Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME

	Three Months Ended September 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	990		$	1,382		$	—		$	—		$	2,372
Affiliated companies	145			152			—			(297		)	—
	1,135			1,534			—			(297		)	2,372
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	962			1,349			—			(297		)	2,014
Engineering, research, and development	20			19			—			—			39
Selling, general, and administrative	67			74			—			—			141
Depreciation and amortization of other intangibles	30			35			—			—			65
	1,079			1,477			—			(297		)	2,259
Other expense (income)
Loss on sale of receivables	1			2			—			—			3
Other expense (income)	10			(10		)	—			6			6
	11			(8		)	—			6			9
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	45			65			—			(6		)	104
Interest expense —
External (net of interest capitalized)	9			2			10			—			21
Affiliated companies (net of interest income)	(4		)	—			4			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	40			63			(14		)	(6		)	83
Income tax expense	10			10			—			—			20
Equity in net income from affiliated companies	38			—			68			(106		)	—
Net income	68			53			54			(112		)	63
Less: Net income attributable to noncontrolling interests	—			9			—			—			9
Net income attributable to Tenneco Inc.	$	68		$	44		$	54		$	(112	)	$	54
Comprehensive income attributable to Tenneco Inc.	$	68		$	44		$	30		$	(112	)	$	30

STATEMENT OF COMPREHENSIVE INCOME

	Three Months Ended September 30, 2017
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	917		$	1,357		$	—		$	—		$	2,274
Affiliated companies	128			143			—			(271		)	—
	1,045			1,500			—			(271		)	2,274
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	887			1,295			—			(271		)	1,911
Engineering, research, and development	17			23			—			—			40
Selling, general, and administrative	50			77			—			—			127
Depreciation and amortization of other intangibles	23			35			—			—			58
	977			1,430			—			(271		)	2,136
Other expense (income)
Loss on sale of receivables	1			1			—			—			2
Other expense (income)	12			(10		)	—			—			2
	13			(9		)	—			—			4
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	55			79			—			—			134
Interest expense —
External (net of interest capitalized)	7			2			10			—			19
Affiliated companies (net of interest income)	(5		)	3			2			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	53			74			(12		)	—			115
Income tax (benefit) expense	(5		)	21			—			—			16
Equity in net income from affiliated companies	31			—			95			(126		)	—
Net income	89			53			83			(126		)	99
Less: Net income attributable to noncontrolling interests	—			16			—			—			16
Net income attributable to Tenneco Inc.	$	89		$	37		$	83		$	(126	)	$	83
Comprehensive income attributable to Tenneco Inc.	$	89		$	31		$	114		$	(120	)	$	114

STATEMENT OF COMPREHENSIVE INCOME

	Nine Months Ended September 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	3,050		$	4,433		$	—		$	—		$	7,483
Affiliated companies	402			464			—			(866		)	—
	3,452			4,897			—			(866		)	7,483
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	2,956			4,281			—			(866		)	6,371
Engineering, research, and development	57			65			—			—			122
Selling, general, and administrative	222			228			—			—			450
Depreciation and amortization of other intangibles	74			109			—			—			183
	3,309			4,683			—			(866		)	7,126
Other expense (income)
Loss on sale of receivables	5			3			—			—			8
Other expense (income)	40			(41		)	—			16			15
	45			(38		)	—			16			23
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	98			252			—			(16		)	334
Interest expense —
External (net of interest capitalized)	25			7			29			—			61
Affiliated companies (net of interest income)	(11		)	—			11			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	84			245			(40		)	(16		)	273
Income tax expense	9			63			—			—			72
Equity in net income from affiliated companies	122			—			202			(324		)	—
Net income	197			182			162			(340		)	201
Less: Net income attributable to noncontrolling interests	—			39			—			—			39
Net income attributable to Tenneco Inc.	$	197		$	143		$	162		$	(340	)	$	162
Comprehensive income attributable to Tenneco Inc.	$	197		$	143		$	71		$	(340	)	$	71

STATEMENT OF COMPREHENSIVE INCOME

	Nine Months Ended September 30, 2017
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	2,958		$	3,925		$	—		$	—		$	6,883
Affiliated companies	413			497			—			(910		)	—
	3,371			4,422			—			(910		)	6,883
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	2,865			3,834			—			(910		)	5,789
Engineering, research, and development	56			59			—			—			115
Selling, general, and administrative	301			219			—			—			520
Depreciation and amortization of other intangibles	65			100			—			—			165
	3,287			4,212			—			(910		)	6,589
Other expense (income)
Loss on sale of receivables	2			2			—			—			4
Other expense (income)	24			(31		)	—			15			8
	26			(29		)	—			15			12
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	58			239			—			(15		)	282
Interest expense —
External (net of interest capitalized)	10			4			40			—			54
Affiliated companies (net of interest income)	(12		)	6			6			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	60			229			(46		)	(15		)	228
Income tax expense	6			35			—			—			41
Equity in net income from affiliated companies	119			—			185			(304		)	—
Net income	173			194			139			(319		)	187
Less: Net income attributable to noncontrolling interests	—			48			—			—			48
Net income attributable to Tenneco Inc.	$	173		$	146		$	139		$	(319	)	$	139
Comprehensive income attributable to Tenneco Inc.	$	173		$	140		$	234		$	(313	)	$	234

Balance Sheet

BALANCE SHEET

	September 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	5		$	197		$	—	$	—		$	202
Restricted cash	—			1			—		—			1
Receivables, net	434			1,707			—		(733		)	1,408
Inventories	414			542			—		—			956
Prepayments and other	139			230			—		—			369
Total current assets	992			2,677			—		(733		)	2,936
Other assets:
Investment in affiliated companies	1,385			—			1,357		(2,742		)	—
Notes and advances receivable from affiliates	801			20,907			4,180		(25,888		)	—
Long-term receivables, net	12			—			—		—			12
Goodwill	22			25			—		—			47
Intangibles, net	5			15			—		—			20
Deferred income taxes	171			56			—		—			227
Other	63			91			—		—			154
	2,459			21,094			5,537		(28,630		)	460
Plant, property, and equipment, at cost	1,564			2,504			—		—			4,068
Less — Accumulated depreciation and amortization	(978		)	(1,458		)	—		—			(2,436		)
	586			1,046			—		—			1,632
Total assets	$	4,037		$	24,817		$	5,537	$	(29,363	)	$	5,028
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt):
Short-term debt — non-affiliated	$	—		$	225		$	15	$	—		$	240
Short-term debt — affiliated	458			157			—		(615		)	—
Accounts payable	724			1,157			—		(112		)	1,769
Accrued taxes	4			34			—		—			38
Other	210			232			9		(6		)	445
Total current liabilities	1,396			1,805			24		(733		)	2,492
Long-term debt:
Long-term debt — non-affiliated	580			9			715		—			1,304
Long-term debt — affiliated	1,061			20,766			4,061		(25,888		)	—
Deferred income taxes	—			11			—		—			11
Pension, postretirement benefits and other liabilities	298			120			—		—			418
Total liabilities	3,335			22,711			4,800		(26,621		)	4,225
Redeemable noncontrolling interests	—			28			—		—			28
Tenneco Inc. shareholders’ equity	702			2,040			737		(2,742		)	737
Noncontrolling interests	—			38			—		—			38
Total equity	702			2,078			737		(2,742		)	775
Total liabilities, redeemable noncontrolling interests and equity	$	4,037		$	24,817		$	5,537	$	(29,363	)	$	5,028

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’ EQUITY
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:
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
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

Statement of Cash Flows

STATEMENT OF CASH FLOWS

	Three Months Ended September 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	111		$	(145	)	$	(4	)	$	(3	)	$	(41	)
Investing Activities
Proceeds from sale of assets	—			1			—			—			1
Cash payments for plant, property, and equipment	(29		)	(49		)	—			—			(78		)
Cash payments for software related intangible assets	(1		)	(2		)	—			—			(3		)
Proceeds from deferred purchase price of factored receivables	—			36			—			—			36
Other	(4		)	—			—			—			(4		)
Net cash used by investing activities	(34		)	(14		)	—			—			(48		)
Financing Activities
Repurchase of common shares	—			—			(1		)	—			(1		)
Cash dividends	—			—			(14		)	—			(14		)
Payments of long-term debt	(5		)	—			—			—			(5		)
Net increase in bank overdrafts	—			2			—			—			2
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	(243		)	164			2			—			(77		)
Net increase in short-term borrowings secured by accounts receivable	170			—			—			—			170
Intercompany dividend payments and net increase (decrease) in intercompany obligations	4			(24		)	17			3			—
Distributions to noncontrolling interest partners	—			(16		)	—			—			(16		)
Net cash (used) provided by financing activities	(74		)	126			4			3			59
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			(4		)	—			—			(4		)
Increase (decrease) in cash, cash equivalents and restricted cash	3			(37		)	—			—			(34		)
Cash, cash equivalents and restricted cash, July 1	3			234			—			—			237
Cash, cash equivalents and restricted cash, September 30 (Note)	$	6		$	197		$	—		$	—		$	203

Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.

STATEMENT OF CASH FLOWS

	Three Months Ended September 30, 2017
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	39		$	(2	)	$	(8	)	$	(4	)	$	25
Investing Activities
Cash payments for plant, property, and equipment	(29		)	(61		)	—			—			(90		)
Cash payments for software related intangible assets	(4		)	(1		)	—			—			(5		)
Proceeds from deferred purchase price of factored receivables	—			28			—			—			28
Other	(1		)	—			—			—			(1		)
Net cash used by investing activities	(34		)	(34		)	—			—			(68		)
Financing Activities
Issuance of common shares	—			—			1			—			1
Cash dividends	—			—			(14		)	—			(14		)
Payments of long-term debt	—			(1		)	—			—			(1		)
Purchase of common stock under the share repurchase program	—			—			(71		)	—			(71		)
Net decrease in bank overdrafts	—			(3		)	—			—			(3		)
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable	82			2			—			—			84
Intercompany dividend payments and net (decrease) increase in intercompany obligations	(87		)	(9		)	92			4			—
Distributions to noncontrolling interest partners	—			(12		)	—			—			(12		)
Net cash (used) provided by financing activities	(5		)	(23		)	8			4			(16		)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			3			—			—			3
Decrease in cash, cash equivalents and restricted cash	—			(56		)	—			—			(56		)
Cash, cash equivalents and restricted cash, July 1	4			331			—			—			335
Cash, cash equivalents and restricted cash, September 30 (Note)	$	4		$	275		$	—		$	—		$	279

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

	Nine Months Ended September 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	190		$	(132	)	$	(9	)	$	(12	)	$	37
Investing Activities
Proceeds from sale of assets	1			5			—			—			6
Cash payments for plant, property, and equipment	(100		)	(142		)	—			—			(242		)
Cash payments for software related intangible assets	(7		)	(6		)	—			—			(13		)
Proceeds from deferred purchase price of factored receivables	—			102			—			—			102
Other	(2		)	—			—			—			(2		)
Net cash used by investing activities	(108		)	(41		)	—			—			(149		)
Financing Activities
Repurchase of common shares	—			—			(2		)	—			(2		)
Cash dividends	—			—			(39		)	—			(39		)
Payments of long-term debt	(14		)	(3		)	—			—			(17		)
Debt issuance cost for long-term debt	(2		)	—			—			—			(2		)
Net decrease in bank overdrafts	—			(5		)	—			—			(5		)
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	(189		)	144			16			—			(29		)
Net increase in short-term borrowings secured by accounts receivable	150			—			—			—			150
Intercompany dividend payments and net (decrease) increase in intercompany obligations	(28		)	(18		)	34			12			—
Distributions to noncontrolling interest partners	—			(44		)	—			—			(44		)
Net cash (used) provided by financing activities	(83		)	74			9			12			12
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			(15		)	—			—			(15		)
Decrease in cash, cash equivalents and restricted cash	(1		)	(114		)	—			—			(115		)
Cash, cash equivalents and restricted cash, January 1	7			311			—			—			318
Cash, cash equivalents and restricted cash, September 30 (Note)	$	6		$	197		$	—		$	—		$	203

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

	Nine Months Ended September 30, 2017
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	102		$	24		$	(29	)	$	(11	)	$	86
Investing Activities
Proceeds from sale of assets	3			3			—			—			6
Proceeds from sale of equity interest	—			9			—			—			9
Cash payments for plant, property, and equipment	(110		)	(173		)	—			—			(283		)
Cash payments for software related intangible assets	(10		)	(7		)	—			—			(17		)
Proceeds from deferred purchase price of factored receivables	—			77			—			—			77
Other	(5		)	—			—			—			(5		)
Net cash used by investing activities	(122		)	(91		)	—			—			(213		)
Financing Activities
Repurchase of common shares	—			—			(2		)	—			(2		)
Cash dividends	—			—			(40		)	—			(40		)
Payments of long-term debt	—			(3		)	(6		)	—			(9		)
Issuance of long-term debt	400			—			(264		)	—			136
Debt issuance cost for long-term debt	(8		)	—			—			—			(8		)
Purchase of common stock under the share repurchase program	—			—			(131		)	—			(131		)
Net decrease in bank overdrafts	—			(12		)	—			—			(12		)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables	451			16			(323		)	—			144
Net increase in short-term borrowings secured by accounts receivables	—			—			20			—			20
Intercompany dividend payments and net (decrease) increase in intercompany obligations	(828		)	42			775			11			—
Distributions to noncontrolling interest partners	—			(45		)	—			—			(45		)
Net cash provided (used) by financing activities	15			(2		)	29			11			53
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			4			—			—			4
Decrease in cash, cash equivalents and restricted cash	(5		)	(65		)	—			—			(70		)
Cash, cash equivalents and restricted cash, January 1	9			340			—			—			349
Cash, cash equivalents and restricted cash, September 30 (Note)	$	4		$	275		$	—		$	—		$	279

Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.