Summary of Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables present the effect of these reclassifications and revisions for the financial statement line items adjusted in the affected periods included within this annual financial report:

	Year Ended December 31, 2017
	As Reported		Reclasses			As Reclassified			Revisions			As Revised
	(Millions, except per share amounts)
Consolidated statement of income
Revenues
Net sales and operating revenues	$	9,274	$	—		$	9,274		$	—		$	9,274
Costs and expenses
Cost of sales (exclusive of depreciation and amortization)	7,809		—			7,809			3			7,812
Selling, general, and administrative	636		—			636			2			638
Depreciation and amortization	224		—			224			2			226
Engineering, research, and development	158		—			158			—			158
Goodwill impairment charge	11		—			11			—			11
	8,838		—			8,838			7			8,845
Other expense (income)
Loss on sale of receivables	5		—			5			—			5
Non-service pension and postretirement benefit costs	—		16			16			—			16
Loss on extinguishment of debt	—		1			1			—			1
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	—		1			1			—			1
Other expense (income), net	14		(17		)	(3		)	1			(2		)
	19		1			20			1			21
Earnings before interest expense, income taxes, and noncontrolling interests	417		(1		)	416			(8		)	408
Interest expense	73		(1		)	72			—			72
Earnings before income taxes and noncontrolling interests	344		—			344			(8		)	336
Income tax expense (benefit)	70		—			70			1			71
Net income	274		—			274			(9		)	265
Less: Net income attributable to noncontrolling interests	67					67			—			67
Net income attributable to Tenneco Inc.	$	207	$	—		$	207		$	(9	)	$	198
Earnings per share
Weighted average shares of common stock outstanding —
Basic earnings per share of common stock	$	3.93	$	—		$	3.93		$	(0.18	)	$	3.75
Diluted earnings per share of common stock	$	3.91	$	—		$	3.91		$	(0.18	)	$	3.73

	Year Ended December 31, 2017
	As Reported		Reclasses		As Reclassified		Revisions			As Revised
Consolidated statement of comprehensive income	(Millions)
Net income	$	274	$	—	$	274	$	(9	)	$	265
Other comprehensive income (loss)—net of tax
Foreign currency translation adjustment	99		—		99		7			106
Defined benefit plans	27		—		27		(10		)	17
	126		—		126		(3		)	123
Comprehensive income (loss)	400		—		400		(12		)	388
Less: Comprehensive income (loss) attributable to noncontrolling interests	69		—		69		—			69
Comprehensive income (loss) attributable to common shareholders	$	331	$	—	$	331	$	(12	)	$	319

	Year Ended December 31, 2016
	As Reported		Reclasses			As Reclassified			Revisions			As Revised
	(Millions, except per share amounts)
Consolidated statement of income
Revenues
Net sales and operating revenues	$	8,599	$	—		$	8,599		$	(2	)	$	8,597
Costs and expenses
Cost of sales (exclusive of depreciation and amortization)	7,116		—			7,116			10			7,126
Selling, general, and administrative	513		—			513			1			514
Depreciation and amortization	212		—			212			1			213
Engineering, research, and development	154		—			154			(1		)	153
	7,995		—			7,995			11			8,006
Other expense (income)
Loss on sale of receivables	5		—			5			—			5
Non-service pension and postretirement benefit costs	—		84			84			—			84
Loss on extinguishment of debt	—		24			24			—			24
Other expense (income), net	83		(84		)	(1		)	—			(1		)
	88		24			112			—			112
Earnings before interest expense, income taxes, and noncontrolling interests	516		(24		)	492			(13		)	479
Interest expense	92		(24		)	68			—			68
Earnings before income taxes and noncontrolling interests	424		—			424			(13		)	411
Income tax expense (benefit)	—		—			—			(4		)	(4		)
Net income	424		—			424			(9		)	415
Less: Net income attributable to noncontrolling interests	68		—			68			—			68
Net income attributable to Tenneco Inc.	$	356	$	—		$	356		$	(9	)	$	347
Earnings per share
Weighted average shares of common stock outstanding —
Basic earnings per share of common stock	$	6.36	$	—		$	6.36		$	(0.16	)	$	6.20
Diluted earnings per share of common stock	$	6.31	$	—		$	6.31		$	(0.16	)	$	6.15

