Pension Plans, Postretirement and Other Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Amounts Recognized in Balance Sheets for Pension Plans and Postretirement Benefit Plan

The measurement date for all defined benefit plans is December 31. The following provides a reconciliation of the plans’ benefit obligations, plan assets, and funded status as of December 31, 2019 and 2018:



	Pension Plans												Other Postretirement Benefits Plans
	U.S.						Non-U.S.
	2019			2018			2019			2018			2019			2018
Change in benefit obligation:
Benefit obligation, beginning of year	$	1,302		$	263		$	946		$	471		$	322		$	151
Federal-Mogul acquisition	—			1,064			—			545			—			263
Service cost	2			1			24			13			1			—
Interest cost	53			21			24			15			13			8
Settlement	(67		)	(1		)	(5		)	(13		)	—			—
Curtailment	—			—			—			—			—			(1		)
Administrative expenses/taxes paid	—			—			(4		)	(3		)	—			—
Plan amendments	—			—			—			2			(17		)	(66		)
Actuarial (gain)/loss	105			(12		)	105			(16		)	6			(24		)
Benefits paid	(75		)	(34		)	(44		)	(22		)	(26		)	(15		)
Medicare subsidies received	—			—			—			—			—			1
Participants’ contributions	—			—			1			1			1			1
Held for sale	—			—			—			(16		)	—			—
Currency rate conversion and other	—			—			1			(31		)	—			4
Benefit obligation, end of year	1,320			1,302			1,048			946			300			322
Change in plan assets:
Fair value of plan assets, beginning of year	995			202			466			438			—			—
Federal-Mogul acquisition	—			943			—			81			—			—
Settlement	(67		)	(1		)	(5		)	(14		)	—			—
Actual return on plan assets	183			(122		)	55			(1		)	—			—
Administrative expenses/taxes paid	—			—			(4		)	—			—			—
Employer contributions	26			6			42			21			25			13
Medicare subsidies received	—			—			—			—			—			1
Participants’ contributions	—			—			1			1			1			1
Benefits paid	(75		)	(33		)	(44		)	(25		)	(26		)	(15		)
Held for sale	—			—			—			(10		)	—			—
Currency rate conversion and other	—			—			12			(25		)	—			—
Fair value of plan assets, end of year	1,062			995			523			466			—			—
Funded status of the plans	$	(258	)	$	(307	)	$	(525	)	$	(480	)	$	(300	)	$	(322	)

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized on the consolidated balance sheets consist of the following at December 31, 2019 and 2018:



	Pension Plans												Other Postretirement Benefits Plans
	U.S.						Non-U.S.						Other Postretirement Benefits Plans
	2019			2018			2019			2018			2019			2018
Noncurrent assets	$	—		$	—		$	35		$	33		$	—		$	—
Current liabilities	(4		)	(5		)	(17		)	(17		)	(25		)	(28		)
Noncurrent liabilities ^(a)	(254		)	(302		)	(543		)	(496		)	(275		)	(294		)
	$	(258	)	$	(307	)	$	(525	)	$	(480	)	$	(300	)	$	(322	)

^(a) Included in "Pension and postretirement benefits" within in the consolidated balance sheets is postemployment benefits of $73 million and $75 million at December 31, 2019 and 2018 which are not included in the tables above.

Amounts Recognized in Accumulated Other Comprehensive Loss for Pension Benefits

Amounts recognized in accumulated other comprehensive loss for pension and postretirement benefits, inclusive of tax effects, consist of the following components at December 31, 2019 and 2018:



	Pension Plans								Other Postretirement Benefits Plans
	U.S.				Non-U.S.				Other Postretirement Benefits Plans
	2019		2018		2019		2018		2019			2018
Actuarial loss	$	230	$	255	$	145	$	80	$	34		$	31
Prior service cost/(credit)	—		—		3		4		(70		)	(73		)
Total	$	230	$	255	$	148	$	84	$	(36	)	$	(42	)

Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets for all Pension Plans

Information for defined benefit plans with projected benefit obligations in excess of plan assets:



	Pension Plans								Other Postretirement Benefits Plans
	2019				2018				Other Postretirement Benefits Plans
	U.S.		Non-U.S.		U.S.		Non-U.S.		2019		2018
Projected benefit obligation	$	1,320	$	712	$	1,302	$	652	$	300	$	322
Fair value of plan assets	$	1,062	$	151	$	995	$	138	$	—	$	—

Information for pension plans with accumulated benefit obligations in excess of plan assets:



	December 31, 2019				December 31, 2018
	U.S.		Non-U.S.		U.S.		Non-U.S.
Projected benefit obligation	$	1,320	$	682	$	1,302	$	620
Accumulated benefit obligation	$	1,320	$	637	$	1,302	$	606
Fair value of plan assets	$	1,062	$	126	$	995	$	111

Components of Net Periodic Benefit Cost

Net periodic pension and postretirement benefits costs for the years 2019, 2018 and 2017, consist of the following components:



	Pension Plans																		Other Postretirement Benefits Plans
	U.S.									Non-U.S.									Other Postretirement Benefits Plans
	2019			2018			2017			2019			2018			2017			2019			2018		2017
Service cost	$	2		$	1		$	1		$	24		$	14		$	9		$	1		$	—	$	—
Interest cost	53			21			10			24			15			13			13			8		5
Expected return on plan assets	(67		)	(28		)	(14		)	(19		)	(18		)	(25		)	—			—		—
Curtailment loss (gain)	—			—			—			—			—			—			(7		)	1		—
Settlement loss	6			1			8			1			3			1			—			—		—
Net amortization:
Actuarial loss	5			5			5			5			6			9			4			5		4
Prior service cost (credit)	—			—			—			1			1			1			(8		)	—		(1		)
Net periodic costs	$	(1	)	$	—		$	10		$	36		$	21		$	8		$	3		$	14	$	8

Assumptions Used in Accounting for Pension Plans

The following assumptions were used in the accounting for the pension and other postretirement benefits plans for the years of 2019, 2018, and 2017:



	Pension Plans												Other Postretirement Benefits Plans
	U.S.						Non-U.S.						Other Postretirement Benefits Plans
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Weighted-average assumptions used to determine benefit obligations:
Discount rate	3.2	%	4.2	%	3.8	%	1.7	%	2.6	%	2.6	%	3.2	%	4.3	%	3.8	%
Rate of compensation increase	n/a		n/a		n/a		2.0	%	3.0	%	2.5	%	n/a		n/a		n/a

Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	4.2	%	4.1	%	4.2	%	2.6	%	2.4	%	2.8	%	4.3	%	4.2	%	4.2	%
Expected long-term return on plan assets	6.3	%	6.0	%	7.8	%	4.0	%	4.2	%	5.2	%	n/a		n/a		n/a
Rate of compensation increase	n/a		n/a		n/a		2.0	%	2.9	%	2.5	%	n/a		n/a		n/a

Components of Net Periodic Benefit Cost

Estimated amounts to be amortized from accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2020 based on December 31, 2019 plan measurements:



	2020
	Pension Plans				Other Postretirement Benefits Plans
	U.S.		Non-U.S		Other Postretirement Benefits Plans
Net actuarial loss	$	6	$	9	$	2
Prior service (credit)	—		—		(9		)
	$	6	$	9	$	(7	)

Estimated Pension Plan Benefit Payments

Estimated future benefit payments are as follows:



	Pension Plans				Other Postretirement Benefits Plans
Year	U.S.		Non-U.S.		Other Postretirement Benefits Plans
2020	$	97	$	44	$	25
2021	$	95	$	44	$	25
2022	$	98	$	46	$	24
2023	$	97	$	50	$	24
2024	$	96	$	48	$	23
2025-2029	$	410	$	251	$	99

Schedule of Health Care Cost Trend Rate

The weighted-average assumed health care cost trend rate used in determining next year's postretirement health care benefits are as follows:



	Other Postretirement Benefits Plans
	2019		2018		2017
Initial health care cost trend rate	6.6	%	6.9	%	6.8	%
Ultimate health care cost trend rate	4.9	%	4.9	%	4.5	%
Year ultimate health care cost trend rate reached	2027		2027		2027

The following table illustrates the sensitivity to a change in the assumed health care cost trend rate:



	Total Service and Interest Cost			Postretirement Benefits Obligation
100 basis point ("bp") increase in health care cost trend rate	$	—		$	21
100 bp decrease in health care cost trend rate	$	(1	)	$	(18	)

Pension Plan Assets Invested

Pension plan assets were invested in the following classes of securities:



	Percentage of Fair Market Value
	December 31, 2019
	U.S.		Non-U.S.
Equity securities	66	%	32	%
Fixed income securities	15	%	5	%
Debt securities	10	%	43	%
Insurance contracts	—	%	15	%
Other	9	%	5	%

Plan Assets using Fair Value Hierarchy

The following table presents the Company’s defined benefit plan assets measured at fair value by asset class:



	Fair Value Level as of December 31, 2019
	U.S.								Non-U.S.
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Investments with registered investment companies:
Equity securities	$	337	$	—	$	—	$	337	$	1	$	—	$	—	$	1
Fixed income securities	158		—		—		158		23		—		—		23
Real estate and other	38		—		—		38		—		—		—		—
Equity securities	238		—		—		238		18		58		—		76
Debt securities:
Corporate and other	—		21		—		21		6		—		—		6
Government	12		21		—		33		5		166		—		171
Real Estate and other	—		—		—		—		3		10		—		13
Insurance contracts	—		—		—		—		—		—		80		80
Hedge funds	—		—		21		21		—		—		—		—
Cash and equivalents	34		—		—		34		14		—		—		14
Total	$	817	$	42	$	21	$	880	$	70	$	234	$	80	$	384
Plan assets measured at net asset value
Equity securities							$	128							$	92
Government debt securities							—								33
Corporate and other debt securities							54								14
Total plan assets measured at net asset value							182								139
Net plan assets							$	1,062							$	523



	Fair Value Level as of December 31, 2018
	U.S.								Non-U.S.
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Investments with registered investment companies:
Equity securities	$	323	$	—	$	—	$	323	$	1	$	—	$	—	$	1
Fixed income securities	167		—		—		167		21		—		—		21
Real estate and other	41		—		—		41		—		—		—		—
Equity securities	194		—		—		194		14		55		—		69
Debt securities:
Corporate and other	—		18		—		18		8		—		—		8
Government	12		21		—		33		2		147		—		149
Real Estate and other	—		—		—		—		1		4		—		5
Insurance contracts	—		—		—		—		—		—		71		71
Hedge funds	—		—		28		28		—		—		—		—
Cash and equivalents	33		—		—		33		17		—		—		17
Total	$	770	$	39	$	28	$	837	$	64	$	206	$	71	$	341
Plan assets measured at net asset value
Equity securities							$	104							$	81
Government debt securities							—								30
Corporate and other debt securities							54								14
Total plan assets measured at net asset value							158								125
Net plan assets							$	995							$	466

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, 2019						December 31, 2018
	Level 3 Assets						Level 3 Assets
	U.S.			Non-U.S.			U.S.			Non-U.S.
Balance at beginning of period	$	28		$	71		$	—		$	9
Net realized/unrealized gains (loss)	2			7			(2		)	1
Purchases and settlements, net	8			24			—			—
Sales, net	(17		)	(20		)	—			—
Transfers into (out) of Level 3	—			—			—			15
Acquisitions	—			—			30			56
Held for sale	—			—			—			(10		)
Foreign exchange	—			(2		)	—			—
Balance at end of period	$	21		$	80		$	28		$	71

Significant Concentrations of Risk

The following table contains information about significant concentrations of risk, including all individual assets that make up more than 5% of the total assets and any direct investments in Tenneco stock:



Asset Category	Fair Value Level	Fair Value		Percentage of Total Assets
2019:
Tenneco stock	1	$	5	0.3	%
2018:
Tenneco stock	1	$	10	0.7	%