Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,690		$	2,814		$	—		$	—		$	4,504
Affiliated companies	235			283			—			(518		)	—
	1,925			3,097			—			(518		)	4,504
Costs and expenses
Cost of sales	1,618			2,692			1			(518		)	3,793
Restructuring charges and asset impairments	43			18			—			—			61
Engineering, research, and development	30			48			—			—			78
Selling, general, and administrative	148			143			(3		)	—			288
Depreciation and amortization	81			88			—			—			169
	1,920			2,989			(2		)	(518		)	4,389
Other expense (income)
Non-service postretirement benefit costs	(1		)	5			—			—			4
Equity in (income) losses of nonconsolidated affiliates, net of tax	(1		)	(16		)	—			—			(17		)
Other (income) expense, net	30			(43		)	—			—			(13		)
	28			(54		)	—			—			(26		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(23		)	162			2			—			141
Interest expense:
External, net of interest capitalized	(6		)	12			76			—			82
Affiliated companies, net of interest income	(6		)	11			(5		)	—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(11		)	139			(69		)	—			59
Income tax expense (benefit)	—			27			(13		)	—			14
Equity in net income (loss) from affiliated companies	93			—			82			(175		)	—
Net income (loss)	82			112			26			(175		)	45
Less: Net income (loss) attributable to noncontrolling interests	—			19			—			—			19
Net income (loss) attributable to Tenneco Inc.	$	82		$	93		$	26		$	(175	)	$	26
Comprehensive income (loss) attributable to Tenneco Inc.	$	51		$	67		$	(86	)	$	(28	)	$	4

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	1,028		$	1,505		$	—		$	—		$	2,533
Affiliated companies	134			156			—			(290		)	—
	1,162			1,661			—			(290		)	2,533
Costs and expenses
Cost of sales	984			1,440			—			(290		)	2,134
Restructuring charges and asset impairments	2			27			—			—			29
Engineering, research, and development	19			20			—			—			39
Selling, general, and administrative	82			72			—			—			154
Depreciation and amortization	24			36			—			—			60
	1,111			1,595			—			(290		)	2,416
Other expense (income)
Non-service postretirement benefit costs	3			—			—			—			3
Other (income) expense, net	15			(22		)	—			10			3
	18			(22		)	—			10			6
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	33			88			—			(10		)	111
Interest expense:
External, net of interest capitalized	10			3			9			—			22
Affiliated companies, net of interest income	(4		)	—			4			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	27			85			(13		)	(10		)	89
Income tax (benefit) expense	(2		)	28			—			—			26
Equity in net income (loss) from affiliated companies	37			—			60			(97		)	—
Net income (loss)	66			57			47			(107		)	63
Less: Net income (loss) attributable to noncontrolling interests	—			16			—			—			16
Net income (loss) attributable to Tenneco Inc.	$	66		$	41		$	47		$	(107	)	$	47
Comprehensive income (loss) attributable to Tenneco Inc.	$	66		$	41		$	(41	)	$	(107	)	$	(41	)

	Six Months Ended June 30, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	3,381		$	5,607		$	—		$	—		$	8,988
Affiliated companies	453			564			—			(1,017		)	—
	3,834			6,171			—			(1,017		)	8,988
Costs and expenses
Cost of sales	3,294			5,380			—			(1,017		)	7,657
Restructuring charges and asset impairments	51			34			—			—			85
Goodwill impairment charge	33			27			—			—			60
Engineering, research, and development	69			101			—			—			170
Selling, general, and administrative	326			278			—			—			604
Depreciation and amortization	164			174			—			—			338
	3,937			5,994			—			(1,017		)	8,914
Other expense (income)
Non-service postretirement benefit costs	(1		)	7			—			—			6
Equity in losses of nonconsolidated affiliates, net of tax	(2		)	(31		)	—			—			(33		)
Other (income) expense, net	23			(39		)	—			—			(16		)
	20			(63		)	—			—			(43		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(123		)	240			—			—			117
Interest expense:
External, net of interest capitalized	5			17			141			—			163
Affiliated companies, net of interest income	(14		)	19			(5		)	—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	(114		)	204			(136		)	—			(46		)
Income tax expense (benefit)	(18		)	57			(25		)	—			14
Equity in net income (loss) from affiliated companies	72			—			20			(92		)	—
Net income (loss)	(24		)	147			(91		)	(92		)	(60		)
Less: Net income (loss) attributable to noncontrolling interests	—			31			—			—			31
Net income (loss) attributable to Tenneco Inc.	$	(24	)	$	116		$	(91	)	$	(92	)	$	(91	)
Comprehensive income (loss) attributable to Tenneco Inc.	$	(17	)	$	128		$	(79	)	$	(111	)	$	(79	)

	Six Months Ended June 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Revenues
Net sales and operating revenues:
External	$	2,060		$	3,054		$	—		$	—		$	5,114
Affiliated companies	257			312			—			(569		)	—
	2,317			3,366			—			(569		)	5,114
Costs and expenses
Cost of sales	1,991			2,905			—			(569		)	4,327
Restructuring charges and asset impairments	3			38			—			—			41
Engineering, research, and development	37			42			—			—			79
Selling, general, and administrative	155			150			—			—			305
Depreciation and amortization	47			73			—			—			120
	2,233			3,208			—			(569		)	4,872
Other expense (income)
Non-service postretirement benefit costs	6			—			—			—			6
Other (income) expense, net	24			(31		)	—			10			3
	30			(31		)	—			10			9
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	54			189			—			(10		)	233
Interest expense:
External, net of interest capitalized	20			6			19			—			45
Affiliated companies, net of interest income	(7		)	—			7			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies	41			183			(26		)	(10		)	188
Income tax (benefit) expense	(1		)	52			—			—			51
Equity in net income (loss) from affiliated companies	85			—			133			(218		)	—
Net income (loss)	127			131			107			(228		)	137
Less: Net income (loss) attributable to noncontrolling interests	—			30			—			—			30
Net income (loss) attributable to Tenneco Inc.	$	127		$	101		$	107		$	(228	)	$	107
Comprehensive income (loss) attributable to Tenneco Inc.	$	127		$	101		$	41		$	(228	)	$	41

Balance Sheet

BALANCE SHEETS

	June 30, 2019
	Guarantor Subsidiaries		Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	216	$	165		$	3		$	—		$	384
Restricted cash	—		6			—			—			6
Receivables, net	965		1,882			—			—			2,847
Inventories, net	927		1,280			—			—			2,207
Prepayments and other current assets	193		329			28			—			550
Total current assets	2,301		3,662			31			—			5,994
Property, plant and equipment, net	1,142		2,418			9			—			3,569
Investment in affiliated companies	1,637		—			5,204			(6,841		)	—
Long-term receivables, net	9		1			—			—			10
Goodwill	470		329			—			—			799
Intangibles, net	971		678			—			—			1,649
Investments in nonconsolidated affiliates	42		489			—			—			531
Deferred income taxes	256		212			12			—			480
Other assets	150		396			14			—			560
Total assets	$	6,978	$	8,185		$	5,270		$	(6,841	)	$	13,592
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	1	$	154		$	15		$	—		$	170
Accounts payable	904		1,821			—			—			2,725
Accrued compensation and employee benefits	87		304			—			—			391
Accrued income taxes	—		—			—			—			—
Accrued expenses and other current liabilities	426		542			56			—			1,024
Total current liabilities	1,418		2,821			71			—			4,310
Long-term debt	250		11			5,247			—			5,508
Intercompany due to (due from)	1,905		(196		)	(1,709		)	—			—
Deferred income taxes	—		110			—			—			110
Pension, postretirement benefits and other liabilities	817		835			23			—			1,675
Commitments and contingencies
Total liabilities	4,390		3,581			3,632			—			11,603
Redeemable noncontrolling interests	—		145			—			—			145
Tenneco Inc. shareholders’ equity	2,588		4,253			1,638			(6,841		)	1,638
Noncontrolling interests	—		206			—			—			206
Total equity	2,588		4,459			1,638			(6,841		)	1,844
Total liabilities, redeemable noncontrolling interests and equity	$	6,978	$	8,185		$	5,270		$	(6,841	)	$	13,592

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

	Six Months Ended June 30, 2019
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	(8	)	$	(2	)	$	(90	)	$	—		$	(100	)
Investing Activities
Acquisition of business, net of cash acquired	—			(158		)	—			—		—	(158		)
Proceeds from sale of assets	1			4			—			—			5
Cash payments for property, plant and equipment	(118		)	(261		)	—			—			(379		)
Net proceeds from sale of business	6			16			—			—			22
Other	1			(2		)	—			—			(1		)
Proceeds from deferred purchase price of factored receivables	—			147			—			—			147
Net cash used in investing activities	(110		)	(254		)	—			—			(364		)
Financing Activities
Cash dividends	—			—			(20		)	—			(20		)
Repayment of term loans and notes	—			(139		)	(51		)	—			(190		)
Proceeds from term loans and notes	—			111			—			—			111
Issuance (repurchase) of common shares	—			—			(2		)	—			(2		)
Decrease in bank overdrafts	—			(8		)	—			—			(8		)
Borrowings on revolving lines of credit	4,047			117			361			—			4,525
Payments on revolving lines of credit	(3,797		)	(111		)	(346		)	—			(4,254		)
Other	—			(1		)	—			—			(1		)
Intercompany dividends and net (decrease) increase in intercompany obligations	(245		)	98			147			—			—
Distribution to noncontrolling interests partners	—			(20		)	—			—			(20		)
Net cash (used in) provided by financing activities	5			47			89			—			141
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			11			—			—			11
Increase (decrease) in cash, cash equivalents and restricted cash	(113		)	(198		)	(1		)	—			(312		)
Cash, cash equivalents and restricted cash, January 1	329			369			4			—			702
Cash, cash equivalents and restricted cash, June 30	$	216		$	171		$	3		$	—		$	390

STATEMENT OF CASH FLOWS

	Six Months Ended June 30, 2018
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	79		$	13		$	(5	)	$	(9	)	$	78
Investing Activities
Proceeds from sale of assets	1			4			—			—			5
Cash payments for property, plant and equipment	(77		)	(97		)	—			—			(174		)
Proceeds from deferred purchase price of factored receivables	—			66			—			—			66
Other	2			—			—			—			2
Net cash used in investing activities	(74		)	(27		)	—			—			(101		)
Financing Activities
Proceeds from term loans and notes	—			9			—			—			9
Repayments of term loans and notes	(10		)	(18		)	—			—			(28		)
Borrowings on revolving lines of credit	2,349			45			275			—			2,669
Payments on revolving lines of credit	(2,315		)	(38		)	(261		)	—			(2,614		)
Issuance (repurchase) of common shares	—			—			(1		)	—			(1		)
Cash dividends	—			—			(25		)	—			(25		)
Net increase (decrease) in bank overdrafts	—			(7		)	—			—			(7		)
Distribution to noncontrolling interests partners	—			(28		)	—			—			(28		)
Other	(2		)	(20		)	—			—			(22		)
Intercompany dividends and net (decrease) increase in intercompany obligations	(32		)	6			17			9			—
Net cash (used in) provided by financing activities	(10		)	(51		)	5			9			(47		)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	—			(11		)	—			—			(11		)
Increase (decrease) in cash, cash equivalents and restricted cash	(5		)	(76		)	—			—			(81		)
Cash, cash equivalents and restricted cash, January 1	7			311			—			—			318
Cash, cash equivalents and restricted cash, June 30	$	2		$	235		$	—		$	—		$	237