	Year Ended December 31, 2016
	As Reported			Reclasses		As Reclassified			Revisions			As Revised
Consolidated statement of comprehensive income	(Millions)
Net income	$	424		$	—	$	424		$	(9	)	$	415
Other comprehensive income (loss)—net of tax
Foreign currency translation adjustment	(45		)	—		(45		)	(11		)	(56		)
Defined benefit plans	41			—		41			10			51
	(4		)	—		(4		)	(1		)	(5		)
Comprehensive income (loss)	420			—		420			(10		)	410
Less: Comprehensive income (loss) attributable to noncontrolling interests	64			—		64			—			64
Comprehensive income (loss) attributable to common shareholders	$	356		$	—	$	356		$	(10	)	$	346

	December 31, 2017
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Consolidated balance sheet	(Millions)
Current assets:
Cash and cash equivalents	$	315		$	—		$	315		$	—		$	315
Restricted cash	3			—			3			—			3
Receivables:
Customer notes and accounts, net	1,294			—			1,294			—			1,294
Other	27			—			27			—			27
Inventories	869			—			869			(49		)	820
Prepayments and other current assets	291			—			291			(3		)	288
Total current assets	2,799			—			2,799			(52		)	2,747
Property, plant and equipment, net	1,615			79			1,694			(3		)	1,691
Long-term receivables, net	9			—			9			—			9
Goodwill	49			—			49			—			49
Intangibles, net	22			—			22			—			22
Investments in nonconsolidated affiliates	—			2			2			—			2
Deferred income taxes	204			—			204			9			213
Other assets	144			(81		)	63			—			63
Total assets	$	4,842		$	—		$	4,842		$	(46	)	$	4,796
Short-term debt, including current maturities of long-term debt	$	83		$	20		$	103		$	—		$	103
Accounts payable	1,705			(123		)	1,582			—			1,582
Accrued compensation and employee benefits				141			141			—			141
Accrued income taxes	45			(20		)	25			2			27
Accrued interest	14			(14		)	—			—			—
Accrued liabilities	287			(287		)	—			—			—
Other	132			(132		)	—			—
Accrued expenses and other current liabilities				415			415			9			424
Total current liabilities	2,266			—			2,266			11			2,277
Long-term debt	1,358			—			1,358			—			1,358
Deferred income taxes	11			—			11			—			11
Pension and postretirement benefits	268			—			268			—			268
Deferred credits and other liabilities	155			—			155			3			158
Commitments and contingencies
Total liabilities	4,058			—			4,058			14			4,072
Redeemable noncontrolling interests	42						42			—			42
Tenneco Inc. shareholders’ equity:
Preferred stock—$0.01 par value; none issued	—			—			—			—			—
Class A voting common stock—$0.01 par value; shares issued: (2018—71,675,379; 2017—66,033,509)	1			—			1			—			1
Additional paid-in capital	3,112			—			3,112			—			3,112
Accumulated other comprehensive loss	(541		)	—			(541		)	3			(538		)
Accumulated deficit	(946		)	—			(946		)	(63		)	(1,009		)
	1,626			—			1,626			(60		)	1,566
Shares held as treasury stock—at cost: 2018 and 2017—14,592,888 shares	(930		)	—			(930		)	—			(930		)
Total Tenneco Inc. shareholders’ equity	696			—			696			(60		)	636
Noncontrolling interests	46			—			46			—			46
Total equity	742			—			742			(60		)	682
Total liabilities, redeemable noncontrolling interests and equity	$	4,842		$	—		$	4,842		$	(46	)	$	4,796

	Year Ended December 31, 2017
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Consolidated statements of cash flow	(Millions)
Operating Activities
Net income	$	274		$	—		$	274		$	(9	)	$	265
Net cash provided by operating activities	517			—			517			—			517
Investing Activities
Net cash used by investing activities	(300		)	—			(300		)	—			(300		)
Financing Activities
Proceeds from term loans and notes	—			137			137			23			160
Repayments of term loans and notes	—			(19		)	(19		)	(17		)	(36		)
Retirement of long-term debt	(19		)	19			—			—			—
Issuance of long-term debt	137			(137		)	—			—			—
Borrowings on revolving lines of credit	—			—			—			6,664			6,664
Payments on revolving lines of credit	—			—			—			(6,737		)	(6,737		)
Net increase (decrease) in revolver borrowings	(67		)	—			(67		)	67			—
Net cash provided (used) by financing activities	$	(251	)	$	—		$	(251	)	$	—		$	(251	)

