Long-Term Debt, Short-Term Debt, and Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Summary of Long-term Debt Obligations

A summary of our long-term debt obligations at December 31, 2016 and 2015, is set forth in the following table:

	2016		2015
	(Millions)
Tenneco Inc. —
Revolver borrowings due 2019, average effective interest rate 2.3% in 2016 and 2.0% in 2015	$	300	$	105
Senior Tranche A Term Loan due 2017 through 2020, average effective interest rate 2.2% in 2016 and 1.9% in 2015	270		285
5 3/8% Senior Notes due 2024	225		225
5% Senior Notes due 2026	500		—
6 7/8% Senior Notes due 2020	—		500
Other subsidiaries —
Other Long Term Debt due in 2019, average interest rate 1.7% in 2016 and 6.55% in 2016	7		15
Notes due 2017 through 2027, average effective interest rate 0.2% in 2016 and 0.1% in 2015	8		7
	1,310		1,137
Less — maturities classified as current	3		1
Total long-term debt	$	1,307	$	1,136

Summary of Short-term Debt Obligations

Information regarding our short-term debt as of and for the years ended December 31, 2016 and 2015 is as follows:

	2016		2015
	(Millions)
Maturities classified as current	$	3	$	1
Short-term borrowings	87		85
Total short-term debt	$	90	$	86

	Notes Payable(a)
	2016			2015
	(Dollars in Millions)
Outstanding borrowings at end of year	$	87		$	85
Weighted average interest rate on outstanding borrowings at end of year(b)	2.8		%	3.2		%
Maximum month-end outstanding borrowings during year	$	193		$	178
Average month-end outstanding borrowings during year	$	177		$	118
Weighted average interest rate on average month-end outstanding borrowings during year(b)	2.4		%	3.0		%

(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, 2016
	Term	Commitments		Borrowings		Letters of Credit(b)		Available
	(Millions)
Tenneco Inc. revolving credit agreement	2019	$	1,200	$	300	$	—	$	900
Tenneco Inc. tranche A term facility	2019	270		270		—		—
Subsidiaries’ credit agreements	2017-2027	128		89		—		39
		$	1,598	$	659	$	—	$	939

(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 2016, are as follows (the ratios in the table reflect the revisions made to the financial statements in this Form 10-K/A; these revisions would result in immaterial changes to the actual ratios reported to our lenders in prior periods, with such changes being less than .03 and .23 to each leverage ratio and interest coverage ratio, respectively):

	Quarter Ended
	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
	Req.	Act.	Req.	Act.	Req.	Act.	Req.	Act.
Leverage Ratio (maximum)	3.50	1.47	3.50	1.53	3.50	1.47	3.50	1.55
Interest Coverage Ratio (minimum)	2.75	14.70	2.75	14.14	2.75	13.74	2.75	13.75

Proforma Consolidated Leverage Ratio

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 December 8, 2014; 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 3.0x	$	20
Greater than or equal to 2.5x	$	100
Greater than or equal to 2.0x	$	200
Less than 2.0x	no limit