10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________ 

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2019

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-12387

TENNECO INC.

(Exact name of registrant as specified in its charter)

Delaware	76-0515284
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
500 North Field Drive, Lake Forest, Illinois	60045
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (847) 482-5000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes  þ      No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  þ      No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer   þ	Accelerated filer ¨
Non-accelerated filer   ¨	Smaller reporting company   ¨
	Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ¨      No  þ

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Voting Common Stock, par value $0.01 per share	TEN	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

The number of shares of Class A Voting Common Stock, par value $0.01 per share: 57,124,067 shares outstanding as of May 7, 2019. The number of shares of Class B Non-Voting Common Stock, par value $0.01 per share: 23,793,669 shares outstanding as of May 7, 2019.

TABLE OF CONTENTS

		Page
Part I — Financial Information
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	6
	Condensed Consolidated Statements of Income (Loss)	6
	Condensed Consolidated Statements of Comprehensive Income (Loss)	7
	Condensed Consolidated Balance Sheets	8
	Condensed Consolidated Statements of Cash Flows	9
	Condensed Consolidated Statements of Changes in Shareholders’ Equity	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	52
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	67
Item 4.	Controls and Procedures	68
Part II — Other Information
Item 1.	Legal Proceedings	69
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	71

* No response to this item is included herein for the reason that it is inapplicable or the answer to such item is negative.

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CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, our prospects and business strategies. These forward-looking statements are included in various sections of this report. The words “may,” “will,” “believe,” “should,” “could,” “plan,” “expect,” “anticipate,” “estimate,” and similar expressions (and variations thereof), identify these forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, these expectations may not prove to be correct. Because these forward-looking statements are also subject to risks and uncertainties, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include:

• general economic, business and market conditions;

• our ability to source and procure needed materials, components and other products and services in accordance with customer demand and at competitive prices;

• the cost and outcome of existing and any future claims, legal proceedings or investigations, including, but not limited to, any of the foregoing arising in connection with the ongoing global antitrust investigation, product performance, product safety or intellectual property rights;

• changes in consumer demand, prices and our ability to have our products included on top selling vehicles, including any shifts in consumer preferences away from historically higher margin products for our customers and us, to other lower margin vehicles, for which we may or may not have supply arrangements, and the cyclical nature of the global vehicle industry, including the performance of the global aftermarket sector;

• changes in consumer demand for our OE or aftermarket products, or changes in automotive and commercial vehicle manufacturers’ production rates and their actual and forecasted requirements for our products, due to difficult economic conditions and/or regulatory or legal changes affecting internal combustion engines and/or aftermarket products;

• our dependence on certain large customers, including the loss of any of our large original equipment manufacturer (“OE”) customers (on whom we depend for a substantial portion of our revenues), or the loss of market shares by these customers if we are unable to achieve increased sales to other OE customers or any change in customer demand due to delays in the adoption or enforcement of worldwide emissions regulations;

• new technologies that reduce the demand for certain of our products or otherwise render them obsolete;

• our ability to introduce new products and technologies that satisfy customers' needs in a timely fashion;

• the overall highly competitive nature of the automotive and commercial vehicle parts industries, and any resultant inability to realize the sales represented by our awarded book of business (which is based on anticipated pricing and volumes over the life of the applicable program);

• changes in capital availability or costs, including increases in our cost of borrowing (i.e., interest rate increases), the amount of our debt, our ability to access capital markets at favorable rates, and the credit ratings of our debt;

• our ability to comply with the covenants contained in our debt instruments;

• our working capital requirements;

• our ability to successfully execute cash management and other cost reduction plans, and to realize the anticipated benefits from these plans;

• risks inherent in operating a multi-national company, including economic conditions, such as currency exchange and inflation rates, and political conditions in the countries where we operate or sell our products, adverse changes in trade agreements, tariffs, immigration policies, political stability, and tax and other laws, and potential disruptions of production and supply;

• increasing competition from lower cost, private-label products;

• damage to the reputation of one or more of our leading brands;

• the effect of improvements in automotive parts on aftermarket demand for some of our products;

• industrywide strikes, labor disruptions at our facilities or any labor or other economic disruptions at any of our significant customers or suppliers or any of our customers’ other suppliers;

• developments relating to our intellectual property, including our ability to changes in technology;

• costs related to product warranties and other customer satisfaction actions;

• the failure or breach of our information technology systems, including the consequences of any misappropriation, exposure or corruption of sensitive information stored on such systems and the interruption to our business that such failure or breach may cause;

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• the effect of consolidation among vehicle parts suppliers and customers on our ability to compete in the highly competitive automotive and commercial vehicle supplier industry;

• changes in distribution channels or competitive conditions in the markets and countries where we operate;

• the evolution towards autonomous vehicles and car and ride sharing;

• customer acceptance of new products;

• our ability to successfully integrate, and benefit from, any acquisitions that we complete;

• our ability to effectively manage our joint ventures and other third-party relationships;

• the potential impairment in the carrying value of our long-lived assets, goodwill, other intangible assets or our deferred tax assets;

• the negative effect of fuel price volatility on transportation and logistics costs, raw material costs, discretionary purchases of vehicles or aftermarket products and demand for off-highway equipment;

• increases in the costs of raw materials or components, including our ability to successfully reduce the effect of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery and other methods;

• changes by the Financial Accounting Standards Board or the Securities and Exchange Commission of authoritative generally accepted accounting principles or policies;

• changes in accounting estimates and assumptions, including changes based on additional information;

• any changes by the International Organization for Standardization (ISO) or other such committees in their certification protocols for processes and products, which may have the effect of delaying or hindering our ability to bring new products to market;

• the effect of the extensive, increasing and changing laws and regulations to which we are subject, including environmental laws and regulations, which may result in our incurrence of environmental liabilities in excess of the amount reserved or increased costs or loss of revenues relating to products subject to changing regulation;

• potential volatility in our effective tax rate;

• disasters, such as fires, earthquakes and flooding, and any resultant disruptions in the supply or production of goods or services to us or by us, in demand by our customers or in the operation of our system, disaster recovery capabilities or business continuity capabilities;

• acts of war and/or terrorism, as well as actions taken or to be taken by the United States and other governments as a result of further acts or threats of terrorism, and the effect of these acts on economic, financial and social conditions in the countries where we operate; 

• pension obligations and other postretirement benefits;

• our hedging activities to address commodity price fluctuations; and

• the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control.

In addition, important factors related to the acquisition of Federal-Mogul LLC ("Federal-Mogul") and the planned separation of our company into a powertrain technology company and an aftermarket and ride performance company that could cause actual results to differ materially from the expectations reflected in the forward-looking statements, including:

• the risk that the benefits of the acquisition of Federal-Mogul, including synergies, may not be fully realized or may take longer to realize than expected;

• the risk that the acquisition of Federal-Mogul may not advance our business strategy;

• the risk that we may experience difficulty integrating or separating employees or operations;

• the risk that the transaction may have an adverse effect on existing arrangements with us, including those related to transition, manufacturing and supply services and tax matters, our ability to retain and hire key personnel or our ability to maintain relationships with customers, suppliers or other business partners;

• the risk that the company may not complete a separation of its powertrain technology business and its aftermarket and ride performance business (or achieve some or all of the anticipated benefits of such a separation);

• the risk that the combined company and each separate company following the spin-off will underperform relative to our expectations;

• the ongoing transaction costs and risk that we may incur greater costs following the spin-off; and

• the risk that the spin-off is determined to be a taxable transaction.

The risks included here are not exhaustive. Refer to “Part I, Item 1A — Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2018 for further discussion regarding our exposure to risks. Additionally, new risk factors emerge

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from time to time and it is not possible for us to predict all such risk factors, nor to assess the effect such risk factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Unless otherwise indicated in this report, the forward-looking statements in this report are made as of the date of this report, and, except as required by law, the Company does not undertake any obligation, and disclaims any obligation, to publicly disclose revisions or updates to any forward-looking statements.

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PART I

FINANCIAL INFORMATION

ITEM 1.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

TENNECO INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)

(in millions, except share and per share amounts)

	Three Months Ended March 31,
	2019			2018
Revenues
Net sales and operating revenues	$	4,484		$	2,581
Costs and expenses
Cost of sales	3,864			2,193
Selling, general, and administrative	316			151
Depreciation and amortization	169			60
Engineering, research, and development	92			40
Restructuring charges and asset impairments	24			12
Goodwill impairment charge	60			—
	4,525			2,456
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	2			3
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(16		)	—
Other expense (income), net	(3		)	—
	(17		)	3
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122
Interest expense	81			23
Earnings (loss) before income taxes and noncontrolling interests	(105		)	99
Income tax expense (benefit)	—			25
Net income (loss)	(105		)	74
Less: Net income (loss) attributable to noncontrolling interests	12			14
Net income (loss) attributable to Tenneco Inc.	$	(117	)	$	60
Earnings (loss) per share
Basic earnings (loss) per share:
Earnings (loss) per share	$	(1.44	)	$	1.17
Weighted average shares outstanding	80,874,637			51,211,643
Diluted earnings (loss) per share:
Earnings (loss) per share	$	(1.44	)	$	1.17
Weighted average shares outstanding	80,874,637			51,501,643

See accompanying notes to the condensed consolidated financial statements.

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TENNECO INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in millions)

	Three Months Ended March 31,
	2019			2018
Net income (loss)	$	(105	)	$	74
Other comprehensive income (loss) — net of tax
Foreign currency translation adjustment	35			27
Cash flow hedges	4			—
Defined benefit plans	1			3
	40			30
Comprehensive income (loss)	(65		)	104
Less: Comprehensive income (loss) attributable to noncontrolling interests	18			22
Comprehensive income (loss) attributable to common shareholders	$	(83	)	$	82

See accompanying notes to the condensed consolidated financial statements.

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TENNECO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except shares)

	March 31, 2019			December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	357		$	697
Restricted cash	6			5
Receivables:
Customer notes and accounts, net	2,738			2,487
Other	105			85
Inventories	2,266			2,245
Prepayments and other current assets	555			590
Total current assets	6,027			6,109
Property, plant and equipment, net	3,519			3,501
Long-term receivables, net	9			10
Goodwill	791			869
Intangibles, net	1,687			1,519
Investments in nonconsolidated affiliates	528			544
Deferred income taxes	471			467
Other assets	584			213
Total assets	$	13,616		$	13,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	159		$	153
Accounts payable	2,861			2,759
Accrued compensation and employee benefits	363			343
Accrued income taxes	30			64
Accrued expenses and other current liabilities	994			1,001
Total current liabilities	4,407			4,320
Long-term debt	5,417			5,340
Deferred income taxes	110			88
Pension and postretirement benefits	1,138			1,167
Deferred credits and other liabilities	564			263
Commitments and contingencies (Note 13)
Total liabilities	11,636			11,178
Redeemable noncontrolling interests	153			138
Tenneco Inc. shareholders’ equity:
Preferred stock — $0.01 par value; none issued	—			—
Class A voting stock — $0.01 par value; shares issued: March 31, 2019 — 71,750,146 and December 31, 2018 — 71,675,379	1			1
Class B non-voting convertible stock — $0.01 par value; shares issued: March 31, 2019 — 23,793,669 and December 31, 2018 — 23,793,669	—			—
Additional paid-in capital	4,365			4,360
Accumulated other comprehensive loss	(658		)	(692		)
Accumulated deficit	(1,150		)	(1,013		)
	2,558			2,656
Shares held as treasury stock — at cost: March 31, 2019 and December 31, 2018 — 14,592,888 shares	(930		)	(930		)
Total Tenneco Inc. shareholders’ equity	1,628			1,726
Noncontrolling interests	199			190
Total equity	1,827			1,916
Total liabilities, redeemable noncontrolling interests and equity	$	13,616		$	13,232

See accompanying notes to the condensed consolidated financial statements.

8

TENNECO INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

	Three Months Ended March 31,
	2019			2018
Operating Activities
Net income (loss)	$	(105	)	$	74
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Goodwill impairment charge	60			—
Depreciation and amortization	169			60
Deferred income taxes	(8		)	(1		)
Stock-based compensation	7			5
Restructuring charges and asset impairments, net of cash paid	(14		)	(4		)
Change in pension and other postretirement benefit plans	(17		)	—
Equity in earnings of nonconsolidated affiliates	(16		)	—
Cash dividends received from nonconsolidated affiliates	15			—
Changes in operating assets and liabilities:
Receivables	(312		)	(221		)
Inventories	11			(32		)
Payables and accrued expenses	157			185
Accrued interest and income taxes	(38		)	(4		)
Other assets and liabilities	(59		)	(62		)
Net cash provided (used) by operating activities	(150		)	—
Investing Activities
Proceeds from sale of assets	1			2
Net proceeds from sale of business	22			—
Cash payments for property, plant, and equipment	(210		)	(89		)
Acquisition of business, net of cash acquired	(158		)	—
Proceeds from deferred purchase price of factored receivables	60			34
Other	2			—
Net cash used by investing activities	(283		)	(53		)
Financing Activities
Proceeds from term loans and notes	28			6
Repayments of term loans and notes	(64		)	(13		)
Borrowings on revolving lines of credit	2,119			1,267
Payments on revolving lines of credit	(1,981		)	(1,189		)
Issuance (repurchase) of common shares	(2		)	(2		)
Cash dividends	(20		)	(13		)
Net increase (decrease) in bank overdrafts	(1		)	(4		)
Other	(3		)	(30		)
Distributions to noncontrolling interest partners	(1		)	—
Net cash provided (used) by financing activities	75			22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	19			3
Decrease in cash, cash equivalents and restricted cash	(339		)	(28		)
Cash, cash equivalents and restricted cash, beginning of period	702			318
Cash, cash equivalents and restricted cash, end of period	$	363		$	290
Supplemental Cash Flow Information
Cash paid during the period for interest	$	74		$	23
Cash paid during the period for income taxes, net of refunds	$	43		$	25
Non-cash Investing Activities
Period end balance of accounts payable for property, plant, and equipment	$	101		$	55
Deferred purchase price of receivables factored in the period	$	58		$	37

See accompanying notes to the condensed consolidated financial statements.

9

TENNECO INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in millions)

	Tenneco Inc. Shareholders' equity
	$0.01 Par Value Common Stock		Treasury Stock			Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Tenneco Inc. Shareholders' Equity			Noncontrolling Interests			Total Equity
Balance as of December 31, 2018	$	1	$	(930	)	$	4,360	$	(1,013	)	$	(692	)	$	1,726		$	190		$	1,916
Net income (loss)	—		—			—		(117		)	—			(117		)	7			(110		)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments											29			29			4			33
Derivatives											4			4			—			4
Defined benefit plans											1			1			—			1
Comprehensive income (loss)														(83		)	11			(72		)
Common stock issued	—		—			5		—			—			5			—			5
Cash dividends ($0.25 per share)	—		—			—		(20		)	—			(20		)	—			(20		)
Purchase accounting measurement period adjustment	—		—			—		—			—			—			(1		)	(1		)
Distributions declared to noncontrolling interests	—		—			—		—			—			—			(1		)	(1		)
Balance as of March 31, 2019	$	1	$	(930	)	$	4,365	$	(1,150	)	$	(658	)	$	1,628		$	199		$	1,827

	Tenneco Inc. Shareholders' equity
	$0.01 Par Value Common Stock		Treasury Stock			Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Tenneco Inc. Shareholders' Equity			Noncontrolling Interests		Total Equity
Balance as of December 31, 2017	$	1	$	(930	)	$	3,112	$	(1,009	)	$	(538	)	$	636		$	46	$	682
Net Income (loss)	—		—			—		60			—			60			7		67
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments											19			19			7		26
Defined benefit plans											3			3			—		3
Comprehensive income (loss)														82			14		96
Adjustments to adopt new accounting standards	—		—			—		(1		)	—			(1		)	—		(1		)
Common stock issued	—		—			3		—			—			3			—		3
Cash dividends ($0.25 per share)	—		—			—		(13		)	—			(13		)	—		(13		)
Balance as of March 31, 2018	$	1	$	(930	)	$	3,115	$	(963	)	$	(516	)	$	707		$	60	$	767

See accompanying notes to the condensed consolidated financial statements.

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(in millions, except share and per share amounts, or as otherwise noted)

1. Description of Business

Tenneco Inc. ("Tenneco" or "the Company") was formed under the laws of Delaware in 1996. Tenneco designs, manufactures, and sells products and services for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers. The Company is one of the world's leading manufacturers of clean air, powertrain, and ride performance products and systems, and serves both original equipment manufacturers ("OEM") and replacement markets worldwide.

On January 10, 2019, the Company completed the acquisition of a 90.5% ownership interest in Öhlins Intressenter AB (“Öhlins”, the "Öhlins Acquisition"), a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries. On October 1, 2018, the Company completed the acquisition of a 100% ownership interest in Federal-Mogul LLC ("Federal-Mogul Acquisition," and together with the Öhlins Acquisition, the "Acquisitions"), a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reductions, and safety systems.

2. Summary of Significant Accounting Policies

Basis of Presentation — Interim Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments (consisting of normal recurring adjustments) management believes are necessary to fairly state the results of operations, comprehensive income, financial position, changes in shareholders' equity, and cash flows. The Company's management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 18, 2019. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

The Company expects to separate its businesses to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). The Company has revised its timing target for the separation of the business and now expects the DRiV spinoff to occur mid-2020. In preparation for the spinoff, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. See Note 17, Segment Information.

Redeemable Noncontrolling Interests — The Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. The redemption of these redeemable noncontrolling interests is not solely within the Company's control. Accordingly, these noncontrolling interests are presented in the temporary equity section of the Company's condensed consolidated balance sheets. The Company does not believe it is probable the redemption features related to these noncontrolling interest securities will be triggered, as a change in control event is generally not probable until it occurs, except as discussed in Note 3, Acquisitions and Divestitures for the redeemable noncontrolling interests from the Acquisitions.

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The following is a rollforward of activities in the Company's redeemable noncontrolling interests for the three months ended March 31, 2019 and 2018:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	138		$	42
Net income (loss) attributable to redeemable noncontrolling interests	5			7
Other comprehensive income (loss)	2			1
Acquisition and other	16			—
Purchase accounting measurement period adjustment	(8		)	—
Balance at end of period	$	153		$	50

The Company recorded a decrease to the redeemable noncontrolling interests of $8 million from the Federal-Mogul Acquisition, as a result of adjustments made in the measurement period to the preliminary purchase price allocation. The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

Earnings (loss) per share:

Basic earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average shares outstanding during the period. Diluted earnings (loss) per share reflects the weighted average effect of all potentially dilutive securities from the date of issuance. Actual weighted average shares outstanding used in calculating earnings (loss) per share were:

	Three months ended March 31,
	2019	2018
Weighted average shares of common stock outstanding	80,874,637	51,211,643
Effect of dilutive securities:
Restricted stock, PSUs and RSUs	—	216,351
Stock options	—	73,649
Dilutive shares outstanding	80,874,637	51,501,643

For the three months ended March 31, 2019 and 2018, the calculation of diluted earnings (loss) per share excluded 1,714,950 and 174 of share-based awards. The effect of including these securities in the calculation of diluted earnings (loss) per share would have been anti-dilutive.

Revision of Previously Issued Financial Statements

The Company identified an error in the accounting for certain costs capitalized into inventory that did not constitute inventoriable costs in its historical financial statements. The Company also revised for other immaterial errors related to various line items. As a result, certain amounts in the condensed consolidated financial statements have been revised for the three months ended March 31, 2018. These revisions were not material to the previously issued financial statements and are presented in the tables below.

Reclassifications: Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. These reclassifications have no effect on previously reported earnings before income taxes and noncontrolling interests or net income, other comprehensive income (loss), current or total assets, current or total liabilities, and the cash provided (used) by operating, investing or financing activities within the condensed consolidated financial statements.

12

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

	Three Months Ended March 31, 2018
	As Reported		Reclasses			As Reclassified		Revisions		As Revised
Condensed consolidated statement of income (loss)
Revenues
Net sales and operating revenues	$	2,574	$	—		$	2,574	$	7	$	2,581
Costs and expenses
Cost of sales	2,198		(9		)	2,189		4		2,193
Selling, general, and administrative	153		(2		)	151		—		151
Depreciation and amortization	59		—			59		1		60
Engineering, research, and development	41		(1		)	40		—		40
Restructuring charges and asset impairments	—		12			12		—		12
	2,451		—			2,451		5		2,456
Other expense (income)
Loss on sale of receivables	3		(3		)	—		—		—
Non-service pension and other postretirement benefit costs (credits)	—		3			3		—		3
Other expense (income), net	3		(3		)	—		—		—
	6		(3		)	3		—		3
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	117		3			120		2		122
Interest expense	20		3			23		—		23
Earnings (loss) before income taxes and noncontrolling interests	97		—			97		2		99
Income tax expense (benefit)	25					25		—		25
Net income (loss)	72		—			72		2		74
Less: Net income (loss) attributable to noncontrolling interests	14					14		—		14
Net income (loss) attributable to Tenneco Inc.	$	58	$	—		$	58	$	2	$	60
Earnings (loss) per share
Basic earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17
Diluted earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17

	Three Months Ended March 31, 2018
	As Reported		Reclasses		As Reclassified		Revisions		As Revised
Condensed consolidated statement of comprehensive income (loss)
Net income (loss)	$	72	$	—	$	72	$	2	$	74
Other comprehensive income (loss)—net of tax
Foreign currency translation adjustment	27		—		27		—		27
Defined benefit plans	3		—		3		—		3
	30		—		30		—		30
Comprehensive income (loss)	102		—		102		2		104
Less: Comprehensive income (loss) attributable to noncontrolling interests	22		—		22		—		22
Comprehensive income (loss) attributable to common shareholders	$	80	$	—	$	80	$	2	$	82

13

	Three Months Ended March 31, 2018
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Condensed consolidated statements of cash flow
Operating Activities
Net income (loss)	$	72		$	—		$	72		$	2		$	74
Net cash provided by (used by) operating activities	—			—			—			—			—
Investing Activities
Net cash used by investing activities	(53		)	—			(53		)	—			(53		)
Financing Activities
Proceeds from term loans and notes	—			—			—			6			6
Repayments of term loans and notes	—			(6		)	(6		)	(7		)	(13		)
Retirement of long-term debt	(6		)	6			—			—			—
Borrowings on revolving lines of credit	—			—			—			1,267			1,267
Payments on revolving lines of credit	—			—			—			(1,189		)	(1,189		)
Net increase (decrease) in revolver borrowings	77			—			77			(77		)	—
Issuance (repurchase) of common shares	(2		)	—			(2		)	—			(2		)
Cash dividends	(13		)	—			(13		)	—			(13		)
Net increase (decrease) in bank overdrafts	(4		)	—			(4		)	—			(4		)
Net increase (decrease) in short-term borrowings secured by accounts receivable	(30		)	30			—			—			—
Other	—			(30		)	(30		)	—			(30		)
Net cash provided by (used by) financing activities	22			—			22			—			22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	3			—			3			—			3
Increase (decrease) in cash, cash equivalents and restricted cash	(28		)	—			(28		)	—			(28		)
Cash, cash equivalents and restricted cash, beginning of period	318			—			318			—			318
Cash, cash equivalents and restricted cash, end of period	$	290		$	—		$	290		$	—		$	290

14

	Three Months Ended March 31, 2018
	As Reported			Revisions			As Revised
Condensed consolidated statements of changes in shareholders' equity
Accumulated Deficit
Balance January 1	$	(946	)	$	(63	)	$	(1,009	)
Net income (loss) attributable to Tenneco Inc.	58			2			60
Cash dividends declared	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	(902	)	$	(61	)	$	(963	)
Accumulated Other Comprehensive Income (loss)
Balance January 1	$	(541	)	$	3		$	(538	)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Balance March 31	$	(519	)	$	3		$	(516	)
Total Tenneco Inc. Shareholders' Equity
Balance January 1	$	696		$	(60	)	$	636
Net income (loss) attributable to Tenneco Inc.	58			2			60
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Comprehensive income (loss)	80			2			82
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Cash dividends	(13		)	—			(13		)
Common Stock Issued	3			—			3
Balance March 31	$	765		$	(58	)	$	707
Total Equity
Balance January 1	$	742		$	(60	)	$	682
Net income (loss)	65			2			67
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	26			—			26
Defined benefit plans	3			—			3
Comprehensive income (loss)	94			2			96
Common Stock Issued	3			—			3
Cash dividends	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	825		$	(58	)	$	767

New Accounting Pronouncements

Adoption of New Accounting Standards

Comprehensive income— In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The Company has elected not to adopt the optional reclassification.

Leases — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update supersedes the lease requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flow arising from a lease. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company adopted this update on January 1, 2019 using the modified retrospective method without the recasting of comparative periods’ financial information, as permitted by the transition guidance.

15

The Company adopted the package of practical expedients that allows companies to not reassess and will carry forward historical conclusions related to contracts that contain leases, existing lease classification, and initial direct costs. It elected the land easements practical expedient allowing the Company not to reassess whether existing or expired land easements not accounted for as leases under previous guidance are or contain leases under the new guidance. It also did not adopt the hindsight practical expedient and has also made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. As a part of the implementation efforts, the Company reviewed its internal control structure and modified and augmented, as necessary.

Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities of $387 million and $383 million, and a reduction of favorable lease intangibles of $4 million as of January 1, 2019. The standard did not materially affect the Company's condensed consolidated financial position or results of operations and had no effect on cash flows. See Note 14, Leases.

Accounting Standards Issued But Not Yet Adopted

Intangibles— In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Retirement benefits — In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Fair value measurements — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

3. Acquisitions and Divestitures

The preliminary allocation of the purchase price of the assets acquired and liabilities assumed, including the residual amount recognized as goodwill, is based upon estimated information and is subject to change within the measurement period. The measurement period is a period not to exceed one year from the acquisition date during which the Company may adjust estimated or provisional amounts recorded during purchase accounting if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. Any adjustments to amounts recorded in purchase accounting that do not qualify as measurement period adjustments are included in earnings in the period identified.

The fair values of the assets acquired and liabilities assumed are based on preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes these preliminary estimates provide a reasonable basis for estimating the fair value of the assets acquired and liabilities assumed, it will continue to evaluate available information prior to finalization of the amounts.

16

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

Öhlins Intressenter AB Acquisition

The purchase price for the 90.5% ownership interest in Öhlins was $162 million. The remaining 9.5% ownership interest in Öhlins (the “KÖ Interest”) was retained by K Öhlin Holding AB (“Köhlin”). Köhlin has an irrevocable right at any time after the third anniversary of the Öhlins Acquisition to sell the KÖ Interest to the Company. As the redemption of this redeemable noncontrolling interest is not solely within the Company's control, the noncontrolling interest is presented in the temporary equity section of the Company's condensed consolidated balance sheets. The fair value of the KÖ Interest was $17 million and represents its current redemption value at March 31, 2019.

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date:

Cash, cash equivalents and restricted cash	$	4
Customer notes and accounts receivable	19
Inventories	31
Prepayments and other current assets	2
Property, plant, and equipment	8
Goodwill	28
Intangibles	135
Other assets	9
Total assets acquired	236
Short-term debt, including current maturities of long-term debt	10
Accounts payable	11
Accrued compensation and employee benefits	12
Deferred income taxes	18
Deferred credits and other liabilities	6
Total liabilities assumed	57
Redeemable noncontrolling interest	17
Net assets acquired	$	162

The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the inventory, intangible assets, right of use assets, and deferred income tax assets and liabilities.

Goodwill of $28 million was recognized as part of the acquisition and is reflected in the Ride Performance segment. The goodwill consists of the Company’s expected future economic benefits that will result from the acquisition of Öhlins’ technology, which will allow the Company to more rapidly grow its product offerings for current and future customers, as well as assist the Company in obtaining a larger share of business in developing mobility markets. None of the goodwill is deductible for tax purposes.

17

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

Other intangible assets acquired include the following:

	Estimated Fair Value		Weighted-Average Useful Lives
Definite-lived intangible assets:
Customer platforms and relationships	$	39	10 years
Technology rights	41		10 years
Total definite-lived intangible assets	80
Indefinite-lived intangible assets:
Trade names and trademarks	55
Total	$	135

The Company recorded a $5 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation and recognized $2 million as a non-cash charge to cost of goods sold during the three months ended March 31, 2019 related to the amortization of this step-up, as the acquired inventory was sold. The Company expects to recognize the remaining amortization of the inventory step-up during 2019.

Pro Forma Results

Pro forma results of operations have not been presented because the effects of the Öhlins Acquisition were not material to the Company’s condensed consolidated results of operations.

Acquisition of Federal-Mogul

During the three months ended March 31, 2019, the Company made measurement period adjustments based on further evaluation of available information to facts and circumstances that existed as of the acquisition date.

18

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the three months ended March 31, 2019:

	Initial Allocation		Adjustments			Revised Allocation
Cash, cash equivalents and restricted cash	$	277	$	—		$	277
Customer notes and accounts receivable	1,258		—			1,258
Other receivables	62		—			62
Inventories	1,551		—			1,551
Prepayments and other current assets	198		—			198
Property, plant and equipment	1,711		(28		)	1,683
Long-term receivables	48		—			48
Goodwill	825		(46		)	779
Intangibles	1,530		71			1,601
Investments in nonconsolidated affiliates	528		(15		)	513
Deferred income taxes	166		—			166
Other assets	55		—			55
Total assets acquired	8,209		(18		)	8,191
Short-term debt, including current maturities of long-term debt	130		—			130
Accounts payable	957		—			957
Accrued compensation and employee benefits	231		—			231
Accrued income taxes	49		—			49
Accrued expenses and other current liabilities	522		—			522
Long-term debt	1,315		—			1,315
Deferred income taxes	56		—			56
Pension and postretirement benefits	879		—			879
Deferred credits and other liabilities	124		(9		)	115
Total liabilities assumed	4,263		(9		)	4,254
Redeemable noncontrolling interests	96		(8		)	88
Noncontrolling interests	143		(1		)	142
Net assets and noncontrolling interests acquired	$	3,707	$	—		$	3,707

The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair value of property, plant and equipment; intangible assets; unconsolidated affiliates; deferred income tax assets and liabilities; redeemable noncontrolling interests; and noncontrolling interests.

Goodwill of $409 million was allocated to the Powertrain segment, $315 million was allocated to the Motorparts segment, and $55 million was allocated to the Ride Performance segment. The goodwill consists of the Company's expected future economic benefits that will arise from expected future product sales and synergies from combining Federal-Mogul with its existing portfolio of products. None of the goodwill is deductible for tax purposes.

19

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

Other intangible assets acquired include the following:

	Estimated Fair Value		Weighted-Average Useful Lives
Definite-lived intangible assets:
Customer platforms and relationships	$	978	10 years
Technology rights	68		10 years
Packaged kits know-how	54		10 years
Catalogs	40		10 years
Licensing agreements	64		4.5 years
Land use rights	30		42.8 years
Total definite-lived intangible assets	1,234		10.5 years
Indefinite-lived intangible assets:
Trade names and trademarks	367
Total	$	1,601

The Company recorded a $152 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation and recognized $41 million as a non-cash charge to cost of goods sold during the three months ended March 31, 2019 related to the amortization of this step-up, as the acquired inventory was sold. The Company recognized $105 million as a non-cash charge to cost of goods sold during the year ended December 31, 2018 and expects to recognize the remaining amortization of the inventory step-up during 2019.

In addition, the Company acquired $83 million in redeemable noncontrolling interests related to a subsidiary from the Federal-Mogul Acquisition. The Company initiated the process to make a tender offer for the shares it does not own due to the change in control in accordance with local regulations triggered by the acquisition. It is probable these shares will become redeemable during 2019 under the tender offer at a price that is representative of fair value and as a result, the noncontrolling interest is presented in the temporary equity section of the Company’s condensed consolidated balance sheets. The carrying amount for this redeemable noncontrolling interest represents its current redemption value at March 31, 2019.

The Company's condensed consolidated statements of income (loss) for the three months ended March 31, 2019 included net sales and operating revenues of $1,906 million and net loss of $39 million associated with the operating results of Federal-Mogul.

Pro Forma Results

The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the Federal-Mogul Acquisition, and the related financing, if the transaction had occurred as of January 1, 2017. The pro forma results are not necessarily indicative of either the actual consolidated results had the Federal-Mogul Acquisition occurred on January 1, 2017 or of future consolidated operating results.

	For the Three Months Ended March 31,
	2019			2018
Net sales and operating revenues	$	4,484		$	4,680
Earnings (loss) before income taxes and noncontrolling interests	$	30		$	226
Net income (loss) attributable to Tenneco Inc.	$	(70	)	$	93
Basic earnings (loss) per share of common stock	$	(0.87	)	$	1.16
Diluted earnings (loss) per share of common stock	$	(0.87	)	$	1.16

These pro forma amounts have been calculated after applying the Company's accounting policies and the results presented above primarily reflect: (i) depreciation adjustments relating to fair value adjustments to property, plant, and equipment; (ii) amortization adjustments relating to fair value estimates of intangible assets; (iii) incremental interest expense, net on assumed indebtedness, the new credit facility, debt issuance costs, and fair value adjustments to debt; and (iv) cost of goods sold

20

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

adjustments relating to fair value adjustments to inventory. Pro forma adjustments described above have been tax affected using the Company's effective rate during the respective periods.

Assets Held for Sale

On March 1, 2019, the Company sold its wipers business in the Motorparts segment for a sale price of $29 million, subject to adjustment based on terms of the sale agreement. Proceeds from the sale were $22 million, subject to customary working capital adjustments. Certain assets and liabilities of the business are still classified as held for sale within the condensed consolidated balance sheet as of March 31, 2019 and are expected to transfer in the second half of 2019.

The related assets and liabilities were classified as held for sale as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Assets
Inventories	$	3	$	33
Other current assets	—		5
Long-lived assets	1		23
Total assets held for sale	$	4	$	61
Liabilities
Accounts payable	$	2	$	21
Accrued liabilities	—		7
Other liabilities	1		11
Total liabilities held for sale	$	3	$	39

4. Restructuring Charges and Asset Impairments, Net

Restructuring and Other Charges

The Company's restructuring activities are undertaken as necessary to execute management's strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company's businesses and to relocate operations to best cost locations.

The Company's restructuring charges consist primarily of employee costs (principally severance and/or termination benefits), and facility closure and other costs.

For the three months ended March 31, 2019 and 2018, restructuring charges, net and asset impairments by segment are as follows:

	Three Months Ended March 31,
	2019		2018
Clean Air	$	5	$	1
Powertrain	1		—
Ride Performance	13		8
Motorparts	4		3
Corporate	1		—
	$	24	$	12

During the three months ended March 31, 2019, the Company incurred charges for the following items:

• The Company incurred $5 million in restructuring and related costs related to the accelerated move of the Beijing Ride Performance plant. The Company anticipates the move to be completed by the second quarter of 2019.

21

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

• In October 2018, the Company announced a plan to close its Ride Performance plants in Owen Sound, Ontario and Hartwell, Georgia as part of an initiative to realign its manufacturing footprint, to enhance operational efficiency, and respond to changing market conditions and capacity requirements. The Company expects to complete the closure of the two facilities in the second quarter of 2020. The Company recorded charges of $6 million during the first quarter of 2019.

• The Company incurred $6 million in restructuring and related costs related to a restructuring plan designed to achieve a portion of the synergies the Company anticipates achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company will reduce its headcount globally across all segments. The Company began implementing headcount reductions in January 2019 and these actions will continue throughout 2019. The Federal-Mogul Acquisition is discussed further in Note 3, Acquisitions and Divestitures.

• The Company incurred $3 million restructuring and related costs related to the closing of its Clean Air plant in Rennes, France. The Company anticipates the closure to be completed by the end of 2019.

• The Company incurred an additional $4 million in restructuring and related costs for cost improvement initiatives at various other operations around the world.

During the three months ended March 31, 2018, the Company incurred charges for the following items:

• The Company incurred $7 million in restructuring and related costs related to the accelerated move of the Beijing Ride Performance plant.

• The Company incurred an additional $5 million in restructuring and related costs for cost improvement initiatives at various other operations around the world.

Restructuring Reserve Rollforward

Amounts related to activities that were charges to restructuring reserves, including costs incurred to support future structural cost reductions, by reportable segments are as follows:

	Three months ended March 31, 2019
	Reportable Segments
	Clean Air			Powertrain			Ride Performance			Motorparts			Total Reportable Segments			Corporate			Total
Balance at beginning of period	$	17		$	15		$	25		$	43		$	100		$	3		$	103
Provisions	5			1			13			4			23			1			24
Payments	(6		)	(3		)	(13		)	(14		)	(36		)	(2		)	(38		)
Balance at end of period	$	16		$	13		$	25		$	33		$	87		$	2		$	89

	Three months ended March 31, 2018
	Reportable Segments
	Clean Air			Powertrain		Ride Performance			Motorparts			Total Reportable Segments			Corporate		Total
Balance at beginning of period	$	14		$	—	$	7		$	4		$	25		$	—	$	25
Provisions	1			—		8			3			12			—		12
Payments	(5		)	—		(9		)	(2		)	(16		)	—		(16		)
Balance at end of period	$	10		$	—	$	6		$	5		$	21		$	—	$	21

22

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

The following table provides a summary of the Company's restructuring liabilities and related activity for each type of exit costs:

	Three months ended March 31, 2019									Three months ended March 31, 2018
	Employee Costs			Facility Closure and Other Costs			Total			Employee Costs			Facility Closure and Other Costs			Total
Balance at beginning of period	$	98		$	5		$	103		$	19		$	6		$	25
Provisions	11			13			24			10			2			12
Payments	(25		)	(13		)	(38		)	(13		)	(3		)	(16		)
Balance at end of period	$	84		$	5		$	89		$	16		$	5		$	21

5. Inventories

At March 31, 2019 and December 31, 2018, inventory consists of the following:

	March 31, 2019		December 31, 2018
Finished goods	$	1,181	$	1,116
Work in process	526		562
Raw materials	450		457
Materials and supplies	109		110
	$	2,266	$	2,245

23

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

6. Goodwill and Other Intangible Assets

At March 31, 2019 and December 31, 2018, goodwill consists of the following:

	Three Months Ended March 31, 2019
	Clean Air		Powertrain		Ride Performance			Motorparts			Total
Gross carrying amount at beginning of period	$	22	$	388	$	210		$	611		$	1,231
Measurement period adjustments	—		21		—			(67		)	(46		)
Acquisitions	—		—		28			—			28
Gross carrying amount at end of period	22		409		238			544			1,213
Accumulated impairment loss at beginning of period	—		—		(143		)	(219		)	(362		)
Impairment	—		—		(60		)	—			(60		)
Accumulated impairment loss at end of period	—		—		(203		)	(219		)	(422		)
Net carrying value at end of period	$	22	$	409	$	35		$	325		$	791

The Öhlins Acquisition resulted in $28 million of goodwill which was included in the Ride Performance segment.

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which affected the amount of goodwill recognized and a net reduction of $46 million was recorded.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

During the three months ended March 31, 2019, the Company performed a review of potential triggering events, including, among other items, its market capitalization levels and the reorganization of its reporting structure, and concluded no events indicated (other than the reorganization of its reporting structure) it was more likely than not the fair values of its reporting units had declined to below their carrying values at March 31, 2019. If the Company’s market capitalization remains depressed for a sustained period of time or declines further, and if such a decline becomes indicative the fair value of the Company’s reporting units have declined to below their carrying values, an interim goodwill impairment test may need to be performed in future periods and may result in a material non-cash goodwill impairment charge.

As noted above, the Company reorganized the reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company reassigned assets and liabilities (excluding goodwill) to the reporting units affected. Goodwill was then reassigned to the reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill.

24

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(Unaudited)

Reporting Units

The Company has nine reporting units that have goodwill at March 31, 2019. The following table categorizes the Company’s goodwill by reporting unit according to the level of excess between the reporting unit’s fair value and carrying value giving effect to the first quarter impairment charges:

	Fair value exceeds
	carrying value	Goodwill
Reporting units 1-6	< 15%	$	354
Reporting units 7-9	> 15%	437
		$	791

At March 31, 2019 and December 31, 2018, the Company's intangible assets consist of the following:

		March 31, 2019							December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived intangible assets:
Customer relationships and platforms	10 years	$	1,019	$	(50	)	$	969	$	964	$	(24	)	$	940
Customer contract	10 years	8		(6		)	2		8		(5		)	3
Patents	10 to 17 years	1		(1		)	—		1		(1		)	—
Technology rights	10 to 30 years	135		(28		)	107		98		(27		)	71
Packaged kits know-how	10 years	54		(3		)	51		36		(1		)	35
Catalogs	10 years	40		(2		)	38		—		—			—
Licensing agreements	3 to 5 years	63		(7		)	56		66		(3		)	63
Land use rights	28 to 46 years	45		(2		)	43		44		(2		)	42
		1,365		(99		)	1,266		1,217		(63		)	1,154
Indefinite-lived intangible assets:
Trade names and trademarks		421		—			421		365		—			365
Total		$	1,786	$	(99	)	$	1,687	$	1,582	$	(63	)	$	1,519

The Company recorded definite-lived and indefinite-lived intangible assets of $135 million as a result of the Öhlins Acquisition.

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which affected the amount of definite-lived and indefinite-lived intangible assets recognized and a net increase of $71 million was recorded.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

During the three months ended March 31, 2019 and 2018, amortization expense was $35 million and less than $1 million which is included in "Depreciation and amortization" within the condensed consolidated statements of income (loss).

The expected future amortization expense for the Company's definite-lived intangible assets is as follows:

	2019		2020		2021		2022		2023		2024 and thereafter		Total
Expected amortization expense	$	106	$	140	$	139	$	134	$	131	$	616	$	1,266

7. Investment in Nonconsolidated Affiliates

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(Unaudited)

The Company has investments in several nonconsolidated affiliates, which are primarily located in China, Korea, Turkey, and the U.S. The Company generally equates control to ownership percentage whereby investments more than 50% owned are consolidated.

The Company's ownership interest in affiliates accounted for under the equity method is as follows:

	March 31, 2019		December 31, 2018
Anqing TP Goetze Piston Ring Company Limited (China)	35.7	%	35.7	%
Anqing TP Powder Metallurgy Co., Ltd (China)	20.0	%	20.0	%
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)	50.0	%	50.0	%
Farloc Argentina SAIC Y F (Argentina)	23.9	%	23.9	%
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)	50.0	%	50.0	%
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)	25.0	%	25.0	%
Federal-Mogul TP Liners, Inc. (USA)	46.0	%	46.0	%
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)	49.0	%	49.0	%
JURID do Brasil Sistemas Automotivos Ltda. (Brazil)	19.9	%	19.9	%
KB Autosys Co., Ltd. (Korea)	33.6	%	33.6	%
Montagewerk Abgastechnik Emden GmbH (Germany)	50.0	%	50.0	%

The Company's investments in its nonconsolidated affiliates at March 31, 2019 and December 31, 2018 are:

	March 31, 2019		December 31, 2018
Investments in nonconsolidated affiliates	$	528	$	544

The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019		2018
Equity earnings (losses) of nonconsolidated affiliates, net of tax	$	16	$	—
Cash dividends received from nonconsolidated affiliates	$	15	$	—

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which resulted in a reduction to the fair value of its investments in nonconsolidated affiliates of $15 million. The purchase price allocation is preliminary and subject to the finalization. The Company's current estimates and assumptions may change as more information becomes available. See Note 3, Acquisitions and Divestitures for additional information.

