Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017 | |
Document And Entity Information [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Trading Symbol | TEN |
Entity Registrant Name | TENNECO INC |
Entity Central Index Key | 1,024,725 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | Feb. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues | ||||||||||||
Net sales and operating revenues | $ 2,391 | $ 2,274 | $ 2,317 | $ 2,292 | $ 2,155 | $ 2,096 | $ 2,212 | $ 2,136 | $ 9,274 | $ 8,599 | $ 8,181 | |
Costs and expenses | ||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 2,020 | 1,911 | 1,949 | 1,929 | 1,792 | 1,741 | 1,814 | 1,769 | 7,809 | 7,116 | 6,821 | |
Goodwill impairment charge | 11 | 11 | 0 | |||||||||
Engineering, research, and development | 158 | 154 | 146 | |||||||||
Selling, general, and administrative | 636 | 513 | 482 | |||||||||
Depreciation and amortization of other intangibles | 224 | 212 | 203 | |||||||||
Costs and expenses | 8,838 | 7,995 | 7,652 | |||||||||
Other expense | ||||||||||||
Loss on sale of receivables | (5) | (5) | (4) | |||||||||
Other expense | (14) | (83) | (17) | |||||||||
Total other expense | (19) | (88) | (21) | |||||||||
Earnings before interest expense, income taxes, and noncontrolling interests | 135 | 134 | 27 | 121 | 71 | 150 | 171 | 124 | 417 | 516 | 508 | |
Interest expense | 73 | 92 | 67 | |||||||||
Earnings before income taxes and noncontrolling interests | 344 | 424 | 441 | |||||||||
Income tax expense | 70 | 0 | 146 | |||||||||
Net income | 274 | 424 | 295 | |||||||||
Less: Net income attributable to noncontrolling interests | 67 | 68 | 54 | |||||||||
Net income attributable to Tenneco Inc. | $ 68 | $ 83 | $ (3) | $ 59 | $ 38 | $ 179 | $ 82 | $ 57 | $ 207 | $ 356 | $ 241 | |
Weighted average shares of common stock outstanding- | ||||||||||||
Basic (in shares) | 52,796,184 | 55,939,135 | 59,678,309 | |||||||||
Diluted (in shares) | 53,026,911 | 56,407,436 | 60,193,150 | |||||||||
Basic earnings (loss) per share of common stock (in dollars per share) | $ 1.33 | $ 1.57 | $ (0.05) | $ 1.10 | $ 0.70 | $ 3.22 | $ 1.44 | $ 1 | $ 3.93 | $ 6.36 | $ 4.05 | |
Diluted earnings (loss) per share of common stock (in dollars per share) | 1.33 | $ 1.57 | $ (0.05) | $ 1.09 | $ 0.69 | $ 3.19 | $ 1.43 | $ 0.99 | 3.91 | $ 6.31 | $ 4.01 | |
Cash dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 1 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) attributable to Tenneco Inc. | $ 68 | $ 59 | $ 38 | $ 57 | $ 207 | $ 356 | $ 241 |
Less: Net income attributable to noncontrolling interests | 67 | 68 | 54 | ||||
Net Income | 274 | 424 | 295 | ||||
Translation of foreign currency statements attributable to Tenneco | 97 | (41) | (131) | ||||
Translation of foreign currency statements attributable to Noncontrolling Interest | 2 | (4) | (4) | ||||
Translation of foreign currency statements | 99 | (45) | (135) | ||||
Additional Liability for Pension and Postretirement Benefits, net of tax attributable to Tenneco | 27 | 41 | 11 | ||||
Additional liability for pension and postretirement benefits, net of tax | 27 | 41 | 11 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | 620 | 464 | 620 | 464 | |||
Ending balance | 742 | 620 | 742 | 620 | 464 | ||
Other Comprehensive Income (Loss) | 126 | (4) | (124) | ||||
Comprehensive Income attributable to Tenneco | 331 | 356 | 121 | ||||
Comprehensive Income attributable to Noncontrolling Interest | 69 | 64 | 50 | ||||
Comprehensive (Loss) Income | 400 | 420 | 171 | ||||
Tenneco Inc. | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Other Comprehensive Income (Loss) | 124 | (120) | |||||
AOCI Tenneco, Inc | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (665) | (665) | (665) | (665) | (545) | ||
Ending balance | (541) | (665) | (541) | (665) | (665) | ||
Other Comprehensive Income (Loss) | 124 | (120) | |||||
Tenneco, Inc. Cumulative Translation Adjustment | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (338) | (297) | (338) | (297) | (166) | ||
Reclassification | 97 | (41) | (131) | ||||
Ending balance | (241) | (338) | (241) | (338) | (297) | ||
Tenneco, Inc. Additional Liability for Pension and Postretirement Benefits | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (327) | (368) | (327) | (368) | (379) | ||
Reclassification | 27 | 41 | 11 | ||||
Ending balance | (300) | (327) | (300) | (327) | (368) | ||
Noncontrolling Interests | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | 47 | 39 | 47 | 39 | 40 | ||
Ending balance | 46 | 47 | 46 | 47 | 39 | ||
Other Comprehensive Income (Loss) | 2 | (4) | (4) | ||||
AOCI Noncontrolling Interests | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (5) | (1) | (5) | (1) | |||
Ending balance | (3) | (5) | (3) | (5) | (1) | ||
Noncontrolling Interests Cumulative Translation Adjustment | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (5) | (1) | (5) | (1) | 3 | ||
Reclassification | 2 | (4) | (4) | ||||
Ending balance | (3) | (5) | (3) | (5) | (1) | ||
Total | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (670) | (666) | (670) | (666) | |||
Ending balance | (544) | (670) | (544) | (670) | (666) | ||
Total Cumulative Translation Adjustment | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | (343) | (298) | (343) | (298) | (163) | ||
Reclassification | 99 | (45) | (135) | ||||
Ending balance | (244) | (343) | (244) | (343) | (298) | ||
Total Additional Liability for Pension and Postretirement Benefits | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Beginning balance | $ (327) | $ (368) | (327) | (368) | (379) | ||
Reclassification | 27 | 41 | 11 | ||||
Ending balance | $ (300) | $ (327) | $ (300) | $ (327) | $ (368) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 315 | $ 347 |
Restricted cash | 3 | 2 |
Receivables- | ||
Customer notes and accounts, net | 1,294 | 1,272 |
Other | 27 | 22 |
Inventories | 869 | 730 |
Prepayments and other | 291 | 229 |
Total current assets | 2,799 | 2,602 |
Other assets: | ||
Long-term receivables, net | 9 | 9 |
Goodwill | 49 | 57 |
Intangibles, net | 22 | 19 |
Deferred income taxes | 204 | 199 |
Other | 144 | 103 |
Other Assets | 428 | 387 |
Plant, property, and equipment, at cost | 4,008 | 3,548 |
Less-Accumulated depreciation and amortization | (2,393) | (2,191) |
Plant, property and equipment, net | 1,615 | 1,357 |
Total Assets | 4,842 | 4,346 |
Current liabilities: | ||
Short-term debt (including current maturities of long-term debt) | 83 | 90 |
Accounts payable | 1,705 | 1,501 |
Accrued taxes | 45 | 39 |
Accrued interest | 14 | 15 |
Accrued liabilities | 287 | 285 |
Other | 132 | 43 |
Total current liabilities | 2,266 | 1,973 |
Long-term debt | 1,358 | 1,294 |
Deferred income taxes | 11 | 7 |
Pension and postretirement benefits | 268 | 273 |
Deferred credits and other liabilities | 155 | 139 |
Commitments and contingencies | 0 | 0 |
Total liabilities | 4,058 | 3,686 |
Redeemable noncontrolling interests | 42 | 40 |
Tenneco Inc. Shareholders' equity: | ||
Common stock | 1 | 1 |
Premium on common stock and other capital surplus | 3,112 | 3,098 |
Accumulated other comprehensive loss | (541) | (665) |
Retained earnings (accumulated deficit) | (946) | (1,100) |
Shareholders Equity Before Deduction Of Treasury Stock, Total | 1,626 | 1,334 |
Less-Shares held as treasury stock, at cost | 930 | 761 |
Total Tenneco Inc. shareholders' equity | 696 | 573 |
Noncontrolling interests | 46 | 47 |
Total equity | 742 | 620 |
Total liabilities, redeemable noncontrolling interests and equity | $ 4,842 | $ 4,346 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net Income | $ 274 | $ 424 | $ 295 |
Adjustments to reconcile net income to cash provided by operating activities- | |||
Goodwill impairment charge | 11 | 0 | |
Depreciation and amortization of other intangibles | 224 | 212 | 203 |
Deferred income taxes | (10) | (80) | (2) |
Stock-based compensation | 14 | 14 | 15 |
Loss on sale of assets | 5 | 4 | 4 |
Changes in components of working capital- | |||
Increase in receivables | (81) | (325) | (203) |
Increase in inventories | (96) | (57) | (36) |
(Increase) decrease in prepayments and other current assets | (39) | (8) | 37 |
Increase in payables | 129 | 114 | 90 |
Increase (decrease) in accrued taxes | 4 | 2 | (1) |
(Decrease) increase in accrued interest | (2) | 12 | 1 |
Increase (decrease) in other current liabilities | 68 | 26 | (10) |
Change in long-term assets | (22) | 6 | 3 |
Change in long-term liabilities | 34 | 33 | 8 |
Other | 4 | (3) | 11 |
Net cash provided by operating activities | 517 | 374 | 415 |
Investing Activities | |||
Proceeds from sale of assets | 8 | 6 | 4 |
Proceeds from sale of equity interest | 9 | ||
Cash payments for plant, property, and equipment | (394) | (325) | (286) |
Cash payments for software related intangible assets | (25) | (20) | (23) |
Proceeds from deferred purchase price of factored receivables | 112 | 110 | 113 |
Other | (10) | ||
Net cash used by investing activities | (300) | (229) | (192) |
Financing Activities | |||
Cash dividends | (53) | ||
Retirement of long-term debt | (19) | (531) | (37) |
Issuance of long-term debt | 137 | 509 | 1 |
Debt issuance costs of long-term debt | (8) | (9) | (1) |
Purchase of common stock under the share repurchase program | (169) | (225) | (213) |
(Repurchase) issuance of common stock | (1) | 13 | 1 |
(Decrease) increase in bank overdrafts | (7) | 10 | (22) |
Net (decrease) increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable | (67) | 202 | 102 |
Net increase in short-term borrowings secured by accounts receivable | 30 | ||
Distribution to noncontrolling interest partners | (64) | (55) | (44) |
Net cash (used) provided by financing activities | (251) | (86) | (183) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 3 | 2 | (37) |
(Decrease) increase in cash, cash equivalents and restricted cash | (31) | 61 | 3 |
Cash, cash equivalents and restricted cash, January 1 | 349 | 288 | 285 |
Cash, cash equivalents and restricted cash, December 31 | 318 | 349 | 288 |
Supplemental Cash Flow Information | |||
Cash paid during the year for interest | 78 | 76 | 68 |
Cash paid during the year for income taxes (net of refunds) | 95 | 113 | 105 |
Non-cash Investing and Financing Activities | |||
Period end balance of trade payables for plant, property, and equipment | 59 | 68 | 50 |
Deferred purchase price of receivables factored in period | $ 114 | $ 109 | $ 113 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGE IN SHARE HOLDERS EQUITY - USD ($) $ in Millions | Total | Common Stock | Premium on Common Stock and Other Capital Surplus | AOCI Tenneco, Inc | Retained Earnings (Accumulated Deficit) | Less - Common Stock Held as Treasury Stock, at Cost | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2014 | 64,454,248 | 3,244,692 | |||||
Beginning balance at Dec. 31, 2014 | $ 1 | $ 3,059 | $ (545) | $ (1,697) | $ 323 | $ 40 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Premium on common stock issued pursuant to benefit plans | 22 | ||||||
Other comprehensive gain (loss) | $ (124) | (120) | (4) | ||||
Issued pursuant to benefit plans (in shares) | 335,766 | ||||||
Net income | 22 | ||||||
Net income attributable to Tenneco Inc. | 241 | 241 | |||||
Purchase of common stock through stock repurchase program (in shares) | 4,228,633 | ||||||
Other comprehensive loss | (3) | ||||||
Purchase of common stock through stock repurchase program | $ 213 | ||||||
Stock options exercised (in shares) | 277,118 | ||||||
Dividends declared | (20) | ||||||
Ending balance (in shares) at Dec. 31, 2015 | 65,067,132 | 7,473,325 | |||||
Ending balance at Dec. 31, 2015 | 464 | $ 1 | 3,081 | (665) | (1,456) | $ 536 | 39 |
Total Tenneco Inc. shareholders' equity | 425 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Premium on common stock issued pursuant to benefit plans | 17 | ||||||
Other comprehensive gain (loss) | (4) | (4) | |||||
Issued pursuant to benefit plans (in shares) | 292,514 | ||||||
Net income | 32 | ||||||
Net income attributable to Tenneco Inc. | 356 | 356 | |||||
Purchase of common stock through stock repurchase program (in shares) | 4,182,613 | ||||||
Other comprehensive loss | (2) | ||||||
Purchase of common stock through stock repurchase program | $ 225 | ||||||
Stock options exercised (in shares) | 532,284 | ||||||
Dividends declared | (22) | ||||||
Ending balance (in shares) at Dec. 31, 2016 | 65,891,930 | 11,655,938 | |||||
Ending balance at Dec. 31, 2016 | 620 | $ 1 | 3,098 | (665) | (1,100) | $ 761 | 47 |
Total Tenneco Inc. shareholders' equity | 573 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Premium on common stock issued pursuant to benefit plans | 14 | ||||||
Other comprehensive gain (loss) | 126 | 124 | 2 | ||||
Issued pursuant to benefit plans (in shares) | 34,760 | ||||||
Net income | 31 | ||||||
Net income attributable to Tenneco Inc. | 207 | 207 | |||||
Purchase of common stock through stock repurchase program (in shares) | 2,936,950 | ||||||
Restricted shares forfeited (in shares) | (126,682) | ||||||
Other comprehensive loss | (1) | ||||||
Cash dividends declared | (53) | ||||||
Purchase of common stock through stock repurchase program | $ 169 | ||||||
Stock options exercised (in shares) | 233,501 | ||||||
Dividends declared | (31) | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 66,033,509 | 14,592,888 | |||||
Ending balance at Dec. 31, 2017 | 742 | $ 1 | $ 3,112 | $ (541) | $ (946) | $ 930 | $ 46 |
Total Tenneco Inc. shareholders' equity | $ 696 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | 1. Summary of Accounting Policies Consolidation and Presentation Our consolidated financial statements include all majority-owned subsidiaries. We have eliminated intercompany transactions. We have evaluated all subsequent events through the date our financial statements were issued. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, among others, allowances for doubtful receivables, promotional and product returns, income taxes, pension and postretirement benefit plans, and contingencies. These items are covered in more detail in the accompanying Footnotes (See Note 1, Note 7, Note 10, and Note 12). Actual results could differ from those estimates. Redeemable Noncontrolling Interests We have noncontrolling interests in five joint ventures with redemption features that could require us to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of our subsidiaries. We do not believe that it is probable that the redemption features in any of these joint venture agreements will be triggered. However, the redemption of these shares is not solely within our control. Accordingly, the related noncontrolling interests are presented as “Redeemable noncontrolling interests” in the temporary equity section of our consolidated balance sheets. The following is a rollforward of activity in our redeemable noncontrolling interests for the years ending December 31, 2017, 2016 and 2015, respectively: 2017 2016 2015 (Millions) Balance January 1 $ 40 $ 41 $ 34 Net income attributable to redeemable noncontrolling interests 36 36 32 Other comprehensive income (loss) 3 (2 ) (1 ) Dividends declared (37 ) (35 ) (24 ) Balance December 31 $ 42 $ 40 $ 41 Inventories At December 31, 2017 and 2016, inventory by major classification was as follows: 2017 2016 (Millions) Finished goods $ 349 $ 284 Work in process 268 245 Raw materials 178 137 Materials and supplies 74 64 $869 $730 Our inventories are stated at the lower of cost or market value using the first-in, first-out Goodwill and Intangibles, net We evaluate goodwill for impairment in the fourth quarter of each year, or more frequently if events indicate it is warranted. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2017-04, two-step one-step We compare the estimated fair value of our reporting units with goodwill to the carrying value of the unit’s net assets to determine if a goodwill impairment exists. We estimate the fair value of each reporting unit using the income approach which is based on the present value of estimated future cash flows. The income approach is dependent on a number of factors, including estimates of market trends, forecasted revenues and expenses, capital expenditures, weighted average cost of capital and other variables. A separate discount rate derived by a combination of published sources, internal estimates and weighted based on our debt to equity ratio, was used to calculate the discounted cash flows for each of our reporting units. These estimates are based on assumptions that we believe to be reasonable, but which are inherently uncertain and outside of the control of management. If the carrying value of our reporting units exceeds their current fair value as determined based on discounted future cash flows of the related business, the goodwill is considered impaired. As a result, a goodwill impairment loss would be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. As a result of our goodwill impairment evaluation in the fourth quarter of 2017, we determined that the estimated fair value of the Europe and South America Ride Performance reporting unit was lower than its carrying value. Accordingly, we recorded a goodwill impairment charge of $11 million in the fourth quarter. We reached this determination based on updated long-term projections for the Europe and South America Ride Performance reporting unit provided by the Company’s annual budgeting and strategic planning process, which is completed in the fourth quarter. The 2017 annual budgeting and strategic planning process indicated that the reporting unit’s recovery period will be longer than previously expected. In the fourth quarter of 2017, the estimated fair value of our other reporting units substantially exceeded the carrying value of their assets and liabilities as of the testing date for goodwill impairment. At December 31, 2017, accumulated goodwill impairment charges include $306 million related to our North America Ride Performance reporting unit, $43 million related to our Europe and South America Ride Performance reporting unit and $11 million related to our Asia Pacific Ride Performance reporting unit. In the fourth quarter of 2016 and 2015, the estimated fair value of each of our reporting units exceeded the carrying value of their assets and liabilities as of the testing date for goodwill impairment. The changes in the net carrying amount of goodwill for the years ended December 31, 2017, 2016 and 2015 were as follows: Clean Air Ride Aftermarket Total (Millions) Balance at December 31, 2015 $ 14 $ 22 $ 24 $ 60 Translation Adjustment (1 ) (2 ) — (3 ) Balance at December 31, 2016 13 20 24 57 Translation Adjustment 2 — 1 3 Goodwill Impairment Charge — (7 ) (4 ) (11 ) Balance at December 31, 2017 $ 15 $ 13 $ 21 $ 49 We have capitalized certain intangible assets, primarily technology rights, trademarks and patents, based on their estimated fair value at the date we acquired them. We amortize our finite useful life intangible assets on a straight-line basis over periods ranging from 3 to 50 years. Amortization of intangibles amounted to $3 million in both 2017 and 2016, and $5 million in 2015, and are included in the statements of income caption “Depreciation and amortization of intangibles.” The carrying amount and accumulated amortization of our finite useful life intangible assets were as follows: December 31, 2017 December 31, 2016 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization (Millions) (Millions) Customer contract $ 8 $ (5 ) $ 8 $ (5 ) Patents 1 (1 ) 1 (1 ) Technology rights 29 (23 ) 29 (21 ) Other 15 (2 ) 9 (1 ) Total $ 53 $ (31 ) $ 47 $ (28 ) Estimated amortization of intangible assets over the next five years is expected to be $5 million in 2018, $4 million in 2019, $4 million in 2020, $3 million in 2021 and $2 million in 2022. Plant, Property, and Equipment, at Cost At December 31, 2017 and 2016, plant, property, and equipment, at cost, by major category were as follows: 2017 2016 (Millions) Land, buildings, and improvements $ 635 $ 568 Machinery and equipment 2,983 2,638 Other, including construction in progress 390 342 $4,008 $3,548 We depreciate these properties excluding land on a straight-line basis over the estimated useful lives of the assets. Useful lives range from 10 to 50 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Notes and Accounts Receivable and Allowance for Doubtful Accounts Receivables consist of amounts billed and currently due from customers and unbilled pre-production Pre-production We expense pre-production pre-production in-process Internal Use Software Assets We capitalize certain costs related to the purchase and development of software that we use in our business operations. We amortize the costs attributable to these software systems over their estimated useful lives, ranging from 3 to 12 years, based on various factors such as the effects of obsolescence, technology, and other economic factors. Capitalized software development costs, net of amortization, were $79 million and $66 million at December 31, 2017 and 2016, respectively, and are recorded in other long-term assets. Amortization of software development costs was approximately $15 million, $12 million and $13 million for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively, and is included in the statements of income (loss) caption “Depreciation and amortization of intangibles.” 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. Accounts Payable Accounts payable included $77 million and $99 million at December 31, 2017 and December 31, 2016, respectively, for accrued compensation and $20 million and $27 million at December 31, 2017 and December 31, 2016, respectively, for bank overdrafts at our European subsidiaries. Income Taxes We recognize deferred tax assets and liabilities 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 their respective tax values, and net operating losses (“NOL”) and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. We evaluate our deferred tax assets quarterly to determine if valuation allowances are required or should be adjusted. U.S. GAAP requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. 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. Valuation allowances have been established in certain foreign jurisdictions for deferred tax assets based on a “more likely than not” threshold. The ability to realize deferred tax assets depends on our ability to generate sufficient taxable income within the carryforward periods provided for in the tax law for each tax jurisdiction. We have considered the following possible sources of taxable income when assessing the realization of our deferred tax assets: • Future reversals of existing taxable temporary differences; • Taxable income or loss, based on recent results, exclusive of reversing temporary differences and carryforwards; • Tax-planning • Taxable income in prior carryback years if carryback is permitted under the relevant tax law. The valuation allowances recorded against deferred tax assets generated by taxable losses in foreign jurisdictions will impact our provision for income taxes until the valuation allowances are released. Our 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. Revenue Recognition We recognize revenue for sales to our original equipment and aftermarket customers when title and risk of loss passes to the customers under the terms of our arrangements with those customers, which is usually at the time of shipment from our plants or distribution centers. Generally, in connection with the sale of exhaust systems to certain original equipment manufacturers, we purchase catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of our customers which are used in the assembled system. These substrates are included in our inventory and “passed through” to the customer at our cost, plus a small margin, since we take title to the inventory and are responsible for both the delivery and quality of the finished product. Revenues recognized for substrate sales were $2,187 million, $2,028 million and $1,888 million in 2017, 2016 and 2015, respectively. For our aftermarket customers, we provide for promotional incentives and returns at the time of sale. Estimates are based upon the terms of the incentives and historical experience with returns. Certain taxes assessed by governmental authorities on revenue producing transactions, such as value added taxes, are excluded from revenue and recorded on a net basis. Shipping and handling costs billed to customers are included in revenues and the related costs are included in cost of sales in our consolidated statements of income. Warranty Reserves Where we have offered product warranty, we also provide for warranty costs. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified on OE products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims and upon specific warranty issues as they arise. The warranty terms vary but range from one year up to limited lifetime warranties on some of our premium aftermarket products. We actively study trends of our warranty claims and take action to improve product quality and minimize warranty claims. While we have not experienced any material differences between these estimates and our actual costs, it is reasonably possible that future warranty issues could arise that could have a significant impact on our consolidated financial statements. Earnings Per Share We compute basic earnings per share by dividing income available to common shareholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that we adjust 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, we adjust income available to common shareholders to include any changes in income or loss that would result from the assumed issuance of the dilutive common shares. See Note 2 to the consolidated financial statements. Engineering, Research and Development We expense engineering, research, and development costs as they are incurred. Engineering, research, and development expenses were $158 million for 2017, $154 million for 2016, and $146 million for 2015, net of reimbursements from our customers. Our customers reimburse us for engineering, research, and development costs on some platforms when we prepare prototypes and incur costs before platform awards. Our engineering, research, and development expense for 2017, 2016 and 2015 has been reduced by $164 million, $137 million and $145 million, respectively, for these reimbursements. Advertising and Promotion Expenses We expense advertising and promotion expenses as they are incurred. Advertising and promotion expenses were $40 million, $40 million, and $54 million for the years ended December 31, 2017, 2016, and 2015, respectively. Foreign Currency We translate the consolidated financial statements of foreign subsidiaries into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted-average exchange rate for revenues and expenses in each period. We record translation adjustments for those subsidiaries whose local currency is their functional currency as a component of accumulated other comprehensive income (loss) in shareholders’ equity. We recognize transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred, except for those intercompany balances which are designated as long-term investments. Our results include foreign currency transaction losses of $4 million in 2017, gains of $1 million in 2016 and losses of $6 million in 2015. The amounts are recorded in cost of sales. We use derivative financial instruments, principally foreign currency forward purchase and sales contracts with terms of less than one year, to hedge our exposure to changes in foreign currency exchange rates. Our primary exposure to changes in foreign currency rates results from intercompany loans made between affiliates to minimize the need for borrowings from third parties. Additionally, we enter into foreign currency forward purchase and sale contracts to mitigate our exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. We manage counter-party credit risk by entering into derivative financial instruments with major financial institutions that can be expected to fully perform under the terms of such agreements. We do not enter into derivative financial instruments for speculative purposes. In managing our foreign currency exposures, we identify and aggregate existing offsetting positions and then hedge residual exposures through third-party derivative contracts. The fair value of our foreign currency forward contracts was a net liability position of less than $1 million at both December 31, 2017 and December 31, 2016 and is based on an internally developed model which incorporates observable inputs including quoted spot rates, forward exchange rates and discounted future expected cash flows utilizing market interest rates with similar quality and maturity characteristics. We record the change in fair value of these foreign currency forward contracts as part of currency gains (losses) within cost of sales in the consolidated statements of income. The fair value of foreign currency forward contracts are recorded in prepayments and other current assets or other current liabilities in the consolidated balance sheet. New Accounting Pronouncements Effective January 1, 2018, we adopted Accounting Standard Update (ASU) 2017-07, Retirement Benefits non-service The following tables summarize the effects of adopting the new standard on our consolidated financial statements: Year Ended December 31, 2017 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 7,812 $ (3 ) $ 7,809 Selling, general, and administrative 648 (12 ) 636 Other (income) expense (1 ) 15 14 Year Ended December 31, 2016 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 7,123 $ (7 ) $ 7,116 Selling, general, and administrative 589 (76 ) 513 Other expense — 83 83 Year Ended December 31, 2015 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 6,828 $ (7 ) $ 6,821 Selling, general, and administrative 491 (9 ) 482 Other expense 1 16 17 Effective January 1, 2018, we adopted ASU 2016-15, non-cash Effective January 1, 2018, we adopted ASU 2016-18, The following tables summarize the effects of adopting ASU 2016-18 2016-15 Year Ended December 31, 2017 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Decrease (increase) in receivables $ 31 $ — $ (112 ) $ (81 ) Net cash provided by operating activities 629 — (112 ) 517 Change in restricted cash $ (1 ) $ 1 $ — $ — Proceeds from deferred purchase price of factored receivables — — 112 112 Net cash used by investing activities (413 ) 1 112 (300 ) Decrease in cash, cash equivalents and restricted cash $ (32 ) $ 1 $ — $ (31 ) Cash, cash equivalents and restricted cash, January 1 347 2 — 349 Cash, cash equivalents and restricted cash, December 31 $ 315 $ 3 $ — $ 318 Year Ended December 31, 2016 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Increase in receivables $ (215 ) $ — $ (110 ) $ (325 ) Net cash provided by operating activities 484 — (110 ) 374 Change in restricted cash $ (1 ) $ 1 $ — $ — Proceeds from deferred purchase price of factored receivables — — 110 110 Net cash used by investing activities (340 ) 1 110 (229 ) Increase in cash, cash equivalents and restricted cash $ 60 $ 1 $ — $ 61 Cash, cash equivalents and restricted cash, January 1 287 1 — 288 Cash, cash equivalents and restricted cash, December 31 $ 347 $ 2 $ — $ 349 Year Ended December 31, 2015 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Increase in receivables $ (90 ) $ — $ (113 ) $ (203 ) Net cash provided by operating activities 528 — (113 ) 415 Change in restricted cash $ 2 $ (2 ) $ — $ — Proceeds from deferred purchase price of factored receivables — — 113 113 Net cash used by investing activities (303 ) (2 ) 113 (192 ) Increase in cash, cash equivalents and restricted cash $ 5 $ (2 ) $ — $ 3 Cash, cash equivalents and restricted cash, January 1 282 3 — 285 Cash, cash equivalents and restricted cash, December 31 $ 287 $ 1 $ — $ 288 In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2018-02, In January 2017, the FASB issued Accounting Standard Update 2017-04, two-step one-step In October 2016, the FASB issued Accounting Standard Update 2016-16, In March 2016, the FASB issued Accounting Standard Update 2016-09, • We recorded a tax benefit of $2 million within income tax expense for the year ended December 31, 2017 related to the excess tax benefit on share-based awards. Prior to adoption, this amount would have been recorded as premium on common stock and other capital surplus. • We no longer reclassify the excess tax benefit from operating activities to financing activities in the statement of cash flows. Cash payments made to the taxing authorities on employees’ behalf for withheld shares are presented as financing activities. Tenneco elected to apply this change in presentation retrospectively and thus prior periods have been adjusted. • We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended December 31, 2017. The impact was not material. In February 2016, the FASB issued Accounting Standard Update 2016-02, In May 2014, the FASB issued an amendment on revenue recognition. The amendment in this update creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendment supersedes the cost guidance in Subtopic 605-35, 340-40, one-year The guidance permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. We adopted the guidance effective January 1, 2018 using the modified retrospective method by recognizing the cumulative effect in equity at the date of initial application. We have established a cross-functional coordinated team to implement the guidance related to the recognition of revenue from contracts with customers. We are finalizing the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing internal controls over financial reporting and the enhanced disclosure requirements of the new guidance. Under current guidance, we generally recognize revenue when products are shipped and risk of loss has transferred to the customer. Under the new requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment will require us to recognize revenue over time during production. Our findings to date indicate only a small number of our customers provide an enforceable right to payment and therefore would be recognized over time. The cumulative effect in equity at the date of initial application of this change in accounting is not expected to be material. In addition, we have assessed pricing provisions contained in certain of our customer contracts. Certain price adjustments if they are determined to represent an option to purchase additional product at a reduced price could grant a material right to the customer and require a deferral of revenue. While Tenneco pricing provisions contained in customer contracts are generally reflective of market conditions and customary industry pricing practices, some may provide the customer with a material right. Based on our evaluation, no pricing provisions have been considered to represent a material right. We have also evaluated how the new guidance may affect our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production Restricted Net Assets In certain countries where we operate, transfers of funds out of such countries by way of dividends, loans or advances are subject to certain central bank restrictions which require approval from the central bank authorities prior to transferring funds out of these countries. The countries in which we operate that have such restrictions include China, South Africa, and Thailand. The net asset balance of our subsidiaries in the countries in which we operate that have such restrictions was $406 million and $323 million as of December 31, 2017 and 2016, respectively. These central banking restrictions do not have a significant effect on our ability to manage liquidity on a global basis. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Earnings Per Share Earnings per share of common stock outstanding were computed as follows: Year Ended December 31, 2017 2016 2015 (Millions Except Share and Per Share Amounts) Basic earnings per share— Net income attributable to Tenneco Inc. $ 207 $ 356 $ 241 Average shares of common stock outstanding 52,796,184 55,939,135 59,678,309 Earnings per average share of common stock $ 3.93 $ 6.36 $ 4.05 Diluted earnings per share— Net income attributable to Tenneco Inc. $ 207 $ 356 $ 241 Average shares of common stock outstanding 52,796,184 55,939,135 59,678,309 Effect of dilutive securities: Restricted stock 111,062 175,513 96,168 Stock options 119,665 292,788 418,673 Average shares of common stock outstanding including dilutive securities 53,026,911 56,407,436 60,193,150 Earnings per average share of common stock $ 3.91 $ 6.31 $ 4.01 Options to purchase 834, 134,361, and 175,216 shares of common stock were outstanding as of December 31, 2017, 2016 and 2015, respectively, but not included in the computation of diluted earnings per share, because the options were anti-dilutive. |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and divestitures | 3. Acquisitions and divestitures In November 2015, we closed on the sale of certain assets related to our Marzocchi mountain bike suspension product line to affiliates of Fox Factory Holding Corp.; and in December 2015, we closed on the sale of the Marzocchi motorcycle fork product line to an Italian company, VRM S.p.A. We recorded charges of $29 million in 2015 related to severance and other employee related costs, asset write-downs and other expenses related to the closure. In March 2016, we completed the disposition of the Gijon, Spain plant and signed an agreement to transfer ownership of the manufacturing facility in Gijon to German private equity fund Quantum Capital Partners A.G. (QCP). The transfer to QCP was effective March 31, 2016 and under a three year manufacturing agreement, QCP will also continue as a supplier to Tenneco. In April 2017, we sold our 49% equity interest in the Futaba-Tenneco U.K. joint venture entity which produces stamped metal parts to our partner in that joint venture, Futaba Industrial Co., Ltd. In June 2017, we announced the closing of our Clean Air manufacturing plant in O’Sullivan Beach, Australia when General Motors and Toyota end vehicle production in the country, which occurred in October 2017. All related activities are expected to be completed by the first quarter of 2018. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 4. Restructuring and Other Charges Over the past several years, we have adopted plans to restructure portions of our operations. These plans were approved by our Board of Directors and were designed to reduce operational and administrative overhead costs throughout the business. In 2015, we incurred $63 million in restructuring and related costs including asset write-downs of $10 million, primarily related to European cost reduction efforts, exiting the Marzocchi suspension business, headcount reductions in Australia and South America, and the closure of a JIT plant in Australia, of which $46 million was recorded in cost of sales, $11 million in SG&A, $1 million in engineering expense, $4 million in depreciation and amortization expense and $1 million in other expense. In 2016, we incurred $36 million in restructuring and related costs including asset write-downs of $6 million, primarily related to manufacturing footprint improvements in North America Ride Performance, headcount reduction and cost improvement initiatives in Europe and China Clean Air, South America and Australia, of which $17 million was recorded in cost of sales, $12 million in SG&A, $1 million in engineering, $2 million in other expense and $4 million in depreciation and amortization expense. In 2017, we incurred $72 million in restructuring and related costs including asset write-downs of $3 million, primarily related to the planned closing a Clean Air Belgian JIT plant in response to the end of production on a customer platform, closing an OE Clean Air manufacturing plant and downsizing Ride Performance operations in Australia, the required relocation of our Beijing Ride Performance plant outside of the Beijing area and other cost improvement initiatives, of which $41 million was recorded in cost of sales, $28 million in SG&A and $3 million in depreciation and amortization expense. Amounts related to activities that are part of our restructuring plans are as follows: December 31, 2016 Restructuring Reserve 2017 Expenses 2017 Cash Payments Impact of December 31, 2017 Restructuring Reserve (Millions) Employee Severance, Termination Benefits and Other Related Costs $ 15 49 (41 ) 2 $ 25 On January 31, 2013, we announced our intent to reduce structural costs in Europe by approximately $60 million annually. During the first quarter of 2016, we reached an annualized run rate on this cost reduction initiative of $49 million. With the disposition of the Gijon plant, which was completed at the end of the first quarter of 2016, the annualized rate essentially reached our target of $55 million, at the current exchange rates at that time. In 2015, we incurred $63 million in restructuring and related costs, of which $22 million was related to this initiative. In 2016, we incurred $36 million in restructuring and related costs, of which $20 million was related to this initiative and certain ongoing matters. For example, we closed a plant in Gijon Spain in 2013, but subsequently re-opened On July 22, 2015, we announced our intention to discontinue our Marzocchi motorcycle fork suspension product line and our mountain bike suspension product line, and liquidate our Marzocchi operations. These actions were subject to a consultation process with the employee representatives and in total eliminated approximately 138 jobs. We employed 127 people at the Marzocchi plant in Bologna, Italy and an additional 11 people in our operations in North America and Taiwan. In November 2015, we closed on the sale of certain assets related to our Marzocchi mountain bike suspension product line to the affiliates of Fox Factory Holding Corp.; and in December 2015, we closed on the sale of the Marzocchi motorcycle fork product line to an Italian company, VRM S.p.A. These actions were a part of our ongoing efforts to optimize our Ride Performance product line globally while continuously improving our operations and increasing profitability. We recorded charges of $29 million in 2015 related to severance and other employee related costs, asset write-downs and other expenses related to the closure. On June 29, 2017, we announced a restructuring initiative to close our Clean Air manufacturing plant in O’Sullivan Beach, Australia and downsize our Ride Performance plant in Clovelly Park, Australia when General Motors and Toyota end vehicle production in the country, which occurred in October 2017. All such restructuring activities related to this initiative are expected to be completed by the first quarter of 2018. We recorded total charges related to this initiative of $21 million in 2017 including asset write-downs of $2 million. The charges included severance payments to employees, the cost of decommissioning equipment, a lease termination payment and other costs associated with this action. In 2017, we continued the relocation of production out of our Ride Performance plant in Beijing for which we incurred $6 million of restructuring and related costs. In the first quarter of 2017, we recognized a $10 million charge, including asset write-downs of $1 million, related to the planned closing of our Clean Air JIT plant in Ghent, Belgium due to the scheduled end of production on a customer platform in 2020. We incurred an additional $35 million in restructuring and related costs for cost improvement initiatives at various other operations around the world. Under the terms of our senior credit agreement that took effect on May 12, 2017, we are allowed to exclude, at our discretion, (i) up to $35 million in 2017 and $25 million each year thereafter of cash restructuring charges and related expenses, with the ability to carry forward any amount not used in one year to the next following year, and (ii) up to $150 million in the aggregate of all costs, expenses, fees, fines, penalties, judgments, legal settlements and other amounts associated with any restructuring, litigation, claim, proceeding or investigation related to or undertaken by us or any of our subsidiaries, together with any related provision for taxes, incurred in quarterly period ending after May 12, 2017 in the calculation of the financial covenant ratios required under our senior credit facility. As of December 31, 2017, we had elected not to exclude any of the $185 million of allowable cash charges and related expenses recognized in 2017 for restructuring related costs and antitrust settlement against the $35 million annual limit for 2017 or the $150 million aggregate limit under the terms of the senior credit facility. |
Long-Term Debt, Short-Term Debt
Long-Term Debt, Short-Term Debt, and Financing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Short-Term Debt, and Financing Arrangements | 5. Long-Term Debt, Short-Term Debt, and Financing Arrangements Long-Term Debt A summary of our long-term debt obligations at December 31, 2017 and 2016, is set forth in the following table: 2017 2016 (Millions) Tenneco Inc.— Revolver borrowings due 2019, average effective interest rate 2.3% in 2016 $ — $ 300 Revolver borrowings due 2022, average effective interest rate 3.8% in 2017 244 Senior Tranche A Term Loan due 2017 through 2020, average effective interest rate 2.2% in 2016 — 270 Senior Tranche A Term Loan due 2017 through 2022, average effective interest rate 2.9% in 2017 390 — 5 3/8% Senior Notes due 2024 225 225 5% Senior Notes due 2026 500 500 Other subsidiaries— Other Long Term Debt due in 2020, average interest rate 1.7% in 2017 and 2016 5 7 Notes due 2018 through 2028, average effective interest rate 0.3% in 2017 and 0.2% in 2016 10 8 1,374 1,310 Less—maturities classified as current 3 3 unamortized debt issuance costs 13 13 Total long-term debt $ 1,358 $ 1,294 The aggregate maturities applicable to the long-term debt outstanding at December 31, 2017, are $23 million, $31 million, $36 million, $41 million and $515 million for 2018, 2019, 2020, 2021 and 2022, respectively. We have excluded the required payments, within the next twelve months, under the Tranche A Term Facility totaling $20 million from current liabilities as of December 31, 2017, because we have the intent and ability to refinance the obligations on a long-term basis by using our revolving credit facility. Short-Term Debt Our short-term debt includes the current portion of long-term obligations and borrowings by parent company and foreign subsidiaries. Information regarding our short-term debt as of and for the years ended December 31, 2017 and 2016 is as follows: 2017 2016 (Millions) Maturities classified as current $ 3 $ 3 Short-term borrowings 80 87 Total short-term debt $ 83 $ 90 Notes Payable(a) 2017 2016 (Dollars in Millions) Outstanding borrowings at end of year $ 80 $ 87 Weighted average interest rate on outstanding borrowings at end of year(b) 2.9 % 2.8 % Maximum month-end $ 205 $ 193 Average month-end $ 186 $ 177 Weighted average interest rate on average month-end 2.7 % 2.4 % (a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements. (b) This calculation does not include the commitment fees to be paid on the unused revolving credit facility balances which are recorded as interest expense for accounting purposes. Financing Arrangements Committed Credit Facilities(a) as of December 31, 2017 Term Commitments Borrowings Letters of Credit(b) Available (Millions) Tenneco Inc. revolving credit agreement 2022 $ 1,600 $ 244 $ — $ 1,356 Tenneco Inc. tranche A term facility 2022 390 390 — — Subsidiaries’ credit agreements 2018-2028 239 95 — 144 $ 2,229 $ 729 $ — $ 1,500 (a) We generally are required to pay commitment fees on the unused portion of the total commitment. (b) Letters of credit reduce the available borrowings under the revolving credit agreement. Overview. On June 6, 2016, we announced a cash tender offer to purchase our outstanding $500 million 6 7 We recorded $16 million and $8 million of pre-tax 7 write-off On May 12, 2017, we completed a refinancing of our senior credit facility by entering into an amendment and restatement of that facility. The amended and restated credit agreement enhances financial flexibility by increasing the size and extending the term of its revolving credit facility and term loan facility, and by adding Tenneco Automotive Operating Company Inc. as a co-borrower re-borrowed We recorded $1 million of pre-tax At December 31, 2017, of the $1,600 million available under the revolving credit facility, we had unused borrowing capacity of $1,356 million with $244 million in outstanding borrowings and zero in outstanding letters of credit. As of December 31, 2017, our outstanding debt also included (i) $390 million of a term loan which consisted of a $388 million net carrying amount including a $2 million debt issuance cost related to our Tranche A Term Facility which is subject to quarterly principal payments as described above through December 8, 2019, (ii) $225 million of notes which consisted of a $222 million net carrying amount including a $3 million debt issuance cost of 5 3 Senior Credit Facility—Interest Rates and Fees. Senior Credit Facility—Other Terms and Conditions. Quarter Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Req. Act. Req. Act. Req. Act. Req. Act. Leverage Ratio (maximum) 3.50 1.95 3.50 2.15 3.50 1.97 3.50 1.62 Interest Coverage Ratio (minimum) 2.75 10.77 2.75 11.48 2.75 12.44 2.75 15.38 The senior credit facility includes a maximum leverage ratio covenant of 3.50 and a minimum interest coverage ratio of 2.75 in each case through May 12, 2022. The amended and restated senior credit facility provides us with the flexibility not to exclude certain otherwise excludable charges incurred in any relevant period from the calculation of the leverage and interest coverage ratios for such period. As of December 31, 2017, we elected not to exclude a total of $185 million of excludable charges. Had these charges been excluded, the leverage ratio and the interest ratio would have been 1.52 and 13.76, respectively, as of December 31, 2017. The covenants in our senior credit facility agreement generally prohibit us from repaying or refinancing our senior notes. So long as no default existed, we would, however, under our senior credit facility agreement, be permitted to repay or refinance our senior notes (i) with the net cash proceeds of permitted refinancing indebtedness (as defined in the senior credit facility agreement) or with the net cash proceeds of our common stock, in each case issued within 180 days prior to such repayment; (ii) with the net cash proceeds of the incremental facilities (as defined in the senior credit facility agreement) and certain indebtedness incurred by our foreign subsidiaries; (iii) with the proceeds of the revolving loans (as defined in the senior credit facility agreement); (iv) with the cash generated by our operations; (v) in an amount equal to the net cash proceeds of qualified capital stock (as defined in the senior credit facility agreement) issued by us after May 12, 2017; and (vi) in exchange for permitted refinancing indebtedness or in exchange for shares of our common stock; provided that such purchases are capped as follows (with respect to clauses (iii), (iv) and (v) based on a pro forma consolidated leverage ratio after giving effect to such purchase, cancellation or redemption): Pro forma Consolidated Leverage Ratio Aggregate Senior Note Maximum Amount (Millions) Greater than or equal to 3.25x $ 20 Greater than or equal to 3.0x $ 100 Greater than or equal to 2.5x $ 225 Less than 2.5x no limit Although the senior credit facility agreement would permit us to repay or refinance our senior notes under the conditions described above, any repayment or refinancing of our outstanding notes would be subject to market conditions and either the voluntary participation of note holders or our ability to redeem the notes under the terms of the applicable note indenture. For example, while the senior credit facility agreement would allow us to repay our outstanding notes via a direct exchange of the notes for either permitted refinancing indebtedness or for shares of our common stock, we do not, under the terms of the agreements governing our outstanding notes, have the right to refinance the notes via any type of direct exchange. The senior credit facility agreement also contains other restrictions on our operations that are customary for similar facilities, including limitations on: (i) incurring additional liens; (ii) sale and leaseback transactions (except for the permitted transactions as described in the senior credit facility agreement); (iii) liquidations and dissolutions; (iv) incurring additional indebtedness or guarantees; (v) investments and acquisitions; (vi) dividends and share repurchases; (vii) mergers and consolidations; and (viii) refinancing of the senior notes. Compliance with these requirements and restrictions is a condition for any incremental borrowings under the senior credit facility agreement and failure to meet these requirements enables the lenders to require repayment of any outstanding loans. As of December 31, 2017, we were in compliance with all the financial covenants and operational restrictions of the senior credit facility. Our senior credit facility does not contain any terms that could accelerate payment of the facility or affect pricing under the facility as a result of a credit rating agency downgrade. Senior Notes. 3 8 Our senior notes due December 15, 2024 and July 15, 2026, respectively, contain covenants that will, among other things, limit our ability to create liens and enter into sale and leaseback transactions. Our senior notes due 2024 also require that, as a condition precedent to incurring certain types of indebtedness not otherwise permitted, our consolidated fixed charge coverage ratio, as calculated on a pro forma basis, be greater than 2.00, as well as containing restrictions on our operations, including limitations on: (i) incurring additional indebtedness; (ii) dividends; (iii) distributions and stock repurchases; (iv) investments; (v) asset sales and (vi) mergers and consolidations. Subject to limited exceptions, all of our existing and future material domestic wholly owned subsidiaries fully and unconditionally guarantee our senior notes on a joint and several basis. There are no significant restrictions on the ability of the subsidiaries that have guaranteed these notes to make distributions to us. As of December 31, 2017, we were in compliance with the covenants and restrictions of these indentures. Accounts Receivable Securitization/Factoring. Each facility contains customary covenants for financings of this type, including restrictions related to liens, payments, mergers or consolidations and amendments to the agreements underlying the receivables pool. Further, each facility may be terminated upon the occurrence of customary events (with customary grace periods, if applicable), including breaches of covenants, failure to maintain certain financial ratios, inaccuracies of representations and warranties, bankruptcy and insolvency events, certain changes in the rate of default or delinquency of the receivables, a change of control and the entry or other enforcement of material judgments. In addition, each facility contains cross-default provisions, where the facility could be terminated in the event of non-payment On December 14, 2017, we entered into a new accounts receivable factoring program in the U.S. with a commercial bank. Under this program we sell receivables from one of our U.S. OE customers at a rate that is favorable versus our senior credit facility. This arrangement is uncommitted and provides for cancellation by the commercial bank with no less than 30 days prior written notice. The amount of outstanding third-party investments in our accounts receivable sold under this program was $107 million at December 31, 2017. We also factor receivables in our European operations with regional banks in Europe under various separate facilities. The commitments for these arrangements are generally for one year, but some may be canceled with notice 90 days prior to renewal. In some instances, the arrangement provides for cancellation by the applicable financial institution at any time upon notification. The amount of outstanding third-party investments in our accounts receivable sold under programs in Europe was $218 million and $160 million at December 31, 2017 and December 31, 2016, respectively. Certain programs in Europe have deferred purchase price arrangements with the banks. We received cash of $112 million, $110 million and $113 million to settle the deferred purchase price for the years ended December 31, 2017, 2016 and 2015, respectively. If we were not able to securitize or factor receivables under either the U.S or European programs, our borrowings under our revolving credit agreement might increase. These accounts receivable securitization and factoring programs provide us with access to cash at costs that are generally favorable to alternative sources of financing, and allow us to reduce borrowings under our revolving credit agreement. In our U.S. accounts receivable securitization programs, we transfer a partial interest in a pool of receivables and the interest that we retain is subordinate to the transferred interest. Accordingly, we account for our U.S. securitization program as a secured borrowing. In our U.S and European accounts receivable factoring programs, we transfer accounts receivables in their entirety to the acquiring entities and satisfy all of the conditions established under ASC Topic 860, “Transfers and Servicing,” to report the transfer of financial assets in their entirety as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under our U.S. and European factoring programs approximates the fair value of such receivables. We recognized $4 million in interest expense for the year ended 2017, $3 million in interest expense for the year ended 2016 and $2 million in interest expense for the year ended 2015 relating to our U.S. securitization program. In addition, we recognized a loss of $3 million for each of the years ended 2017, 2016 and 2015, on the sale of trade accounts receivable in our U.S. and European accounts receivable factoring programs, representing the discount from book values at which these receivables were sold to our banks. The discount rate varies based on funding costs incurred by our banks, which averaged approximately one percent for the year ended 2017 and two percent for both years ended 2016 and 2015. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Financial Instruments Additional Information [Abstract] | |
Financial Instruments | 6. Financial Instruments The carrying and estimated fair values of our financial instruments by class at December 31, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,361 $ 1,398 $ 1,297 $ 1,311 Equity swap agreement and foreign currency forward contracts: Asset derivative contracts (a) 4 4 — — (a) All derivatives are categorized within Level 2 of the fair value hierarchy. Asset and Liability Instruments Long-term Debt The fair value hierarchy definition prioritizes the inputs used in measuring fair value into the following levels: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. Level 3 — Unobservable inputs based on our own assumptions. Foreign currency forward contracts The following table summarizes by major currency the notional amounts for foreign currency forward purchase and sale contracts as of December 31, 2017 (all of which mature in 2018): Notional Amount in Foreign Currency (Millions) British pounds —Purchase 11 Canadian dollars —Sell (2 ) European euro —Sell (4 ) U.S. dollars —Purchase 7 —Sell (15 ) Cash-settled Share Swap Transactions Guarantees We have two performance guarantee agreements in the U.K. between Tenneco Management (Europe) Limited (“TMEL”) and the two Walker Group Retirement Plans, the Walker Group Employee Benefit Plan and the Walker Group Executive Retirement Benefit Plan (the “Walker Plans”), whereby TMEL will guarantee the payment of all current and future pension contributions in event of a payment default by the sponsoring or participating employers of the Walker Plans. The Walker Plans are comprised of employees from Tenneco Walker (U.K.) Limited, formerly our Futaba-Tenneco (U.K.) joint venture. Employer contributions are funded by Tenneco Walker (U.K.) Limited, as the sponsoring employer, and were also funded by Futaba (U.K.) Limited prior to its ceasing, on April 28, 2017, to be an entity in which Tenneco has an equity interest. The performance guarantee agreements are expected to remain in effect until all pension obligations for the Walker Plans’ sponsoring and participating employers have been satisfied. We did not record an additional liability for this performance guarantee since Tenneco Walker (U.K.) Limited, as the sponsoring employer of the Walker Plans, already recognizes 100 percent of the pension obligation calculated based on U.S. GAAP, for all of the Walker Plans’ participating employers on its balance sheet, which was zero and $19 million at December 31, 2017 and December 31, 2016, respectively. At December 31, 2017, all pension contributions were current for all of the Walker Plans’ sponsoring and participating employers. In June 2011, we entered into an indemnity agreement between TMEL and Futaba Industrial Co. Ltd. which required Futaba to indemnify TMEL for any cost, loss or liability which TMEL may incur under the performance guarantee agreements relating to the Futaba-Tenneco U.K. joint venture. The maximum amount reimbursable by Futaba to TMEL under this indemnity agreement is equal to the amount incurred by TMEL under the performance guarantee agreements multiplied by Futaba’s shareholder ownership percentage of the Futaba-Tenneco U.K. joint venture. On April 28, 2017, Walker Limited sold its equity interest in the Futaba-Tenneco U.K. joint venture entity to Futaba Industrial Co., Ltd. In connection with the closing of that transaction, this indemnity agreement was terminated and accordingly Futaba no longer has any reimbursement obligations thereunder. We have issued guarantees through letters of credit in connection with some obligations of our affiliates. As of December 31, 2017, we have guaranteed $32 million in letters of credit to support some of our subsidiaries’ insurance arrangements, foreign employee benefit programs, environmental remediation activities and cash management and capital requirements. Financial Instruments The financial instruments received by some of our Chinese subsidiaries are drafts drawn that are payable at a future date and, in some cases, are negotiable and/or are guaranteed by the banks of the customers. The use of these instruments for payment follows local commercial practice. Because certain of such financial instruments are guaranteed by our customers’ banks, we believe they represent a lower financial risk than the outstanding accounts receivable that they satisfy which are not guaranteed by a bank. Supply Chain Financing. Restricted Cash— One of our subsidiaries in Brazil and another in Spain are required by law to maintain a cash deposit with a financial institution to guarantee the maximum estimated loss related to a tax audit until a settlement is reached. The cash deposit required was $1 million at December 31, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The domestic and foreign components of our income before income taxes and noncontrolling interests are as follows: Year Ended December 31, 2017 2016 2015 (Millions) U.S. income (loss) before income taxes $ (25 ) $ 63 $ 198 Foreign income before income taxes 369 361 243 Income before income taxes and noncontrolling interests $ 344 $ 424 $ 441 Following is a comparative analysis of the components of income tax expense (benefit): Year Ended December 31, 2017 2016 2015 (Millions) Current— U.S. federal $ (24 ) $ (9 ) $ 64 State and local 1 4 5 Foreign 101 85 83 78 80 152 Deferred— U.S. federal 13 (91 ) (1 ) State and local (3 ) (1 ) 1 Foreign (18 ) 12 (6 ) (8 ) (80 ) (6 ) Income tax expense $ 70 $ — $ 146 Following is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (35 percent for all years presented) to the income tax expense reflected in the statements of income: Year Ended December 31, 2017 2016 2015 (Millions) Income tax expense computed at the statutory U.S. federal income tax rate $ 120 $ 148 $ 154 Increases (reductions) in income tax expense resulting from: Foreign income taxed at different rates (48 ) (42 ) (14 ) Transition Tax under Tax Cuts and Jobs Act (“TCJA”) 43 — — Re-measurement 48 — (4 ) State and local taxes on income, net of U.S. federal income tax benefit (2 ) 3 11 Changes in valuation allowance for tax loss carryforwards and credits (1 ) 18 13 Foreign tax holidays — — (7 ) Investment and R&D tax credits (6 ) (6 ) (26 ) Foreign earnings subject to U.S. federal income tax (74 ) (101 ) 12 Adjustment of prior years taxes — — 2 Tax contingencies (1 ) (7 ) 4 Other (9 ) (13 ) 1 Income tax expense $ 70 $ — $ 146 We reported income tax expense of $70 million in 2017, less than $1 million in 2016 and $146 million in 2015. The tax expense recorded in 2017 includes a net provisional tax expense of $43 million for one-time The item labeled “Transition Tax” above will result in cash tax payments of less then $1 million to U.S. state and local jurisdictions. Foreign tax credits will offset the U.S. federal portion of the transition tax. The components of our net deferred tax assets were as follows: Year Ended December 31, 2017 2016 (Millions) Deferred tax assets— Tax loss carryforwards: State $ 19 $ 13 Foreign 114 92 Tax credits 118 83 Postretirement benefits other than pensions 37 55 Pensions 24 48 Bad debts 3 3 Sales allowances 4 7 Payroll accruals 18 39 Other accruals 64 50 Valuation allowance (163 ) (145 ) Total deferred tax assets 238 245 Deferred tax liabilities— Tax over book depreciation 45 53 Total deferred tax liabilities 45 53 Net deferred tax assets $ 193 $ 192 State tax loss carryforwards have been presented net of uncertain tax positions that, if realized, would reduce tax loss carryforwards in 2017 and 2016 by $2 million and $3 million, respectively. Additionally, foreign tax loss carryforwards, have been presented net of uncertain tax positions that, if realized, would reduce tax loss carryforwards in both 2017 and 2016 by $7 million. Following is a reconciliation of deferred taxes to the deferred taxes shown in the balance sheet: Year Ended December 31, 2017 2016 (Millions) Balance Sheet: Non-current $ 204 $ 199 Non-current (11 ) (7 ) Net deferred tax assets $ 193 $ 192 As a result of the valuation allowances recorded for $163 million and $145 million at December 31, 2017 and 2016, respectively, we have potential tax assets that were not recognized on our consolidated balance sheets. These unrecognized tax assets resulted primarily from foreign tax loss carryforwards, foreign investment tax credits, foreign research and development credits and U.S. state net operating losses that are available to reduce future tax liabilities. Our state net operating losses (“NOLs”) expire in various tax years through 2038. Our non-U.S. We do not provide for U.S. income taxes on unremitted earnings of foreign subsidiaries, except for the earnings of two of our China operations, as our present intention is to reinvest the unremitted earnings in our foreign operations. Unremitted earnings of foreign subsidiaries were approximately $920 million at December 31, 2017. We estimated that the amount of U.S. and foreign income taxes that would be accrued or paid upon remittance of the assets that represent those unremitted earnings was $80 million. U.S. GAAP provides that a tax benefit from an uncertain tax position 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. A reconciliation of our uncertain tax positions is as follows: 2017 2016 2015 (Millions) Uncertain tax positions— Balance January 1 $ 111 $ 123 $ 114 Gross increases in tax positions in current period 6 6 7 Gross increases in tax positions in prior period 2 2 14 Gross decreases in tax positions in prior period (2 ) (5 ) (4 ) Gross decreases—settlements — — (1 ) Gross decreases—statute of limitations expired (5 ) (15 ) (7 ) Balance December 31 $ 112 $ 111 $ 123 Included in the balance of uncertain tax positions were $108 million in 2017, $108 million in 2016, $110 million in 2015, of tax benefits, that if recognized, would affect the effective tax rate. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. Penalties of less than $1 million were accrued in 2017, 2016 and 2015. Additionally, we accrued interest expense related to uncertain tax positions of less than $1 million in 2017, interest expense of less than $1 million in 2016, and interest income of less than $1 million in 2015. Our liability for penalties was $1 million at December 31, 2017, $1 million at December 31, 2016 and $2 million at December 31, 2015, respectively, and our liability for interest was $4 million at December 31, 2017, 2016 and 2015. Our uncertain tax position at December 31, 2017 and 2016 included exposures relating to the disallowance of deductions, global transfer pricing and various other issues. We believe it is reasonably possible that a decrease of up to $8 million in unrecognized tax benefits related to the expiration of U.S. and foreign statute of limitations and the conclusion of income tax examinations may occur within the next twelve months. We are subject to taxation in the U.S. and various state and foreign jurisdictions. As of December 31, 2017, our tax years open to examination in primary jurisdictions are as follows: Open To Tax Year United States 2006 China 2007 Spain 2004 Canada 2014 Brazil 2012 Mexico 2012 Belgium 2015 Germany 2013 United Kingdom 2015 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock | 8. Common Stock We have authorized 135 million shares ($0.01 par value) of common stock, of which 66,033,509 shares and 65,891,930 shares were issued at December 31, 2017 and 2016, respectively. We held 14,592,888 and 11,655,938 shares of treasury stock at December 31, 2017 and 2016, respectively. Equity Plans We have granted restricted common stock and stock options to our directors and certain key employees and restricted stock units, payable in cash, to certain key employees. These awards generally require, among other things, that the award holder remain in service to our company during the restriction period, which is currently three years, with a portion of the award vesting equally each year. We have also granted stock equivalent units and long-term performance units to certain key employees that are payable in cash. At December 31, 2017, the long-term performance units outstanding included a three-year grant for 2015-2017 payable in the first quarter of 2018, a three-year grant for 2016-2018 payable in the first quarter of 2019 and a three-year grant for 2017-2019 payable in the first quarter of 2020. Payment is based on the attainment of specified performance goals. Grant value is based on stock price, cumulative EBITDA and free cash flow metrics. In addition, we have granted SARs to certain key employees in our Asian and Indian operations that are payable in cash after a three-year service period. The grant value is indexed to the stock price. Accounting Methods For employees eligible to retire at the grant date, we immediately expense stock options and restricted stock. If employees become eligible to retire during the vesting period, we amortize the expense for stock options and restricted stock over a period starting at the grant date to the date the employee becomes retiree eligible. As of December 31, 2017, there was no unrecognized compensation cost related to our stock options awards. Compensation expense for restricted stock, restricted stock units, long-term performance units and SARs (net of taxes) was $15 million, $18 million, and $12 million for each of the years ended 2017, 2016 and 2015, respectively, and was recorded in selling, general, and administrative expense on the consolidated statements of income. Cash received from stock option exercises was $8 million in 2017, $16 million in 2016, and $4 million in 2015. Stock option exercises generated an excess tax benefit of $2 million in 2017, $1 million in 2016 and $6 million in 2015. Stock Options Year Ended December 31, 2017 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options: Outstanding, January 1, 2017 606,525 $ 38.54 2.6 $ 12 Canceled (2,214 ) 56.23 Forfeited (1,107 ) 56.23 Exercised (164,863 ) 33.70 5 Outstanding, March 31, 2017 438,341 $ 40.22 2.6 $ 11 Forfeited (278 ) 66.54 Exercised (3,242 ) 45.42 — Outstanding, June 30, 2017 434,821 $ 40.16 2.4 $ 8 Forfeited (41,369 ) 19.53 Exercised (50,125 ) 34.79 1 Outstanding, September 30, 2017 343,327 $ 43.44 2.4 $ 4 Forfeited (628 ) 62.54 Exercised (24,683 ) 40.86 — Outstanding, December 31, 2017 318,016 $ 43.60 2.3 $ 5 As of December 31, 2017, all outstanding options are exercisable. There were no stock options granted in 2017, 2016 or 2015. The total intrinsic value of options exercised during the years ended December 31, 2017, 2016, and 2015 was $6 million, $11 million and $10 million, respectively. The total fair value of shares vested was $2 million in 2017, $4 million in 2016 and $6 million in 2015. Restricted Stock Year Ended December 31, 2017 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2017 591,416 $ 44.63 Granted 182,543 68.04 Vested (261,003 ) 50.95 Forfeited (65,354 ) 53.12 Nonvested balance at March 31, 2017 447,602 $ 49.25 Granted 23,295 57.22 Vested (15,336 ) 46.77 Forfeited (6,271 ) 48.10 Nonvested balance at June 30, 2017 449,290 $ 49.79 Granted 2,001 55.80 Vested (4,581 ) 55.52 Forfeited (10,234 ) 44.82 Nonvested balance at September 30, 2017 436,476 $ 49.87 Vested (19,228 ) 47.45 Forfeited (6,997 ) 51.79 Nonvested balance at December 31, 2017 410,251 $ 49.95 The fair value of restricted stock grants is equal to the average market price of our stock at the date of grant. As of December 31, 2017, approximately $8 million of total unrecognized compensation costs related to restricted stock awards is expected to be recognized over a weighted-average period of approximately 1.7 years. For our restricted share grants that have not yet vested, we estimate forfeitures by taking the average of the past actual forfeiture rate for restricted shares. The weighted average grant-date fair value of restricted stock granted during the years 2017, 2016 and 2015 was $66.77, $36.36, and $52.85, respectively. The total fair value of restricted shares vested was $14 million in 2017, $9 million in 2016 and $7 million in 2015. Share Repurchase Program In February 2017, our Board of Directors authorized the repurchase of up to $400 million of the Company’s outstanding common stock over the next three years. This included $112 million then remaining amount authorized under earlier repurchase programs. The company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The repurchase program does not obligate the Company to repurchase shares within any specific time or situations, and opportunities in higher priority areas could affect the cadence of this program. We purchased 2,936,950 shares in 2017 through open market purchases, which were funded through cash from operations, at a total cost of $169 million, at an average price of $57.57 per share. These repurchased shares are held as part of our treasury stock which increased to 14,592,888 at December 31, 2017 from 11,655,938 at December 31, 2016. Dividends Long-Term Performance Units, Restricted Stock Units and SARs |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Preferred Stock | 9. Preferred Stock We had 50 million shares of preferred stock ($0.01 par value) authorized at December 31, 2017 and 2016, respectively. No shares of preferred stock were outstanding at those dates. |
Pension Plans, Postretirement a
Pension Plans, Postretirement and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension Plans, Postretirement and Other Employee Benefits | 10. Pension Plans, Postretirement and Other Employee Benefits Pension benefits are based on years of service and, for most salaried employees, on average compensation. Our funding policy is to contribute to the plans amounts necessary to satisfy the funding requirement of applicable federal or foreign laws and regulations. Of our $734 million benefit obligation at December 31, 2017, approximately $666 million required funding under applicable federal and foreign laws. The balance of our benefit obligation, $68 million, did not require funding under applicable federal or foreign laws and regulations. At December 31, 2017, we had approximately $640 million in assets to fund that obligation. Pension plan assets were invested in the following classes of securities: Percentage of Fair Market Value December 31, December 31, US Foreign US Foreign Equity Securities 70 % 50 % 70 % 61 % Debt Securities 29 % 42 % 30 % 34 % Real Estate — 2 % — 2 % Other 1 % 6 % — % 3 % Our investment policy for our domestic plan is to invest more heavily in equity securities than debt securities. Targeted pension plan allocations are 70 percent in equity securities and 30 percent in debt securities, with acceptable tolerance levels of plus or minus five percent within each category for our domestic plan. Our foreign plans are individually managed to different target levels depending on the investing environment in each country and the funded status of each plan, with an increased allocation of assets to debt securities at higher funded ratios. The assets of some of our pension plans are invested in trusts that permit commingling of the assets of more than one employee benefit plan for investment and administrative purposes. Each of the plans participating in the trust has interests in the net assets of the underlying investment pools of the trusts. The investments for all our pension plans are recorded at estimated fair value, in compliance with the accounting guidance on fair value measurement. The following table presents our plan assets using the fair value hierarchy as of December 31, 2017 and 2016, respectively. The fair value hierarchy has three levels based on the methods used to determine the fair value. Level 1 assets refer to those asset values based on quoted market prices in active markets for identical assets at the measurement date. Level 2 assets refer to assets with values determined using significant other observable inputs, and Level 3 assets include values determined with non-observable Fair Value Level as of December 31, 2017 US Foreign Asset Category Level 1 Assets Measurement at NAV Level 1 Level 2 Level 3 Assets Measurement at NAV (Millions) Equity securities: U.S. large cap $ 21 $ 85 $ 3 $ 31 $ — $ 31 U.S. mid cap — — — 2 — — U.S. small cap — 15 — — — — Non-U.S. — 15 10 48 — 56 Non-U.S. — — — 12 — 9 Non-U.S. — — — 3 — — Emerging markets — 5 3 5 — 1 Debt securities: U.S. treasuries/government bonds — — 1 — — — U.S. corporate bonds — 3 — 1 — — U.S. other fixed income — 56 — — — — Non-U.S. — — 1 112 — 32 Non-U.S. — — 4 15 — 13 Non-U.S. — — — — — 1 Non-U.S. — — 2 — — — Real Estate: Non-U.S. — — 1 6 — — Other: Insurance contracts — — — 16 9 — Cash held in bank accounts 2 — 9 1 — — Total $ 23 $ 179 $ 34 $ 252 $ 9 $ 143 Fair Value Level as of December 31, 2016 US Foreign Asset Category Level 1 Asset Measurement at NAV Level 1 Level 2 Level 3 Asset Measurement at NAV (Millions) Equity securities: U.S. large cap $ 22 $ 77 $ 2 $ 30 $ — $ 26 U.S. mid cap — — 1 2 — — U.S. small cap — 15 — — — — Non-U.S. — — 7 67 — 46 Non-U.S. — 15 — 15 — 8 Non-U.S. — — — 10 — 1 Emerging markets — 5 2 3 — 1 Debt securities: U.S. treasuries/government bonds — — 1 — — — U.S. corporate bonds — 2 — 1 — — U.S. other fixed income — 54 — — — — Non-U.S. — — 1 38 — 29 Non-U.S. — — 4 23 — 12 Non-U.S. — — — — — 1 Non-U.S. — — 1 — — — Real Estate: Non-U.S. — — 1 5 — — Other: Insurance contracts — — — 13 9 — Cash held in bank accounts 2 — 7 2 — — Total $ 24 $ 168 $ 27 $ 209 $ 9 $ 124 Level 1 assets were valued using market prices based on daily net asset value (NAV) or prices available daily through a public stock exchange. 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 table below summarizes the changes in the fair value of the Level 3 assets: December 31, 2017 December 31, 2016 Level 3 Assets Level 3 Assets US Foreign US Foreign (Millions) (Millions) Balance at December 31 of the previous year $ — $ 9 $ — $ 8 Actual return on plan assets: Relating to assets still held at the reporting date — — — 1 Ending Balance at December 31 $ — $ 9 $ — $ 9 The following table contains information about significant concentrations of risk, including all individual assets that make up more than 5 percent of the total assets and any direct investments in Tenneco stock: Asset Category Fair Value Level Value Percentage of Total Assets (Millions) 2017: Tenneco Stock 1 $ 21 3.3 % 2016: Tenneco Stock 1 $ 22 4.0 % Our approach to determining expected return on plan asset assumptions evaluates both historical returns as well as estimates of future returns, and adjusts for any expected changes in the long-term outlook for the equity and fixed income markets for both our domestic and foreign plans. A summary of the change in benefit obligation, the change in plan assets, the development of net amount recognized, and the amounts recognized in the balance sheets for the pension plans and postretirement benefit plan follows: Pension Postretirement 2017 2016 2017 2016 US Foreign US Foreign US US (Millions) Change in benefit obligation: Benefit obligation at December 31 of the previous year $ 272 $ 438 $ 416 $ 425 $ 143 $ 141 Currency rate conversion — 42 — (38 ) — — Settlement (7 ) (3 ) (1 ) — — — Service cost 1 9 1 8 — — Interest cost 10 13 15 14 6 6 Administrative expenses/taxes paid — (2 ) — (1 ) — — Plan amendments — — — (1 ) — — Actuarial (gain)/loss 10 (9 ) (7 ) 50 12 5 Benefits paid (23 ) (18 ) (152 ) (20 ) (10 ) (9 ) Participants’ contributions — 1 — 1 — — Benefit obligation at December 31 $ 263 $ 471 $ 272 $ 438 $ 151 $ 143 Change in plan assets: Fair value at December 31 of the previous year $ 192 $ 369 $ 304 $ 355 $ — $ — Currency rate conversion — 35 — (33 ) — — Settlement (7 ) (3 ) (1 ) — — — Actual return on plan assets 22 42 21 50 — — Administrative expenses/taxes paid — (2 ) — (1 ) — — Employer contributions 18 14 20 17 10 9 Participants’ contributions — 1 — 1 — — Benefits paid (23 ) (18 ) (152 ) (20 ) (10 ) (9 ) Fair value at December 31 $ 202 $ 438 $ 192 $ 369 $ — $ — Development of net amount recognized: Unfunded status at December 31 $ (61 ) $ (33 ) $ (80 ) $ (69 ) $ (151 ) $ (143 ) Unrecognized cost: Actuarial loss 135 122 146 145 56 48 Prior service cost/(credit) — 3 — 4 (3 ) (4 ) Net amount recognized at December 31 $ 74 $ 92 $ 66 $ 80 $ (98 ) $ (99 ) Amounts recognized in the balance sheets as of December 31 Noncurrent assets $ — $ 28 $ — $ 9 $ — $ — Current liabilities (2 ) (3 ) (20 ) (2 ) (9 ) (10 ) Noncurrent liabilities (59 ) (58 ) (60 ) (76 ) (142 ) (133 ) Net amount recognized $ (61 ) $ (33 ) $ (80 ) $ (69 ) $ (151 ) $ (143 ) Assets of one plan may not be utilized to pay benefits of other plans. Additionally, the prepaid (accrued) pension cost has been recorded based upon certain actuarial estimates as described below. Those estimates are subject to revision in future periods given new facts or circumstances. Net periodic pension costs for the years 2017, 2016 and 2015, consist of the following components: 2017 2016 2015 US Foreign US Foreign US Foreign (Millions) Service cost—benefits earned during the year $ 1 $ 9 $ 1 $ 8 $ 1 $ 9 Interest cost (a) 10 13 15 14 17 15 Expected return on plan assets (a) (14 ) (25 ) (23 ) (20 ) (23 ) (21 ) Settlement loss (a) 8 1 72 — 4 — Net amortization: Actuarial loss (a) 5 9 8 7 8 8 Prior service cost (a) — 1 — 1 — 1 Net pension costs $ 10 $ 8 $ 73 $ 10 $ 7 $ 12 (a) Recorded in other expense. Amounts recognized in accumulated other comprehensive loss for pension benefits consist of the following components: 2017 2016 US Foreign US Foreign (Millions) Net actuarial loss $ 135 $ 122 $ 146 $ 145 Prior service cost — 3 — 4 $135 $125 $146 $149 Amounts recognized for pension and postretirement benefits in other comprehensive income for the year ended December 31, 2017 and 2016 include the following components: Year Ended December 31, 2017 2016 Before-Tax Amount Tax Benefit Net-of-Tax Amount Before-Tax Amount Tax Benefit Net-of-Tax Amount (Millions) Defined benefit pension and postretirement plans: Change in total actuarial gain (loss) $ 12 $ (4 ) $ 8 $ 51 $ (21 ) $ 30 Amortization of prior service cost included in net periodic pension and postretirement cost — — — (1 ) — (1 ) Amortization of actuarial gain (loss) included in net periodic pension and postretirement cost 26 (7 ) 19 20 (8 ) 12 Other comprehensive income—pension benefits $ 38 $ (11 ) $ 27 $ 70 $ (29 ) $ 41 In 2018, we expect to recognize the following amounts, which are currently reflected in accumulated other comprehensive loss, as components of net periodic benefit cost: 2018 US Foreign (Millions) Net actuarial loss $ 5 $ 7 Prior service cost — 1 $ 5 $ 8 The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2017 and 2016 were as follows: December 31, December 31, US Foreign US Foreign (Millions) Projected benefit obligation $ 263 $ 117 $ 272 $ 266 Accumulated benefit obligation 263 112 272 261 Fair value of plan assets 202 56 192 188 The following estimated benefit payments are payable from the pension plans to participants: Year US Foreign (Millions) 2018 $ 14 $ 20 2019 15 21 2020 16 23 2021 14 22 2022 16 23 2023-2027 76 128 The following assumptions were used in the accounting for the pension plans for the years of 2017, 2016, and 2015: 2017 2016 US Foreign US Foreign Weighted-average assumptions used to determine benefit obligations Discount rate 3.8 % 2.6 % 4.2 % 2.8 % Rate of compensation increase N/A 2.5 % N/A 2.5 % 2017 2016 2015 US Foreign US Foreign US Foreign Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.2 % 2.8 % 4.3 % 3.5 % 4.1 % 3.2 % Expected long-term return on plan assets 7.8 % 5.2 % 7.6 % 5.7 % 7.8 % 5.9 % Rate of compensation increase N/A 2.5 % N/A 2.7 % N/A 3.0 % We made contributions of $32 million to our pension plans during 2017. Based on current actuarial estimates, we believe we will be required to make contributions of $15 million to those plans during 2018. Pension contributions beyond 2018 will be required, but those amounts will vary based upon many factors, including the performance of our pension fund investments during 2018 and future discount rate changes. In February 2016, the Company launched a voluntary program to buy out active employees and retirees who have earned benefits in the U.S. pension plans. As of December 31, 2016, this program had been substantially completed with cash payments to those who elected to take the buyout made from pension plan assets in the fourth quarter of 2016. In connection with this program the Company contributed $18 million into the pension trust and recognized a non-cash non-cash We have life insurance plans which provided benefit to a majority of our U.S. employees. We also have postretirement plans for our U.S. employees hired before January 1, 2001. The plans cover salaried employees retiring on or after attaining age 55 who have at least 10 years of service with us. For hourly employees, the postretirement benefit plans generally cover employees who retire according to one of our hourly employee retirement plans. All of these benefits may be subject to deductibles, co-payment Net periodic postretirement benefit cost for the years 2017, 2016, and 2015, consists of the following components: 2017 2016 2015 (Millions) Service cost—benefits earned during the year $ — $ — $ — Interest on accumulated postretirement benefit obligation (a) 6 6 6 Net amortization: Actuarial loss (a) — 5 6 Prior service credit (a) (1 ) (1 ) (4 ) Prior period correction (a) 4 — — Net periodic postretirement benefit cost $ 9 $ 10 $ 8 (a) Recorded in other expense. In 2018, we expect to recognize the following amounts, which are currently reflected in accumulated other comprehensive loss, as components of net periodic benefit cost: 2018 (Millions) Net actuarial loss $ 6 Prior service credit (1 ) $ 5 The following estimated postretirement benefit payments are payable from the plan to participants: Year Postretirement Benefits (Millions) 2018 $ 9 2019 9 2020 9 2021 9 2022 9 2023-2027 45 We do not expect to receive any future subsidies under the Medicare Prescription Drug, Improvement, and Modernization Act. The weighted-average assumed health care cost trend rate used in determining the 2017 accumulated postretirement benefit obligation was 6.8 percent, declining to 4.5 percent by 2027. For 2016, the health care cost trend rate was 7.0 percent declining to 4.5 percent by 2026 and for 2015, the health care cost trend rate was 7.0 percent declining to 4.5 percent by 2026. The following assumptions were used in the accounting for postretirement cost for the years of 2017, 2016 and 2015: 2017 2016 Weighted-average assumptions used to determine benefit obligations Discount rate 3.8 % 4.2 % Rate of compensation increase N/A N/A 2017 2016 2015 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.2 % 4.3 % 4.1 % Rate of compensation increase N/A N/A N/A A one-percentage-point one-percentage-point Based on current actuarial estimates, we believe we will be required to make postretirement contributions of approximately $9 million during 2018. Effective January 1, 2012, the Tenneco Employee Stock Ownership Plan for Hourly Employees and the Tenneco Employee Stock Ownership Plan for Salaried Employees were merged into one plan called the Tenneco 401(k) Retirement Savings Plan (the “Retirement Savings Plan”). Under the plan, subject to limitations in the Internal Revenue Code, participants may elect to defer up to 75 percent of their salary through contributions to the plan, which are invested in selected mutual funds or used to buy our common stock. We match 100 percent of an employee’s contributions up to three percent of the employee’s salary and 50 percent of an employee’s contributions that are between three percent and five percent of the employee’s salary. In connection with freezing the defined benefit pension plans for nearly all U.S. based salaried and non-union |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | 11. Segment and Geographic Area Information In the first quarter of 2018, we revised our reportable segments to consist of the following three segments: Clean Air, Ride Performance and Aftermarket. The new reportable segments, which are also our operating segments, align with how the Chief Operating Decision Maker allocates resources and assesses performance against our key growth strategies. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the three operating segments as “Other.” We evaluate segment performance based primarily on earnings before interest expense, income taxes, and noncontrolling interests. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the “market value” of the products. Prior period segmentation has been retrospectively recast to reflect our current segmentation. Segment results for 2017, 2016 and 2015 are as follows: Segments Clean Ride Aftermarket Total Other Reclass & Total (Millions) At December 31, 2017, and for the Year Ended Revenues from external customers $ 6,216 $ 1,807 $ 1,251 $ 9,274 $ — $ — $ 9,274 Intersegment revenues 65 60 40 165 — (165 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 421 61 178 660 (243 ) — 417 Total assets 2,812 1,155 812 4,779 63 4,842 At December 31, 2016, and for the Year Ended Revenues from external customers $ 5,764 $ 1,593 $ 1,242 $ 8,599 $ — $ — $ 8,599 Intersegment revenues 108 47 37 192 — (192 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 432 97 191 720 (204 ) — 516 Total assets 2,559 959 781 4,299 — 47 4,346 At December 31, 2015, and for the Year Ended Revenues from external customers $ 5,377 $ 1,545 $ 1,259 $ 8,181 $ — $ — $ 8,181 Intersegment revenues 116 44 42 202 — (202 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 371 63 174 608 (100 ) — 508 Total assets 2,298 756 884 3,938 — 32 3,970 The following customers accounted for 10 percent or more of our net sales in the last three years. The net sales to both customers were across segments. Customer 2017 2016 2015 General Motors Company 14 % 17 % 15 % Ford Motor Company 13 % 13 % 14 % The following table shows information relating to the geographic regions in which we operate: Geographic Area United States China Germany Poland United Kingdom Other Foreign (a) Reclass & Elims Consolidated (Millions) At December 31, 2017, and for the Year Then Ended Revenues from external customers (b) $ 3,632 $ 1,283 $ 798 $ 488 $ 482 $ 2,591 $ — $ 9,274 Long-lived assets (c) 620 279 136 216 46 470 — 1,767 Total assets 1,831 988 304 383 205 1,221 (90 ) 4,842 At December 31, 2016, and for the Year Then Ended Revenues from external customers (b) $ 3,512 $ 1,186 $ 764 $ 385 $ 387 $ 2,365 $ — $ 8,599 Long-lived assets (c) 541 217 111 165 38 397 — 1,469 Total assets 1,897 795 231 322 130 1,119 (148 ) 4,346 At December 31, 2015, and for the Year Then Ended Revenues from external customers (b) $ 3,334 $ 1,101 $ 807 $ 250 $ 307 $ 2,382 $ — $ 8,181 Long-lived assets (c) 496 203 108 144 32 373 — 1,356 Total assets 1,726 699 258 275 101 1,027 (116 ) 3,970 (a) Revenues from external customers and long-lived assets for individual foreign countries other than China, Germany, Poland, and United Kingdom are not material. (b) Revenues are attributed to countries based on location of the shipper. (c) Long-lived assets include all long-term assets except goodwill, intangibles and deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Capital Commitments We estimate that expenditures aggregating approximately $149 million will be required after December 31, 2017 to complete facilities and projects authorized at such date, and we have made substantial commitments in connection with these facilities and projects. Lease Commitments Our facilities and equipment are generally leased under arrangements that are accounted for as operating leases. Total rental expense for the fiscal years ended December 31, 2017, 2016 and 2015 was $81 million, $74 million and $70 million, respectively. Future minimum operating lease payments at December 31, 2017 are as follows: (Millions) 2018 $ 46 2019 36 2020 30 2021 23 2022 18 Beyond 2022 25 Total minimum lease payments $ 178 Certain equipment is leased under long term agreements. Capital assets for these agreements were less than $1 million at both December 31, 2017 and 2016. The minimum lease payments under our non-cancelable Environmental Matters, Legal Proceedings and Product Warranties We are involved in environmental remediation matters, legal proceedings, claims (including warranty claims) and investigations. These matters are typically incidental to the conduct of our business and create the potential for contingent losses. We accrue for potential contingent losses when our review of available facts indicates that it is probable a loss has been incurred and the amount of the loss is reasonably estimable. Each quarter we assess our loss contingencies based upon currently available facts, existing technology, presently enacted laws and regulations and taking into consideration the likely effects of inflation and other societal and economic factors and record adjustments to these reserves as required. As an example, we consider all available evidence including prior experience in remediation of contaminated sites, other companies’ cleanup experiences and data released by the United States Environmental Protection Agency or other organizations when we evaluate our environmental remediation contingencies. All of our loss contingency estimates are subject to revision in future periods based on actual costs or new information. With respect to our environmental liabilities, where future cash flows are fixed or reliably determinable, we have discounted those liabilities. We evaluate recoveries separately from the liability and, when they are assured, recoveries are recorded and reported separately from the associated liability in our consolidated financial statements. Environmental Matters We are subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which we operate. We expense or capitalize, as appropriate, expenditures for ongoing compliance with environmental regulations that relate to current operations. We expense costs related to an existing condition caused by past operations that do not contribute to current or future revenue generation. As of December 31, 2017, we have the obligation to remediate or contribute towards the remediation of certain sites, including one Federal Superfund site. At December 31, 2017, our aggregated estimated share of environmental remediation costs for all these sites on a discounted basis was approximately $14 million, of which $2 million is recorded in other current liabilities and $12 million is recorded in deferred credits and other liabilities in our consolidated balance sheet. For those locations where the liability was discounted, the weighted average discount rate used was 2.3 percent. The undiscounted value of the estimated remediation costs was $17 million. Our expected payments of environmental remediation costs are estimated to be approximately $2 million in 2018, $1 million each year beginning 2019 through 2022 and $11 million in aggregate thereafter. Based on information known to us, we have established reserves that we believe are adequate for these costs. Although we believe these estimates of remediation costs are reasonable and are based on the latest available information, the costs are estimates and are subject to revision as more information becomes available about the extent of remediation required. At some sites, we expect that other parties will contribute to the remediation costs. In addition, certain environmental statutes provide that our liability could be joint and several, meaning that we could be required to pay in excess of our share of remediation costs. Our understanding of the financial strength of other potentially responsible parties at these sites has been considered, where appropriate, in our determination of our estimated liability. We do not believe that any potential costs associated with our current status as a potentially responsible party in the Federal Superfund site, or as a liable party at the other locations referenced herein, will be material to our consolidated financial position, results of operations, or liquidity. Antitrust Investigations and Litigation On March 25, 2014, representatives of the European Commission were at Tenneco GmbH’s Edenkoben, Germany administrative facility to gather information in connection with an ongoing global antitrust investigation concerning multiple automotive suppliers. On March 25, 2014, we also received a related subpoena from the U.S. Department of Justice (“DOJ”). On November 5, 2014, the DOJ granted us conditional leniency pursuant to an agreement we entered into under the Antitrust Division’s Corporate Leniency Policy. This agreement provides us with important benefits in exchange for our self-reporting of matters to the DOJ and our continuing full cooperation with the DOJ’s resulting investigation. For example, the DOJ will not bring any criminal antitrust prosecution against us, nor seek any criminal fines or penalties, in connection with the matters we reported to the DOJ. Additionally, there are limits on our liability related to any follow-on follow-on On April 27, 2017, Tenneco received notification from the European Commission (EC) that it has administratively closed its global antitrust inquiry regarding the production, assembly, and supply of complete exhaust systems. No charges against Tenneco or any other competitor were initiated at any time and the EC inquiry is now closed. Certain other competition agencies are also investigating possible violations of antitrust laws relating to products supplied by our company. We have cooperated and continue to cooperate fully with all of these antitrust investigations, and take other actions to minimize our potential exposure. Tenneco and certain of its competitors are also currently defendants in civil putative class action litigation in the United States and Canada. More related lawsuits may be filed, including in other jurisdictions. Plaintiffs in these cases generally allege that defendants have engaged in anticompetitive conduct, in violation of federal and state laws, relating to the sale of automotive exhaust systems or components thereof. Plaintiffs seek to recover, on behalf of themselves and various purported classes of purchasers, injunctive relief, damages and attorneys’ fees. However, as explained above, because we received conditional leniency from the DOJ, our civil liability in U.S. follow on actions is limited to single damages and we will not be jointly and severally liable with the other defendants, provided that we have satisfied our obligations under the DOJ leniency agreement and approval is granted by the presiding court. Typically, exposure for follow-on follow-on Following the EC’s decision to administratively close its antitrust inquiry into exhaust systems in 2017, Tenneco’s receipt of conditional leniency from the DOJ in 2014 and discussions during the third quarter of 2017 following the appointment of a special settlement master in the civil putative class action cases pending against Tenneco and/or certain of its competitors in the U.S., Tenneco continues to vigorously defend itself and/or take actions to minimize its potential exposure to matters pertaining to the global antitrust investigation, including engaging in settlement discussions when it is in the best interests of the company and its stockholders. For example, in October 2017, Tenneco settled an administrative action brought by Brazil’s competition authority for an amount that was not material. Additionally, in February 2018, Tenneco settled civil putative class action litigation in the United States brought by classes of direct purchasers, end-payors Our reserve for antitrust matters is based upon all currently available information and an assessment of the probability of events for those matters where Tenneco can make a reasonable estimate of the costs to resolve such outstanding matters. Tenneco’s estimate involves significant judgment, given the number, variety and potential outcomes of actual and potential claims, the uncertainty of future rulings and approvals by a court or other authority, the behavior or incentives of adverse parties or regulatory authorities, and other factors outside of the control of Tenneco. As a result, Tenneco’s reserve may change from time to time, and actual costs may vary. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, we do not expect that any such change in the reserve will have a material adverse impact on our annual consolidated financial position, results of operations or liquidity. Other Legal Proceedings, Claims and Investigations For many years we have been and continue to be subject to lawsuits initiated by claimants alleging health problems as a result of exposure to asbestos. Our current docket of active and inactive cases is less than 500 cases nationwide. A small number of claims have been asserted against one of our subsidiaries by railroad workers alleging exposure to asbestos products in railroad cars. The substantial majority of the remaining claims are related to alleged exposure to asbestos in our automotive products although a significant number of those claims appear also to involve occupational exposures sustained in industries other than automotive. We believe, based on scientific and other evidence, it is unlikely that claimants were exposed to asbestos by our former products and that, in any event, they would not be at increased risk of asbestos-related disease based on their work with these products. Further, many of these cases involve numerous defendants, with the number in some cases exceeding 100 defendants from a variety of industries. Additionally, in many cases the plaintiffs either do not specify any, or specify the jurisdictional minimum, dollar amount for damages. As major asbestos manufacturers and/or users continue to go out of business or file for bankruptcy, we may experience an increased number of these claims. We vigorously defend ourselves against these claims as part of our ordinary course of business. In future periods, we could be subject to cash costs or charges to earnings if any of these matters are resolved unfavorably to us. To date, with respect to claims that have proceeded sufficiently through the judicial process, we have regularly achieved favorable resolutions. Accordingly, we presently believe that these asbestos-related claims will not have a material adverse impact on our future consolidated financial position, results of operations or liquidity. We are also from time to time involved in other legal proceedings, claims or investigations. Some of these matters involve allegations of damages against us relating to environmental liabilities (including toxic tort, property damage and remediation), intellectual property matters (including patent, trademark and copyright infringement, and licensing disputes), personal injury claims (including injuries due to product failure, design or warning issues, and other product liability related matters), taxes, unclaimed property, employment matters, and commercial or contractual disputes, sometimes related to acquisitions or divestitures. Additionally, some of these matters involve allegations relating to legal compliance. For example, in July 2017 a complaint was filed against us in federal district court in Chicago, Illinois alleging that we misappropriated a third party’s trade secrets in connection with certain of our ride control products. While we vigorously defend ourselves against all of these legal proceedings, claims and investigations and take other actions to minimize our potential exposure, in future periods, we could be subject to cash costs or charges to earnings if any of these matters are resolved on unfavorable terms. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, including our assessment of the merits of the particular claim, except as described above under “Antitrust Investigations” and in this paragraph we do not expect the legal proceedings, claims or investigations currently pending against us will have any material adverse impact on our consolidated financial position, results of operations or liquidity. With respect to the trade secret claim described above, we are in the process of evaluating the claim but, at this stage of the case and given the inherent uncertainly of litigation, we are unable to estimate whether a loss is reasonably possible. While we do not believe that this litigation will have a material adverse effect on our annual consolidated financial position, results of operations or liquidity, we cannot assure you that this will be the case. Warranty Matters We provide warranties on some of our products. The warranty terms vary but range from one year up to limited lifetime warranties on some of our premium aftermarket products. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified with our products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. We actively study trends of our warranty claims and take action to improve product quality and minimize warranty claims. We believe that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. The reserve is included in both current and long-term liabilities on the balance sheet. Below is a table that shows the activity in the warranty accrual accounts: Year Ended December 31, 2017 2016 2015 (Millions) Beginning Balance $ 20 $ 23 $ 26 Accruals related to product warranties 16 12 15 Reductions for payments made (10 ) (15 ) (18 ) Ending Balance $ 26 $ 20 $ 23 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Condensed Consolidating Financial Statements | 13. Supplemental Guarantor Condensed Consolidating Financial Statements Basis of Presentation Substantially all of our existing and future material domestic 100% owned subsidiaries (which are referred to as the Guarantor Subsidiaries) fully and unconditionally guarantee our senior notes due in 2024 and 2026 on a joint and several basis. However, a subsidiary’s guarantee may be released in certain customary circumstances such as a sale of the subsidiary or all or substantially all of its assets in accordance with the indenture applicable to the notes. The Guarantor Subsidiaries are combined in the presentation below. These consolidating financial statements are presented on the equity method. Under this method, our investments are recorded at cost and adjusted for our ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. You should read the condensed consolidating financial information of the Guarantor Subsidiaries in connection with our condensed consolidated financial statements and related notes of which this note is an integral part. These consolidating financial statements have been updated subsequent to the filing of the Form 10-K Distributions There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us. STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,889 $ 5,385 $ — $ — $ 9,274 Affiliated companies 540 640 — (1,180 ) — 4,429 6,025 — (1,180 ) 9,274 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,769 5,220 — (1,180 ) 7,809 Goodwill impairment charge — 11 — — 11 Engineering, research, and development 77 81 — — 158 Selling, general, and administrative 352 284 — — 636 Depreciation and amortization of other intangibles 88 136 — — 224 4,286 5,732 — (1,180 ) 8,838 Other income (expense) Loss on sale of receivables (2 ) (3 ) — — (5 ) Other income (expense) (16 ) 55 — (53 ) (14 ) (18 ) 52 — (53 ) (19 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 125 345 — (53 ) 417 Interest expense— External (net of interest capitalized) 19 5 49 — 73 Affiliated companies (net of interest income) (15 ) 6 9 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 121 334 (58 ) (53 ) 344 Income tax (benefit) expense (12 ) 82 — — 70 Equity in net income from affiliated companies 149 — 265 (414 ) — Net income 282 252 207 (467 ) 274 Less: Net income attributable to noncontrolling interests — 67 — — 67 Net income attributable to Tenneco Inc. $ 282 $ 185 $ 207 $ (467 ) $ 207 Comprehensive income attributable to Tenneco Inc. $ 282 $ 185 $ 331 $ (467 ) $ 331 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,865 $ 4,734 $ — $ — $ 8,599 Affiliated companies 526 747 — (1,273 ) — 4,391 5,481 — (1,273 ) 8,599 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,714 4,675 — (1,273 ) 7,116 Engineering, research, and development 76 78 — — 154 Selling, general, and administrative 235 277 1 — 513 Depreciation and amortization of other intangibles 86 126 — — 212 4,111 5,156 1 (1,273 ) 7,995 Other income (expense) Loss on sale of receivables (2 ) (3 ) — — (5 ) Other income (expense) (91 ) 23 — (15 ) (83 ) (93 ) 20 — (15 ) (88 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 187 345 (1 ) (15 ) 516 Interest expense— External (net of interest capitalized) (2 ) 4 90 — 92 Affiliated companies (net of interest income) (12 ) 7 5 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 201 334 (96 ) (15 ) 424 Income tax (benefit) expense (97 ) 97 — — — Equity in net income from affiliated companies 166 — 452 (618 ) — Net income 464 237 356 (633 ) 424 Less: Net income attributable to noncontrolling interests — 68 — — 68 Net income attributable to Tenneco Inc. $ 464 $ 169 $ 356 $ (633 ) $ 356 Comprehensive income attributable to Tenneco Inc. $ 464 $ 169 $ 356 $ (633 ) $ 356 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,683 $ 4,498 $ — $ — $ 8,181 Affiliated companies 411 558 — (969 ) — 4,094 5,056 — (969 ) 8,181 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,410 4,380 — (969 ) 6,821 Engineering, research, and development 70 76 — — 146 Selling, general, and administrative 184 295 3 — 482 Depreciation and amortization of other intangibles 87 116 — — 203 3,751 4,867 3 (969 ) 7,652 Other income (expense) Loss on sale of receivables (1 ) (3 ) — — (4 ) Other income (expense) 28 3 — (48 ) (17 ) 27 — — (48 ) (21 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 370 189 (3 ) (48 ) 508 Interest expense— External (net of interest capitalized) (2 ) 3 66 — 67 Affiliated companies (net of interest income) 54 (56 ) 2 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 318 242 (71 ) (48 ) 441 Income tax expense 43 103 — — 146 Equity in net income from affiliated companies 78 — 312 (390 ) — Net income 353 139 241 (438 ) 295 Less: Net income attributable to noncontrolling interests — 54 — — 54 Net income attributable to Tenneco Inc. $ 353 $ 85 $ 241 $ (438 ) $ 241 Comprehensive income attributable to Tenneco Inc. $ 353 $ 85 $ 121 $ (438 ) $ 121 BALANCE SHEET December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 7 $ 308 $ — $ — $ 315 Restricted cash — 3 — — 3 Receivables, net 402 1,567 — (648 ) 1,321 Inventories 383 486 — — 869 Prepayments and other 99 192 — — 291 Total current assets 891 2,556 — (648 ) 2,799 Other assets: Investment in affiliated companies 1,389 — 1,258 (2,647 ) — Notes and advances receivable from affiliates 791 19,119 3,967 (23,877 ) — Long-term receivables, net 8 1 — — 9 Goodwill 22 27 — — 49 Intangibles, net 5 17 — — 22 Deferred income taxes 161 43 — — 204 Other 66 78 — — 144 2,442 19,285 5,225 (26,524 ) 428 Plant, property, and equipment, at cost 1,478 2,530 — — 4,008 Less—Accumulated depreciation and amortization (934 ) (1,459 ) — — (2,393 ) 544 1,071 — — 1,615 Total assets $ 3,877 $ 22,912 $ 5,225 $ (27,172 ) $ 4,842 LIABILITIES AND SHAREHOLDERS’ Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt—non-affiliated $ — $ 83 $ — $ — $ 83 Short-term debt—affiliated 408 148 — (556 ) — Accounts payable 562 1,232 — (89 ) 1,705 Accrued taxes 8 37 — — 45 Other 203 221 12 (3 ) 433 Total current liabilities 1,181 1,721 12 (648 ) 2,266 Long-term debt—non-affiliated 632 12 714 — 1,358 Long-term debt—affiliated 1,093 18,981 3,803 (23,877 ) — Deferred income taxes — 11 — — 11 Pension, postretirement benefits and other liabilities 296 127 — — 423 Commitments and contingencies Total liabilities 3,202 20,852 4,529 (24,525 ) 4,058 Redeemable noncontrolling interests — 42 — — 42 Tenneco Inc. Shareholders’ equity 675 1,972 696 (2,647 ) 696 Noncontrolling interests — 46 — — 46 Total equity 675 2,018 696 (2,647 ) 742 Total liabilities, redeemable noncontrolling interests and equity $ 3,877 $ 22,912 $ 5,225 $ (27,172 ) $ 4,842 BALANCE SHEET December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 338 $ — $ — $ 347 Restricted cash — 2 — — 2 Receivables, net 386 1,412 — (504 ) 1,294 Inventories 361 369 — — 730 Prepayments and other 62 167 — — 229 Total current assets 818 2,288 — (504 ) 2,602 Other assets: Investment in affiliated companies 1,211 — 1,207 (2,418 ) — Notes and advances receivable from affiliates 939 16,529 4,781 (22,249 ) — Long-term receivables, net 9 — — — 9 Goodwill 22 35 — — 57 Intangibles, net 7 12 — — 19 Deferred income taxes 47 23 129 — 199 Other 46 49 8 — 103 2,281 16,648 6,125 (24,667 ) 387 Plant, property, and equipment, at cost 1,371 2,177 — — 3,548 Less—Accumulated depreciation and amortization (895 ) (1,296 ) — — (2,191 ) 476 881 — — 1,357 Total assets $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt—non-affiliated $ — $ 75 $ 15 $ — $ 90 Short-term debt—affiliated 167 187 — (354 ) — Accounts payable 562 1,027 — (88 ) 1,501 Accrued taxes 4 35 — — 39 Other 147 243 15 (62 ) 343 Total current liabilities 880 1,567 30 (504 ) 1,973 Long-term debt—non-affiliated — 12 1,282 — 1,294 Long-term debt—affiliated 1,543 16,466 4,240 (22,249 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 297 115 — — 412 Commitments and contingencies Total liabilities 2,720 18,167 5,552 (22,753 ) 3,686 Redeemable noncontrolling interests — 40 — — 40 Tenneco Inc. Shareholders’ equity 855 1,563 573 (2,418 ) 573 Noncontrolling interests — 47 — — 47 Total equity 855 1,610 573 (2,418 ) 620 Total liabilities, redeemable noncontrolling interests and equity $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 STATEMENT OF CASH FLOWS Year Ended December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 284 $ 290 $ (4 ) $ (53 ) $ 517 Investing Activities Proceeds from sale of assets 3 5 — — 8 Proceeds from sale of equity interest — 9 — — 9 Cash payments for plant, property, and equipment (148 ) (246 ) — — (394 ) Cash payments for software related intangible assets (16 ) (9 ) — — (25 ) Proceeds from deferred purchase price of factored receivables — 112 — — 112 Other (4 ) (6 ) (10 ) Net cash used by investing activities (165 ) (135 ) — — (300 ) Financing Activities Cash dividends — — (53 ) — (53 ) Retirement of long-term debt (10 ) (3 ) (6 ) — (19 ) Issuance of long-term debt 400 1 (264 ) — 137 Debt issuance cost on long-term debt (8 ) — — — (8 ) Purchase of common stock under the share repurchase program — — (169 ) — (169 ) Issuance of common shares — — (1 ) — (1 ) Decrease in bank overdrafts — (7 ) — — (7 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt 246 5 (318 ) — (67 ) Intercompany dividends and net (decrease) increase in intercompany obligations (749 ) (119 ) 815 53 — Distribution to noncontrolling interests partners — (64 ) — — (64 ) Net cash (used) provided by financing activities (121 ) (187 ) 4 53 (251 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 3 — — 3 Increase in cash, cash equivalents and restricted cash (2 ) (29 ) — — (31 ) Cash, cash equivalents and restricted cash, January 1 9 340 — — 349 Cash, cash equivalents and restricted cash, December 31 (Note) $ 7 $ 311 $ — $ — $ 318 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Year Ended December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 176 $ 190 $ 23 $ (15 ) $ 374 Investing Activities Proceeds from sale of assets — 6 — — 6 Cash payments for plant, property, and equipment (117 ) (208 ) — — (325 ) Cash payments for software related intangible assets (13 ) (7 ) — — (20 ) Proceeds from deferred purchase price of factored receivables — 110 — — 110 Net cash used by investing activities (130 ) (99 ) — — (229 ) Financing Activities Retirement of long-term debt — (16 ) (515 ) — (531 ) Issuance of long-term debt — 9 500 — 509 Debt issuance cost on long-term debt — — (9 ) — (9 ) Purchase of common stock under the share repurchase program — — (225 ) — (225 ) Issuance of common shares — — 13 — 13 Increase in bank overdrafts — 10 — — 10 Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable — 5 197 — 202 Intercompany dividends and net (decrease) increase in intercompany obligations (39 ) 8 16 15 — Distribution to noncontrolling interests partners — (55 ) — — (55 ) Net cash used by financing activities (39 ) (39 ) (23 ) 15 (86 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 2 — — 2 Increase in cash, cash equivalents and restricted cash 7 54 — — 61 Cash, cash equivalents and restricted cash, January 1 2 286 — — 288 Cash, cash equivalents and restricted cash, December 31 (Note) $ 9 $ 340 $ — $ — $ 349 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided by operating activities $ 204 $ 198 $ 60 $ (47 ) $ 415 Investing Activities Proceeds from sale of assets — 4 — — 4 Cash payments for plant, property, and equipment (114 ) (172 ) — — (286 ) Cash payments for software related intangible assets (16 ) (7 ) — — (23 ) Proceeds from deferred purchase price of factored receivables — 113 113 Net cash used by investing activities (130 ) (62 ) — — (192 ) Financing Activities Retirement of long-term debt — (22 ) (15 ) — (37 ) Issuance of long-term debt — 1 — — 1 Debt issuance cost on long-term debt — — (1 ) — (1 ) Tax impact from stock-based compensation — — — — — Purchase of common stock under the share repurchase program — — (213 ) — (213 ) Issuance of common shares — — 1 — 1 Decrease in bank overdrafts — (22 ) — — (22 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable — 20 82 — 102 Net increase in short-term borrowings secured by accounts receivable — — 30 — 30 Intercompany dividends and net increase (decrease) in intercompany obligations (82 ) (21 ) 56 47 — Distribution to noncontrolling interests partners — (44 ) — — (44 ) Net cash used by financing activities (82 ) (88 ) (60 ) 47 (183 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — (37 ) — — (37 ) (Decrease) increase in cash, cash equivalents and restricted cash (8 ) 11 — — 3 Cash, cash equivalents and restricted cash, January 1 10 275 — — 285 Cash, cash equivalents and restricted cash, December 31 (Note) $ 2 $ 286 $ — $ — $ 288 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Dividend On February 7, 2018, our Board of Directors declared a cash dividend of $0.25, payable on March 22, 2018 to shareholders of record as of March 6, 2018. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 15. Quarterly Financial Data (Unaudited) Quarter Net Sales and Operating Revenues Cost of Sales (Excluding Depreciation and Amortization) Earnings Before Interest Expense, Income Taxes and Noncontrolling Interests Net Income Attributable to Tenneco Inc. (Millions) 2017 1st $ 2,292 $ 1,929 $ 121 $ 59 2nd 2,317 1,949 27 (3 ) 3rd 2,274 1,911 134 83 4th 2,391 2,020 135 68 $ 9,274 $ 7,809 $ 417 $ 207 2016 1st $ 2,136 $ 1,769 $ 124 $ 57 2nd 2,212 1,814 171 82 3rd 2,096 1,741 150 179 4th 2,155 1,792 71 38 $ 8,599 $ 7,116 $ 516 $ 356 Quarter Basic Earnings per Share of Common Stock Diluted Earnings per Share of Common Stock 2017 1st $ 1.10 $ 1.09 2nd (0.05 ) (0.05 ) 3rd 1.57 1.57 4th 1.33 1.33 Full Year 3.93 3.91 2016 1st $ 1.00 $ 0.99 2nd 1.44 1.43 3rd 3.22 3.19 4th 0.70 0.69 Full Year 6.36 6.31 Note: The sum of the quarters may not equal the total of the respective year’s earnings per share on either a basic or diluted basis due to changes in the weighted average shares outstanding throughout the year. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II TENNECO INC. AND CONSOLIDATED SUBSIDIARIES SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year (Millions) Allowance for Doubtful Accounts and Notes Receivable Deducted from Assets to Which it Applies: Year Ended December 31, 2017 $ 16 1 — 1 $ 16 Year Ended December 31, 2016 $ 16 1 — 1 $ 16 Year Ended December 31, 2015 $ 16 4 — 4 $ 16 Description Balance at Beginning of Year Provision Allowance Other Balance at End of Year (Millions) Deferred Tax Assets- Valuation Allowance Year Ended December 31, 2017 $ 145 (1 ) — 19 $ 163 Year Ended December 31, 2016 $ 127 18 — — $ 145 Year Ended December 31, 2015 $ 139 15 (3 ) (24 ) $ 127 (a) Related to changes in foreign currency exchange rates, primarily the euro, in 2017. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation and Presentation | Consolidation and Presentation Our consolidated financial statements include all majority-owned subsidiaries. We have eliminated intercompany transactions. We have evaluated all subsequent events through the date our financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, among others, allowances for doubtful receivables, promotional and product returns, income taxes, pension and postretirement benefit plans, and contingencies. These items are covered in more detail in the accompanying Footnotes (See Note 1, Note 7, Note 10, and Note 12). Actual results could differ from those estimates. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests We have noncontrolling interests in five joint ventures with redemption features that could require us to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of our subsidiaries. We do not believe that it is probable that the redemption features in any of these joint venture agreements will be triggered. However, the redemption of these shares is not solely within our control. Accordingly, the related noncontrolling interests are presented as “Redeemable noncontrolling interests” in the temporary equity section of our consolidated balance sheets. |
Inventories | Inventories Our inventories are stated at the lower of cost or market value using the first-in, first-out |
Goodwill and Intangibles, net | Goodwill and Intangibles, net We evaluate goodwill for impairment in the fourth quarter of each year, or more frequently if events indicate it is warranted. In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2017-04, two-step one-step We compare the estimated fair value of our reporting units with goodwill to the carrying value of the unit’s net assets to determine if a goodwill impairment exists. We estimate the fair value of each reporting unit using the income approach which is based on the present value of estimated future cash flows. The income approach is dependent on a number of factors, including estimates of market trends, forecasted revenues and expenses, capital expenditures, weighted average cost of capital and other variables. A separate discount rate derived by a combination of published sources, internal estimates and weighted based on our debt to equity ratio, was used to calculate the discounted cash flows for each of our reporting units. These estimates are based on assumptions that we believe to be reasonable, but which are inherently uncertain and outside of the control of management. If the carrying value of our reporting units exceeds their current fair value as determined based on discounted future cash flows of the related business, the goodwill is considered impaired. As a result, a goodwill impairment loss would be measured at the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. As a result of our goodwill impairment evaluation in the fourth quarter of 2017, we determined that the estimated fair value of the Europe and South America Ride Performance reporting unit was lower than its carrying value. Accordingly, we recorded a goodwill impairment charge of $11 million in the fourth quarter. We reached this determination based on updated long-term projections for the Europe and South America Ride Performance reporting unit provided by the Company’s annual budgeting and strategic planning process, which is completed in the fourth quarter. The 2017 annual budgeting and strategic planning process indicated that the reporting unit’s recovery period will be longer than previously expected. In the fourth quarter of 2017, the estimated fair value of our other reporting units substantially exceeded the carrying value of their assets and liabilities as of the testing date for goodwill impairment. At December 31, 2017, accumulated goodwill impairment charges include $306 million related to our North America Ride Performance reporting unit, $43 million related to our Europe and South America Ride Performance reporting unit and $11 million related to our Asia Pacific Ride Performance reporting unit. In the fourth quarter of 2016 and 2015, the estimated fair value of each of our reporting units exceeded the carrying value of their assets and liabilities as of the testing date for goodwill impairment. We have capitalized certain intangible assets, primarily technology rights, trademarks and patents, based on their estimated fair value at the date we acquired them. We amortize our finite useful life intangible assets on a straight-line basis over periods ranging from 3 to 50 years. Amortization of intangibles amounted to $3 million in both 2017 and 2016, and $5 million in 2015, and are included in the statements of income caption “Depreciation and amortization of intangibles.” Estimated amortization of intangible assets over the next five years is expected to be $5 million in 2018, $4 million in 2019, $4 million in 2020, $3 million in 2021 and $2 million in 2022. |
Plant, Property, and Equipment, at Cost | Plant, Property, and Equipment, at Cost We depreciate these properties excluding land on a straight-line basis over the estimated useful lives of the assets. Useful lives range from 10 to 50 years for buildings and improvements and from 3 to 25 years for machinery and equipment. |
Notes and Accounts Receivable and Allowance for Doubtful Accounts | Notes and Accounts Receivable and Allowance for Doubtful Accounts Receivables consist of amounts billed and currently due from customers and unbilled pre-production |
Pre-production Design and Development and Tooling Assets | Pre-production We expense pre-production pre-production in-process |
Internal Use Software Assets | Internal Use Software Assets We capitalize certain costs related to the purchase and development of software that we use in our business operations. We amortize the costs attributable to these software systems over their estimated useful lives, ranging from 3 to 12 years, based on various factors such as the effects of obsolescence, technology, and other economic factors. Capitalized software development costs, net of amortization, were $79 million and $66 million at December 31, 2017 and 2016, respectively, and are recorded in other long-term assets. Amortization of software development costs was approximately $15 million, $12 million and $13 million for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively, and is included in the statements of income (loss) caption “Depreciation and amortization of intangibles.” 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. |
Accounts Payable | Accounts Payable Accounts payable included $77 million and $99 million at December 31, 2017 and December 31, 2016, respectively, for accrued compensation and $20 million and $27 million at December 31, 2017 and December 31, 2016, respectively, for bank overdrafts at our European subsidiaries. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities 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 their respective tax values, and net operating losses (“NOL”) and tax credit carryforwards on a taxing jurisdiction basis. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which we expect the temporary differences to be recovered or paid. We evaluate our deferred tax assets quarterly to determine if valuation allowances are required or should be adjusted. U.S. GAAP requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. 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. Valuation allowances have been established in certain foreign jurisdictions for deferred tax assets based on a “more likely than not” threshold. The ability to realize deferred tax assets depends on our ability to generate sufficient taxable income within the carryforward periods provided for in the tax law for each tax jurisdiction. We have considered the following possible sources of taxable income when assessing the realization of our deferred tax assets: • Future reversals of existing taxable temporary differences; • Taxable income or loss, based on recent results, exclusive of reversing temporary differences and carryforwards; • Tax-planning • Taxable income in prior carryback years if carryback is permitted under the relevant tax law. The valuation allowances recorded against deferred tax assets generated by taxable losses in foreign jurisdictions will impact our provision for income taxes until the valuation allowances are released. Our 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. |
Revenue Recognition | Revenue Recognition We recognize revenue for sales to our original equipment and aftermarket customers when title and risk of loss passes to the customers under the terms of our arrangements with those customers, which is usually at the time of shipment from our plants or distribution centers. Generally, in connection with the sale of exhaust systems to certain original equipment manufacturers, we purchase catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of our customers which are used in the assembled system. These substrates are included in our inventory and “passed through” to the customer at our cost, plus a small margin, since we take title to the inventory and are responsible for both the delivery and quality of the finished product. Revenues recognized for substrate sales were $2,187 million, $2,028 million and $1,888 million in 2017, 2016 and 2015, respectively. For our aftermarket customers, we provide for promotional incentives and returns at the time of sale. Estimates are based upon the terms of the incentives and historical experience with returns. Certain taxes assessed by governmental authorities on revenue producing transactions, such as value added taxes, are excluded from revenue and recorded on a net basis. Shipping and handling costs billed to customers are included in revenues and the related costs are included in cost of sales in our consolidated statements of income. |
Warranty Reserves | Warranty Reserves Where we have offered product warranty, we also provide for warranty costs. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified on OE products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims and upon specific warranty issues as they arise. The warranty terms vary but range from one year up to limited lifetime warranties on some of our premium aftermarket products. We actively study trends of our warranty claims and take action to improve product quality and minimize warranty claims. While we have not experienced any material differences between these estimates and our actual costs, it is reasonably possible that future warranty issues could arise that could have a significant impact on our consolidated financial statements. |
Earnings Per Share | Earnings Per Share We compute basic earnings per share by dividing income available to common shareholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that we adjust 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, we adjust income available to common shareholders to include any changes in income or loss that would result from the assumed issuance of the dilutive common shares. See Note 2 to the consolidated financial statements. |
Engineering, Research and Development | Engineering, Research and Development We expense engineering, research, and development costs as they are incurred. Engineering, research, and development expenses were $158 million for 2017, $154 million for 2016, and $146 million for 2015, net of reimbursements from our customers. Our customers reimburse us for engineering, research, and development costs on some platforms when we prepare prototypes and incur costs before platform awards. Our engineering, research, and development expense for 2017, 2016 and 2015 has been reduced by $164 million, $137 million and $145 million, respectively, for these reimbursements. |
Advertising and Promotion Expenses | Advertising and Promotion Expenses We expense advertising and promotion expenses as they are incurred. Advertising and promotion expenses were $40 million, $40 million, and $54 million for the years ended December 31, 2017, 2016, and 2015, respectively. |
Foreign Currency | Foreign Currency We translate the consolidated financial statements of foreign subsidiaries into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted-average exchange rate for revenues and expenses in each period. We record translation adjustments for those subsidiaries whose local currency is their functional currency as a component of accumulated other comprehensive income (loss) in shareholders’ equity. We recognize transaction gains and losses arising from fluctuations in currency exchange rates on transactions denominated in currencies other than the functional currency in earnings as incurred, except for those intercompany balances which are designated as long-term investments. Our results include foreign currency transaction losses of $4 million in 2017, gains of $1 million in 2016 and losses of $6 million in 2015. The amounts are recorded in cost of sales. |
Risk Management Activities | We use derivative financial instruments, principally foreign currency forward purchase and sales contracts with terms of less than one year, to hedge our exposure to changes in foreign currency exchange rates. Our primary exposure to changes in foreign currency rates results from intercompany loans made between affiliates to minimize the need for borrowings from third parties. Additionally, we enter into foreign currency forward purchase and sale contracts to mitigate our exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. We manage counter-party credit risk by entering into derivative financial instruments with major financial institutions that can be expected to fully perform under the terms of such agreements. We do not enter into derivative financial instruments for speculative purposes. In managing our foreign currency exposures, we identify and aggregate existing offsetting positions and then hedge residual exposures through third-party derivative contracts. The fair value of our foreign currency forward contracts was a net liability position of less than $1 million at both December 31, 2017 and December 31, 2016 and is based on an internally developed model which incorporates observable inputs including quoted spot rates, forward exchange rates and discounted future expected cash flows utilizing market interest rates with similar quality and maturity characteristics. We record the change in fair value of these foreign currency forward contracts as part of currency gains (losses) within cost of sales in the consolidated statements of income. The fair value of foreign currency forward contracts are recorded in prepayments and other current assets or other current liabilities in the consolidated balance sheet. |
New Accounting Pronouncements | New Accounting Pronouncements Effective January 1, 2018, we adopted Accounting Standard Update (ASU) 2017-07, Retirement Benefits non-service Effective January 1, 2018, we adopted ASU 2016-15, non-cash Effective January 1, 2018, we adopted ASU 2016-18, In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update 2018-02, In January 2017, the FASB issued Accounting Standard Update 2017-04, two-step one-step In October 2016, the FASB issued Accounting Standard Update 2016-16, In March 2016, the FASB issued Accounting Standard Update 2016-09, • We recorded a tax benefit of $2 million within income tax expense for the year ended December 31, 2017 related to the excess tax benefit on share-based awards. Prior to adoption, this amount would have been recorded as premium on common stock and other capital surplus. • We no longer reclassify the excess tax benefit from operating activities to financing activities in the statement of cash flows. Cash payments made to the taxing authorities on employees’ behalf for withheld shares are presented as financing activities. Tenneco elected to apply this change in presentation retrospectively and thus prior periods have been adjusted. • We excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the quarter ended December 31, 2017. The impact was not material. In February 2016, the FASB issued Accounting Standard Update 2016-02, In May 2014, the FASB issued an amendment on revenue recognition. The amendment in this update creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendment supersedes the cost guidance in Subtopic 605-35, 340-40, one-year The guidance permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. We adopted the guidance effective January 1, 2018 using the modified retrospective method by recognizing the cumulative effect in equity at the date of initial application. We have established a cross-functional coordinated team to implement the guidance related to the recognition of revenue from contracts with customers. We are finalizing the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing internal controls over financial reporting and the enhanced disclosure requirements of the new guidance. Under current guidance, we generally recognize revenue when products are shipped and risk of loss has transferred to the customer. Under the new requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment will require us to recognize revenue over time during production. Our findings to date indicate only a small number of our customers provide an enforceable right to payment and therefore would be recognized over time. The cumulative effect in equity at the date of initial application of this change in accounting is not expected to be material. In addition, we have assessed pricing provisions contained in certain of our customer contracts. Certain price adjustments if they are determined to represent an option to purchase additional product at a reduced price could grant a material right to the customer and require a deferral of revenue. While Tenneco pricing provisions contained in customer contracts are generally reflective of market conditions and customary industry pricing practices, some may provide the customer with a material right. Based on our evaluation, no pricing provisions have been considered to represent a material right. We have also evaluated how the new guidance may affect our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production |
Restricted Net Assets | Restricted Net Assets In certain countries where we operate, transfers of funds out of such countries by way of dividends, loans or advances are subject to certain central bank restrictions which require approval from the central bank authorities prior to transferring funds out of these countries. The countries in which we operate that have such restrictions include China, South Africa, and Thailand. The net asset balance of our subsidiaries in the countries in which we operate that have such restrictions was $406 million and $323 million as of December 31, 2017 and 2016, respectively. These central banking restrictions do not have a significant effect on our ability to manage liquidity on a global basis. |
Summary of Accounting Policie24
Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Redeemable Noncontrolling Interests | The following is a rollforward of activity in our redeemable noncontrolling interests for the years ending December 31, 2017, 2016 and 2015, respectively: 2017 2016 2015 (Millions) Balance January 1 $ 40 $ 41 $ 34 Net income attributable to redeemable noncontrolling interests 36 36 32 Other comprehensive income (loss) 3 (2 ) (1 ) Dividends declared (37 ) (35 ) (24 ) Balance December 31 $ 42 $ 40 $ 41 |
Inventories by Major Classification | At December 31, 2017 and 2016, inventory by major classification was as follows: 2017 2016 (Millions) Finished goods $ 349 $ 284 Work in process 268 245 Raw materials 178 137 Materials and supplies 74 64 $869 $730 |
Changes in Net Carrying Amount of Goodwill | The changes in the net carrying amount of goodwill for the years ended December 31, 2017, 2016 and 2015 were as follows: Clean Air Ride Aftermarket Total (Millions) Balance at December 31, 2015 $ 14 $ 22 $ 24 $ 60 Translation Adjustment (1 ) (2 ) — (3 ) Balance at December 31, 2016 13 20 24 57 Translation Adjustment 2 — 1 3 Goodwill Impairment Charge — (7 ) (4 ) (11 ) Balance at December 31, 2017 $ 15 $ 13 $ 21 $ 49 |
Carrying Amount and Accumulated Amortization of Finite Useful Life Intangible Assets | The carrying amount and accumulated amortization of our finite useful life intangible assets were as follows: December 31, 2017 December 31, 2016 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization (Millions) (Millions) Customer contract $ 8 $ (5 ) $ 8 $ (5 ) Patents 1 (1 ) 1 (1 ) Technology rights 29 (23 ) 29 (21 ) Other 15 (2 ) 9 (1 ) Total $ 53 $ (31 ) $ 47 $ (28 ) |
Property, Plant and Equipment | At December 31, 2017 and 2016, plant, property, and equipment, at cost, by major category were as follows: 2017 2016 (Millions) Land, buildings, and improvements $ 635 $ 568 Machinery and equipment 2,983 2,638 Other, including construction in progress 390 342 $4,008 $3,548 |
The effects of adopting the new standard on our consolidated financial statements | The following tables summarize the effects of adopting the new standard on our consolidated financial statements: Year Ended December 31, 2017 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 7,812 $ (3 ) $ 7,809 Selling, general, and administrative 648 (12 ) 636 Other (income) expense (1 ) 15 14 Year Ended December 31, 2016 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 7,123 $ (7 ) $ 7,116 Selling, general, and administrative 589 (76 ) 513 Other expense — 83 83 Year Ended December 31, 2015 Previously Effect of As (Millions) Consolidated Statement of Income Cost of sales $ 6,828 $ (7 ) $ 6,821 Selling, general, and administrative 491 (9 ) 482 Other expense 1 16 17 The following tables summarize the effects of adopting ASU 2016-18 2016-15 Year Ended December 31, 2017 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Decrease (increase) in receivables $ 31 $ — $ (112 ) $ (81 ) Net cash provided by operating activities 629 — (112 ) 517 Change in restricted cash $ (1 ) $ 1 $ — $ — Proceeds from deferred purchase price of factored receivables — — 112 112 Net cash used by investing activities (413 ) 1 112 (300 ) Decrease in cash, cash equivalents and restricted cash $ (32 ) $ 1 $ — $ (31 ) Cash, cash equivalents and restricted cash, January 1 347 2 — 349 Cash, cash equivalents and restricted cash, December 31 $ 315 $ 3 $ — $ 318 Year Ended December 31, 2016 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Increase in receivables $ (215 ) $ — $ (110 ) $ (325 ) Net cash provided by operating activities 484 — (110 ) 374 Change in restricted cash $ (1 ) $ 1 $ — $ — Proceeds from deferred purchase price of factored receivables — — 110 110 Net cash used by investing activities (340 ) 1 110 (229 ) Increase in cash, cash equivalents and restricted cash $ 60 $ 1 $ — $ 61 Cash, cash equivalents and restricted cash, January 1 287 1 — 288 Cash, cash equivalents and restricted cash, December 31 $ 347 $ 2 $ — $ 349 Year Ended December 31, 2015 Previously Effect of ASU 2016-18 Effect of ASU 2016-15 As Adjusted (Millions) Consolidated Statement of Cash Flows Increase in receivables $ (90 ) $ — $ (113 ) $ (203 ) Net cash provided by operating activities 528 — (113 ) 415 Change in restricted cash $ 2 $ (2 ) $ — $ — Proceeds from deferred purchase price of factored receivables — — 113 113 Net cash used by investing activities (303 ) (2 ) 113 (192 ) Increase in cash, cash equivalents and restricted cash $ 5 $ (2 ) $ — $ 3 Cash, cash equivalents and restricted cash, January 1 282 3 — 285 Cash, cash equivalents and restricted cash, December 31 $ 287 $ 1 $ — $ 288 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share of Common Stock | Earnings per share of common stock outstanding were computed as follows: Year Ended December 31, 2017 2016 2015 (Millions Except Share and Per Share Amounts) Basic earnings per share— Net income attributable to Tenneco Inc. $ 207 $ 356 $ 241 Average shares of common stock outstanding 52,796,184 55,939,135 59,678,309 Earnings per average share of common stock $ 3.93 $ 6.36 $ 4.05 Diluted earnings per share— Net income attributable to Tenneco Inc. $ 207 $ 356 $ 241 Average shares of common stock outstanding 52,796,184 55,939,135 59,678,309 Effect of dilutive securities: Restricted stock 111,062 175,513 96,168 Stock options 119,665 292,788 418,673 Average shares of common stock outstanding including dilutive securities 53,026,911 56,407,436 60,193,150 Earnings per average share of common stock $ 3.91 $ 6.31 $ 4.01 |
Restructuring and Other Charg26
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Roll Forward of Restructuring Reserve | Amounts related to activities that are part of our restructuring plans are as follows: December 31, 2016 Restructuring Reserve 2017 Expenses 2017 Cash Payments Impact of December 31, 2017 Restructuring Reserve (Millions) Employee Severance, Termination Benefits and Other Related Costs $ 15 49 (41 ) 2 $ 25 |
Long-Term Debt, Short-Term De27
Long-Term Debt, Short-Term Debt, and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt Obligations | A summary of our long-term debt obligations at December 31, 2017 and 2016, is set forth in the following table: 2017 2016 (Millions) Tenneco Inc.— Revolver borrowings due 2019, average effective interest rate 2.3% in 2016 $ — $ 300 Revolver borrowings due 2022, average effective interest rate 3.8% in 2017 244 Senior Tranche A Term Loan due 2017 through 2020, average effective interest rate 2.2% in 2016 — 270 Senior Tranche A Term Loan due 2017 through 2022, average effective interest rate 2.9% in 2017 390 — 5 3/8% Senior Notes due 2024 225 225 5% Senior Notes due 2026 500 500 Other subsidiaries— Other Long Term Debt due in 2020, average interest rate 1.7% in 2017 and 2016 5 7 Notes due 2018 through 2028, average effective interest rate 0.3% in 2017 and 0.2% in 2016 10 8 1,374 1,310 Less—maturities classified as current 3 3 unamortized debt issuance costs 13 13 Total long-term debt $ 1,358 $ 1,294 |
Summary of Short-term Debt Obligations | Information regarding our short-term debt as of and for the years ended December 31, 2017 and 2016 is as follows: 2017 2016 (Millions) Maturities classified as current $ 3 $ 3 Short-term borrowings 80 87 Total short-term debt $ 83 $ 90 Notes Payable(a) 2017 2016 (Dollars in Millions) Outstanding borrowings at end of year $ 80 $ 87 Weighted average interest rate on outstanding borrowings at end of year(b) 2.9 % 2.8 % Maximum month-end $ 205 $ 193 Average month-end $ 186 $ 177 Weighted average interest rate on average month-end 2.7 % 2.4 % (a) Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements. (b) This calculation does not include the commitment fees to be paid on the unused revolving credit facility balances which are recorded as interest expense for accounting purposes. |
Financing Arrangements | Financing Arrangements Committed Credit Facilities(a) as of December 31, 2017 Term Commitments Borrowings Letters of Credit(b) Available (Millions) Tenneco Inc. revolving credit agreement 2022 $ 1,600 $ 244 $ — $ 1,356 Tenneco Inc. tranche A term facility 2022 390 390 — — Subsidiaries’ credit agreements 2018-2028 239 95 — 144 $ 2,229 $ 729 $ — $ 1,500 (a) We generally are required to pay commitment fees on the unused portion of the total commitment. (b) Letters of credit reduce the available borrowings under the revolving credit agreement. |
Financial Ratios under Senior Credit Facility | The financial ratios required under the amended and restated senior credit facility and the actual ratios we calculated for the four quarters of 2017, are as follows: Quarter Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Req. Act. Req. Act. Req. Act. Req. Act. Leverage Ratio (maximum) 3.50 1.95 3.50 2.15 3.50 1.97 3.50 1.62 Interest Coverage Ratio (minimum) 2.75 10.77 2.75 11.48 2.75 12.44 2.75 15.38 |
Proforma Consolidated Leverage Ratio | The covenants in our senior credit facility agreement generally prohibit us from repaying or refinancing our senior notes. So long as no default existed, we would, however, under our senior credit facility agreement, be permitted to repay or refinance our senior notes (i) with the net cash proceeds of permitted refinancing indebtedness (as defined in the senior credit facility agreement) or with the net cash proceeds of our common stock, in each case issued within 180 days prior to such repayment; (ii) with the net cash proceeds of the incremental facilities (as defined in the senior credit facility agreement) and certain indebtedness incurred by our foreign subsidiaries; (iii) with the proceeds of the revolving loans (as defined in the senior credit facility agreement); (iv) with the cash generated by our operations; (v) in an amount equal to the net cash proceeds of qualified capital stock (as defined in the senior credit facility agreement) issued by us after May 12, 2017; and (vi) in exchange for permitted refinancing indebtedness or in exchange for shares of our common stock; provided that such purchases are capped as follows (with respect to clauses (iii), (iv) and (v) based on a pro forma consolidated leverage ratio after giving effect to such purchase, cancellation or redemption): Pro forma Consolidated Leverage Ratio Aggregate Senior Note Maximum Amount (Millions) Greater than or equal to 3.25x $ 20 Greater than or equal to 3.0x $ 100 Greater than or equal to 2.5x $ 225 Less than 2.5x no limit |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Financial Instruments Additional Information [Abstract] | |
Carrying and Estimated Fair Value | The carrying and estimated fair values of our financial instruments by class at December 31, 2017 and 2016 were as follows: December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (Millions) Long-term debt (including current maturities) $ 1,361 $ 1,398 $ 1,297 $ 1,311 Equity swap agreement and foreign currency forward contracts: Asset derivative contracts (a) 4 4 — — (a) All derivatives are categorized within Level 2 of the fair value hierarchy. |
Summarization for Foreign Currency Forward Purchase and Sale Contracts | The following table summarizes by major currency the notional amounts for foreign currency forward purchase and sale contracts as of December 31, 2017 (all of which mature in 2018): Notional Amount in Foreign Currency (Millions) British pounds —Purchase 11 Canadian dollars —Sell (2 ) European euro —Sell (4 ) U.S. dollars —Purchase 7 —Sell (15 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes and Noncontrolling Interests | The domestic and foreign components of our income before income taxes and noncontrolling interests are as follows: Year Ended December 31, 2017 2016 2015 (Millions) U.S. income (loss) before income taxes $ (25 ) $ 63 $ 198 Foreign income before income taxes 369 361 243 Income before income taxes and noncontrolling interests $ 344 $ 424 $ 441 |
Comparative Analysis of Components of Income Tax Expense | Following is a comparative analysis of the components of income tax expense (benefit): Year Ended December 31, 2017 2016 2015 (Millions) Current— U.S. federal $ (24 ) $ (9 ) $ 64 State and local 1 4 5 Foreign 101 85 83 78 80 152 Deferred— U.S. federal 13 (91 ) (1 ) State and local (3 ) (1 ) 1 Foreign (18 ) 12 (6 ) (8 ) (80 ) (6 ) Income tax expense $ 70 $ — $ 146 |
Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense | Following is a reconciliation of income taxes computed at the statutory U.S. federal income tax rate (35 percent for all years presented) to the income tax expense reflected in the statements of income: Year Ended December 31, 2017 2016 2015 (Millions) Income tax expense computed at the statutory U.S. federal income tax rate $ 120 $ 148 $ 154 Increases (reductions) in income tax expense resulting from: Foreign income taxed at different rates (48 ) (42 ) (14 ) Transition Tax under Tax Cuts and Jobs Act (“TCJA”) 43 — — Re-measurement 48 — (4 ) State and local taxes on income, net of U.S. federal income tax benefit (2 ) 3 11 Changes in valuation allowance for tax loss carryforwards and credits (1 ) 18 13 Foreign tax holidays — — (7 ) Investment and R&D tax credits (6 ) (6 ) (26 ) Foreign earnings subject to U.S. federal income tax (74 ) (101 ) 12 Adjustment of prior years taxes — — 2 Tax contingencies (1 ) (7 ) 4 Other (9 ) (13 ) 1 Income tax expense $ 70 $ — $ 146 |
Components of Our Net Deferred Tax Assets | The components of our net deferred tax assets were as follows: Year Ended December 31, 2017 2016 (Millions) Deferred tax assets— Tax loss carryforwards: State $ 19 $ 13 Foreign 114 92 Tax credits 118 83 Postretirement benefits other than pensions 37 55 Pensions 24 48 Bad debts 3 3 Sales allowances 4 7 Payroll accruals 18 39 Other accruals 64 50 Valuation allowance (163 ) (145 ) Total deferred tax assets 238 245 Deferred tax liabilities— Tax over book depreciation 45 53 Total deferred tax liabilities 45 53 Net deferred tax assets $ 193 $ 192 |
Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet | Following is a reconciliation of deferred taxes to the deferred taxes shown in the balance sheet: Year Ended December 31, 2017 2016 (Millions) Balance Sheet: Non-current $ 204 $ 199 Non-current (11 ) (7 ) Net deferred tax assets $ 193 $ 192 |
Reconciliation of our Uncertain Tax Positions | A reconciliation of our uncertain tax positions is as follows: 2017 2016 2015 (Millions) Uncertain tax positions— Balance January 1 $ 111 $ 123 $ 114 Gross increases in tax positions in current period 6 6 7 Gross increases in tax positions in prior period 2 2 14 Gross decreases in tax positions in prior period (2 ) (5 ) (4 ) Gross decreases—settlements — — (1 ) Gross decreases—statute of limitations expired (5 ) (15 ) (7 ) Balance December 31 $ 112 $ 111 $ 123 |
Tax Years Open to Examination in Primary Jurisdictions | We are subject to taxation in the U.S. and various state and foreign jurisdictions. As of December 31, 2017, our tax years open to examination in primary jurisdictions are as follows: Open To Tax Year United States 2006 China 2007 Spain 2004 Canada 2014 Brazil 2012 Mexico 2012 Belgium 2015 Germany 2013 United Kingdom 2015 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Status and Activity | The following table reflects the status and activity for all options to purchase common stock for the period indicated: Year Ended December 31, 2017 Shares Under Option Weighted Avg. Exercise Prices Weighted Avg. Remaining Life in Years Aggregate Intrinsic Value (Millions) Outstanding Stock Options: Outstanding, January 1, 2017 606,525 $ 38.54 2.6 $ 12 Canceled (2,214 ) 56.23 Forfeited (1,107 ) 56.23 Exercised (164,863 ) 33.70 5 Outstanding, March 31, 2017 438,341 $ 40.22 2.6 $ 11 Forfeited (278 ) 66.54 Exercised (3,242 ) 45.42 — Outstanding, June 30, 2017 434,821 $ 40.16 2.4 $ 8 Forfeited (41,369 ) 19.53 Exercised (50,125 ) 34.79 1 Outstanding, September 30, 2017 343,327 $ 43.44 2.4 $ 4 Forfeited (628 ) 62.54 Exercised (24,683 ) 40.86 — Outstanding, December 31, 2017 318,016 $ 43.60 2.3 $ 5 |
Nonvested Restricted Shares | The following table reflects the status for all nonvested restricted shares for the period indicated: Year Ended December 31, 2017 Shares Weighted Avg. Grant Date Fair Value Nonvested Restricted Shares Nonvested balance at January 1, 2017 591,416 $ 44.63 Granted 182,543 68.04 Vested (261,003 ) 50.95 Forfeited (65,354 ) 53.12 Nonvested balance at March 31, 2017 447,602 $ 49.25 Granted 23,295 57.22 Vested (15,336 ) 46.77 Forfeited (6,271 ) 48.10 Nonvested balance at June 30, 2017 449,290 $ 49.79 Granted 2,001 55.80 Vested (4,581 ) 55.52 Forfeited (10,234 ) 44.82 Nonvested balance at September 30, 2017 436,476 $ 49.87 Vested (19,228 ) 47.45 Forfeited (6,997 ) 51.79 Nonvested balance at December 31, 2017 410,251 $ 49.95 |
Pension Plans, Postretirement31
Pension Plans, Postretirement and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension Plan Assets Invested | Pension plan assets were invested in the following classes of securities: Percentage of Fair Market Value December 31, December 31, US Foreign US Foreign Equity Securities 70 % 50 % 70 % 61 % Debt Securities 29 % 42 % 30 % 34 % Real Estate — 2 % — 2 % Other 1 % 6 % — % 3 % |
Plan Assets using Fair Value Hierarchy | The following table presents our plan assets using the fair value hierarchy as of December 31, 2017 and 2016, respectively. The fair value hierarchy has three levels based on the methods used to determine the fair value. Level 1 assets refer to those asset values based on quoted market prices in active markets for identical assets at the measurement date. Level 2 assets refer to assets with values determined using significant other observable inputs, and Level 3 assets include values determined with non-observable Fair Value Level as of December 31, 2017 US Foreign Asset Category Level 1 Assets Measurement at NAV Level 1 Level 2 Level 3 Assets Measurement at NAV (Millions) Equity securities: U.S. large cap $ 21 $ 85 $ 3 $ 31 $ — $ 31 U.S. mid cap — — — 2 — — U.S. small cap — 15 — — — — Non-U.S. — 15 10 48 — 56 Non-U.S. — — — 12 — 9 Non-U.S. — — — 3 — — Emerging markets — 5 3 5 — 1 Debt securities: U.S. treasuries/government bonds — — 1 — — — U.S. corporate bonds — 3 — 1 — — U.S. other fixed income — 56 — — — — Non-U.S. — — 1 112 — 32 Non-U.S. — — 4 15 — 13 Non-U.S. — — — — — 1 Non-U.S. — — 2 — — — Real Estate: Non-U.S. — — 1 6 — — Other: Insurance contracts — — — 16 9 — Cash held in bank accounts 2 — 9 1 — — Total $ 23 $ 179 $ 34 $ 252 $ 9 $ 143 Fair Value Level as of December 31, 2016 US Foreign Asset Category Level 1 Asset Measurement at NAV Level 1 Level 2 Level 3 Asset Measurement at NAV (Millions) Equity securities: U.S. large cap $ 22 $ 77 $ 2 $ 30 $ — $ 26 U.S. mid cap — — 1 2 — — U.S. small cap — 15 — — — — Non-U.S. — — 7 67 — 46 Non-U.S. — 15 — 15 — 8 Non-U.S. — — — 10 — 1 Emerging markets — 5 2 3 — 1 Debt securities: U.S. treasuries/government bonds — — 1 — — — U.S. corporate bonds — 2 — 1 — — U.S. other fixed income — 54 — — — — Non-U.S. — — 1 38 — 29 Non-U.S. — — 4 23 — 12 Non-U.S. — — — — — 1 Non-U.S. — — 1 — — — Real Estate: Non-U.S. — — 1 5 — — Other: Insurance contracts — — — 13 9 — Cash held in bank accounts 2 — 7 2 — — Total $ 24 $ 168 $ 27 $ 209 $ 9 $ 124 |
Changes in Fair Value of Level 3 Assets | The table below summarizes the changes in the fair value of the Level 3 assets: December 31, 2017 December 31, 2016 Level 3 Assets Level 3 Assets US Foreign US Foreign (Millions) (Millions) Balance at December 31 of the previous year $ — $ 9 $ — $ 8 Actual return on plan assets: Relating to assets still held at the reporting date — — — 1 Ending Balance at December 31 $ — $ 9 $ — $ 9 |
Significant Concentrations of Risk | The following table contains information about significant concentrations of risk, including all individual assets that make up more than 5 percent of the total assets and any direct investments in Tenneco stock: Asset Category Fair Value Level Value Percentage of Total Assets (Millions) 2017: Tenneco Stock 1 $ 21 3.3 % 2016: Tenneco Stock 1 $ 22 4.0 % |
Amounts Recognized in Balance Sheets for Pension Plans and Postretirement Benefit Plan | A summary of the change in benefit obligation, the change in plan assets, the development of net amount recognized, and the amounts recognized in the balance sheets for the pension plans and postretirement benefit plan follows: Pension Postretirement 2017 2016 2017 2016 US Foreign US Foreign US US (Millions) Change in benefit obligation: Benefit obligation at December 31 of the previous year $ 272 $ 438 $ 416 $ 425 $ 143 $ 141 Currency rate conversion — 42 — (38 ) — — Settlement (7 ) (3 ) (1 ) — — — Service cost 1 9 1 8 — — Interest cost 10 13 15 14 6 6 Administrative expenses/taxes paid — (2 ) — (1 ) — — Plan amendments — — — (1 ) — — Actuarial (gain)/loss 10 (9 ) (7 ) 50 12 5 Benefits paid (23 ) (18 ) (152 ) (20 ) (10 ) (9 ) Participants’ contributions — 1 — 1 — — Benefit obligation at December 31 $ 263 $ 471 $ 272 $ 438 $ 151 $ 143 Change in plan assets: Fair value at December 31 of the previous year $ 192 $ 369 $ 304 $ 355 $ — $ — Currency rate conversion — 35 — (33 ) — — Settlement (7 ) (3 ) (1 ) — — — Actual return on plan assets 22 42 21 50 — — Administrative expenses/taxes paid — (2 ) — (1 ) — — Employer contributions 18 14 20 17 10 9 Participants’ contributions — 1 — 1 — — Benefits paid (23 ) (18 ) (152 ) (20 ) (10 ) (9 ) Fair value at December 31 $ 202 $ 438 $ 192 $ 369 $ — $ — Development of net amount recognized: Unfunded status at December 31 $ (61 ) $ (33 ) $ (80 ) $ (69 ) $ (151 ) $ (143 ) Unrecognized cost: Actuarial loss 135 122 146 145 56 48 Prior service cost/(credit) — 3 — 4 (3 ) (4 ) Net amount recognized at December 31 $ 74 $ 92 $ 66 $ 80 $ (98 ) $ (99 ) Amounts recognized in the balance sheets as of December 31 Noncurrent assets $ — $ 28 $ — $ 9 $ — $ — Current liabilities (2 ) (3 ) (20 ) (2 ) (9 ) (10 ) Noncurrent liabilities (59 ) (58 ) (60 ) (76 ) (142 ) (133 ) Net amount recognized $ (61 ) $ (33 ) $ (80 ) $ (69 ) $ (151 ) $ (143 ) |
Components of Net Periodic Benefit Cost | Net periodic postretirement benefit cost for the years 2017, 2016, and 2015, consists of the following components: 2017 2016 2015 (Millions) Service cost—benefits earned during the year $ — $ — $ — Interest on accumulated postretirement benefit obligation (a) 6 6 6 Net amortization: Actuarial loss (a) — 5 6 Prior service credit (a) (1 ) (1 ) (4 ) Prior period correction (a) 4 — — Net periodic postretirement benefit cost $ 9 $ 10 $ 8 (a) Recorded in other expense. Net periodic pension costs for the years 2017, 2016 and 2015, consist of the following components: 2017 2016 2015 US Foreign US Foreign US Foreign (Millions) Service cost—benefits earned during the year $ 1 $ 9 $ 1 $ 8 $ 1 $ 9 Interest cost (a) 10 13 15 14 17 15 Expected return on plan assets (a) (14 ) (25 ) (23 ) (20 ) (23 ) (21 ) Settlement loss (a) 8 1 72 — 4 — Net amortization: Actuarial loss (a) 5 9 8 7 8 8 Prior service cost (a) — 1 — 1 — 1 Net pension costs $ 10 $ 8 $ 73 $ 10 $ 7 $ 12 (a) Recorded in other expense. |
Amounts recognized in accumulated other comprehensive loss for pension benefits | Amounts recognized in accumulated other comprehensive loss for pension benefits consist of the following components: 2017 2016 US Foreign US Foreign (Millions) Net actuarial loss $ 135 $ 122 $ 146 $ 145 Prior service cost — 3 — 4 $135 $125 $146 $149 |
Amounts Recognized for Pension and Postretirement Benefits in Other Comprehensive Income | Amounts recognized for pension and postretirement benefits in other comprehensive income for the year ended December 31, 2017 and 2016 include the following components: Year Ended December 31, 2017 2016 Before-Tax Amount Tax Benefit Net-of-Tax Amount Before-Tax Amount Tax Benefit Net-of-Tax Amount (Millions) Defined benefit pension and postretirement plans: Change in total actuarial gain (loss) $ 12 $ (4 ) $ 8 $ 51 $ (21 ) $ 30 Amortization of prior service cost included in net periodic pension and postretirement cost — — — (1 ) — (1 ) Amortization of actuarial gain (loss) included in net periodic pension and postretirement cost 26 (7 ) 19 20 (8 ) 12 Other comprehensive income—pension benefits $ 38 $ (11 ) $ 27 $ 70 $ (29 ) $ 41 |
Components of Net Periodic Benefit Cost | In 2018, we expect to recognize the following amounts, which are currently reflected in accumulated other comprehensive loss, as components of net periodic benefit cost: 2018 US Foreign (Millions) Net actuarial loss $ 5 $ 7 Prior service cost — 1 $ 5 $ 8 In 2018, we expect to recognize the following amounts, which are currently reflected in accumulated other comprehensive loss, as components of net periodic benefit cost: 2018 (Millions) Net actuarial loss $ 6 Prior service credit (1 ) $ 5 |
Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets for all Pension Plans | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2017 and 2016 were as follows: December 31, December 31, US Foreign US Foreign (Millions) Projected benefit obligation $ 263 $ 117 $ 272 $ 266 Accumulated benefit obligation 263 112 272 261 Fair value of plan assets 202 56 192 188 |
Estimated Pension Plan Benefit Payments | The following estimated benefit payments are payable from the pension plans to participants: Year US Foreign (Millions) 2018 $ 14 $ 20 2019 15 21 2020 16 23 2021 14 22 2022 16 23 2023-2027 76 128 |
Assumptions used in accounting for Pension Plans | The following assumptions were used in the accounting for the pension plans for the years of 2017, 2016, and 2015: 2017 2016 US Foreign US Foreign Weighted-average assumptions used to determine benefit obligations Discount rate 3.8 % 2.6 % 4.2 % 2.8 % Rate of compensation increase N/A 2.5 % N/A 2.5 % 2017 2016 2015 US Foreign US Foreign US Foreign Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.2 % 2.8 % 4.3 % 3.5 % 4.1 % 3.2 % Expected long-term return on plan assets 7.8 % 5.2 % 7.6 % 5.7 % 7.8 % 5.9 % Rate of compensation increase N/A 2.5 % N/A 2.7 % N/A 3.0 % |
Estimated Postretirement Benefit Payments | The following estimated postretirement benefit payments are payable from the plan to participants: Year Postretirement Benefits (Millions) 2018 $ 9 2019 9 2020 9 2021 9 2022 9 2023-2027 45 |
Postretirement Cost | The following assumptions were used in the accounting for postretirement cost for the years of 2017, 2016 and 2015: 2017 2016 Weighted-average assumptions used to determine benefit obligations Discount rate 3.8 % 4.2 % Rate of compensation increase N/A N/A 2017 2016 2015 Weighted-average assumptions used to determine net periodic benefit cost Discount rate 4.2 % 4.3 % 4.1 % Rate of compensation increase N/A N/A N/A |
Segment and Geographic Area I32
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment results for 2017, 2016 and 2015 are as follows: Segments Clean Ride Aftermarket Total Other Reclass & Total (Millions) At December 31, 2017, and for the Year Ended Revenues from external customers $ 6,216 $ 1,807 $ 1,251 $ 9,274 $ — $ — $ 9,274 Intersegment revenues 65 60 40 165 — (165 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 421 61 178 660 (243 ) — 417 Total assets 2,812 1,155 812 4,779 63 4,842 At December 31, 2016, and for the Year Ended Revenues from external customers $ 5,764 $ 1,593 $ 1,242 $ 8,599 $ — $ — $ 8,599 Intersegment revenues 108 47 37 192 — (192 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 432 97 191 720 (204 ) — 516 Total assets 2,559 959 781 4,299 — 47 4,346 At December 31, 2015, and for the Year Ended Revenues from external customers $ 5,377 $ 1,545 $ 1,259 $ 8,181 $ — $ — $ 8,181 Intersegment revenues 116 44 42 202 — (202 ) — EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests 371 63 174 608 (100 ) — 508 Total assets 2,298 756 884 3,938 — 32 3,970 |
Revenue Percent by Major Customers | The following customers accounted for 10 percent or more of our net sales in the last three years. The net sales to both customers were across segments. Customer 2017 2016 2015 General Motors Company 14 % 17 % 15 % Ford Motor Company 13 % 13 % 14 % |
Geographic Information Table | The following table shows information relating to the geographic regions in which we operate: Geographic Area United States China Germany Poland United Kingdom Other Foreign (a) Reclass & Elims Consolidated (Millions) At December 31, 2017, and for the Year Then Ended Revenues from external customers (b) $ 3,632 $ 1,283 $ 798 $ 488 $ 482 $ 2,591 $ — $ 9,274 Long-lived assets (c) 620 279 136 216 46 470 — 1,767 Total assets 1,831 988 304 383 205 1,221 (90 ) 4,842 At December 31, 2016, and for the Year Then Ended Revenues from external customers (b) $ 3,512 $ 1,186 $ 764 $ 385 $ 387 $ 2,365 $ — $ 8,599 Long-lived assets (c) 541 217 111 165 38 397 — 1,469 Total assets 1,897 795 231 322 130 1,119 (148 ) 4,346 At December 31, 2015, and for the Year Then Ended Revenues from external customers (b) $ 3,334 $ 1,101 $ 807 $ 250 $ 307 $ 2,382 $ — $ 8,181 Long-lived assets (c) 496 203 108 144 32 373 — 1,356 Total assets 1,726 699 258 275 101 1,027 (116 ) 3,970 (a) Revenues from external customers and long-lived assets for individual foreign countries other than China, Germany, Poland, and United Kingdom are not material. (b) Revenues are attributed to countries based on location of the shipper. (c) Long-lived assets include all long-term assets except goodwill, intangibles and deferred tax assets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Operating Lease Payments | Future minimum operating lease payments at December 31, 2017 are as follows: (Millions) 2018 $ 46 2019 36 2020 30 2021 23 2022 18 Beyond 2022 25 Total minimum lease payments $ 178 |
Warranty Accrual Table | Below is a table that shows the activity in the warranty accrual accounts: Year Ended December 31, 2017 2016 2015 (Millions) Beginning Balance $ 20 $ 23 $ 26 Accruals related to product warranties 16 12 15 Reductions for payments made (10 ) (15 ) (18 ) Ending Balance $ 26 $ 20 $ 23 |
Supplemental Guarantor Conden34
Supplemental Guarantor Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Statement of Comprehensive Income (Loss) | STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,889 $ 5,385 $ — $ — $ 9,274 Affiliated companies 540 640 — (1,180 ) — 4,429 6,025 — (1,180 ) 9,274 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,769 5,220 — (1,180 ) 7,809 Goodwill impairment charge — 11 — — 11 Engineering, research, and development 77 81 — — 158 Selling, general, and administrative 352 284 — — 636 Depreciation and amortization of other intangibles 88 136 — — 224 4,286 5,732 — (1,180 ) 8,838 Other income (expense) Loss on sale of receivables (2 ) (3 ) — — (5 ) Other income (expense) (16 ) 55 — (53 ) (14 ) (18 ) 52 — (53 ) (19 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 125 345 — (53 ) 417 Interest expense— External (net of interest capitalized) 19 5 49 — 73 Affiliated companies (net of interest income) (15 ) 6 9 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 121 334 (58 ) (53 ) 344 Income tax (benefit) expense (12 ) 82 — — 70 Equity in net income from affiliated companies 149 — 265 (414 ) — Net income 282 252 207 (467 ) 274 Less: Net income attributable to noncontrolling interests — 67 — — 67 Net income attributable to Tenneco Inc. $ 282 $ 185 $ 207 $ (467 ) $ 207 Comprehensive income attributable to Tenneco Inc. $ 282 $ 185 $ 331 $ (467 ) $ 331 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,865 $ 4,734 $ — $ — $ 8,599 Affiliated companies 526 747 — (1,273 ) — 4,391 5,481 — (1,273 ) 8,599 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,714 4,675 — (1,273 ) 7,116 Engineering, research, and development 76 78 — — 154 Selling, general, and administrative 235 277 1 — 513 Depreciation and amortization of other intangibles 86 126 — — 212 4,111 5,156 1 (1,273 ) 7,995 Other income (expense) Loss on sale of receivables (2 ) (3 ) — — (5 ) Other income (expense) (91 ) 23 — (15 ) (83 ) (93 ) 20 — (15 ) (88 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 187 345 (1 ) (15 ) 516 Interest expense— External (net of interest capitalized) (2 ) 4 90 — 92 Affiliated companies (net of interest income) (12 ) 7 5 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 201 334 (96 ) (15 ) 424 Income tax (benefit) expense (97 ) 97 — — — Equity in net income from affiliated companies 166 — 452 (618 ) — Net income 464 237 356 (633 ) 424 Less: Net income attributable to noncontrolling interests — 68 — — 68 Net income attributable to Tenneco Inc. $ 464 $ 169 $ 356 $ (633 ) $ 356 Comprehensive income attributable to Tenneco Inc. $ 464 $ 169 $ 356 $ (633 ) $ 356 STATEMENT OF COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Revenues Net sales and operating revenues— External $ 3,683 $ 4,498 $ — $ — $ 8,181 Affiliated companies 411 558 — (969 ) — 4,094 5,056 — (969 ) 8,181 Costs and expenses Cost of sales (exclusive of depreciation and amortization shown below) 3,410 4,380 — (969 ) 6,821 Engineering, research, and development 70 76 — — 146 Selling, general, and administrative 184 295 3 — 482 Depreciation and amortization of other intangibles 87 116 — — 203 3,751 4,867 3 (969 ) 7,652 Other income (expense) Loss on sale of receivables (1 ) (3 ) — — (4 ) Other income (expense) 28 3 — (48 ) (17 ) 27 — — (48 ) (21 ) Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies 370 189 (3 ) (48 ) 508 Interest expense— External (net of interest capitalized) (2 ) 3 66 — 67 Affiliated companies (net of interest income) 54 (56 ) 2 — — Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies 318 242 (71 ) (48 ) 441 Income tax expense 43 103 — — 146 Equity in net income from affiliated companies 78 — 312 (390 ) — Net income 353 139 241 (438 ) 295 Less: Net income attributable to noncontrolling interests — 54 — — 54 Net income attributable to Tenneco Inc. $ 353 $ 85 $ 241 $ (438 ) $ 241 Comprehensive income attributable to Tenneco Inc. $ 353 $ 85 $ 121 $ (438 ) $ 121 |
Balance Sheet | BALANCE SHEET December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 7 $ 308 $ — $ — $ 315 Restricted cash — 3 — — 3 Receivables, net 402 1,567 — (648 ) 1,321 Inventories 383 486 — — 869 Prepayments and other 99 192 — — 291 Total current assets 891 2,556 — (648 ) 2,799 Other assets: Investment in affiliated companies 1,389 — 1,258 (2,647 ) — Notes and advances receivable from affiliates 791 19,119 3,967 (23,877 ) — Long-term receivables, net 8 1 — — 9 Goodwill 22 27 — — 49 Intangibles, net 5 17 — — 22 Deferred income taxes 161 43 — — 204 Other 66 78 — — 144 2,442 19,285 5,225 (26,524 ) 428 Plant, property, and equipment, at cost 1,478 2,530 — — 4,008 Less—Accumulated depreciation and amortization (934 ) (1,459 ) — — (2,393 ) 544 1,071 — — 1,615 Total assets $ 3,877 $ 22,912 $ 5,225 $ (27,172 ) $ 4,842 LIABILITIES AND SHAREHOLDERS’ Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt—non-affiliated $ — $ 83 $ — $ — $ 83 Short-term debt—affiliated 408 148 — (556 ) — Accounts payable 562 1,232 — (89 ) 1,705 Accrued taxes 8 37 — — 45 Other 203 221 12 (3 ) 433 Total current liabilities 1,181 1,721 12 (648 ) 2,266 Long-term debt—non-affiliated 632 12 714 — 1,358 Long-term debt—affiliated 1,093 18,981 3,803 (23,877 ) — Deferred income taxes — 11 — — 11 Pension, postretirement benefits and other liabilities 296 127 — — 423 Commitments and contingencies Total liabilities 3,202 20,852 4,529 (24,525 ) 4,058 Redeemable noncontrolling interests — 42 — — 42 Tenneco Inc. Shareholders’ equity 675 1,972 696 (2,647 ) 696 Noncontrolling interests — 46 — — 46 Total equity 675 2,018 696 (2,647 ) 742 Total liabilities, redeemable noncontrolling interests and equity $ 3,877 $ 22,912 $ 5,225 $ (27,172 ) $ 4,842 BALANCE SHEET December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) ASSETS Current assets: Cash and cash equivalents $ 9 $ 338 $ — $ — $ 347 Restricted cash — 2 — — 2 Receivables, net 386 1,412 — (504 ) 1,294 Inventories 361 369 — — 730 Prepayments and other 62 167 — — 229 Total current assets 818 2,288 — (504 ) 2,602 Other assets: Investment in affiliated companies 1,211 — 1,207 (2,418 ) — Notes and advances receivable from affiliates 939 16,529 4,781 (22,249 ) — Long-term receivables, net 9 — — — 9 Goodwill 22 35 — — 57 Intangibles, net 7 12 — — 19 Deferred income taxes 47 23 129 — 199 Other 46 49 8 — 103 2,281 16,648 6,125 (24,667 ) 387 Plant, property, and equipment, at cost 1,371 2,177 — — 3,548 Less—Accumulated depreciation and amortization (895 ) (1,296 ) — — (2,191 ) 476 881 — — 1,357 Total assets $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt (including current maturities of long-term debt) Short-term debt—non-affiliated $ — $ 75 $ 15 $ — $ 90 Short-term debt—affiliated 167 187 — (354 ) — Accounts payable 562 1,027 — (88 ) 1,501 Accrued taxes 4 35 — — 39 Other 147 243 15 (62 ) 343 Total current liabilities 880 1,567 30 (504 ) 1,973 Long-term debt—non-affiliated — 12 1,282 — 1,294 Long-term debt—affiliated 1,543 16,466 4,240 (22,249 ) — Deferred income taxes — 7 — — 7 Postretirement benefits and other liabilities 297 115 — — 412 Commitments and contingencies Total liabilities 2,720 18,167 5,552 (22,753 ) 3,686 Redeemable noncontrolling interests — 40 — — 40 Tenneco Inc. Shareholders’ equity 855 1,563 573 (2,418 ) 573 Noncontrolling interests — 47 — — 47 Total equity 855 1,610 573 (2,418 ) 620 Total liabilities, redeemable noncontrolling interests and equity $ 3,575 $ 19,817 $ 6,125 $ (25,171 ) $ 4,346 |
Statement of Cash Flows | STATEMENT OF CASH FLOWS Year Ended December 31, 2017 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 284 $ 290 $ (4 ) $ (53 ) $ 517 Investing Activities Proceeds from sale of assets 3 5 — — 8 Proceeds from sale of equity interest — 9 — — 9 Cash payments for plant, property, and equipment (148 ) (246 ) — — (394 ) Cash payments for software related intangible assets (16 ) (9 ) — — (25 ) Proceeds from deferred purchase price of factored receivables — 112 — — 112 Other (4 ) (6 ) (10 ) Net cash used by investing activities (165 ) (135 ) — — (300 ) Financing Activities Cash dividends — — (53 ) — (53 ) Retirement of long-term debt (10 ) (3 ) (6 ) — (19 ) Issuance of long-term debt 400 1 (264 ) — 137 Debt issuance cost on long-term debt (8 ) — — — (8 ) Purchase of common stock under the share repurchase program — — (169 ) — (169 ) Issuance of common shares — — (1 ) — (1 ) Decrease in bank overdrafts — (7 ) — — (7 ) Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt 246 5 (318 ) — (67 ) Intercompany dividends and net (decrease) increase in intercompany obligations (749 ) (119 ) 815 53 — Distribution to noncontrolling interests partners — (64 ) — — (64 ) Net cash (used) provided by financing activities (121 ) (187 ) 4 53 (251 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 3 — — 3 Increase in cash, cash equivalents and restricted cash (2 ) (29 ) — — (31 ) Cash, cash equivalents and restricted cash, January 1 9 340 — — 349 Cash, cash equivalents and restricted cash, December 31 (Note) $ 7 $ 311 $ — $ — $ 318 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Year Ended December 31, 2016 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided (used) by operating activities $ 176 $ 190 $ 23 $ (15 ) $ 374 Investing Activities Proceeds from sale of assets — 6 — — 6 Cash payments for plant, property, and equipment (117 ) (208 ) — — (325 ) Cash payments for software related intangible assets (13 ) (7 ) — — (20 ) Proceeds from deferred purchase price of factored receivables — 110 — — 110 Net cash used by investing activities (130 ) (99 ) — — (229 ) Financing Activities Retirement of long-term debt — (16 ) (515 ) — (531 ) Issuance of long-term debt — 9 500 — 509 Debt issuance cost on long-term debt — — (9 ) — (9 ) Purchase of common stock under the share repurchase program — — (225 ) — (225 ) Issuance of common shares — — 13 — 13 Increase in bank overdrafts — 10 — — 10 Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable — 5 197 — 202 Intercompany dividends and net (decrease) increase in intercompany obligations (39 ) 8 16 15 — Distribution to noncontrolling interests partners — (55 ) — — (55 ) Net cash used by financing activities (39 ) (39 ) (23 ) 15 (86 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — 2 — — 2 Increase in cash, cash equivalents and restricted cash 7 54 — — 61 Cash, cash equivalents and restricted cash, January 1 2 286 — — 288 Cash, cash equivalents and restricted cash, December 31 (Note) $ 9 $ 340 $ — $ — $ 349 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. STATEMENT OF CASH FLOWS Year Ended December 31, 2015 Guarantor Subsidiaries Nonguarantor Subsidiaries Tenneco Inc. (Parent Company) Reclass & Elims Consolidated (Millions) Operating Activities Net cash provided by operating activities $ 204 $ 198 $ 60 $ (47 ) $ 415 Investing Activities Proceeds from sale of assets — 4 — — 4 Cash payments for plant, property, and equipment (114 ) (172 ) — — (286 ) Cash payments for software related intangible assets (16 ) (7 ) — — (23 ) Proceeds from deferred purchase price of factored receivables — 113 113 Net cash used by investing activities (130 ) (62 ) — — (192 ) Financing Activities Retirement of long-term debt — (22 ) (15 ) — (37 ) Issuance of long-term debt — 1 — — 1 Debt issuance cost on long-term debt — — (1 ) — (1 ) Tax impact from stock-based compensation — — — — — Purchase of common stock under the share repurchase program — — (213 ) — (213 ) Issuance of common shares — — 1 — 1 Decrease in bank overdrafts — (22 ) — — (22 ) Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable — 20 82 — 102 Net increase in short-term borrowings secured by accounts receivable — — 30 — 30 Intercompany dividends and net increase (decrease) in intercompany obligations (82 ) (21 ) 56 47 — Distribution to noncontrolling interests partners — (44 ) — — (44 ) Net cash used by financing activities (82 ) (88 ) (60 ) 47 (183 ) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash — (37 ) — — (37 ) (Decrease) increase in cash, cash equivalents and restricted cash (8 ) 11 — — 3 Cash, cash equivalents and restricted cash, January 1 10 275 — — 285 Cash, cash equivalents and restricted cash, December 31 (Note) $ 2 $ 286 $ — $ — $ 288 Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarter Net Sales and Operating Revenues Cost of Sales (Excluding Depreciation and Amortization) Earnings Before Interest Expense, Income Taxes and Noncontrolling Interests Net Income Attributable to Tenneco Inc. (Millions) 2017 1st $ 2,292 $ 1,929 $ 121 $ 59 2nd 2,317 1,949 27 (3 ) 3rd 2,274 1,911 134 83 4th 2,391 2,020 135 68 $ 9,274 $ 7,809 $ 417 $ 207 2016 1st $ 2,136 $ 1,769 $ 124 $ 57 2nd 2,212 1,814 171 82 3rd 2,096 1,741 150 179 4th 2,155 1,792 71 38 $ 8,599 $ 7,116 $ 516 $ 356 Quarter Basic Earnings per Share of Common Stock Diluted Earnings per Share of Common Stock 2017 1st $ 1.10 $ 1.09 2nd (0.05 ) (0.05 ) 3rd 1.57 1.57 4th 1.33 1.33 Full Year 3.93 3.91 2016 1st $ 1.00 $ 0.99 2nd 1.44 1.43 3rd 3.22 3.19 4th 0.70 0.69 Full Year 6.36 6.31 |
Summary of Accounting Policie36
Summary of Accounting Policies - Redeemable Noncontrolling Interests (Detail) | 12 Months Ended |
Dec. 31, 2017JointVentures | |
Accounting Policies [Abstract] | |
Number of Joint Ventures | 5 |
Summary of Accounting Policie37
Summary of Accounting Policies - Redeemable Non Controlling Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Redeemable Noncontrolling Interest [Roll Forward] | |||
Beginning Balance | $ 40 | $ 41 | $ 34 |
Net income attributable to redeemable noncontrolling interests | 36 | 36 | 32 |
Other comprehensive income (loss) | 3 | (2) | (1) |
Dividends declared | (37) | (35) | (24) |
Ending Balance | $ 42 | $ 40 | $ 41 |
Summary of Accounting Policie38
Summary of Accounting Policies - Inventories by Major Classification (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Finished goods | $ 349 | $ 284 |
Work in process | 268 | 245 |
Raw materials | 178 | 137 |
Materials and supplies | 74 | 64 |
Inventories | $ 869 | $ 730 |
Summary of Accounting Policie39
Summary of Accounting Policies - Goodwill and Intangibles, Net (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets And Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 11 | $ 11 | $ 0 | |
Amortization of Intangible Assets | 3 | $ 3 | $ 5 | |
Estimated amortization of intangible assets, 2018 | 5 | 5 | ||
Estimated amortization of intangible assets, 2019 | 4 | 4 | ||
Estimated amortization of intangible assets, 2020 | 4 | 4 | ||
Estimated amortization of intangible assets, 2021 | 3 | 3 | ||
Estimated amortization of intangible assets, 2022 | 2 | 2 | ||
North America | Ride Performance Division | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Goodwill accumulated impairment loss | 306 | 306 | ||
Europe and South America | Clean Air Division | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Goodwill accumulated impairment loss | 43 | 43 | ||
Asia Pacific | Ride Performance Division | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Goodwill accumulated impairment loss | $ 11 | $ 11 | ||
Minimum [Member] | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Finite useful life of intangible assets | 3 years | |||
Maximum [Member] | ||||
Intangible Assets And Goodwill [Line Items] | ||||
Finite useful life of intangible assets | 50 years |
Summary of Accounting Policie40
Summary of Accounting Policies - Net Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Balance, beginning | $ 57 | $ 60 | |
Translation adjustments | 3 | (3) | |
Goodwill Impairment Charge | $ (11) | (11) | 0 |
Balance, ending | 49 | 49 | 57 |
Clean Air Division | |||
Goodwill [Roll Forward] | |||
Balance, beginning | 13 | 14 | |
Translation adjustments | 2 | (1) | |
Goodwill Impairment Charge | 0 | 0 | |
Balance, ending | 15 | 15 | 13 |
Ride Performance Division | |||
Goodwill [Roll Forward] | |||
Balance, beginning | 20 | 22 | |
Translation adjustments | 0 | (2) | |
Goodwill Impairment Charge | (7) | 0 | |
Balance, ending | 13 | 13 | 20 |
Aftermarket | |||
Goodwill [Roll Forward] | |||
Balance, beginning | 24 | 24 | |
Translation adjustments | 1 | 0 | |
Goodwill Impairment Charge | (4) | 0 | |
Balance, ending | $ 21 | $ 21 | $ 24 |
Summary of Accounting Policie41
Summary of Accounting Policies - Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 53 | $ 47 |
Accumulated Amortization | (31) | (28) |
Customer Contracts | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8 | 8 |
Accumulated Amortization | (5) | (5) |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1 | 1 |
Accumulated Amortization | (1) | (1) |
Technology Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 29 | 29 |
Accumulated Amortization | (23) | (21) |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 15 | 9 |
Accumulated Amortization | $ (2) | $ (1) |
Summary of Accounting Policie42
Summary of Accounting Policies - Plant Property, and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Plant, property, and equipment, at cost | $ 4,008 | $ 3,548 |
Land, buildings, and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Plant, property, and equipment, at cost | 635 | 568 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Plant, property, and equipment, at cost | 2,983 | 2,638 |
Other, including construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Plant, property, and equipment, at cost | $ 390 | $ 342 |
Summary of Accounting Policie43
Summary of Accounting Policies - Plant, Property, and Equipment, at Cost (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings and improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of plant, property and equipment | 10 years |
Buildings and improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of plant, property and equipment | 50 years |
Machinery and Equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of plant, property and equipment | 3 years |
Machinery and Equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of plant, property and equipment | 25 years |
Summary of Accounting Policie44
Summary of Accounting Policies - Notes and Accounts Receivable and Allowance for Doubtful Accounts (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Short-term and long-term accounts receivable outstanding | $ 1,317,000,000 | $ 1,293,000,000 |
Allowance for doubtful accounts on short-term and long-term accounts receivable | 16,000,000 | 16,000,000 |
Short and Long-term notes receivable outstanding | 2,000,000 | 4,000,000 |
Allowance for doubtful accounts on short-term and long-term notes receivable | $ 0 | $ 0 |
Summary of Accounting Policie45
Summary of Accounting Policies - Pre-production Design and Development and Tooling Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Unbilled pre-production design and development costs | $ 25 | $ 22 |
Original Equipment tools and dies, owned | 72 | 62 |
In-process tools and dies built for original equipment customers | $ 117 | $ 97 |
Summary of Accounting Policie46
Summary of Accounting Policies - Internal Use Software Assets/Accounts Payable (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capitalized software development costs, net of amortization | $ 79 | $ 66 | |
Capitalized Computer Software, Amortization | $ 15 | 12 | $ 13 |
Minimum [Member] | |||
Finite useful life of intangible assets | 3 years | ||
Minimum [Member] | Software Development | |||
Finite useful life of intangible assets | 3 years | ||
Maximum [Member] | |||
Finite useful life of intangible assets | 50 years | ||
Maximum [Member] | Software Development | |||
Finite useful life of intangible assets | 12 years | ||
Accounts Payable | |||
Accounts payable | $ 77 | 99 | |
Accrued compensation | $ 20 | $ 27 |
Summary of Accounting Policie47
Summary of Accounting Policies - Revenue Recognition (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Substrate sales revenue | $ 2,187 | $ 2,028 | $ 1,888 |
Summary of Accounting Policie48
Summary of Accounting Policies - Engineering, Research and Development (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Engineering, research, and development | $ 158 | $ 154 | $ 146 |
Customer reimbursements for engineering, research and development expenses | $ 164 | $ 137 | $ 145 |
Summary of Accounting Policie49
Summary of Accounting Policies - Advertising and Promotion Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising and promotion expenses | $ 40 | $ 40 | $ 54 |
Summary of Accounting Policie50
Summary of Accounting Policies - Foreign Currency Translation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Foreign currency transaction gains (losses) | $ (4) | $ 1 | $ (6) |
Summary of Accounting Policie51
Summary of Accounting Policies - Risk Management Activities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Fair value of derivative liability | $ 1 | $ 1 |
Summary of Accounting Policie52
Summary of Accounting Policies - Summary of Effect of Adopting New Accounting Standards on Consolidated Financial Statements (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Item Effected [Line Items] | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | $ 2,020 | $ 1,911 | $ 1,949 | $ 1,929 | $ 1,792 | $ 1,741 | $ 1,814 | $ 1,769 | $ 7,809 | $ 7,116 | $ 6,821 |
Selling, general, and administrative | 636 | 513 | 482 | ||||||||
Other (income) expense | 14 | 83 | 17 | ||||||||
Previously Reported | |||||||||||
Item Effected [Line Items] | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 7,812 | 7,123 | 6,828 | ||||||||
Selling, general, and administrative | 648 | 589 | 491 | ||||||||
Other (income) expense | (1) | 0 | 1 | ||||||||
Effect of Accounting Change | |||||||||||
Item Effected [Line Items] | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | (3) | (7) | (7) | ||||||||
Selling, general, and administrative | (12) | (76) | (9) | ||||||||
Other (income) expense | $ 15 | $ 83 | $ 16 |
Summary of Accounting Policie53
Summary of Accounting Policies - Summary of Effect of Adopting New Accounting Standards on Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Item Effected [Line Items] | |||
Decrease (increase) in receivables | $ (81) | $ (325) | $ (203) |
Net cash provided by operating activities | 517 | 374 | 415 |
Proceeds from deferred purchase price of factored receivables | 112 | 110 | 113 |
Net cash used by investing activities | (300) | (229) | (192) |
Increase(Decrease) in cash, cash equivalents and restricted cash | (31) | 61 | 3 |
Cash, cash equivalents and restricted cash, January 1 | 349 | 288 | 285 |
Cash, cash equivalents and restricted cash, December 31 | 318 | 349 | 288 |
Previously Reported | |||
Item Effected [Line Items] | |||
Decrease (increase) in receivables | 31 | (215) | (90) |
Net cash provided by operating activities | 629 | 484 | 528 |
Change in restricted cash | (1) | (1) | 2 |
Net cash used by investing activities | (413) | (340) | (303) |
Increase(Decrease) in cash, cash equivalents and restricted cash | (32) | 60 | 5 |
Cash, cash equivalents and restricted cash, January 1 | 347 | 287 | 282 |
Cash, cash equivalents and restricted cash, December 31 | 315 | 347 | 287 |
Effect of Accounting Change | ASU 2016-18 | |||
Item Effected [Line Items] | |||
Change in restricted cash | 1 | 1 | (2) |
Net cash used by investing activities | 1 | 1 | (2) |
Increase(Decrease) in cash, cash equivalents and restricted cash | 1 | 1 | (2) |
Cash, cash equivalents and restricted cash, January 1 | 2 | 1 | 3 |
Cash, cash equivalents and restricted cash, December 31 | 3 | 2 | 1 |
Effect of Accounting Change | ASU 2016-15 | |||
Item Effected [Line Items] | |||
Decrease (increase) in receivables | (112) | (110) | (113) |
Net cash provided by operating activities | (112) | (110) | (113) |
Proceeds from deferred purchase price of factored receivables | 112 | 110 | 113 |
Net cash used by investing activities | $ 112 | $ 110 | $ 113 |
Summary of Accounting Policie54
Summary of Accounting Policies - Recent Accounting/Restricted Net Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Excess tax benefit | $ 2 | |
Restricted Net Assets | $ 406 | $ 323 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share- | |||||||||||
Net income attributable to Tenneco Inc. | $ 68 | $ 83 | $ (3) | $ 59 | $ 38 | $ 179 | $ 82 | $ 57 | $ 207 | $ 356 | $ 241 |
Average shares of common stock outstanding (in shares) | 52,796,184 | 55,939,135 | 59,678,309 | ||||||||
Earnings per average share of common stock | $ 1.33 | $ 1.57 | $ (0.05) | $ 1.10 | $ 0.70 | $ 3.22 | $ 1.44 | $ 1 | $ 3.93 | $ 6.36 | $ 4.05 |
Diluted earnings per share- | |||||||||||
Average shares of common stock outstanding (in shares) | 52,796,184 | 55,939,135 | 59,678,309 | ||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock (in shares) | 111,062,000,000 | 175,513,000,000 | 96,168,000,000 | ||||||||
Stock options (in shares) | 119,665,000,000 | 292,788,000,000 | 418,673,000,000 | ||||||||
Average shares of common stock outstanding including dilutive securities (in shares) | 53,026,911 | 56,407,436 | 60,193,150 | ||||||||
Earnings per average share of common stock (in dollars per share) | $ 1.33 | $ 1.57 | $ (0.05) | $ 1.09 | $ 0.69 | $ 3.19 | $ 1.43 | $ 0.99 | $ 3.91 | $ 6.31 | $ 4.01 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock options | 834 | 134,361 | 175,216 |
Acquisitions and Divestitures -
Acquisitions and Divestitures -Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 72 | $ 36 | $ 63 | ||
Buisness Sale Percentage of Voting Interest Sold | 49.00% | ||||
Quantum Capital Partners A.G | |||||
Business Acquisition [Line Items] | |||||
Manufacturing agreement (in years) | 3 years | ||||
Discontinuationof Marzocchi Motor Bike Fork Suspension Business Mountain Bike Businessand Liquidationof Marzocchi Operations [Member] | |||||
Business Acquisition [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 29 |
Restructuring and Other Charg58
Restructuring and Other Charges - Additional Information (Detail) $ in Millions | May 12, 2017USD ($) | Jul. 22, 2015People | Jan. 31, 2013USD ($) | Mar. 31, 2016 | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | $ 72 | $ 36 | $ 63 | ||||||
Non- cash charges | 3 | 6 | 10 | ||||||
Effect on Future Cash Flows, Amount | $ 60 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2017 | $ 35 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2018 | 25 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2019 | 25 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2020 | 25 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2021 | 25 | ||||||||
Restructuring and related cost allowed to be excluded from the calculation of financial covenant ratios, 2022 | 25 | ||||||||
Restructuring And Related Costs And Litigation Costs Allowed To Be Excluded From Calculation Of Financial Covenant Ratios | $ 150 | 185 | |||||||
Europe | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | $ 20 | 22 | |||||||
AUSTRALIA | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Non- cash charges | 2 | ||||||||
Reduction in Structural Costs | Europe | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Plan, Cost Reduction Initiative, Annualized Run Rate | 49 | ||||||||
Restructuring Plan, Cost Reduction Initiative, Target Reduction Amount At Current Exchange Rates | $ 55 | ||||||||
Reduction in Structural Costs | AUSTRALIA | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 21 | ||||||||
Discontinuationof Marzocchi Motor Bike Fork Suspension Business Mountain Bike Businessand Liquidationof Marzocchi Operations [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 29 | ||||||||
Number of positions eliminated | 138 | ||||||||
Discontinuationof Marzocchi Motor Bike Fork Suspension Business Mountain Bike Businessand Liquidationof Marzocchi Operations [Member] | Bologna Italy [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions eliminated | People | 127 | ||||||||
Discontinuationof Marzocchi Motor Bike Fork Suspension Business Mountain Bike Businessand Liquidationof Marzocchi Operations [Member] | North Americaand Taiwan [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Number of positions eliminated | People | 11 | ||||||||
Cost of Sales | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 41 | 17 | 46 | ||||||
Selling, General and Administrative Expenses | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 28 | 12 | 11 | ||||||
Engineering Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 1 | 1 | |||||||
Other Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 2 | 1 | |||||||
Depreciation and Amortization | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 3 | $ 4 | $ 4 | ||||||
Quantum Capital Partners A.G | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Manufacturing agreement (in years) | 3 years | ||||||||
Facility Closing [Member] | Beijing, China [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | 6 | ||||||||
Facility Closing [Member] | Belgium | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | $ 10 | ||||||||
Asset write down | 1 | ||||||||
Cost Improvement Initiatives [Member] | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring and Related Cost, Incurred Cost | $ 35 |
Restructuring and Other Charg59
Restructuring and Other Charges - Roll Forward of Restructuring Reserve (Detail) - Employee Severance $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, beginning balance | $ 15 |
Expenses | 49 |
Cash Payments | (41) |
Impact of Exchange Rates | 2 |
Restructuring Reserve, ending balance | $ 25 |
Long-Term Debt, Short-Term De60
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Summary of Long-Term Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | $ 1,374 | $ 1,310 |
Less-maturities classified as current | 3 | 3 |
Unamortized debt issuance costs | 13 | 13 |
Total long-term debt | 1,358 | 1,294 |
5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 500 | |
Unamortized debt issuance costs | 8 | |
Tenneco Inc. (Parent Company) | Line of Credit [Member] | Revolver Borrowings Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 0 | 300 |
Tenneco Inc. (Parent Company) | Line of Credit [Member] | Revolver Borrowings Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 244 | |
Tenneco Inc. (Parent Company) | Term Loan [Member] | Senior Tranche A Term Loan Due 2017 Through 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 0 | 270 |
Tenneco Inc. (Parent Company) | Term Loan [Member] | Senior Tranche A Term Loan due 2017 through 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 390 | 0 |
Tenneco Inc. (Parent Company) | Senior Notes [Member] | 5 3/8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 225 | 225 |
Tenneco Inc. (Parent Company) | Senior Notes [Member] | 5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 500 | 500 |
Other subsidiaries | Other Long Term Debt [Member] | Other Long Term Debt Due 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | 5 | 7 |
Other subsidiaries | Notes Payable, Other Payables [Member] | Notes Due 2018 Through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current maturities) | $ 10 | $ 8 |
Long-Term Debt, Short-Term De61
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Summary of Long-Term Debt Obligations (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Tranche A Term Loan Due 2017 Through 2020 | Term Loan [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 2.20% | |
Senior Tranche A Term Loan due 2017 through 2022 | Term Loan [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 2.90% | |
5 3/8% Senior Notes due 2024 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.375% | |
5 3/8% Senior Notes due 2024 | Senior Notes [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.375% | |
5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.00% | |
5% Senior Notes Due 2026 | Senior Notes [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.00% | |
Other Long Term Debt Due 2020 | Other Long Term Debt [Member] | Other subsidiaries | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 1.70% | 1.70% |
Notes Due 2018 Through 2028 | Notes Payable, Other Payables [Member] | Other subsidiaries | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 0.30% | 0.20% |
Revolver Borrowings Due 2019 [Member] | Line of Credit [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 2.30% | |
Revolver Borrowings Due 2022 [Member] | Line of Credit [Member] | Tenneco Inc. (Parent Company) | ||
Debt Instrument [Line Items] | ||
Average effective interest rate | 3.80% |
Long-Term Debt, Short-Term De62
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Aggregate Maturities (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 23 |
2,019 | 31 |
2,020 | 36 |
2,021 | 41 |
2,022 | 515 |
Tranche Term Facility [Member] | |
Debt Instrument [Line Items] | |
2,018 | $ 20 |
Long-Term Debt, Short-Term De63
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Short-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Maturities classified as current | $ 3 | $ 3 |
Short-term borrowings | 80 | 87 |
Total short-term debt | $ 83 | $ 90 |
Long-Term Debt, Short-Term De64
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Notes Payable (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Outstanding borrowings at end of year | $ 80 | $ 87 |
Notes Payable Current | ||
Short-term Debt [Line Items] | ||
Outstanding borrowings at end of year | $ 80 | $ 87 |
Weighted average interest rate on outstanding borrowings at end of year | 2.90% | 2.80% |
Maximum month-end outstanding borrowings during year | $ 205 | $ 193 |
Average month-end outstanding borrowings during year | $ 186 | $ 177 |
Weighted average interest rate on average month-end outstanding borrowings during year | 2.70% | 2.40% |
Long-Term Debt, Short-Term De65
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Financing Arrangements (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Commitments | $ 2,229,000,000 |
Borrowings | 729,000,000 |
Letters of Credit | 0 |
Available | 1,500,000,000 |
Tenneco Inc. revolving credit agreement | |
Debt Instrument [Line Items] | |
Commitments | 1,600,000,000 |
Borrowings | 244,000,000 |
Letters of Credit | 0 |
Available | 1,356,000,000 |
Tenneco Inc. tranche A term facility | |
Debt Instrument [Line Items] | |
Commitments | 390,000,000 |
Borrowings | 390,000,000 |
Letters of Credit | 0 |
Available | 0 |
Subsidiaries' credit agreements | |
Debt Instrument [Line Items] | |
Commitments | 239,000,000 |
Borrowings | 95,000,000 |
Letters of Credit | 0 |
Available | $ 144,000,000 |
Long-Term Debt, Short-Term De66
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Overview (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 18 Months Ended | ||||||||||
May 31, 2017 | Jun. 30, 2022 | Jun. 30, 2019 | Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2017 | May 12, 2017 | May 11, 2017 | Dec. 31, 2016 | Jul. 13, 2016 | Jun. 13, 2016 | Jun. 06, 2016 | |
Debt Instrument [Line Items] | ||||||||||||||
Maximum percentage of stock of certain first-tier foreign subsidiaries pledged to secure senior credit facility | 66.00% | |||||||||||||
Long-term debt (including current maturities) | $ 1,374,000,000 | $ 1,310,000,000 | ||||||||||||
Long-term debt | 1,358,000,000 | 1,294,000,000 | ||||||||||||
Unamortized debt issuance costs | 13,000,000 | $ 13,000,000 | ||||||||||||
Long term debt maturities within the next twelve months | 23,000,000 | |||||||||||||
Unused borrowing capacity | 1,500,000,000 | |||||||||||||
Senior Notes Due 2020, 6.875% [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Expenses related to redemption | $ 8,000,000 | $ 16,000,000 | ||||||||||||
Tranche Term Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long term debt maturities within the next twelve months | 20,000,000 | |||||||||||||
Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 225,000,000 | |||||||||||||
Long-term debt | 222,000,000 | |||||||||||||
Unamortized debt issuance costs | $ 3,000,000 | |||||||||||||
5% Senior Notes Due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 5.00% | |||||||||||||
Long-term debt (including current maturities) | $ 500,000,000 | |||||||||||||
Long-term debt | 492,000,000 | |||||||||||||
Unamortized debt issuance costs | 8,000,000 | |||||||||||||
Other Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unsecured debt | 95,000,000 | |||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 1,600,000,000 | $ 1,600,000,000 | $ 1,200,000,000 | |||||||||||
Long-term debt (including current maturities) | 244,000,000 | |||||||||||||
Interest expense | $ 1,000,000 | |||||||||||||
Unused borrowing capacity | 1,356,000,000 | |||||||||||||
Revolving Credit Facility [Member] | Tranche Term Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 390,000,000 | $ 264,000,000 | ||||||||||||
Long-term debt | 388,000,000 | $ 400,000,000 | ||||||||||||
Unamortized debt issuance costs | 2,000,000 | |||||||||||||
Long term debt maturities within the next twelve months | 20,000,000 | |||||||||||||
Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 0 | |||||||||||||
Revolving Credit Facility [Member] | Term Loan [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 390,000,000 | |||||||||||||
Revolving Credit Facility [Member] | Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 225,000,000 | |||||||||||||
Long-term debt | 222,000,000 | |||||||||||||
Unamortized debt issuance costs | 3,000,000 | |||||||||||||
Revolving Credit Facility [Member] | 5% Senior Notes Due 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt (including current maturities) | 500,000,000 | |||||||||||||
Long-term debt | 492,000,000 | |||||||||||||
Unamortized debt issuance costs | $ 8,000,000 | |||||||||||||
Forecast | Revolving Credit Facility [Member] | Tranche Term Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payment | $ 260,000,000 | $ 5,000,000 | $ 7,500,000 | $ 10,000,000 | ||||||||||
Senior Notes [Member] | Senior Notes Due 2020, 6.875% [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amount of debt offered for exchange by the company | $ 500,000,000 | |||||||||||||
Amount of debt tendered for exchange by the holders | $ 175,000,000 | $ 325,000,000 | ||||||||||||
Debt instrument redemption price as percentage of principal amount prior quarter | 103.438% | 103.81% | ||||||||||||
Stated interest rate | 6.875% | |||||||||||||
Senior Notes [Member] | 5 3/8% Senior Notes due 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 5.375% |
Long-Term Debt, Short-Term De67
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Senior Credit Facility (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Debt covenant, unrestricted cash and cash equivalents | $ 250,000,000 |
Leverage Ratio Required Each Quarter Thereafter | 3.50 |
Interest coverage required (minimum) | 2.75 |
Excludeable charges not excluded | $ 185,000,000 |
Leverage Ratio Excluding Excludeable Charges | 1.52 |
Interest Ratio Excluding Excludeable Charges | 13.76 |
Tranche Term Facility [Member] | |
Debt Instrument [Line Items] | |
Borrowings reduced in basis points to applicable margin, resulting from senior secured leverage ratio below minimum | 0.0025 |
Commitment fee basis points | 0.25% |
Increase (decrease) in basis points to applicable margin, resulting from senior secured leverage ratio below minimum | 0.25% |
Tranche Term Facility [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Senior secured leverage ratio | 250.00% |
Tranche Term Facility [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Senior secured leverage ratio | 150.00% |
Tranche Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.75% |
Tranche Term Facility [Member] | JP Morgan Chase Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.75% |
commitment fee [Domain] | |
Debt Instrument [Line Items] | |
Borrowings reduced in basis points to applicable margin, resulting from senior secured leverage ratio below minimum | 0.0020 |
Increase (decrease) in basis points to applicable margin, resulting from senior secured leverage ratio below minimum | 0.30% |
Initial Spread [Member] | Tranche Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Initial Spread [Member] | Tranche Term Facility [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Ending Spread [Member] | Tranche Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.75% |
Ending Spread [Member] | Tranche Term Facility [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.75% |
Long-Term Debt, Short-Term De68
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Financial Ratios Under Senior Credit Facility (Detail) | 3 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Required | ||||
Debt Instrument [Line Items] | ||||
Leverage Ratio (maximum) | 3.50 | 3.50 | 3.50 | 3.50 |
Interest Coverage Ratio (minimum) | 2.75 | 2.75 | 2.75 | 2.75 |
Actual | ||||
Debt Instrument [Line Items] | ||||
Leverage Ratio (maximum) | 1.95 | 2.15 | 1.97 | 1.62 |
Interest Coverage Ratio (minimum) | 10.77 | 11.48 | 12.44 | 15.38 |
Long-Term Debt, Short-Term De69
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Proforma Consolidated Leverage Ratio (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Greater than or equal to 3.25x | |
Line of Credit Facility [Line Items] | |
Aggregate Senior Note Maximum Amount | $ 20 |
Greater than or equal to 3.0x | |
Line of Credit Facility [Line Items] | |
Aggregate Senior Note Maximum Amount | 100 |
Greater than or equal to 2.5x | |
Line of Credit Facility [Line Items] | |
Aggregate Senior Note Maximum Amount | $ 225 |
Long-Term Debt, Short-Term De70
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Senior Notes (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 1,374 | $ 1,310 |
Long-term debt | 1,358 | 1,294 |
Unamortized debt issuance costs | $ 13 | 13 |
Debt Instrument, Redemption Price, Percentage | 100.00% | |
Percent of the principal amount thereof plus accrued and unpaid interest | 101.00% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes indentures minimum required fixed charge coverage ratio prior to incurring certain types of indebtedness | 2 | |
Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 225 | |
Long-term debt | 222 | |
Unamortized debt issuance costs | 3 | |
5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | 500 | |
Long-term debt | 492 | |
Unamortized debt issuance costs | $ 8 | |
Senior Notes [Member] | 5 3/8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Redemption Price, Percentage | 105.375% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 244 | |
Revolving Credit Facility [Member] | Five Point Three Seven Five Percent Senior Notes Due December 15 2024 [Member] [Domain] | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | 225 | |
Long-term debt | 222 | |
Unamortized debt issuance costs | $ 3 | |
Debt Instrument, Redemption Price, Percentage | 35.00% | |
Revolving Credit Facility [Member] | 5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 500 | |
Long-term debt | 492 | |
Unamortized debt issuance costs | 8 | |
Tenneco Inc. (Parent Company) | Senior Notes [Member] | 5% Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 500 | 500 |
Debt Instrument, Redemption Price, Percentage | 105.00% | |
Tenneco Inc. (Parent Company) | Senior Notes [Member] | 5 3/8% Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Line of credit facility letters of credit outstanding | $ 225 | $ 225 |
Long-Term Debt, Short-Term De71
Long-Term Debt, Short-Term Debt, and Financing Arrangements - Accounts Receivable Securitization (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Outstanding third party investments in securitized accounts receivable bank program | $ 107 | ||
North America | |||
Debt Instrument [Line Items] | |||
North American Program maximum facility size | 155 | ||
Additional financing from second priority facility | 25 | ||
Outstanding third party investments in securitized accounts receivable bank program | 30 | $ 30 | |
Interest expense recognized from securitization of receivables | 4 | 3 | $ 2 |
Europe | |||
Debt Instrument [Line Items] | |||
Outstanding third party investments in securitized accounts receivable bank program | $ 218 | 160 | |
Term of commitments | 1 year | ||
Bank facility cancellation notification | 90 days | ||
Loss on sale of trade accounts receivable | $ 3 | $ 3 | $ 3 |
Financing percentage | 1.00% | 2.00% | 2.00% |
Financial Instruments - Carryin
Financial Instruments - Carrying and Estimated Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt (including current maturities) | $ 1,358 | $ 1,294 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt (including current maturities) | 1,361 | 1,297 |
Asset derivative contracts | 4 | 0 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt (including current maturities) | 1,398 | 1,311 |
Asset derivative contracts | $ 4 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) shares in Thousands | Dec. 31, 2017USD ($)Agreementshares | Dec. 31, 2016USD ($) |
Financial Instruments [Line Items] | ||
Maximum percentage of stock of certain first tier foreign subsidiaries pledged to secure senior credit facility | 66.00% | |
Line of credit facility letters of credit outstanding | $ 32,000,000 | |
Negotiable financial instruments not redeemed and used for vendor payment classified as notes payable | 11,000,000 | $ 12,000,000 |
Negotiable financial instruments received from OE customer not redeemed | 10,000,000 | 5,000,000 |
Negotiable financial instruments received classified as other current assets | 10,000,000 | 5,000,000 |
Fair Value, Inputs, Level 1 | ||
Financial Instruments [Line Items] | ||
Fair value of long term debt | 749,000,000 | 725,000,000 |
Fair Value, Inputs, Level 2 | ||
Financial Instruments [Line Items] | ||
Fair value of long term debt | 634,000,000 | 571,000,000 |
Fair Value, Inputs, Level 3 | ||
Financial Instruments [Line Items] | ||
Fair value of long term debt | 15,000,000 | |
Other subsidiaries | China | ||
Financial Instruments [Line Items] | ||
Restricted cash | 2,000,000 | 2,000,000 |
Other subsidiaries | Brazil | ||
Financial Instruments [Line Items] | ||
Restricted cash | $ 1,000,000 | |
TMEL and Walker Plans | ||
Financial Instruments [Line Items] | ||
Number of performance guarantee agreements | Agreement | 2 | |
Number of group benefit plans under the agreement | Agreement | 2 | |
Percentage of the pension obligation recognized for participating employers | 100.00% | |
Pension obligation of participating employers recognized on the balance sheet | $ 0 | 19,000,000 |
Foreign Exchange Forward | ||
Financial Instruments [Line Items] | ||
Fair value of derivative liability | $ 1,000,000 | $ 1,000,000 |
Equity Swap | ||
Financial Instruments [Line Items] | ||
Notional amount | shares | 250 | |
Derivatives at fair value | $ 4,000,000 |
Financial Instruments - Summari
Financial Instruments - Summarization for Foreign Currency Forward Purchase and Sale Contracts - Foreign Exchange Forward (Detail) - Foreign Exchange Forward $ in Millions | Dec. 31, 2017USD ($) |
Long [Member] | United Kingdom, Pounds | |
Financial Instrument [Line Items] | |
Derivative, Notional Amount | $ 11 |
Long [Member] | United States of America, Dollars | |
Financial Instrument [Line Items] | |
Derivative, Notional Amount | 7 |
Short [Member] | United States of America, Dollars | |
Financial Instrument [Line Items] | |
Derivative, Notional Amount | 15 |
Short [Member] | Canada, Dollars | |
Financial Instrument [Line Items] | |
Derivative, Notional Amount | 2 |
Short [Member] | Euro Member Countries, Euro | |
Financial Instrument [Line Items] | |
Derivative, Notional Amount | $ 4 |
Income Taxes - Income before in
Income Taxes - Income before income taxes and noncontrolling interests (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) before income taxes | $ (25) | $ 63 | $ 198 |
Foreign income before income taxes | 369 | 361 | 243 |
Earnings before income taxes and noncontrolling interests | $ 344 | $ 424 | $ 441 |
Income Taxes - Comparative Anal
Income Taxes - Comparative Analysis of Components of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
U.S. federal | $ (24) | $ (9) | $ 64 |
State and local | 1 | 4 | 5 |
Foreign | 101 | 85 | 83 |
Total current income tax expenses | 78 | 80 | 152 |
Deferred | |||
U.S. federal | 13 | (91) | (1) |
State and local | (3) | (1) | 1 |
Foreign | (18) | 12 | (6) |
Total deferred income tax expenses | (8) | (80) | (6) |
Income tax expense | $ 70 | $ 0 | $ 146 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||||
U.S. Federal statutory rate | 35.00% | 21.00% | 35.00% | |
Income tax expense (benefit) | $ 70 | $ 0 | $ 146 | |
Transition Tax under Tax Cuts and Jobs Act (TCJA) | 43 | 0 | 0 | |
Provisional expense for deferred tax assets | 46 | |||
Foreign earnings subject to U.S. federal income tax | (74) | (101) | 12 | |
Adjustment of prior years taxes | 0 | 0 | 2 | |
Reducing In Tax Loss Carryforward Due To Realization Domestic And State Tax Loss | 2 | 3 | ||
Reducing in Tax Loss Carryforward Due To Realization Foreign Tax Loss | 7 | 7 | ||
Valuation allowance | 163 | 145 | ||
Unremitted earnings of foreign subsidiaries | 920 | |||
Estimated income tax liability related to unremitted earnings of foreign subsidiaries | 80 | |||
Uncertain tax positions that would affect the effective tax rate if recognized | 108 | 108 | 110 | |
Liability for interest on unrecognized tax benefits | 4 | 4 | 4 | |
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 | 8 | |||
Maximum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Penalties accrued | 1 | 1 | 1 | |
Accrued interest related to uncertain tax positions | 1 | 1 | 1 | |
Liability for penalties on unrecognized tax benefits | 1 | 1 | 2 | |
Federal | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Foreign earnings subject to U.S. federal income tax | 74 | $ 110 | ||
Adjustment of prior years taxes | $ 15 | |||
State | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash payments for TCJA adjustment, one time transition tax | $ 1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed at Statutory U.S. Federal Income Tax Rate to Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory U.S. federal income tax rate | $ 120 | $ 148 | $ 154 |
Foreign income taxed at different rates | (48) | (42) | (14) |
Transition Tax under Tax Cuts and Jobs Act (TCJA) | 43 | 0 | 0 |
Remeasurement of estimated tax on unremitted earnings | 48 | 0 | (4) |
State and local taxes on income, net of U.S. federal income tax benefit | (2) | 3 | 11 |
Changes in valuation allowance for tax loss carryforwards and credits | (1) | 18 | 13 |
Foreign tax holidays | 0 | 0 | (7) |
Investment and R&D tax credits | (6) | (6) | (26) |
Foreign earnings subject to U.S. federal income tax | (74) | (101) | 12 |
Adjustment of prior years taxes | 0 | 0 | 2 |
Tax contingencies | (1) | (7) | 4 |
Other | (9) | (13) | 1 |
Income tax expense | $ 70 | $ 0 | $ 146 |
Income Taxes - Components of Ou
Income Taxes - Components of Our Net Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
State | $ 19 | $ 13 |
Foreign | 114 | 92 |
Tax credits | 118 | 83 |
Postretirement benefits other than pensions | 37 | 55 |
Pensions | 24 | 48 |
Bad debts | 3 | 3 |
Sales allowances | 4 | 7 |
Payroll accruals | 18 | 39 |
Other accruals | 64 | 50 |
Valuation allowance | (163) | (145) |
Total deferred tax assets | 238 | 245 |
Tax over book depreciation | 45 | 53 |
Total deferred tax liabilities | 45 | 53 |
Net deferred tax assets | $ 193 | $ 192 |
Income Taxes - Reconciliation80
Income Taxes - Reconciliation of Deferred Taxes to Deferred Taxes Shown In Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet: | ||
Non-current portion - deferred tax asset | $ 204 | $ 199 |
Non-current portion - deferred tax liability | (11) | (7) |
Net deferred tax assets | $ 193 | $ 192 |
Income Taxes - Reconciliation81
Income Taxes - Reconciliation of our Uncertain Tax Positions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Uncertain tax positions- | |||
Balance January 1 | $ 111 | $ 123 | $ 114 |
Gross increases in tax positions in current period | 6 | 6 | 7 |
Gross increases in tax positions in prior period | 2 | 2 | 14 |
Gross decreases in tax positions in prior period | (2) | (5) | (4) |
Gross decreases-settlements | 0 | 0 | (1) |
Gross decreases-statute of limitations expired | (5) | (15) | (7) |
Balance December 31 | $ 112 | $ 111 | $ 123 |
Income Taxes - Tax Years Open t
Income Taxes - Tax Years Open to Examination in Primary Jurisdictions (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
United States - due to NOL | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,006 |
China | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,007 |
Spain | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,004 |
Canada | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,014 |
Brazil | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,012 |
Mexico | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,012 |
Belgium | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,015 |
Germany | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,013 |
United Kingdom | |
Income Tax Contingency [Line Items] | |
Tax years open to examination in primary jurisdictions | 2,015 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | Feb. 01, 2017 | Dec. 31, 1999 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 28, 2017 | Oct. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | May 15, 2013 | May 13, 2009 | Mar. 12, 2002 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Authorized common stock available for issuance under the plan | 135,000,000 | 135,000,000 | ||||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||||||||||||
Common stock, shares issued | 66,033,509 | 66,033,509 | 65,891,930 | |||||||||||||
Treasury stock shares | 14,592,888 | 14,592,888 | 11,655,938 | 7,473,325 | 3,244,692 | |||||||||||
Term for stock options (in years) | 3 years | |||||||||||||||
Restriction period for restricted common stock | 3 years | |||||||||||||||
Share-based Compensation, Effect on Earnings Per Share, Basic | $ 0.01 | $ 0.01 | $ 0.03 | |||||||||||||
Decrease in basic earnings per share | $ 0.01 | $ 0.01 | $ 0.03 | |||||||||||||
Share based compensation | $ 14,000,000 | $ 14,000,000 | $ 15,000,000 | |||||||||||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 2,000,000 | 1,000,000 | 6,000,000 | |||||||||||||
Total Intrinsic value of options exercised | $ 0 | $ 1,000,000 | $ 0 | $ 5,000,000 | 6,000,000 | 11,000,000 | 10,000,000 | |||||||||
Total fair value of shares vested | $ 2,000,000 | $ 4,000,000 | $ 6,000,000 | |||||||||||||
Weighted average grant-date fair value of restricted stock granted | $ 66.77 | $ 36.36 | $ 52.85 | |||||||||||||
Total fair value of restricted shares vested | $ 14,000,000 | $ 9,000,000 | $ 7,000,000 | |||||||||||||
Number of shares authorized to be repurchased | 400,000,000 | 350,000,000 | ||||||||||||||
Stock repurchased during the period | $ 169,000,000 | $ 225,000,000 | $ 213,000,000 | |||||||||||||
Treasury stock average cost per share | $ 57.57 | $ 53.89 | $ 50.32 | |||||||||||||
Remaining amount authorized to be repurchased | $ 112,000,000 | |||||||||||||||
Quarterly cash divided declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 1 | |||||||||||||
Common stock, annual dividends (in dollars per share) | $ 1 | $ 1 | ||||||||||||||
Cash dividends | $ 53,000,000 | $ 53,000,000 | ||||||||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Restriction period for restricted common stock | 3 years | |||||||||||||||
Stock Option | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Compensation expense related to nonqualified stock options | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | |||||||||||||
Restricted stock, restricted stock units, long term performance units, SARs | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Share based compensation | 15,000,000 | 18,000,000 | 12,000,000 | |||||||||||||
Unrecognized compensation costs | 15,000,000 | $ 15,000,000 | ||||||||||||||
Unrecognized compensation costs, weighted average period | 1 year 9 months 18 days | |||||||||||||||
Employee Stock Option [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Cash received from stock option exercises | $ 8,000,000 | $ 16,000,000 | $ 4,000,000 | |||||||||||||
Restricted Stock | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Unrecognized compensation costs | $ 8,000,000 | $ 8,000,000 | ||||||||||||||
Unrecognized compensation costs, weighted average period | 1 year 8 months 22 days | |||||||||||||||
Weighted average grant-date fair value of restricted stock granted | $ 55.80 | $ 57.22 | $ 68.04 | |||||||||||||
Supplemental Stock Ownership Plan | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Authorized treasury shares available for purchase under the supplemental stock ownership plan | 1,100,000 | |||||||||||||||
2002 Long-Term Incentive Plan | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Authorized common stock available for issuance under the plan | 4,000,000 | |||||||||||||||
2006 Long-Term Incentive Plan | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Authorized common stock available for issuance under the plan | 3,500,000 | 2,300,000 | ||||||||||||||
Count of each share from a stock option award against shares available for issuance under the plan | 1,000,000 | |||||||||||||||
Count of each share from a full value award against shares available for issuance under the plan | 1.49 | 1.25 | ||||||||||||||
Shares of common stock remain authorized for delivery | 2,374,879 | 2,374,879 | ||||||||||||||
Less - Common Stock Held as Treasury Stock, at Cost | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 200,000,000 | |||||||||||||||
Less - Common Stock Held as Treasury Stock, at Cost | Open Market [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Stock repurchased during period | 2,936,950 | 4,182,613 | 4,228,633 | |||||||||||||
Maximum [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Term for stock options (in years) | 20 years | |||||||||||||||
Minimum [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Term for stock options (in years) | 7 years | |||||||||||||||
2012 Through 2014 [Member] | Performance Shares [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Restriction period for restricted common stock | 3 years | |||||||||||||||
2014 Through 2016 [Member] | Performance Shares [Member] | ||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||||||||
Restriction period for restricted common stock | 3 years |
Common Stock - Stock Options St
Common Stock - Stock Options Status and Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Shares Under Option Outstanding Beginning Balance (in shares) | 343,327 | 434,821 | 438,341 | 606,525 | 606,525 | ||
Canceled (in shares) | (2,214) | ||||||
Forfeited (in shares) | (628) | (41,369) | (278) | (1,107) | |||
Exercised (in shares) | (24,683) | (50,125) | (3,242) | (164,863) | |||
Shares Under Option Outstanding Ending Balance (in shares) | 318,016 | 343,327 | 434,821 | 438,341 | 318,016 | 606,525 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||||
Weighted Average Exercise Prices, Outstanding, Beginning Balance (in dollars per share) | $ 43.44 | $ 40.16 | $ 40.22 | $ 38.54 | $ 38.54 | ||
Canceled (in dollars per share) | 56.23 | ||||||
Forfeited (in dollars per share) | 62.54 | 19.53 | 66.54 | 56.23 | |||
Exercised (in dollars per share) | 40.86 | 34.79 | 45.42 | 33.70 | |||
Weighted Average Exercise Prices, Outstanding, Ending Balance (in dollars per share) | $ 43.60 | $ 43.44 | $ 40.16 | $ 40.22 | $ 43.60 | $ 38.54 | |
Weighted Average Remaining Life in Years | 2 years 3 months 18 days | 2 years 4 months 24 days | 2 years 4 months 24 days | 2 years 7 months 6 days | 2 years 7 months 6 days | ||
Aggregate Intrinsic Value, Outstanding, Beginning Balance | $ 4 | $ 8 | $ 11 | $ 12 | $ 12 | ||
Aggregate Intrinsic Value, Exercised | 0 | 1 | 0 | 5 | 6 | $ 11 | $ 10 |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 5 | $ 4 | $ 8 | $ 11 | $ 5 | $ 12 |
Common Stock - Nonvested Restri
Common Stock - Nonvested Restricted Shares (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Granted | $ 66.77 | $ 36.36 | $ 52.85 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Nonvested Restricted Shares, Beginning Balance (in shares) | 436,476 | 449,290 | 447,602 | 591,416 | 591,416 | ||
Granted (in shares) | 2,001 | 23,295 | 182,543 | ||||
Vested (in shares) | (19,228) | (4,581) | (15,336) | (261,003) | |||
Forfeited (in shares) | (6,997) | (10,234) | (6,271) | (65,354) | |||
Nonvested Restricted Shares, Ending Balance (in shares) | 410,251 | 436,476 | 449,290 | 447,602 | 410,251 | 591,416 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Nonvested, Weighted Average Grant Date Fair Value, Beginning of Period | $ 49.87 | $ 49.79 | $ 49.25 | $ 44.63 | $ 44.63 | ||
Granted | 55.80 | 57.22 | 68.04 | ||||
Vested | 47.45 | 55.52 | 46.77 | 50.95 | |||
Forfeited | 51.79 | 44.82 | 48.10 | 53.12 | |||
Nonvested, Weighted Average Grant Date Fair Value, End of Period | $ 49.95 | $ 49.87 | $ 49.79 | $ 49.25 | $ 49.95 | $ 44.63 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Authorized shares (in shares) | 50,000,000 | 50,000,000 |
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Outstanding shares (in shares) | 0 | 0 |
Pension Plans, Postretirement87
Pension Plans, Postretirement and Other Employee Benefits - Additional Information (Detail) $ in Millions | Jan. 02, 2012plan | Feb. 29, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Pension benefit obligations | $ 734 | |||||
Pension benefit obligations with funding requirements | 666 | |||||
Pension Fund assets available to fund pension benefit obligations | 640 | |||||
Pension benefit obligations with no funding requirements | $ 68 | |||||
Acceptable tolerance limit of investment allocations for securities | 5.00% | |||||
Defined Compensation Plan, Amended Employee Match Percentage on Fifty Percent of Employee Contributions | 50.00% | |||||
Employer contributions | $ 18 | $ 10 | $ 32 | |||
Expected contributions in 2013 | $ 15 | |||||
Non-cash contribution charge | $ 72 | $ 6 | ||||
Minimum retirement age for eligible employees of the post retirement plans | 55 years | |||||
Minimum years of service for eligible employees of the post retirement plans | 10 years | |||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 6.80% | 7.00% | 7.00% | |||
Defined Benefit Plan Ultimate Health Care Cost Year Five | 4.50% | 4.50% | 4.50% | |||
Retirement Savings Plan | plan | 1 | |||||
Maximum percentage of salary deferral allowed under the Employee Stock Ownership Plans | 75.00% | |||||
Defined Compensation Plan, Amended Employee Match Percentage on One Hundred Percent of Employee Contributions | 3.00% | |||||
Expense recorded relating to employee matching contribution | $ 29 | $ 28 | $ 27 | |||
Equity Securities | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Targeted pension plan allocations in securities | 70.00% | |||||
Debt Securities | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Targeted pension plan allocations in securities | 30.00% | |||||
Postretirement | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
One percentage point increase effect on postretirement benefit obligation | $ 17 | |||||
One percentage point decrease effect on postretirement benefit obligation | 14 | |||||
Pension Plans, Defined Benefit | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Expected contributions in 2013 | $ 9 | |||||
Maximum [Member] | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined Compensation Plan, Amended Employee Match Percentage on Fifty Percent of Employee Contributions | 5.00% | |||||
Maximum [Member] | Postretirement | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined benefit plan effect of one percentage point increase on service and interest cost components | $ 1 | |||||
Defined benefit plan effect of one percentage point decrease on service and interest cost components | 1 | |||||
United States | Postretirement | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Employer contributions | 10 | 9 | ||||
United States | Pension Plans, Defined Benefit | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Pension Fund assets available to fund pension benefit obligations | 202 | 192 | $ 304 | |||
Employer contributions | $ 18 | $ 20 | ||||
United States | Minimum [Member] | ||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | ||||||
Defined Compensation Plan, Amended Employee Match Percentage on Fifty Percent of Employee Contributions | 3.00% | |||||
Defined Compensation Plan, Amended Employee Match Percentage on One Hundred Percent of Employee Contributions | 100.00% |
Pension Plans, Postretirement88
Pension Plans, Postretirement and Other Employee Benefits - Pension Plan Assets Classes of Securities (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
United States | Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 70.00% | 70.00% |
United States | Debt Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 29.00% | 30.00% |
United States | Real Estate | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 0.00% | 0.00% |
United States | All Other | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 1.00% | 0.00% |
Foreign | Equity Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 50.00% | 61.00% |
Foreign | Debt Securities | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 42.00% | 34.00% |
Foreign | Real Estate | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 2.00% | 2.00% |
Foreign | All Other | ||
Schedule of Pension and Other Postretirment Plan Assets by Fair Value [Line Items] | ||
Debt Securities | 6.00% | 3.00% |
Pension Plans, Postretirement89
Pension Plans, Postretirement and Other Employee Benefits - Plan Assets Using Fair Value Hierarchy (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 640 | |
United States | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 179 | $ 168 |
United States | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 23 | 24 |
United States | U.S. large cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 85 | 77 |
United States | U.S. large cap | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 21 | 22 |
United States | Non-U.S. large cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 15 | |
United States | Non-U.S. mid cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 15 | |
United States | Emerging Markets | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 5 | 5 |
United States | U.S. corporate bonds | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 3 | 2 |
United States | U.S. other fixed income | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 56 | 54 |
United States | Cash held in bank accounts | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2 | 2 |
United States | U.S. Small Cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 15 | 15 |
Foreign | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 143 | 124 |
Foreign | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 34 | 27 |
Foreign | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 252 | 209 |
Foreign | Fair Value, Inputs, Level 3 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 9 |
Foreign | U.S. large cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 31 | 26 |
Foreign | U.S. large cap | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 2 |
Foreign | U.S. large cap | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 31 | 30 |
Foreign | Non-U.S. small cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 1 | |
Foreign | Non-U.S. small cap | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 10 |
Foreign | Non-U.S. large cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 56 | 46 |
Foreign | Non-U.S. large cap | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 10 | 7 |
Foreign | Non-U.S. large cap | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 48 | 67 |
Foreign | Non-U.S. mid cap | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 9 | 8 |
Foreign | Non-U.S. mid cap | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 15 |
Foreign | Emerging Markets | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 1 | 1 |
Foreign | Emerging Markets | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 3 | 2 |
Foreign | Emerging Markets | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 3 |
Foreign | U.S. corporate bonds | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 |
Foreign | Cash held in bank accounts | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 7 |
Foreign | Cash held in bank accounts | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 2 |
Foreign | Non-U.S. treasuries/government bonds | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 32 | 29 |
Foreign | Non-U.S. treasuries/government bonds | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 |
Foreign | Non-U.S. treasuries/government bonds | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 112 | 38 |
Foreign | Non-U.S. municipal obligations | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 1 | 1 |
Foreign | Non-U.S. real estate | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 |
Foreign | Non-U.S. real estate | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 6 | 5 |
Foreign | U.S. treasuries/government bond | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 |
Foreign | Non-U.S. corporate bonds | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Alternative Investments, Fair Value of Plan Assets | 13 | 12 |
Foreign | Non-U.S. corporate bonds | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 4 |
Foreign | Non-U.S. corporate bonds | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 15 | 23 |
Foreign | Non-U.S. other fixed income | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2 | 1 |
Foreign | Insurance contracts | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 16 | 13 |
Foreign | Insurance contracts | Fair Value, Inputs, Level 3 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 9 |
Foreign | U.S. mid cap | Fair Value, Inputs, Level 1 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |
Foreign | U.S. mid cap | Fair Value, Inputs, Level 2 | ||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2 | $ 2 |
Pension Plans, Postretirement90
Pension Plans, Postretirement and Other Employee Benefits - Changes in Fair Value of Level 3 Assets (Detail) - Foreign - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | ||
Balance at December 31 of the previous year | $ 9 | $ 8 |
Relating to assets still held at the reporting date | 0 | 1 |
Ending Balance at December 31 | $ 9 | $ 9 |
Pension Plans, Postretirement91
Pension Plans, Postretirement and Other Employee Benefits - Significant Concentrations of Risk (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Investment in Tenneco stock | $ 1 | $ 1 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Investment in Tenneco stock | $ 21 | $ 22 |
Investment in Tenneco stock as a percentage of total plan assets | 3.30% | 4.00% |
Pension Plans, Postretirement92
Pension Plans, Postretirement and Other Employee Benefits - Summary of Amount Recognised in Balance Sheets for Pension Plans and Postretirement Benefit Plan (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Interest cost | $ 6 | $ 6 | $ 6 | ||
Fair value at December 31 of the previous year | |||||
Employer contributions | $ 18 | $ 10 | 32 | ||
Fair value at December 31 | 640 | ||||
Noncurrent liabilities | (268) | (273) | |||
Pension Plans, Defined Benefit | United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefit obligation at December 31 of the previous year | 272 | 272 | 416 | ||
Settlement | (7) | (1) | |||
Service cost | 1 | 1 | |||
Interest cost | 10 | 15 | 17 | ||
Actuarial (gain)/loss | 10 | (7) | |||
Benefits paid | (23) | (152) | |||
Benefit obligation at December 31 | 263 | 272 | 416 | ||
Fair value at December 31 of the previous year | 192 | 192 | 304 | ||
Settlement | (7) | (1) | |||
Actual return on plan assets | 22 | 21 | |||
Employer contributions | 18 | 20 | |||
Benefits paid | (23) | (152) | |||
Fair value at December 31 | 202 | 192 | 304 | ||
Unfunded status at December 31 | (61) | (80) | |||
Net actuarial loss | 135 | 146 | |||
Prior service cost | 0 | 0 | |||
Net amount recognized at December 31 | 74 | 66 | |||
Pension Assets | 0 | 0 | |||
Current liabilities | (2) | (20) | |||
Noncurrent liabilities | (59) | (60) | |||
Net amount recognized | (61) | (80) | |||
Pension Plans, Defined Benefit | Foreign | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefit obligation at December 31 of the previous year | 438 | 438 | 425 | ||
Currency rate conversion | 42 | (38) | |||
Settlement | (3) | ||||
Service cost | 9 | 8 | |||
Interest cost | 13 | 14 | 15 | ||
Administrative expenses/taxes paid | (2) | (1) | |||
Plan amendments | (1) | ||||
Actuarial (gain)/loss | (9) | 50 | |||
Benefits paid | (18) | (20) | |||
Participants' contributions | 1 | 1 | |||
Benefit obligation at December 31 | 471 | 438 | 425 | ||
Fair value at December 31 of the previous year | 369 | 369 | 355 | ||
Currency rate conversion | 35 | (33) | |||
Settlement | (3) | ||||
Actual return on plan assets | 42 | 50 | |||
Employer contributions | 14 | 17 | |||
Participants' contributions | 1 | 1 | |||
Benefits paid | (18) | (20) | |||
Fair value at December 31 | 438 | 369 | 355 | ||
Unfunded status at December 31 | (33) | (69) | |||
Net actuarial loss | 122 | 145 | |||
Prior service cost | 3 | 4 | |||
Net amount recognized at December 31 | 92 | 80 | |||
Pension Assets | 28 | 9 | |||
Current liabilities | (3) | (2) | |||
Noncurrent liabilities | (58) | (76) | |||
Net amount recognized | (33) | (69) | |||
Postretirement | United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefit obligation at December 31 of the previous year | $ 143 | 143 | 141 | ||
Interest cost | 6 | 6 | |||
Actuarial (gain)/loss | 12 | 5 | |||
Benefits paid | (10) | (9) | |||
Benefit obligation at December 31 | 151 | 143 | $ 141 | ||
Employer contributions | 10 | 9 | |||
Benefits paid | (10) | (9) | |||
Unfunded status at December 31 | (151) | (143) | |||
Net actuarial loss | 56 | 48 | |||
Prior service cost | (3) | (4) | |||
Net amount recognized at December 31 | (98) | (99) | |||
Pension Assets | 0 | 0 | |||
Current liabilities | (9) | (10) | |||
Noncurrent liabilities | (142) | (133) | |||
Net amount recognized | $ (151) | $ (143) |
Pension Plans, Postretirement93
Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0 | $ 0 | $ 0 |
Interest cost | 6 | 6 | 6 |
Net Amortization [Abstract] | |||
Actuarial loss | 0 | 5 | 6 |
Prior service cost | (1) | (1) | (4) |
Prior period correction | 4 | 0 | 0 |
Net pension costs | 9 | 10 | 8 |
Pension Plans, Defined Benefit | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 1 | 1 | 1 |
Interest cost | 10 | 15 | 17 |
Expected return on plan assets | (14) | (23) | (23) |
Settlement loss | 8 | 72 | 4 |
Net Amortization [Abstract] | |||
Actuarial loss | 5 | 8 | 8 |
Net pension costs | 10 | 73 | 7 |
Pension Plans, Defined Benefit | Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 9 | 8 | 9 |
Interest cost | 13 | 14 | 15 |
Expected return on plan assets | (25) | (20) | (21) |
Settlement loss | 1 | 0 | 0 |
Net Amortization [Abstract] | |||
Actuarial loss | 9 | 7 | 8 |
Prior service cost | 1 | 1 | 1 |
Net pension costs | $ 8 | $ 10 | $ 12 |
Pension Plans, Postretirement94
Pension Plans, Postretirement and Other Employee Benefits - Amounts to be Reflected as Component of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
United States | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total | $ 135 | $ 146 |
Net actuarial loss | 5 | |
Prior service cost | 0 | |
Total expected amounts that will be amortized from accumulated other comprehensive income in 2013 | 5 | |
Foreign | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total | 125 | 149 |
Net actuarial loss | 7 | |
Prior service cost | 1 | |
Total expected amounts that will be amortized from accumulated other comprehensive income in 2013 | 8 | |
Pension Plans, Defined Benefit | United States | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | 135 | 146 |
Prior service cost | 0 | 0 |
Pension Plans, Defined Benefit | Foreign | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial loss | 122 | 145 |
Prior service cost | $ 3 | $ 4 |
Pension Plans, Postretirement95
Pension Plans, Postretirement and Other Employee Benefits - Amounts Recognized for Pension and Postretirement Benefits in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Change in total actuarial loss, Before-tax amount | $ 12 | $ 51 | |
Amortization of prior service cost included in net periodic pension and postretirement cost, Before-tax amount | 0 | (1) | |
Amortization of actuarial loss included in net periodic pension and postretirement cost, Before-tax amount | 26 | 20 | |
Other comprehensive income - pension benefits, Before-tax amount | 38 | 70 | |
Change in total actuarial loss, Tax Benefit | (4) | (21) | |
Amortization of prior service cost included in net periodic pension and postretirement cost, Tax Benefit | 0 | 0 | |
Amortization of actuarial loss included in net periodic pension and postretirement cost, Tax Benefit | (7) | (8) | |
Other comprehensive - pension benefits, Tax Benefit | (11) | (29) | |
