessed and concluded an impairment trigger had occurred for certain long-lived asset groups in its corporate component. Accordingly, the Company tested these long-lived asset groups for recoverability. The Company estimated the fair value of these asset groups and compared it to the carrying value. As the net carrying value exceeded fair value, the Company recorded long-lived asset impairment charges of $17 million for the year ended December 31, 2020. Included in the asset impairment charges for the year ended December 31, 2020 are $11 million related to property, plant and equipment and $6 million related to operating lease right-of-use assets. Year Ended December 31, 2019 Year Ended December 31, 2019 Motorparts Performance Solutions Clean Air Powertrain Corporate Total Severance and other charges, net $ 14 $ 28 $ 29 $ 31 $ 11 $ 113 Asset impairments related to restructuring actions — 3 — — — 3 Other non-restructuring asset impairments 1 — 1 — — 2 Impairment of assets held for sale 8 — — — — 8 Total asset impairment charges 9 3 1 — — 13 Total restructuring charges, asset impairments, and other $ 23 $ 31 $ 30 $ 31 $ 11 $ 126 The Company initiated several cost reduction initiatives across all segments and regions aimed at optimizing the Company’s cost structure. The Company recognized cash severance charges of $69 million expected to be paid under these programs for the year ended December 31, 2019. In addition, the Company recognized severance and other charges of $44 million related to plant consolidations, relocations, and closures for the year ended December 31, 2019. Severance and other charges, net Motorparts recognized severance and other charges, and revisions to estimates as follows: • $13 million, along with a reduction of $3 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $6 million, along with a reduction of $2 million in revisions to estimates related to plant consolidations, relocations, and closures primarily in North America and Europe. Performance Solutions recognized severance and other charges, and revisions to estimates as follows: • $10 million, along with a reduction of $1 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $19 million related to plant consolidations, relocations, and closures, primarily in North America. Clean Air recognized severance and other charges, and revisions to estimates as follows: • $18 million, along with a reduction of $4 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and • $17 million, along with a reduction of $2 million in revisions to estimates, related to plant consolidations and closures primarily in Europe and Asia Pacific. Powertrain recognized severance and other charges as follows: • $25 million in connection with cost reduction initiatives primarily in Europe; and • $6 million related to plant consolidations, relocations, and closures, primarily in North America. The Company also incurred $11 million in cash and severance costs within its corporate component for the year ended December 31, 2019. Asset impairments Asset impairments related to restructuring actions During the year ended December 31, 2019, as a result of actions in the Performance Solutions segment, an asset impairment charge of $3 million was recognized related to the write-down of property, plant and equipment. Other non-restructuring asset impairments During the year ended December 31, 2019, the Motorparts and Clean Air segments recognized asset impairment charges of $1 million and $1 million related to write-down of property, plant and equipment. Restructuring Reserve Rollforward The following table provides a summary of the Company’s consolidated restructuring liabilities and related activity for each type of exit costs: Employee Costs Facility Closure and Other Costs Total Balance at December 31, 2018 $ 98 $ 5 $ 103 Provisions 103 22 125 Revisions to estimates (12) — (12) Payments (92) (23) (115) Balance at December 31, 2019 97 4 101 Provisions 124 16 140 Revisions to estimates (18) (3) (21) Payments (106) (16) (122) Foreign currency 2 — 2 Balance at December 31, 2020 99 1 100 Provisions 74 10 84 Revisions to estimates (36) — (36) Payments (72) (11) (83) Foreign currency (2) — (2) Balance at December 31, 2021 $ 63 $ — $ 63 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory by major classification was as follows: December 31 2021 2020 Finished goods $ 747 $ 758 Work in process 508 449 Raw materials 510 441 Materials and supplies 81 95 Total inventories $ 1,846 $ 1,743 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net The components of property, plant and equipment, net were as follows: Useful Lives (in Years) December 31 2021 2020 Land — $ 251 $ 261 Buildings and improvements 10 to 50 984 1,086 Machinery, equipment and tooling 3 to 25 3,990 3,885 Capitalized software 3 to 12 248 265 Other, including construction in progress — 351 374 Property, plant and equipment , cost 5,824 5,871 Less: Accumulated depreciation and amortization (2,952) (2,814) Property, plant and equipment , net $ 2,872 $ 3,057 For the years ended December 31, 2021, 2020, and 2019, depreciation and amortization related to property, plant and equipment was $465 million, $509 million, and $535 million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company performs an annual quantitative goodwill and indefinite-lived asset impairment analysis during the fourth quarter, which requires it to estimate the fair value of its reporting units with goodwill. Refer to Note 8, “Financial Instruments and Fair Value”, for additional information on the fair value measurements used in the annual goodwill and indefinite-lived impairment analysis. As discussed in Note 18, “Segment and Geographic Area Information”, during the first quarter of 2021, the Company moved a reporting unit within the Powertrain segment to the Ride Performance segment and Ride Performance was renamed Performance Solutions. At December 31, 2021 and 2020, g oodwill consisted of the following: December 31, 2021 Motorparts Performance Solutions Clean Air Powertrain Total Gross carrying amount at beginning of period $ 623 $ 549 $ 23 $ 59 $ 1,254 Foreign exchange — (3) (1) — (4) Gross carrying amount at end of period 623 546 22 59 1,250 Accumulated impairment loss at beginning of period (310) (377) — (59) (746) Foreign exchange — 3 — — 3 Accumulated impairment loss at end of period (310) (374) — (59) (743) Net carrying value at end of period $ 313 $ 172 $ 22 $ — $ 507 December 31, 2020 Motorparts Performance Solutions Clean Air Powertrain Total Gross carrying amount at beginning of period $ 620 $ 543 $ 22 $ 59 $ 1,244 Reclassification from assets held for sale 2 — — — 2 Foreign exchange 1 6 1 — 8 Gross carrying amount at end of period 623 549 23 59 1,254 Accumulated impairment loss at beginning of period (239) (212) — (18) (469) Impairment (70) (156) — (41) (267) Foreign exchange (1) (9) — — (10) Accumulated impairment loss at end of period (310) (377) — (59) (746) Net carrying value at end of period $ 313 $ 172 $ 23 $ — $ 508 At December 31, 2021 and 2020, intangible assets consisted of the following: December 31, 2021 December 31, 2020 Useful Lives (in Years) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangible assets: Customer relationships and platforms 10 $ 993 $ (374) $ 619 $ 995 $ (282) $ 713 Customer contract 10 8 (7) 1 8 (6) 2 Patents 10 to 17 1 (1) — 1 (1) — Technology rights 10 to 30 135 (62) 73 139 (51) 88 Packaged kits know-how 10 54 (18) 36 54 (12) 42 Catalogs 10 47 (15) 32 47 (11) 36 Licensing agreements 3 to 5 64 (47) 17 66 (35) 31 Land use rights 28 to 46 51 (6) 45 49 (4) 45 $ 1,353 $ (530) 823 $ 1,359 $ (402) 957 Indefinite-lived intangible assets: Trade names and trademarks 233 237 Total $ 1,056 $ 1,194 The amortization expense associated with definite-lived intangible assets for the years ended December 31, 2021, 2020, and 2019 was $128 million, $130 million, and $138 million and is included in “Depreciation and amortization” within the consolidated statements of income (loss). The expected future amortization expense for the Company’s definite-lived intangible assets is as follows: 2022 2023 2024 2025 2026 2027 and thereafter Total Expected amortization expense $ 124 $ 121 $ 114 $ 114 $ 114 $ 236 $ 823 Year Ended December 31, 2021 For the annual impairment test performed in the fourth quarter of 2021, the estimated fair value of all reporting units with goodwill exceeded their carrying values and the estimated fair value of all indefinite-lived intangible assets exceeded their carrying values. As such, no impairment expense was recognized for the year ended December 31, 2021. At December 31, 2021, goodwill for reporting units within the Motorparts segment, Performance Solutions segment and two reporting units in the Clear Air segment where fair value exceeds carrying value greater than 25% was $496 million, and goodwill for a reporting unit within the Clean Air segment where the fair value exceeds carrying value by less than 25% was $11 million. Year Ended December 31, 2020 Impairment charges for goodwill and intangible assets recognized by segment consist of the following: Year Ended December 31, 2020 Motorparts Performance Solutions Powertrain Total Goodwill impairment charges $ 70 $ 156 $ 41 $ 267 Trade names and trademarks intangible asset impairment charges 40 11 — 51 Definite-lived intangible asset impairment charges — 65 — 65 $ 110 $ 232 $ 41 $ 383 During the first quarter of 2020, the Company concluded it was more likely than not that the fair values of certain of its reporting units and its indefinite-lived intangible assets had declined below their carrying values as a result of the effects of the COVID-19 global pandemic on the Company’s projected financial information. The Company completed a goodwill impairment analysis for four of its reporting units with goodwill in the Motorparts, Performance Solutions, and Powertrain segments. The difference between the reporting units’ carrying values and fair values were recognized as impairment charges. The Company recognized $267 million in non-cash impairment charges related to its goodwill during the year ended December 31, 2020, which represented full impairments of the goodwill in one reporting unit in the Performance Solutions segment and one reporting unit in the Powertrain segment, and partial impairments of goodwill in one reporting unit in the Motorparts segment and one reporting unit in the Performance Solutions segment. During the first quarter of 2020, the Company also completed an analysis to determine the fair value of its trade names and trademarks for its reporting units in the Motorparts and Performance Solutions segments. It was determined that their carrying values exceeded their fair values and the Company recognized $51 million in non-cash impairment charges related to these indefinite-lived intangible assets during the year ended December 31, 2020, which represented a full impairment of certain trade names and trademarks in the Motorparts segment, and a partial impairment of certain trade names and trademarks in the Motorparts and Performance Solutions segments. As discussed in more details in Note 3, “Restructuring Charges, Net and Asset Impairments”, the Company concluded impairment triggers had occurred during the first quarter of 2020 for certain long-lived asset groups within the Performance Solutions segment. As a result, the Company recorded non-cash impairment charges of $65 million related to its definite-lived intangible assets during the year ended December 31, 2020, which represented full impairments of the definite-lived intangible assets in two reporting units. For the annual impairment test performed in the fourth quarter of 2020, the estimated fair value of all reporting units with goodwill exceeded their carrying values and the estimated fair value of all indefinite-lived intangible assets exceeded their carrying values. As such, no additional impairment expense was recognized in the fourth quarter of 2020. Year Ended December 31, 2019 Impairment charges for goodwill and intangible assets recognized by segment consist of the following: Year Ended December 31, 2019 Motorparts Performance Solutions Powertrain Total Goodwill impairment charges $ 21 $ 69 $ 18 $ 108 Trade names and trademarks intangible asset impairment charges 133 — — 133 $ 154 $ 69 $ 18 $ 241 The Company recognized goodwill impairment charges of $108 million for the year ended December 31, 2019, which consisted of the following: • During the first quarter of 2019, the Company reorganized the reporting structure of its Aftermarket, Performance Solutions, 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 Performance Solutions 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 finalized purchase accounting for the Federal-Mogul LLC 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 Performance Solutions segment, which continued to represent a full impairment of goodwill in that reporting unit. This non-cash charge was recorded in the third quarter of 2019; and • As a result of the annual goodwill impairment analysis performed in the fourth quarter of 2019, the estimated fair value of one of the reporting units in the Motorparts segment was lower than its carrying value and an impairment charge of $21 million was recognized, which was a full impairment of the goodwill in that reporting unit. Additionally, the estimated fair value of one of the reporting units in the Powertrain segment was determined to be lower than the carrying value, and a partial goodwill impairment charge of $18 million was recognized. At December 31, 2019, this reporting unit has $40 million of goodwill after recognizing the impairment. This non-cash charge was recorded in the fourth quarter of 2019. As a result of the annual indefinite-lived intangible asset analysis performed in the fourth quarter of 2019, the estimated fair value of certain trade names and trademarks within the Motorparts segment were less than their carrying values. Accordingly, non-cash impairment charges of $133 million were recognized during the year ended December 31, 2019, both of which were partial impairments. |
Investment in Nonconsolidated A
Investment in Nonconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Nonconsolidated Affiliates | Investment in Nonconsolidated Affiliates The Company’s ownership interest in affiliates accounted for under the equity method is as follows: At December 31 2021 2020 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) 20.6 % 33.6 % Montagewerk Abgastechnik Emden GmbH (Germany) 50.0 % 50.0 % The carrying amount of the Company’s investments in its nonconsolidated affiliates accounted for under the equity method exceeded its share of the underlying net assets by $258 million and $287 million at December 31, 2021 and 2020. The “Equity in earnings (losses) of nonconsolidated affiliates, net of tax” within the consolidated statements of income (loss) includes a non-cash reduction of $12 million for the year ended December 31, 2019, which represents amounts to recognize the basis difference between the fair value and book value of certain assets, including inventory, property, plant and equipment, and intangible assets as a result of finalizing the purchase price allocation related to Federal-Mogul LLC acquisition in 2019. During the year ended December 31, 2021, the Company sold a portion of its investment in KB Autosys Co., Ltd. for cash proceeds of $8 million and recognized a loss on the sale of $4 million. The following tables present summarized aggregated financial information of the Company’s nonconsolidated affiliates. The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company’s proportionate share: Year Ended December 31 2021 2020 2019 Statements of Income Otomotiv A.S. Other Total Otomotiv A.S. Other Total Otomotiv A.S. Other Total Sales $ 347 $ 621 $ 968 $ 285 $ 555 $ 840 $ 305 $ 630 $ 935 Gross profit $ 102 $ 136 $ 238 $ 84 $ 115 $ 199 $ 79 $ 133 $ 212 Income from continuing operations $ 86 $ 90 $ 176 $ 71 $ 74 $ 145 $ 63 $ 85 $ 148 Net income $ 80 $ 78 $ 158 $ 65 $ 65 $ 130 $ 60 $ 76 $ 136 December 31 2021 2020 Balance Sheets Otomotiv A.S. Other Total Otomotiv A.S. Other Total Current assets $ 112 $ 489 $ 601 $ 167 $ 478 $ 645 Noncurrent assets $ 166 $ 375 $ 541 $ 141 $ 321 $ 462 Current liabilities $ 51 $ 178 $ 229 $ 29 $ 189 $ 218 Noncurrent liabilities $ 80 $ 36 $ 116 $ 108 $ 15 $ 123 The following table is a summary of transactions with the Company ’ s nonconsolidated affiliates: Year Ended December 31 2021 2020 2019 Net sales $ 75 $ 89 $ 104 Purchases $ 385 $ 320 $ 392 Royalty and other income (expense) $ 9 $ 8 $ 10 The following table is a summary of amounts due to and from the Company ’ s nonconsolidated affiliates: December 31 2021 2020 Receivables $ 10 $ 17 Payables and accruals $ 69 $ 86 |
Financial Instruments and Fair
Financial Instruments and Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Fair Value | Financial Instruments and Fair Value The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity price risk associated with share-based compensation awards, 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 or other financial instrument transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. In certain cases, the Company may or may not designate certain derivative instruments as hedges for accounting 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 Exchange Rate Risk The Company manufactures and sells its products globally. 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 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. 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 concentration of credit risk related to derivative contracts at December 31, 2021 and 2020 is not considered material to the consolidated financial statements. Equity Price Risk The Company has certain cash-settled share-based incentive compensation awards that are dependent upon the Company’s stock price. The related cash payouts increase as the stock price increases and decrease as the stock price decreases. The Company has entered into certain financial instruments that move in the opposite direction of the cash settlement of these awards. Based on the Company’s current position, these financial instruments mitigate the market risk related to the final settlement of the cash-settled share-based incentive compensation awards. Effective in the third quarter of 2021, investment options based on the Company’s stock price no longer exist under the incentive deferral plan and, at December 31, 2021, there are no deferred compensation balances correlated to the Company’s stock price. Refer to “ Other Financial Instruments ” section below for additional details on these liabilities and the related financial instruments used to reduce the Company’s equity price risk. Assets and Liabilities Measured at Fair Value on a Recurring Basis Asset and Liability Instruments The carrying value of cash and cash equivalents, restricted cash, short and long-term receivables, accounts payable, and short-term debt approximates fair value. Derivative Instruments The Company presents its derivative positions and any related material collateral under master netting agreements on a net basis. 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 and intercompany loans. The Company calculates the fair value of its foreign currency contracts using currency forward rates (level 2), to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. Derivative gains and losses associated with these foreign currency forward contracts are recognized in “Cost of sales (exclusive of depreciation and amortization)” in the consolidated statements of income (loss). The fair value of t hese derivative instrum ents at December 31, 2021 and 2020 is not considered material to the consolidated financial statements. The following table summarizes by position the notional amounts for foreign currency forward contracts at December 31, 2021, all of which mature in the next twelve months: Notional Amount Long positions $ 401 Short positions $ 396 Other Financial Instruments Cash-Settled Share and Index Swap Transactions The Company has certain employee compensation arrangements, including deferred compensation and cash-settled share-based units granted under its long-term incentive plan, that are valued based on the Company’s stock price. The share equivalents outstanding related to deferred compensation and cash-settled share-based awards are as follows: December 31 2021 2020 Restricted Stock Units (RSUs) 1,451,422 1,878,220 Performance Share Units (PSUs) 2,951,316 — 4,402,738 1,878,220 Deferred compensation arrangements (a) — 1,125,605 (a) At December 31, 2021, there are no share equivalents outstanding that are based on the Company’s stock price. On a prospective basis, the alternative for employees to invest their deferred compensation into these arrangements no longer exists. The Company has entered into financial instruments to mitigate the risk associated with both the vested and unvested portions of its cash-settled share-based incentive compensation awards and, prior to September 30, 2021, its deferred compensation liability. The number of common share equivalents under these agreements at December 31, 2021 and 2020 was 3,100,000 and 1,700,000. These financial instruments use the Company’s stock price as an observable input (level 2) in determining fair value. The estimated fair value of these financial instruments is as follows: December 31 Balance sheet classification 2021 2020 Other financial instruments in asset positions (a) Prepayments and other current assets $ 35 $ 1 (a) There was a cash premium of $7 million at December 31, 2020 associated with these financial instruments, which is included in “Prepayments and other current assets” in the consolidated balance sheets, and none at December 31, 2021. The gains and losses associated with these other financial instruments are recognized in “Selling, general, and administrative” in the consolidated statements of income (loss). 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. Commodity rate price forward contracts are executed to offset a portion of the exposure to potential change in prices for raw materials. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts. 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 reclassifying adjustments into “Cost of sales (exclusive of depreciation and amortization)” within the 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 $34 million and $10 million at December 31, 2021 and 2020. Substantially all of the commodity price hedge contracts mature within one year. The Company calculates the fair value of its commodity contracts using commodity forward rates (level 2), 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 these derivative instruments at December 31, 2021 and 2020 is not considered material to the consolidated financial statements. Net Investment Hedge—Foreign Currency Borrowings At December 31, 2020, the Company had foreign currency denominated debt, of which €344 million or $420 million, was designated as a net investment hedge in certain foreign subsidiaries and affiliates of the Company and was included in “Long-term debt” in the consolidated balance sheets. Changes to its carrying value were included in the consolidated statements of changes in shareholders’ equity in the foreign currency translation component of OCL and offset against the translation adjustments on the underlying net assets of those foreign subsidiaries and affiliates, which were also recorded in OCL. All of the outstanding foreign currency borrowings related to the net investment hedge were discharged on March 17, 2021, as a result, there are no outstanding foreign currency borrowings designated as a net investment hedge at December 31, 2021. The Company’s debt instruments are discussed further in Note 9, “Debt and Other Financing Arrangements”. The following table represents the amount of gain (loss) recognized in accumulated other comprehensive income (loss) before any reclassifications into net income (loss) of derivative and non-derivative instruments designated as hedges: Year Ended December 31 2021 2020 2019 Commodity price hedge contracts designated as cash flow hedges $ 6 $ 4 $ 1 Foreign currency borrowings designated as net investment hedges $ — $ (74) $ 20 The Company estimates approximately $2 million included in OCI or OCL at December 31, 2021 will be reclassified into net income (loss) within the following twelve months. Refer to Note 16, “Shareholders’ Equity” for further information. Assets and Liabilities Measured at Fair Value on a Nonrecurring 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. Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. During the first quarter of 2020, the Company concluded certain impairment triggers had occurred for certain long-lived asset groups as a result of the effects of the COVID-19 global pandemic on the Company’s projected financial information. After failing the undiscounted cash flow recoverability test, the Company estimated the fair values of these long-lived asset groups and compared them to their net carrying values. The fair value measurements related to these long-lived asset groups 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 the long-lived asset groups, the Company utilized an asset-based approach. The Company believes the assumptions and estimates used to determine the estimated fair values of the long-lived asset groups are reasonable; however, these estimates and assumptions are subject to a high degree of uncertainty. Due to the many variables inherent in estimating fair value, differences in assumptions could have a material effect on the results of the analyses. As the net carrying values of the long-lived asset groups exceeded their fair values, the Company recorded long-lived asset impairment charges consisting of $65 million of definite-lived intangible assets and $455 million of property, plant and equipment, during the year ended December 31, 2020. Refer to Note 3, “Restructuring Charges, Net and Asset Impairments” for additional information on asset impairments and refer to Note 6, “Goodwill and Other Intangible Assets”, for additional information on the definite-lived intangible asset impairments. Goodwill and Indefinite-Lived Intangible Assets During the first quarter of 2020, the Company concluded it was more likely than not that the fair values of certain of its reporting units and its trade names and trademarks had declined below their carrying values as a result of the effects of the COVID-19 global pandemic on the Company’s projected financial information. The Company completed analyses to estimate the fair values of these reporting units and trade names and trademarks. The Company believes the assumptions and estimates used to determine the estimated fair value are reasonable; however, these estimates and assumptions are subject to a high degree of uncertainty. Due to the many variables inherent in estimating fair value, differences in assumptions could have a material effect on the results of the analyses. The basis of the goodwill impairment and indefinite-lived intangible asset analyses is the Company’s current forecast of its annual budget and three-year strategic plan. This includes a projection of future cash flows, which requires the Company to make significant assumptions and estimates about the extent and timing of future cash flows and revenue growth rates. These represent Company-specific inputs and assumptions about the use of the assets, as observable inputs are not available (level 3). Due to the many variables inherent in estimating fair value and the relative size of the goodwill and indefinite-lived intangible assets, differences in assumptions could have a material effect on the results of the analyses. In the goodwill impairment analysis, for reporting units with goodwill, fair values are estimated using a combination of the income approach and market approach. The Company applies a 75% weighting to the income approach and a 25% weighting to the market approach. The most significant inputs in estimating the fair value of the Company’s reporting units under the income approach are (i) projected operating margins, (ii) the revenue growth rate, and (iii) the discount rate, which is risk-adjusted based on the aforementioned inputs. For the indefinite-lived asset impairment analysis, the fair value is based upon the prospective stream of hypothetical after-tax royalty cost savings discounted at rates that reflect the rates of return appropriate for these intangible assets. The primary inputs utilized in determining fair values of trade names and trademarks are (i) projected branded product sales, (ii) the revenue growth rate, (iii) the royalty rate, and (iv) the discount rate, which is risk-adjusted based on the projected branded sales. Refer to Note 6, “Goodwill and Other Intangible Assets”, for additional information on the goodwill and indefinite-lived intangible asset impairments. Financial Instruments Not Carried at Fair Value Estimated fair value of the Company’s outstanding debt is as follows: December 31, 2021 December 31, 2020 Fair Value Carrying Fair Carrying Fair Long-term debt (including current maturities): Term loans and senior notes Level 2 $ 4,998 $ 5,060 $ 5,153 $ 5,138 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | Debt and Other Financing Arrangements Long-Term Debt A summary of the Company’s long-term debt obligations is set forth in the following table: December 31, 2021 December 31, 2020 Principal Carrying Amount (a) Effective Interest Rate Principal Carrying Amount (a) Effective Interest Rate Credit Facilities Revolver Borrowings Due 2023 $ — $ — — % $ — $ — — % Term Loans LIBOR plus 1.75% Term Loan A due 2019 through 2023 (b) 1,403 1,396 2.081 % 1,530 1,520 2.876 % LIBOR plus 3.00% Term Loan B due 2019 through 2025 (c) 1,649 1,606 3.911 % 1,666 1,612 3.955 % Senior Unsecured Notes $225 million of 5.375% Senior Notes due 2024 (d) 225 223 5.560 % 225 223 5.609 % $500 million of 5.000% Senior Notes due 2026 (e) 500 496 5.171 % 500 494 5.219 % Senior Secured Notes (i) €300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024 (f) — — — % 366 370 4.620 % €350 million of 5.000% Euro Fixed Rate Notes due 2024 (f) — — — % 428 445 3.823 % $500 million of 7.875% Senior Secured Notes due 2029 (g) 500 490 8.049 % 500 489 8.212 % $800 million of 5.125% Senior Secured Notes due 2029 (h) 800 787 5.306 % — — — % Other debt, primarily foreign instruments (j) 26 26 24 23 5,024 5,176 Less - maturities classified as current (j) 6 5 Total long-term debt $ 5,018 $ 5,171 (a) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $78 million and $82 million at December 31, 2021 and 2020. Total unamortized debt discount (premium), net was $1 million and $(20) million at December 31, 2021 and 2020. (b) Principal and interest payable in 19 consecutive quarterly installments beginning March 31, 2019. At December 31, 2021, principal and interest is payable in seven remaining quarterly installments with $43 million being paid quarterly for seven quarters and the remainder at maturity. The interest rate on Term Loan A at December 31, 2020 was LIBOR plus 2.50%. (c) Principal and interest payable in 27 consecutive quarterly installments of $4 million beginning March 31, 2019 and the remainder at maturity. (d) Interest payable semiannually beginning on June 30, 2015 with principal due at maturity. (e) Interest payable semiannually beginning on January 31, 2017 with principal due at maturity. (f) The Company satisfied and discharged all of its 4.875% Euro Floating Rate Notes due 2024 and 5.000% Euro Fixed Rate Notes due 2024 on March 17, 2021. (g) On November 30, 2020, the Company issued $500 million aggregate principal amount of 7.875% senior secured notes due January 15, 2029. Interest payable semiannually on January 15 and July 15 of each year beginning on July 15, 2021 with principal due at maturity. (h) On March 17, 2021, the Company issued $800 million aggregate principal amount of 5.125% senior secured notes due April 15, 2029. Interest payable semiannually on April 15 and October 15 of each year beginning on October 15, 2021 with principal due at maturity. (i) Rank equally in right of payment to all indebtedness under the New Credit Facility (as subsequently defined). (j) Finance lease obligations included in other debt were $13 million and $8 million at December 31, 2021 and 2020. The maturities classified as current included the current portion of the finance lease obligations of $4 million and $3 million at December 31, 2021 and 2020. Refer to Note 14, “Leases” for additional information. The Company has excluded the required payments, due within the next twelve months, under the Term Loan A and Term Loan B facilities totaling $170 million and $17 million from current liabilities at December 31, 2021, because the Company has the intent and ability to refinance the obligations on a long-term basis by using its revolving credit facility. The aggregate maturities a pplicable to the long-term debt outstanding at December 31, 2021: Aggregate Maturities 2022 $ 193 2023 $ 1,255 2024 $ 246 2025 $ 1,607 2026 $ 502 Short-Term Debt The Company’s short-term debt consists of the following: At December 31 2021 2020 Maturities classified as current $ 6 $ 5 Short-term borrowings (a) 51 157 Total short-term debt $ 57 $ 162 Weighted average interest rate on outstanding short-term borrowings at end of year 3.2 % 3.6 % (a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements. Credit Facilities Financing Arrangements The table below shows the Company’s borrowing capacity on committed credit facilities at December 31, 2021 (in billions): December 31, 2021 Term Available (b) Tenneco Inc. revolving credit facility (a) 2023 $ 1.4 Tenneco Inc. Term Loan A 2023 — Tenneco Inc. Term Loan B 2025 — Subsidiaries’ credit agreements 2022-2028 — $ 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) At December 31, 2021, the Company had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under the revolving credit facility. The Company also had $76 million of outstanding letters of credit under uncommitted facilities at December 31, 2021. At December 31, 2021, the Company had liquidity of $2.3 billion comprised of $865 million of cash and $1.4 billion undrawn on its revolving credit facility. The Company had no outstanding borrowings on its revolving credit facility at December 31, 2021. During the fourth quarter of 2021, the Company issued a $42 million letter of credit under its revolving credit facility and is included in the $69 million of total outstanding letters of credit at December 31, 2021, which reduces the available borrowings under its revolving credit facility. The letter of credit supports a 1.7 billion Mexican peso (approximately $82 million using the exchange rate at December 31, 2021) surety bond issued to the Mexican tax authority. The surety bond is required in order for the Company to enter into the judicial process to appeal a tax assessment and covers the amount of the assessment plus interest. The Company does not believe it is probable it will have to pay the assessment or related interest. The Company also received a second assessment during the fourth quarter of 2021 from the Mexican tax authority of 0.6 billion Mexican peso (approximately $28 million using the exchange rate at December 31, 2021) for a separate matter, which has not required the issuance of a surety bond at this time. The Company does not believe it is probable it will have to pay this second assessment or related interest. At December 31, 2021 and 2020, the unamortized debt issuance costs related to the revolver of $11 million and $17 million are included in “Other assets” in the consolidated balance sheets. 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”), which has been amended by the first amendment, dated February 14, 2020 (the “First Amendment”), by the second amendment, dated February 14, 2020 (the “Second Amendment”), and by the third amendment, dated May 5, 2020 (the “Third Amendment”). 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”). During the year ended December 31, 2020, the Company paid $18 million in one-time fees in connection these amendments. The Company and Tenneco Automotive Operating Company Inc., a wholly-owned subsidiary, are borrowers under the New Credit Facility, and the Company is the sole borrower under the Term Loan A and Term Loan B facilities. The New Credit Facility is guaranteed on a senior basis by certain material domestic subsidiaries of the Company. Drawings under the revolving credit facility may be in U.S. dollars, British pounds or euros. The New Credit Facility is secured by substantially all domestic assets of the Company, the subsidiary guarantors, and by pledges of up to 66% of the stock of certain first-tier foreign subsidiaries. The security for the New Credit Facility is pari passu with the security for the outstanding senior secured notes of Federal-Mogul that were assumed by the Company in connection with the acquisition and the senior secured notes the Company issued on November 30, 2020 and on March 17, 2021. If any foreign subsidiary of the Company is added to the revolving credit facility as a borrower, the obligations of such foreign borrower will be secured by the assets of such foreign borrower, and also will be secured by the assets of, and guaranteed by, the domestic borrowers and domestic guarantors as well as certain foreign subsidiaries of the Company in the chain of ownership of such foreign borrower. New Credit Facility — Interest Rates and Fees At December 31, 2021, after giving effect to the Third Amendment, the interest rate on borrowings under the revolving credit facility and the Term Loan A facility was LIBOR plus 1.75% and will remain at LIBOR plus 1.75% for each relevant period for which the Company’s consolidated net leverage ratio (as defined in the New Credit Facility) is less than 3.00 to 1 and greater than 2.50 to 1. The interest rate on borrowings under the revolving credit facility and the Term Loan A facility are subject to step down as follows: Consolidated net leverage ratio Interest rate greater than 3.0 to 1 LIBOR plus 2.00% less than 3.0 to 1 and greater than 2.5 to 1 LIBOR plus 1.75% less than 2.5 to 1 and greater than 1.5 to 1 LIBOR plus 1.50% less than 1.5 to 1 LIBOR plus 1.25% The Third Amendment provides for an increase to the margin applicable to borrowings under the revolving credit facility and the Term Loan A facility at certain leverage levels as set forth below as one of several conditions for obtaining less restrictive financial maintenance covenants described below under New Credit Facility — Other Terms and Conditions : Consolidated net leverage ratio Interest rate greater than 6.0 to 1 LIBOR plus 2.50% less than 6.0 to 1 and greater than 4.5 to 1 LIBOR plus 2.25% Initially, and so long as the Company’s corporate family rating is Ba3 (with a stable outlook) or higher from Moody’s Investors Service, Inc. (“Moody’s”) and BB- (with a stable outlook) or higher from Standard & Poor’s Financial Services LLC (“S&P”), the interest rate on borrowings under the Term Loan B facility will be LIBOR plus 2.75%; at any time the foregoing conditions are not satisfied, the interest rate on the Term Loan B facility will be LIBOR plus 3.00%. When the Term Loan B facility is no longer outstanding and the Company and its subsidiaries have no other secured indebtedness (with certain exceptions set forth in the New Credit Facility), and upon the Company achieving and maintaining two or more corporate credit and/or corporate family ratings higher than or equal to BBB- from S&P, BBB- from Fitch Ratings Inc. (“Fitch”) and/or Baa3 from Moody’s (in each case, with a stable or positive outlook), the collateral under the New Credit Facility may be released. On June 3, 2019, Moody’s lowered our corporate family rating to B1 and the interest rate on borrowings under the term loan B was raised to LIBOR plus 3.00%. The New Credit Facility prescribes for an alternative method of determining interest rates in the event LIBOR is not available. New Credit Facility — Other Terms and Conditions The New Credit Facility contains representations and warranties, and covenants which are customary for debt facilities of this type. The Third Amendment provided relief from the financial maintenance covenants for the revolving credit facility and Term Loan A facility subject to the non-occurrence of certain covenant reset triggers (“Covenant Reset Triggers”) that limit certain activities of the Company by implementing more restrictive affirmative and negative covenants, as more fully described below. After giving effect to the Third Amendment, the financial maintenance covenants for the revolving credit facility and the Term Loan A facility include (i) a requirement to have a senior secured leverage ratio (as defined in the New Credit Facility), with step-downs, as detailed in the table below; (ii) a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility), with step-downs, as follows: (i) Senior secured net leverage ratio (ii) Consolidated net leverage ratio not greater than 8.75 to 1 at December 31, 2020 not greater than 4.50 to 1 at March 31, 2020 not greater than 8.25 to 1 at March 31, 2021 not greater than 5.25 to 1 at March 31, 2022 not greater than 4.50 to 1 at June 30, 2021 not greater than 4.75 to 1 at June 30, 2022 not greater than 4.25 to 1 at September 30, 2021 not greater than 4.25 to 1 at September 30, 2022 not greater than 4.00 to 1 at December 31, 2021 not greater than 3.75 to 1 thereafter and (iii) 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 as of March 31, 2020, 2.00 to 1 as of June 30, 2020, 1.50 to 1 through March 31, 2021, and 2.75 to 1 thereafter. The Company may make a one-time election to revert back to the previous financial maintenance covenants in effect immediately prior to the Third Amendment (the “Prior Financial Covenants”) and terminate the applicability of the Covenant Reset Triggers upon delivery of a covenant reset certificate to the administrative agent under the New Credit Facility that attests to compliance with the Prior Financial Covenants as of the end of the relevant fiscal period (“Covenant Reset Certificate”). If a Covenant Reset Trigger occurs, the financial maintenance covenants for the revolving credit facility and the Term Loan A facility revert back to the Prior Financial Covenants, including (i) a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility), at the end of each fiscal quarter, with step-downs, as follows: (i) Consolidated net leverage ratio not greater than 4.50 to 1 through March 31, 2021 not greater than 4.25 to 1 through September 30, 2021 not greater than 4.00 to 1 through March 31, 2022 not greater than 3.75 to 1 through September 30, 2022 not greater than 3.50 to 1 thereafter and (ii) 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. The Covenant Reset Triggers include certain limitations on the ability of the Company and its restricted subsidiaries to, among other things, (a) incur additional indebtedness, (b) enter into additional sales and leasebacks, (c) create additional liens over their assets, (d) pay dividends or distributions to Tenneco’s stockholders, (e) prepay certain unsecured indebtedness of the Company or its restricted subsidiaries (as more fully described below), (f) make additional investments, (g) dispose of material intellectual property, and (h) reinvest the proceeds of certain asset sales in the business in lieu of repaying indebtedness, each as more specifically described in the Third Amendment. These limitations are in addition to other affirmative and negative covenants (with customary exceptions, materiality qualifiers and limitations) in the New Credit Facility, including with respect to: financial reporting; payment of taxes; maintenance of existence; compliance with law and material contractual obligations; maintenance of property and insurance; inspection of property, books and records; notices of certain events; compliance with environmental laws; provision and maintenance of collateral perfection; satisfaction of the financial maintenance covenants described above; incurrence of indebtedness; permitting liens over assets; mergers, consolidations, dispositions or other fundamental transactions; dispositions and asset sales; restricted payments; investments; compliance with limitations on certain transactions with nonconsolidated affiliates; sale and leaseback transactions; changes in fiscal periods; negative pledge clauses in certain contracts; changes to lines of business; prepayments and modifications of certain subordinated indebtedness (as more fully described below); use of proceeds; transactions involving special purpose finance subsidiaries; and transactions related to effectuating a spin-off (as defined in the New Credit Facility), each as more specifically described in the New Credit Facility. The Covenant Reset Triggers in the Third Amendment generally prohibit the Company from repaying the Senior Unsecured Notes. After giving effect to the Third Amendment, so long as no default exists under its New Credit Facility, the Company would be permitted to (i) make regularly scheduled interest and principal payments as and when due in respect of the Senior Unsecured Notes, (ii) refinance the Senior Unsecured Notes with the net cash proceeds of permitted refinancing indebtedness (as defined in the New Credit Facility); (iii) make payments in respect of the Senior Unsecured Notes in an amount equal to the net cash proceeds of qualified capital stock (as defined in the New Credit Facility) issued after May 5, 2020; (iv) convert any Senior Unsecured Notes into qualified capital stock issued after May 5, 2020; and (v) make additional payments of the Senior Unsecured Notes provided that after giving effect to such additional payments the consolidated leverage ratio would be equal to or less than 2.00 to 1 after giving effect to such additional payments. The foregoing limitations regarding repayment and refinancing of the Senior Unsecured Notes apply from the effectiveness of the Third Amendment until delivery of a Covenant Reset Certificate. The covenants in the New Credit Facility generally prohibit the Company from repaying certain subordinated indebtedness. So long as no default exists, the Company would, under its New Credit Facility, be permitted to repay or refinance its subordinated indebtedness (i) with the net cash proceeds of permitted refinancing indebtedness (as defined in the New Credit Facility); (ii) in an amount equal to the net cash proceeds of qualified capital stock (as defined in the New Credit Facility) issued after October 1, 2018; (iii) in exchange for qualified capital stock issued after October 1, 2018; and (iv) with additional payments provided that such additional payments are capped based on a pro forma consolidated leverage ratio after giving effect to such additional payments. Such additional payments on subordinated indebtedness (x) will not be permitted at any time the pro forma consolidated leverage ratio is greater than 2.00 to 1 after giving effect to such additional payments and (y) will be permitted in an unlimited amount at any time the pro forma consolidated leverage ratio is equal to or less than 2.00 to 1 after giving effect to such additional payments. The New Credit Facility contains customary representations and warranties, including, as a condition to future revolver borrowings, that all such representations and warranties are true and correct, in all material respects, on the date of borrowing, including representations (with customary exceptions, materiality qualifiers and limitations) as to: existence; compliance with law; power, authority and enforceability; no violation of law or material contracts; material litigation; no default under the New Credit Facility and related documents; ownership of property, including material intellectual property; payment of material taxes; compliance with margin stock regulations; labor matters; ERISA; Investment Company Act matters; subsidiaries; use of loan proceeds; environmental matters; accuracy of information; security documents; solvency; anti-corruption laws and sanctions; and that since December 31, 2017 there has been no development or event that has had a material adverse effect on the business or financial condition of the Company and its subsidiaries, each as more specifically described in the New Credit Facility. The New Credit Facility includes customary events of default and other provisions that could require all amounts due thereunder to become immediately due and payable, either automatically or at the option of the lenders, if the Company fails to comply with the terms of the New Credit Facility or if other customary events occur. These events of default (with customary exceptions, materiality qualifiers, limitations and grace periods) include (i) failure to pay obligations under the New Credit Facility when due; (ii) material inaccuracy of representations and warranties; (iii) failure to comply with the covenants in the New Credit Facility and related documents (as summarized above); (iv) cross-default to material indebtedness; (v) commencement of bankruptcy or insolvency proceedings; (vi) ERISA events; (vii) certain material judgments; (viii) invalidity or unenforceability of security and guarantee documents; and (ix) change of control, each as more specifically described in the New Credit Facility. At December 31, 2021, the Company was in compliance with all the financial covenants of the New Credit Facility. Senior Notes At December 31, 2021, the Company had 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 also had outstand ing 7.875% senior secured notes due January 15, 2029 (“7.875% Senior Secured Notes”) which were issued on November 30, 2020, and 5.125% senior secured notes due April 15, 2029 (“5.125% Senior Secured Notes”) which were issued on March 17, 2021. The 7.875% Senior Secured Notes and 5.125% Senior Secured Notes (collectively, the “Senior Secured Notes”) were outstanding at December 31, 2021. On March 3, 2021, the Company provided notice of its intention to redeem all of the outstanding 5.000% euro denominated senior secured notes due July 15, 2024 (the “2024 Fixed Rate Secured Notes”) and all of the outstanding floating rate euro denominated senior secured notes due April 15, 2024 (the “2024 Floating Rate Secure d Notes” and, together with the 2024 Fixed Rate Secured Notes, the “2024 Secured Notes”). On March 17, 2021, the Company using the net proceeds of the offering of 5.125% Senior Secured Notes, together with cash on hand, satisfy and discharge each of the indentures governing the 2024 Secured Notes in accordance with their terms. As a result, the Company recorded a gain on extinguishment of debt of $8 million for the year ended December 31, 2021. On December 14, 2020, the Company used the net proceeds from the 7.875% Senior Secured Notes offering, together with cash on hand, to redeem all of the outstanding 4.875% euro denominated senior secured notes due 2022. As a result of the redemption of the 4.875% euro denominated senior secured notes, the Company recorded a gain on extinguishment of debt of $2 million for the year ended December 31, 2020. Senior Unsecured Notes: Under the indentures covering the Senior Unsecured Notes, the Company is permitted to redeem some or all of the outstanding Senior Unsecured Notes, at specified redemption prices that decline to par over a specified period, at any time (a) on or after December 15, 2019, in the case of the 2024 Senior Notes and (b) on or after July 15, 2021, in the case of the 2026 Senior Notes. The Company did not redeem any of the Senior Unsecured Notes during the year ended December 31, 2021. If the Company experiences specified kinds of changes in control, the Company must offer to repurchase the Senior Unsecured Notes at 101% of the principal amount thereof plus accrued and unpaid interest. In addition, if the Company sells certain of its assets and does not apply the proceeds from the sale in a certain manner within 365 days of the sale, the Company must use such unapplied sales proceeds to make an offer to repurchase the 2024 Senior Notes at 100% of the principal amount thereof plus accrued and unpaid interest. Senior Secured Notes: The Senior S ecured Notes are secured equally and ratably by a pledge of substantially all the Company ’ s subsidiaries’ domestic assets and by pledg es of up to 66% of the stock of certain first-tier foreign subsidiaries. The security for the Senior Secured Notes is pari passu with the security for the New Credit Facility. The Company is permitted to redeem some or all of the outstanding Senior Secured Notes at specified redemption prices that decline to par over a specified period, at any time (a) on or after January 15, 2024, in the case of the 7.875% Senior Secured Notes and (b) on or after April 15, 2024 in the case of the 5.125% Senior Secured Notes. In addition, the Company may redeem the 7.875% Senior Secured Notes at any time prior to January 15, 2024 and the 5.125% Senior Secured Notes at any time prior to April 15, 2024 at a redemption price equal to 100% of the principal amount thereof plus a “make-whole premium” as set forth in the indenture. Further, the Company may also redeem up to 40% of the 5.125% Senior Secured Notes with the proceeds of certain equity offerings at any time prior to April 15, 2024 at a redemption price of 105.125% of the principal amount thereto, and the Company may redeem up to 40% of the 7.875% Senior Secured Notes with the proceeds of certain equity offerings at any time prior to January 15, 2024 at a redemption price of 107.875% of the principal amount thereto. If the Company experiences specified kinds of changes in control, the Company must offer to repurchase the Senior Secured Notes at 101% of the principal amount thereof plus accrued and unpaid interest. In addition, if the Company sells certain of its assets and does not apply the proceeds from the sale in a certain manner within 365 days of the sale, the Company must use such unapplied proceeds to make an offer to repurchase the Senior Secured Notes at 100% of the principal amount thereof plus accrued and unpaid interest. The Company had designated a portion of the 2024 Secured Notes as a net investment hedge of its European operations. As such, the fluctuations in foreign currency exchange rates on the value of the designated 2024 Secured Notes was recorded to cumulative translation adjustment. Refer to Note 8, “Financial Instruments and Fair Value” for further details . Senior Unsecured Notes and Senior Secured Notes - Other Terms and Conditions The Senior Unsecured Notes and Senior Secured Notes contain covenants that, among other things, limit the ability of the Company to create liens and its subsidiaries to create liens on their assets and enter into sale and leaseback transactions. In addition, the indentures governing the Senior Secured Notes and 2024 Senior Notes also contain covenants that limit the ability of the Company and its subsidiaries to: (i) incur additional indebtedness; (ii) pay dividends, make distributions to stockholders and repurchase stock; (iii) make investments; (iv) sell assets; (v) enter into transactions with the affiliates; and (vi) undertake 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 Unsecured Notes and Senior Secured Notes to make distributions to the Company. At December 31, 2021, the Company was in compliance with all of its financial covenants under the indentures governing the Senior Unsecured Notes and Senior Secured Notes. Other Debt Other debt consists primarily of subsidiary debt and finance lease obligations. Factoring Arrangements In the Company’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. Some of these programs 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. At December 31, 2021 and 2020, the amount of accounts receivable outstanding and derecognized for factoring arrangements was $1.0 billion and $1.0 billion, of which $0.5 billion and $0.4 billion relate to accounts receivable where the Company has continuing involvement. In addition, the deferred purchase price receivable was $51 million and $51 million at December 31, 2021 and 2020. For the years ended December 31, 2021, 2020 and 2019, proceeds from the factoring of accounts receivable qualifying as sales were $5.2 billion, $4.1 billion and $5.0 billion, of which $3.9 billion, $3.3 billion and $4.2 billion were received on accounts receivable where the Company has continuing involvement. For the years ended December 31, 2021, 2020 and 2019, the Company’s financing charges associated with the factoring of receivables, which are included in “Interest expense” in the consolidated statements of income (loss), were $19 million, $20 million and $31 million. If the Company were not able to factor receivables under these programs, its borrowings under its revolving credit agreement might increase. These programs provide the Company with access to cash at costs that are generally favorable to alternative sources of financing and allow the Company to reduce borrowings under its revolving credit agreement. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities included the following: December 31 2021 2020 Accrued rebates $ 190 $ 191 Accrued freight 91 70 Operating lease liability 92 95 Accrued factoring payable 70 84 Non-income tax payable 69 128 Product return reserves 64 75 Restructuring liabilities 55 95 Accrued warranty 53 52 Accrued interest 41 29 Accrued professional services 40 46 Pension and postretirement benefits liability 38 43 Legal reserves 7 10 Environmental reserve 8 8 Other 409 262 $ 1,227 $ 1,188 |
Pension Plans, Postretirement a
Pension Plans, Postretirement and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans, Postretirement and Other Employee Benefits | Pension Plans, Postretirement and Other Employee Benefits Defined Contribution Plans The Company sponsors defined contribution plans that provide Company matching contributions for eligible U.S. salaried and hourly employees. Contributions are also made to certain non-U.S. defined contribution plans. The Company recorded expense for these defined contribution plans of approximately $78 million, $77 million and $76 million for the years ended December 31, 2021, 2020 and 2019. Defined Benefit Plans The Company sponsors defined benefit pension plans and health care and life insurance benefits for certain employees and retirees around the world. There are also unfunded nonqualified pension plans primarily covering U.S. executives, which are frozen with respect to future benefit accruals. The funding policy for defined benefit pension plans is to contribute the minimum required by applicable laws and regulations or to directly pay benefit payments where appropriate. At December 31, 2021, all legal funding requirements had been met. The Company expects to contribute $4 million to its U.S. pension plans, $46 million to its non-U.S. pension plans, and $18 million to its other postretirement plans in 2022. Other Benefits The Company also provides benefits to former or inactive employees paid after employment but before retirement. The liabilities for these postemployment benefits were $82 million and $81 million at December 31, 2021 and 2020. Significant Events In December 2021 and 2020, the Company recognized amendments to one of its U.S. postretirement health care benefit plans for certain retirees who will receive a fixed subsidy payment to purchase health care benefits on a marketplace exchange in lieu of the original plan’s medical benefits. The amendments to the plan resulted in negative plan amendments for the year ended December 31, 2021 and 2020. The Company reduced its obligation by $20 million with a corresponding decrease of $20 million in accumulated other comprehensive loss (net of taxes of $0 million) at December 31, 2021 and by $57 million with a corresponding decrease of $57 million in accumulated other comprehensive loss (net of taxes of $0 million) at December 31, 2020. The prior service credits generated by these negative plan amendments are being amortized on a straight-line basis as a reduction to net periodic postretirement benefit cost over participants’ average remaining life expectancy. During the year ended December 31, 2020, the Company paid lump sums out of certain pension plans in connection with a previously announced plant closure. These lump sums were paid out of the pension plan assets and resulted in a non-cash settlement charge of $6 million for the year ended December 31, 2020. In September 2020, the Company renegotiated one of its collective bargaining agreements in the U.S. which eliminated health care benefits in retirement if benefits were not commenced by September 24, 2021 for participants covered by the union agreement. This amendment resulted in a non-cash curtailment gain of $21 million for the year ended December 31, 2020. In December 2019, the Company approved an amendment for one of its U.S. postretirement benefit plans that eliminated health care and life insurance benefits in retirement for active salaried and nonunion hourly employees if benefits are not commenced by the earlier of (i) one-year from the date of separation, or (ii) July 1, 2021. In addition, the Company approved an amendment for another of its U.S. postretirement benefit plans to eliminate health care benefits for certain retirees. These actions reduced the Company’s obligations by $17 million with a corresponding decrease of $13 million to accumulated other comprehensive loss (net of taxes of $4 million) at December 31, 2019 and a non-cash curtailment gain of $7 million for the year ended December 31, 2019. The $17 million is being amortized on a straight-line basis as a reduction to net periodic postretirement benefit cost over participants’ average remaining service periods or remaining life expectancy. During 2019, the Company also offered a voluntary lump sum window for one of its U.S. defined benefit pension plans to terminated vested participants that met certain eligibility criteria. These benefits were paid in December 2019 out of the pension plan assets and resulted in a non-cash settlement charge of $5 million for the year ended December 31, 2019. The measurement date for all defined benefit plans is December 31. The following provides a reconciliation of the plans’ benefit obligations, plan assets, and funded status at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, beginning of year $ 1,383 $ 1,320 $ 1,122 $ 1,048 $ 237 $ 300 Service cost 2 1 26 25 — — Interest cost 31 41 17 18 6 9 Settlement — — (5) (17) — — Administrative expenses/taxes paid — — (5) (5) — — Plan amendments — 1 — — (20) (59) Actuarial (gain)/loss (45) 114 (39) 28 (16) 5 Other — — — 2 — — Benefits paid (93) (94) (43) (44) (18) (18) Participants’ contributions — — 1 1 1 — Currency rate conversion and other — — (50) 66 — — Benefit obligation, end of year 1,278 1,383 1,024 1,122 190 237 Change in plan assets: Fair value of plan assets, beginning of year 1,145 1,062 571 523 — — Settlement — — (5) (17) — — Actual return on plan assets 154 126 24 47 — — Administrative expenses/taxes paid — — (5) (5) — — Employer contributions 4 51 41 42 17 18 Participants’ contributions — — 1 1 1 — Benefits paid (93) (94) (43) (44) (18) (18) Other — — — 2 — — Currency rate conversion and other — — (13) 22 — — Fair value of plan assets, end of year 1,210 1,145 571 571 — — Funded status of the plans $ (68) $ (238) $ (453) $ (551) $ (190) $ (237) The actuarial gain arising during the year ended December 31, 2021 is primarily attributable to the increase in discount rates and asset returns exceeding the Company’s expected return on assets. The actuarial loss arising during the year ended December 31, 2020 is primarily due to a decrease in discount rates during the period, partially offset by asset returns exceeding the Company’s expected return on assets. Amounts recognized on the consolidated balance sheets consist of the following at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Noncurrent assets $ — $ — $ 75 $ 37 $ — $ — Current liabilities (3) (2) (17) (18) (18) (23) Noncurrent liabilities (a) (65) (236) (511) (570) (172) (214) $ (68) $ (238) $ (453) $ (551) $ (190) $ (237) (a) Included in “Pension and postretirement benefits” within the consolidated balance sheets are postemployment benefits of $82 million and $81 million at December 31, 2021 and 2020 which are not included in the tables above. Amounts recognized in accumulated other comprehensive loss for pension and postretirement benefits, pre-tax, consist of the following components at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Actuarial (gain) loss $ 144 $ 290 $ 108 $ 168 $ 14 $ 32 Prior service cost/(credit) 1 1 3 4 (109) (99) Total $ 145 $ 291 $ 111 $ 172 $ (95) $ (67) Information for defined benefit plans with projected benefit obligations in excess of plan assets: Pension Plans Other Postretirement Benefits Plans 2021 2020 U.S. Non-U.S. U.S. Non-U.S. 2021 2020 Projected benefit obligation $ 1,278 $ 645 $ 1,383 $ 743 $ 190 $ 237 Fair value of plan assets $ 1,210 $ 117 $ 1,145 $ 155 $ — $ — Information for pension plans with accumulated benefit obligations in excess of plan assets: December 31, 2021 December 31, 2020 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,278 $ 602 $ 1,383 $ 696 Accumulated benefit obligation $ 1,278 $ 561 $ 1,383 $ 654 Fair value of plan assets $ 1,210 $ 81 $ 1,145 $ 118 The accumulated benefit obligation for all pension plans is $2,247 million and $2,446 million at December 31, 2021 and 2020. Net periodic pension and postretirement benefits costs for the years ended December 31, 2021, 2020 and 2019, consist of the following components: Pension Plans Other Postretirement U.S. Non-U.S. 2021 2020 2019 2021 2020 2019 2021 2020 2019 Service cost $ 2 $ 1 $ 2 $ 26 $ 25 $ 24 $ — $ — $ 1 Interest cost 31 41 53 17 18 24 6 9 13 Expected return on plan assets (65) (64) (67) (16) (17) (19) — — — Curtailment loss (gain) — — — — — — — (21) (7) Settlement loss — 1 6 1 6 1 — — — Net amortization: Actuarial loss 12 6 5 8 8 5 2 2 4 Prior service cost (credit) — — — 1 — 1 (10) (7) (8) Net periodic costs $ (20) $ (15) $ (1) $ 37 $ 40 $ 36 $ (2) $ (17) $ 3 The following assumptions were used in the accounting for the pension and other postretirement benefits plans for the years ended December 31, 2021, 2020, and 2019: Pension Plans Other Postretirement U.S. Non-U.S. 2021 2020 2019 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine benefit obligations: Discount rate 2.8 % 2.3 % 3.2 % 1.9 % 1.5 % 1.7 % 2.9 % 2.5 % 3.2 % Rate of compensation increase n/a n/a n/a 1.9 % 1.8 % 2.0 % n/a n/a n/a Interest crediting rate 4.2 % 4.2 % 4.2 % 1.8 % 1.8 % 1.8 % n/a n/a n/a Weighted average assumptions used to determine net periodic benefit cost: Discount rate 2.3 % 3.2 % 4.2 % 1.5 % 1.7 % 2.6 % 2.5 % 3.2 % 4.3 % Expected long-term return on plan assets 6.2 % 6.3 % 6.3 % 2.9 % 3.5 % 4.0 % n/a n/a n/a Rate of compensation increase n/a n/a n/a 1.8 % 2.0 % 2.0 % n/a n/a n/a Interest crediting rate 4.2 % 4.2 % 4.2 % 1.8 % 1.8 % 1.8 % n/a n/a n/a Estimated future benefit payments are as follows: Pension Plans Other Postretirement Benefits Plans Year U.S. Non-U.S. 2022 $ 92 $ 51 $ 18 2023 $ 93 $ 48 $ 17 2024 $ 89 $ 46 $ 16 2025 $ 87 $ 48 $ 15 2026 $ 85 $ 50 $ 14 2027-2031 $ 380 $ 272 $ 61 Health Care Trend The weighted average assumed health care cost trend rate used in determining next year’s postretirement health care benefits are as follows: Other Postretirement Benefits Plans 2021 2020 2019 Initial health care cost trend rate 6.1 % 6.3 % 6.6 % Ultimate health care cost trend rate 4.9 % 4.9 % 4.9 % Year ultimate health care cost trend rate reached 2027 2027 2027 Long-term Rate of Return The Company’s expected return on assets is established annually through analysis of anticipated future long-term investment performance for the plan based upon the asset allocation strategy and is primarily a long-term prospective rate. An analysis was performed in December 2021 resulting in changes to the expected long-term rate of return on assets. The weighted average long-term rate of return on assets for the U.S. pension plans decreased from 6.2% at December 31, 2020 to 5.6% at December 31, 2021, primarily attributable to a change in target asset allocation strategy. The expected long-term rate of return on plan assets used in determining pension expense for non-U.S. plans is determined in a similar manner to the U.S. plans and decreased from 2.9% at December 31, 2020 to 2.7% at December 31, 2021. Plan Assets Certain pension plans sponsored by the Company invest in a diversified portfolio consisting of an array of asset classes that attempts to maximize returns while minimizing volatility. These asset classes include developed market equities, emerging market equities, private equity, global high quality and high yield fixed income, real estate, and absolute return strategies. U.S. Plans: The U.S. investment strategy mitigates risk by incorporating diversification across appropriate asset classes to meet the plans’ objectives. It is intended to reduce risk, provide long-term financial stability for the plan, and maintain funded levels that meet long-term plan obligations while preserving sufficient liquidity for near-term benefit payments. Risk assumed is considered appropriate for the return anticipated and consistent with the diversification of plan assets. As the funded status of the plans improved in 2021, the Company further mitigated risk by reducing plan assets allocated to equity investments and increasing plan assets allocated to fixed income investments. The Company’s investment strategy for the U.S. plans currently includes a target asset allocation of 54% equity investments and 46% fixed income investments. Non-U.S. Plans: The Company’s non-U.S. plans are individually managed to different target levels depending on the investing environment in each country and the funded status of each plan, with a reduction in the allocation of assets to equity and an increase in the allocation of assets to fixed income securities at higher funded ratios. The insurance contracts guarantee a minimum rate of return. The Company has no input into the investment strategy of the assets underlying the contracts, but they are typically heavily invested in active bond markets and are highly regulated by local law. Pension plan assets were invested in the following classes of securities: Percentage of Fair Market Value December 31, 2021 U.S. Non-U.S. Equity securities 53 % 14 % Fixed income securities 41 % 59 % Insurance contracts — % 20 % Other 6 % 7 % The assets of some of the Company’s pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools. The following table presents the Company’s defined benefit plan assets measured at fair value by asset class: Fair Value Level at December 31, 2021 U.S. Non-U.S. Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investments with registered investment companies: Equity securities $ 488 $ — $ — $ 488 $ 1 $ — $ — $ 1 Fixed income securities 106 — — 106 11 — — 11 Real estate and other — — — — — — — — Equity securities 4 — — 4 4 38 — 42 Debt securities: Corporate and other — 163 — 163 — — — — Government 115 46 — 161 4 176 — 180 Real Estate and other — — — — 1 29 — 30 Insurance contracts — — — — — — 113 113 Hedge funds — — 11 11 — — — — Cash and equivalents 62 — — 62 12 — — 12 Total $ 775 $ 209 $ 11 $ 995 $ 33 $ 243 $ 113 $ 389 Plan assets measured at net asset value Equity securities $ 149 $ 31 Government debt securities — 103 Corporate and other debt securities 66 48 Total plan assets measured at net asset value 215 182 Net plan assets $ 1,210 $ 571 Fair Value Level at December 31, 2020 U.S. Non-U.S. Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investments with registered investment companies: Equity securities $ 374 $ — $ — $ 374 $ 1 $ — $ — $ 1 Fixed income securities 140 — — 140 12 — — 12 Real estate and other 21 — — 21 — — — — Equity securities 242 — — 242 21 42 — 63 Debt securities: Corporate and other — 13 — 13 10 — — 10 Government 25 39 — 64 14 189 — 203 Real Estate and other — — — — 1 30 — 31 Insurance contracts — — — — — — 113 113 Hedge funds — — 17 17 — — — — Cash and equivalents 80 — — 80 5 — — 5 Total $ 882 $ 52 $ 17 $ 951 $ 64 $ 261 $ 113 $ 438 Plan assets measured at net asset value Equity securities $ 137 $ 84 Government debt securities — 36 Corporate and other debt securities 57 13 Total plan assets measured at net asset value 194 133 Net plan assets $ 1,145 $ 571 The Company’s level 1 assets were valued using market prices based on daily NAV or prices available daily through a public stock exchange. Its level 2 assets were valued primarily using market prices, sometimes net of estimated realization expenses, and based on broker/dealer markets or in commingled funds where NAV is not available daily or publicly. For insurance contracts, the estimated surrender value of the policy was used to estimate fair market value. The activity attributable to U.S. and non-U.S. Level 3 defined benefit pension plan investments was not significant in the years ended December 31, 2021, 2020, and 2019. The following table contains information about significant concentrations of risk, including all individual assets that make up more than 5% of the total assets and any direct investments in Tenneco stock: Asset Category Fair Value Fair Value Percentage of 2021: Tenneco stock 1 $ 4 0.2 % 2020: Tenneco stock 1 $ 4 0.2 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The U.S. and non-U.S. components of the Company’s earnings (loss) before income taxes and noncontrolling interests are as follows: Year Ended December 31 2021 2020 2019 U.S. earnings (loss) $ (395) $ (884) $ (599) Non-U.S. earnings (loss) 677 (117) 398 Earnings (loss) before income taxes and noncontrolling interests $ 282 $ (1,001) $ (201) The following table is a comparative analysis of the components of income tax expense (benefit): Year Ended December 31 2021 2020 2019 Current — U.S. federal $ (4) $ (11) $ 8 U.S. state and local 1 1 1 Non-U.S. 173 168 161 170 158 170 Deferred — U.S. federal (1) 336 (101) U.S. state and local — 35 (13) Non-U.S. 13 (70) (37) 12 301 (151) Income tax expense (benefit) $ 182 $ 459 $ 19 The following table is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (21% for 2021, 2020 and 2019) to the income tax expense (benefit) reflected in the consolidated statements of income (loss): Year Ended December 31 2021 2020 2019 Income tax expense (benefit) computed at the statutory U.S. federal income tax rate $ 59 $ (210) $ (42) Increases (reductions) in income tax expense resulting from: Non-U.S. income taxed at different rates 17 2 8 U.S. state and local taxes on income, net of U.S. federal income tax benefit (33) (26) (14) Changes in valuation allowance for tax loss carryforwards and credits 175 605 36 Tax credits and R&D incentives (21) (15) (19) Non-U.S. earnings subject to U.S. federal income tax 69 18 12 Non-deductible expenses / non-taxable items 24 15 16 Goodwill impairment and other non-deductible impairment — 65 22 Tax contingencies (72) 2 (7) Gains on transfers of subsidiaries — — 21 Nonconsolidated affiliates (11) (10) (8) Other (25) 13 (6) Income tax expense (benefit) $ 182 $ 459 $ 19 The tax expense recorded for the year ended December 31, 2021 includes valuation allowances in U.S. federal and state, as well as certain non-U.S. jurisdictions resulting in the Company’s inability to realize an income tax benefit for losses incurred. The Company has released $54 million of unrecognized tax benefits with a corresponding adjustment of $54 million to the Company’s valuation allowance as a result of the conclusion of income tax examinations in the first quarter of 2021. The tax expense recorded for the year ended December 31, 2020 included a $507 million tax expense relating to the full valuation allowance established for the U.S. deferred tax assets. The remaining $98 million of tax expense for changes in valuation allowances for deferred taxes relates to non-U.S. jurisdictions for which a reserve had been established in a previous year. During the first quarter of 2020, the Company concluded it was “more-likely-than-not” that the fair values of certain of its indefinite-lived intangible assets had declined to below their carrying values as a result of the effects of the COVID-19 global pandemic and completed a goodwill impairment analysis. As a result, the Company recorded $65 million of tax effect relating to goodwill and indefinite-lived intangible impairment. The tax expense recorded for the year ended December 31, 2019 included tax benefits of $33 million relating to a valuation allowance release for an entity in Spain, $22 million of tax expense relating to a goodwill impairment and $21 million of tax expense relating to gains on transfers of subsidiaries for entities in China and Luxembourg. The components of the Company’s net deferred tax assets were as follows: December 31 2021 2020 Deferred tax assets — Tax loss carryforwards: U.S. federal $ 11 $ — U.S. state 45 34 Non-U.S. 736 630 Tax credits 305 276 Postretirement benefits other than pensions 19 19 Pensions 80 148 Payroll accruals 33 31 Property, plant and equipment 205 244 Research expense capitalized for tax 121 102 Interest expense carryforward 56 — Intangibles 25 — Other accruals 205 216 Total deferred tax assets before valuation allowance 1,841 1,700 Less: Valuation allowance (1,589) (1,428) Total deferred tax assets 252 272 Deferred tax liabilities — Intangibles — 11 Other liabilities 91 65 Total deferred tax liabilities 91 76 Net deferred tax assets $ 161 $ 196 U.S. state tax loss carryforwards have been presented net of uncertain tax positions that, if realized, would reduce tax loss carryforwards in 2021 and 2020 by $1 million and $3 million. Additionally, non-U.S. tax loss carryforwards, have been presented net of uncertain tax positions that, if realized, would reduce tax loss carryforwards in 2021 and 2020 by $29 million and $43 million. The Company evaluates its deferred income taxes 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. Due to the sudden and sharp decline in industry demand, and the temporary suspension of production at the Company’s U.S. manufacturing facilities as a result of the COVID-19 global pandemic, it incurred a significant U.S. pre-tax loss for the year ended December 31, 2020. The results did not provide enough positive evidence of profitability of the U.S. operations, therefore, the realizability of the U.S. deferred tax assets was assessed. Combined with restructuring, impairment, and integration expenses, the Company had a cumulative loss for the three-year period ended December 31, 2020. The Company concluded that it was “more-likely-than-not” that it would not be able to utilize the U.S. deferred tax assets. Therefore, the Company established a full valuation allowance against the deferred tax assets in the U.S. during 2020. The Company’s U.S. operations remain in a cumulative loss for the three-year period ended December 31, 2021. Under the current tax laws, the valuation allowance will not limit the Company’s ability to utilize the U.S. deferred tax assets provided it can generate sufficient future taxable income in the U.S. The Company anticipates it will continue to record a valuation allowance against the losses until such time as they are able to determine it is “more-likely-than-not” the deferred tax asset will be realized. This position is dependent on whether there will be sufficient future taxable income to realize such deferred tax assets. As a result of the valuation allowances recorde d for $1,589 million and $1,428 million at December 31, 2021 and 2020, the Company has potential tax assets that were not recognized on its consolidated balance sheets. These unrecognized tax assets resulted primarily from non-U.S. tax loss carryforwards, U.S. federal and non-U.S. tax credit carryforwards, U.S. interest expense carryforward, and U.S. federal and state net operating losses (“NOLs”) that are available to reduce future tax liabilities. The Company’s state NOLs expire at various tax years from 2022 through 2041 or have unlimited carryforward potential. The Company’s non-U.S. NOLs expire at various tax years from 2022 through 2050 or have unlimited carryforward potential. The Company’s U.S. federal NOL has an unlimited carryforward potential. The Company has tax credit carryforwards in various U.S. and non-U.S. jurisdictions, these tax credit carryforwards expire at various times from 2022 through 2051 or have unlimited carryforward potential. The Company does not provide for U.S. income taxes on unremitted earnings of non-U.S. subsidiaries, except for the earnings of certain operations in China, Korea, India and Spain, as its present intention is to reinvest the unremitted earnings in the Company’s non-U.S. operations. Unremitted earnings of non-U.S. subsidiaries were approximately $2.6 billion at December 31, 2021 and the Company estimated the amount of U.S. and non-U.S. income taxes that would be accrued or paid upon remittance of the assets that represent those unremitted earnings was $129 million. Tax benefits from uncertain tax positions may be recognized when it is “more likely than not” that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company recognizes interest and penalties relating to uncertain tax positions as part of income tax expense (benefit). A reconciliation of the Company’s uncertain tax positions is as follows: 2021 2020 2019 Uncertain tax positions — Balance at beginning of period $ 208 $ 215 $ 224 Gross increases in tax positions in current period 6 4 12 Gross increases in tax positions in prior period 2 14 4 Gross decreases in tax positions in prior period (67) (7) (5) Gross decreases — settlements — — (12) Gross decreases — statute of limitations expired (21) (18) (8) Balance at end of period $ 128 $ 208 $ 215 At December 31, 2021 and 2020, there were $44 million and $70 million of unrecognized tax benefits that if recognized would favorably affect our effective tax rate in the future. Total interests and penalties related to uncertain tax positions recognized as part of income tax benefit was $1 million for the year ended December 31, 2021 and income tax expense was $2 million and $1 million for the years ended December 31, 2020 and 2019. At December 31, 2021 and 2020, the Company had accrued liabilities for interest and penalties of $17 million and $18 million related uncertain tax positions. The Company’s uncertain tax position at December 31, 2021 and 2020 included exposures relating to the disallowance of deductions, global transfer pricing, and various other issues. The Company released $54 million of unrecognized tax benefits with a corresponding adjustment of $54 million to the Company’s valuation allowance as a result of the conclusion of income tax examinations in the first quarter of 2021. The Company believes it is reasonably possible that a decrease of up to $41 million in unrecognized tax benefits related to the expiration of U.S. and non-U.S. statute of limitations and the conclusion of income tax examinations may occur within the next twelve months. The Company is subject to taxation in the U.S. and various state and non-U.S. jurisdictions. At December 31, 2021, the Company’s tax years open to examination in primary jurisdictions are as follows: Open To United States 2012 Belgium 2018 Brazil 2017 China 2012 France 2014 Germany 2012 India 2008 Italy 2016 Mexico 2014 Poland 2016 Spain 2017 United Kingdom 2016 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments The Company estimates expenditures aggregating to approximately $59 million will be required after December 31, 2021 to complete facilities and projects authorized at such date, and it has made substantial commitments in connection with these facilities and projects. 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 that 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 actively seeking to resolve these actual and potential statutory, regulatory, and contractual obligations. The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. At December 31, 2021, 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’s estimated share of environmental remediation costs for all these sites is recognized in the consolidated balance sheets as follows: December 31 2021 2020 Accrued expenses and other current liabilities $ 8 $ 8 Deferred credits and other liabilities 23 26 $ 31 $ 34 In addition to amounts described ab ove, the Company estimates it will make expenditures for property, plant and equipment for environmental matters of approximately $9 million in 2022 and $1 million in 2023. 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 consolidated financial position, results of operations, or liquidity. At December 31, 2021 and 2020, the Company has indemnifications in place on certain of these environmental reserves, which is not considered material to its consolidated financial statements. 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 approximately 500 cases in the U.S. and less than 50 in Europe. With respect to the claims filed in the U.S., 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 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 takes 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, the Company does not expect these legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its consolidated financial position, results of operations or liquidity. Asset Retirement Obligations The Company’s primary Asset Retirement Obligation (“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 consolidated balance sheets as follows: December 31 2021 2020 Accrued expenses and other current liabilities (a) $ 10 $ 2 Deferred credits and other liabilities 4 12 $ 14 $ 14 (a) Includes liabilities held for sale for $9 million at December 31, 2021, and none at December 31, 2020. Refe r to Note 2, “Summary of Significant Accounting Policies”, for additional information on assets and liabilities held for sale. 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 consolidated balance sheets. The following represents the changes in the Company’s warranty accrual accounts: Year Ended December 31 2021 2020 2019 Balance at beginning of period $ 62 $ 54 $ 45 Accruals and revisions to estimates 52 28 32 Settlements (44) (21) (23) Foreign currency (1) 1 — Balance at end of period $ 69 $ 62 $ 54 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 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. 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 (exclusive of depreciation and amortization)”, “Selling, general, and administrative” and “Engineering, research, and development” within the consolidated statements of income (loss). The Company’s lease agreements do not include significant restrictions or covenants and residual value guarantees are generally not included within its operating leases. The components of lease expense were as follows: Year Ended December 31 2021 2020 2019 Operating lease expense $ 126 $ 122 $ 131 Finance lease expense (amortization of right-of-use assets) 5 2 1 Short-term lease expense 8 6 13 Variable lease expense 6 24 26 Sublease income (4) (1) (1) Total lease expense $ 141 $ 153 $ 170 Other information related to leases was as follows: Year Ended December 31 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 126 $ 143 $ 160 Financing cash flows from finance leases $ 4 $ 2 $ 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 98 $ 170 Finance leases $ 6 $ 7 $ — Supplemental balance sheet information related to leases was as follows: December 31 2021 2020 Operating leases Other assets $ 319 $ 328 Accrued expenses and other current liabilities $ 92 $ 95 Deferred credits and other liabilities 240 241 Total operating lease liabilities $ 332 $ 336 Finance leases Property, plant and equipment, cost $ 24 $ 13 Accumulated depreciation and amortization (10) (6) Total finance lease right-of-use assets $ 14 $ 7 Short-term debt, including current maturities of long-term debt $ 4 $ 3 Long-term debt 9 5 Total finance lease liabilities $ 13 $ 8 Maturities of lease liabilities under non-cancellable leases at December 31, 2021 were as follows: Year ending December 31 Operating leases Finance leases 2022 $ 100 $ 5 2023 79 4 2024 53 3 2025 37 2 2026 25 — Thereafter 68 — Total future undiscounted lease payments 362 14 Less: imputed interest (30) (1) Total reported lease liability $ 332 $ 13 December 31 2021 2020 Weighted average remaining lease term (in years) Weighted average discount rate Weighted average remaining lease term (in years) Weighted average discount rate Operating leases 6.16 3.42 % 5.38 3.63 % Finance leases 3.35 2.66 % 3.97 3.07 % |
Leases | 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. 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 (exclusive of depreciation and amortization)”, “Selling, general, and administrative” and “Engineering, research, and development” within the consolidated statements of income (loss). The Company’s lease agreements do not include significant restrictions or covenants and residual value guarantees are generally not included within its operating leases. The components of lease expense were as follows: Year Ended December 31 2021 2020 2019 Operating lease expense $ 126 $ 122 $ 131 Finance lease expense (amortization of right-of-use assets) 5 2 1 Short-term lease expense 8 6 13 Variable lease expense 6 24 26 Sublease income (4) (1) (1) Total lease expense $ 141 $ 153 $ 170 Other information related to leases was as follows: Year Ended December 31 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 126 $ 143 $ 160 Financing cash flows from finance leases $ 4 $ 2 $ 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 98 $ 170 Finance leases $ 6 $ 7 $ — Supplemental balance sheet information related to leases was as follows: December 31 2021 2020 Operating leases Other assets $ 319 $ 328 Accrued expenses and other current liabilities $ 92 $ 95 Deferred credits and other liabilities 240 241 Total operating lease liabilities $ 332 $ 336 Finance leases Property, plant and equipment, cost $ 24 $ 13 Accumulated depreciation and amortization (10) (6) Total finance lease right-of-use assets $ 14 $ 7 Short-term debt, including current maturities of long-term debt $ 4 $ 3 Long-term debt 9 5 Total finance lease liabilities $ 13 $ 8 Maturities of lease liabilities under non-cancellable leases at December 31, 2021 were as follows: Year ending December 31 Operating leases Finance leases 2022 $ 100 $ 5 2023 79 4 2024 53 3 2025 37 2 2026 25 — Thereafter 68 — Total future undiscounted lease payments 362 14 Less: imputed interest (30) (1) Total reported lease liability $ 332 $ 13 December 31 2021 2020 Weighted average remaining lease term (in years) Weighted average discount rate Weighted average remaining lease term (in years) Weighted average discount rate Operating leases 6.16 3.42 % 5.38 3.63 % Finance leases 3.35 2.66 % 3.97 3.07 % |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company’s current long-term incentive compensation plan was adopted in 2021 and is known as the Tenneco Inc. 2021 Long-Term Incentive Plan (“2021 LTIP”). The types of awards that may be granted under the 2021 LTIP and its predecessor plan are common stock, stock options (both incentive and non-qualified stock options), stock appreciation rights (“SARs”), Full Value Awards (including bonus stock, stock units, restricted stock, restricted stock units (“RSUs”), deferred stock units, performance stock, and performance stock units (“PSUs”)), and cash incentive awards (including long-term performance units (“LTPUs”)). Under the 2021 LTIP, each share underlying a full value award subsequently issued counts as one share against total plan availability and share-settled awards are settled through the issuance of new shares of Class A Common Stock. At December 31, 2021, up to 2.7 million shares of our common stock remain available for delivery under the 2021 LTIP. Restricted stock awards are generally granted to directors and vest on the grant date. RSUs (both cash-settled and share-settled) are time-based service awards and generally vest according to a three-year graded vesting schedule. One-third of the award will vest on the first anniversary of the grant date, one-third of the award will vest on the second anniversary, and one-third of the award will vest on the third anniversary. The Company recognizes compensation cost on a straight-line basis for awards with service only conditions that have a graded vesting schedule. PSU (cash-settled and share-settled) awards generally have a three-year performance period and cliff vest at the end of the period based upon achievement of performance targets based upon the Company’s operating performance. The fair values of restricted stock and RSUs (cash-settled and share-settled) are determined using the average of the high and low trading price of the Company’s common stock on the date of measurement. The fair value of PSUs is determined using the probability weighted factors for performance conditions combined with a Monte Carlo simulation model for market conditions. Cash-Settled Awards The Company grants RSUs and PSUs 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 the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200% based on performance target achievement. Cash-settled share-based compensation expense is included in “Selling, general, and administrative” expenses in the consolidated statements of income (loss). In the first quarter of 2020, cash-settled LTPUs, with the value of each award based on cash targets, were granted. In the fourth quarter of 2020, the LTPUs were amended whereby the LTPUs were converted to PSUs and are now cash-settled share-based awards. The performance targets for the related modification were approved on February 3, 2021, with the grant date of the modified LTPUs (now PSUs) being the same date. Total cash-settled share-based compensation expense as well as cash paid for cash-settled awards is as follows: Year Ended December 31 2021 2020 2019 Total compensation expense - cash-settled (net of tax) $ 14 $ 2 $ 3 Cash paid for cash-settled awards $ 9 $ 4 $ 7 The following table reflects the number of cash-settled share-based units outstanding: December 31 2021 2020 RSUs 1,451,422 1,878,220 PSUs 2,951,316 — 4,402,738 1,878,220 At December 31, 2021 and 2020, the liability of all cash-settled RSUs was $6 million and $3 million. The liability of all cash-settled PSUs at December 31, 2021 was $10 million, and there were no outstanding cash-settled PSUs at December 31, 2020. At December 31, 2021, $30 million in unrecognized costs on the cash-settled awards is expected to be recognized over a weighted average period of approximately two years. Share-Settled Awards The Company grants RSUs and PSUs to certain key employees that are payable in common stock. These awards are settled in shares upon vesting, and valued at the grant date fair value with compensation expense being recognized in proportion to the completed requisite period up until the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. Share-settled share-based compensation expense is included in “Selling, general, and administrative” in the consolidated statements of income (loss). Total share-settled share-based compensation expense is as follows: Year Ended December 31 2021 2020 2019 Total compensation expense - share-settled (net of tax) $ 18 $ 13 $ 19 The following table reflects the changes in share-settled RSUs and share-settled PSUs for the twelve months ended December 31, 2021: Share-Settled RSUs Share-Settled PSUs Units Weighted Avg. Units Weighted Avg. Nonvested balance at beginning of period 2,118,605 $ 26.00 527,105 $ 36.37 Granted 2,132,148 10.91 — — Vested (862,999) 31.86 (57,794) 49.18 Forfeited (270,696) 15.73 (141,015) 46.14 Nonvested balance at end of period 3,117,058 $ 13.94 328,296 $ 24.72 The following table represents the total fair value of vested restricted stock, vested share-settled RSUs, and vested share-settled PSUs: Year Ended December 31 2021 2020 2019 Restricted stock $ 1 $ 4 $ 8 Share-settled RSUs $ 15 $ 11 $ 5 Share-settled PSUs $ 3 $ — $ — At December 31, 2021, approximately $18 million of total unrecognized compensation costs is expected to be recognized on the share-settled awards over a weighted average period of approximately two years. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Common Stock Common Stock Outstanding The Company has authorized 175,000,000 shares ($0.01 par value) of Class A Voting Common Stock (“Class A Common Stock”) at December 31, 2021 and 2020. The Company has authorized 25,000,000 shares ($0.01 par value) of Class B Non-Voting Common Stock (“Class B Common Stock”) at December 31, 2021 and 2020. Total common stock outstanding and changes in common stock issued are as follows: Class A Common Stock Class B Common Stock Year Ended December 31 Year Ended December 31 2021 2020 2019 2021 2020 2019 Shares issued at beginning of period 75,714,163 71,727,061 71,675,379 20,308,454 23,793,669 23,793,669 Issuance pursuant to benefit plans 1,021,223 640,112 113,916 — — — Restricted stock forfeited and withheld for taxes (330,652) (138,225) (70,672) — — — Stock options exercised — — 8,438 — — — Class B common stock converted to Class A common stock 20,308,454 3,485,215 — (20,308,454) (3,485,215) — Shares issued at end of period 96,713,188 75,714,163 71,727,061 — 20,308,454 23,793,669 Treasury stock 14,592,888 14,592,888 14,592,888 — — — Total shares outstanding 82,120,300 61,121,275 57,134,173 — 20,308,454 23,793,669 Class B Common Stock Conversion Effective April 1, 2020, Icahn Enterprises L.P. (“IEP”) and its affiliates exercised their right to convert 3,485,215 shares of the Company’s Class B Common Stock into 3,485,215 shares of the Company’s Class A Common Stock. During the year ended December 31, 2021, IEP and its affiliates converted all of its remaining 20,308,454 shares of the Company’s Class B Common Stock into 20,308,454 shares of Class A Common Stock. Share Repurchase Program We presently have no share repurchase program in place. During 2015, the Company’s Board of Directors approved a share repurchase program, authorizing it to repurchase up to $550 million of its then outstanding Class A Common Stock over a three-year period (“2015 Program”). In February 2017, the Company’s Board of Directors authorized the repurchase of up to $400 million of its then outstanding Class A Common Stock over the next three years (“2017 Program”). The 2017 Program included $112 million that remained authorized under the 2015 Program. The Company generally acquires the shares through open market or privately negotiated transactions, and has historically utilized cash from operations. The repurchase program does not obligate the Company to repurchase shares within any specific time or situations. The remaining $231 million authorized for share repurchases under the 2017 Program expired at December 31, 2019. During the year ended December 31, 2019, no shares were repurchased under the 2017 Program. Preferred Stock The Company had 50,000,000 shares of preferred stock ($0.01 par value) authorized at both December 31, 2021 and 2020. No shares of preferred stock were issued or outstanding at those dates. Shareholder Rights Plan On April 15, 2020, the Board of Directors of the Company adopted a Section 382 Rights Plan (the “Rights Plan”) and declared a dividend of (i) one preferred share purchase right, payable on April 27, 2020, for each share of Class A Common Stock and (ii) one preferred share purchase right, payable on April 27, 2020, for each share of Class B Common Stock, in each case, outstanding on April 27, 2020 to the stockholders of record on that date. The Rights Plan expired on October 2, 2021. Accumulated Other Comprehensive Income (Loss) The following represents the Company’s changes in accumulated other comprehensive income (loss) by component: Year Ended December 31 2021 2020 2019 Foreign currency translation adjustment: Balance at beginning of period $ (395) $ (369) $ (395) Other comprehensive income (loss) before reclassifications (76) (26) 23 Income tax benefit (provision) — — 3 Balance at end of period (471) (395) (369) Defined benefit plans: Balance at beginning of period (353) (342) (297) Other comprehensive income (loss) before reclassifications 221 (8) (46) Reclassification from other comprehensive income (loss) 14 (5) 7 Income tax benefit (provision) (8) 2 (6) Balance at end of period (126) (353) (342) Cash flow hedges: Balance at beginning of year 4 — — Other comprehensive income (loss) before reclassifications 6 4 1 Reclassification from other comprehensive income (loss) (8) — (1) Balance at end of period 2 4 — Accumulated other comprehensive loss at end of year $ (595) $ (744) $ (711) Other comprehensive income (loss) attributable to noncontrolling interests, net of tax $ (7) $ 14 $ (10) |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share The Company computes basic earnings (loss) per share by dividing income available to common shareholders by the weighted average number of common shares outstanding. The computation of diluted earnings (loss) per share is similar to the computation of basic earnings (loss) per share, except that the Company adjusts the weighted average number of shares outstanding to include estimates of additional shares that would be issued if potentially dilutive common shares had been issued. In addition, the Company adjusts income (loss) available to common shareholders to include any changes in income or loss that would result from the assumed issuance of the dilutive common shares. Earnings (loss) per share of common stock outstanding were computed as follows: Year Ended December 31 2021 2020 2019 Net income (loss) attributable to Tenneco Inc. $ 35 $ (1,521) $ (334) Basic earnings (loss) per share — Average shares of common stock outstanding 82,218,480 81,378,474 80,904,060 Earnings (loss) per average share of common stock $ 0.43 $ (18.69) $ (4.12) Diluted earnings (loss) per share — Average shares of common stock outstanding 82,218,480 81,378,474 80,904,060 Effect of dilutive securities: Restricted stock, RSUs and PSUs 1,381,547 — — Average shares of common stock outstanding including dilutive securities 83,600,027 81,378,474 80,904,060 Earnings (loss) per average share of common stock $ 0.42 $ (18.69) $ (4.12) Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share 1,787,410 2,346,904 1,868,274 |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Segment and Geographic Area Information Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain: • The Motorparts segment designs, manufactures, sources, markets, and distributes a broad portfolio of brand-name products in the global vehicle aftermarket while also servicing the OES market. Motorparts products are organized into categories, including shocks and struts, steering and suspension, braking, sealing, emissions control, engine, and maintenance; • The Performance Solutions segment designs, manufactures, markets, and distributes a variety of products and systems designed to optimize the ride experience to a global OE customer base, including noise, vibration, and harshness performance materials, advanced suspension technologies, ride control, braking, and systems protection; • The Clean Air segment designs, manufactures, and distributes a variety of products and systems designed to reduce pollution and optimize engine performance, acoustic tuning, and weight on a vehicle for light vehicle, commercial truck, and off-highway OE customers; and • The Powertrain segment designs, manufactures, and distributes a variety of OE powertrain products for light vehicle, commercial truck, off-highway, and industrial applications to OE customers for use in new vehicle production and OES parts to support their service and distribution channels. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as “Corporate.” In the first quarter of 2021, the Company made a change to its operating segments. This change consisted of moving a reporting unit within the Powertrain segment to the Ride Performance segment to align with a change in how the CODM allocates resources and assesses performance against the Company’s key growth strategies. In addition, with this change to its segments, Ride Performance was renamed Performance Solutions. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company’s current operating segments. 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 CODM in allocating resources and assessing performance. EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with U.S. 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 U.S. GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies. Segment results are as follows: Reportable Segments Motorparts Performance Solutions Clean Air Powertrain Total Reclass & Elims Total Year Ended December 31, 2021 Revenues from external customers $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 $ — $ 18,035 Intersegment revenues $ 44 $ 92 $ 19 $ 193 $ 348 $ (348) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 12 $ 1 $ — $ 44 $ 57 $ — $ 57 Year Ended December 31, 2020 Revenues from external customers $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 $ — $ 15,379 Intersegment revenues $ 31 $ 105 $ 21 $ 141 $ 298 $ (298) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 9 $ 1 $ — $ 37 $ 47 $ — $ 47 Year Ended December 31, 2019 Revenues from external customers $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 $ — $ 17,450 Intersegment revenues $ 40 $ 158 $ — $ 160 $ 358 $ (358) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 7 $ 4 $ — $ 32 $ 43 $ — $ 43 Segment EBITDA including noncontrolling interests and the reconciliation to earnings (loss) before interest expense, income taxes, and noncontrolling interests are as follows: Year Ended December 31 2021 2020 2019 EBITDA including noncontrolling interests by Segments: Motorparts $ 375 $ 155 $ 184 Performance Solutions 119 (634) 114 Clean Air 584 440 582 Powertrain 346 169 257 Total reportable segments 1,424 130 1,137 Corporate (275) (215) (343) Depreciation and amortization (593) (639) (673) Earnings (loss) before interest expense, income taxes, and noncontrolling interests 556 (724) 121 Interest expense (274) (277) (322) Income tax (expense) benefit (182) (459) (19) Net income (loss) $ 100 $ (1,460) $ (220) The following customers each accounted for 10% or more of the Company’s net sales in the last three years. The net sales to both customers were across all segments. Customer 2021 2020 2019 General Motors Company 11 % 11 % 11 % Ford Motor Company 10 % 10 % 10 % Revenues from external customers (b) Long-lived assets (c) Year Ended December 31 December 31 2021 2020 2019 2021 2020 United States $ 6,159 $ 5,151 $ 6,203 $ 954 $ 1,061 China 3,219 2,817 2,377 738 713 Germany 2,202 1,793 2,227 483 532 Mexico 1,014 900 959 243 247 Poland 988 822 925 313 335 India 617 414 475 165 160 Belgium 501 437 236 47 54 United Kingdom 305 361 568 126 114 Other Foreign (a) 3,030 2,684 3,480 911 956 Consolidated $ 18,035 $ 15,379 $ 17,450 $ 3,980 $ 4,172 (a) Revenues from external customers and long-lived assets for individual foreign countries other than China, Germany, Mexico, Poland, India, Belgium, and United Kingdom are not individually material. (b) Revenues are attributed to countries based on the origin of sales. (c) Long-lived assets include all long-term assets except goodwill, intangibles, and deferred tax assets. The following table shows cash payments for property, plant and equipment by reportable segment: Year Ended December 31 2021 2020 2019 Cash payments for property, plant and equipment: Motorparts $ 39 $ 23 $ 61 Performance Solutions 84 89 199 Clean Air 129 109 208 Powertrain 128 159 250 Other unallocated assets 7 14 26 Total $ 387 $ 394 $ 744 The Other unallocated assets are comprised of software additions not included in segment information. Disaggregation of revenue Original Equipment Value Added Sales OE revenue is generated from providing OE manufacturers and servicers with products for automotive, commercial truck, off-highway, and industrial applications. Supply relationships typically extend over the life of the related vehicle, subject to interim design and technical specification revisions, and do not require the customer to purchase a minimum quantity. Substrate/Passthrough Sales Generally, in connection with the sale of exhaust systems to certain OE manufacturers, the Company purchases catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of its customers which are used in the assembled system. These substrates are included in inventory and are “passed through” to the customer at cost, plus a small margin. Since the Company takes title to the substrate inventory and has responsibility for both the delivery and quality of the finished product including the substrates, the revenues and related expenses are recorded at gross amounts. Aftermarket Aftermarket revenue is generated from providing products for the global vehicle aftermarket to a wide range of warehouse distributors, retail parts stores, and mass merchants that distribute these products to customers ranging from professional service providers to “do-it-yourself” consumers. 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 table, revenue is disaggregated accordingly: Reportable Segments By Customer Type Motorparts Performance Solutions Clean Air Powertrain Total Year Ended December 31, 2021 OE - Substrate $ — $ — $ 4,291 $ — $ 4,291 OE - Value add — 2,832 3,844 4,001 10,677 Aftermarket 2,991 76 — — 3,067 Total $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 Year Ended December 31, 2020 OE - Substrate $ — $ — $ 3,355 $ — $ 3,355 OE - Value add — 2,446 3,366 3,431 9,243 Aftermarket 2,725 56 — — 2,781 Total $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 Year Ended December 31, 2019 OE - Substrate $ — $ — $ 3,027 $ — $ 3,027 OE - Value add — 3,047 4,094 4,062 11,203 Aftermarket 3,167 53 — — 3,220 Total $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 Reportable Segments By Geography Motorparts Performance Solutions Clean Air Powertrain Total Year Ended December 31, 2021 North America $ 1,868 $ 893 $ 3,210 $ 1,226 $ 7,197 Europe, Middle East, Africa and South America 900 1,254 2,383 2,020 6,557 Asia Pacific 223 761 2,542 755 4,281 Total $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 Year Ended December 31, 2020 North America $ 1,798 $ 768 $ 2,639 $ 1,078 $ 6,283 Europe, Middle East, Africa and South America 749 1,109 1,976 1,684 5,518 Asia Pacific 178 625 2,106 669 3,578 Total $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 Year Ended December 31, 2019 North America $ 2,018 $ 1,008 $ 3,031 $ 1,368 $ 7,425 Europe, Middle East, Africa and South America 932 1,421 2,388 2,023 6,764 Asia Pacific 217 671 1,702 671 3,261 Total $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions IEP no longer owns 5% or more of the Company’s Class A Common Stock. During the second quarter of 2021, IEP and its subsidiaries, including Icahn Automotive Group LLC, were no longer considered related parties of the Company. The Company ’ s net sales with Icahn Automotive Group LLC, w hich represent net sales with IEH Auto Parts LLC and Pep Boys—Manny, Moe & Jack , were $71 million for the six months ended June 30, 2021, and $144 million and $180 million for the years ended December 31, 2020 and 2019. The Company also had royalty and other income (expense) with Icahn Automotive Group LLC and PSC Metals of $2 million for the six months ended June 30, 2021, and $5 million and $7 million for the years ended December 31, 2020 and 2019 . During the year ended December 31, 2020, the Company paid an amount owed to IEP of $3 million, related to the allocation of certain tax credits. At December 31, 2020, the Company had receivables of $47 million and payables and accruals of $9 million with Icahn Automotive Group LLC . As part of the Federal-Mogul LLC acquisition, the Company acquired a redeemable noncontrolling interest related to a subsidiary in India. In accordance with local regulations, the Company initiated a process to make a tender offer of the shares it did not own due to the change in control triggered by the Federal-Mogul LLC acquisition. The Company entered into separate agreements with IEP subsequent to the purchase agreement whereby IEP agreed to fund and execute the tender offer for the shares on behalf of the Company. During the first quarter of 2020, the tender offer for the shares was completed. Since the transaction was funded and executed by IEP, the completion of the tender offer resulted in an adjustment to additional paid-in capital during the first quarter of 2020. Immediately following the completion of the tender offer, the shares of this noncontrolling interest not owned by the Company were no longer redeemable, or probable of becoming redeemable; therefore, the noncontrolling interest was reclassified from temporary equity to permanent equity during the first quarter of 2020. Refer to Note 2, “Summary of Significant Accounting Policies” for further information on this noncontrolling interest. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Proposed Merger On February 22, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Pegasus Holdings III, LLC (“Parent”) and Pegasus Merger Co., a wholly owned subsidiary of Parent (“Merger Sub” and together with Parent, “Buyer”). Pursuant to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Tenneco (the “Merger”) with Tenneco continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of Parent. At the effective time of the Merger (the “Effective Time”), each share of the Company’s Class A voting common stock that is issued and outstanding immediately prior to the Effective Time (other than shares to be cancelled pursuant to the Merger Agreement or shares of common stock held by holders who have made a valid demand for appraisal in accordance with Section 262 of the Delaware General Corporation Law), will be automatically converted into the right to receive $20.00 in cash, without interest. At the Effective Time, subject to the terms and conditions set forth in the Merger Agreement, each restricted share unit award (“RSU”) and each performance share unit award (“PSU”) of Tenneco that is outstanding immediately prior to the Effective Time will automatically be cancelled and converted into the holder’s right to receive a cash amount (subject to any applicable withholding taxes) calculated based on the per-share Merger consideration of $20.00. The closing of the Merger is subject to various conditions, including (i) the adoption of the Merger Agreement by holders of a majority of the issued and outstanding shares of the Company’s common stock; (ii) the absence of any order, injunction or other legal or regulatory restraint making illegal, enjoining or otherwise prohibiting the closing of the Merger; (iii) the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or HSR Act and the expiration of any waiting period under other applicable competition and/or foreign laws; (iv) the accuracy of the representations and warranties contained in the Merger Agreement, subject to customary materiality qualifications; and (v) compliance with the covenants and agreements contained in the Merger Agreement as of the closing of the Merger. In addition, the obligation of Parent and Merger Sub to consummate the Merger is subject to the absence, since the date of the Merger Agreement, of a Company Material Adverse Effect (as defined in the Merger Agreement under clause (b) of such definition). The closing of the Merger is not subject to a financing condition, and Parent has obtained equity and debt financing commitments for the purpose of financing the Merger and the other transactions contemplated by the Merger Agreement. The Company’s Board of Directors and the sole member or board of directors, as applicable, of Parent and Merger Sub have each unanimously approved the Merger and the Merger Agreement. If approved by the Company’s stockholders, the Merger is expected to close in the second half of 2022. Until the closing, the Company will continue to operate as an independent company. The Company will incur certain significant costs relating to the Merger, such as legal, accounting, financial advisory, printing and other professional services fees, as well as other customary payments. In the event that the merger is terminated, the Company may also be required to pay a cash termination fee to Parent of $54 million, as required under the Merger Agreement under certain circumstances. |
SCHEDULE_II__ VALUATION AND QUA
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II TENNECO INC. AND CONSOLIDATED SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance Charged Charged Deductions Balance (Millions) Allowance for Doubtful Accounts and Notes Receivable Deducted from Assets to Which it Applies: Year Ended December 31, 2021 $ 32 3 — 9 $ 26 Year Ended December 31, 2020 $ 28 3 1 — $ 32 Year Ended December 31, 2019 $ 17 14 — 3 $ 28 Description Balance Provision Charged (Credited) to Expense Allowance Changes (a) Other Additions (Deductions) (b) Balance (Millions) Deferred Tax Assets - Valuation Allowance: Year Ended December 31, 2021 $ 1,428 175 96 (110) $ 1,589 Year Ended December 31, 2020 $ 762 605 — 61 $ 1,428 Year Ended December 31, 2019 $ 554 36 — 172 $ 762 (a) The allowance changes for the year ended December 31, 2021 primarily relates to a net operating loss created by a permanent adjustment for local statutory and tax purposes in Luxembourg which was fully offset by a valuation allowance in the current year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The Company consolidates into its financial statements the accounts of the Company, all wholly owned subsidiaries, and any partially owned subsidiary it has the ability to control. Control generally equates to ownership percentage, whereby investments more than 50% owned are consolidated. Investments in affiliates of 50% or less but greater than 20% where the Company exercises significant influence are accounted for using the equity method. Equity investments of 20% or less that do not have a readily determinable fair value are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments. Refer t o Note 7, “Investment in Nonconsolidated Affiliates” for further information . The Company does not have any subsidiaries that it consolidates based solely on the power to direct the activities and significant participation in the entity ’ |
Impairment of Investments in Affiliates | Impairment of Investments in Affiliates The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss would be recorded, which would be measured as the difference between the carrying value and the fair value of the investment. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates. |
Reclassifications | ReclassificationsCertain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with maturities of 90 days or less from the date of original issuance to be cash equivalents. |
Notes and Accounts Receivable | Notes and Accounts ReceivableNotes and accounts receivable are stated at net realizable value, which approximates fair value. Receivables are reduced by an allowance for amounts that may become uncollectible in the future. The allowance is an estimate based on expected losses, current economic and market conditions, and a review of the current status of each customer’s trade accounts or notes receivable. A receivable is past due if payments have not been received within the agreed-upon invoice terms. Account balances are charged-off against the allowance when management determines the receivable will not be recovered. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) or average cost methods. Work in process includes purchased parts such as substrates coated with precious metals. Cost of inventory includes direct materials, labor, and applicable manufacturing overhead costs. The value of inventories is reduced for excess and obsolescence based on management's review of on-hand inventories compared to historical and estimated future sales and usage. For the year ended December 31, 2019, the Company recorded non-cash charges to cost of goods sold to recognize the remaining step up in inventory fair values of $44 million from the Federal-Mogul LLC acquisition and $5 million from the Öhlins acquisition. |
Held-for-sale | Held for Sale and Divestitures The Company classifies assets and liabilities as held for sale (“disposal group”) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate it is unlikely significant changes to the plan will be made or the plan will be withdrawn. The Company estimates fair value to approximate the expected proceeds to be received, less cost to sell, and compare it to the carrying value of the disposal group. An impairment charge is recognized when the carrying value exceeds the estimated fair value. At December 31, 2021 and 2020, the Company had $22 million and $15 million of assets held for sale, which primarily consists of land and buildings, and non-core machinery and equipment across multiple segments that are expected to be sold in the next twelve months, as well as $9 million and less than $1 million in related environmental and asset retirement obligation liabilities. The Company recognized non-cash impairment charges of $10 million, and $1 million, during the years ended December 31, 2021 and 2020 resulting from recognizing the related assets as held for sale. In the fourth quarter of 2020, the Company closed on the sale of a non-core business and its related assets for $15 million. The Company received $6 million of the purchase price at closing in 2020 with the remaining to be received in installment payments through the fourth quarter of 2023. The Company recognized non-cash impairment charges of $1 million, and $8 million for the years ended December 31, 2020 and 2019 on recognizing the related assets as held for sale. On March 1, 2019, in accordance with a stock and asset purchase agreement, the Company sold certain assets and liabilities related to a non-core business and received proceeds of $22 million, subject to customary working capital adjustments. During the year ended December 31, 2020, the Company received $3 million of proceeds due to the finalization of working capital adjustments. |
Acquisition | AcquisitionOn 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, for a purchase price of $162 million (including $4 million of cash acquired). The remaining 9.5% ownership interest in Öhlins Intressenter AB (the “KÖ Interest”) was retained by K Öhlin Holding AB (“Köhlin”). Refer to “Redeemable Noncontrolling Interests” section below, for further information on the KÖ Interest. |
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 in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. At December 31, 2021 and 2020, the Company held redeemable noncontrolling interests of $50 million and $45 million which were not currently redeemable or probable of becoming redeemable. The redemption of these redeemable noncontrolling interests is not solely within the Company’s control, therefore, they are presented in the temporary equity section of the Company’s 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. As such, these noncontrolling interests have not been remeasured to redemption value. In addition, at December 31, 2021 and 2020, the Company held a redeemable noncontrolling interest of $41 million and $33 million which was probable of becoming redeemable. This noncontrolling interest is also presented in the temporary equity section of the Company’s consolidated balance sheets and has been remeasured to its redemption value. The Company immediately recognizes changes to redemption value as a component of “Net income (loss) attributable to noncontrolling interests” in the consolidated statements of income (loss). Köhlin has an irrevocable right at any time after the third anniversary of the Öhlins acquisition to sell the KÖ Interest to the Company. During the years ended December 31, 2021, 2020 and 2019, the Company recognized an increase of $11 million, $10 million and $5 million to the carrying value of this noncontrolling interest. During the first quarter of 2020, the Company completed the process to make a tender offer of the shares it did not own for a subsidiary in India acquired by the Company as part of the Federal-Mogul LLC acquisition on October 1, 2018, in accordance with local regulations. As a result of completing the tender offer, the redeemable noncontrolling interest was no longer redeemable or probable of becoming redeemable and the amount of $82 million was reclassified to permanent equity during the year ended December 31, 2020. The Company recognized an adjustment of $53 million loss to income available to common shareholders concurrently with marking the related redeemable noncontrolling interest to its redemption value in the year ended December 31, 2019. Refer to Note 19, “Related Party Transactions”, for additional information related to the tender offer of this noncontrolling interest. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property, plant and equipment and definite-lived intangible assets are recorded at cost or fair value established at acquisition. Definite-lived intangible assets include customer relationships and platforms, patented and unpatented technology, and licensing agreements. Long-lived asset groups are evaluated for impairment when impairment indicators exist. If the carrying value of a long-lived asset group is impaired, an impairment charge is recorded for the amount by which the carrying value of the long-lived asset group exceeds its fair value. Depreciation and amortization are computed principally on a straight-line basis over the estimated useful lives of the assets for financial reporting purposes. Expenditures for maintenance and repairs are expensed as incurred. |
Goodwill | Goodwill and Other Indefinite-Lived Intangible Assets |
Other Indefinite-Lived Intangible Assets | Other indefinite-lived intangible assets related to trade names and trademarks are stated at fair value established at acquisition or cost. These indefinite-lived intangible assets are evaluated for impairment during the fourth quarter of each year, or more frequently, if impairment indicators exist. An impairment exists when a trade name and trademark’s carrying value exceeds its fair value. The fair values of these assets are based upon the prospective stream of hypothetical after-tax royalty cost savings discounted at rates that reflect the rates of return appropriate for these intangible assets. The impairment charge is the excess of the asset’s carrying value over its fair value. |
Pre-production Design and Development and Tooling Assets | Pre-production Design and Development and Tooling Assets The Company expenses pre-production design and development costs as incurred unless there is a contractual guarantee for reimbursement from the OE customer. Costs for molds, dies, and other tools used to make products sold on long-term supply arrangements for which the Company has title to the assets are capitalized in property, plant and equipment and amortized to cost of sales over the shorter of the term of the arrangement or over the estimated useful lives of the assets. Costs for molds, dies, and other tools used to make products sold on long-term supply arrangements for which the Company has a contractual guarantee for reimbursement or has the non-cancelable right to use the assets during the term of the supply arrangement from the customer are capitalized. |
Fair Value Measurements | Fair Value Measurements 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 the Company’s own assumptions. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized on the basis of the future tax consequences attributable to temporary differences that exist between the financial statement carrying value of assets and liabilities and the respective tax values, and net operating losses (“NOL”) and tax credit carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recorded in the results of operations in the period that includes the enactment date under the law. Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted. Valuation allowances are established in certain jurisdictions based on a more likely than not standard. The ability to realize deferred tax assets depends on the Company’s ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each tax jurisdiction. The Company considers the various possible sources of taxable income when assessing the realization of its deferred tax assets. The valuation allowances recorded against deferred tax assets generated by taxable losses in certain jurisdictions will affect the provision for income taxes until the valuation allowances are released. The Company’s provision for income taxes will include no tax benefit for losses incurred and no tax expense with respect to income generated in these jurisdictions until the respective valuation allowance is eliminated. The Company records uncertain tax positions on the basis of a two-step process whereby it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and for those tax positions that meet the more likely than not criteria, the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority is recognized. |
Pension and Other Postretirement Benefit Plan Obligations | Pension and Other Postretirement Benefit Plan Obligations Pensions and other postretirement employee benefit costs and related liabilities and assets are dependent upon assumptions used in calculating such amounts. These assumptions include discount rates, long term rate of return on plan assets, health care cost trends, compensation, and other factors. Actual results that differ from the assumptions used are accumulated and amortized over future periods, and accordingly, generally affect recognized expense in future periods. The cost of benefits provided by defined benefit pension and other postretirement plans is recorded in the period employees provide service. Future pension expense for certain significant funded benefit plans is calculated using an expected return on plan asset methodology. Investments with registered investment companies, common and preferred stocks, and certain government debt securities are valued at the closing price reported on the active market on which the securities are traded. Corporate debt securities are valued by third-party pricing sources using the multi-dimensional relational model using instruments with similar characteristics. Hedge funds and the collective trusts are valued at net asset value (“NAV”) per share which are provided by the respective investment sponsors or investment advisers. |
Leases | Leases 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. |
Revenue Recognition | Revenue Recognition The Company accounts for a contract with a customer when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Revenue is recognized for sales to OE and aftermarket customers when transfer of control of the related good or service has occurred. Revenue from most OE and aftermarket goods and services is transferred to customers at a point in time. The customer is invoiced once transfer of control has occurred and the Company has a right to payment. Typical payment terms vary based on the customer and the type of goods and services in the contract. The period of time between invoicing and when payment is due is not significant. Amounts billed and due from customers are classified as “Customer notes and accounts, net” in the consolidated balance sheets. Standard payment terms are less than one year and the Company applies the practical expedient to not assess whether a contract has a significant financing component if the payment terms are less than one year. Performance Obligations: The majority of the Company’s customer contracts with OE and aftermarket customers are long-term supply arrangements. The performance obligations are established by the enforceable contract, which is generally considered to be the purchase order but, in some cases could be the delivery release schedule. The purchase order, or related delivery release schedule, is of a duration of less than one year. As such, the Company does not disclose information about remaining performance obligations that have original expected durations of one year or less, for which work has not yet been performed. Rebates: The Company accrues for rebates pursuant to specific arrangements primarily with aftermarket customers. Rebates generally provide for payments to customers based upon the achievement of specified purchase volumes and are recorded as a reduction of sales as earned by such customers. Product Returns: Certain aftermarket contracts with customers include terms and conditions that result in a customer right of return that is accounted for on a gross basis. For these contracts the Company has recorded a refund liability within other accrued liabilities and a return asset within “Prepayments and other current assets” in the consolidated balance sheets. Shipping and Handling Costs: Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Cost of sales (exclusive of depreciation and amortization)” in the consolidated statements of income (loss). Sales and Sales Related Taxes: The Company collects and remits taxes assessed by various governmental authorities that are both imposed on and concurrent with revenue-producing transactions with its customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. The collection and remittance of these taxes is reported on a net basis. Contract Balances: Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. The contract assets are transferred to accounts receivable when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. There have been no impairment losses recognized related to any accounts receivable or contract assets arising from the Company’s contracts with customers. |
Engineering, Research and Development | Engineering, Research, and DevelopmentThe Company records engineering, research, and development costs (“R&D”) net of customer reimbursements as they are considered a recovery of cost. |
Advertising and Promotion Expenses | Advertising and Promotion ExpensesThe Company expenses advertising and promotional expenses as incurred |
Foreign Currency Translation | Foreign Currency TranslationExchange adjustments related to foreign currency transactions and remeasurement adjustments for foreign subsidiaries whose functional currency is the U.S. dollar are reflected in the consolidated statements of income (loss). Translation adjustments of foreign subsidiaries for which local currency is the functional currency are reflected in the consolidated balance sheets as a component of “Accumulated other comprehensive loss”. Transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency are recognized in earnings as incurred, except for those intercompany balances for which settlement is not planned or anticipated in the foreseeable future. |
Derivative Financial Instruments | Derivative Financial InstrumentsFor derivative instruments to qualify as hedging instruments, they must be designated as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Gains and losses related to a hedge are either recognized in income immediately to offset the gain or loss on the hedged item or are deferred and reported as a component of accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged item affects earnings. The change in fair value of the ineffective portion of a derivative financial instrument, determined using the hypothetical derivative method, is recognized in earnings immediately. The gain or loss related to derivative financial instruments not designated as hedges are recognized immediately in earnings. Cash flows related to hedging activities are included in the operating section of the consolidated statements of cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Redeemable Noncontrolling Interests | The following is a rollforward of activities in the Company’s redeemable noncontrolling interests: Year Ended December 31 2021 2020 2019 Balance at beginning of period $ 78 $ 196 $ 138 Net income attributable to redeemable noncontrolling interests 23 22 27 Other comprehensive (loss) income (4) 3 (10) Acquisition and other — — 17 Noncontrolling interest tender offer redemption — (46) — Redemption value remeasurement adjustments 11 10 58 Purchase accounting measurement period adjustments — — (8) Reclassification of noncontrolling interest to permanent equity — (82) — Dividends declared to noncontrolling interests (17) (25) (26) Balance at end of period $ 91 $ 78 $ 196 |
Restructuring Charges, Net an_2
Restructuring Charges, Net and Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring | Year Ended December 31, 2021 Motorparts Performance Solutions Clean Air Powertrain Corporate Total Severance and other charges, net $ 5 $ 12 $ 7 $ 22 $ 2 $ 48 Asset impairments related to restructuring actions 2 — — — — 2 Other non-restructuring asset impairments 1 — 1 — 7 9 Impairment of assets held for sale — — 10 — — 10 Total asset impairment charges 3 — 11 — 7 21 Total restructuring charges, asset impairments, and other $ 8 $ 12 $ 18 $ 22 $ 9 $ 69 The following table provides a summary of the Company’s consolidated restructuring liabilities and related activity for each type of exit costs: Employee Costs Facility Closure and Other Costs Total Balance at December 31, 2018 $ 98 $ 5 $ 103 Provisions 103 22 125 Revisions to estimates (12) — (12) Payments (92) (23) (115) Balance at December 31, 2019 97 4 101 Provisions 124 16 140 Revisions to estimates (18) (3) (21) Payments (106) (16) (122) Foreign currency 2 — 2 Balance at December 31, 2020 99 1 100 Provisions 74 10 84 Revisions to estimates (36) — (36) Payments (72) (11) (83) Foreign currency (2) — (2) Balance at December 31, 2021 $ 63 $ — $ 63 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory by major classification was as follows: December 31 2021 2020 Finished goods $ 747 $ 758 Work in process 508 449 Raw materials 510 441 Materials and supplies 81 95 Total inventories $ 1,846 $ 1,743 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment Net | The components of property, plant and equipment, net were as follows: Useful Lives (in Years) December 31 2021 2020 Land — $ 251 $ 261 Buildings and improvements 10 to 50 984 1,086 Machinery, equipment and tooling 3 to 25 3,990 3,885 Capitalized software 3 to 12 248 265 Other, including construction in progress — 351 374 Property, plant and equipment , cost 5,824 5,871 Less: Accumulated depreciation and amortization (2,952) (2,814) Property, plant and equipment , net $ 2,872 $ 3,057 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | At December 31, 2021 and 2020, g oodwill consisted of the following: December 31, 2021 Motorparts Performance Solutions Clean Air Powertrain Total Gross carrying amount at beginning of period $ 623 $ 549 $ 23 $ 59 $ 1,254 Foreign exchange — (3) (1) — (4) Gross carrying amount at end of period 623 546 22 59 1,250 Accumulated impairment loss at beginning of period (310) (377) — (59) (746) Foreign exchange — 3 — — 3 Accumulated impairment loss at end of period (310) (374) — (59) (743) Net carrying value at end of period $ 313 $ 172 $ 22 $ — $ 507 December 31, 2020 Motorparts Performance Solutions Clean Air Powertrain Total Gross carrying amount at beginning of period $ 620 $ 543 $ 22 $ 59 $ 1,244 Reclassification from assets held for sale 2 — — — 2 Foreign exchange 1 6 1 — 8 Gross carrying amount at end of period 623 549 23 59 1,254 Accumulated impairment loss at beginning of period (239) (212) — (18) (469) Impairment (70) (156) — (41) (267) Foreign exchange (1) (9) — — (10) Accumulated impairment loss at end of period (310) (377) — (59) (746) Net carrying value at end of period $ 313 $ 172 $ 23 $ — $ 508 |
Schedule of Finite-Lived Intangible Assets | At December 31, 2021 and 2020, intangible assets consisted of the following: December 31, 2021 December 31, 2020 Useful Lives (in Years) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangible assets: Customer relationships and platforms 10 $ 993 $ (374) $ 619 $ 995 $ (282) $ 713 Customer contract 10 8 (7) 1 8 (6) 2 Patents 10 to 17 1 (1) — 1 (1) — Technology rights 10 to 30 135 (62) 73 139 (51) 88 Packaged kits know-how 10 54 (18) 36 54 (12) 42 Catalogs 10 47 (15) 32 47 (11) 36 Licensing agreements 3 to 5 64 (47) 17 66 (35) 31 Land use rights 28 to 46 51 (6) 45 49 (4) 45 $ 1,353 $ (530) 823 $ 1,359 $ (402) 957 Indefinite-lived intangible assets: Trade names and trademarks 233 237 Total $ 1,056 $ 1,194 |
Schedule of Indefinite-Lived Intangible Assets | At December 31, 2021 and 2020, intangible assets consisted of the following: December 31, 2021 December 31, 2020 Useful Lives (in Years) Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangible assets: Customer relationships and platforms 10 $ 993 $ (374) $ 619 $ 995 $ (282) $ 713 Customer contract 10 8 (7) 1 8 (6) 2 Patents 10 to 17 1 (1) — 1 (1) — Technology rights 10 to 30 135 (62) 73 139 (51) 88 Packaged kits know-how 10 54 (18) 36 54 (12) 42 Catalogs 10 47 (15) 32 47 (11) 36 Licensing agreements 3 to 5 64 (47) 17 66 (35) 31 Land use rights 28 to 46 51 (6) 45 49 (4) 45 $ 1,353 $ (530) 823 $ 1,359 $ (402) 957 Indefinite-lived intangible assets: Trade names and trademarks 233 237 Total $ 1,056 $ 1,194 |
Finite-lived Intangible Assets Amortization Expense | The expected future amortization expense for the Company’s definite-lived intangible assets is as follows: 2022 2023 2024 2025 2026 2027 and thereafter Total Expected amortization expense $ 124 $ 121 $ 114 $ 114 $ 114 $ 236 $ 823 |
Schedule of Intangible Assets and Goodwill | Impairment charges for goodwill and intangible assets recognized by segment consist of the following: Year Ended December 31, 2020 Motorparts Performance Solutions Powertrain Total Goodwill impairment charges $ 70 $ 156 $ 41 $ 267 Trade names and trademarks intangible asset impairment charges 40 11 — 51 Definite-lived intangible asset impairment charges — 65 — 65 $ 110 $ 232 $ 41 $ 383 Impairment charges for goodwill and intangible assets recognized by segment consist of the following: Year Ended December 31, 2019 Motorparts Performance Solutions Powertrain Total Goodwill impairment charges $ 21 $ 69 $ 18 $ 108 Trade names and trademarks intangible asset impairment charges 133 — — 133 $ 154 $ 69 $ 18 $ 241 |
Investment in Nonconsolidated_2
Investment in Nonconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The Company’s ownership interest in affiliates accounted for under the equity method is as follows: At December 31 2021 2020 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) 20.6 % 33.6 % Montagewerk Abgastechnik Emden GmbH (Germany) 50.0 % 50.0 % Year Ended December 31 2021 2020 2019 Statements of Income Otomotiv A.S. Other Total Otomotiv A.S. Other Total Otomotiv A.S. Other Total Sales $ 347 $ 621 $ 968 $ 285 $ 555 $ 840 $ 305 $ 630 $ 935 Gross profit $ 102 $ 136 $ 238 $ 84 $ 115 $ 199 $ 79 $ 133 $ 212 Income from continuing operations $ 86 $ 90 $ 176 $ 71 $ 74 $ 145 $ 63 $ 85 $ 148 Net income $ 80 $ 78 $ 158 $ 65 $ 65 $ 130 $ 60 $ 76 $ 136 December 31 2021 2020 Balance Sheets Otomotiv A.S. Other Total Otomotiv A.S. Other Total Current assets $ 112 $ 489 $ 601 $ 167 $ 478 $ 645 Noncurrent assets $ 166 $ 375 $ 541 $ 141 $ 321 $ 462 Current liabilities $ 51 $ 178 $ 229 $ 29 $ 189 $ 218 Noncurrent liabilities $ 80 $ 36 $ 116 $ 108 $ 15 $ 123 The following table is a summary of transactions with the Company ’ s nonconsolidated affiliates: Year Ended December 31 2021 2020 2019 Net sales $ 75 $ 89 $ 104 Purchases $ 385 $ 320 $ 392 Royalty and other income (expense) $ 9 $ 8 $ 10 The following table is a summary of amounts due to and from the Company ’ s nonconsolidated affiliates: December 31 2021 2020 Receivables $ 10 $ 17 Payables and accruals $ 69 $ 86 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 at December 31, 2021, all of which mature in the next twelve months: Notional Amount Long positions $ 401 Short positions $ 396 |
Cash-Settled Awards | The share equivalents outstanding related to deferred compensation and cash-settled share-based awards are as follows: December 31 2021 2020 Restricted Stock Units (RSUs) 1,451,422 1,878,220 Performance Share Units (PSUs) 2,951,316 — 4,402,738 1,878,220 Deferred compensation arrangements (a) — 1,125,605 (a) At December 31, 2021, there are no share equivalents outstanding that are based on the Company’s stock price. On a prospective basis, the alternative for employees to invest their deferred compensation into these arrangements no longer exists. December 31 2021 2020 RSUs 1,451,422 1,878,220 PSUs 2,951,316 — 4,402,738 1,878,220 |
Carrying and Estimated Fair Value | The estimated fair value of these financial instruments is as follows: December 31 Balance sheet classification 2021 2020 Other financial instruments in asset positions (a) Prepayments and other current assets $ 35 $ 1 |
Schedule of Derivative Instruments | The following table represents the amount of gain (loss) recognized in accumulated other comprehensive income (loss) before any reclassifications into net income (loss) of derivative and non-derivative instruments designated as hedges: Year Ended December 31 2021 2020 2019 Commodity price hedge contracts designated as cash flow hedges $ 6 $ 4 $ 1 Foreign currency borrowings designated as net investment hedges $ — $ (74) $ 20 |
Carrying and Estimated Fair Value of Debt Instruments | Estimated fair value of the Company’s outstanding debt is as follows: December 31, 2021 December 31, 2020 Fair Value Carrying Fair Carrying Fair Long-term debt (including current maturities): Term loans and senior notes Level 2 $ 4,998 $ 5,060 $ 5,153 $ 5,138 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Obligations | A summary of the Company’s long-term debt obligations is set forth in the following table: December 31, 2021 December 31, 2020 Principal Carrying Amount (a) Effective Interest Rate Principal Carrying Amount (a) Effective Interest Rate Credit Facilities Revolver Borrowings Due 2023 $ — $ — — % $ — $ — — % Term Loans LIBOR plus 1.75% Term Loan A due 2019 through 2023 (b) 1,403 1,396 2.081 % 1,530 1,520 2.876 % LIBOR plus 3.00% Term Loan B due 2019 through 2025 (c) 1,649 1,606 3.911 % 1,666 1,612 3.955 % Senior Unsecured Notes $225 million of 5.375% Senior Notes due 2024 (d) 225 223 5.560 % 225 223 5.609 % $500 million of 5.000% Senior Notes due 2026 (e) 500 496 5.171 % 500 494 5.219 % Senior Secured Notes (i) €300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024 (f) — — — % 366 370 4.620 % €350 million of 5.000% Euro Fixed Rate Notes due 2024 (f) — — — % 428 445 3.823 % $500 million of 7.875% Senior Secured Notes due 2029 (g) 500 490 8.049 % 500 489 8.212 % $800 million of 5.125% Senior Secured Notes due 2029 (h) 800 787 5.306 % — — — % Other debt, primarily foreign instruments (j) 26 26 24 23 5,024 5,176 Less - maturities classified as current (j) 6 5 Total long-term debt $ 5,018 $ 5,171 (a) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $78 million and $82 million at December 31, 2021 and 2020. Total unamortized debt discount (premium), net was $1 million and $(20) million at December 31, 2021 and 2020. (b) Principal and interest payable in 19 consecutive quarterly installments beginning March 31, 2019. At December 31, 2021, principal and interest is payable in seven remaining quarterly installments with $43 million being paid quarterly for seven quarters and the remainder at maturity. The interest rate on Term Loan A at December 31, 2020 was LIBOR plus 2.50%. (c) Principal and interest payable in 27 consecutive quarterly installments of $4 million beginning March 31, 2019 and the remainder at maturity. (d) Interest payable semiannually beginning on June 30, 2015 with principal due at maturity. (e) Interest payable semiannually beginning on January 31, 2017 with principal due at maturity. (f) The Company satisfied and discharged all of its 4.875% Euro Floating Rate Notes due 2024 and 5.000% Euro Fixed Rate Notes due 2024 on March 17, 2021. (g) On November 30, 2020, the Company issued $500 million aggregate principal amount of 7.875% senior secured notes due January 15, 2029. Interest payable semiannually on January 15 and July 15 of each year beginning on July 15, 2021 with principal due at maturity. (h) On March 17, 2021, the Company issued $800 million aggregate principal amount of 5.125% senior secured notes due April 15, 2029. Interest payable semiannually on April 15 and October 15 of each year beginning on October 15, 2021 with principal due at maturity. (i) Rank equally in right of payment to all indebtedness under the New Credit Facility (as subsequently defined). (j) Finance lease obligations included in other debt were $13 million and $8 million at December 31, 2021 and 2020. The maturities classified as current included the current portion of the finance lease obligations of $4 million and $3 million at December 31, 2021 and 2020. Refer to Note 14, “Leases” for additional information. The aggregate maturities a pplicable to the long-term debt outstanding at December 31, 2021: Aggregate Maturities 2022 $ 193 2023 $ 1,255 2024 $ 246 2025 $ 1,607 2026 $ 502 |
Summary of Short-term Debt Obligations | The Company’s short-term debt consists of the following: At December 31 2021 2020 Maturities classified as current $ 6 $ 5 Short-term borrowings (a) 51 157 Total short-term debt $ 57 $ 162 Weighted average interest rate on outstanding short-term borrowings at end of year 3.2 % 3.6 % (a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements. |
Financing Arrangements | Financing Arrangements The table below shows the Company’s borrowing capacity on committed credit facilities at December 31, 2021 (in billions): December 31, 2021 Term Available (b) Tenneco Inc. revolving credit facility (a) 2023 $ 1.4 Tenneco Inc. Term Loan A 2023 — Tenneco Inc. Term Loan B 2025 — Subsidiaries’ credit agreements 2022-2028 — $ 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) At December 31, 2021, the Company had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under the revolving credit facility. The Company also had $76 million of outstanding letters of credit under uncommitted facilities at December 31, 2021. Consolidated net leverage ratio Interest rate greater than 3.0 to 1 LIBOR plus 2.00% less than 3.0 to 1 and greater than 2.5 to 1 LIBOR plus 1.75% less than 2.5 to 1 and greater than 1.5 to 1 LIBOR plus 1.50% less than 1.5 to 1 LIBOR plus 1.25% The Third Amendment provides for an increase to the margin applicable to borrowings under the revolving credit facility and the Term Loan A facility at certain leverage levels as set forth below as one of several conditions for obtaining less restrictive financial maintenance covenants described below under New Credit Facility — Other Terms and Conditions : Consolidated net leverage ratio Interest rate greater than 6.0 to 1 LIBOR plus 2.50% less than 6.0 to 1 and greater than 4.5 to 1 LIBOR plus 2.25% (i) Senior secured net leverage ratio (ii) Consolidated net leverage ratio not greater than 8.75 to 1 at December 31, 2020 not greater than 4.50 to 1 at March 31, 2020 not greater than 8.25 to 1 at March 31, 2021 not greater than 5.25 to 1 at March 31, 2022 not greater than 4.50 to 1 at June 30, 2021 not greater than 4.75 to 1 at June 30, 2022 not greater than 4.25 to 1 at September 30, 2021 not greater than 4.25 to 1 at September 30, 2022 not greater than 4.00 to 1 at December 31, 2021 not greater than 3.75 to 1 thereafter and (iii) 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 as of March 31, 2020, 2.00 to 1 as of June 30, 2020, 1.50 to 1 through March 31, 2021, and 2.75 to 1 thereafter. The Company may make a one-time election to revert back to the previous financial maintenance covenants in effect immediately prior to the Third Amendment (the “Prior Financial Covenants”) and terminate the applicability of the Covenant Reset Triggers upon delivery of a covenant reset certificate to the administrative agent under the New Credit Facility that attests to compliance with the Prior Financial Covenants as of the end of the relevant fiscal period (“Covenant Reset Certificate”). If a Covenant Reset Trigger occurs, the financial maintenance covenants for the revolving credit facility and the Term Loan A facility revert back to the Prior Financial Covenants, including (i) a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility), at the end of each fiscal quarter, with step-downs, as follows: (i) Consolidated net leverage ratio not greater than 4.50 to 1 through March 31, 2021 not greater than 4.25 to 1 through September 30, 2021 not greater than 4.00 to 1 through March 31, 2022 not greater than 3.75 to 1 through September 30, 2022 not greater than 3.50 to 1 thereafter and (ii) 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. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities included the following: December 31 2021 2020 Accrued rebates $ 190 $ 191 Accrued freight 91 70 Operating lease liability 92 95 Accrued factoring payable 70 84 Non-income tax payable 69 128 Product return reserves 64 75 Restructuring liabilities 55 95 Accrued warranty 53 52 Accrued interest 41 29 Accrued professional services 40 46 Pension and postretirement benefits liability 38 43 Legal reserves 7 10 Environmental reserve 8 8 Other 409 262 $ 1,227 $ 1,188 |
Pension Plans, Postretirement_2
Pension Plans, Postretirement and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Amounts Recognized in Balance Sheets for Pension Plans and Postretirement Benefit Plan | The measurement date for all defined benefit plans is December 31. The following provides a reconciliation of the plans’ benefit obligations, plan assets, and funded status at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation, beginning of year $ 1,383 $ 1,320 $ 1,122 $ 1,048 $ 237 $ 300 Service cost 2 1 26 25 — — Interest cost 31 41 17 18 6 9 Settlement — — (5) (17) — — Administrative expenses/taxes paid — — (5) (5) — — Plan amendments — 1 — — (20) (59) Actuarial (gain)/loss (45) 114 (39) 28 (16) 5 Other — — — 2 — — Benefits paid (93) (94) (43) (44) (18) (18) Participants’ contributions — — 1 1 1 — Currency rate conversion and other — — (50) 66 — — Benefit obligation, end of year 1,278 1,383 1,024 1,122 190 237 Change in plan assets: Fair value of plan assets, beginning of year 1,145 1,062 571 523 — — Settlement — — (5) (17) — — Actual return on plan assets 154 126 24 47 — — Administrative expenses/taxes paid — — (5) (5) — — Employer contributions 4 51 41 42 17 18 Participants’ contributions — — 1 1 1 — Benefits paid (93) (94) (43) (44) (18) (18) Other — — — 2 — — Currency rate conversion and other — — (13) 22 — — Fair value of plan assets, end of year 1,210 1,145 571 571 — — Funded status of the plans $ (68) $ (238) $ (453) $ (551) $ (190) $ (237) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized on the consolidated balance sheets consist of the following at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Noncurrent assets $ — $ — $ 75 $ 37 $ — $ — Current liabilities (3) (2) (17) (18) (18) (23) Noncurrent liabilities (a) (65) (236) (511) (570) (172) (214) $ (68) $ (238) $ (453) $ (551) $ (190) $ (237) |
Amounts Recognized in Accumulated Other Comprehensive Loss for Pension Benefits | Amounts recognized in accumulated other comprehensive loss for pension and postretirement benefits, pre-tax, consist of the following components at December 31, 2021 and 2020: Pension Plans Other Postretirement Benefits Plans U.S. Non-U.S. 2021 2020 2021 2020 2021 2020 Actuarial (gain) loss $ 144 $ 290 $ 108 $ 168 $ 14 $ 32 Prior service cost/(credit) 1 1 3 4 (109) (99) Total $ 145 $ 291 $ 111 $ 172 $ (95) $ (67) |
Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets for all Pension Plans | Information for defined benefit plans with projected benefit obligations in excess of plan assets: Pension Plans Other Postretirement Benefits Plans 2021 2020 U.S. Non-U.S. U.S. Non-U.S. 2021 2020 Projected benefit obligation $ 1,278 $ 645 $ 1,383 $ 743 $ 190 $ 237 Fair value of plan assets $ 1,210 $ 117 $ 1,145 $ 155 $ — $ — Information for pension plans with accumulated benefit obligations in excess of plan assets: December 31, 2021 December 31, 2020 U.S. Non-U.S. U.S. Non-U.S. Projected benefit obligation $ 1,278 $ 602 $ 1,383 $ 696 Accumulated benefit obligation $ 1,278 $ 561 $ 1,383 $ 654 Fair value of plan assets $ 1,210 $ 81 $ 1,145 $ 118 |
Components of Net Periodic Benefit Cost | Net periodic pension and postretirement benefits costs for the years ended December 31, 2021, 2020 and 2019, consist of the following components: Pension Plans Other Postretirement U.S. Non-U.S. 2021 2020 2019 2021 2020 2019 2021 2020 2019 Service cost $ 2 $ 1 $ 2 $ 26 $ 25 $ 24 $ — $ — $ 1 Interest cost 31 41 53 17 18 24 6 9 13 Expected return on plan assets (65) (64) (67) (16) (17) (19) — — — Curtailment loss (gain) — — — — — — — (21) (7) Settlement loss — 1 6 1 6 1 — — — Net amortization: Actuarial loss 12 6 5 8 8 5 2 2 4 Prior service cost (credit) — — — 1 — 1 (10) (7) (8) Net periodic costs $ (20) $ (15) $ (1) $ 37 $ 40 $ 36 $ (2) $ (17) $ 3 |
Assumptions Used in Accounting for Pension Plans | The following assumptions were used in the accounting for the pension and other postretirement benefits plans for the years ended December 31, 2021, 2020, and 2019: Pension Plans Other Postretirement U.S. Non-U.S. 2021 2020 2019 2021 2020 2019 2021 2020 2019 Weighted average assumptions used to determine benefit obligations: Discount rate 2.8 % 2.3 % 3.2 % 1.9 % 1.5 % 1.7 % 2.9 % 2.5 % 3.2 % Rate of compensation increase n/a n/a n/a 1.9 % 1.8 % 2.0 % n/a n/a n/a Interest crediting rate 4.2 % 4.2 % 4.2 % 1.8 % 1.8 % 1.8 % n/a n/a n/a Weighted average assumptions used to determine net periodic benefit cost: Discount rate 2.3 % 3.2 % 4.2 % 1.5 % 1.7 % 2.6 % 2.5 % 3.2 % 4.3 % Expected long-term return on plan assets 6.2 % 6.3 % 6.3 % 2.9 % 3.5 % 4.0 % n/a n/a n/a Rate of compensation increase n/a n/a n/a 1.8 % 2.0 % 2.0 % n/a n/a n/a Interest crediting rate 4.2 % 4.2 % 4.2 % 1.8 % 1.8 % 1.8 % n/a n/a n/a |
Estimated Pension Plan Benefit Payments | Estimated future benefit payments are as follows: Pension Plans Other Postretirement Benefits Plans Year U.S. Non-U.S. 2022 $ 92 $ 51 $ 18 2023 $ 93 $ 48 $ 17 2024 $ 89 $ 46 $ 16 2025 $ 87 $ 48 $ 15 2026 $ 85 $ 50 $ 14 2027-2031 $ 380 $ 272 $ 61 |
Schedule of Health Care Cost Trend Rate | The weighted average assumed health care cost trend rate used in determining next year’s postretirement health care benefits are as follows: Other Postretirement Benefits Plans 2021 2020 2019 Initial health care cost trend rate 6.1 % 6.3 % 6.6 % Ultimate health care cost trend rate 4.9 % 4.9 % 4.9 % Year ultimate health care cost trend rate reached 2027 2027 2027 |
Pension Plan Assets Invested | Pension plan assets were invested in the following classes of securities: Percentage of Fair Market Value December 31, 2021 U.S. Non-U.S. Equity securities 53 % 14 % Fixed income securities 41 % 59 % Insurance contracts — % 20 % Other 6 % 7 % |
Plan Assets using Fair Value Hierarchy | The following table presents the Company’s defined benefit plan assets measured at fair value by asset class: Fair Value Level at December 31, 2021 U.S. Non-U.S. Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investments with registered investment companies: Equity securities $ 488 $ — $ — $ 488 $ 1 $ — $ — $ 1 Fixed income securities 106 — — 106 11 — — 11 Real estate and other — — — — — — — — Equity securities 4 — — 4 4 38 — 42 Debt securities: Corporate and other — 163 — 163 — — — — Government 115 46 — 161 4 176 — 180 Real Estate and other — — — — 1 29 — 30 Insurance contracts — — — — — — 113 113 Hedge funds — — 11 11 — — — — Cash and equivalents 62 — — 62 12 — — 12 Total $ 775 $ 209 $ 11 $ 995 $ 33 $ 243 $ 113 $ 389 Plan assets measured at net asset value Equity securities $ 149 $ 31 Government debt securities — 103 Corporate and other debt securities 66 48 Total plan assets measured at net asset value 215 182 Net plan assets $ 1,210 $ 571 Fair Value Level at December 31, 2020 U.S. Non-U.S. Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Investments with registered investment companies: Equity securities $ 374 $ — $ — $ 374 $ 1 $ — $ — $ 1 Fixed income securities 140 — — 140 12 — — 12 Real estate and other 21 — — 21 — — — — Equity securities 242 — — 242 21 42 — 63 Debt securities: Corporate and other — 13 — 13 10 — — 10 Government 25 39 — 64 14 189 — 203 Real Estate and other — — — — 1 30 — 31 Insurance contracts — — — — — — 113 113 Hedge funds — — 17 17 — — — — Cash and equivalents 80 — — 80 5 — — 5 Total $ 882 $ 52 $ 17 $ 951 $ 64 $ 261 $ 113 $ 438 Plan assets measured at net asset value Equity securities $ 137 $ 84 Government debt securities — 36 Corporate and other debt securities 57 13 Total plan assets measured at net asset value 194 133 Net plan assets $ 1,145 $ 571 |
Significant Concentrations of Risk | The following table contains information about significant concentrations of risk, including all individual assets that make up more than 5% of the total assets and any direct investments in Tenneco stock: Asset Category Fair Value Fair Value Percentage of 2021: Tenneco stock 1 $ 4 0.2 % 2020: Tenneco stock 1 $ 4 0.2 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes and Noncontrolling Interests | The U.S. and non-U.S. components of the Company’s earnings (loss) before income taxes and noncontrolling interests are as follows: Year Ended December 31 2021 2020 2019 U.S. earnings (loss) $ (395) $ (884) $ (599) Non-U.S. earnings (loss) 677 (117) 398 Earnings (loss) before income taxes and noncontrolling interests $ 282 $ (1,001) $ (201) |
Comparative Analysis of Components of Income Tax Expense | The following table is a comparative analysis of the components of income tax expense (benefit): Year Ended December 31 2021 2020 2019 Current — U.S. federal $ (4) $ (11) $ 8 U.S. state and local 1 1 1 Non-U.S. 173 168 161 170 158 170 Deferred — U.S. federal (1) 336 (101) U.S. state and local — 35 (13) Non-U.S. 13 (70) (37) 12 301 (151) Income tax expense (benefit) $ 182 $ 459 $ 19 |
Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense | The following table is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (21% for 2021, 2020 and 2019) to the income tax expense (benefit) reflected in the consolidated statements of income (loss): Year Ended December 31 2021 2020 2019 Income tax expense (benefit) computed at the statutory U.S. federal income tax rate $ 59 $ (210) $ (42) Increases (reductions) in income tax expense resulting from: Non-U.S. income taxed at different rates 17 2 8 U.S. state and local taxes on income, net of U.S. federal income tax benefit (33) (26) (14) Changes in valuation allowance for tax loss carryforwards and credits 175 605 36 Tax credits and R&D incentives (21) (15) (19) Non-U.S. earnings subject to U.S. federal income tax 69 18 12 Non-deductible expenses / non-taxable items 24 15 16 Goodwill impairment and other non-deductible impairment — 65 22 Tax contingencies (72) 2 (7) Gains on transfers of subsidiaries — — 21 Nonconsolidated affiliates (11) (10) (8) Other (25) 13 (6) Income tax expense (benefit) $ 182 $ 459 $ 19 |
Components of Our Net Deferred Tax Assets | The components of the Company’s net deferred tax assets were as follows: December 31 2021 2020 Deferred tax assets — Tax loss carryforwards: U.S. federal $ 11 $ — U.S. state 45 34 Non-U.S. 736 630 Tax credits 305 276 Postretirement benefits other than pensions 19 19 Pensions 80 148 Payroll accruals 33 31 Property, plant and equipment 205 244 Research expense capitalized for tax 121 102 Interest expense carryforward 56 — Intangibles 25 — Other accruals 205 216 Total deferred tax assets before valuation allowance 1,841 1,700 Less: Valuation allowance (1,589) (1,428) Total deferred tax assets 252 272 Deferred tax liabilities — Intangibles — 11 Other liabilities 91 65 Total deferred tax liabilities 91 76 Net deferred tax assets $ 161 $ 196 |
Reconciliation of Our Uncertain Tax Positions | A reconciliation of the Company’s uncertain tax positions is as follows: 2021 2020 2019 Uncertain tax positions — Balance at beginning of period $ 208 $ 215 $ 224 Gross increases in tax positions in current period 6 4 12 Gross increases in tax positions in prior period 2 14 4 Gross decreases in tax positions in prior period (67) (7) (5) Gross decreases — settlements — — (12) Gross decreases — statute of limitations expired (21) (18) (8) Balance at end of period $ 128 $ 208 $ 215 |
Tax Years Open to Examination in Primary Jurisdictions | At December 31, 2021, the Company’s tax years open to examination in primary jurisdictions are as follows: Open To United States 2012 Belgium 2018 Brazil 2017 China 2012 France 2014 Germany 2012 India 2008 Italy 2016 Mexico 2014 Poland 2016 Spain 2017 United Kingdom 2016 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Environmental Loss Contingencies | The Company’s estimated share of environmental remediation costs for all these sites is recognized in the consolidated balance sheets as follows: December 31 2021 2020 Accrued expenses and other current liabilities $ 8 $ 8 Deferred credits and other liabilities 23 26 $ 31 $ 34 |
Schedule of Asset Retirement Obligations | The Company maintains ARO liabilities in the consolidated balance sheets as follows: December 31 2021 2020 Accrued expenses and other current liabilities (a) $ 10 $ 2 Deferred credits and other liabilities 4 12 $ 14 $ 14 (a) Includes liabilities held for sale for $9 million at December 31, 2021, and none at December 31, 2020. Refe r to Note 2, “Summary of Significant Accounting Policies”, for additional information on assets and liabilities held for sale. |
Warranty Accrual Table | The following represents the changes in the Company’s warranty accrual accounts: Year Ended December 31 2021 2020 2019 Balance at beginning of period $ 62 $ 54 $ 45 Accruals and revisions to estimates 52 28 32 Settlements (44) (21) (23) Foreign currency (1) 1 — Balance at end of period $ 69 $ 62 $ 54 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease costs | The components of lease expense were as follows: Year Ended December 31 2021 2020 2019 Operating lease expense $ 126 $ 122 $ 131 Finance lease expense (amortization of right-of-use assets) 5 2 1 Short-term lease expense 8 6 13 Variable lease expense 6 24 26 Sublease income (4) (1) (1) Total lease expense $ 141 $ 153 $ 170 Other information related to leases was as follows: Year Ended December 31 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 126 $ 143 $ 160 Financing cash flows from finance leases $ 4 $ 2 $ 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 94 $ 98 $ 170 Finance leases $ 6 $ 7 $ — December 31 2021 2020 Weighted average remaining lease term (in years) Weighted average discount rate Weighted average remaining lease term (in years) Weighted average discount rate Operating leases 6.16 3.42 % 5.38 3.63 % Finance leases 3.35 2.66 % 3.97 3.07 % |
Assets and Liabilities | Supplemental balance sheet information related to leases was as follows: December 31 2021 2020 Operating leases Other assets $ 319 $ 328 Accrued expenses and other current liabilities $ 92 $ 95 Deferred credits and other liabilities 240 241 Total operating lease liabilities $ 332 $ 336 Finance leases Property, plant and equipment, cost $ 24 $ 13 Accumulated depreciation and amortization (10) (6) Total finance lease right-of-use assets $ 14 $ 7 Short-term debt, including current maturities of long-term debt $ 4 $ 3 Long-term debt 9 5 Total finance lease liabilities $ 13 $ 8 |
Operating lease liabilities | Maturities of lease liabilities under non-cancellable leases at December 31, 2021 were as follows: Year ending December 31 Operating leases Finance leases 2022 $ 100 $ 5 2023 79 4 2024 53 3 2025 37 2 2026 25 — Thereafter 68 — Total future undiscounted lease payments 362 14 Less: imputed interest (30) (1) Total reported lease liability $ 332 $ 13 |
Finance lease liabilities | Maturities of lease liabilities under non-cancellable leases at December 31, 2021 were as follows: Year ending December 31 Operating leases Finance leases 2022 $ 100 $ 5 2023 79 4 2024 53 3 2025 37 2 2026 25 — Thereafter 68 — Total future undiscounted lease payments 362 14 Less: imputed interest (30) (1) Total reported lease liability $ 332 $ 13 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Total cash-settled share-based compensation expense as well as cash paid for cash-settled awards is as follows: Year Ended December 31 2021 2020 2019 Total compensation expense - cash-settled (net of tax) $ 14 $ 2 $ 3 Cash paid for cash-settled awards $ 9 $ 4 $ 7 Total share-settled share-based compensation expense is as follows: Year Ended December 31 2021 2020 2019 Total compensation expense - share-settled (net of tax) $ 18 $ 13 $ 19 |
Cash-Settled Awards | The share equivalents outstanding related to deferred compensation and cash-settled share-based awards are as follows: December 31 2021 2020 Restricted Stock Units (RSUs) 1,451,422 1,878,220 Performance Share Units (PSUs) 2,951,316 — 4,402,738 1,878,220 Deferred compensation arrangements (a) — 1,125,605 (a) At December 31, 2021, there are no share equivalents outstanding that are based on the Company’s stock price. On a prospective basis, the alternative for employees to invest their deferred compensation into these arrangements no longer exists. December 31 2021 2020 RSUs 1,451,422 1,878,220 PSUs 2,951,316 — 4,402,738 1,878,220 |
Nonvested Restricted Shares | The following table reflects the changes in share-settled RSUs and share-settled PSUs for the twelve months ended December 31, 2021: Share-Settled RSUs Share-Settled PSUs Units Weighted Avg. Units Weighted Avg. Nonvested balance at beginning of period 2,118,605 $ 26.00 527,105 $ 36.37 Granted 2,132,148 10.91 — — Vested (862,999) 31.86 (57,794) 49.18 Forfeited (270,696) 15.73 (141,015) 46.14 Nonvested balance at end of period 3,117,058 $ 13.94 328,296 $ 24.72 |
Vested Restricted Shares | The following table represents the total fair value of vested restricted stock, vested share-settled RSUs, and vested share-settled PSUs: Year Ended December 31 2021 2020 2019 Restricted stock $ 1 $ 4 $ 8 Share-settled RSUs $ 15 $ 11 $ 5 Share-settled PSUs $ 3 $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Year Ended December 31 Year Ended December 31 2021 2020 2019 2021 2020 2019 Shares issued at beginning of period 75,714,163 71,727,061 71,675,379 20,308,454 23,793,669 23,793,669 Issuance pursuant to benefit plans 1,021,223 640,112 113,916 — — — Restricted stock forfeited and withheld for taxes (330,652) (138,225) (70,672) — — — Stock options exercised — — 8,438 — — — Class B common stock converted to Class A common stock 20,308,454 3,485,215 — (20,308,454) (3,485,215) — Shares issued at end of period 96,713,188 75,714,163 71,727,061 — 20,308,454 23,793,669 Treasury stock 14,592,888 14,592,888 14,592,888 — — — Total shares outstanding 82,120,300 61,121,275 57,134,173 — 20,308,454 23,793,669 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following represents the Company’s changes in accumulated other comprehensive income (loss) by component: Year Ended December 31 2021 2020 2019 Foreign currency translation adjustment: Balance at beginning of period $ (395) $ (369) $ (395) Other comprehensive income (loss) before reclassifications (76) (26) 23 Income tax benefit (provision) — — 3 Balance at end of period (471) (395) (369) Defined benefit plans: Balance at beginning of period (353) (342) (297) Other comprehensive income (loss) before reclassifications 221 (8) (46) Reclassification from other comprehensive income (loss) 14 (5) 7 Income tax benefit (provision) (8) 2 (6) Balance at end of period (126) (353) (342) Cash flow hedges: Balance at beginning of year 4 — — Other comprehensive income (loss) before reclassifications 6 4 1 Reclassification from other comprehensive income (loss) (8) — (1) Balance at end of period 2 4 — Accumulated other comprehensive loss at end of year $ (595) $ (744) $ (711) Other comprehensive income (loss) attributable to noncontrolling interests, net of tax $ (7) $ 14 $ (10) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Earnings (Loss) per Share of Common Stock | Earnings (loss) per share of common stock outstanding were computed as follows: Year Ended December 31 2021 2020 2019 Net income (loss) attributable to Tenneco Inc. $ 35 $ (1,521) $ (334) Basic earnings (loss) per share — Average shares of common stock outstanding 82,218,480 81,378,474 80,904,060 Earnings (loss) per average share of common stock $ 0.43 $ (18.69) $ (4.12) Diluted earnings (loss) per share — Average shares of common stock outstanding 82,218,480 81,378,474 80,904,060 Effect of dilutive securities: Restricted stock, RSUs and PSUs 1,381,547 — — Average shares of common stock outstanding including dilutive securities 83,600,027 81,378,474 80,904,060 Earnings (loss) per average share of common stock $ 0.42 $ (18.69) $ (4.12) Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share 1,787,410 2,346,904 1,868,274 |
Segment and Geographic Area I_2
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment results are as follows: Reportable Segments Motorparts Performance Solutions Clean Air Powertrain Total Reclass & Elims Total Year Ended December 31, 2021 Revenues from external customers $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 $ — $ 18,035 Intersegment revenues $ 44 $ 92 $ 19 $ 193 $ 348 $ (348) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 12 $ 1 $ — $ 44 $ 57 $ — $ 57 Year Ended December 31, 2020 Revenues from external customers $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 $ — $ 15,379 Intersegment revenues $ 31 $ 105 $ 21 $ 141 $ 298 $ (298) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 9 $ 1 $ — $ 37 $ 47 $ — $ 47 Year Ended December 31, 2019 Revenues from external customers $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 $ — $ 17,450 Intersegment revenues $ 40 $ 158 $ — $ 160 $ 358 $ (358) $ — Equity in earnings of nonconsolidated affiliates, net of tax $ 7 $ 4 $ — $ 32 $ 43 $ — $ 43 Year Ended December 31 2021 2020 2019 EBITDA including noncontrolling interests by Segments: Motorparts $ 375 $ 155 $ 184 Performance Solutions 119 (634) 114 Clean Air 584 440 582 Powertrain 346 169 257 Total reportable segments 1,424 130 1,137 Corporate (275) (215) (343) Depreciation and amortization (593) (639) (673) Earnings (loss) before interest expense, income taxes, and noncontrolling interests 556 (724) 121 Interest expense (274) (277) (322) Income tax (expense) benefit (182) (459) (19) Net income (loss) $ 100 $ (1,460) $ (220) The following table shows cash payments for property, plant and equipment by reportable segment: Year Ended December 31 2021 2020 2019 Cash payments for property, plant and equipment: Motorparts $ 39 $ 23 $ 61 Performance Solutions 84 89 199 Clean Air 129 109 208 Powertrain 128 159 250 Other unallocated assets 7 14 26 Total $ 387 $ 394 $ 744 |
Revenue Percent by Major Customers | The following customers each accounted for 10% or more of the Company’s net sales in the last three years. The net sales to both customers were across all segments. Customer 2021 2020 2019 General Motors Company 11 % 11 % 11 % Ford Motor Company 10 % 10 % 10 % |
Geographic Information Table | Revenues from external customers (b) Long-lived assets (c) Year Ended December 31 December 31 2021 2020 2019 2021 2020 United States $ 6,159 $ 5,151 $ 6,203 $ 954 $ 1,061 China 3,219 2,817 2,377 738 713 Germany 2,202 1,793 2,227 483 532 Mexico 1,014 900 959 243 247 Poland 988 822 925 313 335 India 617 414 475 165 160 Belgium 501 437 236 47 54 United Kingdom 305 361 568 126 114 Other Foreign (a) 3,030 2,684 3,480 911 956 Consolidated $ 18,035 $ 15,379 $ 17,450 $ 3,980 $ 4,172 (a) Revenues from external customers and long-lived assets for individual foreign countries other than China, Germany, Mexico, Poland, India, Belgium, and United Kingdom are not individually material. (b) Revenues are attributed to countries based on the origin of sales. (c) Long-lived assets include all long-term assets except goodwill, intangibles, and deferred tax assets. |
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 table, revenue is disaggregated accordingly: Reportable Segments By Customer Type Motorparts Performance Solutions Clean Air Powertrain Total Year Ended December 31, 2021 OE - Substrate $ — $ — $ 4,291 $ — $ 4,291 OE - Value add — 2,832 3,844 4,001 10,677 Aftermarket 2,991 76 — — 3,067 Total $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 Year Ended December 31, 2020 OE - Substrate $ — $ — $ 3,355 $ — $ 3,355 OE - Value add — 2,446 3,366 3,431 9,243 Aftermarket 2,725 56 — — 2,781 Total $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 Year Ended December 31, 2019 OE - Substrate $ — $ — $ 3,027 $ — $ 3,027 OE - Value add — 3,047 4,094 4,062 11,203 Aftermarket 3,167 53 — — 3,220 Total $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 Reportable Segments By Geography Motorparts Performance Solutions Clean Air Powertrain Total Year Ended December 31, 2021 North America $ 1,868 $ 893 $ 3,210 $ 1,226 $ 7,197 Europe, Middle East, Africa and South America 900 1,254 2,383 2,020 6,557 Asia Pacific 223 761 2,542 755 4,281 Total $ 2,991 $ 2,908 $ 8,135 $ 4,001 $ 18,035 Year Ended December 31, 2020 North America $ 1,798 $ 768 $ 2,639 $ 1,078 $ 6,283 Europe, Middle East, Africa and South America 749 1,109 1,976 1,684 5,518 Asia Pacific 178 625 2,106 669 3,578 Total $ 2,725 $ 2,502 $ 6,721 $ 3,431 $ 15,379 Year Ended December 31, 2019 North America $ 2,018 $ 1,008 $ 3,031 $ 1,368 $ 7,425 Europe, Middle East, Africa and South America 932 1,421 2,388 2,023 6,764 Asia Pacific 217 671 1,702 671 3,261 Total $ 3,167 $ 3,100 $ 7,121 $ 4,062 $ 17,450 |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Details) - 12 months ended Dec. 31, 2021 | segment | Segment |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | 4 | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Restricted Cash (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Restricted cash | $ 6 | $ 5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Notes and Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts on short-term and long-term accounts receivable | $ 26 | $ 32 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Inventories (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Federal-Mogul | |
Business Acquisition [Line Items] | |
Non-cash charge for inventory step-up | $ 44 |
Öhlins acquisitions | |
Business Acquisition [Line Items] | |
Non-cash charge for inventory step-up | $ 5 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Held for Sale And Divestitures (Details) - USD ($) $ in Millions | Mar. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Proceeds from sale of assets | $ 55 | $ 29 | $ 20 | |
Impairment of assets held for sale | 10 | 2 | ||
Non Core Business And Related Assets | ||||
Business Acquisition [Line Items] | ||||
Impairment of assets held for sale | $ 8 | |||
Held-for-sale | ||||
Business Acquisition [Line Items] | ||||
Liabilities held for sale | 9 | |||
Held-for-sale | Land, Buildings, And Non-Core Machinery And Equipment | ||||
Business Acquisition [Line Items] | ||||
Assets held for sale | 22 | 15 | ||
Liabilities held for sale | $ 9 | 1 | ||
Impairment of assets held for sale | 1 | |||
Held-for-sale | Non Core Business And Related Assets | ||||
Business Acquisition [Line Items] | ||||
Assets held for sale | 15 | |||
Impairment of long-lived assets held-for-use | 1 | |||
Proceeds from sale of assets | 6 | |||
Held-for-sale | Motorsports Certain Assets and Liabilities | ||||
Business Acquisition [Line Items] | ||||
Proceeds from sale of assets | $ 22 | $ 3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Acquisition (Details) - USD ($) $ in Millions | Oct. 01, 2019 | Jan. 10, 2019 |
Ohlins Intressenter AB | ||
Business Acquisition [Line Items] | ||
Percentage of business acquired | 90.50% | |
Purchase price | $ 162 | |
Cash acquired from acquisition | $ 4 | |
Öhlins Intressenter AB | K Öhlin Holding AB | ||
Business Acquisition [Line Items] | ||
Ownership percentage | 9.50% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Redeemable Non Controlling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 10, 2019 | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Redemption value | $ 50 | $ 45 | ||
Currently redeemable | 41 | 33 | ||
Redemption value remeasurement adjustments | 11 | 10 | $ 58 | |
Reclassification of noncontrolling interest to permanent equity | 0 | 82 | 0 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Beginning Balance | 78 | 196 | 138 | |
Net income attributable to redeemable noncontrolling interests | 23 | 22 | 27 | |
Other comprehensive (loss) income | (4) | 3 | (10) | |
Acquisition and other | 0 | 0 | 17 | |
Noncontrolling interest tender offer redemption | 0 | (46) | 0 | |
Redemption value remeasurement adjustments | 11 | 10 | 58 | |
Purchase accounting measurement period adjustments | 0 | 0 | (8) | |
Reclassification of noncontrolling interest to permanent equity | 0 | (82) | 0 | |
Dividends declared to noncontrolling interests | (17) | (25) | (26) | |
Ending Balance | 91 | 78 | 196 | |
Öhlins Intressenter AB | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redemption value remeasurement adjustments | 11 | 10 | 5 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redemption value remeasurement adjustments | $ 11 | $ 10 | 5 | |
Öhlins Intressenter AB | K Öhlin Holding AB | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Ownership percentage | 9.50% | |||
Subsidiary India | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redemption value remeasurement adjustments | 53 | |||
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Redemption value remeasurement adjustments | $ 53 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Pre-production Design and Development and Tooling Assets (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
In-process tools and dies built for original equipment customers | $ 112 | $ 143 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Advertising and Promotion Expenses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Advertising and promotion expenses | $ 36 | $ 24 | $ 45 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||
Gains on sale-leaseback transactions | $ 32 | |
Foreign Tax Authority | ||
Income Tax Examination [Line Items] | ||
VAT recovery | $ 22 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Foreign Currency Translation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Foreign currency transaction gains (losses) | $ (20) | $ (17) | $ (11) |
Restructuring Charges, Net an_3
Restructuring Charges, Net and Asset Impairments - Incurred Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | $ 48 | $ 119 | $ 113 | |
Asset impairments related to restructuring actions | 2 | 29 | 3 | |
Other non-restructuring asset impairments | 9 | 472 | 2 | |
Impairment of assets held for sale | 10 | 2 | ||
Total asset impairment charges | 21 | 503 | 13 | |
Restructuring Costs and Asset Impairment Charges, Total | 69 | 622 | 126 | |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | 2 | 5 | 11 | |
Asset impairments related to restructuring actions | 0 | 0 | 0 | |
Other non-restructuring asset impairments | 7 | 17 | 0 | |
Impairment of assets held for sale | 0 | 0 | 0 | |
Total asset impairment charges | 7 | 17 | 0 | |
Restructuring Costs and Asset Impairment Charges, Total | 9 | 22 | 11 | |
Motorparts | Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | 5 | 17 | 14 | |
Asset impairments related to restructuring actions | $ 25 | 2 | 26 | 0 |
Other non-restructuring asset impairments | 1 | 0 | 1 | |
Impairment of assets held for sale | 0 | 1 | 8 | |
Total asset impairment charges | $ 16 | 3 | 27 | 9 |
Restructuring Costs and Asset Impairment Charges, Total | 8 | 44 | 23 | |
Performance Solutions | Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | 12 | 25 | 28 | |
Asset impairments related to restructuring actions | 0 | 0 | 3 | |
Other non-restructuring asset impairments | 0 | 455 | 0 | |
Impairment of assets held for sale | 0 | 0 | 0 | |
Total asset impairment charges | 0 | 455 | 3 | |
Restructuring Costs and Asset Impairment Charges, Total | 12 | 480 | 31 | |
Clean Air | Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | 7 | 22 | 29 | |
Asset impairments related to restructuring actions | 0 | 0 | 0 | |
Other non-restructuring asset impairments | 1 | 0 | 1 | |
Impairment of assets held for sale | 10 | 0 | 0 | |
Total asset impairment charges | 11 | 0 | 1 | |
Restructuring Costs and Asset Impairment Charges, Total | 18 | 22 | 30 | |
Powertrain | Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other charges, net | 22 | 50 | 31 | |
Asset impairments related to restructuring actions | 0 | 3 | 0 | |
Other non-restructuring asset impairments | 0 | 0 | 0 | |
Impairment of assets held for sale | 0 | 1 | 0 | |
Total asset impairment charges | 0 | 4 | 0 | |
Restructuring Costs and Asset Impairment Charges, Total | $ 22 | $ 54 | $ 31 |
Restructuring Charges, Net an_4
Restructuring Charges, Net and Asset Impairments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | $ 84 | $ 140 | $ 125 | ||
Asset write down | 21 | 503 | 13 | ||
Asset impairments related to restructuring actions | 2 | 29 | 3 | ||
Revisions to estimates | (36) | (21) | (12) | ||
Other non-restructuring asset impairments | 9 | 472 | 2 | ||
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset write down | 7 | 17 | 0 | ||
Asset impairments related to restructuring actions | 0 | 0 | 0 | ||
Operating lease, impairment loss | 4 | 6 | |||
Impairment of long-lived assets held-for-use | 3 | 11 | |||
Other non-restructuring asset impairments | 7 | 17 | 0 | ||
Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 74 | 124 | 103 | ||
Restructuring costs | 4 | 11 | |||
Revisions to estimates | (36) | (18) | (12) | ||
Employee Costs | Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 2 | ||||
Facility Closure and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 10 | 16 | 22 | ||
Revisions to estimates | 0 | (3) | 0 | ||
Project Accelerate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | ||||
Project Accelerate | Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 4 | 26 | |||
Restructuring costs | 28 | 44 | |||
Cost Reduction Programs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 69 | ||||
Cost Reduction Programs | Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 27 | 65 | |||
Plant Consolidations, Relocations And Closures | Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 25 | ||||
Plant Consolidations, Relocations And Closures | Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 25 | ||||
Motorparts | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset write down | $ 16 | 3 | 27 | 9 | |
Asset impairments related to restructuring actions | 25 | 2 | 26 | 0 | |
Operating lease, impairment loss | $ 9 | ||||
Impairment of long-lived assets held-for-use | 2 | 1 | 1 | ||
Other non-restructuring asset impairments | 1 | 0 | 1 | ||
Motorparts | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 13 | ||||
Restructuring costs | 3 | ||||
Motorparts | Europe And North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 6 | ||||
Restructuring costs | 2 | ||||
Motorparts | Other Restructuring | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 3 | ||||
Motorparts | Project Accelerate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 5 | ||||
Motorparts | Cost Reduction Programs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 7 | ||||
Revisions to estimates | 2 | ||||
Motorparts | Cost Reduction Programs | Revisions to Estimates Cost | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 2 | ||||
Revisions to estimates | 7 | ||||
Motorparts | Plant Consolidations, Relocations And Closures | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of long-lived assets held-for-use | 1 | ||||
Motorparts | Plant Consolidations, Relocations And Closures | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 7 | 4 | |||
Revisions to estimates | 1 | ||||
Motorparts | Distribution Network | Employee Costs | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 4 | ||||
Performance Solutions | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset write down | 0 | 455 | 3 | ||
Asset impairments related to restructuring actions | 0 | 0 | 3 | ||
Other non-restructuring asset impairments | 0 | 455 | 0 | ||
Performance Solutions | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 10 | ||||
Restructuring costs | 1 | ||||
Performance Solutions | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 19 | ||||
Performance Solutions | Project Accelerate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 3 | ||||
Performance Solutions | Project Accelerate | Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 1 | ||||
Performance Solutions | Cost Reduction Programs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 13 | 11 | |||
Revisions to estimates | 3 | ||||
Performance Solutions | Cost Reduction Programs | Revisions to Estimates Cost | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | 5 | ||||
Performance Solutions | Cost Reduction Programs | Revisions to Estimates Cost | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | 1 | ||||
Performance Solutions | Plant Consolidations, Relocations And Closures | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 6 | 15 | |||
Revisions to estimates | 1 | ||||
Clean Air | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of long-lived assets held-for-use | 1 | ||||
Clean Air | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 18 | ||||
Restructuring costs | 4 | ||||
Clean Air | Europe And Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 17 | ||||
Restructuring costs | 2 | ||||
Clean Air | Project Accelerate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 9 | ||||
Clean Air | Project Accelerate | Revisions to Estimates Cost | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 3 | ||||
Clean Air | Cost Reduction Programs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 16 | ||||
Revisions to estimates | 2 | ||||
Clean Air | Cost Reduction Programs | Employee Costs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 18 | ||||
Clean Air | Cost Reduction Programs | Revisions to Estimates Cost | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | 12 | ||||
Clean Air | Plant Consolidations, Relocations And Closures | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of long-lived assets held-for-use | 1 | ||||
Clean Air | Plant Consolidations, Relocations And Closures | Europe And Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 5 | ||||
Revisions to estimates | 6 | ||||
Clean Air | Plant Consolidations, Relocations And Closures | Employee Costs | North America And Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | $ 5 | ||||
Clean Air | Plant Consolidations, Relocations And Closures | Revisions to Estimates Cost | North America And Asia Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | $ 1 | ||||
Powertrain | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset write down | 0 | 4 | 0 | ||
Asset impairments related to restructuring actions | 0 | 3 | 0 | ||
Impairment of long-lived assets held-for-use | 3 | ||||
Other non-restructuring asset impairments | 0 | 0 | 0 | ||
Powertrain | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 25 | ||||
Powertrain | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 6 | ||||
Powertrain | Employee Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 36 | ||||
Powertrain | Project Accelerate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 8 | ||||
Powertrain | Cost Reduction Programs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 12 | 23 | |||
Powertrain | Cost Reduction Programs | Revisions to Estimates Cost | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 6 | ||||
Revisions to estimates | 1 | ||||
Powertrain | Voluntary Termination Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 8 | ||||
Powertrain | Voluntary Termination Program | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 7 | ||||
Powertrain | Voluntary Termination Program | Employee Costs | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 15 | ||||
Powertrain | Voluntary Termination Program | One-time Termination Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 10 | ||||
Powertrain | Voluntary Termination Program | Special Termination Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 26 | ||||
Powertrain | Voluntary Termination Program | Special Termination Benefits | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 5 | ||||
Powertrain | Voluntary Termination Program | Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 2 | ||||
Powertrain | Plant Consolidations, Relocations And Closures | Europe And North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring asset impairments | 9 | 17 | |||
Powertrain | Plant Consolidations, Relocations And Closures | Revisions to Estimates Cost | Europe And North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Revisions to estimates | 5 | ||||
Clean Air | Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Asset write down | 11 | 0 | 1 | ||
Asset impairments related to restructuring actions | 0 | 0 | 0 | ||
Other non-restructuring asset impairments | $ 1 | $ 0 | $ 1 |
Restructuring Charges, Net an_5
Restructuring Charges, Net and Asset Impairments - Roll Forward of Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | $ 100 | $ 101 | $ 103 |
Provisions | 84 | 140 | 125 |
Revisions to estimates | (36) | (21) | (12) |
Payments | (83) | (122) | (115) |
Foreign currency | (2) | 2 | |
Restructuring reserve, ending balance | 63 | 100 | 101 |
Employee Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 99 | 97 | 98 |
Provisions | 74 | 124 | 103 |
Revisions to estimates | (36) | (18) | (12) |
Payments | (72) | (106) | (92) |
Foreign currency | (2) | 2 | |
Restructuring reserve, ending balance | 63 | 99 | 97 |
Facility Closure and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 1 | 4 | 5 |
Provisions | 10 | 16 | 22 |
Revisions to estimates | 0 | (3) | 0 |
Payments | (11) | (16) | (23) |
Foreign currency | 0 | 0 | |
Restructuring reserve, ending balance | $ 0 | $ 1 | $ 4 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory [Line Items] | ||
Finished goods | $ 747 | $ 758 |
Work in process | 508 | 449 |
Raw materials | 510 | 441 |
Materials and supplies | 81 | 95 |
Inventories | 1,846 | 1,743 |
Motorparts | ||
Inventory [Line Items] | ||
Inventory write-down | $ 44 | $ 82 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Motorparts | ||
Inventory [Line Items] | ||
Inventory write-down | $ 44 | $ 82 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | $ 5,824 | $ 5,871 | |
Less: Accumulated depreciation and amortization | (2,952) | (2,814) | |
Property, plant and equipment, net | 2,872 | 3,057 | |
Depreciation and amortization | 465 | 509 | $ 535 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | 251 | 261 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | $ 984 | 1,086 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 50 years | ||
Machinery, equipment and tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | $ 3,990 | 3,885 | |
Machinery, equipment and tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 3 years | ||
Machinery, equipment and tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 25 years | ||
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | $ 248 | 265 | |
Capitalized software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 3 years | ||
Capitalized software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of plant, property and equipment | 12 years | ||
Other, including construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, cost | $ 351 | $ 374 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($)reporting_unit | Mar. 31, 2019USD ($)reporting_unit | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 267 | $ 108 | |||
Goodwill | $ 507 | 508 | |||
Amortization of intangible assets | 128 | 130 | 138 | ||
Trade names and trademarks intangible asset impairment charges | 51 | 133 | |||
Non-cash impairment charge | 65 | ||||
Reporting Unit Within Powertrain Segment | |||||
Goodwill [Line Items] | |||||
Goodwill | 40 | ||||
Performance Solutions | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 9 | $ 60 | $ 156 | 69 | |
Number of reporting units with goodwill | reporting_unit | 1 | 2 | 1 | ||
Goodwill | 172 | $ 172 | |||
Trade names and trademarks intangible asset impairment charges | 11 | 0 | |||
Non-cash impairment charge | 65 | ||||
Motorparts | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 70 | 21 | |||
Number of reporting units with goodwill | reporting_unit | 1 | ||||
Goodwill | 313 | $ 313 | |||
Trade names and trademarks intangible asset impairment charges | 40 | 133 | |||
Non-cash impairment charge | 0 | ||||
Motorparts | Greater than 25% | |||||
Goodwill [Line Items] | |||||
Reporting units of fair value exceeds carrying amount | 496 | ||||
Motorparts | Less than 25% | |||||
Goodwill [Line Items] | |||||
Reporting units of fair value exceeds carrying amount | 11 | ||||
Powertrain | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charges | $ 41 | 18 | |||
Number of reporting units with goodwill | reporting_unit | 1 | ||||
Goodwill | $ 0 | $ 0 | |||
Trade names and trademarks intangible asset impairment charges | 0 | $ 0 | |||
Non-cash impairment charge | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||||
Gross carrying amount at beginning of period | $ 1,254 | $ 1,244 | |||
Reclassification from assets held for sale | 2 | ||||
Foreign exchange | (4) | 8 | |||
Gross carrying amount at end of period | 1,250 | 1,254 | $ 1,244 | ||
Accumulated impairment loss at beginning of period | (746) | (469) | |||
Impairment | (267) | (108) | |||
Foreign exchange | 3 | (10) | |||
Accumulated impairment loss at end of period | (743) | (746) | (469) | ||
Net carrying value at end of period | 507 | 508 | |||
Motorparts | |||||
Goodwill [Roll Forward] | |||||
Gross carrying amount at beginning of period | 623 | 620 | |||
Reclassification from assets held for sale | 2 | ||||
Foreign exchange | 0 | 1 | |||
Gross carrying amount at end of period | 623 | 623 | 620 | ||
Accumulated impairment loss at beginning of period | (310) | (239) | |||
Impairment | (70) | (21) | |||
Foreign exchange | 0 | (1) | |||
Accumulated impairment loss at end of period | (310) | (310) | (239) | ||
Net carrying value at end of period | 313 | 313 | |||
Performance Solutions | |||||
Goodwill [Roll Forward] | |||||
Gross carrying amount at beginning of period | 549 | 543 | |||
Reclassification from assets held for sale | 0 | ||||
Foreign exchange | (3) | 6 | |||
Gross carrying amount at end of period | 546 | 549 | 543 | ||
Accumulated impairment loss at beginning of period | (377) | (212) | |||
Impairment | $ (9) | $ (60) | (156) | (69) | |
Foreign exchange | 3 | (9) | |||
Accumulated impairment loss at end of period | (374) | (377) | (212) | ||
Net carrying value at end of period | 172 | 172 | |||
Clean Air | |||||
Goodwill [Roll Forward] | |||||
Gross carrying amount at beginning of period | 23 | 22 | |||
Reclassification from assets held for sale | 0 | ||||
Foreign exchange | (1) | 1 | |||
Gross carrying amount at end of period | 22 | 23 | 22 | ||
Accumulated impairment loss at beginning of period | 0 | 0 | |||
Impairment | 0 | ||||
Foreign exchange | 0 | 0 | |||
Accumulated impairment loss at end of period | 0 | 0 | 0 | ||
Net carrying value at end of period | 22 | 23 | |||
Powertrain | |||||
Goodwill [Roll Forward] | |||||
Gross carrying amount at beginning of period | 59 | 59 | |||
Reclassification from assets held for sale | 0 | ||||
Foreign exchange | 0 | 0 | |||
Gross carrying amount at end of period | 59 | 59 | 59 | ||
Accumulated impairment loss at beginning of period | (59) | (18) | |||
Impairment | (41) | (18) | |||
Foreign exchange | 0 | 0 | |||
Accumulated impairment loss at end of period | (59) | (59) | $ (18) | ||
Net carrying value at end of period | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,353 | $ 1,359 |
Accumulated Amortization | (530) | (402) |
Net Carrying Value | 823 | 957 |
Indefinite-lived intangible assets | 233 | 237 |
Intangible assets, net | $ 1,056 | 1,194 |
Customer relationships and platforms | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross Carrying Value | $ 993 | 995 |
Accumulated Amortization | (374) | (282) |
Net Carrying Value | $ 619 | 713 |
Customer contract | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross Carrying Value | $ 8 | 8 |
Accumulated Amortization | (7) | (6) |
Net Carrying Value | 1 | 2 |
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 | $ 135 | 139 |
Accumulated Amortization | (62) | (51) |
Net Carrying Value | $ 73 | 88 |
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 | 54 |
Accumulated Amortization | (18) | (12) |
Net Carrying Value | $ 36 | 42 |
Catalogs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite useful life of intangible assets | 10 years | |
Gross Carrying Value | $ 47 | 47 |
Accumulated Amortization | (15) | (11) |
Net Carrying Value | 32 | 36 |
Licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 64 | 66 |
Accumulated Amortization | (47) | (35) |
Net Carrying Value | $ 17 | 31 |
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 | $ 51 | 49 |
Accumulated Amortization | (6) | (4) |
Net Carrying Value | $ 45 | $ 45 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 124 | |
2023 | 121 | |
2024 | 114 | |
2025 | 114 | |
2026 | 114 | |
2027 and thereafter | 236 | |
Net Carrying Value | $ 823 | $ 957 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Impairment Charges For Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charges | $ 267 | $ 108 | |||
Trade names and trademarks intangible asset impairment charges | 51 | 133 | |||
Definite-lived intangible asset impairment charges | 65 | ||||
Goodwill and intangible impairment charges | $ 0 | 383 | 241 | ||
Motorparts | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charges | 70 | 21 | |||
Trade names and trademarks intangible asset impairment charges | 40 | 133 | |||
Definite-lived intangible asset impairment charges | 0 | ||||
Goodwill and intangible impairment charges | 110 | 154 | |||
Performance Solutions | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charges | $ 9 | $ 60 | 156 | 69 | |
Trade names and trademarks intangible asset impairment charges | 11 | 0 | |||
Definite-lived intangible asset impairment charges | 65 | ||||
Goodwill and intangible impairment charges | 232 | 69 | |||
Powertrain | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charges | 41 | 18 | |||
Trade names and trademarks intangible asset impairment charges | 0 | 0 | |||
Definite-lived intangible asset impairment charges | 0 | ||||
Goodwill and intangible impairment charges | $ 41 | $ 18 |
Investment in Nonconsolidated_3
Investment in Nonconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Amount equity method exceeded its share of the underlying net assets | $ 258 | $ 287 | |
Investments in nonconsolidated affiliates | $ 539 | $ 581 | |
Federal-Mogul | |||
Schedule of Equity Method Investments [Line Items] | |||
Reduction to equity in earnings | $ 12 | ||
Anqing TP Goetze Piston Ring Company Limited (China) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 35.70% | 35.70% | |
Anqing TP Powder Metallurgy Co., Ltd (China) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.00% | 20.00% | |
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | |
Farloc Argentina SAIC Y F (Argentina) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 23.90% | 23.90% | |
Federal-Mogul Powertrain Otomotiv A.S. (Turkey) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 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% | |
Federal-Mogul TP Liners, Inc. (USA) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 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% | |
JURID do Brasil Sistemas Automotivos Ltda. (Brazil) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 19.90% | 19.90% | |
KB Autosys Co., Ltd. (Korea) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 20.60% | 33.60% | |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 4 | ||
Investments in nonconsolidated affiliates | $ 8 | ||
Montagewerk Abgastechnik Emden GmbH (Germany) | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% |
Investment in Nonconsolidated_4
Investment in Nonconsolidated Affiliates - Summarized Financial Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statements of Income | |||
Sales | $ 18,035,000 | $ 15,379,000 | $ 17,450,000 |
Income from continuing operations | 282,000 | (1,001,000) | (201,000) |
Net income | 100,000 | (1,460,000) | (220,000) |
Balance Sheets | |||
Current assets | 5,813,000 | 5,693,000 | |
Current liabilities | 4,691,000 | 4,686,000 | |
Equity Method Investment, Nonconsolidated | |||
Statements of Income | |||
Sales | 968,000 | 840,000 | 935,000 |
Gross profit | 238,000 | 199,000 | 212,000 |
Income from continuing operations | 176,000 | 145,000 | 148,000 |
Net income | 158,000 | 130,000 | 136,000 |
Balance Sheets | |||
Current assets | 601,000 | 645,000 | |
Noncurrent assets | 541,000 | 462,000 | |
Current liabilities | 229,000 | 218,000 | |
Noncurrent liabilities | 116,000 | 123,000 | |
Net sales | 75,000 | 89,000 | 104,000 |
Purchases | 385,000 | 320,000 | 392,000 |
Royalty and other income (expense) | 9,000 | 8,000 | 10,000 |
Receivables | 10,000 | 17,000 | |
Payables and accruals | 69,000 | 86,000 | |
Otomotiv A.S. | Equity Method Investment, Nonconsolidated | |||
Statements of Income | |||
Sales | 347,000 | 285,000 | 305,000 |
Gross profit | 102,000 | 84,000 | 79,000 |
Income from continuing operations | 86,000 | 71,000 | 63,000 |
Net income | 80,000 | 65,000 | 60,000 |
Balance Sheets | |||
Current assets | 112,000 | 167,000 | |
Noncurrent assets | 166,000 | 141,000 | |
Current liabilities | 51,000 | 29,000 | |
Noncurrent liabilities | 80,000 | 108,000 | |
Other | Equity Method Investment, Nonconsolidated | |||
Statements of Income | |||
Sales | 621,000 | 555,000 | 630,000 |
Gross profit | 136,000 | 115,000 | 133,000 |
Income from continuing operations | 90,000 | 74,000 | 85,000 |
Net income | 78,000 | 65,000 | $ 76,000 |
Balance Sheets | |||
Current assets | 489,000 | 478,000 | |
Noncurrent assets | 375,000 | 321,000 | |
Current liabilities | 178,000 | 189,000 | |
Noncurrent liabilities | $ 36,000 | $ 15,000 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Foreign Exchange Forward $ in Millions | Dec. 31, 2021USD ($) |
Long positions | |
Derivative [Line Items] | |
Notional amount | $ 401 |
Short positions | |
Derivative [Line Items] | |
Notional amount | $ 396 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value - Cash-Settled Award (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments [Line Items] | ||
Cash-settled share based units (in shares) | 4,402,738 | 1,878,220 |
Deferred compensation arrangements (in shares) | 0 | 1,125,605 |
Restricted Stock Units (RSUs) | ||
Financial Instruments [Line Items] | ||
Cash-settled share based units (in shares) | 1,451,422 | 1,878,220 |
Performance Share Units (PSUs) | ||
Financial Instruments [Line Items] | ||
Cash-settled share based units (in shares) | 2,951,316 | 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value - Additional Information (Details) € in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2020EUR (€)shares | Jun. 30, 2020 | Dec. 31, 2018USD ($) | |
Financial Instruments [Line Items] | ||||||
Long-term debt | $ 5,018,000,000 | $ 5,171,000,000 | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | 396,000,000 | 181,000,000 | ||||
Non-cash impairment charge | 65,000,000 | |||||
Other non-restructuring asset impairments | 9,000,000 | 472,000,000 | $ 2,000,000 | |||
Performance Solutions | ||||||
Financial Instruments [Line Items] | ||||||
Non-cash impairment charge | 65,000,000 | |||||
Reportable Segments | Performance Solutions | ||||||
Financial Instruments [Line Items] | ||||||
Other non-restructuring asset impairments | 0 | 455,000,000 | 0 | |||
Cash flow hedging instruments | ||||||
Financial Instruments [Line Items] | ||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 2,000,000 | 4,000,000 | $ 0 | $ 0 | ||
Income Approach | ||||||
Financial Instruments [Line Items] | ||||||
Goodwill measurement input | 0.75 | |||||
Market Approach | ||||||
Financial Instruments [Line Items] | ||||||
Goodwill measurement input | 0.25 | |||||
Other debt | ||||||
Financial Instruments [Line Items] | ||||||
Long-term debt | $ 77,000,000 | $ 180,000,000 | ||||
Equity Swap | ||||||
Financial Instruments [Line Items] | ||||||
Notional amount (in shares) | shares | 3,100,000 | 1,700,000 | 1,700,000 | |||
Commodity Contract | ||||||
Financial Instruments [Line Items] | ||||||
Notional amount | $ 34,000,000 | $ 10,000,000 | ||||
Term of derivative | 1 year | |||||
Net Investment Hedging | ||||||
Financial Instruments [Line Items] | ||||||
Long-term debt | $ 420,000,000 | € 344 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value - Estimated Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Collateral amount | $ 0 | $ 7,000,000 |
Prepayments and other current assets | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other financial instruments in asset positions(a) | $ 35,000,000 | $ 1,000,000 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commodity Contract | Cash Flow Hedging | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification and tax | $ 6 | $ 4 | $ 1 |
Foreign exchange contracts | Net Investment Hedging | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification and tax | $ 0 | $ (74) | $ 20 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value - Fair Value of Long Term Debt (Details) - Level 2 - Term loans and senior notes - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 4,998 | $ 5,153 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 5,060 | $ 5,138 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Summary of Long-Term Debt Obligations (Details) | 12 Months Ended | ||||||
Dec. 31, 2021USD ($)quarterly_installment | Dec. 31, 2021EUR (€)quarterly_installment | Mar. 17, 2021USD ($) | Mar. 03, 2021 | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Mar. 31, 2019USD ($)quarterly_installment | |
Debt Instrument [Line Items] | |||||||
Carrying Amount | $ 5,024,000,000 | $ 5,176,000,000 | |||||
Less - maturities classified as current | 6,000,000 | 5,000,000 | |||||
Total long-term debt | 5,018,000,000 | 5,171,000,000 | |||||
Unamortized debt issuance costs | 78,000,000 | 82,000,000 | |||||
Unamortized premium | 1,000,000 | ||||||
Debt Instrument, Unamortized Discount | 20,000,000 | ||||||
Unamortized debt issuance costs | 78,000,000 | 82,000,000 | |||||
Unamortized premium | (1,000,000) | ||||||
Debt instrument, unamortized discount | (20,000,000) | ||||||
Finance lease, liability | 13,000,000 | 8,000,000 | |||||
Short-term debt, including current maturities of long-term debt | 4,000,000 | 3,000,000 | |||||
Line of Credit | Revolver Borrowings Due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 0 | 0 | |||||
Carrying Amount | $ 0 | $ 0 | |||||
Effective Interest Rate | 0.00% | 0.00% | 0.00% | ||||
Term Loan | Tenneco Inc. Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 1,403,000,000 | $ 1,530,000,000 | |||||
Carrying Amount | $ 1,396,000,000 | $ 1,520,000,000 | |||||
Effective Interest Rate | 2.081% | 2.081% | 2.876% | ||||
Quarterly installments | quarterly_installment | 7 | 7 | 19 | ||||
Quarterly installments | quarterly_installment | 7 | 7 | 19 | ||||
Term Loan | Tenneco Inc. Term Loan A | Installment Three | |||||||
Debt Instrument [Line Items] | |||||||
Quarterly installments | quarterly_installment | 7 | 7 | |||||
Principal payment | $ 43,000,000 | ||||||
Quarterly installments | quarterly_installment | 7 | 7 | |||||
Principal payment | $ 43,000,000 | ||||||
Term Loan | Tenneco Inc. Term Loan A | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Stated rate | 1.75% | 1.75% | 2.50% | ||||
Stated rate | 1.75% | 1.75% | 2.50% | ||||
Term Loan | Tenneco Inc. Term Loan B | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 1,649,000,000 | $ 1,666,000,000 | |||||
Carrying Amount | $ 1,606,000,000 | $ 1,612,000,000 | |||||
Effective Interest Rate | 3.911% | 3.911% | 3.955% | ||||
Quarterly installments | quarterly_installment | 27 | ||||||
Repayments of principal percentage | $ 4,000,000 | ||||||
Quarterly installments | quarterly_installment | 27 | ||||||
Repayments of principal percentage | $ 4,000,000 | ||||||
Term Loan | Tenneco Inc. Term Loan B | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Stated rate | 3.00% | 3.00% | |||||
Stated rate | 3.00% | 3.00% | |||||
Senior Notes | 5 3/8% Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 225,000,000 | € 225,000,000 | $ 225,000,000 | ||||
Carrying Amount | $ 223,000,000 | $ 223,000,000 | |||||
Effective Interest Rate | 5.56% | 5.56% | 5.609% | ||||
Stated rate | 5.375% | 5.375% | |||||
Stated rate | 5.375% | 5.375% | |||||
Senior Notes | 5.000% Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 500,000,000 | € 500,000,000 | $ 500,000,000 | ||||
Carrying Amount | $ 496,000,000 | $ 494,000,000 | |||||
Effective Interest Rate | 5.171% | 5.171% | 5.219% | ||||
Stated rate | 5.00% | 5.00% | |||||
Stated rate | 5.00% | 5.00% | |||||
Senior Notes | 4.875% Euro Floating Rates Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 0 | € 300,000,000 | $ 366,000,000 | ||||
Carrying Amount | $ 0 | $ 370,000,000 | |||||
Effective Interest Rate | 0.00% | 0.00% | 4.62% | ||||
Stated rate | 4.875% | 4.875% | 4.875% | ||||
Stated rate | 4.875% | 4.875% | 4.875% | ||||
Senior Notes | 5.000% Euro Fixed Rate Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 0 | € 350,000,000 | $ 428,000,000 | ||||
Carrying Amount | $ 0 | $ 445,000,000 | |||||
Effective Interest Rate | 0.00% | 0.00% | 3.823% | ||||
Stated rate | 5.00% | 5.00% | 5.00% | 5.00% | |||
Stated rate | 5.00% | 5.00% | 5.00% | 5.00% | |||
Senior Notes | 7.875% Senior Secured Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||
Carrying Amount | $ 490,000,000 | $ 489,000,000 | |||||
Effective Interest Rate | 8.049% | 8.049% | 8.212% | ||||
Stated rate | 7.875% | 7.875% | |||||
Stated rate | 7.875% | 7.875% | |||||
Senior Notes | 5.125% Senior Secured Notes Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 800,000,000 | $ 800,000,000 | $ 0 | ||||
Carrying Amount | $ 787,000,000 | $ 0 | |||||
Effective Interest Rate | 5.306% | 5.306% | 5.125% | 0.00% | |||
Stated rate | 5.125% | 5.125% | 5.125% | ||||
Stated rate | 5.125% | 5.125% | 5.125% | ||||
Other Debt, primarily foreign instruments | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 26,000,000 | $ 24,000,000 | |||||
Carrying Amount | $ 26,000,000 | $ 23,000,000 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021MXN ($) | Dec. 14, 2020 | |
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 78,000,000 | $ 82,000,000 | |||
Long term debt maturities within the next twelve months | 193,000,000 | ||||
Gain (loss) on extinguishment of debt | 8,000,000 | 2,000,000 | $ 0 | ||
Line of credit facility, remaining borrowing capacity | 1,400,000,000 | ||||
Liquidity | 2,300,000,000 | ||||
Cash | 865,000,000 | ||||
Long-term debt | 5,018,000,000 | 5,171,000,000 | |||
Surety Bond | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 28,000,000 | $ 600,000,000 | |||
Other Assets | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 11,000,000 | 17,000,000 | |||
Tenneco Inc. Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | 0 | ||||
Tenneco Inc. Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | 0 | ||||
4.875% Euro Fixed Rate Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Stated rate | 4.875% | ||||
Tenneco Inc. revolving credit agreement | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, remaining borrowing capacity | 1,400,000,000 | ||||
Long-term debt | 0 | ||||
Term Loan | Tenneco Inc. Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 1,403,000,000 | $ 1,530,000,000 | |||
Long term debt maturities within the next twelve months | $ 170,000,000 | ||||
Term Loan | Tenneco Inc. Term Loan A | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Stated rate | 1.75% | 2.50% | 1.75% | ||
Term Loan | Tenneco Inc. Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,649,000,000 | $ 1,666,000,000 | |||
Long term debt maturities within the next twelve months | $ 17,000,000 | ||||
Term Loan | Tenneco Inc. Term Loan B | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Stated rate | 3.00% | 3.00% | |||
Senior Notes | 7.875% Euro Fixed Rate Notes Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Stated rate | 7.875% | 7.875% | |||
Committed Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 42,000,000 | ||||
Letters of credit outstanding | 69,000,000 | ||||
Committed Letters of Credit | Surety Bond | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 82,000,000 | $ 1,700,000,000 | |||
Uncommitted Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | $ 76,000,000 | ||||
Revolving Credit Facility | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Consolidated net leverage ratio | 2.50 |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Aggregate Maturities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 193 |
2023 | 1,255 |
2024 | 246 |
2025 | 1,607 |
2026 | $ 502 |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements - Short-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Maturities classified as current | $ 6 | $ 5 |
Short-term borrowings | 51 | 157 |
Total short-term debt | $ 57 | $ 162 |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Notes Payable (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Notes Payable Current | ||
Short-term Debt [Line Items] | ||
Weighted average interest rate on outstanding short-term borrowings at end of year | 3.20% | 3.60% |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Financing Arrangements (Details) $ in Billions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 1.4 |
Tenneco Inc. Term Loan A | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 0 |
Tenneco Inc. revolving credit agreement | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 1.4 |
Tenneco Inc. Term Loan B | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 0 |
Subsidiaries’ credit agreements | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 0 |
Debt and Other Financing Arra_9
Debt and Other Financing Arrangements - Term Loans (Details) - USD ($) $ in Millions | Jun. 03, 2019 | Oct. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | |||||
Maximum percentage of stock pledged | 66.00% | ||||
Loss on extinguishment of debt | $ (8) | $ (2) | $ 0 | ||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt term | 5 years | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 4,900 | ||||
Financing fees | 18 | ||||
Revolving Credit Facility | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 1,500 | ||||
Term Loan A Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt term | 5 years | ||||
Term Loan A Facility | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 1,700 | ||||
Term Loan B Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt term | 7 years | ||||
Term Loan B Facility | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 1,700 | ||||
LIBOR | Term Loan B Facility | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.75% | ||||
LIBOR | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 175.00% | ||||
Debt Covenant, Term 1 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3 | ||||
Debt Covenant, Term 1 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.50 | ||||
Debt Covenant, Term 1 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Revolving Credit Facility | Covenant Reset Trigger | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.50 | ||||
Debt Covenant, Term 1 | LIBOR | Term Loan B Facility | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 3.00% | 3.00% | |||
Debt Covenant, Term 1 | LIBOR | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.00% | ||||
Debt Covenant, Term 1 | LIBOR | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.50% | ||||
Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 5.25 | ||||
Consolidated interest coverage ratio | 2.75 | ||||
Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Revolving Credit Facility | Covenant Reset Trigger | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.25 | ||||
Debt Covenant, Term 2 | LIBOR | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.75% | ||||
Debt Covenant, Term 2 | LIBOR | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 2.25% | ||||
Debt Covenant, Term 3 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.75 | ||||
Senior secured net leverage ratio | 8.75 | ||||
Consolidated interest coverage ratio | 2 | ||||
Debt Covenant, Term 3 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Revolving Credit Facility | Covenant Reset Trigger | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4 | ||||
Debt Covenant, Term 3 | LIBOR | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.50% | ||||
Debt Covenant, Term 4 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.25 | ||||
Senior secured net leverage ratio | 8.25 | ||||
Consolidated interest coverage ratio | 1.50 | ||||
Debt Covenant, Term 4 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Revolving Credit Facility | Covenant Reset Trigger | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3.75 | ||||
Debt Covenant, Term 4 | LIBOR | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Variable rate | 1.25% | ||||
Debt Covenant, Term 5 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3.75 | ||||
Senior secured net leverage ratio | 4.50 | ||||
Consolidated interest coverage ratio | 2.75 | ||||
Debt Covenant, Term 5 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Revolving Credit Facility | Covenant Reset Trigger | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3.50 | ||||
Debt Covenant, Term 6 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured net leverage ratio | 4.25 | ||||
Debt Covenant, Term 7 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Senior secured net leverage ratio | 4 | ||||
Maximum | Debt Covenant, Term 1 | Term Loan A Facility | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2 | ||||
Maximum | Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3 | ||||
Maximum | Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 6 | ||||
Maximum | Debt Covenant, Term 3 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2.5 | ||||
Maximum | Debt Covenant, Term 4 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 1.5 | ||||
Minimum | LIBOR | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2.50 | ||||
Minimum | Debt Covenant, Term 1 | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2 | ||||
Minimum | Debt Covenant, Term 1 | Term Loan A Facility | Term Loan | Financial Maintenance Covenant | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2 | ||||
Minimum | Debt Covenant, Term 1 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 3 | ||||
Minimum | Debt Covenant, Term 1 | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 6 | ||||
Minimum | Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 2.5 | ||||
Minimum | Debt Covenant, Term 2 | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 4.5 | ||||
Minimum | Debt Covenant, Term 3 | Term Loan A, New Credit Facility, Third Amendment | Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Consolidated net leverage ratio | 1.5 |
Debt and Other Financing Arr_10
Debt and Other Financing Arrangements - Senior Notes (Details) | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021MXN ($) | Mar. 17, 2021USD ($) | Mar. 03, 2021 | Dec. 14, 2020 | Oct. 01, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ 8,000,000 | $ 2,000,000 | $ 0 | ||||||
Maximum percentage of stock pledged | 66.00% | 66.00% | 66.00% | ||||||
Surety Bond | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitments | $ 28,000,000 | $ 600,000,000 | |||||||
Committed Letters of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitments | 42,000,000 | ||||||||
Committed Letters of Credit | Surety Bond | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitments | $ 82,000,000 | $ 1,700,000,000 | |||||||
4.875% Euro Fixed Rate Notes due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 4.875% | ||||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | ||||||||
Senior Notes | 5 3/8% Senior Notes due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 5.375% | 5.375% | 5.375% | ||||||
Principal amount | $ 225,000,000 | 225,000,000 | € 225,000,000 | ||||||
Senior Notes | 5.000% Senior Notes due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 5.00% | 5.00% | 5.00% | ||||||
Principal amount | $ 500,000,000 | 500,000,000 | € 500,000,000 | ||||||
Senior Notes | 5.000% Euro Fixed Rate Notes due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||
Principal amount | $ 0 | 428,000,000 | € 350,000,000 | ||||||
Senior Notes | 7.875% Euro Fixed Rate Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 7.875% | 7.875% | 7.875% | ||||||
Senior Notes | 4.875% Euro Fixed Rate Notes due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | ||||||||
Senior Notes | 5.125% Senior Secured Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 5.125% | 5.125% | 5.125% | 5.125% | |||||
Principal amount | $ 800,000,000 | $ 0 | $ 800,000,000 | ||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitments | $ 4,900,000,000 | ||||||||
Debt Instrument, Redemption, Period One | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 40.00% | ||||||||
Debt Instrument, Redemption, Period One | Senior Notes | 7.875% Euro Fixed Rate Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 7.875% | ||||||||
Debt Instrument, Redemption, Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 101.00% | ||||||||
Debt Instrument, Redemption, Period Two | Senior Notes | 7.875% Euro Fixed Rate Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 107.875% | ||||||||
Debt Instrument, Redemption, Period Two | Senior Notes | 105.125% Senior Secured Notes Due 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage | 105.125% | ||||||||
Debt Instrument, Redemption, Period Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | ||||||||
Debt Instrument, Redemption, Period Four | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated rate | 101.00% | 101.00% | 101.00% |
Debt and Other Financing Arr_11
Debt and Other Financing Arrangements - Accounts Receivable Securitization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Accounts receivable outstanding and derecognized | $ 1,000 | $ 1,000 | |
Cash proceeds received for assets derecognized, amount | 500 | 400 | |
Deferred purchase price receivable | 51 | 51 | |
Proceeds from factoring qualifying as sales | 5,200 | 4,100 | $ 5,000 |
Accounts receivable qualifying as sales and drafting programs, amount | 3,900 | 3,300 | 4,200 |
Interest Expense | |||
Debt Instrument [Line Items] | |||
Loss on sale of receivables | $ 19 | $ 20 | $ 31 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Income and Expenses [Abstract] | ||
Accrued rebates | $ 190 | $ 191 |
Accrued freight | 91 | 70 |
Operating lease liability | 92 | 95 |
Accrued factoring payable | 70 | 84 |
Non-income tax payable | 69 | 128 |
Product return reserves | 64 | 75 |
Restructuring liabilities | 55 | 95 |
Accrued warranty | 53 | 52 |
Accrued interest | 41 | 29 |
Accrued professional services | 40 | 46 |
Pension and postretirement benefits liability | 38 | 43 |
Legal reserves | 7 | 10 |
Environmental reserve | 8 | 8 |
Other | 409 | 262 |
Accrued expenses and other current liabilities | $ 1,227 | $ 1,188 |
Pension Plans, Postretirement_3
Pension Plans, Postretirement and Other Employee Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Expense recorded relating to employee matching contribution | $ 78 | $ 77 | $ 76 |
Curtailment gain (loss) | 21 | ||
Non-cash settlement charge | 6 | ||
Acceptable tolerance limit of investment allocations for securities | 5.00% | ||
Pension Plans | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 2,247 | 2,446 | |
Other Postretirement Benefits Plans | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Expected contributions in 2020 | 18 | ||
Pension benefit obligations | 82 | 81 | |
Increase (decrease) plan amendments | (20) | (59) | |
Increase (decrease) in AOCI | 20 | 57 | 13 |
Increase in AOCI (net of tax) | 0 | 0 | 4 |
Curtailment gain (loss) | 0 | 21 | 7 |
Non-cash settlement charge | 0 | 0 | 0 |
Other Postretirement Benefits Plans | FM OPEB Plan | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Increase (decrease) plan amendments | $ (20) | (57) | (17) |
U.S. | Equity securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Targeted pension plan allocations in debt securities | 54.00% | ||
U.S. | Fixed income securities | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Targeted pension plan allocations in debt securities | 46.00% | ||
U.S. | Pension Plans | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Expected contributions in 2020 | $ 4 | ||
Increase (decrease) plan amendments | 0 | 1 | |
Curtailment gain (loss) | 0 | 0 | 0 |
Non-cash settlement charge | $ 0 | $ (1) | (6) |
Non-cash charge | $ 5 | ||
Weighted average return on assets | 5.60% | 6.20% | |
Expected long-term return on plan assets | 6.20% | 6.30% | 6.30% |
Non-U.S. | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Expected long-term return on plan assets | 2.70% | 2.90% | |
Non-U.S. | Pension Plans | |||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||
Expected contributions in 2020 | $ 46 | ||
Increase (decrease) plan amendments | 0 | $ 0 | |
Curtailment gain (loss) | 0 | 0 | $ 0 |
Non-cash settlement charge | $ (1) | $ (6) | $ (1) |
Expected long-term return on plan assets | 2.90% | 3.50% | 4.00% |
Pension Plans, Postretirement_4
Pension Plans, Postretirement and Other Employee Benefits - Summary of Amount Recognized in Balance Sheets for Pension Plans and Postretirement Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Noncurrent liabilities | $ (830) | $ (1,101) | |
Pension Plans | U.S. | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at December 31 of the previous year | 1,383 | 1,320 | |
Service cost | 2 | 1 | |
Interest cost | 31 | 41 | $ 53 |
Settlement | 0 | 0 | |
Administrative expenses/taxes paid | 0 | 0 | |
Plan amendments | 0 | 1 | |
Actuarial (gain)/loss | (45) | 114 | |
Other | 0 | 0 | |
Benefits paid | (93) | (94) | |
Participants’ contributions | 0 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Benefit obligation at December 31 | 1,278 | 1,383 | 1,320 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance at December 31 of the previous year | 1,145 | 1,062 | |
Settlement | 0 | 0 | |
Actual return on plan assets | 154 | 126 | |
Administrative expenses/taxes paid | 0 | 0 | |
Employer contributions | 4 | 51 | |
Participants’ contributions | 0 | 0 | |
Benefits paid | (93) | (94) | |
Currency rate conversion and other | 0 | 0 | |
Other | 0 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Ending Balance at December 31 | 1,210 | 1,145 | 1,062 |
Funded status of the plans | (68) | (238) | |
Noncurrent assets | 0 | 0 | |
Current liabilities | (3) | (2) | |
Noncurrent liabilities | (65) | (236) | |
Net amount recognized | (68) | (238) | |
Pension Plans | Non-U.S. | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at December 31 of the previous year | 1,122 | 1,048 | |
Service cost | 26 | 25 | |
Interest cost | 17 | 18 | 24 |
Settlement | (5) | (17) | |
Administrative expenses/taxes paid | (5) | (5) | |
Plan amendments | 0 | 0 | |
Actuarial (gain)/loss | (39) | 28 | |
Other | 0 | 2 | |
Benefits paid | (43) | (44) | |
Participants’ contributions | 1 | 1 | |
Currency rate conversion and other | 50 | (66) | |
Currency rate conversion and other | (50) | 66 | |
Benefit obligation at December 31 | 1,024 | 1,122 | 1,048 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance at December 31 of the previous year | 571 | 523 | |
Settlement | (5) | (17) | |
Actual return on plan assets | 24 | 47 | |
Administrative expenses/taxes paid | (5) | (5) | |
Employer contributions | 41 | 42 | |
Participants’ contributions | 1 | 1 | |
Benefits paid | (43) | (44) | |
Currency rate conversion and other | 50 | (66) | |
Other | 0 | 2 | |
Currency rate conversion and other | (13) | 22 | |
Ending Balance at December 31 | 571 | 571 | 523 |
Funded status of the plans | (453) | (551) | |
Noncurrent assets | 75 | 37 | |
Current liabilities | (17) | (18) | |
Noncurrent liabilities | (511) | (570) | |
Net amount recognized | (453) | (551) | |
Other Postretirement Benefits Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at December 31 of the previous year | 237 | 300 | |
Service cost | 0 | 0 | |
Interest cost | 6 | 9 | 13 |
Settlement | 0 | 0 | |
Administrative expenses/taxes paid | 0 | 0 | |
Plan amendments | (20) | (59) | |
Actuarial (gain)/loss | (16) | 5 | |
Other | 0 | 0 | |
Benefits paid | (18) | (18) | |
Participants’ contributions | 1 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Benefit obligation at December 31 | 190 | 237 | 300 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Balance at December 31 of the previous year | 0 | 0 | |
Settlement | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Administrative expenses/taxes paid | 0 | 0 | |
Employer contributions | 17 | 18 | |
Participants’ contributions | 1 | 0 | |
Benefits paid | (18) | (18) | |
Currency rate conversion and other | 0 | 0 | |
Other | 0 | 0 | |
Currency rate conversion and other | 0 | 0 | |
Ending Balance at December 31 | 0 | 0 | $ 0 |
Funded status of the plans | (190) | (237) | |
Noncurrent assets | 0 | 0 | |
Current liabilities | (18) | (23) | |
Noncurrent liabilities | (172) | (214) | |
Net amount recognized | (190) | (237) | |
Postretirement liability | $ 82 | $ 81 |
Pension Plans, Postretirement_5
Pension Plans, Postretirement and Other Employee Benefits - Amounts to be Reflected as Component of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | $ 144 | $ 290 |
Prior service cost/(credit) | 1 | 1 |
Total | 145 | 291 |
Pension Plans | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | 108 | 168 |
Prior service cost/(credit) | 3 | 4 |
Total | 111 | 172 |
Other Postretirement Benefits Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | 14 | 32 |
Prior service cost/(credit) | (109) | (99) |
Total | $ (95) | $ (67) |
Pension Plans, Postretirement_6
Pension Plans, Postretirement and Other Employee Benefits - Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets for All Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 1,278 | $ 1,383 |
Accumulated benefit obligation | 1,278 | 1,383 |
Fair value of plan assets | 1,210 | 1,145 |
Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 602 | 696 |
Accumulated benefit obligation | 561 | 654 |
Fair value of plan assets | 81 | 118 |
Pension Plans | U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 1,278 | 1,383 |
Fair value of plan assets | 1,210 | 1,145 |
Pension Plans | Non-U.S. | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 645 | 743 |
Fair value of plan assets | 117 | 155 |
Other Postretirement Benefits Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 190 | 237 |
Fair value of plan assets | $ 0 | $ 0 |
Pension Plans, Postretirement_7
Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment loss (gain) | $ (21) | ||
Settlement loss | (6) | ||
Pension Plans | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2 | 1 | $ 2 |
Interest cost | 31 | 41 | 53 |
Expected return on plan assets | (65) | (64) | (67) |
Curtailment loss (gain) | 0 | 0 | 0 |
Settlement loss | 0 | 1 | 6 |
Net Amortization [Abstract] | |||
Actuarial loss | 12 | 6 | 5 |
Prior service cost (credit) | 0 | 0 | 0 |
Net periodic costs | (20) | (15) | (1) |
Pension Plans | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 26 | 25 | 24 |
Interest cost | 17 | 18 | 24 |
Expected return on plan assets | (16) | (17) | (19) |
Curtailment loss (gain) | 0 | 0 | 0 |
Settlement loss | 1 | 6 | 1 |
Net Amortization [Abstract] | |||
Actuarial loss | 8 | 8 | 5 |
Prior service cost (credit) | 1 | 0 | 1 |
Net periodic costs | 37 | 40 | 36 |
Other Postretirement Benefits Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 1 |
Interest cost | 6 | 9 | 13 |
Expected return on plan assets | 0 | 0 | 0 |
Curtailment loss (gain) | 0 | (21) | (7) |
Settlement loss | 0 | 0 | 0 |
Net Amortization [Abstract] | |||
Actuarial loss | 2 | 2 | 4 |
Prior service cost (credit) | (10) | (7) | (8) |
Net periodic costs | $ (2) | $ (17) | $ 3 |
Pension Plans, Postretirement_8
Pension Plans, Postretirement and Other Employee Benefits - Weighted Average Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-U.S. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Expected long-term return on plan assets | 2.70% | 2.90% | |
Pension Plans | U.S. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.80% | 2.30% | 3.20% |
Interest crediting rate | 4.20% | 4.20% | |
Discount rate | 2.30% | 3.20% | 4.20% |
Expected long-term return on plan assets | 6.20% | 6.30% | 6.30% |
Interest crediting rate | 4.20% | 4.20% | 4.20% |
Pension Plans | Non-U.S. | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 1.90% | 1.50% | 1.70% |
Rate of compensation increase | 1.90% | 1.80% | 2.00% |
Interest crediting rate | 1.80% | 1.80% | 1.80% |
Discount rate | 1.50% | 1.70% | 2.60% |
Expected long-term return on plan assets | 2.90% | 3.50% | 4.00% |
Rate of compensation increase | 1.80% | 2.00% | 2.00% |
Interest crediting rate | 1.80% | 1.80% | 1.80% |
Other Postretirement Benefits Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.90% | 2.50% | 3.20% |
Discount rate | 2.50% | 3.20% | 4.30% |
Pension Plans, Postretirement_9
Pension Plans, Postretirement and Other Employee Benefits - Estimated Pension Plan Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans | U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | $ 92 |
2023 | 93 |
2024 | 89 |
2025 | 87 |
2026 | 85 |
2027-2031 | 380 |
Pension Plans | Non-U.S. | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | 51 |
2023 | 48 |
2024 | 46 |
2025 | 48 |
2026 | 50 |
2027-2031 | 272 |
Other Postretirement Benefits Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2022 | 18 |
2023 | 17 |
2024 | 16 |
2025 | 15 |
2026 | 14 |
2027-2031 | $ 61 |
Pension Plans, Postretiremen_10
Pension Plans, Postretirement and Other Employee Benefits - Healthcare Trend (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Initial health care cost trend rate | 6.10% | 6.30% | 6.60% |
Ultimate health care cost trend rate | 4.90% | 4.90% | 4.90% |
Pension Plans, Postretiremen_11
Pension Plans, Postretirement and Other Employee Benefits - Pension Plan Assets Classes of Securities (Details) | Dec. 31, 2021 |
U.S. | Equity securities | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 53.00% |
U.S. | Fixed income securities | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 41.00% |
U.S. | Insurance contracts | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 0.00% |
U.S. | Other | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 6.00% |
Non-U.S. | Equity securities | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 14.00% |
Non-U.S. | Fixed income securities | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 59.00% |
Non-U.S. | Insurance contracts | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 20.00% |
Non-U.S. | Other | |
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | |
Debt Securities | 7.00% |
Pension Plans, Postretiremen_12
Pension Plans, Postretirement and Other Employee Benefits - Plan Assets Using Fair Value Hierarchy (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | $ 1,210 | $ 1,145 | $ 1,062 |
U.S. | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 775 | 882 | |
U.S. | Level 1 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 488 | 374 | |
U.S. | Level 1 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 4 | 242 | |
U.S. | Level 1 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 106 | 140 | |
U.S. | Level 1 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 1 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 115 | 25 | |
U.S. | Level 1 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 1 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 1 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 1 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 62 | 80 | |
U.S. | Level 1 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 21 | |
U.S. | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 209 | 52 | |
U.S. | Level 2 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 163 | 13 | |
U.S. | Level 2 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 46 | 39 | |
U.S. | Level 2 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 2 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 11 | 17 | |
U.S. | Level 3 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 11 | 17 | |
U.S. | Level 3 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Level 3 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Total | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 995 | 951 | |
U.S. | Total | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 488 | 374 | |
U.S. | Total | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 4 | 242 | |
U.S. | Total | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 106 | 140 | |
U.S. | Total | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 163 | 13 | |
U.S. | Total | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 161 | 64 | |
U.S. | Total | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Total | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
U.S. | Total | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 11 | 17 | |
U.S. | Total | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 62 | 80 | |
U.S. | Total | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 21 | |
U.S. | Plan assets measured at net asset value | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 215 | 194 | |
U.S. | Plan assets measured at net asset value | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 149 | 137 | |
U.S. | Plan assets measured at net asset value | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 66 | 57 | |
U.S. | Plan assets measured at net asset value | Government debt securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 571 | 571 | $ 523 |
Non-U.S. | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 33 | 64 | |
Non-U.S. | Level 1 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 1 | 1 | |
Non-U.S. | Level 1 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 4 | 21 | |
Non-U.S. | Level 1 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 11 | 12 | |
Non-U.S. | Level 1 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 10 | |
Non-U.S. | Level 1 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 4 | 14 | |
Non-U.S. | Level 1 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 1 | 1 | |
Non-U.S. | Level 1 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 1 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 1 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 12 | 5 | |
Non-U.S. | Level 1 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 243 | 261 | |
Non-U.S. | Level 2 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 38 | 42 | |
Non-U.S. | Level 2 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 176 | 189 | |
Non-U.S. | Level 2 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 29 | 30 | |
Non-U.S. | Level 2 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 113 | 113 | |
Non-U.S. | Level 3 | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 113 | 113 | |
Non-U.S. | Level 3 | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Total | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 389 | 438 | |
Non-U.S. | Total | Equity Securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 1 | 1 | |
Non-U.S. | Total | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 42 | 63 | |
Non-U.S. | Total | Fixed income securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 11 | 12 | |
Non-U.S. | Total | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 10 | |
Non-U.S. | Total | Government | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 180 | 203 | |
Non-U.S. | Total | Real Estate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 30 | 31 | |
Non-U.S. | Total | Insurance contracts | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 113 | 113 | |
Non-U.S. | Total | Hedge funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Total | Cash and equivalents | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 12 | 5 | |
Non-U.S. | Total | Real Estate And Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 0 | 0 | |
Non-U.S. | Plan assets measured at net asset value | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 182 | 133 | |
Non-U.S. | Plan assets measured at net asset value | Equity securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 31 | 84 | |
Non-U.S. | Plan assets measured at net asset value | Corporate and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | 48 | 13 | |
Non-U.S. | Plan assets measured at net asset value | Government debt securities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Net plan assets | $ 103 | $ 36 |
Pension Plans, Postretiremen_13
Pension Plans, Postretirement and Other Employee Benefits - Significant Concentrations of Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Investment in Tenneco stock | $ 4 | |
Investment in Tenneco stock as a percentage of total plan assets | 0.20% | |
Level 1 | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Investment in Tenneco stock | $ 4 | |
Investment in Tenneco stock as a percentage of total plan assets | 0.20% |
Income Taxes - Income before in
Income Taxes - Income before income taxes and noncontrolling interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. earnings (loss) | $ (395) | $ (884) | $ (599) |
Non-U.S. earnings (loss) | 677 | (117) | 398 |
Earnings (loss) before income taxes and noncontrolling interests | $ 282 | $ (1,001) | $ (201) |
Income Taxes - Comparative Anal
Income Taxes - Comparative Analysis of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
U.S. federal | $ (4) | $ (11) | $ 8 |
State and local | 1 | 1 | 1 |
Non-U.S. | 173 | 168 | 161 |
Total current income tax expenses | 170 | 158 | 170 |
Deferred | |||
U.S. federal | (1) | 336 | (101) |
U.S. state and local | 0 | 35 | (13) |
Non-U.S. | 13 | (70) | (37) |
Total deferred income tax expenses | 12 | 301 | (151) |
Income tax expense | $ 182 | $ 459 | $ 19 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Effective income tax rate reconciliation | 21.00% | 21.00% | 21.00% | ||
Income tax (expense) benefit | $ 182 | $ 459 | $ 19 | ||
Unrecognized tax benefits | 128 | 208 | 215 | $ 54 | $ 224 |
Valuation allowance | 1,589 | 1,428 | $ 54 | ||
Goodwill impairment and other non-deductible impairment | 0 | 65 | 22 | ||
Changes in valuation allowance for tax loss carryforwards and credits | (175) | (605) | (36) | ||
Gains on transfers of subsidiaries | 0 | 0 | 21 | ||
State tax loss carryforwards | 1 | 3 | |||
Foreign tax loss carryforwards | 29 | 43 | |||
Unremitted earnings of foreign subsidiaries | 2,600 | ||||
Estimated income tax liability related to unremitted earnings of foreign subsidiaries | 129 | ||||
Unrecognized tax benefits | 44 | 70 | |||
Unrecognized tax benefits, interest on income taxes expense | (1) | 2 | 1 | ||
Unrecognized tax benefits, accrued liabilities for interest and penalties | 17 | 18 | |||
Estimated decrease in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of foreign income tax examinations that may occur within the coming year | $ 41 | ||||
Spain | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Changes in valuation allowance for tax loss carryforwards and credits | $ 33 | ||||
United States | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income tax (expense) benefit | 507 | ||||
Non-US | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income tax (expense) benefit | $ 98 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory U.S. federal income tax rate | $ 59 | $ (210) | $ (42) |
Increases (reductions) in income tax expense resulting from: | |||
Non-U.S. income taxed at different rates | 17 | 2 | 8 |
U.S. state and local taxes on income, net of U.S. federal income tax benefit | (33) | (26) | (14) |
Changes in valuation allowance for tax loss carryforwards and credits | 175 | 605 | 36 |
Tax credits and R&D incentives | (21) | (15) | (19) |
Non-U.S. earnings subject to U.S. federal income tax | 69 | 18 | 12 |
Non-deductible expenses / non-taxable items | 24 | 15 | 16 |
Goodwill impairment and other non-deductible impairment | 0 | 65 | 22 |
Tax contingencies | (72) | 2 | (7) |
Gains on transfers of subsidiaries | 0 | 0 | 21 |
Nonconsolidated affiliates | (11) | (10) | (8) |
Other | (25) | 13 | (6) |
Income tax expense | $ 182 | $ 459 | $ 19 |
Income Taxes - Components of Ou
Income Taxes - Components of Our Net Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | |||
U.S. federal | $ 11 | $ 0 | |
U.S. state | 45 | 34 | |
Non-U.S. | 736 | 630 | |
Tax credits | 305 | 276 | |
Postretirement benefits other than pensions | 19 | 19 | |
Pensions | 80 | 148 | |
Payroll accruals | 33 | 31 | |
Property, plant and equipment | 205 | 244 | |
Research expense capitalized for tax | 121 | 102 | |
Interest expense carryforward | 56 | 0 | |
Intangibles | 25 | 0 | |
Other accruals | 205 | 216 | |
Total deferred tax assets before valuation allowance | 1,841 | 1,700 | |
Less: Valuation allowance | (1,589) | $ (54) | (1,428) |
Total deferred tax assets | 252 | 272 | |
Deferred tax liabilities | |||
Intangibles | 0 | 11 | |
Other | 91 | 65 | |
Total deferred tax liabilities | 91 | 76 | |
Net deferred tax assets | $ 161 | $ 196 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of our Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Uncertain tax positions - | |||
Balance January 1 | $ 208 | $ 215 | $ 224 |
Gross increases in tax positions in current period | 6 | 4 | 12 |
Gross increases in tax positions in prior period | 2 | 14 | 4 |
Gross decreases in tax positions in prior period | (67) | (7) | (5) |
Gross decreases - settlements | 0 | 0 | (12) |
Gross decreases - statute of limitations expired | (21) | (18) | (8) |
Balance December 31 | $ 128 | $ 208 | $ 215 |
Income Taxes - Tax Years Open t
Income Taxes - Tax Years Open to Examination in Primary Jurisdictions (Details) | 12 Months Ended |
Dec. 31, 2021 | |
United States | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2012 |
Belgium | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2018 |
Brazil | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2017 |
China | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2012 |
France | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2014 |
Germany | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2012 |
India | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2008 |
Italy | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2016 |
Mexico | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2014 |
Poland | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2016 |
Spain | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2017 |
United Kingdom | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2016 |
Commitments and Contingencies -
Commitments and Contingencies - Capital and Lease Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimate of authorized expenditures required to complete facilities and projects | $ 59 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued expenses and other current liabilities | $ 8 | $ 8 |
Deferred credits and other liabilities | 23 | 26 |
Environmental remediation accrual, discounted basis | 31 | $ 34 |
Expenditures for property, plant and equipment 2022 | 9 | |
Expenditures for property, plant and equipment 2023 | $ 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Other Legal Proceedings, Claims and Investigations (Details) | 9 Months Ended |
Sep. 30, 2016case | |
United States | |
Loss Contingencies [Line Items] | |
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | 500 |
Europe | |
Loss Contingencies [Line Items] | |
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | 50 |
Commitments and Contingencies_4
Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Asset retirement obligation | $ 14 | $ 14 |
Held-for-sale | ||
Loss Contingencies [Line Items] | ||
Liabilities held for sale | 9 | |
Accrued expenses and other current liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligation | 10 | 2 |
Deferred credits and other liabilities | ||
Loss Contingencies [Line Items] | ||
Asset retirement obligation | $ 4 | $ 12 |
Commitments and Contingencies_5
Commitments and Contingencies - Warranty Matters (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Loss Contingencies [Line Items] | |
Warranty term | 1 year |
Commitments and Contingencies_6
Commitments and Contingencies - Warranty Accrual Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 62 | $ 54 | $ 45 |
Accruals and revisions to estimates | 52 | 28 | 32 |
Settlements | (44) | (21) | (23) |
Foreign currency | (1) | 1 | 0 |
Balance at end of period | $ 69 | $ 62 | $ 54 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 126 | $ 122 | $ 131 |
Finance lease expense (amortization of right-of-use assets) | 5 | 2 | 1 |
Short-term lease expense | 8 | 6 | 13 |
Variable lease expense | 6 | 24 | 26 |
Sublease income | (4) | (1) | (1) |
Total lease expense | $ 141 | $ 153 | $ 170 |
Weighted average remaining lease term, operating leases | 6 years 1 month 28 days | 5 years 4 months 17 days | |
Weighted average remaining lease term, finance leases | 3 years 4 months 6 days | 3 years 11 months 19 days | |
Weighted average discount rate, operating leases | 3.42% | 3.63% | |
Weighted average discount rate, finance leases | 2.66% | 3.07% |
Leases - Other Leases (Details)
Leases - Other Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 126 | $ 143 | $ 160 |
Financing cash flows from finance leases | 4 | 2 | 1 |
Right-of-use asset operating lease liability | 94 | 98 | 170 |
Right-of-use asset finance lease liability | $ 6 | $ 7 | $ 0 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 319 | $ 328 |
Accrued expenses and other current liabilities | 92 | 95 |
Deferred credits and other liabilities | 240 | 241 |
Total operating lease liabilities | 332 | 336 |
Property, plant and equipment, cost | 24 | 13 |
Accumulated depreciation and amortization | $ (10) | $ (6) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Total finance lease right-of-use assets | $ 14 | $ 7 |
Short-term debt, including current maturities of long-term debt | 4 | 3 |
Long-term debt | 9 | 5 |
Total finance lease liabilities | $ 13 | $ 8 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Deferred credits and other liabilities | Deferred credits and other liabilities |
Finance lease, liability, current, statement of financial position [Extensible List] | Short-term debt, including current maturities of long-term debt | Short-term debt, including current maturities of long-term debt |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Long-term debt | Long-term debt |
Leases - Maturity Schedules (De
Leases - Maturity Schedules (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
2022 | $ 100 | |
2023 | 79 | |
2024 | 53 | |
2025 | 37 | |
2026 | 25 | |
Thereafter | 68 | |
Total future undiscounted lease payments | 362 | |
Less: imputed interest | (30) | |
Total reported lease liability | 332 | $ 336 |
Finance leases | ||
2022 | 5 | |
2023 | 4 | |
2024 | 3 | |
2025 | 2 | |
2026 | 0 | |
Thereafter | 0 | |
Total future undiscounted lease payments | 14 | |
Less: imputed interest | (1) | |
Total reported lease liability | $ 13 | $ 8 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2006 Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock remain authorized for delivery (in shares) | 2,700,000 | ||
Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted shares vested | $ 15 | $ 11 | $ 5 |
Compensation expense | 18 | $ 13 | $ 19 |
Unrecognized compensation expense | $ 18 | ||
Unrecognized compensation expense period | 2 years | ||
Directors | Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period for restricted common stock | 3 years | ||
Directors | Share-Settled PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restriction period for restricted common stock | 3 years | ||
Tranche One | Directors | Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Tranche Two | Directors | Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Tranche Three | Directors | Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% |
Share-Based Compensation - Cash
Share-Based Compensation - Cash-Settled Awards (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash-settled share based units (in shares) | 4,402,738 | 1,878,220 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash-settled share based units (in shares) | 1,451,422 | 1,878,220 | |
Share-based compensation liability | $ 6,000,000 | $ 3,000,000 | |
Performance Share Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash-settled share based units (in shares) | 2,951,316 | 0 | |
Share-based compensation liability | $ 10,000,000 | $ 0 | |
Cash Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense - cash-settled (net of tax) | 14,000,000 | 2,000,000 | $ 3,000,000 |
Cash paid for cash-settled awards | 9,000,000 | $ 4,000,000 | $ 7,000,000 |
Unrecognized compensation expense | $ 30,000,000 | ||
Unrecognized compensation expense period | 2 years | ||
Cash Settled Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of potential pay out, cash-settled award base on performance | 0.00% | ||
Cash Settled Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of potential pay out, cash-settled award base on performance | 200.00% |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Restricted Shares (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-Settled RSUs | |
Shares | |
Nonvested Restricted Shares, Beginning Balance (in shares) | shares | 2,118,605 |
Granted (in shares) | shares | 2,132,148 |
Vested (in shares) | shares | (862,999) |
Forfeited (in shares) | shares | (270,696) |
Nonvested Restricted Shares, Ending Balance (in shares) | shares | 3,117,058 |
Weighted Avg. Grant Date Fair Value | |
Nonvested (in dollars per share) | $ / shares | $ 26 |
Granted (in dollars per share) | $ / shares | 10.91 |
Vested (in dollars per share) | $ / shares | 31.86 |
Forfeited (in dollars per share) | $ / shares | 15.73 |
Nonvested (in dollars per share) | $ / shares | $ 13.94 |
Share-Settled PSUs | |
Shares | |
Nonvested Restricted Shares, Beginning Balance (in shares) | shares | 527,105 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (57,794) |
Forfeited (in shares) | shares | (141,015) |
Nonvested Restricted Shares, Ending Balance (in shares) | shares | 328,296 |
Weighted Avg. Grant Date Fair Value | |
Nonvested (in dollars per share) | $ / shares | $ 36.37 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 49.18 |
Forfeited (in dollars per share) | $ / shares | 46.14 |
Nonvested (in dollars per share) | $ / shares | $ 24.72 |
Share-Based Compensation - Vest
Share-Based Compensation - Vested Restricted Shares (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted shares vested | $ 1 | $ 4 | $ 8 |
Share-Settled RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted shares vested | 15 | 11 | 5 |
Share-settled PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of restricted shares vested | $ 3 | $ 0 | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Apr. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2015 | Dec. 31, 2020 | Oct. 01, 2018 | Feb. 28, 2017 |
Class of Stock [Line Items] | |||||||
Authorized shares (in shares) | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||
Preferred stock, Outstanding shares (in shares) | 0 | 0 | |||||
2015 Program | |||||||
Class of Stock [Line Items] | |||||||
Authorized amount | $ 550,000,000 | ||||||
Stock repurchase program, period in force | 3 years | ||||||
Remaining amount authorized to be repurchased | $ 112,000,000 | ||||||
2017 Program | |||||||
Class of Stock [Line Items] | |||||||
Authorized amount | $ 400,000,000 | ||||||
Remaining amount authorized to be repurchased | $ 231,000,000 | ||||||
Shares repurchased (in shares) | 0 | ||||||
Class A | |||||||
Class of Stock [Line Items] | |||||||
Authorized common stock (in shares) | 175,000,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Shares converted (in shares) | 3,485,215 | 20,308,454 | |||||
Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Shares converted (in shares) | 3,485,215 | 20,308,454 | |||||
Nonvoting Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Authorized common stock (in shares) | 25,000,000 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock Outstanding (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Treasury stock (in shares) | 14,592,888 | 14,592,888 | ||
Class A | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued, beginning balance (in shares) | 75,714,163 | 75,714,163 | 71,727,061 | 71,675,379 |
Issuance (repurchased) pursuant to benefit plans (in shares) | 1,021,223 | 640,112 | 113,916 | |
Restricted stock forfeited and withheld for taxes (in shares) | (330,652) | (138,225) | (70,672) | |
Exercised (in shares) | 0 | 0 | 8,438 | |
Class B common stock converted to Class A common stock (in shares) | 20,308,454 | 3,485,215 | 0 | |
Shares issued, ending balance (in shares) | 96,713,188 | 75,714,163 | 71,727,061 | |
Treasury stock (in shares) | 14,592,888 | 14,592,888 | 14,592,888 | |
Total shares outstanding (in shares) | 82,120,300 | 61,121,275 | 57,134,173 | |
Class B | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued, beginning balance (in shares) | 20,308,454 | 20,308,454 | 23,793,669 | 23,793,669 |
Issuance (repurchased) pursuant to benefit plans (in shares) | 0 | 0 | 0 | |
Restricted stock forfeited and withheld for taxes (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Class B common stock converted to Class A common stock (in shares) | (20,308,454) | (3,485,215) | 0 | |
Shares issued, ending balance (in shares) | 0 | 20,308,454 | 23,793,669 | |
Treasury stock (in shares) | 0 | 0 | 0 | |
Total shares outstanding (in shares) | 0 | 20,308,454 | 23,793,669 |
Shareholders' Equity - Accumula
Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 181 | ||
Ending Balance | 396 | $ 181 | |
Other comprehensive income (loss) attributable to noncontrolling interests, net of tax | (7) | 14 | $ (10) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (744) | (711) | (692) |
Ending Balance | (595) | (744) | (711) |
Foreign currency translation adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (395) | (369) | (395) |
Other comprehensive income (loss) before reclassifications | (76) | (26) | 23 |
Income tax benefit (provision) | 0 | 0 | 3 |
Ending Balance | (471) | (395) | (369) |
Defined benefit plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | (353) | (342) | (297) |
Other comprehensive income (loss) before reclassifications | 221 | (8) | (46) |
Reclassification from other comprehensive income (loss) | 14 | (5) | 7 |
Income tax benefit (provision) | (8) | 2 | (6) |
Ending Balance | (126) | (353) | (342) |
Cash flow hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning Balance | 4 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 4 | 1 | |
Reclassification from other comprehensive income (loss) | (8) | 0 | (1) |
Ending Balance | $ 2 | $ 4 | $ 0 |
Earnings (Loss) per Share - Sum
Earnings (Loss) per Share - Summary of Earnings (Loss) per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income (loss) attributable to Tenneco Inc. | $ 35 | $ (1,521) | $ (334) |
Basic earnings (loss) per share — | |||
Average shares of common stock outstanding (in shares) | 82,218,480 | 81,378,474 | 80,904,060 |
Earnings (loss) per average share of common stock (in dollars per share) | $ 0.43 | $ (18.69) | $ (4.12) |
Diluted earnings (loss) per share — | |||
Average shares of common stock outstanding (in shares) | 82,218,480 | 81,378,474 | 80,904,060 |
Effect of dilutive securities: | |||
Average shares of common stock outstanding including dilutive securities (in shares) | 83,600,027 | 81,378,474 | 80,904,060 |
Earnings (loss) per average share of common stock (in dollars per share) | $ 0.42 | $ (18.69) | $ (4.12) |
Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share (in shares) | 1,787,410 | 2,346,904 | 1,868,274 |
Restricted Stock | |||
Effect of dilutive securities: | |||
Restricted stock RSUs, PSUs and stock options (in shares) | 1,381,547 | 0 | 0 |
Earnings (Loss) per Share - Add
Earnings (Loss) per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock options (in shares) | 1,787,410 | 2,346,904 | 1,868,274 |
Segment and Geographic Area I_3
Segment and Geographic Area Information - Additional Information (Details) - 12 months ended Dec. 31, 2021 | segment | Segment |
Segment Reporting [Abstract] | ||
Number of operating segments | 4 | 4 |
Segment and Geographic Area I_4
Segment and Geographic Area Information - Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Line Items] | |||
Sales | $ 18,035 | $ 15,379 | $ 17,450 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 57 | 47 | 43 |
Depreciation and amortization | (593) | (639) | (673) |
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 556 | (724) | 121 |
Interest expense | (274) | (277) | (322) |
Income tax (expense) benefit | (182) | (459) | (19) |
Net income (loss) | 100 | (1,460) | (220) |
Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 2,991 | ||
Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 2,908 | ||
Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 8,135 | ||
Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 4,001 | ||
Intersegment revenues | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
Reportable Segments | |||
Segment Reporting [Line Items] | |||
Sales | 18,035 | 15,379 | 17,450 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 57 | 47 | 43 |
EBITDA including noncontrolling interests by Segments: | 1,424 | 130 | 1,137 |
Reportable Segments | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 2,991 | 2,725 | 3,167 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 12 | 9 | 7 |
EBITDA including noncontrolling interests by Segments: | 375 | 155 | 184 |
Reportable Segments | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 2,908 | 2,502 | 3,100 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 1 | 1 | 4 |
EBITDA including noncontrolling interests by Segments: | 119 | (634) | 114 |
Reportable Segments | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 8,135 | 6,721 | 7,121 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 0 | 0 | 0 |
EBITDA including noncontrolling interests by Segments: | 584 | 440 | 582 |
Reportable Segments | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 4,001 | 3,431 | 4,062 |
Equity in earnings (losses) of nonconsolidated affiliates, net of tax | 44 | 37 | 32 |
EBITDA including noncontrolling interests by Segments: | 346 | 169 | 257 |
Reportable Segments | Intersegment revenues | |||
Segment Reporting [Line Items] | |||
Sales | 348 | 298 | 358 |
Reportable Segments | Intersegment revenues | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 44 | 31 | 40 |
Reportable Segments | Intersegment revenues | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 92 | 105 | 158 |
Reportable Segments | Intersegment revenues | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 19 | 21 | 0 |
Reportable Segments | Intersegment revenues | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 193 | 141 | 160 |
Reclass & Elims | Intersegment revenues | |||
Segment Reporting [Line Items] | |||
Sales | (348) | (298) | (358) |
Corporate | |||
Segment Reporting [Line Items] | |||
EBITDA including noncontrolling interests by Segments: | $ (275) | $ (215) | $ (343) |
Segment and Geographic Area I_5
Segment and Geographic Area Information - Revenue Percent by Major Customers (Details) - Net sales - Customer | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
General Motors Company | |||
Revenue, Major Customer [Line Items] | |||
Customer accounted for ten percent or more of net sales | 11.00% | 11.00% | 11.00% |
Ford Motor Company | |||
Revenue, Major Customer [Line Items] | |||
Customer accounted for ten percent or more of net sales | 10.00% | 10.00% | 10.00% |
Segment and Geographic Area I_6
Segment and Geographic Area Information - Geographic Information Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Geographical Information [Line Items] | |||
Sales | $ 18,035 | $ 15,379 | $ 17,450 |
Long-lived assets | 3,980 | 4,172 | |
United States | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 6,159 | 5,151 | 6,203 |
Long-lived assets | 954 | 1,061 | |
China | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 3,219 | 2,817 | 2,377 |
Long-lived assets | 738 | 713 | |
Germany | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 2,202 | 1,793 | 2,227 |
Long-lived assets | 483 | 532 | |
Mexico | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 1,014 | 900 | 959 |
Long-lived assets | 243 | 247 | |
Poland | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 988 | 822 | 925 |
Long-lived assets | 313 | 335 | |
India | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 617 | 414 | 475 |
Long-lived assets | 165 | 160 | |
Belgium | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 501 | 437 | 236 |
Long-lived assets | 47 | 54 | |
United Kingdom | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 305 | 361 | 568 |
Long-lived assets | 126 | 114 | |
Other Foreign | |||
Schedule Of Geographical Information [Line Items] | |||
Sales | 3,030 | 2,684 | $ 3,480 |
Long-lived assets | $ 911 | $ 956 |
Segment and Geographic Area I_7
Segment and Geographic Area Information - Capital Expenditures (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | $ 387 | $ 394 | $ 744 |
Total Reportable Segments | Motorparts | |||
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | 39 | 23 | 61 |
Total Reportable Segments | Performance Solutions | |||
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | 84 | 89 | 199 |
Total Reportable Segments | Clean Air | |||
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | 129 | 109 | 208 |
Total Reportable Segments | Powertrain | |||
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | 128 | 159 | 250 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Cash payments for property, plant and equipment | $ 7 | $ 14 | $ 26 |
Segment and Geographic Area I_8
Segment and Geographic Area Information - Revenue from External Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Line Items] | |||
Sales | $ 18,035 | $ 15,379 | $ 17,450 |
Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 2,991 | ||
Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 2,908 | ||
Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 8,135 | ||
Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 4,001 | ||
North America | |||
Segment Reporting [Line Items] | |||
Sales | 7,197 | 6,283 | 7,425 |
North America | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 1,868 | 1,798 | 2,018 |
North America | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 893 | 768 | 1,008 |
North America | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 3,210 | 2,639 | 3,031 |
North America | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 1,226 | 1,078 | 1,368 |
Europe, Middle East, Africa and South America | |||
Segment Reporting [Line Items] | |||
Sales | 6,557 | 5,518 | 6,764 |
Europe, Middle East, Africa and South America | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 900 | 749 | 932 |
Europe, Middle East, Africa and South America | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 1,254 | 1,109 | 1,421 |
Europe, Middle East, Africa and South America | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 2,383 | 1,976 | 2,388 |
Europe, Middle East, Africa and South America | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 2,020 | 1,684 | 2,023 |
Asia Pacific | |||
Segment Reporting [Line Items] | |||
Sales | 4,281 | 3,578 | 3,261 |
Asia Pacific | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 223 | 178 | 217 |
Asia Pacific | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 761 | 625 | 671 |
Asia Pacific | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 2,542 | 2,106 | 1,702 |
Asia Pacific | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 755 | 669 | 671 |
OE Value-add | |||
Segment Reporting [Line Items] | |||
Sales | 4,291 | 3,355 | 3,027 |
OE Value-add | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
OE Value-add | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
OE Value-add | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 4,291 | 3,355 | 3,027 |
OE Value-add | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
OE Substrate | |||
Segment Reporting [Line Items] | |||
Sales | 10,677 | 9,243 | 11,203 |
OE Substrate | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
OE Substrate | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 2,832 | 2,446 | 3,047 |
OE Substrate | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 3,844 | 3,366 | 4,094 |
OE Substrate | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | 4,001 | 3,431 | 4,062 |
Aftermarket | |||
Segment Reporting [Line Items] | |||
Sales | 3,067 | 2,781 | 3,220 |
Aftermarket | Motorparts | |||
Segment Reporting [Line Items] | |||
Sales | 2,991 | 2,725 | 3,167 |
Aftermarket | Performance Solutions | |||
Segment Reporting [Line Items] | |||
Sales | 76 | 56 | 53 |
Aftermarket | Clean Air | |||
Segment Reporting [Line Items] | |||
Sales | 0 | 0 | 0 |
Aftermarket | Powertrain | |||
Segment Reporting [Line Items] | |||
Sales | $ 0 | $ 0 | $ 0 |
Related Party Transactions - (N
Related Party Transactions - (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||||
Redemption value remeasurement adjustments | $ 11 | $ 10 | $ 58 | |
Related Party Transaction [Line Items] | ||||
Redemption value remeasurement adjustments | $ 11 | 10 | 58 | |
Icahn Enterprises L.P. | ||||
Related Party Transaction [Line Items] | ||||
Net sales | $ 71 | 144 | 180 | |
Royalty and other income (expense) | 2 | 5 | 7 | |
Receivables | 47 | |||
Payables and accruals | 9 | |||
Icahn Enterprises L.P. | Allocation Of Certain Tax Credits | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 3 | |||
PSC Metals, Inc | ||||
Related Party Transaction [Line Items] | ||||
Royalty and other income (expense) | $ 2 | $ 5 | $ 7 | |
Tenneco | Class A | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 5.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Merger Agreement - Subsequent Event $ / shares in Units, $ in Millions | Feb. 22, 2022USD ($)$ / shares |
Subsequent Event [Line Items] | |
Right to receive cash (in dollars per share) | $ / shares | $ 20 |
Merger termination fee | $ | $ 54 |
SCHEDULE_II__ VALUATION AND Q_2
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts And Notes Receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 32 | $ 28 | $ 17 |
Charged to Costs and Expenses | 3 | 3 | 14 |
Charged to Other Accounts | 0 | 1 | 0 |
Deductions | 9 | 0 | 3 |
Balance at End of Year | 26 | 32 | 28 |
Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,428 | 762 | 554 |
Charged to Costs and Expenses | 175 | 605 | 36 |
Charged to Other Accounts | 96 | 0 | 0 |
Deductions | (110) | 61 | 172 |
Balance at End of Year | $ 1,589 | $ 1,428 | 762 |
Federal-Mogul | Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions | $ 142 |