	Year Ended December 31, 2016
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Consolidated statements of cash flow	(Millions)
Operating Activities
Net income	$	424		$	—		$	424		$	(9	)	$	415
Net cash provided by operating activities	374			—			374			—			374
Investing Activities
Net cash used by investing activities	(229		)	—			(229		)	—			(229		)
Financing Activities
Proceeds from term loans and notes	—			509			509			20			529
Repayments of term loans and notes	—			(531		)	(531		)	(14		)	(545		)
Retirement of long-term debt	(531		)	531			—			—			—
Issuance of long-term debt	509			(509		)	—			—			—
Borrowings on revolving lines of credit	—			—			—			5,417			5,417
Payments on revolving lines of credit	—			—			—			(5,221		)	(5,221		)
Net increase (decrease) in revolver borrowings	202			—			202			(202		)	—
Net cash provided (used) by financing activities	$	(86	)	$	—		$	(86	)	$	—		$	(86	)

	Year Ended December 31, 2017
	As Reported			Revisions			As Revised
Consolidated statements of shareholders' equity	(Millions)
Accumulated Deficit
Balance January 1	$	(1,100	)	$	(54	)	$	(1,154	)
Net income attributable to Tenneco Inc.	207			(9		)	198
Cash dividends declared	(53		)	—			(53		)
Balance December 31	$	(946	)	$	(63	)	$	(1,009	)
Accumulated Other Comprehensive Loss
Balance January 1	$	(665	)	$	6		$	(659	)
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	97			7			104
Defined benefit plans	27			(10		)	17
Balance December 31	$	(541	)	$	3		$	(538	)
Total Tenneco Inc. Shareholders' Equity
Balance January 1	$	573		$	(48	)	$	525
Net income attributable to Tenneco Inc.	207			(9		)	198
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	97			7			104
Defined benefit plans	27			(10		)	17
Comprehensive income	331			(12		)	319
Stock-based compensation expense	14			—			14
Cash dividends	(53		)	—			(53		)
Treasury stock	(169		)	—			(169		)
Balance December 31	$	696		$	(60	)	$	636
Total Equity
Balance January 1	$	620		$	(48	)	$	572
Net income	238			(9		)	229
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	96			7			103
Defined benefit plans	27			(10		)	17
Comprehensive income	361			(12		)	349
Stock-based compensation expense	14			—			14
Cash dividends	(53		)	—			(53		)
Treasury stock	(169		)	—			(169		)
Distributions declared to noncontrolling interests	(31		)	—			(31		)
Balance December 31	$	742		$	(60	)	$	682

	Year Ended December 31, 2016
	As Reported			Revisions			As Revised
Consolidated statements of shareholders' equity	(Millions)
Accumulated Deficit
Balance January 1	$	(1,456	)	$	(45	)	$	(1,501	)
Net income attributable to Tenneco Inc.	356			(9		)	347
Balance December 31	$	(1,100	)	$	(54	)	$	(1,154	)
Accumulated Other Comprehensive Loss
Balance January 1	$	(665	)	$	7		$	(658	)
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	(41		)	(11		)	(52		)
Defined benefit plans	41			10			51
Balance December 31	$	(665	)	$	6		$	(659	)
Total Tenneco Inc. shareholders' equity
Balance January 1	$	425		$	(38	)	$	387
Net income attributable to Tenneco Inc.	356			(9		)	347
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	(41		)	(11		)	(52		)
Defined benefit plans	41			10			51
Comprehensive income	356			(10		)	346
Stock-based compensation expense	17			—			17
Treasury stock	(225		)	—			(225		)
Balance December 31	$	573		$	(48	)	$	525
Total Equity
Balance January 1	$	464		$	(38	)	$	426
Net income	388			(9		)	379
Other comprehensive loss—net of tax:
Foreign currency translation adjustment	(43		)	(11		)	(54		)
Defined benefit plans	41			10			51
Comprehensive income	386			(10		)	376
Stock-based compensation expense	17			—			17
Treasury stock	(225		)	—			(225		)
Distribution declared to noncontrolling interests	(22		)	—			(22		)
Balance December 31	$	620		$	(48	)	$	572

Redeemable Noncontrolling Interests

The following is a rollforward of the activity in the redeemable noncontrolling interests for the years ended December 31, 2018, 2017 and 2016:

	December 31
	2018			2017			2016
	(Millions)
Balance January 1	$	42		$	40		$	41
Federal-Mogul acquisition	96			—			—
Net income attributable to redeemable noncontrolling interests	29			36			36
Other comprehensive (loss) income	(2		)	3			(2		)
Contributions received	6			—			—
Dividends declared	(33		)	(37		)	(35		)
Balance December 31	$	138		$	42		$	40

