10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________ 

FORM 10-Q

(Mark One)

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

For the Quarterly Period Ended March 31, 2022

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

(State or other jurisdiction of

incorporation or organization)

7450 N McCormick Blvd, Skokie, Illinois

(Address of principal executive offices)

76-0515284

(I.R.S. Employer

Identification No.)

60076

(Zip Code)

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

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 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  ☑      No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☑      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.

Large accelerated filer	☑	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  ☑

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: 83,380,100 shares outstanding as of May 3, 2022.

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	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	49
Part II — Other Information
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	53

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

2

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 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, without limitation:

•general economic, business, market and social conditions, including the effects of the COVID-19 pandemic and the impact of inflationary pressures on materials, labor and other costs of doing business;

•our ability (or inability) to successfully execute cost reduction, performance improvement and other plans, including our plans in response to the COVID-19 pandemic and our previously announced accelerated performance improvement plan (“Accelerate”), and to realize the anticipated benefits from these plans;

•disasters, local and global public health emergencies or other catastrophic events, such as fires, earthquakes and flooding, pandemics or epidemics (including the COVID-19 pandemic), where we or our customers do business 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;

•supply chain disruptions, including constraints on steel and semiconductors and resulting increases in costs, impacting our company, our customers or the automotive industry;

•changes in capital availability or costs, including increases in our cost of borrowing (i.e., interest rate increases or fluctuations), the amount of our debt, our ability to access capital markets at favorable rates, and the credit ratings of our debt and our financial flexibility to respond to the COVID-19 pandemic;

•our ability to comply with the covenants contained in the agreements governing our indebtedness and otherwise have sufficient liquidity through the COVID-19 pandemic;

•our working capital requirements;

•our ability to source and procure needed materials, components and other products, and services (including the services of employees) 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 product performance, product safety or intellectual property rights;

•changes in consumer demand for our original equipment (“OE”) products or aftermarket products, 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;

•the continued evolution of the automotive industry towards car and ride sharing, and autonomous vehicles;

•the announced plans, in an effort to reduce greenhouse gas emissions, of governments and vehicle manufactures to limit production of diesel and gasoline powered vehicles in various national and local jurisdictions globally;

•the cyclical nature of the global vehicle industry, including the performance of the global aftermarket sector and the impact of vehicle parts’ longer product lives;

•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;

•acts of war (including the current conflict between Russia and Ukraine) 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 impact of these acts on economic, financial and social conditions in the countries where we operate;

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

•our dependence on certain large customers, including the loss of any of our large OE manufacturer customers (on whom we depend for 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;

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

3

•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);

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

•risks inherent in operating a multi-national company, including economic conditions, such as currency exchange and inflation rates, political conditions in the countries where we operate or sell our products, adverse changes in trade agreements, tariffs, immigration policies, political stability or instability, 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 impact of improvements in automotive parts on aftermarket demand for some of our products;

•industry-wide strikes, work stoppages, labor shortages, 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, including increased costs associated with strikes or labor or other economic disruptions;

•developments relating to our intellectual property, including our ability to adapt to changes in technology and the availability and effectiveness of legal protection for our innovations and brands;

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

•the failure, breach of, or potential disruption to, our information technology systems, including cyber attacks, such as ransomware or similar intrusions, cyber incidents, or misappropriation, exposure or corruption of sensitive information stored on such systems and the interruption to our business that such failure, breach or disruption may cause;

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

•customer acceptance of new products;

•our ability to successfully integrate, and benefit from, any acquisitions 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, and other intangible assets or the inability to fully realize our deferred tax assets;

•the negative impact 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 impact of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery, and other methods;

•changes by the Financial Accounting Standards Board (“FASB”) or the Securities and Exchange Commission (“SEC”) of generally accepted accounting principles or other authoritative guidance;

•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 impact 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;

•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.

4

In addition, this report includes forward-looking statements regarding the Agreement and Plan of Merger (the “Merger Agreement”) that the Company entered into with Pegasus Holdings III, LLC (the “Parent”) and Pegasus Merger Co. on February 22, 2022. Pursuant to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Tenneco (the “Merger”) with Tenneco continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of Parent. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include (without limitation and in addition to the risks set forth above):

•the inability to consummate the Merger within the anticipated time period, or at all, due to any reason, including the failure to obtain stockholder approval to adopt the Merger Agreement, the failure to obtain required regulatory approvals or the failure to satisfy the other conditions to the consummation of the Merger;

•the risk that the Merger Agreement may be terminated in circumstances requiring us to pay a termination fee;

•the risk that the Merger disrupts our current plans and operations or diverts management’s attention from its ongoing business;

•the effect of the announcement of the Merger on our ability to retain and hire key personnel and maintain relationships with our customers, suppliers and others with whom we do business;

•the effect of the announcement of the Merger on our operating results and business generally;

•the amount of costs, fees and expenses related to the Merger;

•the risk that our stock price may decline significantly if the Merger is not consummated;

•the nature, cost and outcome of any litigation and other legal proceedings, including any such proceedings related to the Merger and instituted against Tenneco and others; and

•other risks to consummation of the proposed Merger, including the risk that the proposed Merger will not be consummated within the expected time period or at all.

The risks included here are not exhaustive. Refer to “Part II, Item 1A — Risk Factors” herein and “Part I, Item 1A — Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021 for further discussion regarding our exposure to risks. Additionally, 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 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.

5

PART I – FINANCIAL INFORMATION

ITEM 1.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

TENNECO INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)

(in millions, except per share amounts) 

	Three Months Ended March 31,
	2022		2021
Revenues
Net sales and operating revenues	$	4,649	$	4,731
Costs and expenses
Cost of sales (exclusive of depreciation and amortization)	4,108		4,061
Selling, general, and administrative	252		255
Depreciation and amortization	146		155
Engineering, research, and development	75		72
Restructuring charges, net and asset impairments	13		25
	4,594		4,568
Other income (expense)
Non-service pension and postretirement benefit (costs) credits	3		3
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	12		22
Gain (loss) on extinguishment of debt	—		8
Other income (expense), net	7		8
	22		41
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204
Interest expense	(66)		(70)
Earnings (loss) before income taxes and noncontrolling interests	11		134
Income tax (expense) benefit	(30)		(47)
Net income (loss)	(19)		87
Less: Net income (loss) attributable to noncontrolling interests	19		22
Net income (loss) attributable to Tenneco Inc.	$	(38)	$	65
Earnings (loss) per share
Basic earnings (loss) per share:
Earnings (loss) per share	$	(0.46)	$	0.80
Weighted average shares outstanding	83.1		82.0
Diluted earnings (loss) per share:
Earnings (loss) per share	$	(0.46)	$	0.79
Weighted average shares outstanding	83.1		82.5

See accompanying notes to the condensed consolidated financial statements.

6

TENNECO INC.

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

(in millions)

	Three Months Ended March 31,
	2022		2021
Net income (loss)	$	(19)	$	87
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3)		(52)
Defined benefit plans	—		3
Cash flow hedges	4		(2)
Other comprehensive income (loss), net of tax	1		(51)
Comprehensive income (loss)	(18)		36
Less: Comprehensive income (loss) attributable to noncontrolling interests	16		16
Comprehensive income (loss) attributable to common shareholders	$	(34)	$	20

See accompanying notes to the condensed consolidated financial statements.

7

TENNECO INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions, except shares)

	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	636	$	859
Restricted cash	5		6
Receivables:
Customer notes and accounts, net	2,503		2,308
Other	133		111
Inventories	2,049		1,846
Prepayments and other current assets	694		683
Total current assets	6,020		5,813
Property, plant, and equipment, net	2,811		2,872
Long-term receivables, net	6		5
Goodwill	507		507
Intangibles, net	1,022		1,056
Investments in nonconsolidated affiliates	513		539
Deferred income taxes	268		266
Other assets	556		564
Total assets	$	11,703	$	11,622
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	41	$	57
Accounts payable	3,244		2,955
Accrued compensation and employee benefits	445		381
Accrued income taxes	52		71
Accrued expenses and other current liabilities	1,102		1,227
Total current liabilities	4,884		4,691
Long-term debt	4,976		5,018
Deferred income taxes	103		105
Pension and postretirement benefits	803		830
Deferred credits and other liabilities	490		491
Commitments and contingencies (Note 11)
Total liabilities	11,256		11,135
Redeemable noncontrolling interests	90		91
Tenneco Inc. shareholders’ equity:
Preferred stock - $0.01 par value; none issued	—		—
Class A voting common stock - $0.01 par value; shares issued: (March 31, 2022 - 97,966,913; December 31, 2021 - 96,713,188)	1		1
Class B non-voting convertible common stock - $0.01 par value; none issued	—		—
Additional paid-in capital	4,464		4,462
Accumulated other comprehensive loss	(591)		(595)
Accumulated deficit	(2,891)		(2,853)
Shares held as treasury stock - at cost: (March 31, 2022 and December 31, 2021 - 14,592,888)	(930)		(930)
Total Tenneco Inc. shareholders’ equity (deficit)	53		85
Noncontrolling interests	304		311
Total equity	357		396
Total liabilities, redeemable noncontrolling interests, and equity	$	11,703	$	11,622

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,
	2022		2021
Operating Activities
Net income (loss)	$	(19)	$	87
Adjustments to reconcile net income (loss) to cash (used) provided by operating activities:
Depreciation and amortization	146		155
Deferred income taxes	(3)		(4)
Stock-based compensation	6		5
Restructuring charges and asset impairments, net of cash paid	(5)		—
Change in pension and other postretirement benefit plans	(13)		(1)
Equity in earnings of nonconsolidated affiliates	(12)		(22)
Cash dividends received from nonconsolidated affiliates	32		57
Loss (gain) on sale of assets and other	(19)		(9)
Changes in operating assets and liabilities:
Receivables	(320)		(452)
Inventories	(213)		(120)
Payables and accrued expenses	325		240
Accrued interest and accrued income taxes	(22)		8
Other assets and liabilities	30		6
Net cash (used) provided by operating activities	(87)		(50)
Investing Activities
Proceeds from sale of assets	5		7
Net proceeds from sale of business	1		1
Cash payments for property, plant and equipment	(93)		(95)
Proceeds from deferred purchase price of factored receivables	99		115
Other	(1)		—
Net cash (used) provided by investing activities	11		28
Financing Activities
Proceeds from term loans and notes	4		813
Repayments and extinguishment costs of term loans and notes	(68)		(862)
Borrowings on revolving lines of credit	1,583		1,382
Payments on revolving lines of credit	(1,584)		(1,394)
Debt issuance costs of long-term debt	—		(11)
Distributions to noncontrolling interest partners	(24)		(7)
Other	(48)		(51)
Net cash (used) provided by financing activities	(137)		(130)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(11)		(20)
Increase (decrease) in cash, cash equivalents, and restricted cash	(224)		(172)
Cash, cash equivalents, and restricted cash, beginning of period	865		803
Cash, cash equivalents, and restricted cash, end of period	$	641	$	631
Supplemental Cash Flow Information
Cash paid during the period for interest	$	56	$	65
Cash paid during the period for income taxes, net of refunds	$	67	$	46
Lease assets obtained in exchange for new operating lease liabilities	$	19	$	15
Non-cash Investing Activities
Period end balance of accounts payable for property, plant, and equipment	$	78	$	91
Deferred purchase price of receivables factored in the period	$	121	$	135

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 (Deficit)
	$0.01 Par Value Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Treasury Stock		Total Tenneco Inc. Shareholders’ Equity (Deficit)		Noncontrolling Interests		Total Equity
Balance at December 31, 2021	$	1	$	4,462	$	(595)	$	(2,853)	$	(930)	$	85	$	311	$	396
Net income (loss)							(38)				(38)		7		(31)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments					—						—		(1)		(1)
Defined benefit plans					—						—		—		—
Cash flow hedges					4						4		—		4
Comprehensive income (loss)											(34)		6		(28)
Stock-based compensation, net	—		2		—		—		—		2		—		2
Distributions declared to noncontrolling interests	—		—		—		—		—		—		(13)		(13)
Balance at March 31, 2022	$	1	$	4,464	$	(591)	$	(2,891)	$	(930)	$	53	$	304	$	357

	Tenneco Inc. Shareholders’ Equity (Deficit)
	$0.01 Par Value Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Treasury Stock		Total Tenneco Inc. Shareholders’ Equity (Deficit)		Noncontrolling Interests		Total Equity
Balance at December 31, 2020	$	1	$	4,442	$	(744)	$	(2,888)	$	(930)	$	(119)	$	300	$	181
Net income (loss)							65				65		10		75
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments					(46)						(46)		(3)		(49)
Defined benefit plans					3						3		—		3
Cash flow hedges					(2)						(2)		—		(2)
Comprehensive income (loss)											20		7		27
Stock-based compensation, net	—		3		—		—		—		3		—		3
Distributions declared to noncontrolling interests	—		—		—		—		—		—		(2)		(2)
Balance at March 31, 2021	$	1	$	4,445	$	(789)	$	(2,823)	$	(930)	$	(96)	$	305	$	209

See accompanying notes to the condensed consolidated financial statements.

10

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, markets, and distributes products and services for light vehicle, commercial truck, off-highway, industrial, motorsport, and aftermarket customers. Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain and serves both original equipment (“OE”) manufacturers and the repair and replacement markets worldwide.

Proposed Merger

On February 22, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Pegasus Holdings III, LLC (“Parent”) and Pegasus Merger Co., a wholly owned subsidiary of Parent (“Merger Sub” and together with Parent, “Buyer”). Pursuant to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Tenneco (the “Merger”) with Tenneco continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of certain funds managed by affiliates of Apollo Global Management, Inc. At the effective time of the Merger (the “Effective Time”), each share of the Company’s Class A voting common stock that is issued and outstanding immediately prior to the Effective Time (other than shares to be cancelled pursuant to the Merger Agreement or shares of Class A voting common stock held by holders who have made a valid demand for appraisal in accordance with Section 262 of the Delaware General Corporation Law), will be automatically converted into the right to receive $20.00 in cash, without interest.

At the Effective Time, subject to the terms and conditions set forth in the Merger Agreement, each restricted share unit award (“RSU”) and each performance share unit award (“PSU”) of Tenneco that is outstanding immediately prior to the Effective Time will automatically be cancelled and converted into the holder’s right to receive a cash amount (subject to any applicable withholding taxes) calculated based on the per-share Merger consideration of $20.00.

The closing of the Merger is subject to various conditions, including (i) the adoption of the Merger Agreement by holders of a majority of the issued and outstanding shares of the Company’s common stock; (ii) the absence of any order, injunction or other legal or regulatory restraint making illegal, enjoining or otherwise prohibiting the closing of the Merger; (iii) the receipt of clearances and/or approvals under applicable foreign competition and/or other laws; (iv) the accuracy of the representations and warranties contained in the Merger Agreement, subject to customary materiality qualifications; and (v) compliance with the covenants and agreements contained in the Merger Agreement as of the closing of the Merger. In addition, the obligation of Parent and Merger Sub to consummate the Merger is subject to the absence, since the date of the Merger Agreement, of a Company Material Adverse Effect (as defined in the Merger Agreement under clause (b) of such definition). The closing of the Merger is not subject to a financing condition, and Parent has obtained equity and debt financing commitments for the purpose of financing the Merger and the other transactions contemplated by the Merger Agreement.

The Company’s Board of Directors and the sole member or board of directors, as applicable, of Parent and Merger Sub have each unanimously approved the Merger and the Merger Agreement. If approved by the Company’s stockholders, the Merger is expected to close in the second half of 2022. Until the closing, the Company will continue to operate as an independent company.

The Company has incurred and will incur certain significant costs relating to the Merger, such as legal, accounting, financial advisory, printing and other professional services fees, as well as other customary payments. In the event that the Merger Agreement is terminated, the Company may also be required to pay a cash termination fee to Parent of $54 million, as required under the Merger Agreement under certain circumstances. If the Merger Agreement is terminated under certain other circumstances, including if the Merger Agreement is terminated following December 31, 2022 and at the time of such termination the only conditions to the closing of the Merger that have not been waived or satisfied (other than conditions that are, by their terms, satisfied at such closing) are the receipt of approvals, consents and consultations pursuant to the competition laws of Russia or Ukraine, Parent will be required to pay the Company a cash termination fee of $108 million.

11

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

2. 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, 2021, which was filed with the Securities and Exchange Commission on February 24, 2022 (the “2021 Form 10-K”). Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

There are many uncertainties related to the COVID-19 global pandemic (including the recent implementation of government lockdowns in China), the semiconductor shortage, the Russia and Ukraine conflict, other supply chain challenges, and the effects of inflation and rising interest rates on the overall macroeconomic environment that could negatively affect the Company’s results of operations, financial position, and cash flows. The Company does not have significant operations in Russia or Ukraine compared to its global operations, but its operations in these regions have been disrupted due to the conflict. Sales from the Company’s Russian subsidiaries and sales into Russia and Ukraine from its global subsidiaries were less than 1% of its consolidated “Net sales and operating revenue” for the year ended December 31, 2021.

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 in the event of a change in control of Tenneco Inc. or certain of its subsidiaries or the passage of time.

At March 31, 2022 and December 31, 2021, the Company held redeemable noncontrolling interests of $41 million and $50 million which were not currently redeemable or probable of becoming redeemable. The redemption of these redeemable noncontrolling interests is not solely within the Company’s control, therefore, they 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. As such, these noncontrolling interests have not been remeasured to redemption value.

In addition, at March 31, 2022 and December 31, 2021, the Company held a redeemable noncontrolling interest of $49 million and $41 million, which became redeemable during the three months ended March 31, 2022 following the third anniversary of the Öhlins acquisition on January 10, 2019. This redeemable noncontrolling interest represents a 9.5% ownership interest in Öhlins Intressenter AB (the “KÖ Interest”) retained by K Öhlin Holding AB (“Köhlin”). This noncontrolling interest is also presented in the temporary equity section of the Company’s condensed consolidated balance sheets and has been remeasured to its redemption value. The Company immediately recognizes changes to redemption value as a component of “Net income (loss) attributable to noncontrolling interests” in the condensed consolidated statements of income (loss).

The following is a rollforward of activities in the Company’s redeemable noncontrolling interests:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	91	$	78
Net income (loss) attributable to redeemable noncontrolling interests	4		7
Other comprehensive (loss) income	(2)		(3)
Redemption value measurement adjustments	8		5
Dividends declared to noncontrolling interests	(11)		—
Balance at end of period	$	90	$	87

Subsequent to March 31, 2022, the Company received a notice from Köhlin of its intention to redeem all of the KÖ Interest. The redemption of the KÖ Interest is expected to be paid in the second quarter of 2022.

12

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

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 as follows:

	Three Months Ended March 31,
	2022	2021
Weighted average shares of common stock outstanding	83,132,797	81,953,133
Effect of dilutive securities:
RSUs and PSUs	—	570,996
Weighted average shares of common stock outstanding including dilutive securities	83,132,797	82,524,129
Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share	3,919,083	2,075,446

Assets Held for Sale and Divestitures

At March 31, 2022 and December 31, 2021, the Company had $14 million and $22 million of assets held for sale, which primarily consists of land and buildings, and non-core machinery and equipment across multiple segments that are expected to be sold in the next twelve months, as well as $8 million and $9 million in related environmental and asset retirement obligation liabilities. The Company recognized $2 million of impairment charges on assets as held for sale during the three months ended March 31, 2022.

In the first quarter of 2022, the Company closed on the sale of a non-core business for cash proceeds of $3 million and recognized a loss on the sale of $2 million. The Company received $1 million of the purchase price in the first quarter of 2022, with the remaining $2 million expected to be received through the fourth quarter of 2022.

The assets and liabilities held for sale are recorded in “Prepayments and other current assets” and “Accrued expenses and other current liabilities” in the consolidated balance sheets at March 31, 2022 and December 31, 2021.

3. Restructuring Charges, Net and Asset Impairments

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 exit costs. Restructuring charges, net and asset impairments by segment are as follows:

Three Months Ended March 31, 2022

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	—	$	1	$	4	$	2	$	2	$	9
Other non-restructuring asset impairments	2		—		—		—		—		2
Impairment of assets held for sale	—		—		—		2		—		2
Total asset impairment charges	2		—		—		2		—		4
Total restructuring charges, net and asset impairments	$	2	$	1	$	4	$	4	$	2	$	13

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Severance and other charges, net

The Company recognized charges of $5 million in severance and other charges expected to be paid and a $2 million revision to previously recorded estimate for a cost reduction initiative during the three months ended March 31, 2022. The Company also recognized severance and other charges of $6 million related to plant consolidations, relocations, and closures during the three months ended March 31, 2022.

Performance Solutions recognized severance and other charges for the three months ended March 31, 2022 of $1 million related to plant consolidations, relocations, and closures, primarily in North America.

Clean Air recognized severance and other charges for the three months ended March 31, 2022 of $4 million related to plant consolidations, relocations, and closures in North America and Asia Pacific.

Powertrain recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2022 as follows:

•$3 million related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount. At March 31, 2022, total severance related restructuring charges for this program aggregate to $23 million, $18 million under the current voluntary program and $5 million related to other cost reduction initiatives. Total severance related charges are expected to be approximately $36 million;

•$1 million related to plant consolidations, relocations, and closures, primarily in Asia Pacific; and

•$2 million reduction in severance and other charges due to a revision in estimates in connection with other cost reduction initiatives primarily in Asia Pacific.

The Company also incurred $2 million in cash severance costs within its corporate component for the three months ended March 31, 2022.

Asset impairments

Other non-restructuring asset impairments

During the three months ended March 31, 2022, the Motorparts segment recognized asset impairment charges of $2 million related to the write-down of property, plant and equipment.

Impairment of assets held for sale

Refer to Note 2, “Basis of Presentation” for information on the impairment of assets held for sale.

Three Months Ended March 31, 2021

	Three Months Ended March 31, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	2	$	4	$	9	$	10	$	—	$	25
Total restructuring charges, net and asset impairments	$	2	$	4	$	9	$	10	$	—	$	25

Severance and other charges, net

The Company recognized a net charge of $17 million in severance and other charges expected to be paid for cost reduction initiatives during the three months ended March 31, 2021. The Company also recognized severance and other charges of $11 million related to plant consolidations, relocations, and closures during the three months ended March 31, 2021.

In response to the COVID-19 pandemic the Company announced Project Accelerate and executed global headcount reductions. The Company recognized a reduction of $3 million in revisions to estimates in connection with cash and severance payments expected to be paid in connection with these actions during the three months ended March 31, 2021.

Motorparts recognized severance and other charges for the three months ended March 31, 2021 of $2 million in connection with its supply chain rationalization and distribution network initiative to achieve efficiencies and improve throughput to its customers in North America.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Performance Solutions recognized severance and other charges for the three months ended March 31, 2021 of $4 million in connection with the other cost reduction initiatives primarily in Europe.

Clean Air recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2021 as follows:

•$15 million in severance and other charges, along with a reduction of $5 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;

•$2 million in severance and other charges related to plant consolidations and closures primarily in North America and Asia Pacific; and

•$3 million reduction in severance and other charges due to a revision in estimates in connection with Project Accelerate.

Powertrain recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2021 as follows:

•$1 million reduction in severance and other charges due to a revision in estimates in connection with the other cost reduction initiatives primarily in Europe;

•$9 million in severance and other charges related to plant consolidations, relocations, and closures, primarily in Europe and North America; and

•$2 million restructuring costs incurred related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount.

Restructuring Reserve Rollforward

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, 2022						Three Months Ended March 31, 2021
	Employee Costs		Facility Closure and Other Costs		Total		Employee Costs		Facility Closure and Other Costs		Total
Balance at beginning of period	$	63	$	—	$	63	$	99	$	1	$	100
Provisions	10		1		11		31		3		34
Revisions to estimates	(2)		—		(2)		(9)		—		(9)
Payments	(17)		(1)		(18)		(21)		(4)		(25)
Foreign currency	—		—		—		(1)		—		(1)
Balance at end of period	$	54	$	—	$	54	$	99	$	—	$	99

4. Inventories

Inventory by major classification was as follows:

	March 31, 2022		December 31, 2021
Finished goods	$	840	$	747
Work in process	595		508
Raw materials	538		510
Materials and supplies	76		81
Total inventories	$	2,049	$	1,846

15

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

5. Goodwill and Other Intangible Assets

The Company’s goodwill consists of the following:

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Gross carrying amount at beginning of period	$	623	$	546	$	22	$	59	$	1,250
Foreign exchange	—		(1)		—		—		(1)
Gross carrying amount at end of period	623		545		22		59		1,249
Accumulated impairment loss at beginning of period	(310)		(374)		—		(59)		(743)
Foreign exchange	—		1		—		—		1
Accumulated impairment loss at end of period	(310)		(373)		—		(59)		(742)
Net carrying value at end of period	$	313	$	172	$	22	$	—	$	507

The Company’s intangible assets consist of the following:

		March 31, 2022						December 31, 2021
	Useful Lives (in Years)	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	$	991	$	(396)	$	595	$	993	$	(374)	$	619
Customer contract	10	8		(7)		1		8		(7)		1
Patents	10 to 17	1		(1)		—		1		(1)		—
Technology rights	10 to 30	133		(63)		70		135		(62)		73
Packaged kits know-how	10	54		(19)		35		54		(18)		36
Catalogs	10	47		(16)		31		47		(15)		32
Licensing agreements	3 to 5	63		(49)		14		64		(47)		17
Land use rights	28 to 46	51		(6)		45		51		(6)		45
		$	1,348	$	(557)	791		$	1,353	$	(530)	823
Indefinite-lived intangible assets:
Trade names and trademarks						231						233
Total						$	1,022					$	1,056

The amortization expense associated with definite-lived intangible assets is as follows:

	Three Months Ended March 31,
	2022		2021
Amortization expense	$	31	$	32

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

	2022		2023		2024		2025		2026		2027 and thereafter		Total
Expected amortization expense	$	92	$	121	$	114	$	114	$	114	$	236	$	791

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

6. Investment in Nonconsolidated Affiliates

No significant changes occurred in the Company’s ownership interest in nonconsolidated affiliates since December 31, 2021.

The carrying amount of the Company’s investments in its nonconsolidated affiliates accounted for under the equity method exceeded its share of the underlying net assets by $207 million and $258 million at March 31, 2022 and December 31, 2021.

The following table is a summary of transactions with the Company’s nonconsolidated affiliates:

	Three Months Ended March 31,
	2022		2021
Net sales	$	16	$	20
Purchases	$	107	$	115
Royalty and other income (expense)	$	2	$	4

The following table is a summary of amounts due to and from the Company’s nonconsolidated affiliates:

	March 31, 2022		December 31, 2021
Receivables	$	9	$	10
Payables and accruals	$	82	$	69

7. Financial Instruments and Fair Value

The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity price risk associated with share-based compensation awards, and changes in interest rates, which may result in cash flow risks. For exposures not offset within its operations, the Company may enter into various derivative or other financial instrument transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. In certain cases, the Company may or may not designate certain derivative instruments as hedges for accounting 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 Exchange Rate Risk

The Company manufactures and sells its products globally. 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 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.

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 concentration of credit risk related to derivative contracts at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Equity Price Risk

The Company has certain cash-settled share-based incentive compensation awards that are dependent upon the Company’s stock price. The related cash payouts increase as the stock price increases and decrease as the stock price decreases. The Company has entered into certain financial instruments that move in the opposite direction of the cash settlement of these awards. Based on the Company’s current position, these financial instruments mitigate the market risk related to the final settlement of the cash-settled share-based incentive compensation awards. Effective in the third quarter of 2021, investment options based on the Company’s stock price no longer exist under the incentive deferral plan and, at both March 31, 2022 and December 31, 2021, there are no deferred compensation balances correlated to the Company’s stock price. Refer to “Other Financial Instruments” section below for additional details on these liabilities and the related financial instruments used to reduce the Company’s equity price risk.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Asset and Liability Instruments

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

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 and intercompany loans. The Company calculates the fair value of its foreign currency contracts using currency forward rates (level 2), to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. Derivative gains and losses associated with these foreign currency forward contracts are recognized in “Cost of sales (exclusive of depreciation and amortization)” in the condensed consolidated statements of income (loss). The fair value of these derivative instruments at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

The following table summarizes by position the notional amounts for foreign currency forward contracts at March 31, 2022, all of which mature in the next twelve months:

	Notional Amount
Long positions	$	415
Short positions	$	411

Other Financial Instruments

Cash-Settled Share and Index Swap Transactions

The Company has certain employee compensation arrangements, including cash-settled share-based units granted under its long-term incentive plan, that are valued based on the Company’s stock price. The share equivalents outstanding related to cash-settled share-based awards are as follows:

	March 31, 2022	December 31, 2021
Restricted Stock Units (RSUs)	1,224,513	1,451,422
Performance Share Units (PSUs)	4,376,689	2,951,316
	5,601,202	4,402,738

The Company has entered into financial instruments to mitigate the risk associated with both the vested and unvested portions of its cash-settled share-based incentive compensation awards. The number of common share equivalents under these agreements at both March 31, 2022 and December 31, 2021 was 3,100,000.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

These financial instruments primarily use the Company’s stock price as an observable input (level 2) in determining fair value. The estimated fair value of these financial instruments is as follows:

	Balance sheet classification	March 31, 2022		December 31, 2021
Other financial instruments in asset positions(a)	Prepayments and other current assets	$	59	$	35

(a) There is a cash premium of $3 million at March 31, 2022 associated with one of these financial instruments, which is included in “Prepayments and other current assets” in the condensed consolidated balance sheets, and none at December 31, 2021.

The gains and losses associated with these other financial instruments are recognized in “Selling, general, and administrative” in the condensed consolidated statements of income (loss).

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. Commodity rate price forward contracts are executed to offset a portion of the exposure to potential change in prices for raw materials. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts.

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 reclassifying adjustments into “Cost of sales (exclusive of depreciation and amortization)” 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 and $34 million at March 31, 2022 and December 31, 2021. Substantially all of the commodity price hedge contracts mature within one year.

The Company calculates the fair value of its commodity contracts using commodity forward rates (level 2), to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. The fair value of these derivative instruments at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

Net Investment Hedge — Foreign Currency Borrowings

On March 17, 2021, all of the outstanding foreign currency borrowings designated as net investment hedge were discharged, as a result, there were no outstanding foreign currency denominated borrowings designated as a net investment hedge at December 31, 2021. The Company’s debt instruments are discussed further in Note 8, “Debt and Other Financing Arrangements”.

The following table represents the amount of gain (loss) recognized in accumulated other comprehensive income (loss) before any reclassifications into net income (loss) for derivative and non-derivative instruments designated as hedges:

	Three Months Ended March 31,
	2022		2021
Commodity price hedge contracts designated as cash flow hedges	$	6	$	2
Foreign currency borrowings designated as a net investment hedge	$	—	$	11

The Company estimates approximately $6 million included in accumulated OCI or OCL at March 31, 2022 will be reclassified into net income (loss) within the following twelve months. Refer to Note 13, “Shareholders’ Equity” for further information.

Assets and Liabilities Measured at Fair Value on a Nonrecurring 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. There were no fair value estimates on a nonrecurring basis during the three months ended March 31, 2022 and 2021.

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Financial Instruments Not Carried at Fair Value

The estimated fair value of the Company’s outstanding debt is as follows:

		March 31, 2022				December 31, 2021
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	4,956	$	5,018	$	4,998	$	5,060

The fair value of the Company’s public senior notes and private borrowings under its New Credit Facility, as subsequently defined in Note 8, “Debt and Other Financing Arrangements”, is based on observable inputs, and any borrowings on the revolving credit facility approximate fair value. The Company also had $61 million and $77 million at March 31, 2022 and December 31, 2021 in other debt whose carrying value approximates fair value, which consists primarily of foreign debt with maturities of one year or less.

8. Debt and Other Financing Arrangements

Long-Term Debt

A summary of the Company’s long-term debt obligations is set forth in the following table:

	March 31, 2022				December 31, 2021
	Principal		Carrying Amount (a)		Principal		Carrying Amount (a)
Credit Facilities
Revolver Borrowings
Due 2023	$	—	$	—	$	—	$	—
Term Loans
LIBOR plus 2.00% Term Loan A due 2019 through 2023(b)	1,360		1,355		1,403		1,396
LIBOR plus 3.00% Term Loan B due 2019 through 2025	1,645		1,604		1,649		1,606
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		223		225		223
$500 million of 5.000% Senior Notes due 2026	500		496		500		496
Senior Secured Notes
$500 million of 7.875% Senior Secured Notes due 2029	500		490		500		490
$800 million of 5.125% Senior Secured Notes due 2029	800		788		800		787
Other debt, primarily foreign instruments	27		27		26		26
			4,983				5,024
Less - maturities classified as current			7				6
Total long-term debt			$	4,976			$	5,018

(a)Carrying amount is net of unamortized debt issuance costs and debt discounts of $74 million and $79 million at March 31, 2022 and December 31, 2021.

(b)The interest rate on Term Loan A at December 31, 2021 was LIBOR plus 1.75%.

The Company has a senior credit facility under the credit agreement dated October 1, 2018 (as amended, restated, supplemented or otherwise modified, the “New Credit Facility”) that 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”). 

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Short-Term Debt

The Company’s short-term debt consists of the following:

	March 31, 2022		December 31, 2021
Maturities classified as current	$	7	$	6
Short-term borrowings(a)	34		51
Total short-term debt	$	41	$	57

(a)Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements.

Credit Facilities

Financing Arrangements

The table below shows the Company’s borrowing capacity on committed credit facilities at March 31, 2022 (in billions):

	March 31, 2022
	Term	Available(b)
Tenneco Inc. revolving credit facility(a)	2023	$	1.4
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2022 - 2028	—
		$	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)At March 31, 2022, the Company had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under the revolving credit facility. The Company also had $68 million of outstanding letters of credit under uncommitted facilities at March 31, 2022.

At March 31, 2022, the Company had liquidity of $2.1 billion comprised of $641 million of cash and $1.4 billion undrawn on its revolving credit facility. The Company had no outstanding borrowings on its revolving credit facility at March 31, 2022.

During the fourth quarter of 2021, the Company issued a $42 million letter of credit under its revolving credit facility and such letter of credit is included in the $69 million of total outstanding letters of credit at March 31, 2022, which reduces the available borrowings under its revolving credit facility. The letter of credit supports a 1.7 billion Mexican peso (approximately $85 million using exchange rates at March 31, 2022) surety bond issued to the Mexican tax authority. The surety bond is required in order for the Company to enter into the judicial process to appeal a tax assessment and covers the amount of the assessment plus interest. The Company does not believe it is probable it will have to pay the assessment or related interest. The Company also received a second assessment during the fourth quarter of 2021 from the Mexican tax authority of 0.6 billion Mexican peso (approximately $29 million using the exchange rate at March 31, 2022) for a separate matter, which has not required the issuance of a surety bond at this time. The Company does not believe it is probable it will have to pay this second assessment or related interest.

At March 31, 2022 and December 31, 2021, the unamortized debt issuance costs related to the revolver of $9 million and $11 million are included in “Other assets” in the condensed consolidated balance sheets.

Credit Facility

New Credit Facility — Interest Rates

At March 31, 2022, the interest rate on borrowings under the revolving credit facility and the Term Loan A facility was LIBOR plus 2.00% and will remain at LIBOR plus 2.00% for each relevant period for which the Company’s consolidated net leverage ratio (as defined in the New Credit Facility) is less than 4.50 to 1 and greater than or equal to 3.00 to 1. The interest rate on borrowings under the revolving credit facility and the Term Loan A facility are subject to step downs in accordance with the credit agreement.

The New Credit Facility prescribes for an alternative method of determining interest rates in the event LIBOR is not available.

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TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

New Credit Facility — Other Terms and Conditions

The third amendment dated May 5, 2020 (“Third Amendment”) of the Company’s New Credit Facility provided relief from the financial maintenance covenants for the revolving credit facility and Term Loan A facility subject to the non-occurrence of certain covenant reset triggers as more fully described in its 2021 Form 10-K. There has been no covenant reset trigger, or covenant reset certificate delivered. Accordingly, the financial ratio required at March 31, 2022 under the New Credit Facility was changed to a consolidated net leverage ratio from a senior secured net leverage ratio at December 31, 2021.

Further information on interest rates, fees, and other terms and conditions of the New Credit Facility is included in the Company’s 2021 Form 10-K.

At March 31, 2022, the Company was in compliance with all the financial covenants of the New Credit Facility.

Senior Notes

Further information on the terms and conditions of the Senior Unsecured Notes and Senior Secured Notes is included in the Company’s 2021 Form 10-K.

At March 31, 2022, the Company was in compliance with all of its financial covenants under the indentures governing the Senior Unsecured Notes and Senior Secured Notes.

On March 3, 2021, the Company provided notice of its intention to redeem all of the outstanding 5.000% euro denominated senior secured notes due July 15, 2024 and all of the outstanding floating rate euro denominated senior secured notes due April 15, 2024 (collectively, the “2024 Secured Notes”). On March 17, 2021, the Company using the net proceeds of the offering of 5.125% Senior Secured Notes due April 15, 2029, together with cash on hand, satisfied and discharged each of the indentures governing the 2024 Secured Notes in accordance with their terms. As a result, the Company recorded a gain on extinguishment of debt of $8 million for the three months ended March 31, 2021.

Other Debt

Other debt consists primarily of subsidiary debt and finance lease obligations.

Factoring Arrangements

At March 31, 2022 and December 31, 2021, the amount of accounts receivable outstanding and derecognized for factoring arrangements was $1.1 billion and $1.0 billion, of which $0.6 billion and $0.5 billion related to accounts receivable where the Company has continuing involvement. In addition, the deferred purchase price receivable was $68 million and $51 million at March 31, 2022 and December 31, 2021.

For the three months ended March 31, 2022 and 2021, proceeds from the factoring of accounts receivable qualifying as sales were $1.5 billion and $1.3 billion, of which $1.2 billion and $1.1 billion were received on accounts receivable where the Company had continuing involvement.

For the three months ended March 31, 2022 and 2021, the Company’s financing charges associated with the factoring of receivables, which are included in “Interest expense” in the condensed consolidated statements of income (loss), were $6 million and $4 million.

If the Company were not able to factor receivables under 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.

22

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

9. 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 costs (credits) are as follows:

	Three Months Ended March 31,
	Pension Benefits								Other Postretirement Benefits
	2022				2021
	U.S.		Non-U.S.		U.S.		Non-U.S.		2022		2021
Service cost	$	—	$	7	$	—	$	7	$	—	$	—
Interest cost	9		5		8		4		1		1
Expected return on plan assets	(14)		(4)		(16)		(4)		—		—
Net amortization:
Actuarial loss	2		1		3		2		—		1
Prior service cost (credit)	—		—		—		—		(3)		(2)
Net pension and postretirement costs (credits)	$	(3)	$	9	$	(5)	$	9	$	(2)	$	—

10. 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 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 considers both positive and negative evidence and 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, reversals of existing taxable temporary differences, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified.

For the three months ended March 31, 2022, the Company recorded income tax expense of $30 million on income from continuing operations before income taxes of $11 million. This compares to an income tax expense of $47 million on income from continuing operations before income taxes of $134 million in the three months ended March 31, 2021.

Income tax expense for the three months ended March 31, 2022 differs from the U.S. statutory rate due primarily to pre-tax income that is taxed at rates higher than the U.S. statutory rate, pre-tax losses for which no tax benefit is recognized, and a $7 million non-cash benefit related to the release of a valuation allowance.

Income tax expense for the three months ended March 31, 2021 differs from the U.S. statutory rate due primarily to pre-tax income that is taxed at rates higher than the U.S. statutory rate and pre-tax losses for which no tax benefit is recognized.

The Company believes it is reasonably possible up to $43 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.

23

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

11. 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 that 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 actively seeking to resolve these actual and potential statutory, regulatory, and contractual obligations.

The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. At March 31, 2022, 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’s estimated share of environmental remediation costs for all these sites is recognized in the condensed consolidated balance sheets as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities	$	8	$	8
Deferred credits and other liabilities	23		23
	$	31	$	31

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.

At March 31, 2022 and December 31, 2021, the Company has indemnifications in place on certain of these environmental reserves, which is not considered material to the condensed consolidated financial statements.

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 approximately 500 cases in the United States and less than 50 in Europe.

24

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

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. 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 annual 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, advertising 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, the Company does not expect the legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its annual consolidated financial position, results of operations or liquidity.

Asset Retirement Obligations

The Company’s primary asset retirement obligation (“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’s ARO liabilities in the condensed consolidated balance sheets are as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities(a)	$	12	$	10
Deferred credits and other liabilities	4		4
	$	16	$	14

(a) Includes liabilities held for sale for $8 million and $9 million at March 31, 2022 and December 31, 2021. Refer to Note 2, “Basis of Presentation”, for additional information on assets and liabilities held for sale.

25

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

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.

The following represents the changes in the Company’s warranty accrual accounts:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	69	$	62
Accruals and revisions to estimates	14		14
Settlements	(12)		(8)
Foreign currency	—		(1)
Balance at end of period	$	71	$	67

12. Share-Based Compensation

Share-based compensation expense is included in “Selling, general, and administrative” in the condensed consolidated statements of income (loss). Total share-based compensation expense is as follows:

	Three Months Ended March 31,
	2022		2021
Cash-settled share-based compensation expense	$	20	$	4
Share-settled share-based compensation expense	6		5
	$	26	$	9

Cash-Settled Awards

The Company grants restricted stock units (“RSUs”) and performance share units (“PSUs”) 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 the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200%, based on performance target achievement.

The following table reflects the number of cash-settled share-based units outstanding:

	March 31, 2022	December 31, 2021
RSUs	1,224,513	1,451,422
PSUs	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the cash-settled share-based liabilities:

	March 31, 2022		December 31, 2021
Cash-settled share-based RSU liability	$	9	$	6
Cash-settled share-based PSU liability	23		10
	$	32	$	16

26

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

At March 31, 2022, $66 million in unrecognized costs on the cash-settled awards is expected to be recognized over a weighted average period of approximately two years.

Share-Settled Awards

The Company grants RSUs and PSUs to certain key employees that are payable in common stock. These awards are settled in shares upon vesting, and valued at the grant date fair value with compensation expense being recognized in proportion to the completed requisite period up until the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes.

The following table reflects the changes in share-settled RSUs and share-settled PSUs for the three months ended March 31, 2022:

	Share-Settled RSUs			Share-Settled PSUs
	Units	Weighted Avg. Grant Date Fair Value		Units	Weighted Avg. Grant Date Fair Value
Nonvested balance at beginning of period	3,117,058	$	13.94	328,296	$	24.72
Granted	2,501,847	10.52		—	—
Vested	(1,184,081)	18.46		(276,316)	24.72
Forfeited	(52,428)	15.07		(51,980)	24.72
Nonvested balance at end of period	4,382,396	$	10.41	—	$	—

At March 31, 2022, $39 million in unrecognized costs on the share-settled awards is expected to be recognized over a weighted average period of approximately two years.

13. Shareholders’ Equity

Common Stock

Common Stock Outstanding

The Company has authorized 175,000,000 shares ($0.01 par value) of Class A Voting Common Stock (“Class A Common Stock”) at March 31, 2022 and December 31, 2021. The Company has authorized 25,000,000 shares ($0.01 par value) of Class B Non-Voting Common Stock (“Class B Common Stock”) at March 31, 2022 and December 31, 2021.

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

	Class A Common Stock		Class B Common Stock
	Three Months Ended March 31,		Three Months Ended March 31,
	2022	2021	2022	2021
Shares issued at beginning of period	96,713,188	75,714,163	—	20,308,454
Issued pursuant to benefit plans	1,611,497	786,575	—	—
Withheld for taxes pursuant to benefit plans	(357,772)	(247,508)	—	—
Class B common stock converted to Class A common stock	—	17,232,791	—	(17,232,791)
Shares issued at end of period	97,966,913	93,486,021	—	3,075,663
Treasury stock	14,592,888	14,592,888	—	—
Total shares outstanding	83,374,025	78,893,133	—	3,075,663

27

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Class B Common Stock Conversion

During the first quarter of 2021, Icahn Enterprises L.P. (“IEP”) and its affiliates converted 17,232,791 shares of the Company’s Class B Common Stock into 17,232,791 shares of Class A Common Stock. During the second quarter of 2021, IEP and its affiliates converted the remaining 3,075,663 shares of the Company’s Class B Common Stock outstanding at March 31, 2021 into 3,075,663 shares of Class A Common Stock.

Preferred Stock

The Company had 50,000,000 shares of preferred stock ($0.01 par value) authorized at March 31, 2022 and December 31, 2021. 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:

	Three Months Ended March 31,
	2022		2021
Foreign currency translation adjustments:
Balance at beginning of period	$	(471)	$	(395)
Other comprehensive income (loss) before reclassifications adjustments	—		(46)
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		—
Balance at end of period	(471)		(441)
Defined benefit plans:
Balance at beginning of period	(126)		(353)
Other comprehensive income (loss) before reclassifications	—		4
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		(1)
Balance at end of period	(126)		(350)
Cash flow hedges:
Balance at beginning of period	2		4
Other comprehensive income (loss) before reclassifications	6		2
Reclassification from other comprehensive income (loss)	(2)		(4)
Income tax benefit (provision)	—		—
Balance at end of period	6		2
Accumulated other comprehensive loss at end of period	$	(591)	$	(789)
Other comprehensive income (loss) attributable to noncontrolling interests, net of tax	$	(3)	$	(6)

14. Segment Information

Tenneco consists of four operating segments: Motorparts, Performance Solutions, Clean Air, and Powertrain. 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 (“CODM”) in allocating resources and assessing performance.

28

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with U.S. 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 U.S. GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

Segment results are as follows:

	Reportable Segments
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total		Reclass & Elims		Total
Three Months Ended March 31, 2022
Revenues from external customers	$	722	$	793	$	2,103	$	1,031	$	4,649	$	—	$	4,649
Intersegment revenues	$	11	$	22	$	5	$	46	$	84	$	(84)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	4	$	(1)	$	—	$	9	$	12	$	—	$	12
Three Months Ended March 31, 2021
Revenues from external customers	$	719	$	787	$	2,124	$	1,101	$	4,731	$	—	$	4,731
Intersegment revenues	$	9	$	26	$	6	$	47	$	88	$	(88)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	3	$	1	$	—	$	18	$	22	$	—	$	22

Segment EBITDA including noncontrolling interests and the reconciliation to earnings (loss) before interest expense, income taxes, and noncontrolling interests are as follows:

	Three Months Ended March 31,
	2022		2021
EBITDA including noncontrolling interests by segment:
Motorparts	$	86	$	102
Performance Solutions	15		43
Clean Air	106		149
Powertrain	66		115
Total reportable segments	273		409
Corporate	(50)		(50)
Depreciation and amortization	(146)		(155)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204
Interest expense	(66)		(70)
Income tax (expense) benefit	(30)		(47)
Net income (loss)	$	(19)	$	87

Disaggregated Revenue

Original Equipment

Value-Added Sales

OE revenue is generated from providing OE manufacturers and servicers with products for automotive, commercial truck, off-highway, and industrial applications. Supply relationships typically extend over the life of the related vehicle, subject to interim design and technical specification revisions, and do not require the customer to purchase a minimum quantity.

Substrate/Passthrough Sales

Generally, in connection with the sale of exhaust systems to certain OE manufacturers, the Company purchases catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of its customers which are used in the assembled system. These substrates are included in inventory and are “passed through” to the customer at cost, plus a small margin. Since the Company takes title to the substrate inventory and has responsibility for both the delivery and quality of the finished product including the substrates, the revenues and related expenses are recorded at gross amounts.

29

TENNECO INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

(Unaudited)

Aftermarket

Aftermarket revenue is generated from providing products for the global vehicle aftermarket to a wide range of warehouse distributors, retail parts stores, and mass merchants that distribute these products to customers ranging from professional service providers to “do-it-yourself” consumers.

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	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
OE - Substrate	$	—	$	—	$	1,090	$	—	$	1,090
OE - Value add	—		771		1,013		1,031		2,815
Aftermarket	722		22		—		—		744
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
OE - Substrate	$	—	$	—	$	1,088	$	—	$	1,088
OE - Value add	—		768		1,036		1,101		2,905
Aftermarket	719		19		—		—		738
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

	Reportable Segments
By Geography	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
North America	$	444	$	250	$	867	$	334	$	1,895
Europe, Middle East, Africa and South America	223		333		662		523		1,741
Asia Pacific	55		210		574		174		1,013
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
North America	$	454	$	240	$	851	$	328	$	1,873
Europe, Middle East, Africa and South America	212		355		682		563		1,812
Asia Pacific	53		192		591		210		1,046
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

15. Related Party Transactions

IEP no longer owns 5% or more of the Company’s Class A Common Stock. During the second quarter of 2021, IEP and its subsidiaries, including Icahn Automotive Group LLC, were no longer considered related parties of the Company. The Company’s net sales with Icahn Automotive Group LLC, which represent net sales with IEH Auto Parts LLC and Pep Boys—Manny, Moe & Jack, were $31 million for the three months ended March 31, 2021. The Company also had royalty and other income (expense) with Icahn Automotive Group LLC and PSC Metals of $2 million for the three months ended March 31, 2021.

30

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, 2022 financial results are to March 31, 2021 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, 2021, which was filed with the Securities and Exchange Commission (“SEC”) on February 24, 2022 (the “2021 Form 10-K”).

EXECUTIVE OVERVIEW

Our Business

We design, manufacture, market, and distribute products and services for light vehicle, commercial truck, off-highway, industrial, motorsport, and aftermarket customers. Our business consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain and serves both original equipment (“OE”) manufacturers and the repair and replacement markets worldwide. We supply OE parts to vehicle manufacturers for use in light vehicles, commercial vehicles, and other mobility markets; and the global aftermarket with replacement parts that are sold to wholesalers, retailers, and installers, as well as original equipment service (“OES”) parts to OE customers to support their service channels. We serve our customers through our brands, including Monroe®, Champion®, Öhlins®, MOOG®, Walker®, Fel-Pro®, Wagner®, Ferodo®, Rancho®, Thrush®, National®, and Sealed Power®; and others.

Factors that continue to be critical to our success include winning new business awards, managing our overall global manufacturing and fulfillment footprint to ensure proper placement and workforce levels in line with business needs, maintaining competitive wages and benefits, maximizing efficiencies in manufacturing processes, positioning the business to adapt to changes in vehicle electrification, 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, social or environmental 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 that are critical to our success include adjusting to economic challenges such as managing the availability of materials or 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.

Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain:

•The Motorparts segment designs, manufactures, sources, markets, and distributes a broad portfolio of brand-name products in the global vehicle aftermarket while also servicing the OES market. Motorparts products are organized into categories, including shocks and struts, steering and suspension, braking, sealing, emissions control, engine, and maintenance;

•The Performance Solutions segment designs, manufactures, markets, and distributes a variety of products and systems designed to optimize the ride experience to a global OE customer base, including noise, vibration, and harshness performance materials, advanced suspension technologies, ride control, braking, and system protection. Performance Solutions is agnostic to powertrain technologies;

•The Clean Air segment designs, manufactures, and distributes a variety of products and systems designed to reduce pollution and optimize engine performance, acoustic tuning, and weight on a vehicle for light vehicle, commercial truck, and off-highway OE customers; and

•The Powertrain segment designs, manufactures, and distributes a variety of OE powertrain products for light vehicle, commercial truck, off-highway, and industrial applications to OE customers for use in new vehicle production and OES parts to support their service and distribution channels.

Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as “Corporate.” See Note 14, “Segment Information”, in our condensed consolidated financial statements located in Part I, Item 1 of this Form 10-Q for additional information.

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Proposed Merger

On February 22, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Pegasus Holdings III, LLC (“Parent”) and Pegasus Merger Co., a wholly owned subsidiary of Parent (“Merger Sub” and together with Parent, “Buyer”). Pursuant to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Tenneco (the “Merger”) with Tenneco continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of certain funds managed by affiliates of Apollo Global Management, Inc. At the effective time of the Merger (the “Effective Time”), each share of the Company’s Class A voting common stock that is issued and outstanding immediately prior to the Effective Time (other than shares to be cancelled pursuant to the Merger Agreement or shares of Class A voting common stock held by holders who have made a valid demand for appraisal in accordance with Section 262 of the Delaware General Corporation Law), will be automatically converted into the right to receive $20.00 in cash, without interest.

At the Effective Time, subject to the terms and conditions set forth in the Merger Agreement, each RSU and each PSU of Tenneco that is outstanding immediately prior to the Effective Time will automatically be cancelled and converted into the holder’s right to receive a cash amount (subject to any applicable withholding taxes) calculated based on the per-share Merger consideration of $20.00.

The closing of the Merger is subject to various conditions, including (i) the adoption of the Merger Agreement by holders of a majority of the issued and outstanding shares of the Company’s common stock; (ii) the absence of any order, injunction or other legal or regulatory restraint making illegal, enjoining or otherwise prohibiting the closing of the Merger; (iii) the receipt of clearances and/or approvals under applicable foreign competition and/or other laws; (iv) the accuracy of the representations and warranties contained in the Merger Agreement, subject to customary materiality qualifications; and (v) compliance with the covenants and agreements contained in the Merger Agreement as of the closing of the Merger. In addition, the obligation of Parent and Merger Sub to consummate the Merger is subject to the absence, since the date of the Merger Agreement, of a Company Material Adverse Effect (as defined in the Merger Agreement under clause (b) of such definition). The closing of the Merger is not subject to a financing condition, and Parent has obtained equity and debt financing commitments for the purpose of financing the Merger and the other transactions contemplated by the Merger Agreement.

The Company’s Board of Directors and the sole member or board of directors, as applicable, of Parent and Merger Sub have each unanimously approved the Merger and the Merger Agreement. If approved by the Company’s stockholders, the Merger is expected to close in the second half of 2022. Until the closing, the Company will continue to operate as an independent company.

The Company has incurred and will incur certain significant costs relating to the Merger, such as legal, accounting, financial advisory, printing and other professional services fees, as well as other customary payments. In the event that the merger is terminated, the Company may also be required to pay a cash termination fee to Parent of $54 million, as required under the Merger Agreement under certain circumstances. If the Merger Agreement is terminated under certain other circumstances, including if the Merger Agreement is terminated following December 31, 2022 and at the time of such termination the only conditions to the closing of the Merger that have not been waived or satisfied (other than conditions that are, by their terms, satisfied at such closing) are the receipt of approvals, consents and consultations pursuant to the competition laws of Russia or Ukraine, Parent will be required to pay the Company a cash termination fee of $108 million.

Financial Results for the Three Months Ended March 31, 2022

Consolidated revenues were $4,649 million, a decrease of $82 million, or 2%, for the three months ended March 31, 2022. The primary driver of the decrease is lower sales volume of $166 million and the unfavorable effects of foreign currency exchange of $113 million. These were partially offset by the net favorable effects of other, which includes recoveries of commodity price increases, of $197 million.

Cost of sales were $4,108 million, an increase of $47 million, or 1%, for the three months ended March 31, 2022. The primary driver of the increase is unfavorable effects of materials sourcing of $230 million and net unfavorable effects of other costs of $6 million. In addition, the Motorparts segment recognized a non-cash charge of $4 million related to the write-down of inventory in connection with its initiative to rationalize its supply chain and distribution network. These were partially offset by favorable effects of foreign currency exchange of $102 million and lower sales volume of $91 million.

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Results for the three months ended March 31, 2022 was a net loss of $19 million as compared to net income of $87 million for the three months ended March 31, 2021. The change from net income to a net loss was primarily driven by:

•lower results from operations attributable to lower sales volume and unfavorable mix, as well as the effects of unfavorable material sourcing;

•a decrease in equity in earnings (losses) of nonconsolidated affiliates, net of tax of $10 million, primarily attributable to the decrease in equity in earnings of nonconsolidated affiliates located in Turkey; and

•a non-cash gain on extinguishment of debt of $8 million was recognized for the three months ended March 31, 2021 related to the discharge of the 4.875% euro floating rate notes due 2024 and 5.000% euro fixed rate notes due 2024.

These unfavorable effects were partially offset by:

•a decrease in depreciation and amortization of $9 million, primarily attributable to the effects of reductions in capital expenditures;

•a decrease in restructuring charges, net and asset impairments of $12 million primarily due to a decrease of $16 million related to cash severance costs expected to be paid as part of global headcount and cost reduction actions across all segments and regions, including plant relocations and closures; and

•a decrease in income tax expense to $30 million in the three months ended March 31, 2022 from $47 million in the three months ended March 31, 2021. This is primarily the effects of pre-tax income that is taxed at rates higher than the U.S. statutory rate and pre-tax losses for which no tax benefit is recognized, as well as a $7 million non-cash benefit related to the release of a valuation allowance during the three months ended March 31, 2022.

Recent Trends and Market Conditions

Recent events affecting our business include the COVID-19 global pandemic (including the recent implementation of government lockdowns in China), the semiconductor shortage, the Russia and Ukraine conflict, other supply chain challenges, and the effects of inflation and rising interest rates on the overall macroeconomic environment. We do not have significant operations in Russia or Ukraine compared to our global operations, but our operations in these regions have been disrupted due to the conflict. Sales from our Russian subsidiaries and sales into Russia and Ukraine from our global subsidiaries were less than 1% of our consolidated “Net sales and operating revenue” for the year ended December 31, 2021.

We use various raw materials, including steel and other metals. We obtain steel from a number of sources pursuant to various contractual and other arrangements. Due to recent supply chain constraints within the automotive industry, which may be exacerbated by the conflict in Ukraine, we may encounter difficulty in obtaining steel and other commodities at current contractual prices and as a result may incur higher costs to procure these items. In addition, the automotive industry continues to face a shortage of semiconductors, which has led to production disruptions globally and created operating challenges for the automotive supplier base. We expect industry production to remain volatile for the foreseeable future and, sustained unfavorable commodity prices, volatility in commodity prices or changes in markets for a given commodity could negatively affect our operations.

We are experiencing other supply chain challenges, along with the effects of inflation on commodities, other purchases, and labor. Further, unfavorable conditions such as a general slowdown of the global or U.S. economy, uncertainty and volatility in the financial markets, or additional inflationary factors and rising interest rates could result in higher operating expenses and project costs for us.

Additionally, the Russia and Ukraine conflict and the sanctions imposed in response to this conflict have increased global economic and political uncertainty. While neither Russia nor Ukraine constitutes a material portion of our business, a significant escalation or expansion of economic disruption or the conflict’s current scope could disrupt our supply chain, broaden inflationary costs, and have a material adverse effect on our results of operations.

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 four primary factors: the number of vehicles in operation (VIO); the average age of vehicles; vehicle usage trends (primarily miles driven); and component failure and wear rates.

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The COVID-19 global pandemic has negatively affected the global economy, disrupted global supply chains, and created extreme volatility and disruptions to capital and credit markets in the global financial markets. The extent of the effects of the COVID-19 pandemic will depend on a number of factors, including the duration and severity of the pandemic or subsequent resurgence of the outbreaks, the effects and extent of COVID-19 variants, related government responses, the rate of economic recovery from the pandemic, vaccination rates, and the effectiveness of available vaccines. There continues to be many uncertainties that remain related to COVID-19 that could negatively affect our results of operations, financial position, and cash flows.

The uncertain nature, magnitude, and duration of hostilities stemming from Russia’s recent military invasion of Ukraine, including the potential effects of sanctions limitations, retaliatory cyber-attacks, and potential shipping delays, have contributed to increased market volatility and economic uncertainty. The effect of the invasion of Ukraine, including economic sanctions or additional war or military conflict, as well as potential responses by Russia, is currently unknown and could adversely affect the Company’s business, supply chain, suppliers, customers and potential consumer demand for our products.

Global vehicle production levels

Global light vehicle production levels (According to IHS Markit, April, 2022)

For the three months ended March 31, 2022, global light vehicle production was down 4% overall and down across almost all major markets in which we operate compared to the same period in the prior year, primarily due to the semiconductor supply shortage and other supply chain challenges during the three months ended March 31, 2022. Light vehicle production levels in North America were down 2%, Europe was down 18%, India was down 2%, and South America production was down 13%, while production levels in China were up 6%.

Global commercial truck production levels (According to IHS Markit, February, 2022)

For the three months ended March 31, 2022, global commercial truck production decreased 27% as compared to the same period in the prior year. Production declined by 53% in China, 6% in Europe, and 2% in India, while production levels were up 21% in North America and 17% in Brazil. The significant production decline in China is primarily due to a challenging growth comparison, the ongoing semiconductor supply shortage and effects of COVID-19.

Fuel efficiency, powertrain evolution, and vehicle electrification

Various jurisdictions around the world have announced plans to limit the production of new diesel and gasoline powered vehicles in the future. Major vehicle manufacturers have announced their intention to reduce and phase out production of diesel and gasoline powered vehicles during the next two decades. However, for the foreseeable future, it is expected that the majority of the powertrains for light and commercial vehicles will be gasoline and diesel engines (including hybrids, which combine a battery electric drive with a combustion engine). While we see similar electrification trends for light vehicle and commercial vehicle, we expect light vehicles will experience those trends in advance of commercial vehicles. We expect to monitor those trends and adopt our business strategy accordingly.

Business Strategy

We are a leading diversified, global supplier of innovative products and services to light vehicle, commercial truck, off-highway, industrial, and aftermarket customers. Our strategy focuses on addressing the evolving needs of our OE and aftermarket customers around the world to drive growth. As discussed in more detail in our 2021 Form 10-K, the key components of our business strategy are as follows:

•Continue to optimize operational performance by aggressively pursuing cost competitiveness in all business segments and continuing to drive cash flow generation and meet capital allocation objectives;

•Pursue focused transactional opportunities, consistent with our capital allocation priorities, product line enhancements, technological advancements, geographic positioning, penetration of emerging markets, and market share growth; and

•Adapt cost structure to economic realities.

Original Equipment Specific Strategies

The converging forces of connectivity, autonomy, electrification, and shared mobility are spawning a new age of automotive autonomy and a unique opportunity to position our business for significant growth and profitability. We strive to strengthen our global position by designing, manufacturing, delivering, and marketing technologically innovative products and solutions for OE manufacturers. As discussed in more detail in our 2021 Form 10-K, the key components of our OE strategy are as follows:

•Capitalize on our breadth of technology, differentiated products, and global reach to support and strengthen relationships with existing and emerging OE customers across the world;

•Maintain technological leadership to drive further growth from secular market trends (our performance solutions division will leverage its innovative technology, NVH performance materials, differentiated products, and advanced system capabilities to provide innovative solutions; as well as, accelerate the development of advanced technology suspension solutions, while also fast-tracking time to market);

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•Invest in applications that benefit from global light vehicle battery electric vehicle (BEV) adoption (we have prioritized investments in light vehicle product lines and applications that have content growth opportunities in light vehicle BEV and are agnostic to an anticipated increase in adoption rates); and

•Penetrate adjacent market segments (aggressively leverage our technology and engineering leadership in powertrain, clean air, performance solutions and aftermarket into adjacent sales opportunities for commercial trucks, buses, agricultural equipment, construction machinery, and other vehicles in other regions around the world).

Aftermarket Specific Strategies

Our aftermarket business strategy incorporates a go-to-market model that we believe differentiates us from our competitors and creates structural support for sustained revenue growth. The model is designed to drive revenue growth by capitalizing on three of our key competitive strengths: a leading portfolio of products and brands; extensive global manufacturing, distribution and service capabilities; and market intelligence gathered from our distributors, installers, and consumers.

We expect this distinctive go-to-market model will result in a sustainable competitive advantage, particularly as the industry trends previously mentioned disrupt the traditional aftermarket landscape and business practices. We expect the demand for replacement parts to increase as a result of 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 localized strategies to address the key success factors of our customers. As discussed in more detail in our 2021 Form 10-K, the key components of our aftermarket strategy are as follows:

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

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

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

Critical Accounting Estimates

Refer to our 2021 Form 10-K.

Non-GAAP Measures

We use EBITDA including noncontrolling interests as the key performance measure of segment profitability and use the 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. EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with U.S. 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 U.S. GAAP. 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, 2022 compared to the Three Months Ended March 31, 2021

Consolidated Results of Operations

The following table presents our condensed consolidated results of operations.

	Three Months Ended March 31,				Favorable (Unfavorable)
	2022		2021		$ Change		% Change (1)
	(millions, except percent and per share amounts)
Revenues
Net sales and operating revenues	$	4,649	$	4,731	$	(82)	(2)	%
Costs and expenses
Cost of sales (exclusive of depreciation and amortization)	4,108		4,061		(47)		(1)	%
Selling, general, and administrative	252		255		3		1	%
Depreciation and amortization	146		155		9		6	%
Engineering, research, and development	75		72		(3)		(4)	%
Restructuring charges, net and asset impairments	13		25		12		48	%
	4,594		4,568		(26)		(1)	%
Other income (expense)
Non-service pension and postretirement benefit (costs) credits	3		3		—		—	%
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	12		22		(10)		(45)	%
Gain (loss) on extinguishment of debt	—		8		(8)		(100)	%
Other income (expense), net	7		8		(1)		(13)	%
	22		41		(19)		(46)	%
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204		(127)		(62)	%
Interest expense	(66)		(70)		4		6	%
Earnings (loss) before income taxes and noncontrolling interests	11		134		(123)		(92)	%
Income tax (expense) benefit	(30)		(47)		17		36	%
Net income (loss)	(19)		87		(106)		(122)	%
Less: Net income (loss) attributable to noncontrolling interests	19		22		3		14	%
Net income (loss) attributable to Tenneco Inc.	$	(38)	$	65	$	(103)	(158)	%
Earnings (loss) per share
Basic earnings (loss) per share:
Earnings (loss) per share	$	(0.46)	$	0.80
Weighted average shares outstanding	83.1		82.0
Diluted earnings (loss) per share:
Earnings (loss) per share	$	(0.46)	$	0.79
Weighted average shares outstanding	83.1		82.5

Revenues

The following table lists the primary drivers behind the change in revenues (amounts in millions):

Three months ended March 31, 2021	$	4,731
Drivers in the change of organic revenues:
Volume and mix	(166)
Currency exchange rates	(113)
Others	197
Three months ended March 31, 2022	$	4,649

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Cost of sales

The following table lists the primary drivers behind the change in cost of sales (amounts in millions):

Three months ended March 31, 2021	$	4,061
Drivers in the change of organic cost of sales:
Volume and mix	(91)
Materials sourcing	230
Currency exchange rates	(102)
Inventory write-down	4
Others	6
Three months ended March 31, 2022	$	4,108

Selling, general, and administrative (SG&A)

SG&A decreased by $3 million to $252 million compared to $255 million for the three months ended March 31, 2021. The decrease was primarily due to lower net compensation and employee benefits during the three months ended March 31, 2022.

Depreciation and amortization

Depreciation and amortization decreased by $9 million to $146 million as compared to $155 million for the three months ended March 31, 2021, primarily attributable to the effects of reductions in capital expenditures.

Engineering, research, and development

Engineering, research, and development increased by $3 million to $75 million as compared to $72 million for the three months ended March 31, 2021. The increase was due primarily to an increase in research and development activities during the three months ended March 31, 2022.

Restructuring charges, net and asset impairments

Restructuring charges, net and asset impairments decreased by $12 million to $13 million as compared to $25 million for the three months ended March 31, 2021. The decrease is primarily due to a decrease of $16 million for cash severance costs expected to be paid as part of global headcount and cost reduction actions across all segments and regions, including plant relocations and closures; offset by an increase in non-restructuring asset impairment charges of $2 million in the Motorparts segment and an increase in impairment charges related to assets held for sale of $2 million in the Powertrain segment as compared to the three months ended March 31, 2021.

Non-service pension and postretirement benefit (costs) credits

Non-service pension and postretirement benefit (costs) credits was flat at a net credit of $3 million as compared to a net credit of $3 million for the three months ended March 31, 2021. The increase in interest costs due to the increase in discount rates and the decrease in expected return on plan assets due to the decrease in long-term rate of return were completely offset by the reduction in amortization expense.

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

Equity in earnings (losses) of nonconsolidated affiliates, net of tax decreased by $10 million as compared to the three months ended March 31, 2021. The decrease is primarily attributable to the decrease in equity in earnings of nonconsolidated affiliates located in Turkey.

Gain (loss) on extinguishment of debt

A non-cash gain on extinguishment of debt of $8 million was recognized for the three months ended March 31, 2021 related to the discharge of the 4.875% euro floating rate notes due 2024 and 5.000% euro fixed rate notes due 2024.

Other income (expense), net

Other income (expense), net decreased by $1 million as compared to the three months ended March 31, 2021.

Interest expense

Interest expense decreased by $4 million to $66 million as compared to $70 million for the three months ended March 31, 2021. The decrease was primarily due to lower interest expense on lower average outstanding borrowings on the revolver and term loans, along with a lower average interest rate on variable rate debt, partially offset by overall higher interest rates on fixed rate debt and an increase of $2 million in financing charges on sales of accounts receivable primarily driven by higher factoring balances.

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Income tax (expense) benefit

Income tax expense decreased by $17 million to $30 million as compared to $47 million in the three months ended March 31, 2021. The decrease is primarily due to the effects of pre-tax income that is taxed at rates higher than the U.S. statutory rate and pre-tax losses for which no tax benefit is recognized, as well as a $7 million non-cash benefit related to the release of a valuation allowance during the three months ended March 31, 2022.

Net income (loss)

Results for the three months ended March 31, 2022 was net loss of $19 million as compared to a net income of $87 million for the three months ended March 31, 2021 primarily due to 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 EBITDA including noncontrolling interests to net income (loss) (amounts in millions):

	Three Months Ended March 31,
	2022		2021
EBITDA including noncontrolling interests:
Motorparts	$	86	$	102
Performance Solutions	15		43
Clean Air	106		149
Powertrain	66		115
Corporate	(50)		(50)
Depreciation and amortization	(146)		(155)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204
Interest expense	(66)		(70)
Income tax (expense) benefit	(30)		(47)
Net income (loss)	$	(19)	$	87

See “Segment Results of Operations” for further information on EBITDA including noncontrolling interests.

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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, as 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.

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 affects our reported revenues.

The table below reflects our segment revenues for the three months ended March 31, 2022 and 2021 (amounts in millions):

	Segment Revenue
					Clean Air
	Motorparts		Performance Solutions		Value-add Revenues		Substrate Sales		Total		Powertrain		Total
Three months ended March 31, 2021	$	719	$	787	$	1,036	$	1,088	$	2,124	$	1,101	$	4,731
Drivers in the change of organic revenues:
Volume and mix	(43)		(4)		(72)		15		(57)		(62)		(166)
Currency exchange rates	(14)		(26)		(21)		(13)		(34)		(39)		(113)
Others	60		36		70		—		70		31		197
Three months ended March 31, 2022	$	722	$	793	$	1,013	$	1,090	$	2,103	$	1,031	$	4,649

Segment Revenue

Motorparts

Motorparts revenue increased $3 million, or less than 1%, as compared to the three months ended March 31, 2021. Other net favorable effects, which includes recoveries of commodity price increases, contributed $60 million to the increase, which more than offset the decrease in revenues attributable to the effects of lower sales volume of $43 million and unfavorable effect of foreign currency exchange of $14 million.

Performance Solutions

Performance Solutions revenue increased $6 million, or 1%, as compared to the three months ended March 31, 2021. Other favorable effects, which includes recoveries of commodity price increases, increased revenue by $36 million, which more than offset the decrease in Performance Solutions revenues attributable to the effects of net lower volume of $4 million and unfavorable effect of foreign currency exchange of $26 million.

Clean Air

Clean Air revenue decreased $21 million, or 1%, as compared to the three months ended March 31, 2021. The decrease was primarily due to the decrease in value-add revenue of $23 million, partially offset by the increase in substrate sales of $2 million. Overall for the Clean Air segment, the main drivers of the value-add revenue decrease was lower volume of $72 million when compared to the prior year. In addition, foreign currency exchange had a $21 million unfavorable effect on Clean Air value-add revenue, while other favorable effects, which includes recoveries of commodity price increases, increased value-add revenue by $70 million.

Powertrain

Powertrain revenue decreased $70 million, or 6%, as compared to the three months ended March 31, 2021. Lower volume contributed $62 million to the decrease. In addition, foreign currency exchange had a $39 million unfavorable effect on Powertrain revenue, while other favorable effects, which includes recoveries of commodity price increases, increased revenue by $31 million.

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EBITDA including noncontrolling interests

The following table presents the EBITDA including noncontrolling interests by segment (amounts in millions):

	Three Months Ended March 31,				Three Months Ended March 31,
	2022		2021		2022 vs 2021 Change
Motorparts	$	86	$	102	$	(16)
Performance Solutions	$	15	$	43	$	(28)
Clean Air	$	106	$	149	$	(43)
Powertrain	$	66	$	115	$	(49)

Motorparts

Motorparts EBITDA including noncontrolling interests decreased $16 million as compared to the three months ended March 31, 2021. The decrease is primarily attributable to unfavorable sales volume and mix, partially offset by favorable materials sourcing during the three months ended March 31, 2022 as compared to prior year.

Performance Solutions

Performance Solutions EBITDA including noncontrolling interests decreased $28 million as compared to the three months ended March 31, 2021. The decrease is primarily attributable to unfavorable materials sourcing during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021.

Clean Air

Clean Air EBITDA including noncontrolling interests decreased $43 million as compared to the three months ended March 31, 2021. The decrease is primarily attributable to lower sales volume and unfavorable operating performance. These unfavorable factors were partially offset by a decrease in restructuring charges related to cash severance benefits and other costs of $5 million during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021.

Powertrain

Powertrain EBITDA including noncontrolling interests decreased $49 million as compared to the three months ended March 31, 2021. The decrease is primarily attributable to unfavorable sales volume and mix and unfavorable material sourcing during the three months ended March 31, 2022 as compared to prior year. These unfavorable factors were partially offset by favorable operating performance and decrease in restructuring charges related to cash severance benefits and other costs of $8 million as compared to the three months ended March 31, 2021.

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
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total		Corporate		Total
Three Months Ended March 31, 2022
Restructuring charges, net	$	—	$	1	$	4	$	2	$	7	$	2	$	9
Restructuring related costs	—		4		—		2		6		2		8
Loss on sale of business	—		—		2		—		2		—		2
Other non-restructuring asset impairments	2		—		—		2		4		—		4
Inventory write-down(1)	4		—		—		—		4		—		4
Other costs (including strategic and transaction related)	—		—		—		—		—		4		4
Other	—		1		(2)		—		(1)		—		(1)
Total adjustments	$	6	$	6	$	4	$	6	$	22	$	8	$	30

(1) Non-cash charge of $4 million to write-down inventory in the Motorparts segment in connection with its initiative to rationalize its supply chain and distribution network.

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	Reportable Segments
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total		Corporate		Total
Three Months Ended March 31, 2021
Restructuring charges, net	$	2	$	4	$	9	$	10	$	25	$	—	$	25
Restructuring related costs	—		—		—		1		1		2		3
Loss on sale of business	1		—		—		—		1		—		1
Other costs (including strategic and transaction related)	—		—		(1)		—		(1)		9		8
Gain on extinguishment of debt	—		—		—		—		—		(8)		(8)
Total adjustments	$	3	$	4	$	8	$	11	$	26	$	3	$	29

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Liquidity and Capital Resources

Liquidity and Financing Arrangements

For the reasons discussed above under “Recent Trends and Market Conditions - General economic conditions”, there continues to be many uncertainties that remain related to the COVID-19 global pandemic (including the recent implementation of government lockdowns in China), the semiconductor shortage, the Russia and Ukraine conflict, other supply chain challenges, and the effects of inflation and rising interest rates that could negatively affect our liquidity and cash flows.

We believe cash flows from operations, combined with our cash on hand and committed and undrawn capacity under our $1.5 billion revolving credit facility, will be sufficient to meet our future capital requirements, including debt amortization, capital expenditures, pension contributions, and other operational requirements, for the following year based on our current estimates and forecasts. We believe we will maintain compliance with our financial ratios set forth in our amended credit agreement. However, 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, issuance of equity, and other alternatives to enhance our financial and operating position. We also continue to actively monitor credit market conditions for the right opportunity to replace and extend maturity.

Credit Facilities

The table below shows our borrowing capacity on committed credit facilities at March 31, 2022 (amounts in billions):

	March 31, 2022
	Term	Available(b)
Tenneco Inc. revolving credit facility (a)	2023	$	1.4
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2022 - 2028	—
		$	1.4

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

(b)At March 31, 2022, we had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under our revolving credit facility. We also had $68 million of outstanding letters of credit under our uncommitted facilities at March 31, 2022.

We have a senior credit facility under the credit agreement dated October 1, 2018 (as amended, restated, supplemented or otherwise modified, the “New Credit Facility”) that 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”). 

At March 31, 2022, we had liquidity of $2.1 billion comprised of $641 million of cash and $1.4 billion undrawn on our revolving credit facility. We had no outstanding borrowings on our revolving credit facility at March 31, 2022.

During the fourth quarter of 2021, we issued a $42 million letter of credit under our revolving credit facility and such letter of credit is included in the $69 million of total outstanding letters of credit at March 31, 2022, which reduces the available borrowings under our revolving credit facility. The letter of credit supports a 1.7 billion Mexican peso (approximately $85 million using exchange rates at March 31, 2022) surety bond issued to the Mexican tax authority. The surety bond is required in order for us to enter into the judicial process to appeal a tax assessment and covers the amount of the assessment plus interest. We do not believe it is probable we will have to pay the assessment or related interest. We also received a second assessment during the fourth quarter of 2021 from the Mexican tax authority of 0.6 billion Mexican peso (approximately $29 million using the exchange rate at March 31, 2022) for a separate matter, which has not required the issuance of a surety bond at this time. We do not believe it is probable we will have to pay this second assessment or related interest.

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Credit Facility

New Credit Facility — Interest Rates

At March 31, 2022, the interest rate on borrowings under the revolving credit facility and the Term Loan A facility was LIBOR plus 2.00% and will remain at LIBOR plus 2.00% for each relevant period for which our consolidated net leverage ratio (as defined in the New Credit Facility) is less than 4.50 to 1 and greater than or equal to 3.00 to 1. The interest rate on borrowings under the revolving credit facility and the Term Loan A facility are subject to step downs in accordance with the credit agreement.

The New Credit Facility prescribes for an alternative method of determining interest rates in the event LIBOR is not available.

New Credit Facility — Other Terms and Conditions

The third amendment dated May 5, 2020 (“Third Amendment”) of our New Credit Facility provided relief from the financial maintenance covenants for the revolving credit facility and Term Loan A facility subject to the non-occurrence of certain covenant reset triggers as more fully described in our 2021 Form 10-K. There has been no covenant reset trigger, or covenant reset certificate delivered. Accordingly, the financial ratio required at March 31, 2022 under the New Credit Facility was changed to a consolidated net leverage ratio from a senior secured net leverage ratio at December 31, 2021.

The financial ratios required under the New Credit Facility and the actual ratios we calculated as of March 31, 2022 are as follows: consolidated net leverage ratio of 3.68 actual versus 5.25 (maximum required under the Third Amendment); and interest coverage ratio of 5.24 actual versus 2.75 (minimum required under the Third Amendment).

Further information on interest rates, fees, and other terms and conditions of the New Credit Facility is included in our 2021 Form 10-K.

Senior Notes

A summary of our senior unsecured and secured notes at March 31, 2022 are as follows (amounts in millions):

	Principal		Carrying Amount(a)
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	$	225	$	223
$500 million of 5.000% Senior Notes due 2026	$	500	$	496
Senior Secured Notes
$500 million of 7.875% Senior Secured Notes due 2029	$	500	$	490
$800 million of 5.125% Senior Secured Notes due 2029	$	800	$	788

(a) Carrying amount is net of unamortized debt issuance costs of $28 million at March 31, 2022.

On March 3, 2021, we provided notice of our intention to redeem all of the outstanding 5.000% euro denominated senior secured notes due July 15, 2024 (the “2024 Fixed Rate Secured Notes”) and all of the outstanding floating rate euro denominated senior secured notes due April 15, 2024 (the “2024 Floating Rate Secured Notes” and, together with the 2024 Fixed Rate Secured Notes, the “2024 Secured Notes”). On March 17, 2021, we, using the net proceeds from the offering of 5.125% Senior Secured Notes, together with cash on hand, satisfied and discharged each of the indentures governing the 2024 Secured Notes in accordance with their terms. As a result, we recorded a gain on extinguishment of debt of $8 million for the three months ended March 31, 2021.

Further information on the terms and conditions of the Senior Unsecured Notes and Senior Secured Notes is included in our 2021 Form 10-K.

At March 31, 2022, we were in compliance with all of our financial covenants under the indentures governing the Senior Unsecured Notes and Senior Secured Notes.

Factoring Arrangements

In our 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. Some of these programs have deferred purchase price arrangements with the banks.

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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.

At March 31, 2022 and December 31, 2021, the amount of accounts receivable outstanding and derecognized for factoring arrangements was $1.1 billion and $1.0 billion, of which $0.6 billion and $0.5 billion relate to accounts receivable where we have continuing involvement. In addition, the deferred purchase price receivable was $68 million and $51 million at March 31, 2022 and December 31, 2021.

For the three months ended March 31, 2022 and 2021, proceeds from the factoring of accounts receivable qualifying as sales were $1.5 billion and $1.3 billion, of which $1.2 billion and $1.1 billion were received on accounts receivable where we have continuing involvement.

For the three months ended March 31, 2022 and 2021, our financing charges associated with the factoring of receivables, which are included in “Interest expense” in the condensed consolidated statements of income (loss), were $6 million and $4 million.

If we were not able to factor receivables under these programs, our borrowings under our revolving credit agreement might increase. 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.

Cash Flows

Operating Activities

Operating activities were as follows (amounts in millions):

	Three Months Ended March 31,
	2022		2021
Operational cash flow before changes in operating assets and liabilities	$	113	$	268
Changes in operating assets and liabilities:
Receivables	(320)		(452)
Inventories	(213)		(120)
Payables and accrued expenses	325		240
Accrued interest and accrued income taxes	(22)		8
Other assets and liabilities	30		6
Total change in operating assets and liabilities	(200)		(318)
Net cash (used) provided by operating activities	$	(87)	$	(50)

Net cash used by operating activities for the three months ended March 31, 2022 was $87 million, an increase of $37 million as compared to the net cash used by operating activities of $50 million for the three months ended March 31, 2021. The unfavorable operating cash flow activity was primarily due to the decrease in net cash provided by operating activities before operating assets and liabilities of $155 million, partially offset by the favorable changes in net cash used by operating activities of $118 million primarily attributable to working capital items.

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Investing Activities

Investing activities were as follows (amounts in millions):

	Three Months Ended March 31,
	2022		2021
Proceeds from sale of assets	$	5	$	7
Net proceeds from sale of business	1		1
Cash payments for property, plant and equipment	(93)		(95)
Proceeds from deferred purchase price of factored receivables	99		115
Other	(1)		—
Net cash (used) provided by investing activities	$	11	$	28

Net cash provided by investing activities for the three months ended March 31, 2022 was $11 million, as compared to net cash provided by investing activities of $28 million for the three months ended March 31, 2021, primarily due to a decrease in proceeds from deferred purchase price of factored receivables of $16 million and a decrease in net proceeds from sale of assets of $2 million. Cash payments for property, plant and equipment were $93 million for the three months ended March 31, 2022 as compared to $95 million for the three months ended March 31, 2021.

Financing Activities

Financing activities were as follows (amounts in millions):

	Three Months Ended March 31,
	2022		2021
Proceeds from term loans and notes	$	4	$	813
Repayments and extinguishment costs of term loans and notes	(68)		(862)
Debt issuance costs of long-term debt	—		(11)
Borrowings on revolving lines of credit	1,583		1,382
Payments on revolving lines of credit	(1,584)		(1,394)
Distributions to noncontrolling interest partners	(24)		(7)
Other	(48)		(51)
Net cash (used) provided by financing activities	$	(137)	$	(130)

Net cash flow used by financing activities was $137 million for the three months ended March 31, 2022. This included net repayments on term loans and notes of $64 million, net repayments on revolving lines of credit of $1 million, distributions to noncontrolling interest partners of $24 million, and net repayments on other financing arrangements of $48 million.

Net cash flow used by financing activities was $130 million for the three months ended March 31, 2021. This included net repayments and extinguishment costs on term loans and notes of $49 million, net repayments on revolving lines of credit of $12 million, distributions to noncontrolling interest partners of $7 million and net repayments on other financing arrangements of $51 million.

Dividends on Common Stock

We did not pay dividends during the three months ended March 31, 2022 and 2021, due to the suspension of the dividend program in the second quarter of 2019.

Redeemable noncontrolling interests

At March 31, 2022, we held a redeemable noncontrolling interest of $49 million, which became redeemable during the three months ended March 31, 2022 following the third anniversary of the Öhlins acquisition on January 10, 2019. This redeemable noncontrolling interest represents a 9.5% ownership interest in Öhlins Intressenter AB (the “KÖ Interest”) retained by K Öhlin Holding AB (“Köhlin”).

Subsequent to March 31, 2022, we received a notice from Köhlin of its intention to redeem all of the KÖ Interest. The redemption of the KÖ Interest is expected to be paid in the second quarter of 2022.

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Supplemental Guarantor Financial Information

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 senior notes. The Guarantor Subsidiaries are combined in the presentation below.

Summarized Financial Information

The following tables present summarized financial information for the Parent and the Guarantors on a combined basis after the elimination of (a) intercompany transactions and balances among the Parent and the Guarantors and (b) the equity in earnings from and investments in any subsidiary that is a Nonguarantor (amounts in millions):

Income Statements

	Three Months Ended March 31, 2022		Year Ended December 31, 2021
Net sales and operating revenues	$	1,875	$	7,108
Operating expenses	$	1,938	$	7,234
Net income (loss)	$	(97)	$	(585)
Net income (loss) attributable to Tenneco Inc.	$	(97)	$	(585)

Balance Sheets

	March 31, 2022		December 31, 2021
ASSETS
Current assets	$	367	$	480
Non-current assets	$	1,812	$	1,853
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	1,611	$	1,432
Non-current liabilities	$	5,391	$	5,441
Intercompany due to (due from)	$	441	$	624

Environmental Matters, Legal Proceedings and Product Warranties

Note 11, “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.

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ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to certain global market risks, including foreign currency exchange rate risk, commodity price risk, interest rate risk associated with our debt, and equity price risk associated with our share-based compensation awards.

Foreign Currency Exchange Rate Risk

We manufacture and sell our products globally. 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 the foreign markets in which we manufacture and sell our products. We generally try to use natural hedges within our foreign currency activities 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.

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 and intercompany loans. The fair value of these derivative instruments is not considered material to the condensed consolidated financial statements.

The following table summarizes by position the notional amounts for foreign currency forward contracts at March 31, 2022, all of which mature in the next twelve months (amounts in millions):

	Notional Amount
Long positions	$	415
Short positions	$	411

Commodity Price Risk

Our production processes are dependent upon the supply of certain raw materials that are exposed to price fluctuations on the open market. Commodity rate price forward contracts are executed to offset a portion of our exposure to the potential change in prices for raw materials. We monitor our commodity price risk exposures regularly to maximize the overall effectiveness of our commodity forward contracts. The fair value of our commodity price forward contracts is not considered material to the condensed consolidated financial statements.

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. At March 31, 2022, we had $2.0 billion par value of fixed rate debt and $3.0 billion par value of floating rate debt. Of the fixed rate debt, $225 million is fixed through 2024, $500 million is fixed through 2026, and $1.3 billion is fixed through 2029. For more detailed explanations on our debt structure and New Credit Facility, refer to “Liquidity and Capital Resources” earlier in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 8, “Debt and Other Financing Arrangements” in our condensed consolidated financial statements located in Part I, Item 1 of this Form 10-Q.

We estimate the fair value of our long-term debt at March 31, 2022 was approximately 101% 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 condensed consolidated statements of income (loss) and the cash we pay for interest expense by approximately $30 million.

Equity Price Risk

We have certain employee compensation arrangements, including cash-settled share-based units granted under our long-term incentive plan, that are valued based on Tenneco Inc. share price. The share equivalents outstanding related to cash-settled share-based awards are as follows:

	March 31, 2022	December 31, 2021
Restricted Stock Units (RSUs)	1,224,513	1,451,422
Performance Share Units (PSUs)	4,376,689	2,951,316
	5,601,202	4,402,738

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At March 31, 2022, a change in the Tenneco Inc. share price of 10% would cause a change to the compensation liability of approximately $3 million, and would change the cash payout of all share equivalents, once fully vested at 100%, by $10 million.

We selectively use financial instruments to reduce the market risk associated with our share-based, cash-settled liabilities, which increase as our stock price increases, and decrease as our stock price decreases. These financial instruments move in the opposite direction of the compensation payouts, allowing us to substantially mitigate the risk associated with changes in the Tenneco Inc. share price of the final cash settlement. At March 31, 2022, we had 3,100,000 common share equivalents of these financial instruments.

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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 Chief Executive Officer 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 of the end of the quarter covered by this report.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2022 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

During the quarter ended March 31, 2022, there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Note 11, “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. Except as set forth below, 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, 2021. 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 affect our business, financial condition and operating results.

The proposed Merger is subject to approval of our stockholders as well as the satisfaction of other closing conditions, including government consents and approvals, some or all of which may not be satisfied or completed within the expected timeframe, if at all.

Completion of the Merger is subject to a number of closing conditions, including obtaining the approval of our stockholders and the receipt of required regulatory approvals, consents or clearances with respect to the Merger under applicable foreign competition and/or foreign direct investment laws. This includes, among other jurisdictions, potential clearances and/or approvals under the antitrust laws of Russia and Ukraine. Apollo may, in its sole discretion, elect to waive the receipt of such Russian and/or Ukrainian approvals and/or clearances as conditions to the consummation of the Merger. We can provide no assurance that all required consents and approvals will be obtained or that all closing conditions will otherwise be satisfied (or waived, if applicable), and, even if all required consents and approvals can be obtained and all closing conditions are satisfied (or waived, if applicable), we can provide no assurance as to the terms, conditions and timing of such consents and approvals or the timing of the completion of the Merger. Many of the conditions to completion of the Merger are not within our control, and we cannot predict when or if these conditions will be satisfied (or waived, if applicable). Any adverse consequence of the pending Merger could be exacerbated by any delays in completion of the Merger or termination of the Merger Agreement.

Each party’s obligation to consummate the Merger is also subject to the accuracy of the representations and warranties of the other party (subject to customary materiality qualifications) and compliance in all material respects with the covenants and agreements contained in the Merger Agreement as of the closing of the Merger, including, with respect to us, covenants to conduct our business in the ordinary course and to not engage in certain kinds of material transactions prior to closing. In addition, the Merger Agreement may be terminated under certain specified circumstances, including, but not limited to, in connection with a change in the recommendation of our Board of Directors to enter into an agreement for a Superior Proposal (as defined in the Merger Agreement). As a result, we cannot assure you that the Merger will be completed, even if our stockholders approve the Merger, or that, if completed, it will be exactly on the terms set forth in the Merger Agreement or within the expected time frame.

The conflict between Russia and Ukraine may adversely affect our business, financial condition, and results of operations.

In late February 2022, Russia launched a military attack on Ukraine. In response, the United States, the European Union and the United Kingdom, among other countries, have imposed a wave of sanctions against certain Russian institutions, companies and citizens. We have suspended any imports into Russia, including to our own subsidiaries in Russia, and have suspended any exports out of Russia. Although we do not have significant operations in Russia or Ukraine compared to our global operations, our operations in these regions have been disrupted due to the conflict and the potentially destabilizing effects of the Russia and Ukraine conflict, or potential for a larger conflict, could have other effects on our business.

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In addition, economic and geopolitical instability and increased trade barriers as a result of the Russia and Ukraine conflict and related sanctions could have a material adverse effect on our operating results, financial condition, and cash flows as a result of potential impacts on our business, the supply chain, suppliers, customers and potential consumer demand for our products. Because Russia and Ukraine are both major global suppliers of internationally traded steelmaking raw materials, the conflict may increase prices for steel, the primary raw material we use in our products, or other materials and commodities. Further escalation of geopolitical tensions related to military conflict could result in loss of property, expropriation, supply disruptions, loss of trademark rights, plant closures and an inability to obtain key supplies and materials, as well as adversely affect our business and our supply chain, our international subsidiaries and joint ventures, business partners or customers in the broader region. It is not possible to predict the broader consequences of this conflict, which could include further sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on macroeconomic conditions, the availability and cost of raw materials, supplies, freight and labor, currency exchange rates and financial markets, all of which could impact our business, financial condition and results of operations.

In addition, the risk of cybersecurity incidents has increased in connection with the conflict between Russia and Ukraine. It is possible that cyberattacks could have collateral effects on additional critical infrastructure and financial institutions globally, which could adversely affect our operations. The proliferation of malware from the conflict into systems unrelated to the conflict, or cyberattacks against U.S. companies in retaliation for U.S. sanctions against Russia or U.S. support of Ukraine, could also adversely affect our business, financial condition, and results of operations.

There is also no guarantee that the current Russia and Ukraine conflict will not draw military or other intervention from additional countries, which could lead to a much larger conflict and/or additional sanctions imposed by the U.S. government and other governments that restrict business with specific persons, organizations or countries or with respect to certain products or services. If such escalation should occur or such sanctions are imposed, supply chain, trade routes and markets currently served by us could be adversely affected, which, in turn, could materially adversely affect our business, financial condition, and results of operations.

In addition, the Russia and Ukraine conflict could heighten many of our known risks described in Part I, Item 1A. “Risk Factors” in the Form 10-K.

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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 2022. These purchases reflect shares withheld upon vesting of restricted stock, restricted stock units and performance stock units for tax withholding obligations. We generally intend to continue to satisfy tax withholding obligations in connection with the vesting of outstanding share-settled units through the withholding of shares.

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 2022	74	$	11.20	—	$	—
February 2022	242,409	10.43		—	—
March 2022	115,289	18.85		—	—
Total	357,772	$	13.14	—	$	—

(1)     Shares withheld upon vesting of share-settled restricted stock units in the first quarter of 2022.

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ITEM 6.EXHIBITS

INDEX TO EXHIBITS

QUARTERLY REPORT ON FORM 10-Q

FOR QUARTER ENDED MARCH 31, 2022

Exhibit Number		Description
2.1	—	Agreement and Plan of Merger, dated as of February 22, 2022, by and among Pegasus Holdings III, LLC, Pegasus Merger Co., and Tenneco Inc. (incorporated herein by reference to Exhibit 2.1 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2021, File No 1-12387).
3.1	—	Amendment to the By-laws of the Company, dated February 22, 2022 (incorporated herein by reference to Exhibit 3.1 of the registrant’s Current Report on Form 8-K dated February 23, 2022, File No 1-12387).
10.1	—	Tenneco Inc. Annual Incentive Plan (as amended and restated effective January 1, 2022) (incorporated herein by reference to Exhibit 10.16 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2021, File No 1-12387).
*31.1	—	Certification of Brian J. Kesseler under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	—	Certification of Matti Masanovich under Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1	—	Certification of Brian J. Kesseler and Matti Masanovich under Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	—	Inline XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
*101.SCH	—	Inline XBRL Taxonomy Extension Schema Document.
*101.CAL	—	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF	—	Inline XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB	—	Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	—	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	—	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

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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/ MATTI MASANOVICH
	Matti Masanovich
	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 5, 2022

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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 officer 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 officer 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

Chief Executive Officer

Dated: May 5, 2022

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT

I, Matti Masanovich, 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 officer 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 officer 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/ MATTI MASANOVICH

Matti Masanovich

Executive Vice President and Chief Financial Officer

Dated: May 5, 2022

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, 2022, 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, as Chief Executive Officer of the Company and Matti Masanovich, as Executive Vice President and 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

Chief Executive Officer

/s/ MATTI MASANOVICH

Matti Masanovich

Executive Vice President and Chief Financial Officer

May 5, 2022

    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.

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Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-12387
Entity Registrant Name	TENNECO INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0515284
Entity Address, Address Line One	7450 N McCormick Blvd
Entity Address, City or Town	Skokie
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60076
City Area Code	847
Local Phone Number	482-5000
Title of 12(b) Security	Class A Voting Common Stock, par value $0.01 per share
Trading Symbol	TEN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		83,380,100
Entity Central Index Key	0001024725
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Net sales and operating revenues	$ 4,649	$ 4,731
Costs and expenses
Cost of sales (exclusive of depreciation and amortization)	4,108	4,061
Selling, general, and administrative	252	255
Depreciation and amortization	146	155
Engineering, research, and development	75	72
Restructuring charges, net and asset impairments	13	25
Costs and expenses	4,594	4,568
Other income (expense)
Non-service pension and postretirement benefit (costs) credits	3	3
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	12	22
Gain (loss) on extinguishment of debt	0	8
Other income (expense), net	7	8
Total other expense (income)	22	41
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77	204
Interest expense	(66)	(70)
Earnings (loss) before income taxes and noncontrolling interests	11	134
Income tax (expense) benefit	(30)	(47)
Net income (loss)	(19)	87
Less: Net income (loss) attributable to noncontrolling interests	19	22
Net income (loss) attributable to Tenneco Inc.	$ (38)	$ 65
Basic earnings (loss) per share:
Earnings (loss) per share (in dollars per share)	$ (0.46)	$ 0.80
Weighted average shares outstanding (in shares)	83,132,797	81,953,133
Diluted earnings (loss) per share:
Earnings (loss) per share (in dollars per share)	$ (0.46)	$ 0.79
Weighted average shares outstanding (in shares)	83,132,797	82,524,129

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (19)	$ 87
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(3)	(52)
Defined benefit plans	0	3
Cash flow hedges	4	(2)
Other comprehensive income (loss), net of tax	1	(51)
Comprehensive income (loss)	(18)	36
Less: Comprehensive income (loss) attributable to noncontrolling interests	16	16
Comprehensive income (loss) attributable to common shareholders	$ (34)	$ 20

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 636	$ 859
Restricted cash	5	6
Receivables:
Customer notes and accounts, net	2,503	2,308
Other	133	111
Inventories	2,049	1,846
Prepayments and other current assets	694	683
Total current assets	6,020	5,813
Property, plant, and equipment, net	2,811	2,872
Long-term receivables, net	6	5
Goodwill	507	507
Intangibles, net	1,022	1,056
Investments in nonconsolidated affiliates	513	539
Deferred income taxes	268	266
Other assets	556	564
Total assets	11,703	11,622
Current liabilities:
Short-term debt, including current maturities of long-term debt	41	57
Accounts payable	3,244	2,955
Accrued compensation and employee benefits	445	381
Accrued income taxes	52	71
Accrued expenses and other current liabilities	1,102	1,227
Total current liabilities	4,884	4,691
Long-term debt	4,976	5,018
Deferred income taxes	103	105
Pension and postretirement benefits	803	830
Deferred credits and other liabilities	490	491
Commitments and contingencies (Note 11)
Total liabilities	11,256	11,135
Redeemable noncontrolling interests	90	91
Tenneco Inc. shareholders’ equity:
Preferred stock - $0.01 par value; none issued	0	0
Additional paid-in capital	4,464	4,462
Accumulated other comprehensive loss	(591)	(595)
Accumulated deficit	(2,891)	(2,853)
Shares held as treasury stock - at cost: (March 31, 2022 and December 31, 2021 - 14,592,888)	(930)	(930)
Total Tenneco Inc. shareholders’ equity (deficit)	53	85
Noncontrolling interests	304	311
Total equity	357	396
Total liabilities, redeemable noncontrolling interests, and equity	11,703	11,622
Class A
Tenneco Inc. shareholders’ equity:
Common stock	1	1
Class B
Tenneco Inc. shareholders’ equity:
Common stock	$ 0	$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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)	97,966,913	96,713,188
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)	0
Treasury shares (in shares)	0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities
Net income (loss)	$ (19)	$ 87
Adjustments to reconcile net income (loss) to cash (used) provided by operating activities:
Depreciation and amortization	146	155
Deferred income taxes	(3)	(4)
Stock-based compensation	6	5
Restructuring charges and asset impairments, net of cash paid	(5)	0
Change in pension and other postretirement benefit plans	(13)	(1)
Equity in earnings of nonconsolidated affiliates	(12)	(22)
Cash dividends received from nonconsolidated affiliates	32	57
Loss (gain) on sale of assets and other	(19)	(9)
Changes in operating assets and liabilities:
Receivables	(320)	(452)
Inventories	(213)	(120)
Payables and accrued expenses	325	240
Accrued interest and accrued income taxes	(22)	8
Other assets and liabilities	30	6
Net cash (used) provided by operating activities	(87)	(50)
Investing Activities
Proceeds from sale of assets	5	7
Net proceeds from sale of business	1	1
Cash payments for property, plant and equipment	(93)	(95)
Proceeds from deferred purchase price of factored receivables	99	115
Other	(1)	0
Net cash (used) provided by investing activities	11	28
Financing Activities
Proceeds from term loans and notes	4	813
Repayments and extinguishment costs of term loans and notes	(68)	(862)
Borrowings on revolving lines of credit	1,583	1,382
Payments on revolving lines of credit	(1,584)	(1,394)
Debt issuance costs of long-term debt	0	(11)
Distributions to noncontrolling interest partners	(24)	(7)
Other	(48)	(51)
Net cash (used) provided by financing activities	(137)	(130)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(11)	(20)
Increase (decrease) in cash, cash equivalents, and restricted cash	(224)	(172)
Cash, cash equivalents, and restricted cash, beginning of period	865	803
Cash, cash equivalents, and restricted cash, end of period	641	631
Supplemental Cash Flow Information
Cash paid during the period for interest	56	65
Cash paid during the period for income taxes, net of refunds	67	46
Lease assets obtained in exchange for new operating lease liabilities	19	15
Non-cash Investing Activities
Period end balance of accounts payable for property, plant, and equipment	78	91
Deferred purchase price of receivables factored in the period	$ 121	$ 135

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Total Tenneco Inc. Shareholders’ Equity (Deficit)	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Treasury Stock	Noncontrolling Interests	Total Equity
Beginning balance (in shares) at Dec. 31, 2020			1
Balance at beginning of period at Dec. 31, 2020		$ (119)		$ 4,442	$ (744)	$ (2,888)	$ (930)	$ 300	$ 181
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 87	65				65		10	75
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments	(52)	(46)			(46)			(3)	(49)
Defined benefit plans	3	3			3				3
Cash flow hedges	(2)	(2)			(2)				(2)
Comprehensive income (loss)	36	20						7	27
Stock-based compensation, net		3		3					3
Distributions declared to noncontrolling interests								(2)	(2)
Ending balance (in shares) at Mar. 31, 2021			1
Balance at end of period at Mar. 31, 2021		(96)		4,445	(789)	(2,823)	(930)	305	209
Beginning balance (in shares) at Dec. 31, 2021			1
Balance at beginning of period at Dec. 31, 2021	396	85		4,462	(595)	(2,853)	(930)	311	396
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(19)	(38)				(38)		7	(31)
Other comprehensive income (loss)—net of tax:
Foreign currency translation adjustments	(3)							(1)	(1)
Defined benefit plans	0
Cash flow hedges	4	4			4				4
Comprehensive income (loss)	(18)	(34)						6	(28)
Stock-based compensation, net		2		2					2
Distributions declared to noncontrolling interests								(13)	(13)
Ending balance (in shares) at Mar. 31, 2022			1
Balance at end of period at Mar. 31, 2022	$ 357	$ 53		$ 4,464	$ (591)	$ (2,891)	$ (930)	$ 304	$ 357

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Description of Business

3 Months Ended

Mar. 31, 2022

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, markets, and distributes products and services for light vehicle, commercial truck, off-highway, industrial, motorsport, and aftermarket customers. Tenneco consists of four operating segments, Motorparts, Performance Solutions, Clean Air, and Powertrain and serves both original equipment (“OE”) manufacturers and the repair and replacement markets worldwide.

Proposed Merger

On February 22, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Pegasus Holdings III, LLC (“Parent”) and Pegasus Merger Co., a wholly owned subsidiary of Parent (“Merger Sub” and together with Parent, “Buyer”). Pursuant to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Tenneco (the “Merger”) with Tenneco continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of certain funds managed by affiliates of Apollo Global Management, Inc. At the effective time of the Merger (the “Effective Time”), each share of the Company’s Class A voting common stock that is issued and outstanding immediately prior to the Effective Time (other than shares to be cancelled pursuant to the Merger Agreement or shares of Class A voting common stock held by holders who have made a valid demand for appraisal in accordance with Section 262 of the Delaware General Corporation Law), will be automatically converted into the right to receive $20.00 in cash, without interest.

At the Effective Time, subject to the terms and conditions set forth in the Merger Agreement, each restricted share unit award (“RSU”) and each performance share unit award (“PSU”) of Tenneco that is outstanding immediately prior to the Effective Time will automatically be cancelled and converted into the holder’s right to receive a cash amount (subject to any applicable withholding taxes) calculated based on the per-share Merger consideration of $20.00.

The closing of the Merger is subject to various conditions, including (i) the adoption of the Merger Agreement by holders of a majority of the issued and outstanding shares of the Company’s common stock; (ii) the absence of any order, injunction or other legal or regulatory restraint making illegal, enjoining or otherwise prohibiting the closing of the Merger; (iii) the receipt of clearances and/or approvals under applicable foreign competition and/or other laws; (iv) the accuracy of the representations and warranties contained in the Merger Agreement, subject to customary materiality qualifications; and (v) compliance with the covenants and agreements contained in the Merger Agreement as of the closing of the Merger. In addition, the obligation of Parent and Merger Sub to consummate the Merger is subject to the absence, since the date of the Merger Agreement, of a Company Material Adverse Effect (as defined in the Merger Agreement under clause (b) of such definition). The closing of the Merger is not subject to a financing condition, and Parent has obtained equity and debt financing commitments for the purpose of financing the Merger and the other transactions contemplated by the Merger Agreement.

The Company’s Board of Directors and the sole member or board of directors, as applicable, of Parent and Merger Sub have each unanimously approved the Merger and the Merger Agreement. If approved by the Company’s stockholders, the Merger is expected to close in the second half of 2022. Until the closing, the Company will continue to operate as an independent company.

The Company has incurred and will incur certain significant costs relating to the Merger, such as legal, accounting, financial advisory, printing and other professional services fees, as well as other customary payments. In the event that the Merger Agreement is terminated, the Company may also be required to pay a cash termination fee to Parent of $54 million, as required under the Merger Agreement under certain circumstances. If the Merger Agreement is terminated under certain other circumstances, including if the Merger Agreement is terminated following December 31, 2022 and at the time of such termination the only conditions to the closing of the Merger that have not been waived or satisfied (other than conditions that are, by their terms, satisfied at such closing) are the receipt of approvals, consents and consultations pursuant to the competition laws of Russia or Ukraine, Parent will be required to pay the Company a cash termination fee of $108 million.

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Basis of Presentation

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

2. 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, 2021, which was filed with the Securities and Exchange Commission on February 24, 2022 (the “2021 Form 10-K”). Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

There are many uncertainties related to the COVID-19 global pandemic (including the recent implementation of government lockdowns in China), the semiconductor shortage, the Russia and Ukraine conflict, other supply chain challenges, and the effects of inflation and rising interest rates on the overall macroeconomic environment that could negatively affect the Company’s results of operations, financial position, and cash flows. The Company does not have significant operations in Russia or Ukraine compared to its global operations, but its operations in these regions have been disrupted due to the conflict. Sales from the Company’s Russian subsidiaries and sales into Russia and Ukraine from its global subsidiaries were less than 1% of its consolidated “Net sales and operating revenue” for the year ended December 31, 2021.

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 in the event of a change in control of Tenneco Inc. or certain of its subsidiaries or the passage of time.

At March 31, 2022 and December 31, 2021, the Company held redeemable noncontrolling interests of $41 million and $50 million which were not currently redeemable or probable of becoming redeemable. The redemption of these redeemable noncontrolling interests is not solely within the Company’s control, therefore, they 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. As such, these noncontrolling interests have not been remeasured to redemption value.

In addition, at March 31, 2022 and December 31, 2021, the Company held a redeemable noncontrolling interest of $49 million and $41 million, which became redeemable during the three months ended March 31, 2022 following the third anniversary of the Öhlins acquisition on January 10, 2019. This redeemable noncontrolling interest represents a 9.5% ownership interest in Öhlins Intressenter AB (the “KÖ Interest”) retained by K Öhlin Holding AB (“Köhlin”). This noncontrolling interest is also presented in the temporary equity section of the Company’s condensed consolidated balance sheets and has been remeasured to its redemption value. The Company immediately recognizes changes to redemption value as a component of “Net income (loss) attributable to noncontrolling interests” in the condensed consolidated statements of income (loss).

The following is a rollforward of activities in the Company’s redeemable noncontrolling interests:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	91	$	78
Net income (loss) attributable to redeemable noncontrolling interests	4		7
Other comprehensive (loss) income	(2)		(3)
Redemption value measurement adjustments	8		5
Dividends declared to noncontrolling interests	(11)		—
Balance at end of period	$	90	$	87

Subsequent to March 31, 2022, the Company received a notice from Köhlin of its intention to redeem all of the KÖ Interest. The redemption of the KÖ Interest is expected to be paid in the second quarter of 2022.

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 as follows:

	Three Months Ended March 31,
	2022	2021
Weighted average shares of common stock outstanding	83,132,797	81,953,133
Effect of dilutive securities:
RSUs and PSUs	—	570,996
Weighted average shares of common stock outstanding including dilutive securities	83,132,797	82,524,129
Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share	3,919,083	2,075,446

Assets Held for Sale and Divestitures

At March 31, 2022 and December 31, 2021, the Company had $14 million and $22 million of assets held for sale, which primarily consists of land and buildings, and non-core machinery and equipment across multiple segments that are expected to be sold in the next twelve months, as well as $8 million and $9 million in related environmental and asset retirement obligation liabilities. The Company recognized $2 million of impairment charges on assets as held for sale during the three months ended March 31, 2022.

In the first quarter of 2022, the Company closed on the sale of a non-core business for cash proceeds of $3 million and recognized a loss on the sale of $2 million. The Company received $1 million of the purchase price in the first quarter of 2022, with the remaining $2 million expected to be received through the fourth quarter of 2022.

The assets and liabilities held for sale are recorded in “Prepayments and other current assets” and “Accrued expenses and other current liabilities” in the consolidated balance sheets at March 31, 2022 and December 31, 2021.

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Restructuring Charges, Net and Asset Impairments

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Charges, Net and Asset Impairments

3. Restructuring Charges, Net and Asset Impairments

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 exit costs. Restructuring charges, net and asset impairments by segment are as follows:

Three Months Ended March 31, 2022

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	—	$	1	$	4	$	2	$	2	$	9
Other non-restructuring asset impairments	2		—		—		—		—		2
Impairment of assets held for sale	—		—		—		2		—		2
Total asset impairment charges	2		—		—		2		—		4
Total restructuring charges, net and asset impairments	$	2	$	1	$	4	$	4	$	2	$	13

Severance and other charges, net

The Company recognized charges of $5 million in severance and other charges expected to be paid and a $2 million revision to previously recorded estimate for a cost reduction initiative during the three months ended March 31, 2022. The Company also recognized severance and other charges of $6 million related to plant consolidations, relocations, and closures during the three months ended March 31, 2022.

Performance Solutions recognized severance and other charges for the three months ended March 31, 2022 of $1 million related to plant consolidations, relocations, and closures, primarily in North America.

Clean Air recognized severance and other charges for the three months ended March 31, 2022 of $4 million related to plant consolidations, relocations, and closures in North America and Asia Pacific.

Powertrain recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2022 as follows:

•$3 million related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount. At March 31, 2022, total severance related restructuring charges for this program aggregate to $23 million, $18 million under the current voluntary program and $5 million related to other cost reduction initiatives. Total severance related charges are expected to be approximately $36 million;

•$1 million related to plant consolidations, relocations, and closures, primarily in Asia Pacific; and

•$2 million reduction in severance and other charges due to a revision in estimates in connection with other cost reduction initiatives primarily in Asia Pacific.

The Company also incurred $2 million in cash severance costs within its corporate component for the three months ended March 31, 2022.

Asset impairments

Other non-restructuring asset impairments

During the three months ended March 31, 2022, the Motorparts segment recognized asset impairment charges of $2 million related to the write-down of property, plant and equipment.

Impairment of assets held for sale

Refer to Note 2, “Basis of Presentation” for information on the impairment of assets held for sale.

Three Months Ended March 31, 2021

	Three Months Ended March 31, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	2	$	4	$	9	$	10	$	—	$	25
Total restructuring charges, net and asset impairments	$	2	$	4	$	9	$	10	$	—	$	25

Severance and other charges, net

The Company recognized a net charge of $17 million in severance and other charges expected to be paid for cost reduction initiatives during the three months ended March 31, 2021. The Company also recognized severance and other charges of $11 million related to plant consolidations, relocations, and closures during the three months ended March 31, 2021.

In response to the COVID-19 pandemic the Company announced Project Accelerate and executed global headcount reductions. The Company recognized a reduction of $3 million in revisions to estimates in connection with cash and severance payments expected to be paid in connection with these actions during the three months ended March 31, 2021.

Motorparts recognized severance and other charges for the three months ended March 31, 2021 of $2 million in connection with its supply chain rationalization and distribution network initiative to achieve efficiencies and improve throughput to its customers in North America.

Performance Solutions recognized severance and other charges for the three months ended March 31, 2021 of $4 million in connection with the other cost reduction initiatives primarily in Europe.

Clean Air recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2021 as follows:

•$15 million in severance and other charges, along with a reduction of $5 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;

•$2 million in severance and other charges related to plant consolidations and closures primarily in North America and Asia Pacific; and

•$3 million reduction in severance and other charges due to a revision in estimates in connection with Project Accelerate.

Powertrain recognized severance and other charges, and revisions to estimates for the three months ended March 31, 2021 as follows:

•$1 million reduction in severance and other charges due to a revision in estimates in connection with the other cost reduction initiatives primarily in Europe;

•$9 million in severance and other charges related to plant consolidations, relocations, and closures, primarily in Europe and North America; and

•$2 million restructuring costs incurred related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount.

Restructuring Reserve Rollforward

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, 2022						Three Months Ended March 31, 2021
	Employee Costs		Facility Closure and Other Costs		Total		Employee Costs		Facility Closure and Other Costs		Total
Balance at beginning of period	$	63	$	—	$	63	$	99	$	1	$	100
Provisions	10		1		11		31		3		34
Revisions to estimates	(2)		—		(2)		(9)		—		(9)
Payments	(17)		(1)		(18)		(21)		(4)		(25)
Foreign currency	—		—		—		(1)		—		(1)
Balance at end of period	$	54	$	—	$	54	$	99	$	—	$	99

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Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

4. Inventories

Inventory by major classification was as follows:

	March 31, 2022		December 31, 2021
Finished goods	$	840	$	747
Work in process	595		508
Raw materials	538		510
Materials and supplies	76		81
Total inventories	$	2,049	$	1,846

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The Company’s goodwill consists of the following:

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Gross carrying amount at beginning of period	$	623	$	546	$	22	$	59	$	1,250
Foreign exchange	—		(1)		—		—		(1)
Gross carrying amount at end of period	623		545		22		59		1,249
Accumulated impairment loss at beginning of period	(310)		(374)		—		(59)		(743)
Foreign exchange	—		1		—		—		1
Accumulated impairment loss at end of period	(310)		(373)		—		(59)		(742)
Net carrying value at end of period	$	313	$	172	$	22	$	—	$	507

The Company’s intangible assets consist of the following:

		March 31, 2022						December 31, 2021
	Useful Lives (in Years)	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	$	991	$	(396)	$	595	$	993	$	(374)	$	619
Customer contract	10	8		(7)		1		8		(7)		1
Patents	10 to 17	1		(1)		—		1		(1)		—
Technology rights	10 to 30	133		(63)		70		135		(62)		73
Packaged kits know-how	10	54		(19)		35		54		(18)		36
Catalogs	10	47		(16)		31		47		(15)		32
Licensing agreements	3 to 5	63		(49)		14		64		(47)		17
Land use rights	28 to 46	51		(6)		45		51		(6)		45
		$	1,348	$	(557)	791		$	1,353	$	(530)	823
Indefinite-lived intangible assets:
Trade names and trademarks						231						233
Total						$	1,022					$	1,056

The amortization expense associated with definite-lived intangible assets is as follows:

	Three Months Ended March 31,
	2022		2021
Amortization expense	$	31	$	32

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

	2022		2023		2024		2025		2026		2027 and thereafter		Total
Expected amortization expense	$	92	$	121	$	114	$	114	$	114	$	236	$	791

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Investment in Nonconsolidated Affiliates

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Nonconsolidated Affiliates

6. Investment in Nonconsolidated Affiliates

No significant changes occurred in the Company’s ownership interest in nonconsolidated affiliates since December 31, 2021.

The carrying amount of the Company’s investments in its nonconsolidated affiliates accounted for under the equity method exceeded its share of the underlying net assets by $207 million and $258 million at March 31, 2022 and December 31, 2021.

The following table is a summary of transactions with the Company’s nonconsolidated affiliates:

	Three Months Ended March 31,
	2022		2021
Net sales	$	16	$	20
Purchases	$	107	$	115
Royalty and other income (expense)	$	2	$	4

The following table is a summary of amounts due to and from the Company’s nonconsolidated affiliates:

	March 31, 2022		December 31, 2021
Receivables	$	9	$	10
Payables and accruals	$	82	$	69

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Financial Instruments and Fair Value

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments and Fair Value

7. Financial Instruments and Fair Value

The Company is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices, equity price risk associated with share-based compensation awards, and changes in interest rates, which may result in cash flow risks. For exposures not offset within its operations, the Company may enter into various derivative or other financial instrument transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes. In certain cases, the Company may or may not designate certain derivative instruments as hedges for accounting 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 Exchange Rate Risk

The Company manufactures and sells its products globally. 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 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.

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 concentration of credit risk related to derivative contracts at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

Equity Price Risk

The Company has certain cash-settled share-based incentive compensation awards that are dependent upon the Company’s stock price. The related cash payouts increase as the stock price increases and decrease as the stock price decreases. The Company has entered into certain financial instruments that move in the opposite direction of the cash settlement of these awards. Based on the Company’s current position, these financial instruments mitigate the market risk related to the final settlement of the cash-settled share-based incentive compensation awards. Effective in the third quarter of 2021, investment options based on the Company’s stock price no longer exist under the incentive deferral plan and, at both March 31, 2022 and December 31, 2021, there are no deferred compensation balances correlated to the Company’s stock price. Refer to “Other Financial Instruments” section below for additional details on these liabilities and the related financial instruments used to reduce the Company’s equity price risk.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Asset and Liability Instruments

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

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 and intercompany loans. The Company calculates the fair value of its foreign currency contracts using currency forward rates (level 2), to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. Derivative gains and losses associated with these foreign currency forward contracts are recognized in “Cost of sales (exclusive of depreciation and amortization)” in the condensed consolidated statements of income (loss). The fair value of these derivative instruments at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

The following table summarizes by position the notional amounts for foreign currency forward contracts at March 31, 2022, all of which mature in the next twelve months:

	Notional Amount
Long positions	$	415
Short positions	$	411

Other Financial Instruments

Cash-Settled Share and Index Swap Transactions

The Company has certain employee compensation arrangements, including cash-settled share-based units granted under its long-term incentive plan, that are valued based on the Company’s stock price. The share equivalents outstanding related to cash-settled share-based awards are as follows:

	March 31, 2022	December 31, 2021
Restricted Stock Units (RSUs)	1,224,513	1,451,422
Performance Share Units (PSUs)	4,376,689	2,951,316
	5,601,202	4,402,738

The Company has entered into financial instruments to mitigate the risk associated with both the vested and unvested portions of its cash-settled share-based incentive compensation awards. The number of common share equivalents under these agreements at both March 31, 2022 and December 31, 2021 was 3,100,000.

These financial instruments primarily use the Company’s stock price as an observable input (level 2) in determining fair value. The estimated fair value of these financial instruments is as follows:

	Balance sheet classification	March 31, 2022		December 31, 2021
Other financial instruments in asset positions(a)	Prepayments and other current assets	$	59	$	35

(a) There is a cash premium of $3 million at March 31, 2022 associated with one of these financial instruments, which is included in “Prepayments and other current assets” in the condensed consolidated balance sheets, and none at December 31, 2021.

The gains and losses associated with these other financial instruments are recognized in “Selling, general, and administrative” in the condensed consolidated statements of income (loss).

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. Commodity rate price forward contracts are executed to offset a portion of the exposure to potential change in prices for raw materials. The Company monitors its commodity price risk exposures regularly to maximize the overall effectiveness of its commodity forward contracts.

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 reclassifying adjustments into “Cost of sales (exclusive of depreciation and amortization)” 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 and $34 million at March 31, 2022 and December 31, 2021. Substantially all of the commodity price hedge contracts mature within one year.

The Company calculates the fair value of its commodity contracts using commodity forward rates (level 2), to calculate forward values, and then discounts the forward values. The discount rates for all derivative contracts are based on bank deposit rates. The fair value of these derivative instruments at March 31, 2022 and December 31, 2021 is not considered material to the condensed consolidated financial statements.

Net Investment Hedge — Foreign Currency Borrowings

On March 17, 2021, all of the outstanding foreign currency borrowings designated as net investment hedge were discharged, as a result, there were no outstanding foreign currency denominated borrowings designated as a net investment hedge at December 31, 2021. The Company’s debt instruments are discussed further in Note 8, “Debt and Other Financing Arrangements”.

The following table represents the amount of gain (loss) recognized in accumulated other comprehensive income (loss) before any reclassifications into net income (loss) for derivative and non-derivative instruments designated as hedges:

	Three Months Ended March 31,
	2022		2021
Commodity price hedge contracts designated as cash flow hedges	$	6	$	2
Foreign currency borrowings designated as a net investment hedge	$	—	$	11

The Company estimates approximately $6 million included in accumulated OCI or OCL at March 31, 2022 will be reclassified into net income (loss) within the following twelve months. Refer to Note 13, “Shareholders’ Equity” for further information.

Assets and Liabilities Measured at Fair Value on a Nonrecurring 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. There were no fair value estimates on a nonrecurring basis during the three months ended March 31, 2022 and 2021.

Financial Instruments Not Carried at Fair Value

The estimated fair value of the Company’s outstanding debt is as follows:

		March 31, 2022				December 31, 2021
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	4,956	$	5,018	$	4,998	$	5,060

The fair value of the Company’s public senior notes and private borrowings under its New Credit Facility, as subsequently defined in Note 8, “Debt and Other Financing Arrangements”, is based on observable inputs, and any borrowings on the revolving credit facility approximate fair value. The Company also had $61 million and $77 million at March 31, 2022 and December 31, 2021 in other debt whose carrying value approximates fair value, which consists primarily of foreign debt with maturities of one year or less.

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Debt and Other Financing Arrangements

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt and Other Financing Arrangements

8. Debt and Other Financing Arrangements

Long-Term Debt

A summary of the Company’s long-term debt obligations is set forth in the following table:

	March 31, 2022				December 31, 2021
	Principal		Carrying Amount (a)		Principal		Carrying Amount (a)
Credit Facilities
Revolver Borrowings
Due 2023	$	—	$	—	$	—	$	—
Term Loans
LIBOR plus 2.00% Term Loan A due 2019 through 2023(b)	1,360		1,355		1,403		1,396
LIBOR plus 3.00% Term Loan B due 2019 through 2025	1,645		1,604		1,649		1,606
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		223		225		223
$500 million of 5.000% Senior Notes due 2026	500		496		500		496
Senior Secured Notes
$500 million of 7.875% Senior Secured Notes due 2029	500		490		500		490
$800 million of 5.125% Senior Secured Notes due 2029	800		788		800		787
Other debt, primarily foreign instruments	27		27		26		26
			4,983				5,024
Less - maturities classified as current			7				6
Total long-term debt			$	4,976			$	5,018

(a)Carrying amount is net of unamortized debt issuance costs and debt discounts of $74 million and $79 million at March 31, 2022 and December 31, 2021.

(b)The interest rate on Term Loan A at December 31, 2021 was LIBOR plus 1.75%.

The Company has a senior credit facility under the credit agreement dated October 1, 2018 (as amended, restated, supplemented or otherwise modified, the “New Credit Facility”) that 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”). 

Short-Term Debt

The Company’s short-term debt consists of the following:

	March 31, 2022		December 31, 2021
Maturities classified as current	$	7	$	6
Short-term borrowings(a)	34		51
Total short-term debt	$	41	$	57

(a)Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements.

Credit Facilities

Financing Arrangements

The table below shows the Company’s borrowing capacity on committed credit facilities at March 31, 2022 (in billions):

	March 31, 2022
	Term	Available(b)
Tenneco Inc. revolving credit facility(a)	2023	$	1.4
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2022 - 2028	—
		$	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)At March 31, 2022, the Company had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under the revolving credit facility. The Company also had $68 million of outstanding letters of credit under uncommitted facilities at March 31, 2022.

At March 31, 2022, the Company had liquidity of $2.1 billion comprised of $641 million of cash and $1.4 billion undrawn on its revolving credit facility. The Company had no outstanding borrowings on its revolving credit facility at March 31, 2022.

During the fourth quarter of 2021, the Company issued a $42 million letter of credit under its revolving credit facility and such letter of credit is included in the $69 million of total outstanding letters of credit at March 31, 2022, which reduces the available borrowings under its revolving credit facility. The letter of credit supports a 1.7 billion Mexican peso (approximately $85 million using exchange rates at March 31, 2022) surety bond issued to the Mexican tax authority. The surety bond is required in order for the Company to enter into the judicial process to appeal a tax assessment and covers the amount of the assessment plus interest. The Company does not believe it is probable it will have to pay the assessment or related interest. The Company also received a second assessment during the fourth quarter of 2021 from the Mexican tax authority of 0.6 billion Mexican peso (approximately $29 million using the exchange rate at March 31, 2022) for a separate matter, which has not required the issuance of a surety bond at this time. The Company does not believe it is probable it will have to pay this second assessment or related interest.

At March 31, 2022 and December 31, 2021, the unamortized debt issuance costs related to the revolver of $9 million and $11 million are included in “Other assets” in the condensed consolidated balance sheets.

Credit Facility

New Credit Facility — Interest Rates

At March 31, 2022, the interest rate on borrowings under the revolving credit facility and the Term Loan A facility was LIBOR plus 2.00% and will remain at LIBOR plus 2.00% for each relevant period for which the Company’s consolidated net leverage ratio (as defined in the New Credit Facility) is less than 4.50 to 1 and greater than or equal to 3.00 to 1. The interest rate on borrowings under the revolving credit facility and the Term Loan A facility are subject to step downs in accordance with the credit agreement.

The New Credit Facility prescribes for an alternative method of determining interest rates in the event LIBOR is not available.

New Credit Facility — Other Terms and Conditions

The third amendment dated May 5, 2020 (“Third Amendment”) of the Company’s New Credit Facility provided relief from the financial maintenance covenants for the revolving credit facility and Term Loan A facility subject to the non-occurrence of certain covenant reset triggers as more fully described in its 2021 Form 10-K. There has been no covenant reset trigger, or covenant reset certificate delivered. Accordingly, the financial ratio required at March 31, 2022 under the New Credit Facility was changed to a consolidated net leverage ratio from a senior secured net leverage ratio at December 31, 2021.

Further information on interest rates, fees, and other terms and conditions of the New Credit Facility is included in the Company’s 2021 Form 10-K.

At March 31, 2022, the Company was in compliance with all the financial covenants of the New Credit Facility.

Senior Notes

Further information on the terms and conditions of the Senior Unsecured Notes and Senior Secured Notes is included in the Company’s 2021 Form 10-K.

At March 31, 2022, the Company was in compliance with all of its financial covenants under the indentures governing the Senior Unsecured Notes and Senior Secured Notes.

On March 3, 2021, the Company provided notice of its intention to redeem all of the outstanding 5.000% euro denominated senior secured notes due July 15, 2024 and all of the outstanding floating rate euro denominated senior secured notes due April 15, 2024 (collectively, the “2024 Secured Notes”). On March 17, 2021, the Company using the net proceeds of the offering of 5.125% Senior Secured Notes due April 15, 2029, together with cash on hand, satisfied and discharged each of the indentures governing the 2024 Secured Notes in accordance with their terms. As a result, the Company recorded a gain on extinguishment of debt of $8 million for the three months ended March 31, 2021.

Other Debt

Other debt consists primarily of subsidiary debt and finance lease obligations.

Factoring Arrangements

At March 31, 2022 and December 31, 2021, the amount of accounts receivable outstanding and derecognized for factoring arrangements was $1.1 billion and $1.0 billion, of which $0.6 billion and $0.5 billion related to accounts receivable where the Company has continuing involvement. In addition, the deferred purchase price receivable was $68 million and $51 million at March 31, 2022 and December 31, 2021.

For the three months ended March 31, 2022 and 2021, proceeds from the factoring of accounts receivable qualifying as sales were $1.5 billion and $1.3 billion, of which $1.2 billion and $1.1 billion were received on accounts receivable where the Company had continuing involvement.

For the three months ended March 31, 2022 and 2021, the Company’s financing charges associated with the factoring of receivables, which are included in “Interest expense” in the condensed consolidated statements of income (loss), were $6 million and $4 million.

If the Company were not able to factor receivables under 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, 2022

Retirement Benefits [Abstract]

Pension Plans, Postretirement and Other Employee Benefits

9. 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 costs (credits) are as follows:

	Three Months Ended March 31,
	Pension Benefits								Other Postretirement Benefits
	2022				2021
	U.S.		Non-U.S.		U.S.		Non-U.S.		2022		2021
Service cost	$	—	$	7	$	—	$	7	$	—	$	—
Interest cost	9		5		8		4		1		1
Expected return on plan assets	(14)		(4)		(16)		(4)		—		—
Net amortization:
Actuarial loss	2		1		3		2		—		1
Prior service cost (credit)	—		—		—		—		(3)		(2)
Net pension and postretirement costs (credits)	$	(3)	$	9	$	(5)	$	9	$	(2)	$	—

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

10. 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 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 considers both positive and negative evidence and 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, reversals of existing taxable temporary differences, and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified.

For the three months ended March 31, 2022, the Company recorded income tax expense of $30 million on income from continuing operations before income taxes of $11 million. This compares to an income tax expense of $47 million on income from continuing operations before income taxes of $134 million in the three months ended March 31, 2021.

Income tax expense for the three months ended March 31, 2022 differs from the U.S. statutory rate due primarily to pre-tax income that is taxed at rates higher than the U.S. statutory rate, pre-tax losses for which no tax benefit is recognized, and a $7 million non-cash benefit related to the release of a valuation allowance.

Income tax expense for the three months ended March 31, 2021 differs from the U.S. statutory rate due primarily to pre-tax income that is taxed at rates higher than the U.S. statutory rate and pre-tax losses for which no tax benefit is recognized.

The Company believes it is reasonably possible up to $43 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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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. 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 that 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 actively seeking to resolve these actual and potential statutory, regulatory, and contractual obligations.

The Company expenses or capitalizes, as appropriate, expenditures for ongoing compliance with environmental regulations. At March 31, 2022, 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’s estimated share of environmental remediation costs for all these sites is recognized in the condensed consolidated balance sheets as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities	$	8	$	8
Deferred credits and other liabilities	23		23
	$	31	$	31

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.

At March 31, 2022 and December 31, 2021, the Company has indemnifications in place on certain of these environmental reserves, which is not considered material to the condensed consolidated financial statements.

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 approximately 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. 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 annual 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, advertising 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, the Company does not expect the legal proceedings, claims or investigations currently pending against it will have any material adverse effect on its annual consolidated financial position, results of operations or liquidity.

Asset Retirement Obligations

The Company’s primary asset retirement obligation (“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’s ARO liabilities in the condensed consolidated balance sheets are as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities(a)	$	12	$	10
Deferred credits and other liabilities	4		4
	$	16	$	14

(a) Includes liabilities held for sale for $8 million and $9 million at March 31, 2022 and December 31, 2021. Refer to Note 2, “Basis of Presentation”, for additional information on assets and liabilities held for sale.

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.

The following represents the changes in the Company’s warranty accrual accounts:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	69	$	62
Accruals and revisions to estimates	14		14
Settlements	(12)		(8)
Foreign currency	—		(1)
Balance at end of period	$	71	$	67

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Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

12. Share-Based Compensation

Share-based compensation expense is included in “Selling, general, and administrative” in the condensed consolidated statements of income (loss). Total share-based compensation expense is as follows:

	Three Months Ended March 31,
	2022		2021
Cash-settled share-based compensation expense	$	20	$	4
Share-settled share-based compensation expense	6		5
	$	26	$	9

Cash-Settled Awards

The Company grants restricted stock units (“RSUs”) and performance share units (“PSUs”) 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 the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes. The PSUs have the potential to pay out between zero and 200%, based on performance target achievement.

The following table reflects the number of cash-settled share-based units outstanding:

	March 31, 2022	December 31, 2021
RSUs	1,224,513	1,451,422
PSUs	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the cash-settled share-based liabilities:

	March 31, 2022		December 31, 2021
Cash-settled share-based RSU liability	$	9	$	6
Cash-settled share-based PSU liability	23		10
	$	32	$	16

At March 31, 2022, $66 million in unrecognized costs on the cash-settled awards is expected to be recognized over a weighted average period of approximately two years.

Share-Settled Awards

The Company grants RSUs and PSUs to certain key employees that are payable in common stock. These awards are settled in shares upon vesting, and valued at the grant date fair value with compensation expense being recognized in proportion to the completed requisite period up until the date of settlement. