Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements

The cumulative effect of the adoption was recognized as an increase to retained earnings (accumulated deficit) of $1 million and the changes made to our consolidated January 1, 2018 opening balance sheet for the adoption of ASC Topic 606 were as follows:

	Balance at December 31, 2017			Adjustments Due to ASU 2014-09			Adjustments Due to ASU 2016-16 (a)			Balance at January 1, 2018
	(Millions)
Balance Sheet
Assets
Inventory	$	869		$	(5	)	$	—		$	864
Prepayments and other (including contract assets)	291			6			—			297
Equity
Retained earnings (accumulated deficit)	(946		)	1			(2		)	(947		)

(a) Cumulative effect of adopting Accounting Standard Update 2016-16, Income Taxes - Intra Entity Transfers of Assets Other Than Inventory (Topic 740). See note 11 for further information.

The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements for the three month period ended March 31, 2018:

	For the three months ended March 31, 2018
	As Reported		Balances Without Adoption of ASC Topic 606		Effect of Change Higher/(Lower)
			(Millions)
Income Statement
Revenues
Net sales and operating revenues	$	2,574	$	2,576	$	2
Cost and expenses
Cost of sales (exclusive of depreciation and amortization)	2,198		2,200		2

	March 31, 2018
	As Reported			Balances Without Adoption of ASC Topic 606			Effect of Change Higher/(Lower)
				(Millions)
Balance Sheet
Assets
Inventory	$	911		$	919		$	(8	)
Prepayments and other (including contract assets)	340			331			9
Equity
Retained earnings (accumulated deficit)	(902		)	(903		)	1

	For the three months ended March 31, 2018
	As Reported			Balances Without Adoption of ASC Topic 606			Effect of Change Higher/(Lower)
				(Millions)
Cash Flows
Operating Activities
Increase/(decrease) in inventories	$	(34	)	$	(36	)	$	2
Increase/(decrease) in prepayments and other current assets	(45		)	(43		)	(2		)

Disaggregation of Revenue

The new reporting segments will be more closely aligned with key growth strategies. In the following table, revenue is disaggregated accordingly:

	Three Months Ended March 31, 2018
			Substrate		Value-add
	Total Revenues		Sales		Revenues
	(Millions)
Clean Air	$	1,756	$	652	$	1,104
Ride Performance	513		—		513
Aftermarket	305		—		305
Total Tenneco Inc.	$	2,574	$	652	$	1,922