Schedule of Changes in Accounting Principles

The following tables summarize the effects of adopting the new standard on our consolidated financial statements:

	Year Ended December 31, 2017
	Prior to Change in Accounting Principle			Effective of Accounting Change			After Change in Accounting Principle
	(Millions)
Consolidated Statements of Income
Cost of Sales	$	7,815		$	(3	)	$	7,812
Selling, general, and administrative	$	650		$	(12	)	$	638
Non-service pension and postretirement benefit costs	$	—		$	16		$	16
Other (income) expense	$	(1	)	$	(1	)	$	(2	)

	Year Ended December 31, 2016
	Prior to Change in Accounting Principle		Effective of Accounting Change			After Change in Accounting Principle
	(Millions)
Consolidated Statements of Income
Cost of Sales	$	7,133	$	(7	)	$	7,126
Selling, general, and administrative	$	590	$	(76	)	$	514
Non-service cost pension and other postretirement benefits	$	—	$	84		$	84
Other expense	$	—	$	(1	)	$	(1	)

The following tables summarize the effects of adopting ASU 2016-18 and ASU 2016-15 on our consolidated statements of cash flows for the years ended December 31, 2017 and 2016:.

	Year Ended December 31, 2017
	Prior to Change in Accounting Principle			Effect of ASU 2016-18		Effect of ASU 2016-15			After Change in Accounting Principle
	(Millions)
Consolidated Statements of Cash Flows
Decrease (increase) in receivables	$	31		$	—	$	(112	)	$	(81	)
Net cash provided by operating activities	629			—		(112		)	517
Change in restricted cash	(1		)	1		—			—
Proceeds from deferred purchase price of factored receivables	—			—		112			112
Net cash used by investing activities	(413		)	1		112			(300		)
Decrease in cash, cash equivalents and restricted cash	(32		)	1		—			(31		)
Cash, cash equivalents and restricted cash, January 1	347			2		—			349
Cash, cash equivalents and restricted cash, December 31	$	315		$	3	$	—		$	318

	Year Ended December 31, 2016
	Prior to Change in Accounting Principle			Effect of ASU 2016-18		Effect of ASU 2016-15			After Change in Accounting Principle
	(Millions)
Consolidated Statements of Cash Flows
Increase in receivables	$	(215	)	$	—	$	(110	)	$	(325	)
Net cash provided by operating activities	484			—		(110		)	374
Change in restricted cash	(1		)	1		—			—
Proceeds from deferred purchase price of factored receivables	—			—		110			110
Net cash used by investing activities	(340		)	1		110			(229		)
Increase in cash, cash equivalents and restricted cash	60			1		—			61
Cash, cash equivalents and restricted cash, January 1	287			1		—			288
Cash, cash equivalents and restricted cash, December 31	$	347		$	2	$	—		$	349

The cumulative effect of the adoption was recognized as a decrease to accumulated deficit of $1 million and the changes made to the consolidated January 1, 2018 opening consolidated balance sheets for the adoption of ASC Topic 606 were as follows:

	Balance at December 31, 2017			Over-time recognition			Balance at January 1, 2018
Consolidated Balance Sheets	(Millions)
Assets
Inventory	$	820		$	(5	)	$	815
Prepayments and other current assets	$	288		$	6		$	294
Equity
Accumulated deficit	$	(1,009	)	$	1		$	(1,008	)

The following tables summarize the effects of adopting ASC Topic 606 on the Company’s consolidated financial statements as of and for the year ended December 31, 2018:

	December 31, 2018
	As Reported			Product returns			Over-time recognition			Balances Without Adoption of ASC Topic 606
	(Millions)
Consolidated Balance Sheets
Assets
Inventory	$	2,245		$	—		$	8		$	2,253
Prepayments and other current assets	$	590		$	(44	)	$	(9	)	$	537
Liabilities
Accrued expenses and other current liabilities	$	1,001		$	(44	)	$	—		$	957
Equity
Accumulated deficit	$	(1,013	)	$	—		$	(1	)	$	(1,014	)

	Year Ended December 31, 2018
	As Reported		Product returns			Over-time recognition			Balances Without Adoption of ASC Topic 606
	(Millions)
Consolidated Statements of Income
Revenues
Net sales and operating revenues	$	11,763	$	2		$	3		$	11,768
Cost and expenses
Cost of sales (exclusive of depreciation and amortization)	$	10,071	$	(2	)	$	(3	)	$	10,066