The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three months ended March 31, 2019. The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share:

	Three Months ended March 31, 2019
Statements of Income	Otomotiv A.S.		Anqing TP Goetze		Other		Total
Sales	$	91	$	39	$	125	$	255
Gross profit	$	21	$	16	$	23	$	60
Income from continuing operations	$	19	$	11	$	13	$	43
Net income	$	18	$	9	$	11	$	38

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(Unaudited)

See Note 18, Related Party Transactions for additional information on balances and transactions with equity method investments.

8. Derivatives and Hedging Activities

The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity compensation liabilities, and changes in interest rates, which may result in cash flow risks. For exposures not offset within its operations, the Company enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. Designation of derivative instruments is performed on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. The Company assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy.

Market Risks

Foreign Currency Risk— The Company manufactures and sells its products in North America, South America, Asia, Europe, and Africa. As a result, the Company's financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which the Company manufactures and sells its products. The Company generally tries to use natural hedges within its foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, the Company considers managing certain aspects of its foreign currency activities and larger transactions through the use of foreign currency options or forward contracts. Principal currencies hedged have historically included the U.S. dollar, euro, British pound, Polish zloty, Mexican peso, and Canadian dollar.

Concentrations of Credit Risk— Financial instruments including cash equivalents and derivative contracts expose the Company to counterparty credit risk for non-performance. The Company's counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company's requirement of high credit standing. The Company's counterparties for derivative contracts are substantial investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk through policies requiring minimum credit standing and limiting credit exposure to any one counterparty and through monitoring counterparty credit risks. The Company's concentration of credit risk related to derivative contracts at March 31, 2019 and 2018 is not material.

Other— The Company presents its derivative positions and any related material collateral under master netting agreements on a net basis. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the hypothetical derivative method, are recognized in "Cost of sales" in the condensed consolidated statements of income (loss). Derivative gains and losses included in accumulated other comprehensive income (loss) for effective hedges are reclassified into operations upon recognition of the hedged transaction. Derivative gains and losses associated with undesignated hedges are recognized in "Cost of sales" in the condensed consolidated statements of income (loss).

Derivative Instruments

Foreign Currency Forward Contracts— The Company enters into foreign currency forward purchase and sale contracts to mitigate its exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. In managing its foreign currency exposures, the Company identifies and aggregates existing offsetting positions and then hedges residual exposures through third-party derivative contracts. The gains or losses on these contracts is recognized in "Cost of sales" in the condensed consolidated statements of income (loss). The fair value of foreign currency forward contracts are recorded in "Prepayments and other current assets" or "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2019 and December 31, 2018.

The following table summarizes by position the notional amounts for foreign currency forward contracts as of March 31, 2019 (all of which mature in 2019):

	Notional Amount
Long positions	$	(33	)
Short positions	$	33

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(Unaudited)

Cash-Settled Share Swap Transactions— In 2017, the Company entered into an equity swap agreement. The Company selectively uses cash-settled share swaps to reduce market risk associated with its deferred compensation liabilities. These equity deferred compensation liabilities increase as the Company's stock price increases and decrease as the Company's stock price decreases. In contrast, the value of the swap agreement moves in the opposite direction of these liabilities, allowing the Company to fix a portion of the liabilities at a stated amount. As of March 31, 2019, the Company had hedged its deferred compensation liability related to approximately 250,000 common share equivalents. The fair value of the equity swap agreement is recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets. The fair value of the Company's equity swap agreement was a net asset position of $3 million at March 31, 2019 and $4 million at December 31, 2018.

Hedging Instruments

Cash Flow Hedges — Commodity Price Risk — The Company’s production processes are dependent upon the supply of certain raw materials that are exposed to price fluctuations on the open market. The primary purpose of the Company’s commodity price forward contract activity is to manage the volatility associated with forecasted purchases for up to eighteen months in the future. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts. Principal raw materials hedged include copper, tin, and zinc. In certain instances within this program, foreign currency forwards may be used in order to match critical terms for commodity exposure.

The Company has designated these contracts as cash flow hedging instruments. The Company records unrecognized gains and losses in other comprehensive income (loss) (“OCI or OCL”) and makes regular reclassifying adjustments into “Cost of sales” within the condensed consolidated statements of income (loss) when the underlying hedged transaction is recognized in earnings. The Company had commodity derivatives outstanding with an equivalent notional amount of $26 million as of March 31, 2019 and $27 million as of December 31, 2018. Substantially all of the commodity price hedge contracts mature within one year.

Net Investment Hedge — Foreign Currency Borrowings — The Company has foreign currency denominated debt, €769 million of which was designated as a net investment hedge in certain foreign subsidiaries and affiliates of the Company. Changes to its carrying value are included in shareholders' equity in the foreign currency translation component of OCL and offset against the translation adjustment on the underlying net assets of those foreign subsidiaries and affiliates, which are also recorded in OCL. The Company’s debt instruments are discussed further in Note 10, Debt and Other Financing Arrangements.

The following table is a summary of the carrying value of derivative and non-derivative instruments designated as hedges as of March 31, 2019:

		Carrying Value
	Balance sheet classification	March 31, 2019		December 31, 2018
Commodity price hedge contracts designated as cash flow hedges	Prepayments and other current assets	$	2	$	—
Commodity price hedge contracts designated as cash flow hedges	Accrued expenses and other current liabilities	$	—	$	2
Foreign currency borrowings designated as net investment hedges	Long-term debt	$	862	$	863

The following table represents the effects before reclassification into net income of derivative and non-derivative instruments designated as hedges in accumulated other comprehensive income (loss) as of March 31, 2019:

Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion):	Three months ended March 31, 2019
Commodity price hedge contracts designated as cash flow hedges	$	4
Foreign currency borrowings designated as net investment hedges	$	(19	)

The Company estimates $4 million included in accumulated OCI or OCL as of March 31, 2019 will be reclassified into earnings within the following 12 months.

9. Fair Value of Financial Instruments

A three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements.

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(Unaudited)

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy definition prioritizes the inputs used in measuring fair value into the following levels:

Level 1	—	Quoted prices in active markets for identical assets or liabilities.
Level 2	—	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
Level 3	—	Unobservable inputs based on our own assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents assets and liabilities included in the Company's condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount			Fair Value
Derivative instruments:
Equity swap agreement	Level 2	$	3	$	3	$	4		$	4
Commodity contracts	Level 2	$	2	$	2	$	(2	)	$	(2	)

Cash-Settled Share Swap Transactions — The fair value of the equity swap agreement is recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets.

Commodity Contracts — The Company calculates the fair value of its commodity contracts and foreign currency contracts using quoted commodity forward rates and quoted currency forward rates, to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on quoted bank deposit rates. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2019 and December 31, 2018.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

In addition to items measured at fair value on a recurring basis, assets may be measured at fair value on a nonrecurring basis. These assets include long-lived assets and intangible assets which may be written down to fair value as a result of impairment.

The Company has determined the fair value measurements related to each of these rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, as observable inputs are not available (level 3). To determine the fair value of long-lived asset groups, the Company utilizes discounted cash flows expected to be generated by the long-lived asset group.

The Company evaluates the carrying value of its goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each year. These fair value measurements require the Company to make significant assumptions and estimates about the extent and timing of future cash flows, discount rates, and growth rates, which are subject to a high degree of uncertainty. The Company believes the assumptions and estimates used to determine the estimated fair value are reasonable, but different assumptions could materially affect the estimated fair value.

During the three months ended March 31, 2019, the Company reorganized its reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill. See Note 6, Goodwill and Other Intangible Assets.

29

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

Financial Instruments Not Carried at Fair Value

Estimated fair values of the Company's outstanding debt were:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	5,386	$	5,285	$	5,307	$	5,218

The fair value of the Company's public senior notes and private borrowings under its senior credit facility is based on observable inputs, and its borrowings on the revolving credit facility approximate fair value. The Company also had $104 million and $106 million at March 31, 2019 and December 31, 2018 in other debt whose carrying value approximates fair value, which consists primarily of foreign debt with maturities of one year or less.

Assets and Liabilities Not Carried at Fair Value

The carrying value of cash and cash equivalents, restricted cash, short and long-term receivables, accounts payable, and short-term debt approximates fair value.

10. Debt and Other Financing Arrangements

Long-Term Debt

A summary of our long-term debt obligations at March 31, 2019 and December 31, 2018 is set forth in the following table:

	March 31, 2019				December 31, 2018
	Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
Credit Facilities
Revolver Borrowings
Due 2023	$	132	$	132	$	—	$	—
Term Loans
LIBOR plus 1.75% Term Loan A due 2019 through 2023	1,679		1,670		1,700		1,691
LIBOR plus 2.75% Term Loan B due 2019 through 2025	1,696		1,628		1,700		1,629
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		222		225		222
$500 million of 5.000% Senior Notes due 2026	500		493		500		493
Senior Secured Notes
415 million 4.875% Euro Fixed Rate Notes due 2022	466		483		476		496
300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024	337		341		344		349
350 million of 5.000% Euro Fixed Rate Notes due 2024	393		417		401		427
Other debt, primarily foreign instruments	105		104		108		106
			5,490				5,413
Less - maturities classified as current			73				73
Total long-term debt			$	5,417			$	5,340

(1) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $86 million and $90 million as of March 31, 2019 and December 31, 2018. Total unamortized debt (premium) discount, net was $(45) million and $(49) million as of March 31, 2019 and December 31, 2018.

Term Loans

On October 1, 2018, the Company entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and other lenders (the "New Credit Facility") in connection with the Federal-Mogul Acquisition. The New Credit Facility provides $4.9 billion of total debt financing, consisting of a five-year $1.5 billion revolving credit facility, a five-year $1.7

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

billion term loan A facility ("Term Loan A") and a seven-year $1.7 billion term loan B facility ("Term Loan B").

The effective interest rate on the Term Loan A was 4.396% and 6.031% on Term Loan B.

Senior Notes

The Company has outstanding 5.375% senior unsecured notes due December 15, 2024 ("2024 Senior Notes") and 5.000% senior unsecured notes due July 15, 2026 ("2026 Senior Notes" and together with the 2024 Senior Notes, the "Senior Unsecured Notes"). The Company has outstanding 5.000% euro denominated fixed rate notes which are due July 15, 2024 ("5.000% Euro Fixed Rate Notes"), 4.875% euro denominated fixed rate notes due April 15, 2022 ("4.875% Euro Fixed Rate Notes"), and floating rate notes due April 15, 2024 ("Euro Floating Rate Notes", together with the 5.000% Euro Fixed Rate Notes and the 4.875% Euro Fixed Notes, the "Senior Secured Notes").

The Company had availability on its credit facilities as of March 31, 2019 as follows:

	Credit Facilities as of March 31, 2019
	Term	Available(b)
	(in billions)
Tenneco Inc. revolving credit facility (a)	2023	$	1.3
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2018-2028	0.1
		$	1.4

^(a)  The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.

^(b)  Letters of credit reduce the available borrowings under the revolving credit facility, as of March 31, 2019 the revolving credit facility had $20 million in letters of credit outstanding.

Interest expense associated with the amortization of the debt issuance costs and original issue discounts recognized in the Company's condensed consolidated statements of income (loss) consist of the following:

	Three months ended March 31,
	2019		2018
Amortization of debt issuance fees	$	5	$	1

Included in the table above, is the amortization of debt issuance costs on the revolver, which are $21 million at March 31, 2019 and are recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets. In addition, there was a $3 million reduction to interest expense during the three months ended March 31, 2019 related to the accretion of the debt premium on the Senior Secured Notes.

New Credit Facility — Other Terms and Conditions— The New Credit Facility also contains two financial maintenance covenants for the revolving credit facility and the Term Loan A facility including a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility) as of the end of each fiscal quarter of not greater than 4.0 to 1 through September 30, 2019, 3.75 to 1 through September 30, 2020 and 3.5 to 1 thereafter; and a requirement to maintain a consolidated interest coverage ratio (as defined in the New Credit Facility) for any period of four consecutive fiscal quarters of not less than 2.75 to 1.  

Senior Unsecured Notes and Senior Secured Notes — Other Terms and Conditions— The Senior Unsecured Notes and Senior Secured Notes contain covenants that will, among other things, limit the Company's ability to create liens and enter into sale and leaseback transactions. In addition, the Senior Secured Notes and 2024 Senior Unsecured Notes also require that, as a condition precedent to incurring certain types of indebtedness not otherwise permitted, the Company's consolidated fixed charge coverage ratio, as calculated on a pro forma basis, be greater than 2.00, as well as containing restrictions on its operations, including limitations on: (i) incurring additional indebtedness; (ii) paying dividends; (iii) distributions and stock repurchases; (iv) investments; (v) asset sales and (vi) mergers and consolidations.

Subject to limited exceptions, all of the Company's existing and future material domestic wholly owned subsidiaries fully and unconditionally guarantee its Senior Unsecured Notes and Senior Secured Notes on a joint and several basis. There are no

31

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(Unaudited)

significant restrictions on the ability of the subsidiaries that have guaranteed the Company's Senior Notes to make distributions to the Company.

As of March 31, 2019, the Company was in compliance with all of its financial covenants.

Accounts Receivable Securitization and Factoring

On-Balance Sheet Arrangements — The Company has securitization programs for some of its accounts receivable, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
Borrowings on securitization programs	$	3	$	6

Off-Balance Sheet Arrangements— In the Company's European and U.S. accounts receivable factoring programs, accounts receivables are transferred in their entirety to the acquiring entities and are accounted for as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under these factoring programs approximates the fair value of such receivables. Certain programs in Europe have deferred purchase price arrangements with the banks.

The Company is the servicer of the receivables under some of these arrangements and is responsible for performing all accounts receivable administration functions. Where the Company receives a fee to service and monitor these transferred accounts receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of such activities.

In the U.S and Canada, the Company participates in supply chain financing programs with certain of the Company's aftermarket customers through a drafting program.

The amounts outstanding for these factoring and drafting arrangements as of March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
	(in billions)
Accounts receivable outstanding and derecognized	$	1.1	$	1.0

The deferred purchase price receivable as of March 31, 2019 and December 31, 2018 is as follows:

	March 31, 2019		December 31, 2018
Deferred purchase price receivable	$	58	$	154

Proceeds from the factoring of accounts receivable qualifying as sales are as follows:

	Three months ended March 31,
	2019		2018
	(in billions)
Proceeds from factoring qualifying as sales	$	1.2	$	0.8

Financing charges associated with the factoring of receivables are as follows:

	Three months ended March 31,
	2019		2018
Financing charges on sale of receivables(a)	$	8	$	3
(a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).

If the Company were not able to factor receivables or sell drafts under either of these programs, its borrowings under its revolving credit agreement might increase. These programs provide the Company with access to cash at costs that are generally favorable to alternative sources of financing and allow the Company to reduce borrowings under its revolving credit agreement.

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(Unaudited)

11. Pension Plans, Postretirement and Other Employee Benefits

The Company sponsors several defined benefit pension plans ("Pension Benefits") and health care and life insurance benefits ("Other Postretirement Benefits", or "OPEB") for certain employees and retirees around the world.

Components of net periodic benefit cost (credit) for the three months ended March 31, 2019 and 2018 are as follows:

	Three Months Ended March 31,
	Pension												Other Postretirement Benefits
	2019						2018
	U.S.			Non-U.S.			U.S.			Non-U.S.			2019			2018
Service cost	$	1		$	6		$	—		$	3		$	—		$	—
Interest cost	13			7			3			3			3			2
Expected return on plan assets	(17		)	(5		)	(4		)	(5		)	—			—
Net amortization:
Actuarial loss	1			1			1			2			1			1
Prior service cost (credit)	—			—			—			—			(2		)	—
Net pension and postretirement costs (credits)	$	(2	)	$	9		$	—		$	3		$	2		$	3

Long-term Rate of Return

The weighted-average long-term rate of return on assets for the U.S. pension plans in determining 2019 annual net periodic pension costs (credits) is 6.25%.

12. Income Taxes

For interim tax reporting, the Company estimates its annual effective tax rate and applies it to year-to-date ordinary income. Jurisdictions where no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The effect of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a particular quarter due to the mix and timing of actual earnings versus annual projections. The tax effects of certain items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

The Company recognized no income tax expense for the three months ended March 31, 2019 and $25 million in the three months ended March 31, 2018. The tax expense recorded in the three months ended March 31, 2019 included a tax benefit of $2 million relating to changes in the toll tax as discussed below.

On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was enacted into U.S. law, which, among other provisions, lowered the corporate income tax rate effective January 1, 2018 from 35% to 21%, and implemented significant changes with respect to U.S. tax treatment of earnings originating from outside the U.S. Many of the provisions of TCJA are subject to regulatory interpretation and U.S. state conforming enactments. The Internal Revenue Service (IRS) issued final regulations, effective on February 5, 2019, which provided additional guidance to assist taxpayers in computing the toll tax. Based on the final regulations a $2 million discrete benefit was recorded in income tax expense the three months ended March 31, 2019.

The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required or should be adjusted. This assessment considers, among other matters, the nature, frequency and amount of recent losses, the duration of statutory carryforward periods, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. If recent operational improvements continue in our foreign subsidiaries or if certain restructuring steps are completed as part of the Federal-Mogul Acquisition and anticipated spin-off of DRiV, the Company believes it is reasonably possible sufficient positive evidence may be available to release all, or a portion, of its valuation allowance in the next twelve months in certain jurisdictions. This may result in a one-time tax benefit of up to $51 million, primarily related to Spain, China and Czech Republic.

The Company believes it is reasonably possible up to $11 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the next twelve months.

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(Unaudited)

13. Commitments and Contingencies

Environmental Matters

The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. The Company has been notified by the U.S. Environmental Protection Agency, other national environmental agencies, and various provincial and state agencies it may be a potentially responsible party (“PRP”) under such laws for the cost of remediating hazardous substances pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and other national and state or provincial environmental laws. PRP designation typically requires the funding of site investigations and subsequent remedial activities. Many of the sites that are likely to be the costliest to remediate are often current or former commercial waste disposal facilities to which numerous companies sent wastes. Despite the potential joint and several liability which might be imposed on the Company under CERCLA and some of the other laws pertaining to these sites, its share of the total waste sent to these sites generally has been small. The Company believes its exposure for liability at these sites is not material.

On a global basis, the Company has also identified certain other present and former properties at which it may be responsible for cleaning up or addressing environmental contamination, in some cases as a result of contractual commitments and/or federal or state environmental laws. The Company is seeking to resolve its responsibilities for those sites for which a claim has been received.

The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. As of March 31, 2019, the Company has an obligation to remediate or contribute towards the remediation of certain sites, including the sites discussed above at which it may be a PRP.

The Company maintains the aggregated estimated share of environmental remediation costs for all these sites on a discounted basis in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	10	$	12
Deferred credits and other liabilities	29		28
	$	39	$	40

For those locations where the liability was discounted, the weighted average discount rate used was 1.7% and 2.9% at March 31, 2019 and December 31, 2018.

The Company's expected payments of environmental remediation costs for non-indemnified locations are estimated to be approximately:

	2019		2020		2021		2022		2023		2024 and thereafter
Expected payments	$	8	$	6	$	3	$	2	$	2	$	17

Based on information known to the Company from site investigations and the professional judgment of consultants, the Company has established reserves it believes are adequate for these costs. Although the Company believes these estimates of remediation costs are reasonable and are based on the latest available information, the costs are estimates, difficult to quantify based on the complexity of the issues, and are subject to revision as more information becomes available about the extent of remediation required. At some sites, the Company expects other parties will contribute to the remediation costs. In addition, certain environmental statutes provide the Company's liability could be joint and several, meaning the Company could be required to pay amounts in excess of its share of remediation costs. The financial strength of the other PRPs at these sites has been considered, where appropriate, in the determination of the estimated liability. The Company does not believe any potential costs associated with its current status as a PRP, or as a liable party at the other locations referenced herein, will be material to its annual consolidated financial position, results of operations, or liquidity.

Asset Retirement Obligations

The Company’s primary asset retirement obligations ("ARO") activities relate to the removal of hazardous building materials at its facilities. The Company records an ARO at fair value upon initial recognition when the amount is probable and can be

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(Unaudited)

reasonably estimated. ARO fair values are determined based on the Company’s determination of what a third party would charge to perform the remediation activities, generally using a present value technique.

The Company maintains ARO liabilities in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	3	$	3
Deferred credits and other liabilities	12		12
	$	15	$	15

Antitrust Investigations and Litigation

On March 25, 2014, representatives of the European Commission (EC) were at Tenneco GmbH's Edenkoben, Germany administrative facility to gather information in connection with an ongoing global antitrust investigation concerning multiple automotive suppliers. On the same date, the Company also received a related subpoena from the U.S. Department of Justice (“DOJ”).

On November 5, 2014, the DOJ granted conditional leniency to Tenneco, its subsidiaries and its 50% affiliates as of such date ("2014 Tenneco Entities") pursuant to an agreement the Company entered into under the Antitrust Division's Corporate Leniency Policy. This agreement provides important benefits to the 2014 Tenneco Entities in exchange for the Company's self-reporting of matters to the DOJ and its continuing full cooperation with the DOJ's resulting investigation. For example, the DOJ will not bring any criminal antitrust prosecution against the 2014 Tenneco Entities, nor seek any criminal fines or penalties, in connection with the matters the Company reported to the DOJ. Additionally, there are limits on the liability of the 2014 Tenneco Entities related to any follow-on civil antitrust litigation in the United States. The limits include single rather than treble damages, as well as relief from joint and several antitrust liability with other relevant civil antitrust action defendants. These limits are subject to the Company satisfying the DOJ and any court presiding over such follow-on civil litigation.

On April 27, 2017, the Company received notification from the EC that it has administratively closed its global antitrust inquiry regarding the production, assembly, and supply of complete exhaust systems. No charges against the Company or any other competitor were initiated at any time and the EC inquiry is now closed.

Certain other competition agencies are also investigating possible violations of antitrust laws relating to products supplied by the Company and its subsidiaries, including Federal-Mogul. The Company has cooperated and continues to cooperate fully with all of these antitrust investigations, and take other actions to minimize its potential exposure.

The Company and certain of its competitors are also currently defendants in civil putative class action litigation, and are subject to similar claims filed by other plaintiffs, in the United States and Canada. More related lawsuits may be filed, including in other jurisdictions. Plaintiffs in these cases generally allege that defendants have engaged in anticompetitive conduct, in violation of federal and state laws, relating to the sale of automotive exhaust systems or components thereof. Plaintiffs seek to recover, on behalf of themselves and various purported classes of purchasers, injunctive relief, damages and attorneys’ fees. However, as explained above, because the DOJ granted conditional leniency to the 2014 Tenneco Entities, the Company's civil liability in U.S. follow-on actions with respect to these entities is limited to single damages and the Company will not be jointly and severally liable with the other defendants, provided that the Company has satisfied its obligations under the DOJ leniency agreement and approval is granted by the presiding court. Typically, exposure for follow-on actions in Canada is less than the exposure for U.S. follow-on actions.

Following the EC’s decision to administratively close its antitrust inquiry into exhaust systems in 2017, receipt by the 2014 Tenneco Entities of conditional leniency from the DOJ and discussions during the third quarter of 2017 following the appointment of a special settlement master in the civil putative class action cases pending against the Company and/or certain of its competitors in the United States, the Company continues to vigorously defend itself and/or take actions to minimize its potential exposure to matters pertaining to the global antitrust investigation, including engaging in settlement discussions when it is in the best interests of the Company and its stockholders. For example, in October 2017, the Company settled an administrative action brought by Brazil's competition authority for an amount that was not material. In December 2018, the Company settled a separate administrative action brought by Brazil’s competition authority against a Federal-Mogul subsidiary, also for an amount that was not material.

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(Unaudited)

Additionally, in February 2018, the Company settled civil putative class action litigation in the United States brought by classes of direct purchasers, end-payors and auto dealers. No other classes of plaintiffs have brought claims against the Company in the United States. Based upon those earlier developments, including settlement discussions, The Company established a reserve of $132 million in its second quarter 2017 financial results for settlement costs that were probable, reasonably estimable, and expected to be necessary to resolve its antitrust matters globally, which primarily involves the resolution of civil suits and related claims. Of the $132 million reserve that was established, $79 million was paid through March 31, 2019 resulting in a remaining reserve of $53 million as of March 31, 2019, which is recorded in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. While the Company, including its Federal-Mogul subsidiaries, continues to cooperate with certain competition agencies investigating possible violations of antitrust laws relating to products supplied by the Company, and the Company may be subject to other civil lawsuits and/or related claims, no amount of this reserve is attributable to matters with the DOJ or the EC, and no such amount is expected based on current information.

The Company's reserve for its antitrust matters is based upon all currently available information and an assessment of the probability of events for those matters where the Company can make a reasonable estimate of the costs to resolve such outstanding matters. The Company's estimate involves significant judgment, given the number, variety and potential outcomes of actual and potential claims, the uncertainty of future rulings and approvals by a court or other authority, the behavior or incentives of adverse parties or regulatory authorities, and other factors outside of its control. As a result, the Company's reserve may change from time to time, and actual costs may vary. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, the Company does not expect that any such change in the reserve will have a material adverse effect on the Company's annual condensed consolidated financial position, results of operations or liquidity.

Other Legal Proceedings, Claims and Investigations

For many years the Company has been and continues to be subject to lawsuits initiated by claimants alleging health problems as a result of exposure to asbestos. The Company's current docket of active and inactive cases is less than 500 cases in the United States and less than 50 in Europe.

With respect to the claims filed in the United States, the substantial majority of the claims are related to alleged exposure to asbestos in the Company's line of Walker® exhaust automotive products although a significant number of those claims appear also to involve occupational exposures sustained in industries other than automotive. A small number of claims have been asserted against one of the Company's subsidiaries by railroad workers alleging exposure to asbestos products in railroad cars. The Company believes, based on scientific and other evidence, it is unlikely that U.S. claimants were exposed to asbestos by the Company's former products and that, in any event, they would not be at increased risk of asbestos-related disease based on their work with these products. Further, many of these cases involve numerous defendants, with the number in some cases exceeding 100 defendants from a variety of industries. Additionally, in many cases the plaintiffs either do not specify any, or specify the jurisdictional minimum, dollar amount for damages.

With respect to the claims filed in Europe, the substantial majority relate to occupational exposure claims brought by current and former employees of Federal-Mogul facilities in France and amounts paid out were not material. A small number of occupational exposure claims have also been asserted against Federal-Mogul entities in Italy and Spain.

As major asbestos manufacturers and/or users continue to go out of business or file for bankruptcy, the Company may experience an increased number of these claims. The Company vigorously defends itself against these claims as part of its ordinary course of business. In future periods, the Company could be subject to cash costs or charges to earnings if any of these matters are resolved unfavorably to the Company. To date, with respect to claims that have proceeded sufficiently through the judicial process, the Company has regularly achieved favorable resolutions. Accordingly, the Company presently believes that these asbestos-related claims will not have a material adverse effect on the Company's condensed consolidated financial position, results of operations or liquidity.

The Company is also from time to time involved in other legal proceedings, claims or investigations. Some of these matters involve allegations of damages against the Company relating to environmental liabilities (including toxic tort, property damage and remediation), intellectual property matters (including patent, trademark and copyright infringement, and licensing disputes), personal injury claims (including injuries due to product failure, design or warning issues, and other product liability related matters), taxes, unclaimed property, employment matters, and commercial or contractual disputes, sometimes related to acquisitions or divestitures. Additionally, some of these matters involve allegations relating to legal compliance.

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(Unaudited)

While the Company vigorously defends itself against all of these legal proceedings, claims and investigations and take other actions to minimize its potential exposure, in future periods, the Company could be subject to cash costs or charges to earnings if any of these matters are resolved on unfavorable terms. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, including the Company's assessment of the merits of the particular claim, except as described above under "Antitrust Investigations", the Company does expect the legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its condensed consolidated financial position, results of operations or liquidity.

Warranty Matters

The Company provides warranties on some of its products. The warranty terms vary but range from one year up to limited lifetime warranties on some of its premium aftermarket products. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified with the Company's products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company believes the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. The reserve is included in both current and long-term liabilities on the condensed consolidated balance sheets.

Below is a table that shows the activity in the warranty accrual accounts:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	45		$	26
Accruals related to product warranties	5			6
Reductions for payments made	(2		)	(3		)
Foreign currency	—			—
Balance at end of period	$	48		$	29

14. Leases

The Company has operating and finance leases for real estate and equipment. Generally, the leases have remaining terms ofone month to ten years. Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

In addition, some leases include options to terminate the lease. The Company generally negotiates these termination clauses in anticipation of any changes in market conditions; however, because a termination option requires approval from management, the Company assumes the majority of its termination options will not be exercised when determining the lease term.

The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. Lease expense is recorded in operating expenses in the results of operations.

Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable portion of lease payments is not included in the computation of the right of use assets or lease liabilities. Rather, variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred and are included in lease expense in the results of operations.

The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases.

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(Unaudited)

The components of lease cost were as follows:

	Three months ended March 31, 2019
Operating lease cost	$	33
Short-term lease expense	1
Variable lease cost	8
Total lease cost	$	42

Other information related to leases was as follows:

	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	41

Supplemental balance sheet information related to leases was as follows:

	March 31, 2019
Operating leases
Operating lease right-of-use assets (a)	$	362
Other current liabilities (b)	$	101
Other long-term liabilities (c)	256
Total operating lease liabilities	$	357
Finance leases
Property, plant and equipment, gross	$	2
Accumulated depreciation	—
Total finance lease right-of-use assets	$	2
Other current liabilities (b)	$	1
Other long-term liabilities (c)	1
Total finance lease liabilities	$	2
(a) Included in "Other assets" in the condensed consolidated balance sheets.
(b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets.
(c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets.

	March 31, 2019
	Weighted average remaining lease term	Weighted average discount rate
Operating leases	5.29 years	4.26	%
Finance leases	3.23 years	4.85	%

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(Unaudited)

Maturities of lease liabilities under non-cancellable leases as of March 31, 2019 were as follows:

Year ending December 31	Operating leases			Finance leases
2019 (excluding the three months ended March 31, 2019)	$	85		$	1
2020	91			1
2021	69			—
2022	48			—
2023	34			—
Thereafter	55			—
Total future undiscounted lease payments	382			2
Less imputed interest	(25		)	—
Total reported lease liability	$	357		$	2

Future minimum operating lease payments at December 31, 2018 are as follows:

2019	$	120
2020	100
2021	86
2022	68
2023	56
Beyond 2023	53
	$	483

15. Share-Based Compensation

Share-Based Compensation Expense

The total share-based compensation expense was as follows:

	Three Months Ended March 31,
	2019			2018
Cash-settled share-based compensation expense (benefit)	$	(1	)	$	(1	)
Share-settled share-based compensation expense (benefit)	7			5
	$	6		$	4

Cash-Settled Awards

Prior to 2018, the Company has granted restricted stock units ("RSUs") and long-term performance units ("LTPUs") to certain key employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite period up until date of settlement. At March 31, 2019, the LTPUs outstanding included a three-year grant for 2017-2019 payable in the first quarter of 2020.

As of March 31, 2019, $1 million of total unrecognized compensation costs is expected to be recognized on the cash-settled awards over a weighted-average period of less than 1 year.

Share-Settled Awards

The Company has granted restricted stock to its directors and certain key employees as well as RSUs and PSUs that are payable in common stock to certain key employees. These awards are settled in shares upon vesting and recognized in equity based on their fair value.

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(Unaudited)

The following table reflects the status for all nonvested restricted shares, share-settled RSUs, and PSUs for the period indicated:

	Restricted Stock				Share-Settled RSUs				PSUs
	Shares		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value
Nonvested Restricted Shares
Nonvested balance at beginning of period	178,550		$	55.46	440,403		$	47.99	227,049		$	49.18
Granted	34,009		34.66		856,808		34.25		628,990		24.77
Vested	(166,444	)	49.86		(83,109	)	55.00		—		—
Forfeited	(1,262	)	61.61		(17,772	)	42.82		(15,065	)	50.75
Nonvested balance at end of period	44,853		$	62.49	1,196,330		$	38.22	840,974		$	34.44

As of March 31, 2019, approximately $63 million of total unrecognized compensation costs is expected to be recognized on the share-settled awards over a weighted-average period of approximately 3 years.

16. Shareholders' Equity

Common Stock Outstanding

The Company has authorized 175,000,000 shares and 135,000,000 shares ($0.01 par value) of Class A Common Stock at March 31, 2019 and 2018. The Company has authorized 25,000,000 shares ($0.01 par value) of Class B Common Stock at March 31, 2019.

Total common stock outstanding and changes in common stock issued are as follows:

	Class A Common Stock				Class B Common Stock
	Three Months March 31				Three Months March 31
	2019		2018		2019
Shares issued at beginning of period	71,675,379		66,033,509		23,793,669
Issuance (repurchased) pursuant to benefit plans	120,622		(15,906	)	—
Restricted stock forfeited and withheld for taxes	(54,293	)	(5,108	)	—
Stock options exercised	8,438		4,779		—
Shares issued at end of period	71,750,146		66,017,274		23,793,669
Treasury stock	14,592,888		14,592,888		—
Total shares outstanding	57,157,258		51,424,386		23,793,669

Preferred Stock

The Company had 50,000,000 shares of preferred stock ($0.01 par value) authorized at both March 31, 2019 and 2018. No shares of preferred stock were issued or outstanding at those dates.

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(Unaudited)

Accumulated Other Comprehensive Income (Loss)

The following represents the Company's changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31
	2019			2018
Foreign currency translation adjustments and other
Balance at beginning of period	$	(395	)	$	(263	)
Other comprehensive income (loss) before reclassifications adjustments	27			19
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	(368		)	(244		)
Income tax provision (benefit)	2			—
Balance at end of period	$	(366	)	$	(244	)
Pensions and other postretirement benefits
Balance at beginning of period	$	(297	)	$	(275	)
Other comprehensive income (loss) before reclassifications	—			—
Reclassification from other comprehensive income (loss)	1			4
Other comprehensive income (loss)	(296		)	(271		)
Income tax provision (benefit)	—			(1		)
Balance at end of period	$	(296	)	$	(272	)
Cash flow hedge instruments
Balance at beginning of period	$	—		$	—
Other comprehensive income (loss) before reclassifications	4			—
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	4			—
Income tax provision (benefit)	—			—
Balance at end of period	$	4		$	—
Other comprehensive income (loss) attributable to noncontrolling interests	$	6		$	8

17. Segment Information

The Company expects to separate its businesses to form two new, independent publicly traded companies and now expects the DRiV spinoff to occur mid-2020.As such, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate."

Management uses EBITDA including noncontrolling interests as the key performance measure of segment profitability and uses the measure in its financial and operational decision making processes, for internal reporting, and for planning and forecasting purposes to effectively allocate resources. EBITDA including noncontrolling interests is defined as earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization. Segment assets are not presented as it is not a measure reviewed by the Chief Operating Decision Maker in allocating resources and assessing performance.

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(Unaudited)

EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with US GAAP and should not be considered an alternative to net income, which is the most directly comparable financial measure to EBITDA including noncontrolling interests that is in accordance with US GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

The following table summarizes certain of the Company's segment information:

	Reportable Segments
	Clean Air		Powertrain		Ride Performance			Motorparts		Total		Corporate			Reclass & Elims			Total
For the Three Months Ended March 31, 2019
Revenues from external customers	$	1,779	$	1,175	$	733		$	797	$	4,484	$	—		$	—		$	4,484
Intersegment revenues	$	—	$	46	$	46		$	11	$	103	$	—		$	(103	)	$	—
EBITDA, including noncontrolling interests	$	131	$	113	$	(45	)	$	45	$	244	$	(99	)	$	—		$	145
For the Three Months Ended March 31, 2018
Revenues from external customers	$	1,756	$	—	$	513		$	312	$	2,581	$	—		$	—		$	2,581
Intersegment revenues	$	—	$	—	$	6		$	—	$	6	$	—		$	(6	)	$	—
EBITDA, including noncontrolling interests	$	157	$	—	$	24		$	45	$	226	$	(44	)	$	—		$	182

Segment EBITDA including noncontrolling interests and the reconciliation to earnings before interest expense, income taxes, and noncontrolling interests are as follow:

	Three Months Ended March 31,
	2019			2018
EBITDA including noncontrolling interests by Segments:
Clean Air	$	131		$	157
Powertrain	113			—
Ride Performance	(45		)	24
Motorparts	45			45
Corporate	(99		)	(44		)
Total EBITDA including noncontrolling interests	145			182
Less: Depreciation and amortization	(169		)	(60		)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122
Less: Interest expense	(81		)	(23		)
Less: Income tax expense (benefit)	—			(25		)
Net income (loss)	$	(105	)	$	74

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(Unaudited)

Revenue from contracts with customers is disaggregated by customer type and geography, 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 tables, revenue is disaggregated accordingly:

	Reportable Segments
By Customer Type	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
OE - Substrate	$	706	$	—	$	—	$	—	$	706
OE - Value add	1,073		1,175		733		—		2,981
Aftermarket	—		—		—		797		797
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
OE - Substrate	$	652	$	—	$	—	$	—	$	652
OE - Value add	1,104		—		513		—		1,617
Aftermarket	—		—		—		312		312
Total	$	1,756	$	—	$	513	$	312	$	2,581

	Reportable Segments
By Geography	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
North America	$	793	$	405	$	232	$	507	$	1,937
Europe, Middle East and Africa	641		575		378		237		1,831
Rest of world	345		195		123		53		716
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
North America	$	768	$	—	$	180	$	188	$	1,136
Europe, Middle East and Africa	657		—		225		108		990
Rest of world	331		—		108		16		455
Total	$	1,756	$	—	$	513	$	312	$	2,581

18. Related Party Transactions

Amounts presented as Icahn Automotive Group LLC represent the Company's activity with Auto Plus and Pep Boys. See Note 7, Investment in Nonconsolidated Affiliates, for further information for companies within the tables below that represent equity method investments.

43

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

The following table is a summary of the net sales, purchases, and royalty and other income from related parties for the three months ended March 31, 2019:

	Three Months Ended March 31, 2019
	Net Sales		Purchases		Royalty and Other Income
Icahn Automotive Group LLC	$	43	$	—	$	1
PSC Metals, Inc.	$	1	$	—	$	—
Anqing TP Goetze Piston Ring Company Limited	$	—	$	14	$	—
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	—
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	—
Federal-Mogul Powertrain Otomotiv A.S.	$	27	$	55	$	1
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	3	$	—
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	1	$	4	$	—
Federal-Mogul TP Liners, Inc.	$	4	$	—	$	—
Montagewerk Abgastechnik Emden GmbH	$	2	$	—	$	—

During the three months ended March 31, 2018, the Company had sales to Montagewerk Abgastechnik Emden GmbH of $4 million.

The following table is a summary of amounts due to and from the Company's related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019				December 31, 2018
	Receivables		Payables and accruals		Receivables		Payables and accruals
Icahn Automotive Group LLC	$	59	$	1	$	60	$	12
Anqing TP Goetze Piston Ring Company Limited	$	1	$	16	$	1	$	22
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	1	$	1
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	1	$	2
Federal-Mogul Powertrain Otomotiv A.S.	$	16	$	27	$	9	$	16
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	1	$	—	$	1
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	—	$	3	$	—	$	—
Federal-Mogul TP Liners, Inc.	$	2	$	8	$	2	$	7
Montagewerk Abgastechnik Emden GmbH	$	—	$	1	$	—	$	—

44

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

19. Supplemental Guarantor Condensed Consolidating Financial Statements

Basis of Presentation

Substantially all of the Company's existing and future material domestic 100% owned subsidiaries (which are referred to as the Guarantor Subsidiaries) fully and unconditionally guarantee its senior notes on a joint and several basis. However, a subsidiary’s guarantee may be released in certain customary circumstances such as a sale of the subsidiary or all or substantially all of its assets in accordance with the indenture applicable to the notes. The Guarantor Subsidiaries are combined in the presentation below.

These consolidating financial statements are presented on the equity method. Under this method, the Company's investments are recorded at cost and adjusted for its ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. You should read the condensed consolidating financial information of the Guarantor Subsidiaries in connection with the Company's condensed consolidated financial statements and related notes of which this note is an integral part.

The accompanying supplemental guarantor consolidating financial statements have been updated to reflect the revision as described in Note 2, Summary of Significant Accounting Policies.

As discussed in Note 3, Acquisitions and Divestitures, the allocation of the purchase price to the assets acquired and liabilities assumed, including the entities to which it is allocated, is preliminary and subject to change during the measurement period.

Distributions

There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us.

