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Revenue (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements
The cumulative effect of the adoption was recognized as decrease to 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)
Consolidated Balance Sheet
 
 
 
 
 
 
 
 Assets
 
 
 
 
 
 
 
   Inventory
$
869

 
$
(5
)
 
$
—

 
$
864

   Prepayments and other (including contract assets)
291

 
6

 
—

 
297

 Equity
 
 
 
 
 
 
 
 Accumulated deficit
(946
)
 
1

 
(2
)
 
(947
)
(a) Cumulative effect of adopting ASU 2016-16, Income Taxes - Intra Entity Transfers of Assets Other Than Inventory (Topic 740). See Note 12, New Accounting Pronouncements for further information.
The following tables summarize the impacts of adopting ASC Topic 606 on the Company’s consolidated financial statements as of and for the three and nine month periods ended September 30, 2018:
 
Three Months Ended
September 30, 2018
 
Nine Months Ended
September 30, 2018
 
As Reported
 
Balances Without Adoption of ASC Topic 606
 
Effect of Change Higher/(Lower)
 
As Reported
 
Balances Without Adoption of ASC Topic 606
 
Effect of Change Higher/(Lower)
 
(Millions)
 
(Millions)
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
   Net sales and operating revenues
$
2,372

 
$
2,372

 
$
—

 
$
7,483

 
$
7,481

 
$
2

Cost and expenses
 
 
 
 
 
 
 
 
 
 
 
   Cost of sales (exclusive of depreciation and amortization)
2,014

 
2,014

 
—

 
6,371

 
6,369

 
2



 
September 30, 2018
 
As Reported
 
Balances Without Adoption of ASC Topic 606
 
Effect of Change Higher/(Lower)
 
 
 
(Millions)
 
 
Consolidated Balance Sheet
 
 
 
 
 
 Assets
 
 
 
 
 
   Inventory
$
956

 
$
963

 
$
(7
)
   Prepayments and other (including contract assets)
369

 
349

 
20

Liabilities
 
 
 
 
 
   Accrued liabilities
299

 
287

 
12

 Equity
 
 
 
 
 
   Accumulated deficit
(823
)
 
(824
)
 
1


 
Three Months Ended
September 30, 2018
 
Nine Months Ended
September 30, 2018
 
As Reported
 
Balances Without Adoption of ASC Topic 606
 
Effect of Change Higher/(Lower)
 
As Reported
 
Balances Without Adoption of ASC Topic 606
 
Effect of Change Higher/(Lower)
 
 
 
(Millions)
 
 
 
 
 
(Millions)
 
 
Consolidated Statements of Cash Flows
 
 
 
 
 
 
 
 
 
 
Operating Activities
 
 
 
 
 
 
 
 
 
 
 
   Increase in inventories
$
(65
)
 
$
(64
)
 
$
(1
)
 
$
(118
)
 
$
(125
)
 
$
7

   Increase in prepayments and other current assets
(21
)
 
(21
)
 
—

 
(91
)
 
(71
)
 
(20
)
   (Decrease) increase in other current liabilities
(19
)
 
(20
)
 
1

 
11

 
(1
)
 
12
Disaggregation of Revenue
Revenue from contracts with customers is disaggregated by product lines, as it depicts the nature and amount of the Company’s revenue that is aligned with the Company's key growth strategies. In the following table, revenue is disaggregated accordingly:
 
Three Months Ended
September 30, 2018
 
Nine Months Ended
September 30, 2018
 
Total Revenues
 
Substrate Sales
 
Value-add Revenues
 
Total Revenues
 
Substrate Sales
 
Value-add Revenues
 
(Millions)
 
(Millions)
Clean Air
$
1,602

 
$
596

 
$
1,006

 
$
5,052

 
$
1,869

 
$
3,183

Ride Performance
461

 
—

 
461

 
1,480

 
—

 
1,480

Aftermarket
309

 
—

 
309

 
951

 
—

 
951

Total Tenneco Inc.
$
2,372

 
$
596

 
$
1,776

 
$
7,483

 
$
1,869

 
$
5,614