Change in total actuarial loss, Net-of-tax amount | 8 | 30 | |
Amortization of prior service cost included in net periodic pension and postretirement cost, Net-of-tax Amount | 0 | (1) | |
Amortization of actuarial loss included in net periodic pension and postretirement cost, Net-of-tax Amount | 19 | 12 | |
Other comprehensive income - pension benefits, Net-of-tax Amount | $ 27 | $ 41 | $ 11 |
Pension Plans, Postretirement96
Pension Plans, Postretirement and Other Employee Benefits - Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets for All Pension Plans (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 263 | $ 272 |
Accumulated benefit obligation | 263 | 272 |
Fair value of plan assets | 202 | 192 |
Foreign | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 117 | 266 |
Accumulated benefit obligation | 112 | 261 |
Fair value of plan assets | $ 56 | $ 188 |
Pension Plans, Postretirement97
Pension Plans, Postretirement and Other Employee Benefits - Estimated Pension Plan Benefit Payments (Detail) - Pension Plans, Defined Benefit $ in Millions | Dec. 31, 2017USD ($) |
United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | $ 14 |
2,019 | 15 |
2,020 | 16 |
2,021 | 14 |
2,022 | 16 |
2023-2027 | 76 |
Foreign | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | 20 |
2,019 | 21 |
2,020 | 23 |
2,021 | 22 |
2,022 | 23 |
2023-2027 | $ 128 |
Pension Plans, Postretirement98
Pension Plans, Postretirement and Other Employee Benefits - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Weighted-average assumptions used to determine benefit obligations | ||
Discount rate | 3.80% | 4.20% |
Pension Plans, Defined Benefit | United States | ||
Weighted-average assumptions used to determine benefit obligations | ||
Discount rate | 3.80% | 4.20% |
Pension Plans, Defined Benefit | Foreign | ||
Weighted-average assumptions used to determine benefit obligations | ||
Discount rate | 2.60% | 2.80% |
Rate of compensation increase | 2.50% | 2.50% |
Pension Plans, Postretirement99
Pension Plans, Postretirement and Other Employee Benefits - Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.20% | 4.30% | 4.10% |
Pension Plans, Defined Benefit | United States | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 4.20% | 4.30% | 4.10% |
Expected long-term return on plan assets | 7.80% | 7.60% | 7.80% |
Pension Plans, Defined Benefit | Foreign | |||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate | 2.80% | 3.50% | 3.20% |
Expected long-term return on plan assets | 5.20% | 5.70% | 5.90% |
Rate of compensation increase | 2.50% | 2.70% | 3.00% |
Pension Plans, Postretiremen100
Pension Plans, Postretirement and Other Employee Benefits - Amounts to be Reflected as Component of Net Periodic Cost (Detail) - United States - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 135 | $ 146 | |
Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | 56 | 48 | |
Prior service cost | $ (3) | $ (4) | |
Forecast | Postretirement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss | $ 6 | ||
Prior service cost | (1) | ||
Total | $ 5 |
Pension Plans, Postretiremen101
Pension Plans, Postretirement and Other Employee Benefits - Estimated Subsidies Under Medicare Prescription Drug Improvement and Modernization Act (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Retirement Benefits [Abstract] | |
2,018 | $ 9 |
2,019 | 9 |
2,020 | 9 |
2,021 | 9 |
2,022 | 9 |
2023-2027 | $ 45 |
Pension Plans, Postretiremen102
Pension Plans, Postretirement and Other Employee Benefits - Assumptions Used to Determine Postretirement Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Discount rate, Benefit Obligation | 3.80% | 4.20% | |
Discount rate, Net Periodic Benefit Cost | 4.20% | 4.30% | 4.10% |
Segment and Geographic Area 103
Segment and Geographic Area Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Area 104
Segment and Geographic Area Information - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | $ 2,391 | $ 2,274 | $ 2,317 | $ 2,292 | $ 2,155 | $ 2,096 | $ 2,212 | $ 2,136 | $ 9,274 | $ 8,599 | $ 8,181 |
Revenues | 9,274 | 8,599 | 8,181 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 135 | $ 134 | $ 27 | $ 121 | 71 | $ 150 | $ 171 | $ 124 | 417 | 516 | 508 |
Total assets | 4,842 | 4,346 | 4,842 | 4,346 | 3,970 | ||||||
Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 9,274 | 8,599 | 8,181 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 660 | 720 | 608 | ||||||||
Total assets | 4,779 | 4,299 | 4,779 | 4,299 | 3,938 | ||||||
Operating Segments | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 165 | 192 | 202 | ||||||||
Reclass and Elims | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 0 | 0 | 0 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 0 | 0 | 0 | ||||||||
Total assets | 63 | 47 | 63 | 47 | 32 | ||||||
Reclass and Elims | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | (165) | (192) | (202) | ||||||||
Clean Air Division | Operating Segments | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 6,216 | 5,764 | 5,377 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 421 | 432 | 371 | ||||||||
Total assets | 2,812 | 2,559 | 2,812 | 2,559 | 2,298 | ||||||
Clean Air Division | Operating Segments | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 65 | 108 | 116 | ||||||||
Ride Performance Division | Operating Segments | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 1,807 | 1,593 | 1,545 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 61 | 97 | 63 | ||||||||
Total assets | 1,155 | 959 | 1,155 | 959 | 756 | ||||||
Ride Performance Division | Operating Segments | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 60 | 47 | 44 | ||||||||
Aftermarket | Operating Segments | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 1,251 | 1,242 | 1,259 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 178 | 191 | 174 | ||||||||
Total assets | $ 812 | 781 | 812 | 781 | 884 | ||||||
Aftermarket | Operating Segments | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 40 | 37 | 42 | ||||||||
Other | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues from external customers | 0 | 0 | 0 | ||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | (243) | (204) | (100) | ||||||||
Total assets | $ 0 | 0 | 0 | ||||||||
Other | Intersegment Revenues | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 | $ 0 |
Segment and Geographic Area 105
Segment and Geographic Area Information - Revenue Percent by Major Customers (Detail) - Net Sales | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
General Motors | |||
Revenue, Major Customer [Line Items] | |||
Customer accounted for ten percent or more of net sales | 14.00% | 17.00% | 15.00% |
Ford | |||
Revenue, Major Customer [Line Items] | |||
Customer accounted for ten percent or more of net sales | 13.00% | 13.00% | 14.00% |
Segment and Geographic Area 106
Segment and Geographic Area Information - Geographic Information Table (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Geographical Information [Line Items] | |||
Revenues | $ 9,274 | $ 8,599 | $ 8,181 |
Long-lived assets | 1,767 | 1,469 | 1,356 |
Total assets | 4,842 | 4,346 | 3,970 |
United States | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 3,632 | 3,512 | 3,334 |
Long-lived assets | 620 | 541 | 496 |
Total assets | 1,831 | 1,897 | 1,726 |
China | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 1,283 | 1,186 | 1,101 |
Long-lived assets | 279 | 217 | 203 |
Total assets | 988 | 795 | 699 |
Germany | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 798 | 764 | 807 |
Long-lived assets | 136 | 111 | 108 |
Total assets | 304 | 231 | 258 |
POLAND | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 488 | 385 | 250 |
Long-lived assets | 216 | 165 | 144 |
Total assets | 383 | 322 | 275 |
United Kingdom | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 482 | 387 | 307 |
Long-lived assets | 46 | 38 | 32 |
Total assets | 205 | 130 | 101 |
Other Foreign | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 2,591 | 2,365 | 2,382 |
Long-lived assets | 470 | 397 | 373 |
Total assets | 1,221 | 1,119 | 1,027 |
Reclass & Elims | |||
Schedule Of Geographical Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Total assets | $ (90) | $ (148) | $ (116) |
Commitments and Contingencies -
Commitments and Contingencies - Capital and Lease Commitments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Estimate of authorized expenditures required to complete facilities and projects | $ 149 | ||
Total rental expense | 81 | $ 74 | $ 70 |
Operating Leases, 2018 | 46 | ||
Operating Leases, 2019 | 36 | ||
Operating Leases, 2020 | 30 | ||
Operating Leases, 2021 | 23 | ||
Operating Leases, 2022 | 18 | ||
Operating Leases, Beyond 2022 | 25 | ||
Operating Leases, Total minimum lease payments | 178 | ||
Capital leased assets | 1 | $ 1 | |
Capital Lease, 2018 | 1 | ||
Capital Lease, 2019 | 1 | ||
Capital Lease, 2020 | 1 | ||
Capital Lease, 2021 | 1 | ||
Capital Lease, 2022 | $ 1 |
Commitments and Contingencie108
Commitments and Contingencies - Environmental Matters (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental remediation accrual, discounted basis | $ 14 | |
Portion of environmental remediation costs recorded in other current liabilities | 2 | |
Portion of environmental remediation costs recorded in deferred credits and other liabilities | $ 12 | |
Weighted average discount rate | 2.30% | |
Environmental remediation accrual, undiscounted basis | $ 17 | |
Expected payments of environmental remediation costs, 2018 | 2 | |
Expected payments of environmental remediation costs, 2019 | 1 | |
Expected payments of environmental remediation costs, 2020 | 1 | |
Expected payments of environmental remediation costs, 2021 | 1 | |
Expected payments of environmental remediation costs, 2022 | 1 | |
Expected payments of environmental remediation costs, thereafter | 11 | |
Estimated liability | $ 132 | |
Payments for settlement | $ 45 |
Commitments and Contingencie109
Commitments and Contingencies - Other Legal Proceedings, Claims and Investigations (Detail) | 9 Months Ended |
Sep. 30, 2015DefendantLegalMatter | |
Commitments and Contingencies Disclosure [Abstract] | |
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | LegalMatter | 500 |
Number of defendants in many asbestos related cases | Defendant | 100 |
Commitments and Contingencie110
Commitments and Contingencies - Warranty Accrual Table (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning Balance | $ 20 | $ 23 | $ 26 |
Accruals related to product warranties | 16 | 12 | 15 |
Reductions for payments made | (10) | (15) | (18) |
Ending Balance | $ 26 | $ 20 | $ 23 |
Supplemental Guarantor Conde111
Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Ownership percentage of existing and future material domestic owned subsidiaries | 100.00% |
Supplemental Guarantor Conde112
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Comprehensive Income Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales and operating revenues- | |||||||||||
External | $ 9,274 | $ 8,599 | $ 8,181 | ||||||||
Affiliated companies | 0 | 0 | 0 | ||||||||
Net sales and operating revenues | $ 2,391 | $ 2,274 | $ 2,317 | $ 2,292 | $ 2,155 | $ 2,096 | $ 2,212 | $ 2,136 | 9,274 | 8,599 | 8,181 |
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 2,020 | 1,911 | 1,949 | 1,929 | 1,792 | 1,741 | 1,814 | 1,769 | 7,809 | 7,116 | 6,821 |
Goodwill impairment charge | 11 | 11 | 0 | ||||||||
Engineering, research, and development | 158 | 154 | 146 | ||||||||
Selling, general, and administrative | 636 | 513 | 482 | ||||||||
Depreciation and amortization of other intangibles | 224 | 212 | 203 | ||||||||
Costs and expenses | 8,838 | 7,995 | 7,652 | ||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | (5) | (5) | (4) | ||||||||
Other income (expense) | (14) | (83) | (17) | ||||||||
Total other income (expense) | (19) | (88) | (21) | ||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 135 | 134 | 27 | 121 | 71 | 150 | 171 | 124 | 417 | 516 | 508 |
Interest expense- | |||||||||||
External (net of interest capitalized) | 73 | 92 | 67 | ||||||||
Affiliated companies (net of interest income) | 0 | 0 | 0 | ||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | 344 | 424 | 441 | ||||||||
Income tax (benefit) expense | 70 | 0 | 146 | ||||||||
Equity in net income from affiliated companies | 0 | 0 | 0 | ||||||||
Net Income | 274 | 424 | 295 | ||||||||
Less: Net income attributable to noncontrolling interests | 67 | 68 | 54 | ||||||||
Net income attributable to Tenneco Inc. | $ 68 | $ 83 | $ (3) | $ 59 | $ 38 | $ 179 | $ 82 | $ 57 | 207 | 356 | 241 |
Comprehensive income attributable to Tenneco Inc. | 331 | 356 | 121 | ||||||||
Reclass & Elims | |||||||||||
Net sales and operating revenues- | |||||||||||
External | 0 | 0 | 0 | ||||||||
Affiliated companies | (1,180) | (1,273) | (969) | ||||||||
Net sales and operating revenues | (1,180) | (1,273) | (969) | ||||||||
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | (1,180) | (1,273) | (969) | ||||||||
Goodwill impairment charge | 0 | ||||||||||
Engineering, research, and development | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | 0 | 0 | 0 | ||||||||
Depreciation and amortization of other intangibles | 0 | 0 | 0 | ||||||||
Costs and expenses | (1,180) | (1,273) | (969) | ||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | 0 | 0 | 0 | ||||||||
Other income (expense) | (53) | (15) | (48) | ||||||||
Total other income (expense) | (53) | (15) | (48) | ||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | (53) | (15) | (48) | ||||||||
Interest expense- | |||||||||||
External (net of interest capitalized) | 0 | 0 | 0 | ||||||||
Affiliated companies (net of interest income) | 0 | 0 | 0 | ||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | (53) | (15) | (48) | ||||||||
Income tax (benefit) expense | 0 | 0 | |||||||||
Equity in net income from affiliated companies | (414) | (618) | (390) | ||||||||
Net Income | (467) | (633) | (438) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Tenneco Inc. | (467) | (633) | (438) | ||||||||
Comprehensive income attributable to Tenneco Inc. | (467) | (633) | (438) | ||||||||
Guarantor Subsidiaries | |||||||||||
Net sales and operating revenues- | |||||||||||
External | 3,889 | 3,865 | 3,683 | ||||||||
Affiliated companies | 540 | 526 | 411 | ||||||||
Net sales and operating revenues | 4,429 | 4,391 | 4,094 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 3,769 | 3,714 | 3,410 | ||||||||
Goodwill impairment charge | 0 | ||||||||||
Engineering, research, and development | 77 | 76 | 70 | ||||||||
Selling, general, and administrative | 352 | 235 | 184 | ||||||||
Depreciation and amortization of other intangibles | 88 | 86 | 87 | ||||||||
Costs and expenses | 4,286 | 4,111 | 3,751 | ||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | (2) | (2) | (1) | ||||||||
Other income (expense) | (16) | (91) | 28 | ||||||||
Total other income (expense) | (18) | (93) | 27 | ||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 125 | 187 | 370 | ||||||||
Interest expense- | |||||||||||
External (net of interest capitalized) | 19 | (2) | (2) | ||||||||
Affiliated companies (net of interest income) | (15) | (12) | 54 | ||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | 121 | 201 | 318 | ||||||||
Income tax (benefit) expense | (12) | (97) | 43 | ||||||||
Equity in net income from affiliated companies | 149 | 166 | 78 | ||||||||
Net Income | 282 | 464 | 353 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Tenneco Inc. | 282 | 464 | 353 | ||||||||
Comprehensive income attributable to Tenneco Inc. | 282 | 464 | 353 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Net sales and operating revenues- | |||||||||||
External | 5,385 | 4,734 | 4,498 | ||||||||
Affiliated companies | 640 | 747 | 558 | ||||||||
Net sales and operating revenues | 6,025 | 5,481 | 5,056 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 5,220 | 4,675 | 4,380 | ||||||||
Goodwill impairment charge | 11 | ||||||||||
Engineering, research, and development | 81 | 78 | 76 | ||||||||
Selling, general, and administrative | 284 | 277 | 295 | ||||||||
Depreciation and amortization of other intangibles | 136 | 126 | 116 | ||||||||
Costs and expenses | 5,732 | 5,156 | 4,867 | ||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | (3) | (3) | (3) | ||||||||
Other income (expense) | 55 | 23 | 3 | ||||||||
Total other income (expense) | 52 | 20 | 0 | ||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 345 | 345 | 189 | ||||||||
Interest expense- | |||||||||||
External (net of interest capitalized) | 5 | 4 | 3 | ||||||||
Affiliated companies (net of interest income) | 6 | 7 | (56) | ||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | 334 | 334 | 242 | ||||||||
Income tax (benefit) expense | 82 | 97 | 103 | ||||||||
Equity in net income from affiliated companies | 0 | 0 | |||||||||
Net Income | 252 | 237 | 139 | ||||||||
Less: Net income attributable to noncontrolling interests | 67 | 68 | 54 | ||||||||
Net income attributable to Tenneco Inc. | 185 | 169 | 85 | ||||||||
Comprehensive income attributable to Tenneco Inc. | 185 | 169 | 85 | ||||||||
Tenneco Inc. (Parent Company) | |||||||||||
Net sales and operating revenues- | |||||||||||
External | 0 | 0 | 0 | ||||||||
Affiliated companies | 0 | 0 | 0 | ||||||||
Net sales and operating revenues | 0 | 0 | 0 | ||||||||
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 0 | 0 | 0 | ||||||||
Goodwill impairment charge | 0 | ||||||||||
Engineering, research, and development | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | 0 | 1 | 3 | ||||||||
Depreciation and amortization of other intangibles | 0 | 0 | 0 | ||||||||
Costs and expenses | 0 | 1 | 3 | ||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Total other income (expense) | 0 | 0 | 0 | ||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 0 | (1) | (3) | ||||||||
Interest expense- | |||||||||||
External (net of interest capitalized) | 49 | 90 | 66 | ||||||||
Affiliated companies (net of interest income) | 9 | 5 | 2 | ||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | (58) | (96) | (71) | ||||||||
Income tax (benefit) expense | 0 | 0 | |||||||||
Equity in net income from affiliated companies | 265 | 452 | 312 | ||||||||
Net Income | 207 | 356 | 241 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Tenneco Inc. | 207 | 356 | 241 | ||||||||
Comprehensive income attributable to Tenneco Inc. | $ 331 | $ 356 | $ 121 |
Supplemental Guarantor Conde113
Supplemental Guarantor Condensed Consolidating Financial Statements - Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 315 | $ 347 | ||
Restricted cash | 3 | 2 | ||
Receivables, net | 1,321 | 1,294 | ||
Inventories | 869 | 730 | ||
Prepayments and other | 291 | 229 | ||
Total current assets | 2,799 | 2,602 | ||
Other assets: | ||||
Investment in affiliated companies | 0 | 0 | ||
Notes and advances receivable from affiliates | 0 | 0 | ||
Long-term receivables, net | 9 | 9 | ||
Goodwill | 49 | 57 | ||
Intangibles, net | 22 | 19 | ||
Deferred income taxes | 204 | 199 | ||
Other | 144 | 103 | ||
Other Assets | 428 | 387 | ||
Plant, property, and equipment, at cost | 4,008 | 3,548 | ||
Less-Accumulated depreciation and amortization | (2,393) | (2,191) | ||
Plant, property and equipment, net | 1,615 | 1,357 | ||
Total assets | 4,842 | 4,346 | $ 3,970 | |
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt-non-affiliated | 83 | 90 | ||
Short-term debt-affiliated | 0 | 0 | ||
Accounts payable | 1,705 | 1,501 | ||
Accrued taxes | 45 | 39 | ||
Other | 433 | 343 | ||
Total current liabilities | 2,266 | 1,973 | ||
Long-term debt-non-affiliated | 1,358 | 1,294 | ||
Long-term debt-affiliated | 0 | 0 | ||
Deferred income taxes | 11 | 7 | ||
Pension, postretirement benefits and other liabilities | 423 | 412 | ||
Commitments and contingencies | 0 | 0 | ||
Total liabilities | 4,058 | 3,686 | ||
Redeemable noncontrolling interests | 42 | 40 | 41 | $ 34 |
Tenneco Inc. Shareholders' equity | 696 | 573 | 425 | |
Noncontrolling interests | 46 | 47 | ||
Total equity | 742 | 620 | $ 464 | |
Total liabilities, redeemable noncontrolling interests and equity | 4,842 | 4,346 | ||
Reclass & Elims | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | (648) | (504) | ||
Inventories | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Total current assets | (648) | (504) | ||
Other assets: | ||||
Investment in affiliated companies | (2,647) | (2,418) | ||
Notes and advances receivable from affiliates | (23,877) | (22,249) | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other | 0 | 0 | ||
Other Assets | (26,524) | (24,667) | ||
Plant, property, and equipment, at cost | 0 | 0 | ||
Less-Accumulated depreciation and amortization | 0 | 0 | ||
Plant, property and equipment, net | 0 | 0 | ||
Total assets | (27,172) | (25,171) | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt-non-affiliated | 0 | 0 | ||
Short-term debt-affiliated | (556) | (354) | ||
Accounts payable | (89) | (88) | ||
Accrued taxes | 0 | 0 | ||
Other | (3) | (62) | ||
Total current liabilities | (648) | (504) | ||
Long-term debt-non-affiliated | 0 | 0 | ||
Long-term debt-affiliated | (23,877) | (22,249) | ||
Deferred income taxes | 0 | 0 | ||
Pension, postretirement benefits and other liabilities | 0 | 0 | ||
Total liabilities | (24,525) | (22,753) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. Shareholders' equity | (2,647) | (2,418) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (2,647) | (2,418) | ||
Total liabilities, redeemable noncontrolling interests and equity | (27,172) | (25,171) | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 7 | 9 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 402 | 386 | ||
Inventories | 383 | 361 | ||
Prepayments and other | 99 | 62 | ||
Total current assets | 891 | 818 | ||
Other assets: | ||||
Investment in affiliated companies | 1,389 | 1,211 | ||
Notes and advances receivable from affiliates | 791 | 939 | ||
Long-term receivables, net | 8 | 9 | ||
Goodwill | 22 | 22 | ||
Intangibles, net | 5 | 7 | ||
Deferred income taxes | 161 | 47 | ||
Other | 66 | 46 | ||
Other Assets | 2,442 | 2,281 | ||
Plant, property, and equipment, at cost | 1,478 | 1,371 | ||
Less-Accumulated depreciation and amortization | (934) | (895) | ||
Plant, property and equipment, net | 544 | 476 | ||
Total assets | 3,877 | 3,575 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt-non-affiliated | 0 | |||
Short-term debt-affiliated | 408 | 167 | ||
Accounts payable | 562 | 562 | ||
Accrued taxes | 8 | 4 | ||
Other | 203 | 147 | ||
Total current liabilities | 1,181 | 880 | ||
Long-term debt-non-affiliated | 632 | 0 | ||
Long-term debt-affiliated | 1,093 | 1,543 | ||
Deferred income taxes | 0 | 0 | ||
Pension, postretirement benefits and other liabilities | 296 | 297 | ||
Total liabilities | 3,202 | 2,720 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. Shareholders' equity | 675 | 855 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 675 | 855 | ||
Total liabilities, redeemable noncontrolling interests and equity | 3,877 | 3,575 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 308 | 338 | ||
Restricted cash | 3 | 2 | ||
Receivables, net | 1,567 | 1,412 | ||
Inventories | 486 | 369 | ||
Prepayments and other | 192 | 167 | ||
Total current assets | 2,556 | 2,288 | ||
Other assets: | ||||
Investment in affiliated companies | 0 | 0 | ||
Notes and advances receivable from affiliates | 19,119 | 16,529 | ||
Long-term receivables, net | 1 | 0 | ||
Goodwill | 27 | 35 | ||
Intangibles, net | 17 | 12 | ||
Deferred income taxes | 43 | 23 | ||
Other | 78 | 49 | ||
Other Assets | 19,285 | 16,648 | ||
Plant, property, and equipment, at cost | 2,530 | 2,177 | ||
Less-Accumulated depreciation and amortization | (1,459) | (1,296) | ||
Plant, property and equipment, net | 1,071 | 881 | ||
Total assets | 22,912 | 19,817 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt-non-affiliated | 83 | 75 | ||
Short-term debt-affiliated | 148 | 187 | ||
Accounts payable | 1,232 | 1,027 | ||
Accrued taxes | 37 | 35 | ||
Other | 221 | 243 | ||
Total current liabilities | 1,721 | 1,567 | ||
Long-term debt-non-affiliated | 12 | 12 | ||
Long-term debt-affiliated | 18,981 | 16,466 | ||
Deferred income taxes | 11 | 7 | ||
Pension, postretirement benefits and other liabilities | 127 | 115 | ||
Total liabilities | 20,852 | 18,167 | ||
Redeemable noncontrolling interests | 42 | 40 | ||
Tenneco Inc. Shareholders' equity | 1,972 | 1,563 | ||
Noncontrolling interests | 46 | 47 | ||
Total equity | 2,018 | 1,610 | ||
Total liabilities, redeemable noncontrolling interests and equity | 22,912 | 19,817 | ||
Tenneco Inc. (Parent Company) | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepayments and other | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Other assets: | ||||
Investment in affiliated companies | 1,258 | 1,207 | ||
Notes and advances receivable from affiliates | 3,967 | 4,781 | ||
Long-term receivables, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes | 0 | 129 | ||
Other | 0 | 8 | ||
Other Assets | 5,225 | 6,125 | ||
Plant, property, and equipment, at cost | 0 | 0 | ||
Less-Accumulated depreciation and amortization | 0 | 0 | ||
Plant, property and equipment, net | 0 | 0 | ||
Total assets | 5,225 | 6,125 | ||
Short-term debt (including current maturities of long-term debt) | ||||
Short-term debt-non-affiliated | 0 | 15 | ||
Short-term debt-affiliated | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Other | 12 | 15 | ||
Total current liabilities | 12 | 30 | ||
Long-term debt-non-affiliated | 714 | 1,282 | ||
Long-term debt-affiliated | 3,803 | 4,240 | ||
Deferred income taxes | 0 | 0 | ||
Pension, postretirement benefits and other liabilities | 0 | 0 | ||
Total liabilities | 4,529 | 5,552 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Tenneco Inc. Shareholders' equity | 696 | 573 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 696 | 573 | ||
Total liabilities, redeemable noncontrolling interests and equity | $ 5,225 | $ 6,125 |
Supplemental Guarantor Conde114
Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | ||||
Net cash provided (used) by operating activities | $ 517 | $ 374 | $ 415 | |
Investing Activities | ||||
Proceeds from sale of assets | 8 | 6 | 4 | |
Proceeds from sale of equity interest | 9 | |||
Cash payments for plant, property, and equipment | (394) | (325) | (286) | |
Cash payments for software related intangible assets | (25) | (20) | (23) | |
Proceeds from deferred purchase price of factored receivables | 112 | 110 | 113 | |
Other | (10) | |||
Net cash used by investing activities | (300) | (229) | (192) | |
Financing Activities | ||||
Cash dividends | $ (53) | (53) | ||
Retirement of long-term debt | (19) | (531) | (37) | |
Issuance of long-term debt | 137 | 509 | 1 | |
Debt issuance cost on long-term debt | (8) | (9) | (1) | |
Tax impact from stock-based compensation | 0 | |||
Purchase of common stock under the share repurchase program | (169) | (225) | (213) | |
Issuance of common shares | (1) | 13 | 1 | |
Decrease in bank overdrafts | (7) | 10 | (22) | |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | (67) | 202 | 102 | |
Net increase in short-term borrowings secured by accounts receivable | 30 | |||
Intercompany dividends and net (decrease) increase in intercompany obligations | 0 | 0 | 0 | |
Distribution to noncontrolling interests partners | (64) | (55) | (44) | |
Net cash (used) provided by financing activities | (251) | (86) | (183) | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 3 | 2 | (37) | |
(Decrease) increase in cash, cash equivalents and restricted cash | (31) | 61 | 3 | |
Cash, cash equivalents and restricted cash, January 1 | 349 | 288 | 285 | |
Cash, cash equivalents and restricted cash, December 31 | 318 | 318 | 349 | 288 |
Reclass & Elims | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | (53) | (15) | (47) | |
Investing Activities | ||||
Proceeds from sale of assets | 0 | 0 | 0 | |
Proceeds from sale of equity interest | 0 | |||
Cash payments for plant, property, and equipment | 0 | 0 | 0 | |
Cash payments for software related intangible assets | 0 | 0 | 0 | |
Proceeds from deferred purchase price of factored receivables | 0 | |||
Net cash used by investing activities | 0 | 0 | 0 | |
Financing Activities | ||||
Cash dividends | 0 | |||
Retirement of long-term debt | 0 | 0 | 0 | |
Issuance of long-term debt | 0 | 0 | 0 | |
Debt issuance cost on long-term debt | 0 | 0 | 0 | |
Tax impact from stock-based compensation | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | 0 | |
Issuance of common shares | 0 | 0 | 0 | |
Decrease in bank overdrafts | 0 | 0 | 0 | |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | 0 | 0 | 0 | |
Net increase in short-term borrowings secured by accounts receivable | 0 | |||
Intercompany dividends and net (decrease) increase in intercompany obligations | 53 | 15 | 47 | |
Distribution to noncontrolling interests partners | 0 | 0 | 0 | |
Net cash (used) provided by financing activities | 53 | 15 | 47 | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash, January 1 | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash, December 31 | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | 284 | 176 | 204 | |
Investing Activities | ||||
Proceeds from sale of assets | 3 | 0 | 0 | |
Proceeds from sale of equity interest | 0 | |||
Cash payments for plant, property, and equipment | (148) | (117) | (114) | |
Cash payments for software related intangible assets | (16) | (13) | (16) | |
Proceeds from deferred purchase price of factored receivables | 0 | 0 | 0 | |
Other | (4) | |||
Net cash used by investing activities | (165) | (130) | (130) | |
Financing Activities | ||||
Cash dividends | 0 | |||
Retirement of long-term debt | (10) | 0 | 0 | |
Issuance of long-term debt | 400 | 0 | 0 | |
Debt issuance cost on long-term debt | (8) | 0 | 0 | |
Tax impact from stock-based compensation | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | 0 | |
Issuance of common shares | 0 | 0 | 0 | |
Decrease in bank overdrafts | 0 | 0 | 0 | |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | 246 | 0 | 0 | |
Net increase in short-term borrowings secured by accounts receivable | 0 | |||
Intercompany dividends and net (decrease) increase in intercompany obligations | (749) | (39) | (82) | |
Distribution to noncontrolling interests partners | 0 | 0 | 0 | |
Net cash (used) provided by financing activities | (121) | (39) | (82) | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (2) | 7 | (8) | |
Cash, cash equivalents and restricted cash, January 1 | 9 | 2 | 10 | |
Cash, cash equivalents and restricted cash, December 31 | 7 | 7 | 9 | 2 |
Non-Guarantor Subsidiaries | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | 290 | 190 | 198 | |
Investing Activities | ||||
Proceeds from sale of assets | 5 | 6 | 4 | |
Proceeds from sale of equity interest | 9 | |||
Cash payments for plant, property, and equipment | (246) | (208) | (172) | |
Cash payments for software related intangible assets | (9) | (7) | (7) | |
Proceeds from deferred purchase price of factored receivables | 112 | 110 | 113 | |
Other | (6) | |||
Net cash used by investing activities | (135) | (99) | (62) | |
Financing Activities | ||||
Cash dividends | 0 | |||
Retirement of long-term debt | (3) | (16) | (22) | |
Issuance of long-term debt | 1 | 9 | 1 | |
Debt issuance cost on long-term debt | 0 | 0 | 0 | |
Tax impact from stock-based compensation | 0 | |||
Purchase of common stock under the share repurchase program | 0 | 0 | 0 | |
Issuance of common shares | 0 | 0 | 0 | |
Decrease in bank overdrafts | (7) | 10 | (22) | |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | 5 | 5 | 20 | |
Net increase in short-term borrowings secured by accounts receivable | 0 | |||
Intercompany dividends and net (decrease) increase in intercompany obligations | (119) | 8 | (21) | |
Distribution to noncontrolling interests partners | (64) | (55) | (44) | |
Net cash (used) provided by financing activities | (187) | (39) | (88) | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 3 | 2 | (37) | |
(Decrease) increase in cash, cash equivalents and restricted cash | (29) | 54 | 11 | |
Cash, cash equivalents and restricted cash, January 1 | 340 | 286 | 275 | |
Cash, cash equivalents and restricted cash, December 31 | 311 | 311 | 340 | 286 |
Tenneco Inc. (Parent Company) | ||||
Operating Activities | ||||
Net cash provided (used) by operating activities | (4) | 23 | 60 | |
Investing Activities | ||||
Proceeds from sale of assets | 0 | 0 | 0 | |
Proceeds from sale of equity interest | 0 | |||
Cash payments for plant, property, and equipment | 0 | 0 | 0 | |
Cash payments for software related intangible assets | 0 | 0 | 0 | |
Proceeds from deferred purchase price of factored receivables | 0 | |||
Net cash used by investing activities | 0 | 0 | 0 | |
Financing Activities | ||||
Cash dividends | (53) | |||
Retirement of long-term debt | (6) | (515) | (15) | |
Issuance of long-term debt | (264) | 500 | 0 | |
Debt issuance cost on long-term debt | 0 | (9) | (1) | |
Tax impact from stock-based compensation | 0 | |||
Purchase of common stock under the share repurchase program | (169) | (225) | (213) | |
Issuance of common shares | (1) | 13 | 1 | |
Decrease in bank overdrafts | 0 | 0 | 0 | |
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | (318) | 197 | 82 | |
Net increase in short-term borrowings secured by accounts receivable | 30 | |||
Intercompany dividends and net (decrease) increase in intercompany obligations | 815 | 16 | 56 | |
Distribution to noncontrolling interests partners | 0 | 0 | 0 | |
Net cash (used) provided by financing activities | 4 | (23) | (60) | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash, January 1 | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash, December 31 | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Detail)
Subsequent Events (Detail) - $ / shares | Feb. 07, 2018 | Feb. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 1 | |
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 0.25 |
Quarterly Financial Data (Un116
Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales and operating revenues | $ 2,391 | $ 2,274 | $ 2,317 | $ 2,292 | $ 2,155 | $ 2,096 | $ 2,212 | $ 2,136 | $ 9,274 | $ 8,599 | $ 8,181 |
Cost of sales (exclusive of depreciation and amortization shown below) | 2,020 | 1,911 | 1,949 | 1,929 | 1,792 | 1,741 | 1,814 | 1,769 | 7,809 | 7,116 | 6,821 |
Earnings Before Interest Expense, Income Taxes and Noncontrolling Interests | 135 | 134 | 27 | 121 | 71 | 150 | 171 | 124 | 417 | 516 | 508 |
Net income attributable to Tenneco Inc. | $ 68 | $ 83 | $ (3) | $ 59 | $ 38 | $ 179 | $ 82 | $ 57 | $ 207 | $ 356 | $ 241 |
Basic Earnings per Share of Common Stock (in dollars per share) | $ 1.33 | $ 1.57 | $ (0.05) | $ 1.10 | $ 0.70 | $ 3.22 | $ 1.44 | $ 1 | $ 3.93 | $ 6.36 | $ 4.05 |
Earnings per average share of common stock (in dollars per share) | $ 1.33 | $ 1.57 | $ (0.05) | $ 1.09 | $ 0.69 | $ 3.19 | $ 1.43 | $ 0.99 | $ 3.91 | $ 6.31 | $ 4.01 |
VALUATION AND QUALIFYING ACC117
VALUATION AND QUALIFYING ACCOUNTS (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts And Notes Receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 16 | $ 16 | $ 16 |
Charged to Costs and Expenses | 1 | 1 | 4 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1 | 1 | 4 |
Balance at End of Year | 16 | 16 | 16 |
Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 145 | 127 | 139 |
Charged to Costs and Expenses | (1) | 18 | 15 |
Charged to Other Accounts | 0 | 0 | (3) |
Deductions | 19 | 0 | (24) |
Balance at End of Year | $ 163 | $ 145 | $ 127 |