45

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,691		$	2,793		$	—		$	—		$	4,484
Affiliated companies	218			281			—			(499		)	—
	1,909			3,074			—			(499		)	4,484
Costs and expenses
Cost of sales	1,676			2,688			(1		)	(499		)	3,864
Restructuring charges and asset impairments	8			16			—			—			24
Goodwill impairment charge	33			27			—			—			60
Engineering, research, and development	39			53			—			—			92
Selling, general, and administrative	178			135			3			—			316
Depreciation and amortization	83			86			—			—			169
	2,017			3,005			2			(499		)	4,525
Other expense (income)
Non-service postretirement benefit costs	—			2			—			—			2
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(1		)	(15		)	—			—			(16		)
Other (income) expense, net	(7		)	4			—			—			(3		)
	(8		)	(9		)	—			—			(17		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(100		)	78			(2		)	—			(24		)
Interest expense:
External, net of interest capitalized	11			5			65			—			81
Affiliated companies, net of interest income	(8		)	8			—			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(103		)	65			(67		)	—			(105		)
Income tax expense (benefit)	(18		)	30			(12		)	—			—
Equity in net income (loss) from affiliated companies	21			—			62			(83		)	—
Net income (loss)	(64		)	35			7			(83		)	(105		)
Less: Net income (loss) attributable to noncontrolling interests	—			12			—			—			12
Net income (loss) attributable to Tenneco Inc.	$	(64	)	$	23		$	7		$	(83	)	$	(117	)
Comprehensive income (loss) attributable to Tenneco Inc.	$	(68	)	$	61		$	7		$	(83	)	$	(83	)

46

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,032		$	1,549		$	—		$	—		$	2,581
Affiliated companies	123			156			—			(279		)	—
	1,155			1,705			—			(279		)	2,581
Costs and expenses
Cost of sales	1,007			1,465			—			(279		)	2,193
Restructuring charges and asset impairments	1			11			—			—			12
Goodwill impairment charge	—			—			—			—			—
Engineering, research, and development	18			22			—			—			40
Selling, general, and administrative	73			78			—			—			151
Depreciation and amortization	23			37			—			—			60
	1,122			1,613			—			(279		)	2,456
Other expense (income)
Non-service postretirement benefit costs	3			—			—			—			3
Other (income) expense, net	9			(9		)	—			—			—
	12			(9		)	—			—			3
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	21			101			—			—			122
Interest expense:
External, net of interest capitalized	10			3			10			—			23
Affiliated companies, net of interest income	(3		)	—			3			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	14			98			(13		)	—			99
Income tax (benefit) expense	1			24			—			—			25
Equity in net income (loss) from affiliated companies	48			—			73			(121		)	—
Net income (loss)	61			74			60			(121		)	74
Less: Net income (loss) attributable to noncontrolling interests	—			14			—			—			14
Net income (loss) attributable to Tenneco Inc.	$	61		$	60		$	60		$	(121	)	$	60
Comprehensive income (loss) attributable to Tenneco Inc.	$	64		$	79		$	60		$	(121	)	$	82

47

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

BALANCE SHEETS

	March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	143		$	210		$	4		$	—		$	357
Restricted cash	—			6			—			—			6
Receivables, net	1,037			1,806			—			—			2,843
Inventories, net	964			1,302			—			—			2,266
Prepayments and other current assets	217			311			27			—			555
Total current assets	2,361			3,635			31			—			6,027
Property, plant and equipment, net	1,149			2,361			9			—			3,519
Investment in affiliated companies	1,544			—			4,907			(6,451		)	—
Long-term receivables, net	8			1			—			—			9
Goodwill	462			329			—			—			791
Intangibles, net	1,000			685			2			—			1,687
Investments in nonconsolidated affiliates	43			485			—			—			528
Deferred income taxes	252			208			11			—			471
Other assets	205			379			—			—			584
Total assets	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	14		$	130		$	15		$	—		$	159
Accounts payable	996			1,863			2			—			2,861
Accrued compensation and employee benefits	75			288			—			—			363
Accrued income taxes	(3		)	33			—			—			30
Accrued expenses and other current liabilities	395			550			49			—			994
Total current liabilities	1,477			2,864			66			—			4,407
Long-term debt	133			29			5,255			—			5,417
Intercompany due to (due from)	2,072			(64		)	(2,008		)	—			—
Deferred income taxes	—			110			—			—			110
Pension, postretirement benefits and other liabilities	881			802			19			—			1,702
Commitments and contingencies
Total liabilities	4,563			3,741			3,332			—			11,636
Redeemable noncontrolling interests	—			153			—			—			153
Tenneco Inc. shareholders’ equity	2,461			3,990			1,628			(6,451		)	1,628
Noncontrolling interests	—			199			—			—			199
Total equity	2,461			4,189			1,628			(6,451		)	1,827
Total liabilities, redeemable noncontrolling interests and equity	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616

48

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

BALANCE SHEETS

	December 31, 2018
	Guarantor Subsidiaries		Nonguarantor Subsidiaries				Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	329	$	364			$	4		$	—		$	697
Restricted cash	—		5				—			—			5
Receivables, net	943		1,629				—			—			2,572
Inventories, net	958		1,287				—			—			2,245
Prepayments and other current assets	254		311				25			—			590
Total current assets	2,484		3,596				29			—			6,109
Property, plant and equipment, net	1,131		2,361				9			—			3,501
Investment in affiliated companies	1,421		—				4,856			(6,277		)	—
Long-term receivables, net	9		1				—			—			10
Goodwill	263		383				223			—			869
Intangibles, net	1,007		510				2			—			1,519
Investments in nonconsolidated affiliates	43		501				—			—			544
Deferred income taxes	255		200				12			—			467
Other assets	48		180				—			(15		)	213
Total assets	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	1	$	152			$	—		$	—		$	153
Accounts payable	858		1,894				7			—			2,759
Accrued compensation and employee benefits	88		255				—			—			343
Accrued income taxes	—		52				27			(15		)	64
Accrued expenses and other current liabilities	436		488				77			—			1,001
Total current liabilities	1,383		2,841			—	111			(15		)	4,320
Long-term debt	3		32				5,305			—			5,340
Intercompany due to (due from)	2,726		(215		)		(2,511		)	—			—
Deferred income taxes	—		88				—			—			88
Postretirement benefits and other liabilities	225		705				500			—			1,430
Commitments and contingencies
Total liabilities	4,337		3,451				3,405			(15		)	11,178
Redeemable noncontrolling interests	—		138				—			—			138
Tenneco Inc. shareholders’ equity	2,324		3,953				1,726			(6,277		)	1,726
Noncontrolling interests	—		190				—			—			190
Total equity	2,324		4,143				1,726			(6,277		)	1,916
Total liabilities, redeemable noncontrolling interests and equity	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232

49

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(29	)	$	(75	)	$	(46	)	$	—		$	(150	)
Investing Activities
Acquisition of business, net of cash acquired	—			(158		)	—			—		—	(158		)
Proceeds from sale of assets	—			1			—			—			1
Cash payments for property, plant and equipment	(60		)	(150		)	—			—			(210		)
Net proceeds from sale of business	6			16			—			—			22
Other	2			—			—			—			2
Proceeds from deferred purchase price of factored receivables	—			60			—			—			60
Net cash used in investing activities	(52		)	(231		)	—			—			(283		)
Financing Activities
Cash dividends	—			—			(20		)	—			(20		)
Repayment of term loans and notes	(1		)	(37		)	(26		)	—			(64		)
Proceeds from term loans and notes	—			28			—			—			28
Issuance (repurchase) of common shares	—			—			(2		)	—			(2		)
Decrease in bank overdrafts	—			(1		)	—			—			(1		)
Borrowings on revolving lines of credit	1,856			54			209			—			2,119
Payments on revolving lines of credit	(1,724		)	(63		)	(194		)	—			(1,981		)
Other	—			(3		)	—			—			(3		)
Intercompany dividends and net (decrease) increase in intercompany obligations	(236		)	157			79			—			—
Distribution to noncontrolling interests partners	—			(1		)	—			—			(1		)
Net cash (used in) provided by financing activities	(105		)	134			46			—			75
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			19			—			—			19
Increase (decrease) in cash, cash equivalents and restricted cash	(186		)	(153		)	—			—			(339		)
Cash, cash equivalents and restricted cash, January 1	329			369			4			—			702
Cash, cash equivalents and restricted cash, March 31	$	143		$	216		$	4		$	—		$	363

50

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS --(Continued)

(Unaudited)

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(27	)	$	32		$	(5	)	$	—	$	—
Investing Activities
Proceeds from sale of assets	—			2			—			—		2
Cash payments for property, plant and equipment	(40		)	(49		)	—			—		(89		)
Proceeds from deferred purchase price of factored receivables	—			34			—			—		34
Net cash used in investing activities	(40		)	(13		)	—			—		(53		)
Financing Activities
Proceeds from term loans and notes	—			6			—			—		6
Repayments of term loans and notes	(5		)	(8		)	—			—		(13		)
Borrowings on revolving lines of credit	1,093			8			166			—		1,267
Payments on revolving lines of credit	(1,026		)	(12		)	(151		)	—		(1,189		)
Issuance (repurchase) of common shares	—			—			(2		)	—		(2		)
Cash dividends	—			—			(13		)	—		(13		)
Net increase (decrease) in bank overdrafts	—			(4		)	—			—		(4		)
Other	—			(30		)	—			—		(30		)
Intercompany dividends and net (decrease) increase in intercompany obligations	3			(7		)	4			—		—
Net cash (used in) provided by financing activities	65			(47		)	4			—		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			3			—			—		3
Increase (decrease) in cash, cash equivalents and restricted cash	(2		)	(25		)	(1		)	—		(28		)
Cash, cash equivalents and restricted cash, January 1	7			311			—			—		318
Cash, cash equivalents and restricted cash, March 31	$	5		$	286		$	(1	)	$	—	$	290

51

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

References herein to "Tenneco", the "Company", "we", "us", and "our" refer to Tenneco Inc. and its consolidated subsidiaries. Unless otherwise stated, all comparisons of March 31, 2019 financial results are to March 31, 2018 financial results.

The following Management's Discussion and Analysis of financial condition and results of operations ("MD&A") should be read in conjunction with the condensed consolidated financial statements and related notes included in Item 1 of this quarterly report on Form 10-Q and the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission ("SEC") on March 18, 2019 (the "2018 Form 10-K").

EXECUTIVE OVERVIEW

Our Business

We are one of the world's leading manufacturers of clean air, powertrain, and ride performance products and systems for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers. Both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, are served globally through leading brands, including Monroe^®, Champion^®, Öhlins^®, MOOG^®, Walker^®, Fel-Pro^®, Wagner^®, Ferodo^®, Rancho^®, Thrush^®, National^®, and Sealed Power^®, among others.

Factors that continue to be critical to our success include winning new business awards, managing our overall global manufacturing footprint to ensure proper placement and workforce levels in line with business needs, maintaining competitive wages and benefits, maximizing efficiencies in manufacturing processes, and reducing overall costs. In addition, our ability to adapt to key industry trends, such as a shift in consumer preferences to other vehicles in response to higher fuel costs and other economic and social factors, increasing technologically sophisticated content, changing aftermarket distribution channels, increasing environmental standards, and extended product life of automotive parts, also play a critical role in our success. Other factors critical to our success include adjusting to economic challenges such as increases in the cost of raw materials and our ability to successfully reduce the effect of any such cost increases through material substitutions, cost reduction initiatives, and other methods.

Öhlins Intressenter AB Acquisition

On January 10, 2019, we completed the acquisition of a 90.5% ownership interest in Öhlins Intressenter AB (the "Öhlins Acquisition"), a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries. The purchase price was $162 million. See Note 3, Acquisitions and Divestitures of our condensed consolidated financial statements for additional information.

Federal-Mogul Acquisition

On October 1, 2018, we completed the acquisition of a 100% ownership interest in Federal-Mogul LLC (the "Federal-Mogul Acquisition", and together with the Öhlins Acquisition, the "Acquisitions"). See Note 3, Acquisitions and Divestitures of our condensed consolidated financial statements for additional information.

Spin-Off Transaction and Change in Reportable Segments

Following the closing of the Federal-Mogul Acquisition, we agreed to use our reasonable best efforts to pursue the separation of the combined company. As such, we expect to separate our businesses to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). We have revised our timing target for the separation of the business and now expect the DRiV spinoff to occur mid-2020. In the first quarter of 2019, we began to manage and report our DRiV businesses through two new operating segments as compared to the three operating segments we had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect our current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate."

See Note 17, Segment Information of our condensed consolidated financial statements for additional information.

52

Financial Results for the Three Months Ended March 31, 2019

Consolidated revenues were $4,484 million, an increase of $1,903 million, or 74%, for the three months ended March 31, 2019. The Acquisitions increased revenues by $1,935 million, or 75%. The effect of organic growth from higher sales volume and mix contributed to an increase of $89 million and there was a favorable effect of other of $6 million. This was substantially offset by the unfavorable effects of foreign currency exchange of $127 million.

Cost of sales was $3,864 million, an increase of $1,671 million, or 76%, for the three months ended March 31, 2019. The Acquisitions increased cost of sales by $1,633 million, or 74%. The remaining increase in cost of sales was primarily driven by $92 million in incremental costs related to higher sales volume and mix, the unfavorable effects of materials sourcing of $7 million, and an increase in other costs of $40 million, which was partially offset by a favorable effect of foreign currency exchange of $101 million.

Net income decreased by $179 million to a net loss of $105 million for the three months ended March 31, 2019 as compared to $74 million of net income for the three months ended March 31, 2018. The decrease was primarily driven by:

• an increase in selling, general, and administrative costs of $27 million related to acquisition and spin related costs and an increase of $8 million in cost reduction initiatives, partially offset by a favorable effect of foreign currency exchange of $7 million;

• an increase in restructuring charges of $12 million related to higher costs for facility closure and other costs;

• a goodwill impairment charge of $60 million as a result of our change in operating segments; and

• an increase in interest expense and other financing charges of $58 million.

These unfavorable effects were partially offset by:

• an increase in equity earnings in nonconsolidated affiliates of $16 million, which was the result of the Federal-Mogul Acquisition, and

• a reduction in income tax expense of $25 million.

Recent Trends and Market Conditions

There is inherent uncertainty in the continuation of the trends discussed below. In addition, there may be other factors or trends that can have an effect on our business. Our business and operating results are affected by the relative strength of:

General economic conditions

Our OE business is directly related to automotive vehicle production by our customers. Automotive production levels depend on a number of factors, including global and regional economic conditions. Demand for aftermarket products is driven by three primary factors including: the number of vehicles in operation; the average age of vehicles; and vehicle usage trends (primarily distance traveled).

Global light vehicle production levels (According to IHS Markit, April, 2019)

Global light vehicle production decreased by 7% for the first three months of 2019. Production levels were down in the major markets in which we operate. European and South American light vehicle production decreased by 5% in each region. North American production decreased by 2%, while China decreased by 13% and India decreased by 3%.

Global commercial vehicle production decreased by 3% for the three months ending March 31, 2019. For the major markets in which we operate, North America, Europe and Brazil experienced increases in commercial vehicle production, while production in China and India decreased. Commercial vehicle production in Brazil rose 13%. European commercial vehicle production increased 5% and North American production was up 4%. China posted a decrease the first three months of 2019 of 9%. There was a 12% decrease in commercial vehicle production in India.

Part replacement trends

The strength of our aftermarket business is influenced by several key drivers. These include the vehicle population (or "parc"), average vehicle age, fuel prices, and vehicle distance traveled. The vehicle parc is estimated to have expanded in most major markets, including the U.S., China, and Germany.  Average vehicle ages also increased, despite growth in new vehicle sales, in most regions. Vehicle distance traveled varies by region and is sensitive to several factors, including fuel prices, and transportation alternatives.

Geopolitical risk

We conduct business globally, which subjects us to numerous risks and uncertainties including, without limitation, “Brexit” implications, joint ventures in unstable regions, and substantial new tariffs. For example, we have operations in the U.K. which may be materially affected by the U.K.'s referendum to leave the European Union, which has created uncertainty in both the U.K. and Europe. We also have an interest in a Turkish joint venture, which may be affected by recent turmoil in that region. In

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addition, we do business in Mexico and China where there could be potential changes in trade agreements (e.g., the North American Free Trade Agreement) and new or changed tariffs in the U.S. (such as those relating to China).

Foreign currencies

Given the global nature of our operations, we are subject to fluctuations in foreign exchanges rates and there has been significant volatility in foreign currency rates.

Strategy

The key components of our strategy are as follows:

Continue to optimize our operations by aggressively pursuing cost competitiveness in all business segments and continuing to drive productivity in existing operations

We operate within competitive industries and our management teams continuously analyze opportunities to reduce costs and improve productivity. We assess individual opportunities to execute our strategy based upon estimated sales and margin growth, cost reduction potential, internal investment returns, and other criteria, to make investment decisions on a case-by-case basis.

We will continue to focus on operational excellence by optimizing our manufacturing footprint, further developing our engineering capabilities, managing the complexities of our global supply chain to realize purchasing economies of scale while satisfying diverse and global requirements, and supporting our businesses with robust information technology systems. We will make investments in our operations and infrastructure as required to achieve our strategic goals.

We seek to continue optimizing our performance through enhanced efficiencies to meet the world-class delivery performance our customers increasingly require. We have made investments in our global distribution network, through our new multi-product distribution centers, through the implementation of automated picking technology, and a more efficient replenishment system with the objective of improving inventory visibility and availability, and lowering costs.

Execute a Spin-Off Transaction in mid-2020

We completed the Federal-Mogul Acquisition on October 1, 2018. We will continue to seek synergies to optimize the two independent companies in preparation for the spin. This optimization should present additional opportunities for cost reduction, increased profitability, and cash flow.

Assess focused acquisition and investment opportunities that provide product line expansion, technological advancements, geographic positioning, penetration of emerging markets and market share growth

We completed the Öhlins Acquisition, a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries. We intend to continue to explore strategic alliances, joint ventures, acquisitions and other transactions that complement, expand or enhance our existing products, technology, systems development efforts, customer base and/or global presence.

Adapt cost structure to economic realities

We aggressively respond to difficult economic environments, executing comprehensive restructuring and cost-reduction initiatives, and realigning our operations to any resulting reductions in production levels and replacement demand. Suppliers must also continually identify and implement product innovation and cost reduction activities to fund customer annual price concession expectations to retain current business and be competitively positioned for future new business opportunities.

Original Equipment Specific Strategies

We strive to strengthen our global position by designing, manufacturing, delivering and marketing technologically innovative products and systems for OE manufacturers. The key components of our OE strategy are as follows:

Maintain technological leadership to drive further growth from secular market trends

OE manufacturers are responding to changing end customer trends and preferences alongside their own challenging cost structures by reducing design and production complexities, and investing in advanced technologies that enable vehicle electrification and autonomy. We anticipate OE suppliers with high technology capabilities in vehicle system integration will be able to enable a more seamless transition to next-generation electric vehicles and become preferred suppliers to OE manufacturers. In order to maintain our strong market positions, we are focused on meeting these changing requirements and keeping up with new OE trends. In addition, our suite of solutions represents an opportunity to drive greater partnership with OE manufacturers, capturing growth with higher value content per vehicle.

Penetrate adjacent market segments

We seek to penetrate a variety of adjacent sales opportunities and achieve growth in higher-margin businesses by leveraging our

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technology and engineering leadership in powertrain, clean air, ride performance and aftermarket into adjacent sales opportunities for heavy-duty trucks, buses, agricultural equipment, construction machinery and other vehicles in other regions around the world.

Aftermarket Specific Strategies

We expect the demand for replacement parts to increase steadily as a result of the anticipated significant increase in vehicles in operation (“VIO”) through 2040, the increase in the average age of VIO, and the increase in the average miles driven per year. The characteristics of aftermarket sales and distribution are defined regionally, which require regionally focused strategies to address the key success factors of our customers. The key components of our aftermarket strategy are described below:

Leverage the strength of our global aftermarket leading brands positions, product portfolio and range, marketing and selling expertise, and distribution and logistics capabilities

Our aftermarket business has a portfolio of leading brands with strong product offerings. We will build upon our brand strengths and grow our global aftermarket business by leveraging our broad product coverage and extensive distribution network. We intend to capitalize on aftermarket trends and expand in established markets (North America, Europe, Australia) as well as high-growth regions (China, South America, India, Southeast and Northeast Asia). Important focus areas are enhancing our presence in high-growth markets; leveraging our portfolio and strong presence in suspension to expand our business globally; and diversifying outside of chassis with our sealing, electronic and underhood products, as well as other components.

Continue to strengthen our aftermarket capabilities and product offerings in mature markets, including North America and Europe

The scale of our aftermarket business allows for strong distribution channels that significantly enhance our go-to-market capabilities across mature markets in North America and Europe. The North America and Europe go-to-market capabilities will be defined by positioning our distribution and installer partners for success. We believe this will require maintaining a vast catalog of products to provide the ability to address customer requirements quickly and easily. This requires an understanding of the composition of the car parc within the regions including wear patterns, typical replacement rates based on weather, road quality, and average miles driven annually, which differ significantly by region.

We have launched a series of ‘Tech First’ initiatives to provide online, on demand, and onsite technical training and support to vehicle repair technicians who use and install our products in North America, Europe and China and plan to expand into South America. This initiative included Garage Gurus™, a network of technical support centers that provide some of the most comprehensive training programs in the industry that educate our partners and customers with emerging vehicle technologies and vehicle repair operational skills. We believe it is key to our strategy to provide aftermarket parts that are simple to install and to make sure our customers have the resources to know how to install these parts properly.

Increase aftermarket position in high-growth regions, notably in Asia Pacific

The Asia Pacific region, particularly the high-growth markets of China and India, presents a significant opportunity for us to expand our business. We have made investments in distribution and in our sales force in both China and the rest of Asia to help drive growth in this increasingly important region, where the aftermarket industry is fragmented with a large number of small distributors and installers. Distribution in smaller volumes will require us to have a hub and spoke warehousing approach to compete on the basis of optimal “Order to Delivery” timeliness while maintaining a broad range of products. Additionally, buying online is the preferred purchase method for many smaller distribution and installer partners. The sophistication of the existing online marketplaces in Asia Pacific will require us to develop adaptive and flexible omnichannel tools in order to compete effectively.

Critical Accounting Estimates

Refer to our Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 18, 2019. Also refer to Note 6, Goodwill and Other Intangible Assets for additional discussion on our goodwill.

Non-GAAP Measures

As a result of the Federal-Mogul Acquisition, we changed our key performance measure. We now utilize EBITDA including noncontrolling interests as the key performance measure in our financial and operational decision making processes, for internal reporting, and for planning and forecasting purposes to effectively allocate resources. EBITDA including noncontrolling interests is defined as earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization. Prior period results have been conformed to reflect the change in our key performance measure. EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with US GAAP and should not be considered an alternative to net income. EBITDA including noncontrolling interests, as determined and measured by us, should not be compared to similarly titled measures reported by other companies.

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RESULTS OF OPERATIONS

For the Three Months Ended March 31, 2019 compared to the Three Months Ended March 31, 2018

Consolidated Results of Operations

The following table presents our condensed consolidated results of operations and reflects the revisions discussed in Item 1 —

						2019 vs. 2018
	Three Months Ended March 31					Increase / (Decrease)
	2019			2018		$ Change			% Change (1)
	(millions, except percent, share, and per share amounts)
Revenues
Net sales and operating revenues	$	4,484		$	2,581	$	1,903		74	%
Costs and expenses
Cost of sales	3,864			2,193		1,671			76	%
Selling, general, and administrative	316			151		165			109	%
Depreciation and amortization	169			60		109			182	%
Engineering, research, and development	92			40		52			130	%
Restructuring charges and asset impairments	24			12		12			100	%
Goodwill impairment charge	60			—		60			n/m
	4,525			2,456		2,069			84	%
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	2			3		(1		)	(33	)%
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(16		)	—		(16		)	n/m
Other expense (income), net	(3		)	—		(3		)	n/m
	(17		)	3		(20		)	n/m
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122		(146		)	(120	)%
Interest expense	81			23		58			252	%
Earnings (loss) before income taxes and noncontrolling interests	(105		)	99		(204		)	(206	)%
Income tax expense (benefit)	—			25		(25		)	(100	)%
Net income (loss)	(105		)	74		(179		)	(242	)%
Less: Net income (loss) attributable to noncontrolling interests	12			14		(2		)	(14	)%
Net income (loss) attributable to Tenneco Inc.	$	(117	)	$	60	$	(177	)	(295	)%
Earnings (loss) per share
Basic earnings (loss) per share:
Earnings (loss) per share	$	(1.44	)	$	1.17	$	(2.61	)
Weighted average shares outstanding	80,874,637			51,211,643		29,662,994
Diluted earnings (loss) per share:
Earnings (loss) per share	$	(1.44	)	$	1.17	$	(2.61	)
Weighted average shares outstanding	80,874,637			51,501,643		29,372,994

(1) Percentages above denoted as "n/m" are not meaningful to present in the table.

Revenues

Revenues increased by $1,903 million, or 74%, as compared to the three months ended March 31, 2018. The Acquisitions increased revenues by $1,935 million, or 75%. The effect of organic growth from higher sales volume and mix contributed to an increase of $89 million and there was a favorable effect of other of $6 million. This was substantially offset by the unfavorable effects of foreign currency exchange of $127 million.

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The table below reflects our consolidated revenues for three months ended March 31, 2019 and 2018 (amounts in millions):

Three-months ended March 31, 2018	$	2,581
Acquisitions	1,935
Drivers in the change of organic revenues:
Volume and mix	89
Currency exchange rates	(127		)
Others	6
Three-months ended March 31, 2019	$	4,484

Cost of Sales

Cost of sales increased by $1,671 million, or 76%, as compared to the three months ended March 31, 2018. The Acquisitions increased cost of sales by $1,633 million, or 74%. The remaining increase in cost of sales was primarily driven by $92 million in incremental costs related to higher sales volume and mix, the unfavorable effects of materials sourcing of $7 million, and an increase in other costs of $40 million, which was partially offset by a favorable effect of foreign currency exchange of $101 million.

The table below reflects our consolidated cost of sales for three months ended March 31, 2019 and 2018 (amounts in millions):

Three-months ended March 31, 2018	$	2,193
Acquisitions	1,633
Drivers in the change of organic cost of sales:
Volume and mix	92
Material	7
Currency exchange rates	(101		)
Other costs	40
Three-months ended March 31, 2019	$	3,864

Selling, general and administrative (SG&A)

SG&A increased by $165 million as compared to the three months ended March 31, 2018. The increase was primarily due to the effect of the Acquisitions of $148 million. Excluding the Acquisitions, the increase was attributable to a $27 million increase in acquisition and spin related costs and an increase of $8 million in cost reduction initiatives, partially offset by a favorable effect of foreign currency exchange of $7 million.

Depreciation and amortization

Depreciation and amortization increased by $109 million as compared to the three months ended March 31, 2018. The increase was due primarily to the effect of the Acquisitions.

Engineering, research, and development

Engineering, research, and development increased by $52 million as compared to the three months ended March 31, 2018. The increase was due primarily to the effect of the Acquisitions.

Restructuring Charges and Asset Impairments

Restructuring charges increased by $12 million as compared to the three months ended March 31, 2018. The increase is primarily attributable to higher costs related to facility closure and other costs incurred during the three months ended March 31, 2019.

Goodwill impairment charge

During the three months ended March 31, 2019, there was reorganization of reporting units within the Aftermarket, Ride Performance, and Motorparts segments, which resulted in a goodwill impairment of $60 million, all of which was within the Ride Performance segment.

Non-service pension and postretirement benefit costs (credits)

Non-service pension and postretirement benefit costs (credits) decreased $1 million for the three months ended March 31, 2019 as compared to the three months ended March 31, 2018. This is primarily attributable to the recognition of prior service credits during the three months ended March 31, 2019, as a result of the plan amendment recognized at December 31, 2018 for one of our postretirement medical benefits plan.

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Equity in (earnings) losses of nonconsolidated affiliates, net of tax

Equity in (earnings) losses of nonconsolidated affiliates, net of tax increased by $16 million as compared to the three months ended March 31, 2018. The increase was due to the Federal-Mogul Acquisition.

Other expense (income), net

Other expense (income), net increased by $3 million as compared to the three months ended March 31, 2018.

Interest expense

Interest expense increased by $58 million as compared to the three months ended March 31, 2018. The increase was primarily attributable to higher interest expense pertaining to the five-year $1,700 million term loan A facility and the seven-year $1,700 million term loan B facility that were entered into in connection with the Federal-Mogul Acquisition, and interest expense on the debt assumed in the Federal-Mogul Acquisition.

Interest expense includes financing charges on sales of accounts receivable, which increased by $5 million as compared to the three months ended March 31, 2018. The increase is primarily attributable to the Federal-Mogul Acquisition.

Income Tax expense (benefit)

Income tax expense decreased by $25 million as compared to the three months ended March 31, 2018. The decrease was primarily attributable to a decrease in pre-tax earnings.

Net Income (Loss)

Net income decreased by $179 million to a net loss of $105 million for the three months ended March 31, 2019 as compared to $74 million of net income for the three months ended March 31, 2018, as result of the aforementioned items.

Earnings (loss) before Interest Expense, Income Taxes, Noncontrolling Interests and Depreciation and Amortization (“EBITDA including noncontrolling interests”)

The following table presents the reconciliation from net income (loss) attributable to Tenneco Inc. to EBITDA including noncontrolling interests for the three months ended March 31, 2019 and 2018 (amounts in millions):

	Three Months Ended March 31,
	2019			2018
Total EBITDA including noncontrolling interests	$	145		$	182
Depreciation and amortization	169			60
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122
Less: Interest expense	81			23
Less: Income tax expense (benefit)	—			25
Net income (loss)	(105		)	74
Net Income (loss) attributable to noncontrolling interests	12			14
Net income (loss) attributable to Tenneco Inc.	$	(117	)	$	60

EBITDA including noncontrolling interests decreased by $37 million as compared to the three months ended March 31, 2018, as a result of the aforementioned items. See "Non-GAAP Measures" for further discussion on the use of non-GAAP measures.

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Segment Results of Operations

Overview of Net Sales and Operating Revenues

Our Clean Air segment has substrate sales. Substrates are porous ceramic filters coated with a catalyst - typically, precious metals such as platinum, palladium and rhodium. We do not manufacture substrates, they are supplied to us by Tier 2 suppliers generally as directed by our OE customers. We generally earn a small margin on these components of the system. These substrate components have been increasing as a percentage of our revenue as the need for more sophisticated emission control solutions increases to meet more stringent environmental regulations, and as we capture more diesel aftertreatment business. While these substrates dilute our gross margin percentage, they are a necessary component of an emission control system.

Our value-add content in an emission control system includes designing the system to meet environmental regulations through integration of the substrates into the system, maximizing use of thermal energy to heat up the catalyst quickly, efficiently managing airflow to reduce back pressure as the exhaust stream moves past the catalyst, managing the expansion and contraction of the emission control system components due to temperature extremes experienced by an emission control system, using advanced acoustic engineering tools to design the desired exhaust sound, minimizing the opportunity for the fragile components of the substrate to be damaged when we integrate it into the emission control system and reducing unwanted noise, vibration and harshness transmitted through the emission control system.

We disclose substrate sales amounts because we believe investors utilize this information to understand the effect of this portion of our revenues on our overall business and because it removes the effect of potentially volatile precious metals pricing from our revenues. While our OE customers generally assume the risk of precious metals pricing volatility, it effects our reported revenues.

The table below reflects our segment revenues for three months ended March 31, 2019 and 2018 (amounts in millions):

	Segment Revenue
	New Tenneco									DRiV
	Clean Air					Powertrain				Ride Performance					Motorparts					Total Revenues
Three months ended March 31,	2019			2018		2019		2018		2019			2018		2019			2018		2019			2018
Revenues	$	1,779		$	1,756	$	1,175	$	—	$	733		$	513	$	797		$	312	$	4,484		$	2,581
Value-add revenues	1,073			1,104		1,175		—		733			513		797			312		$	3,778		$	1,929
Currency effect on value-add revenue	(51		)	—		—		—		(31		)	—		(18		)	—		(100		)	—
Value-add revenue excluding currency	$	1,124		$	1,104	$	1,175	$	—	$	764		$	513	$	815		$	312	$	3,878		$	1,929
Substrate sales	$	706		$	652															$	706		$	652
Effect of Acquisitions						$	1,175			$	244				$	516				$	1,935

Segment Revenue

Clean Air revenue increased $23 million, or 1%, as compared to the three months ended March 31, 2018. Higher light vehicle sales and commercial truck revenues contributed $104 million increase, while foreign currency exchange had a $78 million unfavorable effect on Clean Air revenues.

As a result of the Federal-Mogul Acquisition, Powertrain revenue was $1,175 million in 2019.

Ride Performance revenue increased $220 million, or 43%, as compared to the three months ended March 31, 2018. The Acquisitions increased revenue by $244 million. Excluding the Acquisitions, revenue was down $24 million which is primarily attributable to the unfavorable effect of foreign currency exchange of $31 million, partially offset by higher commercial truck sales and new platform revenue for a total of increase of $7 million.

Motorparts revenue increased $485 million as compared to the three months ended March 31, 2018. The Federal-Mogul Acquisition increased revenue by $516 million. Excluding the Federal-Mogul Acquisition, revenue was down $31 million which was primarily attributable to lower volume, unfavorable mix and favorable pricing for a net unfavorable effect of $13 million, plus the unfavorable effect of foreign currency exchange of $18 million.

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Earnings before Interest Expense, Income Taxes, Noncontrolling Interests and Depreciation and Amortization (“EBITDA including noncontrolling interests”)

The following table presents EBITDA including noncontrolling interests by segment for the three months ended March 31, 2019 and 2018 (amounts in millions):

	Three Months Ended March 31,
	2019			2018			2019 vs 2018
EBITDA including noncontrolling interests by Segments:
Clean Air	$	131		$	157		$	(26	)
Powertrain	113			—			113
Ride Performance	(45		)	24			(69		)
Motorparts	45			45			—
Corporate	(99		)	(44		)	(55		)
Total EBITDA including noncontrolling interests (1)	$	145		$	182		$	(37	)

⁽¹⁾ See "Non-GAAP Measures" for further discussion on the use of non-GAAP measures.

Clean Air EBITDA including noncontrolling interests decreased $26 million as compared to the three months ended March 31, 2018. The decrease is primarily attributable to unfavorable performance of $12 million, unfavorable volume/mix and pricing of $11 million, additional restructuring of $5 million and $4 million of incremental cost due to process harmonization, offset by favorable material costs of $7 million.

As a result of the Federal-Mogul Acquisition, Powertrain EBITDA including noncontrolling interests was $113 million.

Ride Performance EBITDA including noncontrolling interests decreased $69 million as compared to the three months ended March 31, 2018. The Acquisitions contributed $12 million increase in EBITDA, thus resulting in a total decrease of $81 million without Acquisitions. The decrease is primarily attributable to goodwill impairment charge of $60 million taken in the three months ended March 31, 2019 as a result of an operating segment reorganization, unfavorable performance of $11 million, unfavorable material costs of $4 million, higher selling, general, administrative and engineering costs of $4 million, and unfavorable effect of foreign currency of $6 million, offset by favorable volume/mix and pricing of $6 million.

Motorparts EBITDA including noncontrolling interests was flat as compared to the three months ended March 31, 2018. The Federal-Mogul Acquisition contributed $63 million of EBITDA including noncontrolling interests to the first quarter 2019 results. The favorable impact to EBITDA due to the acquisition was offset primarily by purchase accounting adjustments of $36 million, unfavorable performance of $14 million, unfavorable volume and mix of $9 million, and restructuring charges of $4 million.

Corporate EBITDA including noncontrolling interests decreased $55 million as compared to the three months ended March 31, 2018. The decrease is primarily attributable to higher acquisition and spin costs of $27 million, $8 million of cost reduction initiatives, and $20 million higher corporate costs post Federal-Mogul Acquisition.

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The EBITDA including noncontrolling interests results shown in the preceding table include the following items, certain of which may have an effect on the comparability of EBITDA including noncontrolling interests results between periods (amounts in millions):

	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total		Corporate		Reclass & Elims		Total
Three Months Ended March 31, 2019
Costs to achieve synergies (1)	$	1	$	—	$	3	$	3	$	7	$	—	$	—	$	7
Restructuring and related expenses	4		1		10		1		16		1		—		17
Cost reduction initiatives (2)	—		—		—		—		—		8		—		8
Acquisition and expected spin costs (3)	—		—		—		—		—		40		—		40
Process harmonization(4)	4		—		—		5		9		—		—		9
Purchase accounting adjustments (5)	—		2		3		36		41		—		—		41
Goodwill impairment charge (6)	—		—		60		—		60		—		—		60
Total adjustments	$	9	$	3	$	76	$	45	$	133	$	49	$	—	$	182

	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total		Corporate		Reclass & Elims		Total
Three Months Ended March 31, 2018
Restructuring and related expenses	$	1	$	—	$	9	$	2	$	12	$	—	$	—	$	12
Warranty charge (7)	—		—		5		—		5		—		—		5
Acquisition and expected spin costs (3)	—		—		—		—		—		13		—		13
Total adjustments	$	1	$	—	$	14	$	2	$	17	$	13	$	—	$	30

(1) Cost to achieve synergies related to the Acquisitions.

(2) Costs related to cost reduction initiatives.

(3) Costs related to the Acquisitions and expected spin.

(4) Change due to process harmonization.

(5) This primarily relates to a non-cash charge to cost of goods sold for the amortization of the inventory fair value step-up recorded as part of the Federal-Mogul Acquisition.

(6) Post segment reorganization impairment of goodwill.

(7) Charge related to warranty. Although Tenneco regularly incurs warranty costs, this specific charge is of an unusual nature in the period incurred.

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Liquidity and Capital Resources

In the first quarter of 2019, we largely discontinued a historical working capital management practice of delaying certain supplier payments at quarter end and instead, we will continue to seek more advantageous payment terms from suppliers consistent with regional industry norms or to match our customers’ payment practices. These actions partially contributed to a decline in cash generated from operations in the first quarter of 2019 as compared to the first quarter of 2018. Following the Federal-Mogul Acquisition, we continue to harmonize our business’ practices for working capital management and customer and supplier relationships. As we continue to complete this harmonization in future periods, working capital levels may be affected by actions taken by our customers or suppliers that negatively affect our cash flows at quarter end. Notwithstanding the foregoing, we do not expect that any such future impact would be material to our annual consolidated financial position, results of operations or liquidity.

Liquidity and Financing Arrangements

The table below shows our borrowing capacity on credit facilities as of March 31, 2019 (amounts in billions):

	Credit Facilities as of March 31, 2019
	Term	Available(b)
Tenneco Inc. revolving credit facility (a)	2023	$	1.3
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2018-2028	0.1
		$	1.4

^(a)  We are required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.

^(b)  Letters of credit reduce the available borrowings under the revolving credit facility, as of March 31, 2019 the revolving credit facility had $20 million in letters of credit outstanding.

In addition, we had cash and cash equivalents of $357 million and $697 million as of March 31, 2019 and December 31, 2018.

Term Loans

We entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and other lenders (the "New Credit Facility") in connection with the Federal-Mogul Acquisition. The New Credit Facility consists of $4.9 billion of total debt financing, consisting of a five-year $1.5 billion revolving credit facility, a five-year $1.7 billion term loan A facility ("Term Loan A") and a seven-year $1.7 billion term loan B facility ("Term Loan B").

Senior Notes

We have outstanding 5.375% senior unsecured notes due December 15, 2024 ("2024 Senior Notes") and 5.000% senior unsecured notes due July 15, 2026 ("2026 Senior Notes" and together with the 2024 Senior Notes, the "Senior Unsecured Notes"). We also have outstanding 5.000% euro denominated fixed rate notes which are due July 15, 2024 ("5.000% Euro Fixed Rate Notes"), 4.875% euro denominated fixed rate notes due April 15, 2022 ("4.875% Euro Fixed Rate Notes"), and floating rate notes due April 15, 2024 ("Euro Floating Rate Notes", together with the 5.000% Euro Fixed Rate Notes and the 4.875% Euro Fixed Notes, the "Senior Secured Notes").

New Credit Facility — Other Terms and Conditions— The New Credit Facility also contains two financial maintenance covenants for the revolving credit facility and the Term Loan A facility including a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility) as of the end of each fiscal quarter of not greater than 4.0 to 1 through September 30, 2019, 3.75 to 1 through September 30, 2020 and 3.5 to 1 thereafter; and a requirement to maintain a consolidated interest coverage ratio (as defined in the New Credit Facility) for any period of four consecutive fiscal quarters of not less than 2.75 to 1. 

The financial ratios required under the New Credit Facility and the actual ratios we calculated as of March 31, 2019 for the first quarter of 2019, are as follows: leverage ratio of 3.13 actual versus 4.00 (maximum) required; and interest coverage ratio of 6.00 actual versus 2.75 (minimum) required.

Senior Unsecured Notes and Senior Secured Notes — Other Terms and Conditions— The Senior Unsecured Notes and Senior Secured Notes contain covenants that will, among other things, limit our ability to create liens and enter into sale and leaseback transactions. In addition, the Senior Secured Notes and 2024 Senior Unsecured Notes also require, as a condition precedent to incurring certain types of indebtedness not otherwise permitted, our consolidated fixed charge coverage ratio, as calculated on a pro forma basis, be greater than 2.00, as well as containing restrictions on its operations, including limitations on: (i) incurring

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additional indebtedness; (ii) paying dividends; (iii) distributions and stock repurchases; (iv) investments; (v) asset sales and (vi) mergers and consolidations.

Subject to limited exceptions, all of our existing and future material domestic wholly owned subsidiaries fully and unconditionally guarantee its Senior Unsecured Notes and Senior Secured Notes on a joint and several basis. There are no significant restrictions on the ability of the subsidiaries that have guaranteed our Senior Notes to make distributions to us.

As of March 31, 2019, we were in compliance with all of its financial covenants.

Accounts Receivable Securitization and Factoring

On-Balance Sheet Arrangements — We have securitization programs for some of our accounts receivable, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at March 31, 2019 and December 31, 2018 are as follows (amounts in millions):

	March 31, 2019		December 31, 2018
Borrowings on securitization programs	$	3	$	6

Off-Balance Sheet Arrangements — We have an accounts receivable factoring program in the U.S. with a commercial bank. Under this program we sell receivables from certain of our U.S. OE customers at a rate that is favorable versus our senior credit facility. This arrangement is uncommitted and provides for cancellation by the commercial bank with no less than 30 days prior written notice. In addition, we have two other receivable factoring programs in the U.S. with commercial banks under which we sell receivables from certain of our aftermarket customers to whom we have extended payment terms. Both arrangements are uncommitted and may be terminated with 10 days prior notice for one program and 30 days prior notice for the other program.

We also have subsidiaries in several countries in Europe that are parties to accounts receivable factoring facilities. The commitments for these arrangements are generally for one year, but some may be canceled with notice 90 days prior to renewal. In some instances, the arrangement provides for cancellation by the applicable financial institution at any time upon notification. Certain of these programs in Europe include deferred purchase price arrangements.

These programs provide us with access to cash at costs that are generally favorable to alternative sources of financing, and allow us to reduce borrowings under our revolving credit agreement. If we were not able to factor receivables under these programs, our borrowings under our revolving credit agreement might increase, although this could be partially mitigated by exercising our right to shorten payment terms with certain of the aftermarket customers whose receivables we sell under the U.S. factoring programs in the event that those factoring programs are terminated.

In the U.S and Canada, we participate in supply chain financing programs with certain of our aftermarket customers to whom we have extended payment terms whereby the accounts receivable are satisfied through the early receipt of negotiable financial instruments that are payable at a later date when payments from our customers are due. We sell these financial instruments before their maturity date to various financial institutions at a discount.

If these supply chain financing programs were terminated or the financial institutions that currently participate in these programs were to reduce their purchases of drafts, our borrowings under our revolving credit agreement might increase, although this could be partially mitigated by exercising our right to shorten payment terms with certain of the aftermarket customers whose drafts we sell under the U.S. and Canadian programs in the event that those programs are terminated or otherwise reduced.

The accounts receivables under the programs described above are transferred in their entirety to the acquiring entities and are accounted for as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under these factoring programs approximates the fair value of such receivables. We are the servicer of the receivables under some of these arrangements and are responsible for performing all accounts receivable administration functions. Where we receive a fee to service and monitor these transferred accounts receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of such activities.

63

The amounts outstanding for these factoring and drafting arrangements as of March 31, 2019 and December 31, 2018 are as follows (amounts in billions):

	March 31, 2019		December 31, 2018
Accounts receivable outstanding and derecognized	$	1.1	$	1.0

The deferred purchase price receivable as of March 31, 2019 and December 31, 2018 is as follows (amounts in millions):

	March 31, 2019		December 31, 2018
Deferred purchase price receivable	$	58	$	154

Proceeds from the factoring of accounts receivable qualifying as sales are as follows (amounts in billions):

	Three months ended March 31,
	2019		2018
Proceeds from factoring qualifying as sales	$	1.2	$	0.8

Financing charges associated with the factoring of receivables are as follows (amounts in millions):

	Three months ended March 31,
	2019		2018
Financing charges on sale of receivables(a)	$	8	$	3
(a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).

Supply Chain Financing

Certain of our suppliers participate in supply chain financing programs under which they securitize their accounts receivables from us. Financial institutions participate in the supply chain financing program on an uncommitted basis and can cease purchasing receivables or drafts from our suppliers at any time. If the financial institutions did not continue to purchase receivables or drafts from our suppliers under these programs, the participating vendors may have a need to renegotiate their payment terms with us which in turn could cause our borrowings under our revolving credit facility to increase.

Capital Requirements

We believe cash flows from operations, combined with our cash on hand, subject to our proportionate share and any applicable withholding taxes upon repatriation of cash balances from our foreign operations, and available borrowing capacity described above, assuming we maintain compliance with the financial covenants and other requirements of our senior credit facility agreement, will be sufficient to meet our future capital requirements, including debt amortization, capital expenditures, pension contributions, and other operational requirements, for the following year. Our ability to meet the financial covenants depends upon a number of operational and economic factors, many of which are beyond our control. In the event we are unable to meet these financial covenants, we would consider several options to meet our cash flow needs. Such actions include additional restructuring initiatives and other cost reductions, sales of assets, reductions to working capital and capital spending, reduction or cessation of dividend program, issuance of equity and other alternatives to enhance our financial and operating position. Should we be required to implement any of these actions to meet our cash flow needs, we believe we can do so in a reasonable time frame.

64

Cash Flows

Operating Activities

Operating activities for the three months ended March 31, 2019 and 2018 were as follows (amounts in millions):

	Three Months Ended March 31
	2019			2018
Operational cash flow before changes in operating assets and liabilities	$	91		$	134
Changes in operating assets and liabilities:
Receivables	(312		)	(221		)
Inventories	11			(32		)
Payables and accrued expenses	157			185
Accrued interest and income taxes	(38		)	(4		)
Other assets and liabilities	(59		)	(62		)
Total change in operating assets and liabilities	(241		)	(134		)
Net cash provided (used) by operating activities	$	(150	)	$	—

Cash used by operations for the three months ended March 31, 2019 was $150 million, a decrease of $150 million compared to the three months ended March 31, 2018. The net decrease was primarily the result of:

• cash flows used by the operations of the Federal-Mogul Acquisition, of approximately $139 million; and

• a decrease in cash flows due to unfavorable performance and changes in working capital items of $13 million (excluding the Federal-Mogul Acquisition).

Cash flows from operations was break-even for the three months ended March 31, 2018.

Investing Activities

Investing activities for the three months ended March 31, 2019 and 2018 were as follows (amounts in millions):

	Three Months Ended March 31
	2019			2018
Proceeds from sale of assets	$	1		$	2
Net proceeds from sale of business	22			—
Cash payments for property, plant, and equipment	(210		)	(89		)
Acquisition of business, net of cash acquired	(158		)	—
Proceeds from deferred purchase price of factored receivables	60			34
Other	2			—
Net cash used by investing activities	$	(283	)	$	(53	)

Cash used by investing activities for the three months ended March 31, 2019 included cash paid for the Ohlins Acquisition of $158 million and proceeds from the sale of the wipers business of $22 million, included in our Motorparts segment. See Note 3, Acquisitions and Divestitures for additional details. In addition, there was an increase in proceeds from deferred purchase price of factored receivables of $26 million, primarily attributable to the Federal-Mogul Acquisition.

Capital expenditures were $210 million and $89 million for the three months ended March 31, 2019, and 2018. The increase is primarily attributable to the Federal-Mogul Acquisition. These capital expenditures were primarily related to investing in new facilities, upgrading existing products, continuing new product launches, and infrastructure and equipment at our facilities (including investments in software-related intangible assets) to support our manufacturing, distribution, and cost reduction efforts. For 2019, we expect our capital expenditures to be between $730 million and $780 million, depending on timing of expenditures, as we continue to invest in our strategic priorities and growth.

65

Financing Activities

Financing activities for the three months ended March 31, 2019 and 2018 were as follows (amounts in millions):

	Three Months Ended March 31
	2019			2018
Proceeds from term loans and notes	$	28		$	6
Repayments of term loans and notes	(64		)	(13		)
Borrowings on revolving lines of credit	2,119			1,267
Payments on revolving lines of credit	(1,981		)	(1,189		)
Issuance (repurchase) of common shares	(2		)	(2		)
Cash dividends	(20		)	(13		)
Net increase (decrease) in bank overdrafts	(1		)	(4		)
Other	(3		)	(30		)
Distributions to noncontrolling interest partners	(1		)	—
Net cash provided (used) by financing activities	$	75		$	22

Cash flow provided by financing activities was $75 million for the three months ended March 31, 2019. This included net repayments on term loans of $36 million, net borrowings on revolving lines of credit of $138 million, and $3 million in borrowings on accounts receivable securitization programs.

Cash flow provided by financing activities was $22 million for the three months ended March 31, 2018. This included net repayments on term loans of $7 million, net borrowings on revolving lines of credit of $78 million, and $30 million in borrowings on accounts receivable securitization programs.

Dividends on Common Stock

For the three months ended March 31, 2019, a dividend of $0.25 per share was paid, or $20 million in the aggregate. This was an increase of $7 million compared to the three months ended March 31, 2018, primarily due to the increase in shares outstanding at March 31, 2019 compared to March 31, 2018.

Environmental Matters, Legal Proceedings and Product Warranties

Note 13, Commitments and Contingencies in our condensed consolidated financial statements located in Part I Item 1 of this Form 10-Q is incorporated herein by reference.

66

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Rate Risk

We manufacture and sell our products in North America, South America, Asia, Europe, and Africa. As a result, our financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which we manufacture and sell our products. We generally try to use natural hedges within our foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, we consider managing certain aspects of our foreign currency activities and larger transactions through the use of foreign currency options or forward contracts. Principal currencies hedged have historically included the U.S. dollar, euro, British pound, Polish zloty, Mexican peso, and Canadian dollar.

Foreign Currency Forward Contracts — We enter into foreign currency forward purchase and sale contracts to mitigate our exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. In managing our foreign currency exposures, we identify and aggregates existing offsetting positions and then hedge residual exposures through third-party derivative contracts. The gain or loss on these contracts is recorded as foreign currency gains (losses) within cost of sales in the condensed consolidated statements of income (loss). The fair value of foreign currency forward contracts are recorded in "Prepayments and other current assets" or "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2019 and December 31, 2018.

The following table summarizes by position the notional amounts for foreign currency forward contracts as of March 31, 2019 (all of which mature in 2019):

	Notional Amount
Long position	$	(33	)
Short position	$	33

Interest Rate Risk

Our financial instruments that are sensitive to market risk for changes in interest rates are primarily our debt securities. We use our revolving credit facility to finance our short-term and long-term capital requirements. We pay a current market rate of interest on these borrowings. Our long-term capital requirements have been financed with long-term debt with original maturity dates ranging from five to ten years. On March 31, 2019, we had $1.6 billion par value of fixed rate debt and $3.8 billion par value of floating rate debt. Of the fixed rate debt, $466 million is fixed through 2022, $618 million is fixed through 2024, and $500 million is fixed through 2026. We also had $3.8 billion of principal amounts in long-term debt obligations that are subject to variable interest rates. For more detailed explanations on our debt structure and senior credit facility refer to “Liquidity and Capital Resources” earlier in this Management’s Discussion and Analysis and Note 10, Debt and Other Financing Arrangements in our condensed consolidated financial statements located in Part I, Item I of this Form 10-Q.

We estimate that the fair value of our long-term debt at March 31, 2019 was about 96% percent of its book value. A one percentage point increase or decrease in interest rates related to our variable interest rate debt would increase or decrease the annual interest expense we recognize in the income statement and the cash we pay for interest expense by about $38 million.

Equity Prices

We also utilize an equity swap arrangement to offset changes in liabilities related to the equity market risks of our arrangements for deferred compensation and restricted stock unit awards. Gain or losses from changes in fair value of these equity swaps are generally offset by the losses or gains on the related liabilities. In 2017, we entered into an equity swap agreement with a financial institution. We selectively use cash-settled share swaps to reduce market risk associated with our deferred liabilities. These equity compensation liabilities increase as our stock price increases and decrease as our stock price decreases. In contrast, the value of the swap agreement moves in the opposite direction of these liabilities, allowing us to fix a portion of the liabilities at a stated amount. As of March 31, 2019, we had hedged the deferred liability related to approximately 250,000 common share equivalents.

67

ITEM 4.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of our management, including our Co-Chief Executive Officers and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), as the end of the quarter covered by this report. Based on their evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded the Company’s disclosure controls and procedures were effective to ensure information required to be disclosed by our Company in reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

68

PART II

OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Note 13, Commitments and Contingencies, in our condensed consolidated financial statements located in Part I Item 1 of this Form 10-Q is incorporated herein by reference.

ITEM 1A.RISK FACTORS

We are exposed to certain risks and uncertainties that could have a material adverse effect on our business, financial condition and operating results. There have been no material changes to the Risk Factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The risks described herein or in our Annual Report on Form 10-K are not the only risks facing us. New risk factors emerge from time to time and it is not possible for us to predict all such risk factors, nor to assess the effect such risk factors might have on our business, financial condition and operating results, or the extent to which any such risk factor or combination of risk factors may effect our business, financial condition and operating results, or the extent to which any such risk factor or combination of risk factors may affect our business, financial condition and operating results.

69

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) None.

(b) Not applicable.

(c) Purchase of equity securities by the issuer and affiliated purchasers. The following table provides information relating to our purchase of shares of our common stock in the first quarter of 2019. These purchases reflect shares withheld upon vesting of restricted stock for tax withholding obligations. We generally intend to continue to satisfy tax withholding obligations in connection with the vesting of outstanding restricted stock through the withholding of shares.

In February 2017, our Board of Directors authorized the repurchase of up to $400 million of our then outstanding common stock over the next three years, including $112 million that remained authorized under earlier repurchase programs. We generally acquire the shares through open market or privately negotiated transactions and have historically used cash from operations. The repurchase program does not obligate us to repurchase shares within any specific time. We did not repurchase any shares through this program in the three months ended March 31, 2019.

Period	Total Number of Shares Purchased (1)	Average Price Paid		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Value of Shares That May Yet be Purchased Under These Plans or Programs (Millions)
January 2019	26,731	$	31.55	—	$	231
February 2019	25,005	34.78		—	231
March 2019	718	34.33		—	231
Total	52,454	$	33.12	—	$	231

(1) Shares withheld upon vesting of restricted stock and share settled restricted stock units in the first quarter of 2019.

70

INDEX TO EXHIBITS

TO

QUARTERLY REPORT ON FORM 10-Q

FOR QUARTER ENDED MARCH 31, 2019

Exhibit Number		Description
*31.1	—	Certification of Brian J. Kesseler under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2		Certification of Roger J. Wood under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.3	—	Certification of Jason M. Hollar under Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1	—	Certification of Brian J. Kesseler, Roger J. Wood and Jason M. Hollar under Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	—	XBRL Instance Document.
*101.SCH	—	XBRL Taxonomy Extension Schema Document.
*101.CAL	—	XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF	—	XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB	—	XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	—	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

71

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Tenneco Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TENNECO INC.
By:	/S/    JASON M. HOLLAR
	Jason M. Hollar
	Executive Vice President and Chief Financial Officer (on behalf of the Registrant)

TENNECO INC.
By:	/s/    JOHN S. PATOUHAS
	John S. Patouhas
	Vice President and Chief Accounting Officer (principal accounting officer)

Dated: May 9, 2019

72

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT

I, Brian J. Kesseler, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tenneco Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the registrant’s internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/	BRIAN J. KESSELER
	Brian J. Kesseler
	Co-Chief Executive Officer

Dated: May 9, 2019

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT

I, Roger J. Wood, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tenneco Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the registrant’s internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/	ROGER J. WOOD
	Roger J. Wood
	Co-Chief Executive Officer

Dated: May 9, 2019

EX-31.3

EXHIBIT 31.3

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT

I, Jason M. Hollar, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tenneco Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the registrant’s internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/	JASON M. HOLLAR
	Jason M. Hollar
	Executive Vice President and Chief Financial Officer

Dated: May 9, 2019

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Tenneco Inc. (the “Company”) for the period ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), and pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Brian J. Kesseler and Roger J. Wood, as Co-Chief Executive Officers of the Company, and Jason M. Hollar, as Chief Financial Officer of the Company, hereby certify that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ BRIAN J. KESSELER 

Brian J. Kesseler

Co-Chief Executive Officer

/s/ ROGER J. WOOD

Roger J. Wood

Co-Chief Executive Officer

/s/ JASON M. HOLLAR

Jason M. Hollar

Chief Financial Officer

Dated: May 9, 2019

This certification shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934. In addition, this certification shall not be deemed to be incorporated by reference into any filing under the Securities Exchange Act of 1933 or the Securities Exchange Act of 1934.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 07, 2019
Document Information [Line Items]
Entity Registrant Name	TENNECO INC
Entity Central Index Key	0001024725
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Entity Emerging Growth Company	false
Entity Small Business	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		57,124,067
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,793,669

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Net sales and operating revenues	$ 4,484,000,000	$ 2,581,000,000
Costs and expenses
Cost of sales	3,864,000,000	2,193,000,000
Selling, general, and administrative	316,000,000	151,000,000
Depreciation and amortization	169,000,000	60,000,000
Engineering, research, and development	92,000,000	40,000,000
Restructuring charges and asset impairments	24,000,000	12,000,000
Goodwill impairment charge	60,000,000	0
Costs and expenses	4,525,000,000	2,456,000,000
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	2,000,000	3,000,000
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(16,000,000)	0
Other expense (income), net	(3,000,000)	0
Total other expense (income)	17,000,000	(3,000,000)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24,000,000)	122,000,000
Interest expense	81,000,000	23,000,000
Earnings (loss) before income taxes and noncontrolling interests	(105,000,000)	99,000,000
Income tax expense (benefit)	0	25,000,000
Net income (loss)	(105,000,000)	74,000,000
Less: Net income (loss) attributable to noncontrolling interests	12,000,000	14,000,000
Net income (loss) attributable to Tenneco Inc.	$ (117,000,000)	$ 60,000,000
Basic earnings (loss) per share:
Earnings (loss) per share (in dollars per share)	$ (1.44)	$ 1.17
Weighted average shares outstanding (in shares)	80,874,637	51,211,643
Diluted earnings (loss) per share:
Earnings (loss) per share (in dollars per share)	$ (1.44)	$ 1.17
Weighted average shares outstanding (in shares)	80,874,637	51,501,643

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (105)	$ 74
Other comprehensive income (loss) — net of tax
Foreign currency translation adjustment	35	27
Cash flow hedges	4	0
Defined benefit plans	1	3
Other comprehensive income (loss) — net of tax	40	30
Comprehensive income (loss)	(65)	104
Less: Comprehensive income (loss) attributable to noncontrolling interests	18	22
Comprehensive income (loss) attributable to common shareholders	$ (83)	$ 82

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 357	$ 697
Restricted cash	6	5
Receivables:
Customer notes and accounts, net	2,738	2,487
Other	105	85
Inventories	2,266	2,245
Prepayments and other current assets	555	590
Total current assets	6,027	6,109
Property, plant and equipment, net	3,519	3,501
Long-term receivables, net	9	10
Goodwill	791	869
Intangibles, net	1,687	1,519
Investments in nonconsolidated affiliates	528	544
Deferred income taxes	471	467
Other assets	584	213
Total assets	13,616	13,232
Current liabilities:
Short-term debt, including current maturities of long-term debt	159	153
Accounts payable	2,861	2,759
Accrued compensation and employee benefits	363	343
Accrued income taxes	30	64
Accrued expenses and other current liabilities	994	1,001
Total current liabilities	4,407	4,320
Long-term debt	5,417	5,340
Deferred income taxes	110	88
Pension and postretirement benefits	1,138	1,167
Deferred credits and other liabilities	564	263
Commitments and contingencies (Note 13)
Total liabilities	11,636	11,178
Redeemable noncontrolling interests	153	138
Tenneco Inc. shareholders’ equity:
Preferred stock — $0.01 par value; none issued	0	0
Additional paid-in capital	4,365	4,360
Accumulated other comprehensive loss	(658)	(692)
Accumulated deficit	(1,150)	(1,013)
Total shareholders equity before treasury stock	2,558	2,656
Shares held as treasury stock — at cost: March 31, 2019 and December 31, 2018 — 14,592,888 shares	(930)	(930)
Tenneco Inc. shareholders’ equity	1,628	1,726
Noncontrolling interests	199	190
Total equity	1,827	1,916
Total liabilities, redeemable noncontrolling interests and equity	13,616	13,232
Class A voting stock — $0.01 par value; shares issued: March 31, 2019 - 71,750,146 and December 31, 2018 - 71,675,379
Tenneco Inc. shareholders’ equity:
Common stock	1	1
Class B non-voting convertible stock — $0.01 par value; shares issued: March 31, 2019 - 23,793,669 and December 31, 2018 - 23,793,669
Tenneco Inc. shareholders’ equity:
Common stock	$ 0	$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Treasury shares (in shares)	14,592,888	14,592,888
Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	71,750,146	71,675,379
Treasury shares (in shares)	14,592,888
Class B
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	23,793,669	23,793,669
Treasury shares (in shares)	0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income (loss)	$ (105)	$ 74
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Goodwill impairment charge	60	0
Depreciation and amortization	169	60
Deferred income taxes	(8)	(1)
Stock-based compensation	7	5
Restructuring charges and asset impairments, net of cash paid	(14)	(4)
Change in pension and other postretirement benefit plans	(17)	0
Equity in earnings of nonconsolidated affiliates	(16)	0
Cash dividends received from nonconsolidated affiliates	15	0
Changes in operating assets and liabilities:
Receivables	(312)	(221)
Inventories	11	(32)
Payables and accrued expenses	157	185
Accrued interest and income taxes	(38)	(4)
Other assets and liabilities	(59)	(62)
Net cash provided (used) by operating activities	(150)	0
Investing Activities
Proceeds from sale of assets	1	2
Net proceeds from sale of business	22	0
Cash payments for property, plant, and equipment	(210)	(89)
Acquisition of business, net of cash acquired	(158)	0
Proceeds from deferred purchase price of factored receivables	60	34
Other	2	0
Net cash used by investing activities	(283)	(53)
Financing Activities
Proceeds from term loans and notes	28	6
Repayments of term loans and notes	(64)	(13)
Borrowings on revolving lines of credit	2,119	1,267
Payments on revolving lines of credit	(1,981)	(1,189)
Issuance (repurchase) of common shares	(2)	(2)
Cash dividends	(20)	(13)
Net increase (decrease) in bank overdrafts	(1)	(4)
Other	(3)	(30)
Distributions to noncontrolling interest partners	(1)	0
Net cash (used) provided by financing activities	75	22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	19	3
Decrease in cash, cash equivalents and restricted cash	(339)	(28)
Cash, cash equivalents and restricted cash, beginning of period	702	318
Cash, cash equivalents and restricted cash, end of period	363	290
Supplemental Cash Flow Information
Cash paid during the period for interest	74	23
Cash paid during the period for income taxes, net of refunds	43	25
Non-cash Investing Activities
Period end balance of accounts payable for property, plant, and equipment	101	55
Deferred purchase price of receivables factored in the period	$ 58	$ 37

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total Tenneco Inc. Shareholders' Equity	Noncontrolling Interests	Total Equity
Balance at beginning of year at Dec. 31, 2017			$ (930)	$ 3,112	$ (1,009)	$ (538)	$ 636	$ 46	$ 682
Beginning balance (in shares) at Dec. 31, 2017		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 60				60		60	7	67
Foreign currency translation adjustments	27					19	19	7	26
Derivatives	0
Defined benefit plans	3					3	3		3
Comprehensive income (loss)	104						82	14	96
Adjustments to adopt new accounting standards					(1)		(1)		(1)
Common stock issued				3			3		3
Cash dividends declared					(13)		(13)		(13)
Purchase accounting measurement period adjustment	0
Ending balance (in shares) at Mar. 31, 2018		1
Balance at end of period at Mar. 31, 2018			(930)	3,115	(963)	(516)	707	60	767
Balance at beginning of year at Dec. 31, 2018	1,916		(930)	4,360	(1,013)	(692)	1,726	190	1,916
Beginning balance (in shares) at Dec. 31, 2018		1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(117)				(117)		(117)	7	(110)
Foreign currency translation adjustments	35					29	29	4	33
Derivatives	4					4	4		4
Defined benefit plans	1					1	1		1
Comprehensive income (loss)	(65)						(83)	11	(72)
Common stock issued				5			5		5
Cash dividends declared					(20)		(20)		(20)
Purchase accounting measurement period adjustment	(8)							(1)	(1)
Distributions declared to noncontrolling interests								(1)	(1)
Ending balance (in shares) at Mar. 31, 2019		1
Balance at end of period at Mar. 31, 2019	$ 1,827		$ (930)	$ 4,365	$ (1,150)	$ (658)	$ 1,628	$ 199	$ 1,827

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.25	$ 0.25

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Description of Business

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

1. Description of Business

Tenneco Inc. ("Tenneco" or "the Company") was formed under the laws of Delaware in 1996. Tenneco designs, manufactures, and sells products and services for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers. The Company is one of the world's leading manufacturers of clean air, powertrain, and ride performance products and systems, and serves both original equipment manufacturers ("OEM") and replacement markets worldwide.

On January 10, 2019, the Company completed the acquisition of a 90.5% ownership interest in Öhlins Intressenter AB (“Öhlins”, the "Öhlins Acquisition"), a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries. On October 1, 2018, the Company completed the acquisition of a 100% ownership interest in Federal-Mogul LLC ("Federal-Mogul Acquisition," and together with the Öhlins Acquisition, the "Acquisitions"), a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reductions, and safety systems.

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Summary of Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation — Interim Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments (consisting of normal recurring adjustments) management believes are necessary to fairly state the results of operations, comprehensive income, financial position, changes in shareholders' equity, and cash flows. The Company's management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 18, 2019. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

The Company expects to separate its businesses to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). The Company has revised its timing target for the separation of the business and now expects the DRiV spinoff to occur mid-2020. In preparation for the spinoff, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. See Note 17, Segment Information.

Redeemable Noncontrolling Interests — The Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. The redemption of these redeemable noncontrolling interests is not solely within the Company's control. Accordingly, these noncontrolling interests are presented in the temporary equity section of the Company's condensed consolidated balance sheets. The Company does not believe it is probable the redemption features related to these noncontrolling interest securities will be triggered, as a change in control event is generally not probable until it occurs, except as discussed in Note 3, Acquisitions and Divestitures for the redeemable noncontrolling interests from the Acquisitions.

The following is a rollforward of activities in the Company's redeemable noncontrolling interests for the three months ended March 31, 2019 and 2018:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	138		$	42
Net income (loss) attributable to redeemable noncontrolling interests	5			7
Other comprehensive income (loss)	2			1
Acquisition and other	16			—
Purchase accounting measurement period adjustment	(8		)	—
Balance at end of period	$	153		$	50

The Company recorded a decrease to the redeemable noncontrolling interests of $8 million from the Federal-Mogul Acquisition, as a result of adjustments made in the measurement period to the preliminary purchase price allocation. The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

Earnings (loss) per share:

Basic earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average shares outstanding during the period. Diluted earnings (loss) per share reflects the weighted average effect of all potentially dilutive securities from the date of issuance. Actual weighted average shares outstanding used in calculating earnings (loss) per share were:

	Three months ended March 31,
	2019	2018
Weighted average shares of common stock outstanding	80,874,637	51,211,643
Effect of dilutive securities:
Restricted stock, PSUs and RSUs	—	216,351
Stock options	—	73,649
Dilutive shares outstanding	80,874,637	51,501,643

For the three months ended March 31, 2019 and 2018, the calculation of diluted earnings (loss) per share excluded 1,714,950 and 174 of share-based awards. The effect of including these securities in the calculation of diluted earnings (loss) per share would have been anti-dilutive.

Revision of Previously Issued Financial Statements

The Company identified an error in the accounting for certain costs capitalized into inventory that did not constitute inventoriable costs in its historical financial statements. The Company also revised for other immaterial errors related to various line items. As a result, certain amounts in the condensed consolidated financial statements have been revised for the three months ended March 31, 2018. These revisions were not material to the previously issued financial statements and are presented in the tables below.

Reclassifications: Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. These reclassifications have no effect on previously reported earnings before income taxes and noncontrolling interests or net income, other comprehensive income (loss), current or total assets, current or total liabilities, and the cash provided (used) by operating, investing or financing activities within the condensed consolidated financial statements.

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

	Three Months Ended March 31, 2018
	As Reported		Reclasses			As Reclassified		Revisions		As Revised
Condensed consolidated statement of income (loss)
Revenues
Net sales and operating revenues	$	2,574	$	—		$	2,574	$	7	$	2,581
Costs and expenses
Cost of sales	2,198		(9		)	2,189		4		2,193
Selling, general, and administrative	153		(2		)	151		—		151
Depreciation and amortization	59		—			59		1		60
Engineering, research, and development	41		(1		)	40		—		40
Restructuring charges and asset impairments	—		12			12		—		12
	2,451		—			2,451		5		2,456
Other expense (income)
Loss on sale of receivables	3		(3		)	—		—		—
Non-service pension and other postretirement benefit costs (credits)	—		3			3		—		3
Other expense (income), net	3		(3		)	—		—		—
	6		(3		)	3		—		3
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	117		3			120		2		122
Interest expense	20		3			23		—		23
Earnings (loss) before income taxes and noncontrolling interests	97		—			97		2		99
Income tax expense (benefit)	25					25		—		25
Net income (loss)	72		—			72		2		74
Less: Net income (loss) attributable to noncontrolling interests	14					14		—		14
Net income (loss) attributable to Tenneco Inc.	$	58	$	—		$	58	$	2	$	60
Earnings (loss) per share
Basic earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17
Diluted earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17

	Three Months Ended March 31, 2018
	As Reported		Reclasses		As Reclassified		Revisions		As Revised
Condensed consolidated statement of comprehensive income (loss)
Net income (loss)	$	72	$	—	$	72	$	2	$	74
Other comprehensive income (loss)—net of tax
Foreign currency translation adjustment	27		—		27		—		27
Defined benefit plans	3		—		3		—		3
	30		—		30		—		30
Comprehensive income (loss)	102		—		102		2		104
Less: Comprehensive income (loss) attributable to noncontrolling interests	22		—		22		—		22
Comprehensive income (loss) attributable to common shareholders	$	80	$	—	$	80	$	2	$	82

	Three Months Ended March 31, 2018
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Condensed consolidated statements of cash flow
Operating Activities
Net income (loss)	$	72		$	—		$	72		$	2		$	74
Net cash provided by (used by) operating activities	—			—			—			—			—
Investing Activities
Net cash used by investing activities	(53		)	—			(53		)	—			(53		)
Financing Activities
Proceeds from term loans and notes	—			—			—			6			6
Repayments of term loans and notes	—			(6		)	(6		)	(7		)	(13		)
Retirement of long-term debt	(6		)	6			—			—			—
Borrowings on revolving lines of credit	—			—			—			1,267			1,267
Payments on revolving lines of credit	—			—			—			(1,189		)	(1,189		)
Net increase (decrease) in revolver borrowings	77			—			77			(77		)	—
Issuance (repurchase) of common shares	(2		)	—			(2		)	—			(2		)
Cash dividends	(13		)	—			(13		)	—			(13		)
Net increase (decrease) in bank overdrafts	(4		)	—			(4		)	—			(4		)
Net increase (decrease) in short-term borrowings secured by accounts receivable	(30		)	30			—			—			—
Other	—			(30		)	(30		)	—			(30		)
Net cash provided by (used by) financing activities	22			—			22			—			22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	3			—			3			—			3
Increase (decrease) in cash, cash equivalents and restricted cash	(28		)	—			(28		)	—			(28		)
Cash, cash equivalents and restricted cash, beginning of period	318			—			318			—			318
Cash, cash equivalents and restricted cash, end of period	$	290		$	—		$	290		$	—		$	290

	Three Months Ended March 31, 2018
	As Reported			Revisions			As Revised
Condensed consolidated statements of changes in shareholders' equity
Accumulated Deficit
Balance January 1	$	(946	)	$	(63	)	$	(1,009	)
Net income (loss) attributable to Tenneco Inc.	58			2			60
Cash dividends declared	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	(902	)	$	(61	)	$	(963	)
Accumulated Other Comprehensive Income (loss)
Balance January 1	$	(541	)	$	3		$	(538	)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Balance March 31	$	(519	)	$	3		$	(516	)
Total Tenneco Inc. Shareholders' Equity
Balance January 1	$	696		$	(60	)	$	636
Net income (loss) attributable to Tenneco Inc.	58			2			60
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Comprehensive income (loss)	80			2			82
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Cash dividends	(13		)	—			(13		)
Common Stock Issued	3			—			3
Balance March 31	$	765		$	(58	)	$	707
Total Equity
Balance January 1	$	742		$	(60	)	$	682
Net income (loss)	65			2			67
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	26			—			26
Defined benefit plans	3			—			3
Comprehensive income (loss)	94			2			96
Common Stock Issued	3			—			3
Cash dividends	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	825		$	(58	)	$	767

New Accounting Pronouncements

Adoption of New Accounting Standards

Comprehensive income— In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The Company has elected not to adopt the optional reclassification.

Leases — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update supersedes the lease requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flow arising from a lease. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company adopted this update on January 1, 2019 using the modified retrospective method without the recasting of comparative periods’ financial information, as permitted by the transition guidance.

The Company adopted the package of practical expedients that allows companies to not reassess and will carry forward historical conclusions related to contracts that contain leases, existing lease classification, and initial direct costs. It elected the land easements practical expedient allowing the Company not to reassess whether existing or expired land easements not accounted for as leases under previous guidance are or contain leases under the new guidance. It also did not adopt the hindsight practical expedient and has also made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. As a part of the implementation efforts, the Company reviewed its internal control structure and modified and augmented, as necessary.

Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities of $387 million and $383 million, and a reduction of favorable lease intangibles of $4 million as of January 1, 2019. The standard did not materially affect the Company's condensed consolidated financial position or results of operations and had no effect on cash flows. See Note 14, Leases.

Accounting Standards Issued But Not Yet Adopted

Intangibles— In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Retirement benefits — In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Fair value measurements — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

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Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Acquisitions and Divestitures

ring the three months ended March 31, 2019, the Company made measurement period adjustments based on further evaluation of available information to facts and circumstances that existed as of the acquisition date.

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the three months ended March 31, 2019:

	Initial Allocation		Adjustments			Revised Allocation
Cash, cash equivalents and restricted cash	$	277	$	—		$	277
Customer notes and accounts receivable	1,258		—			1,258
Other receivables	62		—			62
Inventories	1,551		—			1,551
Prepayments and other current assets	198		—			198
Property, plant and equipment	1,711		(28		)	1,683
Long-term receivables	48		—			48
Goodwill	825		(46		)	779
Intangibles	1,530		71			1,601
Investments in nonconsolidated affiliates	528		(15		)	513
Deferred income taxes	166		—			166
Other assets	55		—			55
Total assets acquired	8,209		(18		)	8,191
Short-term debt, including current maturities of long-term debt	130		—			130
Accounts payable	957		—			957
Accrued compensation and employee benefits	231		—			231
Accrued income taxes	49		—			49
Accrued expenses and other current liabilities	522		—			522
Long-term debt	1,315		—			1,315
Deferred income taxes	56		—			56
Pension and postretirement benefits	879		—			879
Deferred credits and other liabilities	124		(9		)	115
Total liabilities assumed	4,263		(9		)	4,254
Redeemable noncontrolling interests	96		(8		)	88
Noncontrolling interests	143		(1		)	142
Net assets and noncontrolling interests acquired	$	3,707	$	—		$	3,707

The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair value of property, plant and equipment; intangible assets; unconsolidated affiliates; deferred income tax assets and liabilities; redeemable noncontrolling interests; and noncontrolling interests.

Goodwill of $409 million was allocated to the Powertrain segment, $315 million was allocated to the Motorparts segment, and $55 million was allocated to the Ride Performance segment. The goodwill consists of the Company's expected future economic benefits that will arise from expected future product sales and synergies from combining Federal-Mogul with its existing portfolio of products. None of the goodwill is deductible for tax purposes.

Other intangible assets acquired include the following:

	Estimated Fair Value		Weighted-Average Useful Lives
Definite-lived intangible assets:
Customer platforms and relationships	$	978	10 years
Technology rights	68		10 years
Packaged kits know-how	54		10 years
Catalogs	40		10 years
Licensing agreements	64		4.5 years
Land use rights	30		42.8 years
Total definite-lived intangible assets	1,234		10.5 years
Indefinite-lived intangible assets:
Trade names and trademarks	367
Total	$	1,601

The Company recorded a $152 million step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation and recognized $41 million as a non-cash charge to cost of goods sold during the three months ended March 31, 2019 related to the amortization of this step-up, as the acquired inventory was sold. The Company recognized $105 million as a non-cash charge to cost of goods sold during the year ended December 31, 2018 and expects to recognize the remaining amortization of the inventory step-up during 2019.

In addition, the Company acquired $83 million in redeemable noncontrolling interests related to a subsidiary from the Federal-Mogul Acquisition. The Company initiated the process to make a tender offer for the shares it does not own due to the change in control in accordance with local regulations triggered by the acquisition. It is probable these shares will become redeemable during 2019 under the tender offer at a price that is representative of fair value and as a result, the noncontrolling interest is presented in the temporary equity section of the Company’s condensed consolidated balance sheets. The carrying amount for this redeemable noncontrolling interest represents its current redemption value at March 31, 2019.

The Company's condensed consolidated statements of income (loss) for the three months ended March 31, 2019 included net sales and operating revenues of $1,906 million and net loss of $39 million associated with the operating results of Federal-Mogul.

Pro Forma Results

The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the Federal-Mogul Acquisition, and the related financing, if the transaction had occurred as of January 1, 2017. The pro forma results are not necessarily indicative of either the actual consolidated results had the Federal-Mogul Acquisition occurred on January 1, 2017 or of future consolidated operating results.

	For the Three Months Ended March 31,
	2019			2018
Net sales and operating revenues	$	4,484		$	4,680
Earnings (loss) before income taxes and noncontrolling interests	$	30		$	226
Net income (loss) attributable to Tenneco Inc.	$	(70	)	$	93
Basic earnings (loss) per share of common stock	$	(0.87	)	$	1.16
Diluted earnings (loss) per share of common stock	$	(0.87	)	$	1.16

These pro forma amounts have been calculated after applying the Company's accounting policies and the results presented above primarily reflect: (i) depreciation adjustments relating to fair value adjustments to property, plant, and equipment; (ii) amortization adjustments relating to fair value estimates of intangible assets; (iii) incremental interest expense, net on assumed indebtedness, the new credit facility, debt issuance costs, and fair value adjustments to debt; and (iv) cost of goods sold adjustments relating to fair value adjustments to inventory. Pro forma adjustments described above have been tax affected using the Company's effective rate during the respective periods.

Assets Held for Sale

On March 1, 2019, the Company sold its wipers business in the Motorparts segment for a sale price of $29 million, subject to adjustment based on terms of the sale agreement. Proceeds from the sale were $22 million, subject to customary working capital adjustments. Certain assets and liabilities of the business are still classified as held for sale within the condensed consolidated balance sheet as of March 31, 2019 and are expected to transfer in the second half of 2019.

The related assets and liabilities were classified as held for sale as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Assets
Inventories	$	3	$	33
Other current assets	—		5
Long-lived assets	1		23
Total assets held for sale	$	4	$	61
Liabilities
Accounts payable	$	2	$	21
Accrued liabilities	—		7
Other liabilities	1		11
Total liabilities held for sale	$	3	$	39

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Restructuring Charges and Asset Impairments, Net

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Charges and Asset Impairments, Net

structuring and Other Charges

The Company's restructuring activities are undertaken as necessary to execute management's strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company's businesses and to relocate operations to best cost locations.

The Company's restructuring charges consist primarily of employee costs (principally severance and/or termination benefits), and facility closure and other costs.

For the three months ended March 31, 2019 and 2018, restructuring charges, net and asset impairments by segment are as follows:

	Three Months Ended March 31,
	2019		2018
Clean Air	$	5	$	1
Powertrain	1		—
Ride Performance	13		8
Motorparts	4		3
Corporate	1		—
	$	24	$	12

During the three months ended March 31, 2019, the Company incurred charges for the following items:

• The Company incurred $5 million in restructuring and related costs related to the accelerated move of the Beijing Ride Performance plant. The Company anticipates the move to be completed by the second quarter of 2019.

• In October 2018, the Company announced a plan to close its Ride Performance plants in Owen Sound, Ontario and Hartwell, Georgia as part of an initiative to realign its manufacturing footprint, to enhance operational efficiency, and respond to changing market conditions and capacity requirements. The Company expects to complete the closure of the two facilities in the second quarter of 2020. The Company recorded charges of $6 million during the first quarter of 2019.

• The Company incurred $6 million in restructuring and related costs related to a restructuring plan designed to achieve a portion of the synergies the Company anticipates achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company will reduce its headcount globally across all segments. The Company began implementing headcount reductions in January 2019 and these actions will continue throughout 2019. The Federal-Mogul Acquisition is discussed further in Note 3, Acquisitions and Divestitures.

• The Company incurred $3 million restructuring and related costs related to the closing of its Clean Air plant in Rennes, France. The Company anticipates the closure to be completed by the end of 2019.

• The Company incurred an additional $4 million in restructuring and related costs for cost improvement initiatives at various other operations around the world.

During the three months ended March 31, 2018, the Company incurred charges for the following items:

• The Company incurred $7 million in restructuring and related costs related to the accelerated move of the Beijing Ride Performance plant.

• The Company incurred an additional $5 million in restructuring and related costs for cost improvement initiatives at various other operations around the world.

Restructuring Reserve Rollforward

Amounts related to activities that were charges to restructuring reserves, including costs incurred to support future structural cost reductions, by reportable segments are as follows:

	Three months ended March 31, 2019
	Reportable Segments
	Clean Air			Powertrain			Ride Performance			Motorparts			Total Reportable Segments			Corporate			Total
Balance at beginning of period	$	17		$	15		$	25		$	43		$	100		$	3		$	103
Provisions	5			1			13			4			23			1			24
Payments	(6		)	(3		)	(13		)	(14		)	(36		)	(2		)	(38		)
Balance at end of period	$	16		$	13		$	25		$	33		$	87		$	2		$	89

	Three months ended March 31, 2018
	Reportable Segments
	Clean Air			Powertrain		Ride Performance			Motorparts			Total Reportable Segments			Corporate		Total
Balance at beginning of period	$	14		$	—	$	7		$	4		$	25		$	—	$	25
Provisions	1			—		8			3			12			—		12
Payments	(5		)	—		(9		)	(2		)	(16		)	—		(16		)
Balance at end of period	$	10		$	—	$	6		$	5		$	21		$	—	$	21

The following table provides a summary of the Company's restructuring liabilities and related activity for each type of exit costs:

	Three months ended March 31, 2019									Three months ended March 31, 2018
	Employee Costs			Facility Closure and Other Costs			Total			Employee Costs			Facility Closure and Other Costs			Total
Balance at beginning of period	$	98		$	5		$	103		$	19		$	6		$	25
Provisions	11			13			24			10			2			12
Payments	(25		)	(13		)	(38		)	(13		)	(3		)	(16		)
Balance at end of period	$	84		$	5		$	89		$	16		$	5		$	21

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Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventories

5. Inventories

At March 31, 2019 and December 31, 2018, inventory consists of the following:

	March 31, 2019		December 31, 2018
Finished goods	$	1,181	$	1,116
Work in process	526		562
Raw materials	450		457
Materials and supplies	109		110
	$	2,266	$	2,245

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Goodwill and Other Intangible Assets—Net

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets—Net

6. Goodwill and Other Intangible Assets

At March 31, 2019 and December 31, 2018, goodwill consists of the following:

	Three Months Ended March 31, 2019
	Clean Air		Powertrain		Ride Performance			Motorparts			Total
Gross carrying amount at beginning of period	$	22	$	388	$	210		$	611		$	1,231
Measurement period adjustments	—		21		—			(67		)	(46		)
Acquisitions	—		—		28			—			28
Gross carrying amount at end of period	22		409		238			544			1,213
Accumulated impairment loss at beginning of period	—		—		(143		)	(219		)	(362		)
Impairment	—		—		(60		)	—			(60		)
Accumulated impairment loss at end of period	—		—		(203		)	(219		)	(422		)
Net carrying value at end of period	$	22	$	409	$	35		$	325		$	791

The Öhlins Acquisition resulted in $28 million of goodwill which was included in the Ride Performance segment.

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which affected the amount of goodwill recognized and a net reduction of $46 million was recorded.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

During the three months ended March 31, 2019, the Company performed a review of potential triggering events, including, among other items, its market capitalization levels and the reorganization of its reporting structure, and concluded no events indicated (other than the reorganization of its reporting structure) it was more likely than not the fair values of its reporting units had declined to below their carrying values at March 31, 2019. If the Company’s market capitalization remains depressed for a sustained period of time or declines further, and if such a decline becomes indicative the fair value of the Company’s reporting units have declined to below their carrying values, an interim goodwill impairment test may need to be performed in future periods and may result in a material non-cash goodwill impairment charge.

As noted above, the Company reorganized the reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company reassigned assets and liabilities (excluding goodwill) to the reporting units affected. Goodwill was then reassigned to the reporting units using a relative fair value approach based on the fair value of the elements transferred and the fair value of the elements remaining within the original reporting units. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill.

Reporting Units

The Company has nine reporting units that have goodwill at March 31, 2019. The following table categorizes the Company’s goodwill by reporting unit according to the level of excess between the reporting unit’s fair value and carrying value giving effect to the first quarter impairment charges:

	Fair value exceeds
	carrying value	Goodwill
Reporting units 1-6	< 15%	$	354
Reporting units 7-9	> 15%	437
		$	791

At March 31, 2019 and December 31, 2018, the Company's intangible assets consist of the following:

		March 31, 2019							December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived intangible assets:
Customer relationships and platforms	10 years	$	1,019	$	(50	)	$	969	$	964	$	(24	)	$	940
Customer contract	10 years	8		(6		)	2		8		(5		)	3
Patents	10 to 17 years	1		(1		)	—		1		(1		)	—
Technology rights	10 to 30 years	135		(28		)	107		98		(27		)	71
Packaged kits know-how	10 years	54		(3		)	51		36		(1		)	35
Catalogs	10 years	40		(2		)	38		—		—			—
Licensing agreements	3 to 5 years	63		(7		)	56		66		(3		)	63
Land use rights	28 to 46 years	45		(2		)	43		44		(2		)	42
		1,365		(99		)	1,266		1,217		(63		)	1,154
Indefinite-lived intangible assets:
Trade names and trademarks		421		—			421		365		—			365
Total		$	1,786	$	(99	)	$	1,687	$	1,582	$	(63	)	$	1,519

The Company recorded definite-lived and indefinite-lived intangible assets of $135 million as a result of the Öhlins Acquisition.

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which affected the amount of definite-lived and indefinite-lived intangible assets recognized and a net increase of $71 million was recorded.

The purchase price allocations for the Acquisitions are preliminary and subject to finalization. The Company's current estimates and assumptions may change as a result. See Note 3, Acquisitions and Divestitures for additional information.

During the three months ended March 31, 2019 and 2018, amortization expense was $35 million and less than $1 million which is included in "Depreciation and amortization" within the condensed consolidated statements of income (loss).

The expected future amortization expense for the Company's definite-lived intangible assets is as follows:

	2019		2020		2021		2022		2023		2024 and thereafter		Total
Expected amortization expense	$	106	$	140	$	139	$	134	$	131	$	616	$	1,266

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Investment in Nonconsolidated Affiliates

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Nonconsolidated Affiliates

7. Investment in Nonconsolidated Affiliates

The Company has investments in several nonconsolidated affiliates, which are primarily located in China, Korea, Turkey, and the U.S. The Company generally equates control to ownership percentage whereby investments more than 50% owned are consolidated.

The Company's ownership interest in affiliates accounted for under the equity method is as follows:

	March 31, 2019		December 31, 2018
Anqing TP Goetze Piston Ring Company Limited (China)	35.7	%	35.7	%
Anqing TP Powder Metallurgy Co., Ltd (China)	20.0	%	20.0	%
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)	50.0	%	50.0	%
Farloc Argentina SAIC Y F (Argentina)	23.9	%	23.9	%
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)	50.0	%	50.0	%
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)	25.0	%	25.0	%
Federal-Mogul TP Liners, Inc. (USA)	46.0	%	46.0	%
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)	49.0	%	49.0	%
JURID do Brasil Sistemas Automotivos Ltda. (Brazil)	19.9	%	19.9	%
KB Autosys Co., Ltd. (Korea)	33.6	%	33.6	%
Montagewerk Abgastechnik Emden GmbH (Germany)	50.0	%	50.0	%

The Company's investments in its nonconsolidated affiliates at March 31, 2019 and December 31, 2018 are:

	March 31, 2019		December 31, 2018
Investments in nonconsolidated affiliates	$	528	$	544

The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019		2018
Equity earnings (losses) of nonconsolidated affiliates, net of tax	$	16	$	—
Cash dividends received from nonconsolidated affiliates	$	15	$	—

During the three months ended March 31, 2019, the Company made adjustments in the measurement period to the preliminary purchase price allocation for the Federal-Mogul Acquisition which resulted in a reduction to the fair value of its investments in nonconsolidated affiliates of $15 million. The purchase price allocation is preliminary and subject to the finalization. The Company's current estimates and assumptions may change as more information becomes available. See Note 3, Acquisitions and Divestitures for additional information.

The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three months ended March 31, 2019. The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share:

	Three Months ended March 31, 2019
Statements of Income	Otomotiv A.S.		Anqing TP Goetze		Other		Total
Sales	$	91	$	39	$	125	$	255
Gross profit	$	21	$	16	$	23	$	60
Income from continuing operations	$	19	$	11	$	13	$	43
Net income	$	18	$	9	$	11	$	38

See Note 18, Related Party Transactions for additional information on balances and transactions with equity method investments.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

8. Derivatives and Hedging Activities

The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity compensation liabilities, and changes in interest rates, which may result in cash flow risks. For exposures not offset within its operations, the Company enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. Designation of derivative instruments is performed on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. The Company assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy.

Market Risks

Foreign Currency Risk— The Company manufactures and sells its products in North America, South America, Asia, Europe, and Africa. As a result, the Company's financial results could be significantly affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets in which the Company manufactures and sells its products. The Company generally tries to use natural hedges within its foreign currency activities, including the matching of revenues and costs, to minimize foreign currency risk. Where natural hedges are not in place, the Company considers managing certain aspects of its foreign currency activities and larger transactions through the use of foreign currency options or forward contracts. Principal currencies hedged have historically included the U.S. dollar, euro, British pound, Polish zloty, Mexican peso, and Canadian dollar.

Concentrations of Credit Risk— Financial instruments including cash equivalents and derivative contracts expose the Company to counterparty credit risk for non-performance. The Company's counterparties for cash equivalents and derivative contracts are banks and financial institutions that meet the Company's requirement of high credit standing. The Company's counterparties for derivative contracts are substantial investment and commercial banks with significant experience using such derivatives. The Company manages its credit risk through policies requiring minimum credit standing and limiting credit exposure to any one counterparty and through monitoring counterparty credit risks. The Company's concentration of credit risk related to derivative contracts at March 31, 2019 and 2018 is not material.

Other— The Company presents its derivative positions and any related material collateral under master netting agreements on a net basis. For derivatives designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness. Unrealized gains and losses associated with ineffective hedges, determined using the hypothetical derivative method, are recognized in "Cost of sales" in the condensed consolidated statements of income (loss). Derivative gains and losses included in accumulated other comprehensive income (loss) for effective hedges are reclassified into operations upon recognition of the hedged transaction. Derivative gains and losses associated with undesignated hedges are recognized in "Cost of sales" in the condensed consolidated statements of income (loss).

Derivative Instruments

Foreign Currency Forward Contracts— The Company enters into foreign currency forward purchase and sale contracts to mitigate its exposure to changes in exchange rates on certain intercompany and third-party trade receivables and payables. In managing its foreign currency exposures, the Company identifies and aggregates existing offsetting positions and then hedges residual exposures through third-party derivative contracts. The gains or losses on these contracts is recognized in "Cost of sales" in the condensed consolidated statements of income (loss). The fair value of foreign currency forward contracts are recorded in "Prepayments and other current assets" or "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2019 and December 31, 2018.

The following table summarizes by position the notional amounts for foreign currency forward contracts as of March 31, 2019 (all of which mature in 2019):

	Notional Amount
Long positions	$	(33	)
Short positions	$	33

Cash-Settled Share Swap Transactions— In 2017, the Company entered into an equity swap agreement. The Company selectively uses cash-settled share swaps to reduce market risk associated with its deferred compensation liabilities. These equity deferred compensation liabilities increase as the Company's stock price increases and decrease as the Company's stock price decreases. In contrast, the value of the swap agreement moves in the opposite direction of these liabilities, allowing the Company to fix a portion of the liabilities at a stated amount. As of March 31, 2019, the Company had hedged its deferred compensation liability related to approximately 250,000 common share equivalents. The fair value of the equity swap agreement is recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets. The fair value of the Company's equity swap agreement was a net asset position of $3 million at March 31, 2019 and $4 million at December 31, 2018.

Hedging Instruments

Cash Flow Hedges — Commodity Price Risk — The Company’s production processes are dependent upon the supply of certain raw materials that are exposed to price fluctuations on the open market. The primary purpose of the Company’s commodity price forward contract activity is to manage the volatility associated with forecasted purchases for up to eighteen months in the future. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts. Principal raw materials hedged include copper, tin, and zinc. In certain instances within this program, foreign currency forwards may be used in order to match critical terms for commodity exposure.

The Company has designated these contracts as cash flow hedging instruments. The Company records unrecognized gains and losses in other comprehensive income (loss) (“OCI or OCL”) and makes regular reclassifying adjustments into “Cost of sales” within the condensed consolidated statements of income (loss) when the underlying hedged transaction is recognized in earnings. The Company had commodity derivatives outstanding with an equivalent notional amount of $26 million as of March 31, 2019 and $27 million as of December 31, 2018. Substantially all of the commodity price hedge contracts mature within one year.

Net Investment Hedge — Foreign Currency Borrowings — The Company has foreign currency denominated debt, €769 million of which was designated as a net investment hedge in certain foreign subsidiaries and affiliates of the Company. Changes to its carrying value are included in shareholders' equity in the foreign currency translation component of OCL and offset against the translation adjustment on the underlying net assets of those foreign subsidiaries and affiliates, which are also recorded in OCL. The Company’s debt instruments are discussed further in Note 10, Debt and Other Financing Arrangements.

The following table is a summary of the carrying value of derivative and non-derivative instruments designated as hedges as of March 31, 2019:

		Carrying Value
	Balance sheet classification	March 31, 2019		December 31, 2018
Commodity price hedge contracts designated as cash flow hedges	Prepayments and other current assets	$	2	$	—
Commodity price hedge contracts designated as cash flow hedges	Accrued expenses and other current liabilities	$	—	$	2
Foreign currency borrowings designated as net investment hedges	Long-term debt	$	862	$	863

The following table represents the effects before reclassification into net income of derivative and non-derivative instruments designated as hedges in accumulated other comprehensive income (loss) as of March 31, 2019:

Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion):	Three months ended March 31, 2019
Commodity price hedge contracts designated as cash flow hedges	$	4
Foreign currency borrowings designated as net investment hedges	$	(19	)

The Company estimates $4 million included in accumulated OCI or OCL as of March 31, 2019 will be reclassified into earnings within the following 12 months.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

three-level valuation hierarchy, based upon observable and unobservable inputs, is used for fair value measurements. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions based on the best evidence available. A financial instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy definition prioritizes the inputs used in measuring fair value into the following levels:

Level 1	—	Quoted prices in active markets for identical assets or liabilities.
Level 2	—	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
Level 3	—	Unobservable inputs based on our own assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents assets and liabilities included in the Company's condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount			Fair Value
Derivative instruments:
Equity swap agreement	Level 2	$	3	$	3	$	4		$	4
Commodity contracts	Level 2	$	2	$	2	$	(2	)	$	(2	)

Cash-Settled Share Swap Transactions — The fair value of the equity swap agreement is recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets.

Commodity Contracts — The Company calculates the fair value of its commodity contracts and foreign currency contracts using quoted commodity forward rates and quoted currency forward rates, to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on quoted bank deposit rates. The fair value of the Company's foreign currency forward contracts was a net asset position of less than $1 million at March 31, 2019 and December 31, 2018.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

In addition to items measured at fair value on a recurring basis, assets may be measured at fair value on a nonrecurring basis. These assets include long-lived assets and intangible assets which may be written down to fair value as a result of impairment.

The Company has determined the fair value measurements related to each of these rely primarily on Company-specific inputs and the Company's assumptions about the use of the assets, as observable inputs are not available (level 3). To determine the fair value of long-lived asset groups, the Company utilizes discounted cash flows expected to be generated by the long-lived asset group.

The Company evaluates the carrying value of its goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each year. These fair value measurements require the Company to make significant assumptions and estimates about the extent and timing of future cash flows, discount rates, and growth rates, which are subject to a high degree of uncertainty. The Company believes the assumptions and estimates used to determine the estimated fair value are reasonable, but different assumptions could materially affect the estimated fair value.

During the three months ended March 31, 2019, the Company reorganized its reporting structure of its Aftermarket, Ride Performance, and Motorparts segments and the underlying reporting units within those segments. The Company tested goodwill for impairment on a pre-reorganization basis and determined there was no impairment for the affected reporting units. The Company also performed an impairment analysis on a post-reorganization basis and determined $60 million of goodwill was impaired for two reporting units within its Ride Performance segment, one of which was a full impairment of the goodwill. See Note 6, Goodwill and Other Intangible Assets.

Financial Instruments Not Carried at Fair Value

Estimated fair values of the Company's outstanding debt were:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	5,386	$	5,285	$	5,307	$	5,218

The fair value of the Company's public senior notes and private borrowings under its senior credit facility is based on observable inputs, and its borrowings on the revolving credit facility approximate fair value. The Company also had $104 million and $106 million at March 31, 2019 and December 31, 2018 in other debt whose carrying value approximates fair value, which consists primarily of foreign debt with maturities of one year or less.

Assets and Liabilities Not Carried at Fair Value

The carrying value of cash and cash equivalents, restricted cash, short and long-term receivables, accounts payable, and short-term debt approximates fair value.

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Debt and Other Financing Arrangements

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Financing Arrangements

-Term Debt

A summary of our long-term debt obligations at March 31, 2019 and December 31, 2018 is set forth in the following table:

	March 31, 2019				December 31, 2018
	Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
Credit Facilities
Revolver Borrowings
Due 2023	$	132	$	132	$	—	$	—
Term Loans
LIBOR plus 1.75% Term Loan A due 2019 through 2023	1,679		1,670		1,700		1,691
LIBOR plus 2.75% Term Loan B due 2019 through 2025	1,696		1,628		1,700		1,629
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		222		225		222
$500 million of 5.000% Senior Notes due 2026	500		493		500		493
Senior Secured Notes
415 million 4.875% Euro Fixed Rate Notes due 2022	466		483		476		496
300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024	337		341		344		349
350 million of 5.000% Euro Fixed Rate Notes due 2024	393		417		401		427
Other debt, primarily foreign instruments	105		104		108		106
			5,490				5,413
Less - maturities classified as current			73				73
Total long-term debt			$	5,417			$	5,340

(1) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $86 million and $90 million as of March 31, 2019 and December 31, 2018. Total unamortized debt (premium) discount, net was $(45) million and $(49) million as of March 31, 2019 and December 31, 2018.

Term Loans

On October 1, 2018, the Company entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent and other lenders (the "New Credit Facility") in connection with the Federal-Mogul Acquisition. The New Credit Facility provides $4.9 billion of total debt financing, consisting of a five-year $1.5 billion revolving credit facility, a five-year $1.7 billion term loan A facility ("Term Loan A") and a seven-year $1.7 billion term loan B facility ("Term Loan B").

The effective interest rate on the Term Loan A was 4.396% and 6.031% on Term Loan B.

Senior Notes

The Company has outstanding 5.375% senior unsecured notes due December 15, 2024 ("2024 Senior Notes") and 5.000% senior unsecured notes due July 15, 2026 ("2026 Senior Notes" and together with the 2024 Senior Notes, the "Senior Unsecured Notes"). The Company has outstanding 5.000% euro denominated fixed rate notes which are due July 15, 2024 ("5.000% Euro Fixed Rate Notes"), 4.875% euro denominated fixed rate notes due April 15, 2022 ("4.875% Euro Fixed Rate Notes"), and floating rate notes due April 15, 2024 ("Euro Floating Rate Notes", together with the 5.000% Euro Fixed Rate Notes and the 4.875% Euro Fixed Notes, the "Senior Secured Notes").

The Company had availability on its credit facilities as of March 31, 2019 as follows:

	Credit Facilities as of March 31, 2019
	Term	Available(b)
	(in billions)
Tenneco Inc. revolving credit facility (a)	2023	$	1.3
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2018-2028	0.1
		$	1.4

^(a)  The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.

^(b)  Letters of credit reduce the available borrowings under the revolving credit facility, as of March 31, 2019 the revolving credit facility had $20 million in letters of credit outstanding.

Interest expense associated with the amortization of the debt issuance costs and original issue discounts recognized in the Company's condensed consolidated statements of income (loss) consist of the following:

	Three months ended March 31,
	2019		2018
Amortization of debt issuance fees	$	5	$	1

Included in the table above, is the amortization of debt issuance costs on the revolver, which are $21 million at March 31, 2019 and are recorded in "Prepayments and other current assets" in the condensed consolidated balance sheets. In addition, there was a $3 million reduction to interest expense during the three months ended March 31, 2019 related to the accretion of the debt premium on the Senior Secured Notes.

New Credit Facility — Other Terms and Conditions— The New Credit Facility also contains two financial maintenance covenants for the revolving credit facility and the Term Loan A facility including a requirement to have a consolidated net leverage ratio (as defined in the New Credit Facility) as of the end of each fiscal quarter of not greater than 4.0 to 1 through September 30, 2019, 3.75 to 1 through September 30, 2020 and 3.5 to 1 thereafter; and a requirement to maintain a consolidated interest coverage ratio (as defined in the New Credit Facility) for any period of four consecutive fiscal quarters of not less than 2.75 to 1.  

Senior Unsecured Notes and Senior Secured Notes — Other Terms and Conditions— The Senior Unsecured Notes and Senior Secured Notes contain covenants that will, among other things, limit the Company's ability to create liens and enter into sale and leaseback transactions. In addition, the Senior Secured Notes and 2024 Senior Unsecured Notes also require that, as a condition precedent to incurring certain types of indebtedness not otherwise permitted, the Company's consolidated fixed charge coverage ratio, as calculated on a pro forma basis, be greater than 2.00, as well as containing restrictions on its operations, including limitations on: (i) incurring additional indebtedness; (ii) paying dividends; (iii) distributions and stock repurchases; (iv) investments; (v) asset sales and (vi) mergers and consolidations.

Subject to limited exceptions, all of the Company's existing and future material domestic wholly owned subsidiaries fully and unconditionally guarantee its Senior Unsecured Notes and Senior Secured Notes on a joint and several basis. There are no significant restrictions on the ability of the subsidiaries that have guaranteed the Company's Senior Notes to make distributions to the Company.

As of March 31, 2019, the Company was in compliance with all of its financial covenants.

Accounts Receivable Securitization and Factoring

On-Balance Sheet Arrangements — The Company has securitization programs for some of its accounts receivable, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
Borrowings on securitization programs	$	3	$	6

Off-Balance Sheet Arrangements— In the Company's European and U.S. accounts receivable factoring programs, accounts receivables are transferred in their entirety to the acquiring entities and are accounted for as a sale. The fair value of assets received as proceeds in exchange for the transfer of accounts receivable under these factoring programs approximates the fair value of such receivables. Certain programs in Europe have deferred purchase price arrangements with the banks.

The Company is the servicer of the receivables under some of these arrangements and is responsible for performing all accounts receivable administration functions. Where the Company receives a fee to service and monitor these transferred accounts receivables, such fees are sufficient to offset the costs and as such, a servicing asset or liability is not recorded as a result of such activities.

In the U.S and Canada, the Company participates in supply chain financing programs with certain of the Company's aftermarket customers through a drafting program.

The amounts outstanding for these factoring and drafting arrangements as of March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
	(in billions)
Accounts receivable outstanding and derecognized	$	1.1	$	1.0

The deferred purchase price receivable as of March 31, 2019 and December 31, 2018 is as follows:

	March 31, 2019		December 31, 2018
Deferred purchase price receivable	$	58	$	154

Proceeds from the factoring of accounts receivable qualifying as sales are as follows:

	Three months ended March 31,
	2019		2018
	(in billions)
Proceeds from factoring qualifying as sales	$	1.2	$	0.8

Financing charges associated with the factoring of receivables are as follows:

	Three months ended March 31,
	2019		2018
Financing charges on sale of receivables(a)	$	8	$	3
(a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).

If the Company were not able to factor receivables or sell drafts under either of these programs, its borrowings under its revolving credit agreement might increase. These programs provide the Company with access to cash at costs that are generally favorable to alternative sources of financing and allow the Company to reduce borrowings under its revolving credit agreement.

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Pension Plans, Postretirement and Other Employee Benefits

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Pension Plans, Postretirement and Other Employee Benefits

11. Pension Plans, Postretirement and Other Employee Benefits

The Company sponsors several defined benefit pension plans ("Pension Benefits") and health care and life insurance benefits ("Other Postretirement Benefits", or "OPEB") for certain employees and retirees around the world.

Components of net periodic benefit cost (credit) for the three months ended March 31, 2019 and 2018 are as follows:

	Three Months Ended March 31,
	Pension												Other Postretirement Benefits
	2019						2018
	U.S.			Non-U.S.			U.S.			Non-U.S.			2019			2018
Service cost	$	1		$	6		$	—		$	3		$	—		$	—
Interest cost	13			7			3			3			3			2
Expected return on plan assets	(17		)	(5		)	(4		)	(5		)	—			—
Net amortization:
Actuarial loss	1			1			1			2			1			1
Prior service cost (credit)	—			—			—			—			(2		)	—
Net pension and postretirement costs (credits)	$	(2	)	$	9		$	—		$	3		$	2		$	3

Long-term Rate of Return

The weighted-average long-term rate of return on assets for the U.S. pension plans in determining 2019 annual net periodic pension costs (credits) is 6.25%.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

Environmental Matters

The Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. The Company has been notified by the U.S. Environmental Protection Agency, other national environmental agencies, and various provincial and state agencies it may be a potentially responsible party (“PRP”) under such laws for the cost of remediating hazardous substances pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") and other national and state or provincial environmental laws. PRP designation typically requires the funding of site investigations and subsequent remedial activities. Many of the sites that are likely to be the costliest to remediate are often current or former commercial waste disposal facilities to which numerous companies sent wastes. Despite the potential joint and several liability which might be imposed on the Company under CERCLA and some of the other laws pertaining to these sites, its share of the total waste sent to these sites generally has been small. The Company believes its exposure for liability at these sites is not material.

On a global basis, the Company has also identified certain other present and former properties at which it may be responsible for cleaning up or addressing environmental contamination, in some cases as a result of contractual commitments and/or federal or state environmental laws. The Company is seeking to resolve its responsibilities for those sites for which a claim has been received.

The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. As of March 31, 2019, the Company has an obligation to remediate or contribute towards the remediation of certain sites, including the sites discussed above at which it may be a PRP.

The Company maintains the aggregated estimated share of environmental remediation costs for all these sites on a discounted basis in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	10	$	12
Deferred credits and other liabilities	29		28
	$	39	$	40

For those locations where the liability was discounted, the weighted average discount rate used was 1.7% and 2.9% at March 31, 2019 and December 31, 2018.

The Company's expected payments of environmental remediation costs for non-indemnified locations are estimated to be approximately:

	2019		2020		2021		2022		2023		2024 and thereafter
Expected payments	$	8	$	6	$	3	$	2	$	2	$	17

Based on information known to the Company from site investigations and the professional judgment of consultants, the Company has established reserves it believes are adequate for these costs. Although the Company believes these estimates of remediation costs are reasonable and are based on the latest available information, the costs are estimates, difficult to quantify based on the complexity of the issues, and are subject to revision as more information becomes available about the extent of remediation required. At some sites, the Company expects other parties will contribute to the remediation costs. In addition, certain environmental statutes provide the Company's liability could be joint and several, meaning the Company could be required to pay amounts in excess of its share of remediation costs. The financial strength of the other PRPs at these sites has been considered, where appropriate, in the determination of the estimated liability. The Company does not believe any potential costs associated with its current status as a PRP, or as a liable party at the other locations referenced herein, will be material to its annual consolidated financial position, results of operations, or liquidity.

Asset Retirement Obligations

The Company’s primary asset retirement obligations ("ARO") activities relate to the removal of hazardous building materials at its facilities. The Company records an ARO at fair value upon initial recognition when the amount is probable and can be reasonably estimated. ARO fair values are determined based on the Company’s determination of what a third party would charge to perform the remediation activities, generally using a present value technique.

The Company maintains ARO liabilities in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	3	$	3
Deferred credits and other liabilities	12		12
	$	15	$	15

Antitrust Investigations and Litigation

On March 25, 2014, representatives of the European Commission (EC) were at Tenneco GmbH's Edenkoben, Germany administrative facility to gather information in connection with an ongoing global antitrust investigation concerning multiple automotive suppliers. On the same date, the Company also received a related subpoena from the U.S. Department of Justice (“DOJ”).

On November 5, 2014, the DOJ granted conditional leniency to Tenneco, its subsidiaries and its 50% affiliates as of such date ("2014 Tenneco Entities") pursuant to an agreement the Company entered into under the Antitrust Division's Corporate Leniency Policy. This agreement provides important benefits to the 2014 Tenneco Entities in exchange for the Company's self-reporting of matters to the DOJ and its continuing full cooperation with the DOJ's resulting investigation. For example, the DOJ will not bring any criminal antitrust prosecution against the 2014 Tenneco Entities, nor seek any criminal fines or penalties, in connection with the matters the Company reported to the DOJ. Additionally, there are limits on the liability of the 2014 Tenneco Entities related to any follow-on civil antitrust litigation in the United States. The limits include single rather than treble damages, as well as relief from joint and several antitrust liability with other relevant civil antitrust action defendants. These limits are subject to the Company satisfying the DOJ and any court presiding over such follow-on civil litigation.

On April 27, 2017, the Company received notification from the EC that it has administratively closed its global antitrust inquiry regarding the production, assembly, and supply of complete exhaust systems. No charges against the Company or any other competitor were initiated at any time and the EC inquiry is now closed.

Certain other competition agencies are also investigating possible violations of antitrust laws relating to products supplied by the Company and its subsidiaries, including Federal-Mogul. The Company has cooperated and continues to cooperate fully with all of these antitrust investigations, and take other actions to minimize its potential exposure.

The Company and certain of its competitors are also currently defendants in civil putative class action litigation, and are subject to similar claims filed by other plaintiffs, in the United States and Canada. More related lawsuits may be filed, including in other jurisdictions. Plaintiffs in these cases generally allege that defendants have engaged in anticompetitive conduct, in violation of federal and state laws, relating to the sale of automotive exhaust systems or components thereof. Plaintiffs seek to recover, on behalf of themselves and various purported classes of purchasers, injunctive relief, damages and attorneys’ fees. However, as explained above, because the DOJ granted conditional leniency to the 2014 Tenneco Entities, the Company's civil liability in U.S. follow-on actions with respect to these entities is limited to single damages and the Company will not be jointly and severally liable with the other defendants, provided that the Company has satisfied its obligations under the DOJ leniency agreement and approval is granted by the presiding court. Typically, exposure for follow-on actions in Canada is less than the exposure for U.S. follow-on actions.

Following the EC’s decision to administratively close its antitrust inquiry into exhaust systems in 2017, receipt by the 2014 Tenneco Entities of conditional leniency from the DOJ and discussions during the third quarter of 2017 following the appointment of a special settlement master in the civil putative class action cases pending against the Company and/or certain of its competitors in the United States, the Company continues to vigorously defend itself and/or take actions to minimize its potential exposure to matters pertaining to the global antitrust investigation, including engaging in settlement discussions when it is in the best interests of the Company and its stockholders. For example, in October 2017, the Company settled an administrative action brought by Brazil's competition authority for an amount that was not material. In December 2018, the Company settled a separate administrative action brought by Brazil’s competition authority against a Federal-Mogul subsidiary, also for an amount that was not material.

Additionally, in February 2018, the Company settled civil putative class action litigation in the United States brought by classes of direct purchasers, end-payors and auto dealers. No other classes of plaintiffs have brought claims against the Company in the United States. Based upon those earlier developments, including settlement discussions, The Company established a reserve of $132 million in its second quarter 2017 financial results for settlement costs that were probable, reasonably estimable, and expected to be necessary to resolve its antitrust matters globally, which primarily involves the resolution of civil suits and related claims. Of the $132 million reserve that was established, $79 million was paid through March 31, 2019 resulting in a remaining reserve of $53 million as of March 31, 2019, which is recorded in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. While the Company, including its Federal-Mogul subsidiaries, continues to cooperate with certain competition agencies investigating possible violations of antitrust laws relating to products supplied by the Company, and the Company may be subject to other civil lawsuits and/or related claims, no amount of this reserve is attributable to matters with the DOJ or the EC, and no such amount is expected based on current information.

The Company's reserve for its antitrust matters is based upon all currently available information and an assessment of the probability of events for those matters where the Company can make a reasonable estimate of the costs to resolve such outstanding matters. The Company's estimate involves significant judgment, given the number, variety and potential outcomes of actual and potential claims, the uncertainty of future rulings and approvals by a court or other authority, the behavior or incentives of adverse parties or regulatory authorities, and other factors outside of its control. As a result, the Company's reserve may change from time to time, and actual costs may vary. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, the Company does not expect that any such change in the reserve will have a material adverse effect on the Company's annual condensed consolidated financial position, results of operations or liquidity.

Other Legal Proceedings, Claims and Investigations

For many years the Company has been and continues to be subject to lawsuits initiated by claimants alleging health problems as a result of exposure to asbestos. The Company's current docket of active and inactive cases is less than 500 cases in the United States and less than 50 in Europe.

With respect to the claims filed in the United States, the substantial majority of the claims are related to alleged exposure to asbestos in the Company's line of Walker® exhaust automotive products although a significant number of those claims appear also to involve occupational exposures sustained in industries other than automotive. A small number of claims have been asserted against one of the Company's subsidiaries by railroad workers alleging exposure to asbestos products in railroad cars. The Company believes, based on scientific and other evidence, it is unlikely that U.S. claimants were exposed to asbestos by the Company's former products and that, in any event, they would not be at increased risk of asbestos-related disease based on their work with these products. Further, many of these cases involve numerous defendants, with the number in some cases exceeding 100 defendants from a variety of industries. Additionally, in many cases the plaintiffs either do not specify any, or specify the jurisdictional minimum, dollar amount for damages.

With respect to the claims filed in Europe, the substantial majority relate to occupational exposure claims brought by current and former employees of Federal-Mogul facilities in France and amounts paid out were not material. A small number of occupational exposure claims have also been asserted against Federal-Mogul entities in Italy and Spain.

As major asbestos manufacturers and/or users continue to go out of business or file for bankruptcy, the Company may experience an increased number of these claims. The Company vigorously defends itself against these claims as part of its ordinary course of business. In future periods, the Company could be subject to cash costs or charges to earnings if any of these matters are resolved unfavorably to the Company. To date, with respect to claims that have proceeded sufficiently through the judicial process, the Company has regularly achieved favorable resolutions. Accordingly, the Company presently believes that these asbestos-related claims will not have a material adverse effect on the Company's condensed consolidated financial position, results of operations or liquidity.

The Company is also from time to time involved in other legal proceedings, claims or investigations. Some of these matters involve allegations of damages against the Company relating to environmental liabilities (including toxic tort, property damage and remediation), intellectual property matters (including patent, trademark and copyright infringement, and licensing disputes), personal injury claims (including injuries due to product failure, design or warning issues, and other product liability related matters), taxes, unclaimed property, employment matters, and commercial or contractual disputes, sometimes related to acquisitions or divestitures. Additionally, some of these matters involve allegations relating to legal compliance.

While the Company vigorously defends itself against all of these legal proceedings, claims and investigations and take other actions to minimize its potential exposure, in future periods, the Company could be subject to cash costs or charges to earnings if any of these matters are resolved on unfavorable terms. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on current information, including the Company's assessment of the merits of the particular claim, except as described above under "Antitrust Investigations", the Company does expect the legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its condensed consolidated financial position, results of operations or liquidity.

Warranty Matters

The Company provides warranties on some of its products. The warranty terms vary but range from one year up to limited lifetime warranties on some of its premium aftermarket products. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified with the Company's products. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company believes the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. The reserve is included in both current and long-term liabilities on the condensed consolidated balance sheets.

Below is a table that shows the activity in the warranty accrual accounts:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	45		$	26
Accruals related to product warranties	5			6
Reductions for payments made	(2		)	(3		)
Foreign currency	—			—
Balance at end of period	$	48		$	29

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

For interim tax reporting, the Company estimates its annual effective tax rate and applies it to year-to-date ordinary income. Jurisdictions where no tax benefit can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The effect of including these jurisdictions on the quarterly effective rate calculation could result in a higher or lower effective tax rate during a particular quarter due to the mix and timing of actual earnings versus annual projections. The tax effects of certain items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.

The Company recognized no income tax expense for the three months ended March 31, 2019 and $25 million in the three months ended March 31, 2018. The tax expense recorded in the three months ended March 31, 2019 included a tax benefit of $2 million relating to changes in the toll tax as discussed below.

On December 22, 2017, the Tax Cuts and Jobs Act ("TCJA") was enacted into U.S. law, which, among other provisions, lowered the corporate income tax rate effective January 1, 2018 from 35% to 21%, and implemented significant changes with respect to U.S. tax treatment of earnings originating from outside the U.S. Many of the provisions of TCJA are subject to regulatory interpretation and U.S. state conforming enactments. The Internal Revenue Service (IRS) issued final regulations, effective on February 5, 2019, which provided additional guidance to assist taxpayers in computing the toll tax. Based on the final regulations a $2 million discrete benefit was recorded in income tax expense the three months ended March 31, 2019.

The Company evaluates its deferred tax assets quarterly to determine if valuation allowances are required or should be adjusted. This assessment considers, among other matters, the nature, frequency and amount of recent losses, the duration of statutory carryforward periods, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. If recent operational improvements continue in our foreign subsidiaries or if certain restructuring steps are completed as part of the Federal-Mogul Acquisition and anticipated spin-off of DRiV, the Company believes it is reasonably possible sufficient positive evidence may be available to release all, or a portion, of its valuation allowance in the next twelve months in certain jurisdictions. This may result in a one-time tax benefit of up to $51 million, primarily related to Spain, China and Czech Republic.

The Company believes it is reasonably possible up to $11 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the next twelve months.

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Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

14. Leases

The Company has operating and finance leases for real estate and equipment. Generally, the leases have remaining terms ofone month to ten years. Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

In addition, some leases include options to terminate the lease. The Company generally negotiates these termination clauses in anticipation of any changes in market conditions; however, because a termination option requires approval from management, the Company assumes the majority of its termination options will not be exercised when determining the lease term.

The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. Lease expense is recorded in operating expenses in the results of operations.

Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable portion of lease payments is not included in the computation of the right of use assets or lease liabilities. Rather, variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred and are included in lease expense in the results of operations.

The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases.

The components of lease cost were as follows:

	Three months ended March 31, 2019
Operating lease cost	$	33
Short-term lease expense	1
Variable lease cost	8
Total lease cost	$	42

Other information related to leases was as follows:

	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	41

Supplemental balance sheet information related to leases was as follows:

	March 31, 2019
Operating leases
Operating lease right-of-use assets (a)	$	362
Other current liabilities (b)	$	101
Other long-term liabilities (c)	256
Total operating lease liabilities	$	357
Finance leases
Property, plant and equipment, gross	$	2
Accumulated depreciation	—
Total finance lease right-of-use assets	$	2
Other current liabilities (b)	$	1
Other long-term liabilities (c)	1
Total finance lease liabilities	$	2
(a) Included in "Other assets" in the condensed consolidated balance sheets.
(b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets.
(c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets.

	March 31, 2019
	Weighted average remaining lease term	Weighted average discount rate
Operating leases	5.29 years	4.26	%
Finance leases	3.23 years	4.85	%

Maturities of lease liabilities under non-cancellable leases as of March 31, 2019 were as follows:

Year ending December 31	Operating leases			Finance leases
2019 (excluding the three months ended March 31, 2019)	$	85		$	1
2020	91			1
2021	69			—
2022	48			—
2023	34			—
Thereafter	55			—
Total future undiscounted lease payments	382			2
Less imputed interest	(25		)	—
Total reported lease liability	$	357		$	2

Future minimum operating lease payments at December 31, 2018 are as follows:

2019	$	120
2020	100
2021	86
2022	68
2023	56
Beyond 2023	53
	$	483

Leases

14. Leases

The Company has operating and finance leases for real estate and equipment. Generally, the leases have remaining terms ofone month to ten years. Leases with an initial term of 12 months or less which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

In addition, some leases include options to terminate the lease. The Company generally negotiates these termination clauses in anticipation of any changes in market conditions; however, because a termination option requires approval from management, the Company assumes the majority of its termination options will not be exercised when determining the lease term.

The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. Lease expense is recorded in operating expenses in the results of operations.

Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable portion of lease payments is not included in the computation of the right of use assets or lease liabilities. Rather, variable payments, other than those dependent upon a market index or rate, are expensed when the obligation for those payments is incurred and are included in lease expense in the results of operations.

The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases.

The components of lease cost were as follows:

	Three months ended March 31, 2019
Operating lease cost	$	33
Short-term lease expense	1
Variable lease cost	8
Total lease cost	$	42

Other information related to leases was as follows:

	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	41

Supplemental balance sheet information related to leases was as follows:

	March 31, 2019
Operating leases
Operating lease right-of-use assets (a)	$	362
Other current liabilities (b)	$	101
Other long-term liabilities (c)	256
Total operating lease liabilities	$	357
Finance leases
Property, plant and equipment, gross	$	2
Accumulated depreciation	—
Total finance lease right-of-use assets	$	2
Other current liabilities (b)	$	1
Other long-term liabilities (c)	1
Total finance lease liabilities	$	2
(a) Included in "Other assets" in the condensed consolidated balance sheets.
(b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets.
(c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets.

	March 31, 2019
	Weighted average remaining lease term	Weighted average discount rate
Operating leases	5.29 years	4.26	%
Finance leases	3.23 years	4.85	%

Maturities of lease liabilities under non-cancellable leases as of March 31, 2019 were as follows:

Year ending December 31	Operating leases			Finance leases
2019 (excluding the three months ended March 31, 2019)	$	85		$	1
2020	91			1
2021	69			—
2022	48			—
2023	34			—
Thereafter	55			—
Total future undiscounted lease payments	382			2
Less imputed interest	(25		)	—
Total reported lease liability	$	357		$	2

Future minimum operating lease payments at December 31, 2018 are as follows:

2019	$	120
2020	100
2021	86
2022	68
2023	56
Beyond 2023	53
	$	483

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Share-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

15. Share-Based Compensation

Share-Based Compensation Expense

The total share-based compensation expense was as follows:

	Three Months Ended March 31,
	2019			2018
Cash-settled share-based compensation expense (benefit)	$	(1	)	$	(1	)
Share-settled share-based compensation expense (benefit)	7			5
	$	6		$	4

Cash-Settled Awards

Prior to 2018, the Company has granted restricted stock units ("RSUs") and long-term performance units ("LTPUs") to certain key employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement with compensation expense being recognized in proportion to the completed requisite period up until date of settlement. At March 31, 2019, the LTPUs outstanding included a three-year grant for 2017-2019 payable in the first quarter of 2020.

As of March 31, 2019, $1 million of total unrecognized compensation costs is expected to be recognized on the cash-settled awards over a weighted-average period of less than 1 year.

Share-Settled Awards

The Company has granted restricted stock to its directors and certain key employees as well as RSUs and PSUs that are payable in common stock to certain key employees. These awards are settled in shares upon vesting and recognized in equity based on their fair value.

The following table reflects the status for all nonvested restricted shares, share-settled RSUs, and PSUs for the period indicated:

	Restricted Stock				Share-Settled RSUs				PSUs
	Shares		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value
Nonvested Restricted Shares
Nonvested balance at beginning of period	178,550		$	55.46	440,403		$	47.99	227,049		$	49.18
Granted	34,009		34.66		856,808		34.25		628,990		24.77
Vested	(166,444	)	49.86		(83,109	)	55.00		—		—
Forfeited	(1,262	)	61.61		(17,772	)	42.82		(15,065	)	50.75
Nonvested balance at end of period	44,853		$	62.49	1,196,330		$	38.22	840,974		$	34.44

As of March 31, 2019, approximately $63 million of total unrecognized compensation costs is expected to be recognized on the share-settled awards over a weighted-average period of approximately 3 years.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Stockholders' Equity

16. Shareholders' Equity

Common Stock Outstanding

The Company has authorized 175,000,000 shares and 135,000,000 shares ($0.01 par value) of Class A Common Stock at March 31, 2019 and 2018. The Company has authorized 25,000,000 shares ($0.01 par value) of Class B Common Stock at March 31, 2019.

Total common stock outstanding and changes in common stock issued are as follows:

	Class A Common Stock				Class B Common Stock
	Three Months March 31				Three Months March 31
	2019		2018		2019
Shares issued at beginning of period	71,675,379		66,033,509		23,793,669
Issuance (repurchased) pursuant to benefit plans	120,622		(15,906	)	—
Restricted stock forfeited and withheld for taxes	(54,293	)	(5,108	)	—
Stock options exercised	8,438		4,779		—
Shares issued at end of period	71,750,146		66,017,274		23,793,669
Treasury stock	14,592,888		14,592,888		—
Total shares outstanding	57,157,258		51,424,386		23,793,669

Preferred Stock

The Company had 50,000,000 shares of preferred stock ($0.01 par value) authorized at both March 31, 2019 and 2018. No shares of preferred stock were issued or outstanding at those dates.

Accumulated Other Comprehensive Income (Loss)

The following represents the Company's changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31
	2019			2018
Foreign currency translation adjustments and other
Balance at beginning of period	$	(395	)	$	(263	)
Other comprehensive income (loss) before reclassifications adjustments	27			19
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	(368		)	(244		)
Income tax provision (benefit)	2			—
Balance at end of period	$	(366	)	$	(244	)
Pensions and other postretirement benefits
Balance at beginning of period	$	(297	)	$	(275	)
Other comprehensive income (loss) before reclassifications	—			—
Reclassification from other comprehensive income (loss)	1			4
Other comprehensive income (loss)	(296		)	(271		)
Income tax provision (benefit)	—			(1		)
Balance at end of period	$	(296	)	$	(272	)
Cash flow hedge instruments
Balance at beginning of period	$	—		$	—
Other comprehensive income (loss) before reclassifications	4			—
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	4			—
Income tax provision (benefit)	—			—
Balance at end of period	$	4		$	—
Other comprehensive income (loss) attributable to noncontrolling interests	$	6		$	8

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Segment Information

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

17. Segment Information

The Company expects to separate its businesses to form two new, independent publicly traded companies and now expects the DRiV spinoff to occur mid-2020.As such, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate."

Management uses EBITDA including noncontrolling interests as the key performance measure of segment profitability and uses the measure in its financial and operational decision making processes, for internal reporting, and for planning and forecasting purposes to effectively allocate resources. EBITDA including noncontrolling interests is defined as earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization. Segment assets are not presented as it is not a measure reviewed by the Chief Operating Decision Maker in allocating resources and assessing performance.

EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with US GAAP and should not be considered an alternative to net income, which is the most directly comparable financial measure to EBITDA including noncontrolling interests that is in accordance with US GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

The following table summarizes certain of the Company's segment information:

	Reportable Segments
	Clean Air		Powertrain		Ride Performance			Motorparts		Total		Corporate			Reclass & Elims			Total
For the Three Months Ended March 31, 2019
Revenues from external customers	$	1,779	$	1,175	$	733		$	797	$	4,484	$	—		$	—		$	4,484
Intersegment revenues	$	—	$	46	$	46		$	11	$	103	$	—		$	(103	)	$	—
EBITDA, including noncontrolling interests	$	131	$	113	$	(45	)	$	45	$	244	$	(99	)	$	—		$	145
For the Three Months Ended March 31, 2018
Revenues from external customers	$	1,756	$	—	$	513		$	312	$	2,581	$	—		$	—		$	2,581
Intersegment revenues	$	—	$	—	$	6		$	—	$	6	$	—		$	(6	)	$	—
EBITDA, including noncontrolling interests	$	157	$	—	$	24		$	45	$	226	$	(44	)	$	—		$	182

Segment EBITDA including noncontrolling interests and the reconciliation to earnings before interest expense, income taxes, and noncontrolling interests are as follow:

	Three Months Ended March 31,
	2019			2018
EBITDA including noncontrolling interests by Segments:
Clean Air	$	131		$	157
Powertrain	113			—
Ride Performance	(45		)	24
Motorparts	45			45
Corporate	(99		)	(44		)
Total EBITDA including noncontrolling interests	145			182
Less: Depreciation and amortization	(169		)	(60		)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122
Less: Interest expense	(81		)	(23		)
Less: Income tax expense (benefit)	—			(25		)
Net income (loss)	$	(105	)	$	74

Revenue from contracts with customers is disaggregated by customer type and geography, 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 tables, revenue is disaggregated accordingly:

	Reportable Segments
By Customer Type	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
OE - Substrate	$	706	$	—	$	—	$	—	$	706
OE - Value add	1,073		1,175		733		—		2,981
Aftermarket	—		—		—		797		797
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
OE - Substrate	$	652	$	—	$	—	$	—	$	652
OE - Value add	1,104		—		513		—		1,617
Aftermarket	—		—		—		312		312
Total	$	1,756	$	—	$	513	$	312	$	2,581

	Reportable Segments
By Geography	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
North America	$	793	$	405	$	232	$	507	$	1,937
Europe, Middle East and Africa	641		575		378		237		1,831
Rest of world	345		195		123		53		716
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
North America	$	768	$	—	$	180	$	188	$	1,136
Europe, Middle East and Africa	657		—		225		108		990
Rest of world	331		—		108		16		455
Total	$	1,756	$	—	$	513	$	312	$	2,581

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Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

18. Related Party Transactions

Amounts presented as Icahn Automotive Group LLC represent the Company's activity with Auto Plus and Pep Boys. See Note 7, Investment in Nonconsolidated Affiliates, for further information for companies within the tables below that represent equity method investments.

The following table is a summary of the net sales, purchases, and royalty and other income from related parties for the three months ended March 31, 2019:

	Three Months Ended March 31, 2019
	Net Sales		Purchases		Royalty and Other Income
Icahn Automotive Group LLC	$	43	$	—	$	1
PSC Metals, Inc.	$	1	$	—	$	—
Anqing TP Goetze Piston Ring Company Limited	$	—	$	14	$	—
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	—
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	—
Federal-Mogul Powertrain Otomotiv A.S.	$	27	$	55	$	1
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	3	$	—
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	1	$	4	$	—
Federal-Mogul TP Liners, Inc.	$	4	$	—	$	—
Montagewerk Abgastechnik Emden GmbH	$	2	$	—	$	—

During the three months ended March 31, 2018, the Company had sales to Montagewerk Abgastechnik Emden GmbH of $4 million.

The following table is a summary of amounts due to and from the Company's related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019				December 31, 2018
	Receivables		Payables and accruals		Receivables		Payables and accruals
Icahn Automotive Group LLC	$	59	$	1	$	60	$	12
Anqing TP Goetze Piston Ring Company Limited	$	1	$	16	$	1	$	22
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	1	$	1
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	1	$	2
Federal-Mogul Powertrain Otomotiv A.S.	$	16	$	27	$	9	$	16
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	1	$	—	$	1
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	—	$	3	$	—	$	—
Federal-Mogul TP Liners, Inc.	$	2	$	8	$	2	$	7
Montagewerk Abgastechnik Emden GmbH	$	—	$	1	$	—	$	—

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Supplemental Guarantor Condensed Consolidating Financial Statements

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Supplemental Guarantor Condensed Consolidating Financial Statements

19. Supplemental Guarantor Condensed Consolidating Financial Statements

Basis of Presentation

Substantially all of the Company's existing and future material domestic 100% owned subsidiaries (which are referred to as the Guarantor Subsidiaries) fully and unconditionally guarantee its senior notes on a joint and several basis. However, a subsidiary’s guarantee may be released in certain customary circumstances such as a sale of the subsidiary or all or substantially all of its assets in accordance with the indenture applicable to the notes. The Guarantor Subsidiaries are combined in the presentation below.

These consolidating financial statements are presented on the equity method. Under this method, the Company's investments are recorded at cost and adjusted for its ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. You should read the condensed consolidating financial information of the Guarantor Subsidiaries in connection with the Company's condensed consolidated financial statements and related notes of which this note is an integral part.

The accompanying supplemental guarantor consolidating financial statements have been updated to reflect the revision as described in Note 2, Summary of Significant Accounting Policies.

As discussed in Note 3, Acquisitions and Divestitures, the allocation of the purchase price to the assets acquired and liabilities assumed, including the entities to which it is allocated, is preliminary and subject to change during the measurement period.

Distributions

There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us.

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,691		$	2,793		$	—		$	—		$	4,484
Affiliated companies	218			281			—			(499		)	—
	1,909			3,074			—			(499		)	4,484
Costs and expenses
Cost of sales	1,676			2,688			(1		)	(499		)	3,864
Restructuring charges and asset impairments	8			16			—			—			24
Goodwill impairment charge	33			27			—			—			60
Engineering, research, and development	39			53			—			—			92
Selling, general, and administrative	178			135			3			—			316
Depreciation and amortization	83			86			—			—			169
	2,017			3,005			2			(499		)	4,525
Other expense (income)
Non-service postretirement benefit costs	—			2			—			—			2
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(1		)	(15		)	—			—			(16		)
Other (income) expense, net	(7		)	4			—			—			(3		)
	(8		)	(9		)	—			—			(17		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(100		)	78			(2		)	—			(24		)
Interest expense:
External, net of interest capitalized	11			5			65			—			81
Affiliated companies, net of interest income	(8		)	8			—			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(103		)	65			(67		)	—			(105		)
Income tax expense (benefit)	(18		)	30			(12		)	—			—
Equity in net income (loss) from affiliated companies	21			—			62			(83		)	—
Net income (loss)	(64		)	35			7			(83		)	(105		)
Less: Net income (loss) attributable to noncontrolling interests	—			12			—			—			12
Net income (loss) attributable to Tenneco Inc.	$	(64	)	$	23		$	7		$	(83	)	$	(117	)
Comprehensive income (loss) attributable to Tenneco Inc.	$	(68	)	$	61		$	7		$	(83	)	$	(83	)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,032		$	1,549		$	—		$	—		$	2,581
Affiliated companies	123			156			—			(279		)	—
	1,155			1,705			—			(279		)	2,581
Costs and expenses
Cost of sales	1,007			1,465			—			(279		)	2,193
Restructuring charges and asset impairments	1			11			—			—			12
Goodwill impairment charge	—			—			—			—			—
Engineering, research, and development	18			22			—			—			40
Selling, general, and administrative	73			78			—			—			151
Depreciation and amortization	23			37			—			—			60
	1,122			1,613			—			(279		)	2,456
Other expense (income)
Non-service postretirement benefit costs	3			—			—			—			3
Other (income) expense, net	9			(9		)	—			—			—
	12			(9		)	—			—			3
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	21			101			—			—			122
Interest expense:
External, net of interest capitalized	10			3			10			—			23
Affiliated companies, net of interest income	(3		)	—			3			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	14			98			(13		)	—			99
Income tax (benefit) expense	1			24			—			—			25
Equity in net income (loss) from affiliated companies	48			—			73			(121		)	—
Net income (loss)	61			74			60			(121		)	74
Less: Net income (loss) attributable to noncontrolling interests	—			14			—			—			14
Net income (loss) attributable to Tenneco Inc.	$	61		$	60		$	60		$	(121	)	$	60
Comprehensive income (loss) attributable to Tenneco Inc.	$	64		$	79		$	60		$	(121	)	$	82

BALANCE SHEETS

	March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	143		$	210		$	4		$	—		$	357
Restricted cash	—			6			—			—			6
Receivables, net	1,037			1,806			—			—			2,843
Inventories, net	964			1,302			—			—			2,266
Prepayments and other current assets	217			311			27			—			555
Total current assets	2,361			3,635			31			—			6,027
Property, plant and equipment, net	1,149			2,361			9			—			3,519
Investment in affiliated companies	1,544			—			4,907			(6,451		)	—
Long-term receivables, net	8			1			—			—			9
Goodwill	462			329			—			—			791
Intangibles, net	1,000			685			2			—			1,687
Investments in nonconsolidated affiliates	43			485			—			—			528
Deferred income taxes	252			208			11			—			471
Other assets	205			379			—			—			584
Total assets	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	14		$	130		$	15		$	—		$	159
Accounts payable	996			1,863			2			—			2,861
Accrued compensation and employee benefits	75			288			—			—			363
Accrued income taxes	(3		)	33			—			—			30
Accrued expenses and other current liabilities	395			550			49			—			994
Total current liabilities	1,477			2,864			66			—			4,407
Long-term debt	133			29			5,255			—			5,417
Intercompany due to (due from)	2,072			(64		)	(2,008		)	—			—
Deferred income taxes	—			110			—			—			110
Pension, postretirement benefits and other liabilities	881			802			19			—			1,702
Commitments and contingencies
Total liabilities	4,563			3,741			3,332			—			11,636
Redeemable noncontrolling interests	—			153			—			—			153
Tenneco Inc. shareholders’ equity	2,461			3,990			1,628			(6,451		)	1,628
Noncontrolling interests	—			199			—			—			199
Total equity	2,461			4,189			1,628			(6,451		)	1,827
Total liabilities, redeemable noncontrolling interests and equity	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616

BALANCE SHEETS

	December 31, 2018
	Guarantor Subsidiaries		Nonguarantor Subsidiaries				Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	329	$	364			$	4		$	—		$	697
Restricted cash	—		5				—			—			5
Receivables, net	943		1,629				—			—			2,572
Inventories, net	958		1,287				—			—			2,245
Prepayments and other current assets	254		311				25			—			590
Total current assets	2,484		3,596				29			—			6,109
Property, plant and equipment, net	1,131		2,361				9			—			3,501
Investment in affiliated companies	1,421		—				4,856			(6,277		)	—
Long-term receivables, net	9		1				—			—			10
Goodwill	263		383				223			—			869
Intangibles, net	1,007		510				2			—			1,519
Investments in nonconsolidated affiliates	43		501				—			—			544
Deferred income taxes	255		200				12			—			467
Other assets	48		180				—			(15		)	213
Total assets	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	1	$	152			$	—		$	—		$	153
Accounts payable	858		1,894				7			—			2,759
Accrued compensation and employee benefits	88		255				—			—			343
Accrued income taxes	—		52				27			(15		)	64
Accrued expenses and other current liabilities	436		488				77			—			1,001
Total current liabilities	1,383		2,841			—	111			(15		)	4,320
Long-term debt	3		32				5,305			—			5,340
Intercompany due to (due from)	2,726		(215		)		(2,511		)	—			—
Deferred income taxes	—		88				—			—			88
Postretirement benefits and other liabilities	225		705				500			—			1,430
Commitments and contingencies
Total liabilities	4,337		3,451				3,405			(15		)	11,178
Redeemable noncontrolling interests	—		138				—			—			138
Tenneco Inc. shareholders’ equity	2,324		3,953				1,726			(6,277		)	1,726
Noncontrolling interests	—		190				—			—			190
Total equity	2,324		4,143				1,726			(6,277		)	1,916
Total liabilities, redeemable noncontrolling interests and equity	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(29	)	$	(75	)	$	(46	)	$	—		$	(150	)
Investing Activities
Acquisition of business, net of cash acquired	—			(158		)	—			—		—	(158		)
Proceeds from sale of assets	—			1			—			—			1
Cash payments for property, plant and equipment	(60		)	(150		)	—			—			(210		)
Net proceeds from sale of business	6			16			—			—			22
Other	2			—			—			—			2
Proceeds from deferred purchase price of factored receivables	—			60			—			—			60
Net cash used in investing activities	(52		)	(231		)	—			—			(283		)
Financing Activities
Cash dividends	—			—			(20		)	—			(20		)
Repayment of term loans and notes	(1		)	(37		)	(26		)	—			(64		)
Proceeds from term loans and notes	—			28			—			—			28
Issuance (repurchase) of common shares	—			—			(2		)	—			(2		)
Decrease in bank overdrafts	—			(1		)	—			—			(1		)
Borrowings on revolving lines of credit	1,856			54			209			—			2,119
Payments on revolving lines of credit	(1,724		)	(63		)	(194		)	—			(1,981		)
Other	—			(3		)	—			—			(3		)
Intercompany dividends and net (decrease) increase in intercompany obligations	(236		)	157			79			—			—
Distribution to noncontrolling interests partners	—			(1		)	—			—			(1		)
Net cash (used in) provided by financing activities	(105		)	134			46			—			75
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			19			—			—			19
Increase (decrease) in cash, cash equivalents and restricted cash	(186		)	(153		)	—			—			(339		)
Cash, cash equivalents and restricted cash, January 1	329			369			4			—			702
Cash, cash equivalents and restricted cash, March 31	$	143		$	216		$	4		$	—		$	363

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(27	)	$	32		$	(5	)	$	—	$	—
Investing Activities
Proceeds from sale of assets	—			2			—			—		2
Cash payments for property, plant and equipment	(40		)	(49		)	—			—		(89		)
Proceeds from deferred purchase price of factored receivables	—			34			—			—		34
Net cash used in investing activities	(40		)	(13		)	—			—		(53		)
Financing Activities
Proceeds from term loans and notes	—			6			—			—		6
Repayments of term loans and notes	(5		)	(8		)	—			—		(13		)
Borrowings on revolving lines of credit	1,093			8			166			—		1,267
Payments on revolving lines of credit	(1,026		)	(12		)	(151		)	—		(1,189		)
Issuance (repurchase) of common shares	—			—			(2		)	—		(2		)
Cash dividends	—			—			(13		)	—		(13		)
Net increase (decrease) in bank overdrafts	—			(4		)	—			—		(4		)
Other	—			(30		)	—			—		(30		)
Intercompany dividends and net (decrease) increase in intercompany obligations	3			(7		)	4			—		—
Net cash (used in) provided by financing activities	65			(47		)	4			—		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			3			—			—		3
Increase (decrease) in cash, cash equivalents and restricted cash	(2		)	(25		)	(1		)	—		(28		)
Cash, cash equivalents and restricted cash, January 1	7			311			—			—		318
Cash, cash equivalents and restricted cash, March 31	$	5		$	286		$	(1	)	$	—	$	290

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Summary of Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation — Interim Financial Statements

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments (consisting of normal recurring adjustments) management believes are necessary to fairly state the results of operations, comprehensive income, financial position, changes in shareholders' equity, and cash flows. The Company's management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 18, 2019. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

The Company expects to separate its businesses to form two new, independent publicly traded companies, an Aftermarket and Ride Performance company ("DRiV") and a new Powertrain Technology company ("New Tenneco"). The Company has revised its timing target for the separation of the business and now expects the DRiV spinoff to occur mid-2020. In preparation for the spinoff, the Company began to manage and report its DRiV businesses through two new operating segments, in the first quarter of 2019, as compared to the three operating segments it had previously reported. The DRiV operating segments consist of Motorparts and Ride Performance. The new Motorparts operating segment consists of the previously reported Aftermarket operating segment as well as the aftermarket portion of the previously reported Motorparts operating segment. The Ride Performance operating segment consists of the previously reported Ride Performance operating segment as well as the OE Braking business that was included in the previously reported Motorparts operating segment. As such, prior period operating segment results and related disclosures have been conformed to reflect the Company's current operating segments. The future New Tenneco consists of two existing operating segments, Powertrain and Clean Air. See Note 17, Segment Information.

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests — The Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests at fair value in the event of a change in control of Tenneco Inc. or certain of its subsidiaries. The redemption of these redeemable noncontrolling interests is not solely within the Company's control. Accordingly, these noncontrolling interests are presented in the temporary equity section of the Company's condensed consolidated balance sheets. The Company does not believe it is probable the redemption features related to these noncontrolling interest securities will be triggered, as a change in control event is generally not probable until it occurs, except as discussed in

Earnings (loss) per share

Earnings (loss) per share:

Basic earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average shares outstanding during the period. Diluted earnings (loss) per share reflects the weighted average effect of all potentially dilutive securities from the date of issuance.

Reclassifications

Reclassifications: Certain amounts in the prior years have been aggregated or disaggregated to conform to current year presentation. These reclassifications have no effect on previously reported earnings before income taxes and noncontrolling interests or net income, other comprehensive income (loss), current or total assets, current or total liabilities, and the cash provided (used) by operating, investing or financing activities within the condensed consolidated financial statements.

New Accounting Pronouncements

New Accounting Pronouncements

Adoption of New Accounting Standards

Comprehensive income— In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this update allow a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The Company has elected not to adopt the optional reclassification.

Leases — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update supersedes the lease requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flow arising from a lease. For public business entities, the standard is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company adopted this update on January 1, 2019 using the modified retrospective method without the recasting of comparative periods’ financial information, as permitted by the transition guidance.

The Company adopted the package of practical expedients that allows companies to not reassess and will carry forward historical conclusions related to contracts that contain leases, existing lease classification, and initial direct costs. It elected the land easements practical expedient allowing the Company not to reassess whether existing or expired land easements not accounted for as leases under previous guidance are or contain leases under the new guidance. It also did not adopt the hindsight practical expedient and has also made an accounting policy election to exempt leases with an initial term of twelve months or less from balance sheet recognition. Instead, short-term leases will be expensed over the lease term. As a part of the implementation efforts, the Company reviewed its internal control structure and modified and augmented, as necessary.

Adoption of the new standard resulted in the recording of additional lease assets and lease liabilities of $387 million and $383 million, and a reduction of favorable lease intangibles of $4 million as of January 1, 2019. The standard did not materially affect the Company's condensed consolidated financial position or results of operations and had no effect on cash flows. See Note 14, Leases.

Accounting Standards Issued But Not Yet Adopted

Intangibles— In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Retirement benefits — In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this update are effective for fiscal years ending after December 15, 2020 with early adoption permitted. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

Fair value measurements — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently evaluating the potential effect of this new guidance on its financial statements.

XML

Summary of Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Redeemable Noncontrolling Interests

The following is a rollforward of activities in the Company's redeemable noncontrolling interests for the three months ended March 31, 2019 and 2018:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	138		$	42
Net income (loss) attributable to redeemable noncontrolling interests	5			7
Other comprehensive income (loss)	2			1
Acquisition and other	16			—
Purchase accounting measurement period adjustment	(8		)	—
Balance at end of period	$	153		$	50

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Actual weighted average shares outstanding used in calculating earnings (loss) per share were:

	Three months ended March 31,
	2019	2018
Weighted average shares of common stock outstanding	80,874,637	51,211,643
Effect of dilutive securities:
Restricted stock, PSUs and RSUs	—	216,351
Stock options	—	73,649
Dilutive shares outstanding	80,874,637	51,501,643

Schedule of Error Corrections and Prior Period Adjustments

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

	Three Months Ended March 31, 2018
	As Reported		Reclasses			As Reclassified		Revisions		As Revised
Condensed consolidated statement of income (loss)
Revenues
Net sales and operating revenues	$	2,574	$	—		$	2,574	$	7	$	2,581
Costs and expenses
Cost of sales	2,198		(9		)	2,189		4		2,193
Selling, general, and administrative	153		(2		)	151		—		151
Depreciation and amortization	59		—			59		1		60
Engineering, research, and development	41		(1		)	40		—		40
Restructuring charges and asset impairments	—		12			12		—		12
	2,451		—			2,451		5		2,456
Other expense (income)
Loss on sale of receivables	3		(3		)	—		—		—
Non-service pension and other postretirement benefit costs (credits)	—		3			3		—		3
Other expense (income), net	3		(3		)	—		—		—
	6		(3		)	3		—		3
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	117		3			120		2		122
Interest expense	20		3			23		—		23
Earnings (loss) before income taxes and noncontrolling interests	97		—			97		2		99
Income tax expense (benefit)	25					25		—		25
Net income (loss)	72		—			72		2		74
Less: Net income (loss) attributable to noncontrolling interests	14					14		—		14
Net income (loss) attributable to Tenneco Inc.	$	58	$	—		$	58	$	2	$	60
Earnings (loss) per share
Basic earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17
Diluted earnings (loss) per share of common stock	$	1.13	$	—		$	1.13	$	0.04	$	1.17

	Three Months Ended March 31, 2018
	As Reported		Reclasses		As Reclassified		Revisions		As Revised
Condensed consolidated statement of comprehensive income (loss)
Net income (loss)	$	72	$	—	$	72	$	2	$	74
Other comprehensive income (loss)—net of tax
Foreign currency translation adjustment	27		—		27		—		27
Defined benefit plans	3		—		3		—		3
	30		—		30		—		30
Comprehensive income (loss)	102		—		102		2		104
Less: Comprehensive income (loss) attributable to noncontrolling interests	22		—		22		—		22
Comprehensive income (loss) attributable to common shareholders	$	80	$	—	$	80	$	2	$	82

	Three Months Ended March 31, 2018
	As Reported			Reclasses			As Reclassified			Revisions			As Revised
Condensed consolidated statements of cash flow
Operating Activities
Net income (loss)	$	72		$	—		$	72		$	2		$	74
Net cash provided by (used by) operating activities	—			—			—			—			—
Investing Activities
Net cash used by investing activities	(53		)	—			(53		)	—			(53		)
Financing Activities
Proceeds from term loans and notes	—			—			—			6			6
Repayments of term loans and notes	—			(6		)	(6		)	(7		)	(13		)
Retirement of long-term debt	(6		)	6			—			—			—
Borrowings on revolving lines of credit	—			—			—			1,267			1,267
Payments on revolving lines of credit	—			—			—			(1,189		)	(1,189		)
Net increase (decrease) in revolver borrowings	77			—			77			(77		)	—
Issuance (repurchase) of common shares	(2		)	—			(2		)	—			(2		)
Cash dividends	(13		)	—			(13		)	—			(13		)
Net increase (decrease) in bank overdrafts	(4		)	—			(4		)	—			(4		)
Net increase (decrease) in short-term borrowings secured by accounts receivable	(30		)	30			—			—			—
Other	—			(30		)	(30		)	—			(30		)
Net cash provided by (used by) financing activities	22			—			22			—			22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	3			—			3			—			3
Increase (decrease) in cash, cash equivalents and restricted cash	(28		)	—			(28		)	—			(28		)
Cash, cash equivalents and restricted cash, beginning of period	318			—			318			—			318
Cash, cash equivalents and restricted cash, end of period	$	290		$	—		$	290		$	—		$	290

	Three Months Ended March 31, 2018
	As Reported			Revisions			As Revised
Condensed consolidated statements of changes in shareholders' equity
Accumulated Deficit
Balance January 1	$	(946	)	$	(63	)	$	(1,009	)
Net income (loss) attributable to Tenneco Inc.	58			2			60
Cash dividends declared	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	(902	)	$	(61	)	$	(963	)
Accumulated Other Comprehensive Income (loss)
Balance January 1	$	(541	)	$	3		$	(538	)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Balance March 31	$	(519	)	$	3		$	(516	)
Total Tenneco Inc. Shareholders' Equity
Balance January 1	$	696		$	(60	)	$	636
Net income (loss) attributable to Tenneco Inc.	58			2			60
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	19			—			19
Defined benefit plans	3			—			3
Comprehensive income (loss)	80			2			82
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Cash dividends	(13		)	—			(13		)
Common Stock Issued	3			—			3
Balance March 31	$	765		$	(58	)	$	707
Total Equity
Balance January 1	$	742		$	(60	)	$	682
Net income (loss)	65			2			67
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustment	26			—			26
Defined benefit plans	3			—			3
Comprehensive income (loss)	94			2			96
Common Stock Issued	3			—			3
Cash dividends	(13		)	—			(13		)
Adjustments to adopt new accounting standards	(1		)	—			(1		)
Balance March 31	$	825		$	(58	)	$	767

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Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date:

Cash, cash equivalents and restricted cash	$	4
Customer notes and accounts receivable	19
Inventories	31
Prepayments and other current assets	2
Property, plant, and equipment	8
Goodwill	28
Intangibles	135
Other assets	9
Total assets acquired	236
Short-term debt, including current maturities of long-term debt	10
Accounts payable	11
Accrued compensation and employee benefits	12
Deferred income taxes	18
Deferred credits and other liabilities	6
Total liabilities assumed	57
Redeemable noncontrolling interest	17
Net assets acquired	$	162

The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date and the measurement period adjustments made during the three months ended March 31, 2019:

	Initial Allocation		Adjustments			Revised Allocation
Cash, cash equivalents and restricted cash	$	277	$	—		$	277
Customer notes and accounts receivable	1,258		—			1,258
Other receivables	62		—			62
Inventories	1,551		—			1,551
Prepayments and other current assets	198		—			198
Property, plant and equipment	1,711		(28		)	1,683
Long-term receivables	48		—			48
Goodwill	825		(46		)	779
Intangibles	1,530		71			1,601
Investments in nonconsolidated affiliates	528		(15		)	513
Deferred income taxes	166		—			166
Other assets	55		—			55
Total assets acquired	8,209		(18		)	8,191
Short-term debt, including current maturities of long-term debt	130		—			130
Accounts payable	957		—			957
Accrued compensation and employee benefits	231		—			231
Accrued income taxes	49		—			49
Accrued expenses and other current liabilities	522		—			522
Long-term debt	1,315		—			1,315
Deferred income taxes	56		—			56
Pension and postretirement benefits	879		—			879
Deferred credits and other liabilities	124		(9		)	115
Total liabilities assumed	4,263		(9		)	4,254
Redeemable noncontrolling interests	96		(8		)	88
Noncontrolling interests	143		(1		)	142
Net assets and noncontrolling interests acquired	$	3,707	$	—		$	3,707

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Other intangible assets acquired include the following:

	Estimated Fair Value		Weighted-Average Useful Lives
Definite-lived intangible assets:
Customer platforms and relationships	$	39	10 years
Technology rights	41		10 years
Total definite-lived intangible assets	80
Indefinite-lived intangible assets:
Trade names and trademarks	55
Total	$	135

Other intangible assets acquired include the following:

	Estimated Fair Value		Weighted-Average Useful Lives
Definite-lived intangible assets:
Customer platforms and relationships	$	978	10 years
Technology rights	68		10 years
Packaged kits know-how	54		10 years
Catalogs	40		10 years
Licensing agreements	64		4.5 years
Land use rights	30		42.8 years
Total definite-lived intangible assets	1,234		10.5 years
Indefinite-lived intangible assets:
Trade names and trademarks	367
Total	$	1,601

Pro Forma Information

The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the Federal-Mogul Acquisition, and the related financing, if the transaction had occurred as of January 1, 2017. The pro forma results are not necessarily indicative of either the actual consolidated results had the Federal-Mogul Acquisition occurred on January 1, 2017 or of future consolidated operating results.

	For the Three Months Ended March 31,
	2019			2018
Net sales and operating revenues	$	4,484		$	4,680
Earnings (loss) before income taxes and noncontrolling interests	$	30		$	226
Net income (loss) attributable to Tenneco Inc.	$	(70	)	$	93
Basic earnings (loss) per share of common stock	$	(0.87	)	$	1.16
Diluted earnings (loss) per share of common stock	$	(0.87	)	$	1.16

Disposal Groups, Including Discontinued Operations

The related assets and liabilities were classified as held for sale as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Assets
Inventories	$	3	$	33
Other current assets	—		5
Long-lived assets	1		23
Total assets held for sale	$	4	$	61
Liabilities
Accounts payable	$	2	$	21
Accrued liabilities	—		7
Other liabilities	1		11
Total liabilities held for sale	$	3	$	39

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Restructuring Charges and Asset Impairments, Net (Tables)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of Restructuring

For the three months ended March 31, 2019 and 2018, restructuring charges, net and asset impairments by segment are as follows:

	Three Months Ended March 31,
	2019		2018
Clean Air	$	5	$	1
Powertrain	1		—
Ride Performance	13		8
Motorparts	4		3
Corporate	1		—
	$	24	$	12

Amounts related to activities that were charges to restructuring reserves, including costs incurred to support future structural cost reductions, by reportable segments are as follows:

	Three months ended March 31, 2019
	Reportable Segments
	Clean Air			Powertrain			Ride Performance			Motorparts			Total Reportable Segments			Corporate			Total
Balance at beginning of period	$	17		$	15		$	25		$	43		$	100		$	3		$	103
Provisions	5			1			13			4			23			1			24
Payments	(6		)	(3		)	(13		)	(14		)	(36		)	(2		)	(38		)
Balance at end of period	$	16		$	13		$	25		$	33		$	87		$	2		$	89

	Three months ended March 31, 2018
	Reportable Segments
	Clean Air			Powertrain		Ride Performance			Motorparts			Total Reportable Segments			Corporate		Total
Balance at beginning of period	$	14		$	—	$	7		$	4		$	25		$	—	$	25
Provisions	1			—		8			3			12			—		12
Payments	(5		)	—		(9		)	(2		)	(16		)	—		(16		)
Balance at end of period	$	10		$	—	$	6		$	5		$	21		$	—	$	21

The following table provides a summary of the Company's restructuring liabilities and related activity for each type of exit costs:

	Three months ended March 31, 2019									Three months ended March 31, 2018
	Employee Costs			Facility Closure and Other Costs			Total			Employee Costs			Facility Closure and Other Costs			Total
Balance at beginning of period	$	98		$	5		$	103		$	19		$	6		$	25
Provisions	11			13			24			10			2			12
Payments	(25		)	(13		)	(38		)	(13		)	(3		)	(16		)
Balance at end of period	$	84		$	5		$	89		$	16		$	5		$	21

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Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

At March 31, 2019 and December 31, 2018, inventory consists of the following:

	March 31, 2019		December 31, 2018
Finished goods	$	1,181	$	1,116
Work in process	526		562
Raw materials	450		457
Materials and supplies	109		110
	$	2,266	$	2,245

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Goodwill and Other Intangible Assets—Net (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table categorizes the Company’s goodwill by reporting unit according to the level of excess between the reporting unit’s fair value and carrying value giving effect to the first quarter impairment charges:

	Fair value exceeds
	carrying value	Goodwill
Reporting units 1-6	< 15%	$	354
Reporting units 7-9	> 15%	437
		$	791

At March 31, 2019 and December 31, 2018, goodwill consists of the following:

	Three Months Ended March 31, 2019
	Clean Air		Powertrain		Ride Performance			Motorparts			Total
Gross carrying amount at beginning of period	$	22	$	388	$	210		$	611		$	1,231
Measurement period adjustments	—		21		—			(67		)	(46		)
Acquisitions	—		—		28			—			28
Gross carrying amount at end of period	22		409		238			544			1,213
Accumulated impairment loss at beginning of period	—		—		(143		)	(219		)	(362		)
Impairment	—		—		(60		)	—			(60		)
Accumulated impairment loss at end of period	—		—		(203		)	(219		)	(422		)
Net carrying value at end of period	$	22	$	409	$	35		$	325		$	791

Schedule of Indefinite-Lived Intangible Assets

At March 31, 2019 and December 31, 2018, the Company's intangible assets consist of the following:

		March 31, 2019							December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived intangible assets:
Customer relationships and platforms	10 years	$	1,019	$	(50	)	$	969	$	964	$	(24	)	$	940
Customer contract	10 years	8		(6		)	2		8		(5		)	3
Patents	10 to 17 years	1		(1		)	—		1		(1		)	—
Technology rights	10 to 30 years	135		(28		)	107		98		(27		)	71
Packaged kits know-how	10 years	54		(3		)	51		36		(1		)	35
Catalogs	10 years	40		(2		)	38		—		—			—
Licensing agreements	3 to 5 years	63		(7		)	56		66		(3		)	63
Land use rights	28 to 46 years	45		(2		)	43		44		(2		)	42
		1,365		(99		)	1,266		1,217		(63		)	1,154
Indefinite-lived intangible assets:
Trade names and trademarks		421		—			421		365		—			365
Total		$	1,786	$	(99	)	$	1,687	$	1,582	$	(63	)	$	1,519

Schedule of Finite-Lived Intangible Assets

At March 31, 2019 and December 31, 2018, the Company's intangible assets consist of the following:

		March 31, 2019							December 31, 2018
	Useful Lives	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Definite-lived intangible assets:
Customer relationships and platforms	10 years	$	1,019	$	(50	)	$	969	$	964	$	(24	)	$	940
Customer contract	10 years	8		(6		)	2		8		(5		)	3
Patents	10 to 17 years	1		(1		)	—		1		(1		)	—
Technology rights	10 to 30 years	135		(28		)	107		98		(27		)	71
Packaged kits know-how	10 years	54		(3		)	51		36		(1		)	35
Catalogs	10 years	40		(2		)	38		—		—			—
Licensing agreements	3 to 5 years	63		(7		)	56		66		(3		)	63
Land use rights	28 to 46 years	45		(2		)	43		44		(2		)	42
		1,365		(99		)	1,266		1,217		(63		)	1,154
Indefinite-lived intangible assets:
Trade names and trademarks		421		—			421		365		—			365
Total		$	1,786	$	(99	)	$	1,687	$	1,582	$	(63	)	$	1,519

Finite-lived Intangible Assets Amortization Expense

The expected future amortization expense for the Company's definite-lived intangible assets is as follows:

	2019		2020		2021		2022		2023		2024 and thereafter		Total
Expected amortization expense	$	106	$	140	$	139	$	134	$	131	$	616	$	1,266

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Investment in Nonconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following tables present summarized aggregated financial information of the Company's nonconsolidated affiliates for the three months ended March 31, 2019. The amounts represent 100% of the interest in the nonconsolidated affiliates and not the Company's proportionate share:

	Three Months ended March 31, 2019
Statements of Income	Otomotiv A.S.		Anqing TP Goetze		Other		Total
Sales	$	91	$	39	$	125	$	255
Gross profit	$	21	$	16	$	23	$	60
Income from continuing operations	$	19	$	11	$	13	$	43
Net income	$	18	$	9	$	11	$	38

The Company's ownership interest in affiliates accounted for under the equity method is as follows:

	March 31, 2019		December 31, 2018
Anqing TP Goetze Piston Ring Company Limited (China)	35.7	%	35.7	%
Anqing TP Powder Metallurgy Co., Ltd (China)	20.0	%	20.0	%
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)	50.0	%	50.0	%
Farloc Argentina SAIC Y F (Argentina)	23.9	%	23.9	%
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)	50.0	%	50.0	%
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)	25.0	%	25.0	%
Federal-Mogul TP Liners, Inc. (USA)	46.0	%	46.0	%
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)	49.0	%	49.0	%
JURID do Brasil Sistemas Automotivos Ltda. (Brazil)	19.9	%	19.9	%
KB Autosys Co., Ltd. (Korea)	33.6	%	33.6	%
Montagewerk Abgastechnik Emden GmbH (Germany)	50.0	%	50.0	%

The Company's investments in its nonconsolidated affiliates at March 31, 2019 and December 31, 2018 are:

	March 31, 2019		December 31, 2018
Investments in nonconsolidated affiliates	$	528	$	544

The following table represents the activity from the Company's investments in its nonconsolidated affiliates for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019		2018
Equity earnings (losses) of nonconsolidated affiliates, net of tax	$	16	$	—
Cash dividends received from nonconsolidated affiliates	$	15	$	—

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summarization for Foreign Currency Forward Purchase and Sale Contracts

The following table summarizes by position the notional amounts for foreign currency forward contracts as of March 31, 2019 (all of which mature in 2019):

	Notional Amount
Long positions	$	(33	)
Short positions	$	33

Schedule of Derivative Instruments

The following table is a summary of the carrying value of derivative and non-derivative instruments designated as hedges as of March 31, 2019:

		Carrying Value
	Balance sheet classification	March 31, 2019		December 31, 2018
Commodity price hedge contracts designated as cash flow hedges	Prepayments and other current assets	$	2	$	—
Commodity price hedge contracts designated as cash flow hedges	Accrued expenses and other current liabilities	$	—	$	2
Foreign currency borrowings designated as net investment hedges	Long-term debt	$	862	$	863

The following table represents the effects before reclassification into net income of derivative and non-derivative instruments designated as hedges in accumulated other comprehensive income (loss) as of March 31, 2019:

Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion):	Three months ended March 31, 2019
Commodity price hedge contracts designated as cash flow hedges	$	4
Foreign currency borrowings designated as net investment hedges	$	(19	)

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Carrying and Estimated Fair Value

Estimated fair values of the Company's outstanding debt were:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	5,386	$	5,285	$	5,307	$	5,218

The following table presents assets and liabilities included in the Company's condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

		March 31, 2019				December 31, 2018
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount			Fair Value
Derivative instruments:
Equity swap agreement	Level 2	$	3	$	3	$	4		$	4
Commodity contracts	Level 2	$	2	$	2	$	(2	)	$	(2	)

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Debt and Other Financing Arrangements (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Summary of Long-term Debt Obligations

A summary of our long-term debt obligations at March 31, 2019 and December 31, 2018 is set forth in the following table:

	March 31, 2019				December 31, 2018
	Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
Credit Facilities
Revolver Borrowings
Due 2023	$	132	$	132	$	—	$	—
Term Loans
LIBOR plus 1.75% Term Loan A due 2019 through 2023	1,679		1,670		1,700		1,691
LIBOR plus 2.75% Term Loan B due 2019 through 2025	1,696		1,628		1,700		1,629
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		222		225		222
$500 million of 5.000% Senior Notes due 2026	500		493		500		493
Senior Secured Notes
415 million 4.875% Euro Fixed Rate Notes due 2022	466		483		476		496
300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024	337		341		344		349
350 million of 5.000% Euro Fixed Rate Notes due 2024	393		417		401		427
Other debt, primarily foreign instruments	105		104		108		106
			5,490				5,413
Less - maturities classified as current			73				73
Total long-term debt			$	5,417			$	5,340

(1) Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were $86 million and $90 million as of March 31, 2019 and December 31, 2018. Total unamortized debt (premium) discount, net was $(45) million and $(49) million as of March 31, 2019 and December 31, 2018.

Financing Arrangements

The Company had availability on its credit facilities as of March 31, 2019 as follows:

	Credit Facilities as of March 31, 2019
	Term	Available(b)
	(in billions)
Tenneco Inc. revolving credit facility (a)	2023	$	1.3
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2018-2028	0.1
		$	1.4

^(a)  The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.

^(b)  Letters of credit reduce the available borrowings under the revolving credit facility, as of March 31, 2019 the revolving credit facility had $20 million in letters of credit outstanding.

Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale [Table Text Block]

The amounts outstanding for these factoring and drafting arrangements as of March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
	(in billions)
Accounts receivable outstanding and derecognized	$	1.1	$	1.0

The deferred purchase price receivable as of March 31, 2019 and December 31, 2018 is as follows:

	March 31, 2019		December 31, 2018
Deferred purchase price receivable	$	58	$	154

Proceeds from the factoring of accounts receivable qualifying as sales are as follows:

	Three months ended March 31,
	2019		2018
	(in billions)
Proceeds from factoring qualifying as sales	$	1.2	$	0.8

Financing charges associated with the factoring of receivables are as follows:

	Three months ended March 31,
	2019		2018
Financing charges on sale of receivables(a)	$	8	$	3
(a) Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).

The Company has securitization programs for some of its accounts receivable, with limited recourse provisions. Borrowings on these securitization programs, which are recorded in short-term debt, at March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019		December 31, 2018
Borrowings on securitization programs	$	3	$	6

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Pension Plans, Postretirement and Other Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2019

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost (credit) for the three months ended March 31, 2019 and 2018 are as follows:

	Three Months Ended March 31,
	Pension												Other Postretirement Benefits
	2019						2018
	U.S.			Non-U.S.			U.S.			Non-U.S.			2019			2018
Service cost	$	1		$	6		$	—		$	3		$	—		$	—
Interest cost	13			7			3			3			3			2
Expected return on plan assets	(17		)	(5		)	(4		)	(5		)	—			—
Net amortization:
Actuarial loss	1			1			1			2			1			1
Prior service cost (credit)	—			—			—			—			(2		)	—
Net pension and postretirement costs (credits)	$	(2	)	$	9		$	—		$	3		$	2		$	3

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Loss Contingencies

The Company maintains the aggregated estimated share of environmental remediation costs for all these sites on a discounted basis in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	10	$	12
Deferred credits and other liabilities	29		28
	$	39	$	40

The Company's expected payments of environmental remediation costs for non-indemnified locations are estimated to be approximately:

	2019		2020		2021		2022		2023		2024 and thereafter
Expected payments	$	8	$	6	$	3	$	2	$	2	$	17

Schedule of Asset Retirement Obligations

The Company maintains ARO liabilities in the condensed consolidated balance sheets as follows:

	March 31, 2019		December 31, 2018
Accrued expenses and other current liabilities	$	3	$	3
Deferred credits and other liabilities	12		12
	$	15	$	15

Warranty Accrual Table

Below is a table that shows the activity in the warranty accrual accounts:

	Three months ended March 31,
	2019			2018
Balance at beginning of period	$	45		$	26
Accruals related to product warranties	5			6
Reductions for payments made	(2		)	(3		)
Foreign currency	—			—
Balance at end of period	$	48		$	29

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Lease costs

The components of lease cost were as follows:

	Three months ended March 31, 2019
Operating lease cost	$	33
Short-term lease expense	1
Variable lease cost	8
Total lease cost	$	42

Other information related to leases was as follows:

	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	41

	March 31, 2019
	Weighted average remaining lease term	Weighted average discount rate
Operating leases	5.29 years	4.26	%
Finance leases	3.23 years	4.85	%

Assets and Liabilities

Supplemental balance sheet information related to leases was as follows:

	March 31, 2019
Operating leases
Operating lease right-of-use assets (a)	$	362
Other current liabilities (b)	$	101
Other long-term liabilities (c)	256
Total operating lease liabilities	$	357
Finance leases
Property, plant and equipment, gross	$	2
Accumulated depreciation	—
Total finance lease right-of-use assets	$	2
Other current liabilities (b)	$	1
Other long-term liabilities (c)	1
Total finance lease liabilities	$	2
(a) Included in "Other assets" in the condensed consolidated balance sheets.
(b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets.
(c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets.

Operating lease liabilities

Maturities of lease liabilities under non-cancellable leases as of March 31, 2019 were as follows:

Year ending December 31	Operating leases			Finance leases
2019 (excluding the three months ended March 31, 2019)	$	85		$	1
2020	91			1
2021	69			—
2022	48			—
2023	34			—
Thereafter	55			—
Total future undiscounted lease payments	382			2
Less imputed interest	(25		)	—
Total reported lease liability	$	357		$	2

Finance lease liabilities

Maturities of lease liabilities under non-cancellable leases as of March 31, 2019 were as follows:

Year ending December 31	Operating leases			Finance leases
2019 (excluding the three months ended March 31, 2019)	$	85		$	1
2020	91			1
2021	69			—
2022	48			—
2023	34			—
Thereafter	55			—
Total future undiscounted lease payments	382			2
Less imputed interest	(25		)	—
Total reported lease liability	$	357		$	2

Schedule of Future Minimum Payments Due

Future minimum operating lease payments at December 31, 2018 are as follows:

2019	$	120
2020	100
2021	86
2022	68
2023	56
Beyond 2023	53
	$	483

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

The total share-based compensation expense was as follows:

	Three Months Ended March 31,
	2019			2018
Cash-settled share-based compensation expense (benefit)	$	(1	)	$	(1	)
Share-settled share-based compensation expense (benefit)	7			5
	$	6		$	4

Nonvested Restricted Shares

The following table reflects the status for all nonvested restricted shares, share-settled RSUs, and PSUs for the period indicated:

	Restricted Stock				Share-Settled RSUs				PSUs
	Shares		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value		Units		Weighted Avg. Grant Date Fair Value
Nonvested Restricted Shares
Nonvested balance at beginning of period	178,550		$	55.46	440,403		$	47.99	227,049		$	49.18
Granted	34,009		34.66		856,808		34.25		628,990		24.77
Vested	(166,444	)	49.86		(83,109	)	55.00		—		—
Forfeited	(1,262	)	61.61		(17,772	)	42.82		(15,065	)	50.75
Nonvested balance at end of period	44,853		$	62.49	1,196,330		$	38.22	840,974		$	34.44

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of Stock by Class

Total common stock outstanding and changes in common stock issued are as follows:

	Class A Common Stock				Class B Common Stock
	Three Months March 31				Three Months March 31
	2019		2018		2019
Shares issued at beginning of period	71,675,379		66,033,509		23,793,669
Issuance (repurchased) pursuant to benefit plans	120,622		(15,906	)	—
Restricted stock forfeited and withheld for taxes	(54,293	)	(5,108	)	—
Stock options exercised	8,438		4,779		—
Shares issued at end of period	71,750,146		66,017,274		23,793,669
Treasury stock	14,592,888		14,592,888		—
Total shares outstanding	57,157,258		51,424,386		23,793,669

Schedule of AOCI

The following represents the Company's changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31
	2019			2018
Foreign currency translation adjustments and other
Balance at beginning of period	$	(395	)	$	(263	)
Other comprehensive income (loss) before reclassifications adjustments	27			19
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	(368		)	(244		)
Income tax provision (benefit)	2			—
Balance at end of period	$	(366	)	$	(244	)
Pensions and other postretirement benefits
Balance at beginning of period	$	(297	)	$	(275	)
Other comprehensive income (loss) before reclassifications	—			—
Reclassification from other comprehensive income (loss)	1			4
Other comprehensive income (loss)	(296		)	(271		)
Income tax provision (benefit)	—			(1		)
Balance at end of period	$	(296	)	$	(272	)
Cash flow hedge instruments
Balance at beginning of period	$	—		$	—
Other comprehensive income (loss) before reclassifications	4			—
Reclassification from other comprehensive income (loss)	—			—
Other comprehensive income (loss)	4			—
Income tax provision (benefit)	—			—
Balance at end of period	$	4		$	—
Other comprehensive income (loss) attributable to noncontrolling interests	$	6		$	8

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information

The following table summarizes certain of the Company's segment information:

	Reportable Segments
	Clean Air		Powertrain		Ride Performance			Motorparts		Total		Corporate			Reclass & Elims			Total
For the Three Months Ended March 31, 2019
Revenues from external customers	$	1,779	$	1,175	$	733		$	797	$	4,484	$	—		$	—		$	4,484
Intersegment revenues	$	—	$	46	$	46		$	11	$	103	$	—		$	(103	)	$	—
EBITDA, including noncontrolling interests	$	131	$	113	$	(45	)	$	45	$	244	$	(99	)	$	—		$	145
For the Three Months Ended March 31, 2018
Revenues from external customers	$	1,756	$	—	$	513		$	312	$	2,581	$	—		$	—		$	2,581
Intersegment revenues	$	—	$	—	$	6		$	—	$	6	$	—		$	(6	)	$	—
EBITDA, including noncontrolling interests	$	157	$	—	$	24		$	45	$	226	$	(44	)	$	—		$	182

Segment EBITDA including noncontrolling interests and the reconciliation to earnings before interest expense, income taxes, and noncontrolling interests are as follow:

	Three Months Ended March 31,
	2019			2018
EBITDA including noncontrolling interests by Segments:
Clean Air	$	131		$	157
Powertrain	113			—
Ride Performance	(45		)	24
Motorparts	45			45
Corporate	(99		)	(44		)
Total EBITDA including noncontrolling interests	145			182
Less: Depreciation and amortization	(169		)	(60		)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24		)	122
Less: Interest expense	(81		)	(23		)
Less: Income tax expense (benefit)	—			(25		)
Net income (loss)	$	(105	)	$	74

Disaggregation of Revenue

Revenue from contracts with customers is disaggregated by customer type and geography, 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 tables, revenue is disaggregated accordingly:

	Reportable Segments
By Customer Type	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
OE - Substrate	$	706	$	—	$	—	$	—	$	706
OE - Value add	1,073		1,175		733		—		2,981
Aftermarket	—		—		—		797		797
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
OE - Substrate	$	652	$	—	$	—	$	—	$	652
OE - Value add	1,104		—		513		—		1,617
Aftermarket	—		—		—		312		312
Total	$	1,756	$	—	$	513	$	312	$	2,581

	Reportable Segments
By Geography	Clean Air		Powertrain		Ride Performance		Motorparts		Total
Three Months Ended March 31, 2019
North America	$	793	$	405	$	232	$	507	$	1,937
Europe, Middle East and Africa	641		575		378		237		1,831
Rest of world	345		195		123		53		716
Total	$	1,779	$	1,175	$	733	$	797	$	4,484
Three Months Ended March 31, 2018
North America	$	768	$	—	$	180	$	188	$	1,136
Europe, Middle East and Africa	657		—		225		108		990
Rest of world	331		—		108		16		455
Total	$	1,756	$	—	$	513	$	312	$	2,581

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

The following table is a summary of amounts due to and from the Company's related parties as of March 31, 2019 and December 31, 2018:

	March 31, 2019				December 31, 2018
	Receivables		Payables and accruals		Receivables		Payables and accruals
Icahn Automotive Group LLC	$	59	$	1	$	60	$	12
Anqing TP Goetze Piston Ring Company Limited	$	1	$	16	$	1	$	22
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	1	$	1
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	1	$	2
Federal-Mogul Powertrain Otomotiv A.S.	$	16	$	27	$	9	$	16
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	1	$	—	$	1
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	—	$	3	$	—	$	—
Federal-Mogul TP Liners, Inc.	$	2	$	8	$	2	$	7
Montagewerk Abgastechnik Emden GmbH	$	—	$	1	$	—	$	—

The following table is a summary of the net sales, purchases, and royalty and other income from related parties for the three months ended March 31, 2019:

	Three Months Ended March 31, 2019
	Net Sales		Purchases		Royalty and Other Income
Icahn Automotive Group LLC	$	43	$	—	$	1
PSC Metals, Inc.	$	1	$	—	$	—
Anqing TP Goetze Piston Ring Company Limited	$	—	$	14	$	—
Anqing TP Powder Metallurgy Company Limited	$	—	$	1	$	—
Dongsuh Federal-Mogul Industrial Co., Ltd.	$	1	$	2	$	—
Federal-Mogul Powertrain Otomotiv A.S.	$	27	$	55	$	1
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.	$	—	$	3	$	—
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.	$	1	$	4	$	—
Federal-Mogul TP Liners, Inc.	$	4	$	—	$	—
Montagewerk Abgastechnik Emden GmbH	$	2	$	—	$	—

XML

Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,691		$	2,793		$	—		$	—		$	4,484
Affiliated companies	218			281			—			(499		)	—
	1,909			3,074			—			(499		)	4,484
Costs and expenses
Cost of sales	1,676			2,688			(1		)	(499		)	3,864
Restructuring charges and asset impairments	8			16			—			—			24
Goodwill impairment charge	33			27			—			—			60
Engineering, research, and development	39			53			—			—			92
Selling, general, and administrative	178			135			3			—			316
Depreciation and amortization	83			86			—			—			169
	2,017			3,005			2			(499		)	4,525
Other expense (income)
Non-service postretirement benefit costs	—			2			—			—			2
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(1		)	(15		)	—			—			(16		)
Other (income) expense, net	(7		)	4			—			—			(3		)
	(8		)	(9		)	—			—			(17		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(100		)	78			(2		)	—			(24		)
Interest expense:
External, net of interest capitalized	11			5			65			—			81
Affiliated companies, net of interest income	(8		)	8			—			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(103		)	65			(67		)	—			(105		)
Income tax expense (benefit)	(18		)	30			(12		)	—			—
Equity in net income (loss) from affiliated companies	21			—			62			(83		)	—
Net income (loss)	(64		)	35			7			(83		)	(105		)
Less: Net income (loss) attributable to noncontrolling interests	—			12			—			—			12
Net income (loss) attributable to Tenneco Inc.	$	(64	)	$	23		$	7		$	(83	)	$	(117	)
Comprehensive income (loss) attributable to Tenneco Inc.	$	(68	)	$	61		$	7		$	(83	)	$	(83	)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,032		$	1,549		$	—		$	—		$	2,581
Affiliated companies	123			156			—			(279		)	—
	1,155			1,705			—			(279		)	2,581
Costs and expenses
Cost of sales	1,007			1,465			—			(279		)	2,193
Restructuring charges and asset impairments	1			11			—			—			12
Goodwill impairment charge	—			—			—			—			—
Engineering, research, and development	18			22			—			—			40
Selling, general, and administrative	73			78			—			—			151
Depreciation and amortization	23			37			—			—			60
	1,122			1,613			—			(279		)	2,456
Other expense (income)
Non-service postretirement benefit costs	3			—			—			—			3
Other (income) expense, net	9			(9		)	—			—			—
	12			(9		)	—			—			3
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	21			101			—			—			122
Interest expense:
External, net of interest capitalized	10			3			10			—			23
Affiliated companies, net of interest income	(3		)	—			3			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	14			98			(13		)	—			99
Income tax (benefit) expense	1			24			—			—			25
Equity in net income (loss) from affiliated companies	48			—			73			(121		)	—
Net income (loss)	61			74			60			(121		)	74
Less: Net income (loss) attributable to noncontrolling interests	—			14			—			—			14
Net income (loss) attributable to Tenneco Inc.	$	61		$	60		$	60		$	(121	)	$	60
Comprehensive income (loss) attributable to Tenneco Inc.	$	64		$	79		$	60		$	(121	)	$	82

Balance Sheet

BALANCE SHEETS

	March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	143		$	210		$	4		$	—		$	357
Restricted cash	—			6			—			—			6
Receivables, net	1,037			1,806			—			—			2,843
Inventories, net	964			1,302			—			—			2,266
Prepayments and other current assets	217			311			27			—			555
Total current assets	2,361			3,635			31			—			6,027
Property, plant and equipment, net	1,149			2,361			9			—			3,519
Investment in affiliated companies	1,544			—			4,907			(6,451		)	—
Long-term receivables, net	8			1			—			—			9
Goodwill	462			329			—			—			791
Intangibles, net	1,000			685			2			—			1,687
Investments in nonconsolidated affiliates	43			485			—			—			528
Deferred income taxes	252			208			11			—			471
Other assets	205			379			—			—			584
Total assets	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	14		$	130		$	15		$	—		$	159
Accounts payable	996			1,863			2			—			2,861
Accrued compensation and employee benefits	75			288			—			—			363
Accrued income taxes	(3		)	33			—			—			30
Accrued expenses and other current liabilities	395			550			49			—			994
Total current liabilities	1,477			2,864			66			—			4,407
Long-term debt	133			29			5,255			—			5,417
Intercompany due to (due from)	2,072			(64		)	(2,008		)	—			—
Deferred income taxes	—			110			—			—			110
Pension, postretirement benefits and other liabilities	881			802			19			—			1,702
Commitments and contingencies
Total liabilities	4,563			3,741			3,332			—			11,636
Redeemable noncontrolling interests	—			153			—			—			153
Tenneco Inc. shareholders’ equity	2,461			3,990			1,628			(6,451		)	1,628
Noncontrolling interests	—			199			—			—			199
Total equity	2,461			4,189			1,628			(6,451		)	1,827
Total liabilities, redeemable noncontrolling interests and equity	$	7,024		$	8,083		$	4,960		$	(6,451	)	$	13,616

BALANCE SHEETS

	December 31, 2018
	Guarantor Subsidiaries		Nonguarantor Subsidiaries				Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	329	$	364			$	4		$	—		$	697
Restricted cash	—		5				—			—			5
Receivables, net	943		1,629				—			—			2,572
Inventories, net	958		1,287				—			—			2,245
Prepayments and other current assets	254		311				25			—			590
Total current assets	2,484		3,596				29			—			6,109
Property, plant and equipment, net	1,131		2,361				9			—			3,501
Investment in affiliated companies	1,421		—				4,856			(6,277		)	—
Long-term receivables, net	9		1				—			—			10
Goodwill	263		383				223			—			869
Intangibles, net	1,007		510				2			—			1,519
Investments in nonconsolidated affiliates	43		501				—			—			544
Deferred income taxes	255		200				12			—			467
Other assets	48		180				—			(15		)	213
Total assets	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	1	$	152			$	—		$	—		$	153
Accounts payable	858		1,894				7			—			2,759
Accrued compensation and employee benefits	88		255				—			—			343
Accrued income taxes	—		52				27			(15		)	64
Accrued expenses and other current liabilities	436		488				77			—			1,001
Total current liabilities	1,383		2,841			—	111			(15		)	4,320
Long-term debt	3		32				5,305			—			5,340
Intercompany due to (due from)	2,726		(215		)		(2,511		)	—			—
Deferred income taxes	—		88				—			—			88
Postretirement benefits and other liabilities	225		705				500			—			1,430
Commitments and contingencies
Total liabilities	4,337		3,451				3,405			(15		)	11,178
Redeemable noncontrolling interests	—		138				—			—			138
Tenneco Inc. shareholders’ equity	2,324		3,953				1,726			(6,277		)	1,726
Noncontrolling interests	—		190				—			—			190
Total equity	2,324		4,143				1,726			(6,277		)	1,916
Total liabilities, redeemable noncontrolling interests and equity	$	6,661	$	7,732			$	5,131		$	(6,292	)	$	13,232

Statement of Cash Flows

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(29	)	$	(75	)	$	(46	)	$	—		$	(150	)
Investing Activities
Acquisition of business, net of cash acquired	—			(158		)	—			—		—	(158		)
Proceeds from sale of assets	—			1			—			—			1
Cash payments for property, plant and equipment	(60		)	(150		)	—			—			(210		)
Net proceeds from sale of business	6			16			—			—			22
Other	2			—			—			—			2
Proceeds from deferred purchase price of factored receivables	—			60			—			—			60
Net cash used in investing activities	(52		)	(231		)	—			—			(283		)
Financing Activities
Cash dividends	—			—			(20		)	—			(20		)
Repayment of term loans and notes	(1		)	(37		)	(26		)	—			(64		)
Proceeds from term loans and notes	—			28			—			—			28
Issuance (repurchase) of common shares	—			—			(2		)	—			(2		)
Decrease in bank overdrafts	—			(1		)	—			—			(1		)
Borrowings on revolving lines of credit	1,856			54			209			—			2,119
Payments on revolving lines of credit	(1,724		)	(63		)	(194		)	—			(1,981		)
Other	—			(3		)	—			—			(3		)
Intercompany dividends and net (decrease) increase in intercompany obligations	(236		)	157			79			—			—
Distribution to noncontrolling interests partners	—			(1		)	—			—			(1		)
Net cash (used in) provided by financing activities	(105		)	134			46			—			75
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			19			—			—			19
Increase (decrease) in cash, cash equivalents and restricted cash	(186		)	(153		)	—			—			(339		)
Cash, cash equivalents and restricted cash, January 1	329			369			4			—			702
Cash, cash equivalents and restricted cash, March 31	$	143		$	216		$	4		$	—		$	363

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(27	)	$	32		$	(5	)	$	—	$	—
Investing Activities
Proceeds from sale of assets	—			2			—			—		2
Cash payments for property, plant and equipment	(40		)	(49		)	—			—		(89		)
Proceeds from deferred purchase price of factored receivables	—			34			—			—		34
Net cash used in investing activities	(40		)	(13		)	—			—		(53		)
Financing Activities
Proceeds from term loans and notes	—			6			—			—		6
Repayments of term loans and notes	(5		)	(8		)	—			—		(13		)
Borrowings on revolving lines of credit	1,093			8			166			—		1,267
Payments on revolving lines of credit	(1,026		)	(12		)	(151		)	—		(1,189		)
Issuance (repurchase) of common shares	—			—			(2		)	—		(2		)
Cash dividends	—			—			(13		)	—		(13		)
Net increase (decrease) in bank overdrafts	—			(4		)	—			—		(4		)
Other	—			(30		)	—			—		(30		)
Intercompany dividends and net (decrease) increase in intercompany obligations	3			(7		)	4			—		—
Net cash (used in) provided by financing activities	65			(47		)	4			—		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			3			—			—		3
Increase (decrease) in cash, cash equivalents and restricted cash	(2		)	(25		)	(1		)	—		(28		)
Cash, cash equivalents and restricted cash, January 1	7			311			—			—		318
Cash, cash equivalents and restricted cash, March 31	$	5		$	286		$	(1	)	$	—	$	290

XML

Description of Business - Additional Information (Details)	Mar. 31, 2019	Jan. 10, 2019	Oct. 01, 2018
Öhlins Intressenter AB
Business Acquisition [Line Items]
Percentage of business acquired	90.50%	90.50%
Federal-Mogul
Business Acquisition [Line Items]
Percentage of business acquired			100.00%

XML

Summary of Accounting Policies - Redeemable Non Controlling Interest (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Redeemable Noncontrolling Interest [Roll Forward]
Balance at beginning of period	$ 138	$ 42
Net income (loss) attributable to redeemable noncontrolling interests	5	7
Other comprehensive income (loss)	2	1
Acquisition and other	16	0
Purchase accounting measurement period adjustment	(8)	0
Balance at end of period	$ 153	$ 50

XML

Summary of Accounting Policies - Additional Information (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) Segment	Mar. 31, 2018 USD ($) Segment	Dec. 31, 2019 Segment	Jan. 01, 2019 USD ($)
Redeemable Noncontrolling Interest [Line Items]
Number of operating segments | Segment	2	3
Purchase accounting measurement period adjustment	$ 8	$ 0
ROU asset	362
Lease liability	357
Federal-Mogul
Redeemable Noncontrolling Interest [Line Items]
Purchase accounting measurement period adjustment	$ 8
ASU 2016-02
Redeemable Noncontrolling Interest [Line Items]
ROU asset				$ 387
Lease liability				383
Reduction in favorable leases				$ 4
Forecast
Redeemable Noncontrolling Interest [Line Items]
Number of operating segments | Segment			2

XML

Summary of Accounting Policies - Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average shares of common stock outstanding (in shares)	80,874,637	51,211,643
Dilutive shares outstanding (in shares)	80,874,637	51,501,643
Anti-dilutive shares (in shares)	1,714,950	174
Restricted stock, PSUs and RSUs
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities (in shares)	0	216,351
Stock options
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities (in shares)	0	73,649

XML

Summary of Accounting Policies - Error Correction, Income Statement (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales and operating revenues	$ 4,484,000,000	$ 2,581,000,000
Cost of sales (exclusive of depreciation and amortization)	3,864,000,000	2,193,000,000
Selling, general, and administrative	316,000,000	151,000,000
Depreciation and amortization	169,000,000	60,000,000
Engineering, research, and development	92,000,000	40,000,000
Restructuring charges and asset impairments	24,000,000	12,000,000
Costs and expenses	4,525,000,000	2,456,000,000
Loss on sale of receivables		0
Non-service pension and other postretirement benefit costs (credits)	2,000,000	3,000,000
Other expense (income), net	(3,000,000)	0
Total other expense (income)	(17,000,000)	3,000,000
Earnings before interest expense, income taxes, and noncontrolling interests	(24,000,000)	122,000,000
Interest expense	81,000,000	23,000,000
Earnings (loss) before income taxes and noncontrolling interests	(105,000,000)	99,000,000
Income tax expense (benefit)	0	25,000,000
Net income (loss)	(105,000,000)	74,000,000
Less: Net income (loss) attributable to noncontrolling interests	12,000,000	14,000,000
Net income (loss) attributable to Tenneco Inc.	$ (117,000,000)	$ 60,000,000
Basic earnings (loss) per share of common stock (in dollars per share)	$ (1.44)	$ 1.17
Diluted earnings (loss) per share of common stock (in dollars per share)	$ (1.44)	$ 1.17
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales and operating revenues		$ 2,574,000,000
Cost of sales (exclusive of depreciation and amortization)		2,198,000,000
Selling, general, and administrative		153,000,000
Depreciation and amortization		59,000,000
Engineering, research, and development		41,000,000
Restructuring charges and asset impairments		0
Costs and expenses		2,451,000,000
Loss on sale of receivables		3,000,000
Non-service pension and other postretirement benefit costs (credits)		0
Other expense (income), net		3,000,000
Total other expense (income)		6,000,000
Earnings before interest expense, income taxes, and noncontrolling interests		117,000,000
Interest expense		20,000,000
Earnings (loss) before income taxes and noncontrolling interests		97,000,000
Income tax expense (benefit)		25,000,000
Net income (loss)		72,000,000
Less: Net income (loss) attributable to noncontrolling interests		14,000,000
Net income (loss) attributable to Tenneco Inc.		$ 58,000,000
Basic earnings (loss) per share of common stock (in dollars per share)		$ 1.13
Diluted earnings (loss) per share of common stock (in dollars per share)		$ 1.13
Reclasses
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales and operating revenues		$ 0
Cost of sales (exclusive of depreciation and amortization)		(9,000,000)
Selling, general, and administrative		(2,000,000)
Depreciation and amortization		0
Engineering, research, and development		(1,000,000)
Restructuring charges and asset impairments		12,000,000
Costs and expenses		0
Loss on sale of receivables		(3,000,000)
Non-service pension and other postretirement benefit costs (credits)		3,000,000
Other expense (income), net		(3,000,000)
Total other expense (income)		(3,000,000)
Earnings before interest expense, income taxes, and noncontrolling interests		3,000,000
Interest expense		3,000,000
Earnings (loss) before income taxes and noncontrolling interests		0
Income tax expense (benefit)
Net income (loss)		0
Net income (loss) attributable to Tenneco Inc.		$ 0
Basic earnings (loss) per share of common stock (in dollars per share)		$ 0.00
Diluted earnings (loss) per share of common stock (in dollars per share)		$ 0.00
As Reclassified
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales and operating revenues		$ 2,574,000,000
Cost of sales (exclusive of depreciation and amortization)		2,189,000,000
Selling, general, and administrative		151,000,000
Depreciation and amortization		59,000,000
Engineering, research, and development		40,000,000
Restructuring charges and asset impairments		12,000,000
Costs and expenses		2,451,000,000
Loss on sale of receivables		0
Non-service pension and other postretirement benefit costs (credits)		3,000,000
Other expense (income), net		0
Total other expense (income)		3,000,000
Earnings before interest expense, income taxes, and noncontrolling interests		120,000,000
Interest expense		23,000,000
Earnings (loss) before income taxes and noncontrolling interests		97,000,000
Income tax expense (benefit)		25,000,000
Net income (loss)		72,000,000
Less: Net income (loss) attributable to noncontrolling interests		14,000,000
Net income (loss) attributable to Tenneco Inc.		$ 58,000,000
Basic earnings (loss) per share of common stock (in dollars per share)		$ 1.13
Diluted earnings (loss) per share of common stock (in dollars per share)		$ 1.13
Revisions
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales and operating revenues		$ 7,000,000
Cost of sales (exclusive of depreciation and amortization)		4,000,000
Selling, general, and administrative		0
Depreciation and amortization		1,000,000
Engineering, research, and development		0
Restructuring charges and asset impairments		0
Costs and expenses		5,000,000
Loss on sale of receivables		0
Non-service pension and other postretirement benefit costs (credits)		0
Other expense (income), net		0
Total other expense (income)		0
Earnings before interest expense, income taxes, and noncontrolling interests		2,000,000
Interest expense		0
Earnings (loss) before income taxes and noncontrolling interests		2,000,000
Income tax expense (benefit)		0
Net income (loss)		2,000,000
Less: Net income (loss) attributable to noncontrolling interests		0
Net income (loss) attributable to Tenneco Inc.		$ 2,000,000
Basic earnings (loss) per share of common stock (in dollars per share)		$ 0.04
Diluted earnings (loss) per share of common stock (in dollars per share)		$ 0.04

XML

Summary of Accounting Policies - Error Correction, Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income	$ (105)	$ 74
Foreign currency translation adjustments	35	27
Defined benefit plans	1	3
Other comprehensive income (loss) — net of tax	40	30
Comprehensive income (loss)	(65)	104
Less: Comprehensive income (loss) attributable to noncontrolling interests	18	22
Comprehensive income (loss) attributable to common shareholders	$ (83)	82
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		72
Foreign currency translation adjustments		27
Defined benefit plans		3
Other comprehensive income (loss) — net of tax		30
Comprehensive income (loss)		102
Less: Comprehensive income (loss) attributable to noncontrolling interests		22
Comprehensive income (loss) attributable to common shareholders		80
Reclasses
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		0
Foreign currency translation adjustments		0
Defined benefit plans		0
Other comprehensive income (loss) — net of tax		0
Comprehensive income (loss)		0
Less: Comprehensive income (loss) attributable to noncontrolling interests		0
Comprehensive income (loss) attributable to common shareholders		0
As Reclassified
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		72
Foreign currency translation adjustments		27
Defined benefit plans		3
Other comprehensive income (loss) — net of tax		30
Comprehensive income (loss)		102
Less: Comprehensive income (loss) attributable to noncontrolling interests		22
Comprehensive income (loss) attributable to common shareholders		80
Revisions
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income		2
Foreign currency translation adjustments		0
Defined benefit plans		0
Other comprehensive income (loss) — net of tax		0
Comprehensive income (loss)		2
Less: Comprehensive income (loss) attributable to noncontrolling interests		0
Comprehensive income (loss) attributable to common shareholders		$ 2

XML

Summary of Accounting Policies - Error Correction, Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income (loss)	$ (105)	$ 74
Net cash provided by (used by) operating activities		0
Investing Activities
Net cash used by investing activities		(53)
Financing Activities
Proceeds from term loans and notes	28	6
Repayments of term loans and notes	(64)	(13)
Retirement of long-term debt		0
Borrowings on revolving lines of credit	2,119	1,267
Payments on revolving lines of credit	(1,981)	(1,189)
Net increase (decrease) in revolver borrowings		0
Issuance (repurchase) of common shares	(2)	(2)
Cash dividends	(20)	(13)
Net increase (decrease) in bank overdrafts	(1)	(4)
Net increase (decrease) in short-term borrowings secured by accounts receivable		0
Other	(3)	(30)
Net cash provided (used) by financing activities		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	19	3
Increase (decrease) in cash, cash equivalents and restricted cash	(339)	(28)
Cash, cash equivalents and restricted cash, beginning of period	702	318
Cash, cash equivalents and restricted cash, end of period	$ 363	290
As Reported
Operating Activities
Net income (loss)		72
Net cash provided by (used by) operating activities		0
Investing Activities
Net cash used by investing activities		(53)
Financing Activities
Proceeds from term loans and notes		0
Repayments of term loans and notes		0
Retirement of long-term debt		(6)
Borrowings on revolving lines of credit		0
Payments on revolving lines of credit		0
Net increase (decrease) in revolver borrowings		77
Issuance (repurchase) of common shares		(2)
Cash dividends		(13)
Net increase (decrease) in bank overdrafts		(4)
Net increase (decrease) in short-term borrowings secured by accounts receivable		(30)
Other		0
Net cash provided (used) by financing activities		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		3
Increase (decrease) in cash, cash equivalents and restricted cash		(28)
Cash, cash equivalents and restricted cash, beginning of period		318
Cash, cash equivalents and restricted cash, end of period		290
Reclasses
Operating Activities
Net income (loss)		0
Net cash provided by (used by) operating activities		0
Investing Activities
Net cash used by investing activities		0
Financing Activities
Proceeds from term loans and notes		0
Repayments of term loans and notes		(6)
Retirement of long-term debt		6
Borrowings on revolving lines of credit		0
Payments on revolving lines of credit		0
Net increase (decrease) in revolver borrowings		0
Issuance (repurchase) of common shares		0
Cash dividends		0
Net increase (decrease) in bank overdrafts		0
Net increase (decrease) in short-term borrowings secured by accounts receivable		30
Other		(30)
Net cash provided (used) by financing activities		0
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		0
Increase (decrease) in cash, cash equivalents and restricted cash		0
Cash, cash equivalents and restricted cash, beginning of period		0
Cash, cash equivalents and restricted cash, end of period		0
As Reclassified
Operating Activities
Net income (loss)		72
Net cash provided by (used by) operating activities		0
Investing Activities
Net cash used by investing activities		(53)
Financing Activities
Proceeds from term loans and notes		0
Repayments of term loans and notes		(6)
Retirement of long-term debt		0
Borrowings on revolving lines of credit		0
Payments on revolving lines of credit		0
Net increase (decrease) in revolver borrowings		77
Issuance (repurchase) of common shares		(2)
Cash dividends		(13)
Net increase (decrease) in bank overdrafts		(4)
Net increase (decrease) in short-term borrowings secured by accounts receivable		0
Other		(30)
Net cash provided (used) by financing activities		22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		3
Increase (decrease) in cash, cash equivalents and restricted cash		(28)
Cash, cash equivalents and restricted cash, beginning of period		318
Cash, cash equivalents and restricted cash, end of period		290
Revisions
Operating Activities
Net income (loss)		2
Net cash provided by (used by) operating activities		0
Investing Activities
Net cash used by investing activities		0
Financing Activities
Proceeds from term loans and notes		6
Repayments of term loans and notes		(7)
Retirement of long-term debt		0
Borrowings on revolving lines of credit		1,267
Payments on revolving lines of credit		(1,189)
Net increase (decrease) in revolver borrowings		(77)
Issuance (repurchase) of common shares		0
Cash dividends		0
Net increase (decrease) in bank overdrafts		0
Net increase (decrease) in short-term borrowings secured by accounts receivable		0
Other		0
Net cash provided (used) by financing activities		0
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		0
Increase (decrease) in cash, cash equivalents and restricted cash		0
Cash, cash equivalents and restricted cash, beginning of period		0
Cash, cash equivalents and restricted cash, end of period		$ 0

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Summary of Accounting Policies - Error Correction, Equity Statement (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year	$ 1,916
Net income (loss) attributable to Tenneco Inc.	(117)	$ 60
Foreign currency translation adjustments	35	27
Defined benefit plans	1	3
Other comprehensive income (loss), net of tax	40	30
Balance at end of period	1,827
As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Tenneco Inc.		58
Foreign currency translation adjustments		27
Defined benefit plans		3
Other comprehensive income (loss), net of tax		30
Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to Tenneco Inc.		2
Foreign currency translation adjustments		0
Defined benefit plans		0
Other comprehensive income (loss), net of tax		0
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year	(1,013)	(1,009)
Net income (loss) attributable to Tenneco Inc.	(117)	60
Cash dividends	(20)	(13)
Adjustments to adopt new accounting standards			$ (1)
Balance at end of period	(1,150)	(963)
Accumulated Deficit | As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		(946)
Net income (loss) attributable to Tenneco Inc.		58
Cash dividends		(13)
Adjustments to adopt new accounting standards			(1)
Balance at end of period		(902)
Accumulated Deficit | Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		(63)
Net income (loss) attributable to Tenneco Inc.		2
Balance at end of period		(61)
Accumulated Other Comprehensive Income (loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year	(692)	(538)
Foreign currency translation adjustments	29	19
Defined benefit plans	1	3
Balance at end of period	(658)	(516)
Accumulated Other Comprehensive Income (loss) | As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		(541)
Foreign currency translation adjustments		19
Defined benefit plans		3
Balance at end of period		(519)
Accumulated Other Comprehensive Income (loss) | Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		3
Balance at end of period		3
Total Tenneco Inc. Shareholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year	1,726	636
Net income (loss) attributable to Tenneco Inc.	(117)	60
Foreign currency translation adjustments	29	19
Defined benefit plans	1	3
Other comprehensive income (loss), net of tax		82
Common stock issued	5	3
Cash dividends	(20)	(13)
Adjustments to adopt new accounting standards			(1)
Balance at end of period	1,628	707
Total Tenneco Inc. Shareholders' Equity | As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		696
Net income (loss) attributable to Tenneco Inc.		58
Foreign currency translation adjustments		19
Defined benefit plans		3
Other comprehensive income (loss), net of tax		80
Common stock issued		3
Cash dividends		(13)
Adjustments to adopt new accounting standards			(1)
Balance at end of period		765
Total Tenneco Inc. Shareholders' Equity | Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		(60)
Net income (loss) attributable to Tenneco Inc.		2
Other comprehensive income (loss), net of tax		2
Balance at end of period		(58)
Total Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year	1,916	682
Net income (loss) attributable to Tenneco Inc.	(110)	67
Foreign currency translation adjustments	33	26
Defined benefit plans	1	3
Other comprehensive income (loss), net of tax		96
Common stock issued	5	3
Cash dividends	(20)	(13)
Adjustments to adopt new accounting standards			(1)
Balance at end of period	$ 1,827	767
Total Equity | As Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		742
Net income (loss) attributable to Tenneco Inc.		65
Foreign currency translation adjustments		26
Defined benefit plans		3
Other comprehensive income (loss), net of tax		94
Common stock issued		3
Cash dividends		(13)
Adjustments to adopt new accounting standards			$ (1)
Balance at end of period		825
Total Equity | Revisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of year		(60)
Net income (loss) attributable to Tenneco Inc.		2
Other comprehensive income (loss), net of tax		2
Balance at end of period		$ (58)

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Acquisitions and Divestitures - Öhlins Intressenter AB (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Jan. 10, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 791		$ 869
Öhlins Intressenter AB
Business Acquisition [Line Items]
Percentage of business acquired	90.50%	90.50%
Total consideration	$ 162
Redeemable noncontrolling interests	17
Goodwill	28
Step up of inventory	5
Non-cash charge for inventory step-up	$ 2
K Öhlin Holding AB | Öhlins Intressenter AB
Business Acquisition [Line Items]
Ownership percentage	9.50%

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Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Oct. 01, 2018
Business Acquisition [Line Items]
Goodwill	$ 791	$ 869
Öhlins Intressenter AB
Business Acquisition [Line Items]
Cash, cash equivalents and restricted cash	4
Customer notes and accounts receivable	19
Inventories	31
Prepayments and other current assets	2
Property, plant and equipment	8
Goodwill	28
Intangibles	135
Other assets	9
Total assets acquired	236
Short-term debt, including current maturities of long-term debt	10
Accounts payable	11
Accrued compensation and employee benefits	12
Deferred income taxes	18
Deferred credits and other liabilities	6
Total liabilities assumed	57
Redeemable noncontrolling interests	17
Net assets and noncontrolling interests acquired	162
Federal-Mogul
Business Acquisition [Line Items]
Cash, cash equivalents and restricted cash	277		$ 277
Customer notes and accounts receivable	1,258		1,258
Other receivables	62		62
Inventories	1,551		1,551
Prepayments and other current assets	198		198
Property, plant and equipment	1,683		1,711
Long-term receivables	48		48
Goodwill	779		825
Intangibles	1,601		1,530
Investments in nonconsolidated affiliates	513		528
Deferred income taxes	166		166
Other assets	55		55
Total assets acquired	8,191		8,209
Short-term debt, including current maturities of long-term debt	130		130
Accounts payable	957		957
Accrued compensation and employee benefits	231		231
Accrued income taxes	49		49
Accrued expenses and other current liabilities	522		522
Long-term debt	1,315		1,315
Deferred income taxes	56		56
Pension and postretirement benefits	879		879
Deferred credits and other liabilities	115		124
Total liabilities assumed	4,254		4,263
Redeemable noncontrolling interests	88		96
Noncontrolling interests	142		143
Net assets and noncontrolling interests acquired	3,707		$ 3,707
Adjustments | Federal-Mogul
Business Acquisition [Line Items]
Property, plant and equipment	(28)
Goodwill	(46)
Intangibles	71
Investments in nonconsolidated affiliates	(15)
Total assets acquired	(18)
Deferred credits and other liabilities	(9)
Total liabilities assumed	(9)
Redeemable noncontrolling interests	(8)
Noncontrolling interests	$ (1)

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Acquisitions and Divestitures - Assets Acquired (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Oct. 01, 2018
Öhlins Intressenter AB
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 80
Intangibles	135
Öhlins Intressenter AB | Customer platforms and relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 39
Weighted-Average Useful Lives	10 years
Öhlins Intressenter AB | Technology rights
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 41
Weighted-Average Useful Lives	10 years
Federal-Mogul
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 1,234
Weighted-Average Useful Lives	10 years 6 months
Intangibles	$ 1,601	$ 1,530
Federal-Mogul | Customer platforms and relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 978
Weighted-Average Useful Lives	10 years
Federal-Mogul | Technology rights
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 68
Weighted-Average Useful Lives	10 years
Federal-Mogul | Packaged kits know-how
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 54
Weighted-Average Useful Lives	10 years
Federal-Mogul | Catalogs
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 40
Weighted-Average Useful Lives	10 years
Federal-Mogul | Licensing agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 64
Weighted-Average Useful Lives	4 years 6 months
Federal-Mogul | Land use rights
Acquired Finite-Lived Intangible Assets [Line Items]
Total definite-lived intangible assets	$ 30
Weighted-Average Useful Lives	42 years 9 months
Trade names and trademarks | Öhlins Intressenter AB
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 55
Trade names and trademarks | Federal-Mogul
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 367

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Acquisitions and Divestitures - Acquisition of Federal-Mogul (Details) - USD ($) $ in Millions		3 Months Ended
	Oct. 01, 2018	Mar. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill		$ 1,213	$ 1,231
Federal-Mogul
Business Acquisition [Line Items]
Step up of inventory	$ 152
Non-cash charge for inventory step-up		41
Redeemable noncontrolling interests	$ 96	88
Revenue since acquisition		1,906
Net loss since acquisition		39
Subsidiary Of Federal-Mogul
Business Acquisition [Line Items]
Redeemable noncontrolling interests		83
Powertrain
Business Acquisition [Line Items]
Goodwill		409	388
Powertrain | Federal-Mogul
Business Acquisition [Line Items]
Goodwill		409
Motorparts
Business Acquisition [Line Items]
Goodwill		544	611
Motorparts | Federal-Mogul
Business Acquisition [Line Items]
Goodwill		315
Ride Performance
Business Acquisition [Line Items]
Goodwill		238	$ 210
Ride Performance | Federal-Mogul
Business Acquisition [Line Items]
Goodwill		$ 55

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Acquisitions and Divestitures - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Business Combinations [Abstract]
Net sales and operating revenues	$ 4,484	$ 4,680
Earnings (loss) before income taxes and noncontrolling interests	30	226
Net income (loss) attributable to Tenneco Inc.	$ (70)	$ 93
Basic earnings (loss) per share of common stock (in dollars per share)	$ (0.87)	$ 1.16
Diluted earnings (loss) per share of common stock (in dollars per share)	$ (0.87)	$ 1.16

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Acquisitions and Divestitures - Assets Held For Sale (Details) - USD ($) $ in Millions		3 Months Ended
	Mar. 01, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of assets		$ 1	$ 2
Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventories		3		$ 33
Other current assets		0		5
Long-lived assets		1		23
Total assets held for sale		4		61
Accounts payable		2		21
Accrued liabilities		0		7
Other liabilities		1		11
Total liabilities held for sale		$ 3		$ 39
Motorsports Certain Assets and Liabilities | Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale price	$ 29
Proceeds from sale of assets	$ 22

XML

Restructuring Charges and Asset Impairments, Net - Incurred Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	$ 24	$ 12
Clean Air
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	5	1
Powertrain
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	1	0
Ride Performance
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	13	8
Motorparts
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	4	3
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments	$ 1	$ 0

XML

Restructuring Charges and Asset Impairments, Net - Additional Information (Details) $ in Millions		3 Months Ended
	Jan. 29, 2019 USD ($)	Mar. 31, 2019 USD ($) facility	Mar. 31, 2018 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 6	$ 24	$ 12
Beijing, China
Restructuring Cost and Reserve [Line Items]
Restructuring costs		5	7
Facility Closure and Other Costs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		$ 13	2
Facility Closure and Other Costs | Owen Sound, Ontario and Hartwell, Georgia
Restructuring Cost and Reserve [Line Items]
Number of facilities expected to close in 2020 | facility		2
Restructuring Charges		$ 6
Facility Closure and Other Costs | France
Restructuring Cost and Reserve [Line Items]
Restructuring costs		3
Cost Improvement Initiatives
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 4	$ 5

XML

Restructuring Charges and Asset Impairments, Net - Roll Forward of Restructuring Reserve (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 29, 2019	Mar. 31, 2019	Mar. 31, 2018
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		$ 103	$ 25
Provisions	$ 6	24	12
Payments		(38)	(16)
Restructuring Reserve, ending balance		89	21
Employee Costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		98	19
Provisions		11	10
Payments		(25)	(13)
Restructuring Reserve, ending balance		84	16
Facility Closure and Other Costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		5	6
Provisions		13	2
Payments		(13)	(3)
Restructuring Reserve, ending balance		5	5
Total Reportable Segments
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		100	25
Provisions		23	12
Payments		(36)	(16)
Restructuring Reserve, ending balance		87	21
Clean Air | Total Reportable Segments
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		17	14
Provisions		5	1
Payments		(6)	(5)
Restructuring Reserve, ending balance		16	10
Powertrain | Total Reportable Segments
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		15	0
Provisions		1	0
Payments		(3)	0
Restructuring Reserve, ending balance		13	0
Ride Performance | Total Reportable Segments
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		25	7
Provisions		13	8
Payments		(13)	(9)
Restructuring Reserve, ending balance		25	6
Motorparts | Total Reportable Segments
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		43	4
Provisions		4	3
Payments		(14)	(2)
Restructuring Reserve, ending balance		33	5
Corporate
Restructuring Reserve [Roll Forward]
Restructuring Reserve, beginning balance		3	0
Provisions		1	0
Payments		(2)	0
Restructuring Reserve, ending balance		$ 2	$ 0

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Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 1,181	$ 1,116
Work in process	526	562
Raw materials	450	457
Materials and supplies	109	110
Total inventories	$ 2,266	$ 2,245

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Goodwill and Other Intangible Assets—Net - Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	$ 1,231
Measurement period adjustments	(46)
Acquisitions	28
Gross carrying amount at end of period	1,213
Accumulated impairment loss at beginning of period	(362)
Impairment	(60)	$ 0
Accumulated impairment loss at end of period	(422)
Net carrying value at end of period	791		$ 869
Clean Air
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	22
Measurement period adjustments	0
Acquisitions	0
Gross carrying amount at end of period	22
Accumulated impairment loss at beginning of period	0
Impairment	0
Accumulated impairment loss at end of period	0
Net carrying value at end of period	22
Powertrain
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	388
Measurement period adjustments	21
Acquisitions	0
Gross carrying amount at end of period	409
Accumulated impairment loss at beginning of period	0
Impairment	0
Accumulated impairment loss at end of period	0
Net carrying value at end of period	409
Ride Performance
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	210
Measurement period adjustments	0
Acquisitions	28
Gross carrying amount at end of period	238
Accumulated impairment loss at beginning of period	(143)
Impairment	(60)
Accumulated impairment loss at end of period	(203)
Net carrying value at end of period	35
Motorparts
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	611
Measurement period adjustments	(67)
Acquisitions	0
Gross carrying amount at end of period	544
Accumulated impairment loss at beginning of period	(219)
Impairment	0
Accumulated impairment loss at end of period	(219)
Net carrying value at end of period	$ 325

XML

Goodwill and Other Intangible Assets—Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Oct. 01, 2018
Goodwill [Line Items]
Goodwill	$ 791		$ 869
Goodwill impairment charge	60	$ 0
Intangibles, net	1,266		$ 1,154
Amortization of intangible assets	35	$ 1
Ride Performance
Goodwill [Line Items]
Goodwill	35
Goodwill impairment charge	60
Öhlins Intressenter AB
Goodwill [Line Items]
Goodwill	28
Intangibles	135
Federal-Mogul
Goodwill [Line Items]
Goodwill	779			$ 825
Intangibles	1,601			$ 1,530
Intangibles, net	71
Adjustments | Federal-Mogul
Goodwill [Line Items]
Goodwill	(46)
Intangibles	$ 71

XML

Goodwill and Other Intangible Assets—Net - Reporting Unit Goodwill (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill	$ 791	$ 869
Reporting units 1-6
Goodwill [Line Items]
Fair value exceeds carrying value percentage	15.00%
Goodwill	$ 354
Reporting units 7-9
Goodwill [Line Items]
Fair value exceeds carrying value percentage	15.00%
Goodwill	$ 437

XML

Goodwill and Other Intangible Assets—Net - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 1,365	$ 1,217
Accumulated Amortization	(99)	(63)
Net Carrying Value	1,266	1,154
Indefinite-lived intangible assets	421	365
Intangible assets, gross	1,786	1,582
Intangible assets, net	$ 1,687	1,519
Customer platforms and relationships
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Gross Carrying Value	$ 1,019	964
Accumulated Amortization	(50)	(24)
Net Carrying Value	$ 969	940
Customer contract
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Gross Carrying Value	$ 8	8
Accumulated Amortization	(6)	(5)
Net Carrying Value	2	3
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	1	1
Accumulated Amortization	(1)	(1)
Net Carrying Value	$ 0	0
Patents | Minimum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Patents | Maximum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	17 years
Technology rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 135	98
Accumulated Amortization	(28)	(27)
Net Carrying Value	$ 107	71
Technology rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Technology rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	30 years
Packaged kits know-how
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Gross Carrying Value	$ 54	36
Accumulated Amortization	(3)	(1)
Net Carrying Value	$ 51	35
Catalogs
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	10 years
Gross Carrying Value	$ 40	0
Accumulated Amortization	(2)	0
Net Carrying Value	38	0
Licensing agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	63	66
Accumulated Amortization	(7)	(3)
Net Carrying Value	$ 56	63
Licensing agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	3 years
Licensing agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	5 years
Land use rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 45	44
Accumulated Amortization	(2)	(2)
Net Carrying Value	$ 43	$ 42
Land use rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	28 years
Land use rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Finite useful life of intangible assets	46 years
Federal-Mogul
Finite-Lived Intangible Assets [Line Items]
Net Carrying Value	$ 71

XML

Goodwill and Other Intangible Assets—Net - Amortization (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 106
2020	140
2021	139
2022	134
2023	131
2024 and thereafter	616
Net Carrying Value	$ 1,266	$ 1,154

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Investment in Nonconsolidated Affiliates (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Oct. 01, 2018
Schedule of Equity Method Investments [Line Items]
Investments in nonconsolidated affiliates	$ 528		$ 544
Equity earnings (losses) of nonconsolidated affiliates, net of tax	16	$ 0
Cash dividends received from nonconsolidated affiliates	$ 15	$ 0
Anqing TP Goetze Piston Ring Company Limited (China)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	35.70%		35.70%
Anqing TP Powder Metallurgy Co., Ltd (China)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	20.00%		20.00%
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%		50.00%
Farloc Argentina SAIC Y F (Argentina)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	23.90%		23.90%
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%		50.00%
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	25.00%		25.00%
Federal-Mogul TP Liners, Inc. (USA)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	46.00%		46.00%
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	49.00%		49.00%
JURID do Brasil Sistemas Automotivos Ltda.
Schedule of Equity Method Investments [Line Items]
Ownership percentage	19.90%		19.90%
KB Autosys Co., Ltd. (Korea)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	33.60%		33.60%
Montagewerk Abgastechnik Emden GmbH (Germany)
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%		50.00%
Federal-Mogul
Schedule of Equity Method Investments [Line Items]
Investments in nonconsolidated affiliates	$ (513)			$ (528)
Federal-Mogul | Adjustments
Schedule of Equity Method Investments [Line Items]
Investments in nonconsolidated affiliates	$ 15

XML

Investment in Nonconsolidated Affiliates - Summarized Financial Data (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Sales	$ 255
Gross profit	60
Income from continuing operations	43
Net income	38
Otomotiv A.S.
Schedule of Equity Method Investments [Line Items]
Sales	91
Gross profit	21
Income from continuing operations	19
Net income	18
Anqing TP Goetze
Schedule of Equity Method Investments [Line Items]
Sales	39
Gross profit	16
Income from continuing operations	11
Net income	9
Other
Schedule of Equity Method Investments [Line Items]
Sales	125
Gross profit	23
Income from continuing operations	13
Net income	$ 11

XML

Derivatives and Hedging Activities - Additional Information (Details) shares in Thousands, € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) shares	Mar. 31, 2019 EUR (€) shares	Dec. 31, 2018 USD ($)
Financial Instruments [Line Items]
Long-term debt	$ 5,417		$ 5,340
Net derivative losses to be reclassified within twelve months	4
Foreign Exchange Forward
Financial Instruments [Line Items]
Derivative asset	$ 1		1
Equity swap agreement
Financial Instruments [Line Items]
Notional amount | shares	250	250
Net asset position fair value	$ 3		4
Commodity contracts
Financial Instruments [Line Items]
Notional amount	$ 26		$ 27
Net Investment Hedging
Financial Instruments [Line Items]
Long-term debt | €		€ 769

XML

Fair Value of Financial Instruments - Carrying and Estimated Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Foreign Exchange Forward
Carrying And Estimated Fair Value [Line Items]
Derivative asset	$ 1	$ 1
Level 2 | Carrying Amount | Equity swap agreement
Carrying And Estimated Fair Value [Line Items]
Derivative asset	3	4
Level 2 | Carrying Amount | Commodity contracts
Carrying And Estimated Fair Value [Line Items]
Derivative asset	2
Derivative liability		(2)
Level 2 | Fair Value | Equity swap agreement
Carrying And Estimated Fair Value [Line Items]
Derivative asset	3	4
Level 2 | Fair Value | Commodity contracts
Carrying And Estimated Fair Value [Line Items]
Derivative asset	$ 2
Derivative liability		$ (2)

XML

Derivatives and Hedging Activities - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Foreign Exchange Forward $ in Millions	Mar. 31, 2019 USD ($)
Long
Notional amount	$ (33)
Short
Notional amount	$ (33)

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Fair Value of Financial Instruments - Fair Value of Long Term Debt (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) reporting_unit	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of reporting units | reporting_unit	2
Goodwill impairment charge	$ 60	$ 0
Carrying Amount	5,490		$ 5,413
Term loans and senior notes | Carrying Amount | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long term debt	5,386		5,307
Term loans and senior notes | Fair Value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long term debt	5,285		5,218
Other Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying Amount	104		$ 106
Ride Performance
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill impairment charge	$ 60

XML

Derivatives and Hedging Activities - Carrying and Estimated Fair Value (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 5,417		$ 5,340
Net Investment Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt | €		€ 769
Commodity contracts | Cash Flow Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion)	4
Foreign Currency | Net Investment Hedging
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion)	(19)
Prepayments and other current assets | Commodity contracts | Cash Flow Hedging | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset (liabilities)	2		0
Accrued expenses and other current liabilities | Commodity contracts | Cash Flow Hedging | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset (liabilities)	0		2
Long-term debt | Foreign Currency | Net Investment Hedging | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 862		$ 863

XML

Debt and Other Financing Arrangements - Summary of Long-Term Debt Obligations (Details) $ in Millions	Mar. 31, 2019 USD ($)	Mar. 31, 2019 EUR (€)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Carrying Amount	$ 5,490		$ 5,413
Less — maturities classified as current	73		73
Total long-term debt	5,417		5,340
Unamortized debt issuance costs	86		90
Unamortized premium	(45)		(49)
Line of Credit | Revolver Borrowings Due 2023
Debt Instrument [Line Items]
Principal	132		0
Carrying Amount	132		0
Term Loan | Tenneco Inc. Term Loan A
Debt Instrument [Line Items]
Principal	1,679		1,700
Carrying Amount	$ 1,670		1,691
Stated rate	1.75%	1.75%
Term Loan | Tenneco Inc. Term Loan B
Debt Instrument [Line Items]
Principal	$ 1,696		1,700
Carrying Amount	$ 1,628		1,629
Stated rate	2.75%	2.75%
Senior Notes | 5 3/8% Senior Notes due 2024
Debt Instrument [Line Items]
Principal	$ 225	€ 225,000,000	225
Carrying Amount	$ 222		222
Stated rate	5.375%	5.375%
Senior Notes | 5.000% Senior Notes due 2026
Debt Instrument [Line Items]
Principal	$ 500	€ 500,000,000	500
Carrying Amount	$ 493		493
Stated rate	5.00%	5.00%
Senior Notes | 4.875% Euro Fixed Rate Notes due 2022
Debt Instrument [Line Items]
Principal	$ 466	€ 415,000,000	476
Carrying Amount	$ 483		496
Stated rate	4.875%	4.875%
Senior Notes | Euro Floating Rate Notes due 2024
Debt Instrument [Line Items]
Principal	$ 337	€ 300,000,000	344
Carrying Amount	$ 341		349
Stated rate	4.875%	4.875%
Senior Notes | 5.000% Euro Fixed Rate Notes due 2024
Debt Instrument [Line Items]
Principal	$ 393	€ 350,000,000	401
Carrying Amount	$ 417		427
Stated rate	5.00%	5.00%
Other Debt, primarily foreign instruments
Debt Instrument [Line Items]
Principal	$ 105		108
Carrying Amount	$ 104		$ 106

XML

Debt and Other Financing Arrangements - Term Loans (Details) - USD ($) $ in Billions	Oct. 01, 2018	Mar. 31, 2019
Line of Credit
Line of Credit Facility [Line Items]
Borrowing capacity	$ 4.9
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.5
Debt term	5 years
Term Loan A Facility | Term Loan
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.7
Debt term	5 years
Effective rate		4.396%
Term Loan B Facility | Term Loan
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.7
Debt term	7 years
Effective rate		6.031%

XML

Debt and Other Financing Arrangements - Senior Notes (Details) - Senior Notes	Mar. 31, 2019
5 3/8% Senior Notes due 2024
Debt Instrument [Line Items]
Stated rate	5.375%
5.000% Senior Notes due 2026
Debt Instrument [Line Items]
Stated rate	5.00%
5.000% Euro Fixed Rate Notes due 2024
Debt Instrument [Line Items]
Stated rate	5.00%
4.875% Euro Fixed Rate Notes due 2022
Debt Instrument [Line Items]
Stated rate	4.875%
4.875% Euro Fixed Rate Notes due 2024
Debt Instrument [Line Items]
Stated rate	4.875%

XML

Debt and Other Financing Arrangements - Financing Arrangements (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Available	$ 1,400
Letters of Credit	20
Tenneco Inc. revolving credit agreement
Debt Instrument [Line Items]
Available	1,300
Tenneco Inc. Term Loan A
Debt Instrument [Line Items]
Available	0
Tenneco Inc. Term Loan B
Debt Instrument [Line Items]
Available	0
Subsidiaries’ credit agreements
Debt Instrument [Line Items]
Available	$ 100

XML

Debt and Other Financing Arrangements - Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest Expense
Debt Instrument [Line Items]
Amortization of debt issuance fees	$ 5	$ 1
Prepayments and other current assets
Debt Instrument [Line Items]
Amortization of debt issuance fees	21
Senior Notes
Debt Instrument [Line Items]
Accretion of debt premium	$ 3

XML

Debt and Other Financing Arrangements - Senior Credit Facility (Details) - Line of Credit		3 Months Ended
	Oct. 01, 2018	Mar. 31, 2019 covenant
Debt Instrument [Line Items]
Number of covenants		2
Consolidated fixed charge coverage ratio		2.00
Debt Covenant, Term 1
Debt Instrument [Line Items]
Consolidated net leverage ratio	4.0
Debt Covenant, Term 2
Debt Instrument [Line Items]
Consolidated net leverage ratio	3.75
Debt Covenant, Term 3
Debt Instrument [Line Items]
Consolidated net leverage ratio	3.5
Debt Covenant, Term 4
Debt Instrument [Line Items]
Consolidated net leverage ratio	2.75

XML

Debt and Other Financing Arrangements - Accounts Receivable Securitization (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Accounts receivable outstanding and derecognized	$ 1,100		$ 1,000
Deferred purchase price receivable	58		154
Proceeds from factoring qualifying as sales	1,200	$ 800
Financing charges on sale of receivables		0
Accounts Receivable Securitization Programs [Member]
Debt Instrument [Line Items]
Borrowings on securitization programs	3		$ 6
Interest Expense
Debt Instrument [Line Items]
Financing charges on sale of receivables	$ 8	$ 3

XML

Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
U.S. | Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	$ 1	$ 0
Interest cost	13	3
Expected return on plan assets	(17)	(4)
Net amortization:
Actuarial loss	1	1
Prior service cost (credit)	0	0
Net pension and postretirement costs (credits)	(2)	0
U.S. | Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	0	0
Interest cost	3	2
Expected return on plan assets	0	0
Net amortization:
Actuarial loss	1	1
Prior service cost (credit)	(2)	0
Net pension and postretirement costs (credits)	2	3
Non-U.S. | Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost — benefits earned during the period	6	3
Interest cost	7	3
Expected return on plan assets	(5)	(5)
Net amortization:
Actuarial loss	1	2
Prior service cost (credit)	0	0
Net pension and postretirement costs (credits)	$ 9	$ 3

XML

Pension Plans, Postretirement and Other Employee Benefits - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019
U.S. | Pension
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Long-term rate of return	6.25%

XML

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 0	$ 25,000,000
Income tax benefit related to toll tax	2,000,000
Reasonably possible change in unrecognized tax benefits	11,000,000
Spain, China, and Czech Republic
Income Tax Contingency [Line Items]
One time tax benefit	$ 51,000,000

XML

Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Portion of environmental remediation costs recorded in other current liabilities	$ 10	$ 12
Portion of environmental remediation costs recorded in deferred credits and other liabilities	29	28
Environmental remediation accrual, discounted basis	$ 39	$ 40
Weighted average discount rate	1.70%	2.90%
Expected payments of environmental remediation costs, 2019	$ 8
Expected payments of environmental remediation costs, 2020	6
Expected payments of environmental remediation costs, 2021	3
Expected payments of environmental remediation costs, 2022	2
Expected payments of environmental remediation costs, 2023	2
Expected payments of environmental remediation costs, thereafter	$ 17

XML

Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Asset retirement obligation	$ 15	$ 15
Accrued expenses and other current liabilities
Loss Contingencies [Line Items]
Asset retirement obligation	3	3
Deferred credits and other liabilities
Loss Contingencies [Line Items]
Asset retirement obligation	$ 12	$ 12

XML

Commitments and Contingencies - Other Legal Proceedings, Claims and Investigations (Details) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2019 USD ($)	Sep. 30, 2015 LegalMatter defendent	Jun. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Estimated liability | $	$ 53		$ 132
Payments for settlement | $	$ 79
Number of defendants in many asbestos related cases | defendent		100
United States
Loss Contingencies [Line Items]
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | LegalMatter		500
Europe
Loss Contingencies [Line Items]
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories | LegalMatter		50
Minimum
Loss Contingencies [Line Items]
Warranty term	1 year

XML

Commitments and Contingencies - Warranty Accrual Table (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 45	$ 26
Accruals related to product warranties	5	6
Reductions for payments made	(2)	(3)
Foreign currency	0	0
Ending balance	$ 48	$ 29

XML

Leases (Details)	3 Months Ended
	Mar. 31, 2019
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 month
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	10 years

XML

Leases - Lease Costs (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 33
Short-term lease expense	1
Variable lease cost	8
Total lease cost	42
Operating cash flows from operating leases	$ 41
Weighted average remaining lease term, operating lease	5 years 3 months 15 days
Weighted average remaining lease term, finance lease	3 years 2 months 23 days
Weighted average discount rate, operating lease	4.26%
Weighted average discount rate, finance lease	4.85%

XML

Leases - Supplemental Balance Sheet Information (Details) $ in Millions	Mar. 31, 2019 USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 362
Other current liabilities	101
Other long-term liabilities	256
Total operating lease liabilities	357
Property, plant and equipment, gross	2
Accumulated depreciation	0
Total finance lease right-of-use assets	2
Other current liabilities	1
Other long-term liabilities	1
Total finance lease liabilities	$ 2

XML

Leases - Maturity Schedules (Details) $ in Millions	Mar. 31, 2019 USD ($)
Operating leases
2019 (excluding the three months ended March 31, 2019)	$ 85
2020	91
2021	69
2022	48
2023	34
Thereafter	55
Total future undiscounted lease payments	382
Less imputed interest	(25)
Total reported lease liability	357
Finance leases
2019 (excluding the three months ended March 31, 2019)	1
2020	1
2021	0
2022	0
2023	0
Thereafter	0
Total future undiscounted lease payments	2
Less imputed interest	0
Total reported lease liability	$ 2

XML

Leases - Future Minimum Payments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 120
2020	100
2021	86
2022	68
2023	56
Beyond 2023	53
Total	$ 483

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Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	$ 6	$ 4
Unrecognized compensation costs	$ 1
Unrecognized compensation costs, not yet recognized	1 year
Cash-settled
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	$ (1)	(1)
Share-settled
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	7	$ 5
Unrecognized compensation costs	$ 63
Unrecognized compensation costs, not yet recognized	3 years

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Share-Based Compensation - Nonvested Restricted Shares (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Weighted Avg. Grant Date Fair Value
Unrecognized compensation costs | $	$ 1
Unrecognized compensation costs, not yet recognized	1 year
Restricted Shares
Nonvested Restricted Shares
Nonvested, Beginning Balance (in shares) | shares	178,550
Granted (in shares) | shares	34,009
Vested (in shares) | shares	(166,444)
Forfeited (in shares) | shares	(1,262)
Nonvested, Ending Balance (in shares) | shares	44,853
Weighted Avg. Grant Date Fair Value
Nonvested, Beginning Balance (in dollars per share) | $ / shares	$ 55.46
Granted (in dollars per share) | $ / shares	34.66
Vested (in dollars per share) | $ / shares	49.86
Forfeited (in dollars per share) | $ / shares	61.61
Nonvested, Ending Balance (in dollars per share) | $ / shares	$ 62.49
Share-Settled RSUs
Nonvested Restricted Shares
Nonvested, Beginning Balance (in shares) | shares	440,403
Granted (in shares) | shares	856,808
Vested (in shares) | shares	(83,109)
Forfeited (in shares) | shares	(17,772)
Nonvested, Ending Balance (in shares) | shares	1,196,330
Weighted Avg. Grant Date Fair Value
Nonvested, Beginning Balance (in dollars per share) | $ / shares	$ 47.99
Granted (in dollars per share) | $ / shares	34.25
Vested (in dollars per share) | $ / shares	55.00
Forfeited (in dollars per share) | $ / shares	42.82
Nonvested, Ending Balance (in dollars per share) | $ / shares	$ 38.22
Unrecognized compensation costs | $	$ 63
Unrecognized compensation costs, not yet recognized	3 years
PSUs
Nonvested Restricted Shares
Nonvested, Beginning Balance (in shares) | shares	227,049
Granted (in shares) | shares	628,990
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(15,065)
Nonvested, Ending Balance (in shares) | shares	840,974
Weighted Avg. Grant Date Fair Value
Nonvested, Beginning Balance (in dollars per share) | $ / shares	$ 49.18
Granted (in dollars per share) | $ / shares	24.77
Vested (in dollars per share) | $ / shares	0.00
Forfeited (in dollars per share) | $ / shares	50.75
Nonvested, Ending Balance (in dollars per share) | $ / shares	$ 34.44

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Stockholders' Equity - Shares Outstanding (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock (in shares)	14,592,888		14,592,888
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Class A
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	175,000,000	135,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued at beginning of period (in shares)	71,675,379	66,033,509
Issuance (repurchased) pursuant to benefit plans (in shares)	120,622	(15,906)
Restricted stock forfeited and withheld for taxes (in shares)	(54,293)	(5,108)
Stock options exercised (in shares)	8,438	4,779
Shares issued at end of period (in shares)	71,750,146	66,017,274
Treasury stock (in shares)	14,592,888	14,592,888
Total shares outstanding (in shares)	57,157,258	51,424,386
Class B
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	25,000,000
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued at beginning of period (in shares)	23,793,669
Issuance (repurchased) pursuant to benefit plans (in shares)	0
Restricted stock forfeited and withheld for taxes (in shares)	0
Stock options exercised (in shares)	0
Shares issued at end of period (in shares)	23,793,669
Treasury stock (in shares)	0
Total shares outstanding (in shares)	23,793,669

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of year	$ 1,916
Balance at end of period	1,827
Other comprehensive income (loss) attributable to noncontrolling interests	6	$ 8
Foreign currency translation adjustments and other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of year	(395)	(263)
Other comprehensive income (loss) before reclassifications	27	19
Reclassification from other comprehensive income (loss)	0	0
Other comprehensive income (loss)	(368)	(244)
Income tax provision (benefit)	2	0
Balance at end of period	(366)	(244)
Pensions and other postretirement benefits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of year	(297)	(275)
Other comprehensive income (loss) before reclassifications	0	0
Reclassification from other comprehensive income (loss)	1	4
Other comprehensive income (loss)	(296)	(271)
Income tax provision (benefit)	0	(1)
Balance at end of period	(296)	(272)
Cash flow hedge instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of year	0	0
Other comprehensive income (loss) before reclassifications	4	0
Reclassification from other comprehensive income (loss)	0	0
Other comprehensive income (loss)	4	0
Income tax provision (benefit)	0	0
Balance at end of period	$ 4	$ 0

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Segment Information - Additional Information (Details) - Segment	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2019
Segment Reporting Information [Line Items]
Number of operating segments	2	3
Forecast
Segment Reporting Information [Line Items]
Number of operating segments			2

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Segment Information - Segment Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting [Line Items]
Revenues from external customers	$ 4,484,000,000	$ 2,581,000,000
Total EBITDA including noncontrolling interests	145,000,000	182,000,000
Less: Depreciation and amortization	(169,000,000)	(60,000,000)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24,000,000)	122,000,000
Less: Interest expense	(81,000,000)	(23,000,000)
Less: Income tax expense (benefit)	0	(25,000,000)
Net income (loss)	(105,000,000)	74,000,000
Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	0	0
Operating Segments
Segment Reporting [Line Items]
Revenues from external customers	4,484,000,000	2,581,000,000
Total EBITDA including noncontrolling interests	244,000,000	226,000,000
Operating Segments | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	103,000,000	6,000,000
Reclass and Elims
Segment Reporting [Line Items]
Revenues from external customers	0	0
Total EBITDA including noncontrolling interests	0	0
Reclass and Elims | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	(103,000,000)	(6,000,000)
Clean Air
Segment Reporting [Line Items]
Revenues from external customers	1,779,000,000	1,756,000,000
Total EBITDA including noncontrolling interests	131,000,000	157,000,000
Clean Air | Operating Segments
Segment Reporting [Line Items]
Revenues from external customers	1,779,000,000	1,756,000,000
Total EBITDA including noncontrolling interests	131,000,000	157,000,000
Clean Air | Operating Segments | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	0	0
Powertrain
Segment Reporting [Line Items]
Revenues from external customers	1,175,000,000	0
Total EBITDA including noncontrolling interests	113,000,000	0
Powertrain | Operating Segments
Segment Reporting [Line Items]
Revenues from external customers	1,175,000,000	0
Total EBITDA including noncontrolling interests	113,000,000	0
Powertrain | Operating Segments | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	46,000,000	0
Ride Performance
Segment Reporting [Line Items]
Revenues from external customers	733,000,000	513,000,000
Total EBITDA including noncontrolling interests	(45,000,000)	24,000,000
Ride Performance | Operating Segments
Segment Reporting [Line Items]
Revenues from external customers	733,000,000	513,000,000
Total EBITDA including noncontrolling interests	(45,000,000)	24,000,000
Ride Performance | Operating Segments | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	46,000,000	6,000,000
Motorparts
Segment Reporting [Line Items]
Revenues from external customers	797,000,000	312,000,000
Total EBITDA including noncontrolling interests	45,000,000	45,000,000
Motorparts | Operating Segments
Segment Reporting [Line Items]
Revenues from external customers	797,000,000	312,000,000
Total EBITDA including noncontrolling interests	45,000,000	45,000,000
Motorparts | Operating Segments | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	11,000,000	0
Corporate
Segment Reporting [Line Items]
Revenues from external customers	0	0
Total EBITDA including noncontrolling interests	(99,000,000)	(44,000,000)
Corporate | Intersegment Revenues
Segment Reporting [Line Items]
Intersegment revenues	$ 0	$ 0

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Segment Information - Segment Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	$ 4,484	$ 2,581
Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,779	1,756
Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,175	0
Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	733	513
Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	797	312
North America
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,937	1,136
North America | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	793	768
North America | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	405	0
North America | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	232	180
North America | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	507	188
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,831	990
Europe, Middle East and Africa | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	641	657
Europe, Middle East and Africa | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	575	0
Europe, Middle East and Africa | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	378	225
Europe, Middle East and Africa | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	237	108
Rest of world
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	716	455
Rest of world | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	345	331
Rest of world | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	195	0
Rest of world | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	123	108
Rest of world | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	53	16
OE - Substrate
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	706	652
OE - Substrate | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	706	652
OE - Substrate | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Substrate | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Substrate | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Value add
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	2,981	1,617
OE - Value add | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,073	1,104
OE - Value add | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,175	0
OE - Value add | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	733	513
OE - Value add | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
Aftermarket
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	797	312
Aftermarket | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
Aftermarket | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
Aftermarket | Ride Performance
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
Aftermarket | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	$ 797	$ 312

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Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Net Sales	$ 0	$ 0
Icahn Automotive Group LLC
Related Party Transaction [Line Items]
Net Sales	43
Purchases	0
Royalty and Other Income	1
Receivables	59		$ 60
Payables and accruals	1		12
PSC Metals, Inc.
Related Party Transaction [Line Items]
Net Sales	1
Purchases	0
Royalty and Other Income	0
Anqing TP Goetze Piston Ring Company Limited
Related Party Transaction [Line Items]
Net Sales	0
Purchases	14
Royalty and Other Income	0
Receivables	1		1
Payables and accruals	16		22
Anqing TP Powder Metallurgy Company Limited
Related Party Transaction [Line Items]
Net Sales	0
Purchases	1
Royalty and Other Income	0
Receivables	0		1
Payables and accruals	1		1
Dongsuh Federal-Mogul Industrial Co., Ltd.
Related Party Transaction [Line Items]
Net Sales	1
Purchases	2
Royalty and Other Income	0
Receivables	1		1
Payables and accruals	2		2
Federal-Mogul Powertrain Otomotiv A.S.
Related Party Transaction [Line Items]
Net Sales	27
Purchases	55
Royalty and Other Income	1
Receivables	16		9
Payables and accruals	27		16
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.
Related Party Transaction [Line Items]
Net Sales	0
Purchases	3
Royalty and Other Income	0
Receivables	0		0
Payables and accruals	1		1
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.
Related Party Transaction [Line Items]
Net Sales	1
Purchases	4
Royalty and Other Income	0
Receivables	0		0
Payables and accruals	3		0
Federal-Mogul TP Liners, Inc.
Related Party Transaction [Line Items]
Net Sales	4
Purchases	0
Royalty and Other Income	0
Receivables	2		2
Payables and accruals	8		7
Montagewerk Abgastechnik Emden GmbH
Related Party Transaction [Line Items]
Net Sales	2
Purchases	0	$ 4
Royalty and Other Income	0
Receivables	0		0
Payables and accruals	$ 1		$ 0

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Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Details)	3 Months Ended
	Mar. 31, 2019
Condensed Financial Information Disclosure [Abstract]
Ownership percentage of existing and future material domestic owned subsidiaries	100.00%

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Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
External	$ 4,484,000,000	$ 2,581,000,000
Affiliated companies	0	0
Net sales and operating revenues	4,484,000,000	2,581,000,000
Costs and expenses
Cost of sales	3,864,000,000	2,193,000,000
Restructuring charges and asset impairments	24,000,000	12,000,000
Goodwill impairment charge	60,000,000	0
Engineering, research, and development	92,000,000	40,000,000
Selling, general, and administrative	316,000,000	151,000,000
Depreciation and amortization	169,000,000	60,000,000
Costs and expenses	4,525,000,000	2,456,000,000
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	2,000,000	3,000,000
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(16,000,000)	0
Other expense (income), net	(3,000,000)	0
Total other expense (income)	(17,000,000)	3,000,000
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(24,000,000)	122,000,000
Interest expense —
External (net of interest capitalized)	81,000,000	23,000,000
Affiliated companies (net of interest income)	0	0
Earnings (loss) before income taxes and noncontrolling interests	(105,000,000)	99,000,000
Income tax (benefit) expense	0	25,000,000
Equity in net income (loss) from affiliated companies	0	0
Net income (loss)	(105,000,000)	74,000,000
Less: Net income (loss) attributable to noncontrolling interests	12,000,000	14,000,000
Net income attributable to Tenneco Inc.	(117,000,000)	60,000,000
Comprehensive income (loss) attributable to Tenneco Inc.	(83,000,000)	82,000,000
Reclass and Elims
Revenues
External	0	0
Affiliated companies	(499,000,000)	(279,000,000)
Net sales and operating revenues	(499,000,000)	(279,000,000)
Costs and expenses
Cost of sales	(499,000,000)	(279,000,000)
Restructuring charges and asset impairments	0	0
Goodwill impairment charge	0	0
Engineering, research, and development	0	0
Selling, general, and administrative	0	0
Depreciation and amortization	0	0
Costs and expenses	(499,000,000)	(279,000,000)
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	0	0
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	0
Other expense (income), net	0	0
Total other expense (income)	0	0
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	0	0
Interest expense —
External (net of interest capitalized)	0	0
Affiliated companies (net of interest income)	0	0
Earnings (loss) before income taxes and noncontrolling interests	0	0
Income tax (benefit) expense	0	0
Equity in net income (loss) from affiliated companies	(83,000,000)	(121,000,000)
Net income (loss)	(83,000,000)	(121,000,000)
Less: Net income (loss) attributable to noncontrolling interests	0	0
Net income attributable to Tenneco Inc.	(83,000,000)	(121,000,000)
Comprehensive income (loss) attributable to Tenneco Inc.	(83,000,000)	(121,000,000)
Guarantor Subsidiaries
Revenues
External	1,691,000,000	1,032,000,000
Affiliated companies	218,000,000	123,000,000
Net sales and operating revenues	1,909,000,000	1,155,000,000
Costs and expenses
Cost of sales	1,676,000,000	1,007,000,000
Restructuring charges and asset impairments	8,000,000	1,000,000
Goodwill impairment charge	33,000,000	0
Engineering, research, and development	39,000,000	18,000,000
Selling, general, and administrative	178,000,000	73,000,000
Depreciation and amortization	83,000,000	23,000,000
Costs and expenses	2,017,000,000	1,122,000,000
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	0	3,000,000
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(1,000,000)
Other expense (income), net	(7,000,000)	9,000,000
Total other expense (income)	(8,000,000)	12,000,000
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(100,000,000)	21,000,000
Interest expense —
External (net of interest capitalized)	11,000,000	10,000,000
Affiliated companies (net of interest income)	(8,000,000)	(3,000,000)
Earnings (loss) before income taxes and noncontrolling interests	(103,000,000)	14,000,000
Income tax (benefit) expense	(18,000,000)	1,000,000
Equity in net income (loss) from affiliated companies	21,000,000	48,000,000
Net income (loss)	(64,000,000)	61,000,000
Less: Net income (loss) attributable to noncontrolling interests	0	0
Net income attributable to Tenneco Inc.	(64,000,000)	61,000,000
Comprehensive income (loss) attributable to Tenneco Inc.	(68,000,000)	64,000,000
Non-Guarantor Subsidiaries
Revenues
External	2,793,000,000	1,549,000,000
Affiliated companies	281,000,000	156,000,000
Net sales and operating revenues	3,074,000,000	1,705,000,000
Costs and expenses
Cost of sales	2,688,000,000	1,465,000,000
Restructuring charges and asset impairments	16,000,000	11,000,000
Goodwill impairment charge	27,000,000	0
Engineering, research, and development	53,000,000	22,000,000
Selling, general, and administrative	135,000,000	78,000,000
Depreciation and amortization	86,000,000	37,000,000
Costs and expenses	3,005,000,000	1,613,000,000
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	2,000,000	0
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	(15,000,000)
Other expense (income), net	4,000,000	(9,000,000)
Total other expense (income)	(9,000,000)	(9,000,000)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	78,000,000	101,000,000
Interest expense —
External (net of interest capitalized)	5,000,000	3,000,000
Affiliated companies (net of interest income)	8,000,000	0
Earnings (loss) before income taxes and noncontrolling interests	65,000,000	98,000,000
Income tax (benefit) expense	30,000,000	24,000,000
Equity in net income (loss) from affiliated companies	0	0
Net income (loss)	35,000,000	74,000,000
Less: Net income (loss) attributable to noncontrolling interests	12,000,000	14,000,000
Net income attributable to Tenneco Inc.	23,000,000	60,000,000
Comprehensive income (loss) attributable to Tenneco Inc.	61,000,000	79,000,000
Tenneco Inc
Revenues
External	0	0
Affiliated companies	0	0
Net sales and operating revenues	0	0
Costs and expenses
Cost of sales	(1,000,000)	0
Restructuring charges and asset impairments	0	0
Goodwill impairment charge	0	0
Engineering, research, and development	0	0
Selling, general, and administrative	3,000,000	0
Depreciation and amortization	0	0
Costs and expenses	2,000,000	0
Other expense (income)
Non-service pension and other postretirement benefit costs (credits)	0	0
Equity in (earnings) losses of nonconsolidated affiliates, net of tax	0
Other expense (income), net	0	0
Total other expense (income)	0	0
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	(2,000,000)	0
Interest expense —
External (net of interest capitalized)	65,000,000	10,000,000
Affiliated companies (net of interest income)	0	3,000,000
Earnings (loss) before income taxes and noncontrolling interests	(67,000,000)	(13,000,000)
Income tax (benefit) expense	(12,000,000)	0
Equity in net income (loss) from affiliated companies	62,000,000	73,000,000
Net income (loss)	7,000,000	60,000,000
Less: Net income (loss) attributable to noncontrolling interests	0	0
Net income attributable to Tenneco Inc.	7,000,000	60,000,000
Comprehensive income (loss) attributable to Tenneco Inc.	$ 7,000,000	$ 60,000,000

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Supplemental Guarantor Condensed Consolidating Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 357	$ 697
Restricted cash	6	5
Receivables, net	2,843	2,572
Inventories	2,266	2,245
Prepayments and other current assets	555	590
Total current assets	6,027	6,109
Plant, property and equipment, net	3,519	3,501
Investment in affiliated companies	0	0
Long-term receivables, net	9	10
Goodwill	791	869
Intangibles, net	1,687	1,519
Investments in nonconsolidated affiliates	528	544
Deferred income taxes	471	467
Other assets	584	213
Total assets	13,616	13,232
Current liabilities:
Short-term debt, including current maturities of long-term debt	159	153
Accounts payable	2,861	2,759
Accrued compensation and employee benefits	363	343
Accrued income taxes	30	64
Accrued expenses and other current liabilities	994	1,001
Total current liabilities	4,407	4,320
Long-term debt	5,417	5,340
Intercompany due to (due from)	0	0
Deferred income taxes	110	88
Postretirement benefits and other liabilities	1,702	1,430
Commitments and contingencies
Total liabilities	11,636	11,178
Redeemable noncontrolling interests	153	138	$ 50	$ 42
Tenneco Inc. shareholders’ equity	1,628	1,726
Noncontrolling interests	199	190
Total equity	1,827	1,916
Total liabilities, redeemable noncontrolling interests and equity	13,616	13,232
Reclass and Elims
Current assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Receivables, net	0	0
Inventories	0	0
Prepayments and other current assets	0	0
Total current assets	0	0
Plant, property and equipment, net	0	0
Investment in affiliated companies	(6,451)	(6,277)
Long-term receivables, net	0	0
Goodwill	0	0
Intangibles, net	0	0
Investments in nonconsolidated affiliates	0	0
Deferred income taxes	0	0
Other assets	0	(15)
Total assets	(6,451)	(6,292)
Current liabilities:
Short-term debt, including current maturities of long-term debt	0	0
Accounts payable	0	0
Accrued compensation and employee benefits	0	0
Accrued income taxes	0	(15)
Accrued expenses and other current liabilities	0	0
Total current liabilities	0	(15)
Long-term debt	0	0
Intercompany due to (due from)	0	0
Deferred income taxes	0	0
Postretirement benefits and other liabilities	0	0
Commitments and contingencies
Total liabilities	0	(15)
Redeemable noncontrolling interests	0	0
Tenneco Inc. shareholders’ equity	(6,451)	(6,277)
Noncontrolling interests	0	0
Total equity	(6,451)	(6,277)
Total liabilities, redeemable noncontrolling interests and equity	(6,451)	(6,292)
Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	143	329
Restricted cash	0	0
Receivables, net	1,037	943
Inventories	964	958
Prepayments and other current assets	217	254
Total current assets	2,361	2,484
Plant, property and equipment, net	1,149	1,131
Investment in affiliated companies	1,544	1,421
Long-term receivables, net	8	9
Goodwill	462	263
Intangibles, net	1,000	1,007
Investments in nonconsolidated affiliates	43	43
Deferred income taxes	252	255
Other assets	205	48
Total assets	7,024	6,661
Current liabilities:
Short-term debt, including current maturities of long-term debt	14	1
Accounts payable	996	858
Accrued compensation and employee benefits	75	88
Accrued income taxes	(3)	0
Accrued expenses and other current liabilities	395	436
Total current liabilities	1,477	1,383
Long-term debt	133	3
Intercompany due to (due from)	2,072	2,726
Deferred income taxes	0	0
Postretirement benefits and other liabilities	881	225
Commitments and contingencies
Total liabilities	4,563	4,337
Redeemable noncontrolling interests	0	0
Tenneco Inc. shareholders’ equity	2,461	2,324
Noncontrolling interests	0	0
Total equity	2,461	2,324
Total liabilities, redeemable noncontrolling interests and equity	7,024	6,661
Nonguarantor Subsidiaries
Current assets:
Cash and cash equivalents	210	364
Restricted cash	6	5
Receivables, net	1,806	1,629
Inventories	1,302	1,287
Prepayments and other current assets	311	311
Total current assets	3,635	3,596
Plant, property and equipment, net	2,361	2,361
Investment in affiliated companies	0	0
Long-term receivables, net	1	1
Goodwill	329	383
Intangibles, net	685	510
Investments in nonconsolidated affiliates	485	501
Deferred income taxes	208	200
Other assets	379	180
Total assets	8,083	7,732
Current liabilities:
Short-term debt, including current maturities of long-term debt	130	152
Accounts payable	1,863	1,894
Accrued compensation and employee benefits	288	255
Accrued income taxes	33	52
Accrued expenses and other current liabilities	550	488
Total current liabilities	2,864	2,841
Long-term debt	29	32
Intercompany due to (due from)	(64)	(215)
Deferred income taxes	110	88
Postretirement benefits and other liabilities	802	705
Commitments and contingencies
Total liabilities	3,741	3,451
Redeemable noncontrolling interests	153	138
Tenneco Inc. shareholders’ equity	3,990	3,953
Noncontrolling interests	199	190
Total equity	4,189	4,143
Total liabilities, redeemable noncontrolling interests and equity	8,083	7,732
Tenneco Inc
Current assets:
Cash and cash equivalents	4	4
Restricted cash	0	0
Receivables, net	0	0
Inventories	0	0
Prepayments and other current assets	27	25
Total current assets	31	29
Plant, property and equipment, net	9	9
Investment in affiliated companies	4,907	4,856
Long-term receivables, net	0	0
Goodwill	0	223
Intangibles, net	2	2
Investments in nonconsolidated affiliates	0	0
Deferred income taxes	11	12
Other assets	0	0
Total assets	4,960	5,131
Current liabilities:
Short-term debt, including current maturities of long-term debt	15	0
Accounts payable	2	7
Accrued compensation and employee benefits	0	0
Accrued income taxes	0	27
Accrued expenses and other current liabilities	49	77
Total current liabilities	66	111
Long-term debt	5,255	5,305
Intercompany due to (due from)	(2,008)	(2,511)
Deferred income taxes	0	0
Postretirement benefits and other liabilities	19	500
Commitments and contingencies
Total liabilities	3,332	3,405
Redeemable noncontrolling interests	0	0
Tenneco Inc. shareholders’ equity	1,628	1,726
Noncontrolling interests	0	0
Total equity	1,628	1,726
Total liabilities, redeemable noncontrolling interests and equity	$ 4,960	$ 5,131

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Supplemental Guarantor Condensed Consolidating Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net cash provided (used) by operating activities	$ (150)	$ 0
Investing Activities
Acquisition of business, net of cash acquired	(158)	0
Proceeds from sale of assets	1	2
Cash payments for property, plant, and equipment	(210)	(89)
Net proceeds from sale of business	22	0
Other	2	0
Proceeds from deferred purchase price of factored receivables	60	34
Net cash used by investing activities	(283)	(53)
Financing Activities
Cash dividends	(20)	(13)
Repayments of term loans and notes	(64)	(13)
Proceeds from term loans and notes	28	6
Issuance (repurchase) of common shares	(2)	(2)
Borrowings on revolving lines of credit	2,119	1,267
Payments on revolving lines of credit	(1,981)	(1,189)
Net increase (decrease) in bank overdrafts	(1)	(4)
Other	(3)	(30)
Intercompany dividend payments and net increase (decrease) in intercompany obligations	0	0
Distributions to noncontrolling interest partners	(1)	0
Net cash (used) provided by financing activities	75	22
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	19	3
Increase (decrease) in cash, cash equivalents and restricted cash	(339)	(28)
Cash, cash equivalents and restricted cash, beginning of period	702	318
Cash, cash equivalents and restricted cash, end of period	363	290
Reclass and Elims
Operating Activities
Net cash provided (used) by operating activities	0	0
Investing Activities
Acquisition of business, net of cash acquired	0
Proceeds from sale of assets	0	0
Cash payments for property, plant, and equipment	0	0
Net proceeds from sale of business	0
Other	0
Proceeds from deferred purchase price of factored receivables	0	0
Net cash used by investing activities	0	0
Financing Activities
Cash dividends	0	0
Repayments of term loans and notes	0	0
Proceeds from term loans and notes	0	0
Issuance (repurchase) of common shares	0	0
Borrowings on revolving lines of credit	0	0
Payments on revolving lines of credit	0	0
Net increase (decrease) in bank overdrafts	0	0
Other	0	0
Intercompany dividend payments and net increase (decrease) in intercompany obligations	0	0
Distributions to noncontrolling interest partners	0
Net cash (used) provided by financing activities	0	0
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash, beginning of period	0	0
Cash, cash equivalents and restricted cash, end of period	0	0
Guarantor Subsidiaries
Operating Activities
Net cash provided (used) by operating activities	(29)	(27)
Investing Activities
Acquisition of business, net of cash acquired	0
Proceeds from sale of assets	0	0
Cash payments for property, plant, and equipment	(60)	(40)
Net proceeds from sale of business	6
Other	2
Proceeds from deferred purchase price of factored receivables	0	0
Net cash used by investing activities	(52)	(40)
Financing Activities
Cash dividends	0	0
Repayments of term loans and notes	(1)	(5)
Proceeds from term loans and notes	0	0
Issuance (repurchase) of common shares	0	0
Borrowings on revolving lines of credit	1,856	1,093
Payments on revolving lines of credit	(1,724)	(1,026)
Net increase (decrease) in bank overdrafts	0	0
Other	0	0
Intercompany dividend payments and net increase (decrease) in intercompany obligations	(236)	3
Distributions to noncontrolling interest partners	0
Net cash (used) provided by financing activities	(105)	65
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents and restricted cash	(186)	(2)
Cash, cash equivalents and restricted cash, beginning of period	329	7
Cash, cash equivalents and restricted cash, end of period	143	5
Non-Guarantor Subsidiaries
Operating Activities
Net cash provided (used) by operating activities	(75)	32
Investing Activities
Acquisition of business, net of cash acquired	(158)
Proceeds from sale of assets	1	2
Cash payments for property, plant, and equipment	(150)	(49)
Net proceeds from sale of business	16
Other	0
Proceeds from deferred purchase price of factored receivables	60	34
Net cash used by investing activities	(231)	(13)
Financing Activities
Cash dividends	0	0
Repayments of term loans and notes	(37)	(8)
Proceeds from term loans and notes	28	6
Issuance (repurchase) of common shares	0	0
Borrowings on revolving lines of credit	54	8
Payments on revolving lines of credit	(63)	(12)
Net increase (decrease) in bank overdrafts	(1)	(4)
Other	(3)	(30)
Intercompany dividend payments and net increase (decrease) in intercompany obligations	157	(7)
Distributions to noncontrolling interest partners	(1)
Net cash (used) provided by financing activities	134	(47)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	19	3
Increase (decrease) in cash, cash equivalents and restricted cash	(153)	(25)
Cash, cash equivalents and restricted cash, beginning of period	369	311
Cash, cash equivalents and restricted cash, end of period	216	286
Tenneco Inc
Operating Activities
Net cash provided (used) by operating activities	(46)	(5)
Investing Activities
Acquisition of business, net of cash acquired	0
Proceeds from sale of assets	0	0
Cash payments for property, plant, and equipment	0	0
Net proceeds from sale of business	0
Other	0
Proceeds from deferred purchase price of factored receivables	0	0
Net cash used by investing activities	0	0
Financing Activities
Cash dividends	(20)	(13)
Repayments of term loans and notes	(26)	0
Proceeds from term loans and notes	0	0
Issuance (repurchase) of common shares	(2)	(2)
Borrowings on revolving lines of credit	209	166
Payments on revolving lines of credit	(194)	(151)
Net increase (decrease) in bank overdrafts	0	0
Other	0	0
Intercompany dividend payments and net increase (decrease) in intercompany obligations	79	4
Distributions to noncontrolling interest partners	0
Net cash (used) provided by financing activities	46	4
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0	0
Increase (decrease) in cash, cash equivalents and restricted cash	0	(1)
Cash, cash equivalents and restricted cash, beginning of period	4	0
Cash, cash equivalents and restricted cash, end of period	$ 4	$ (1)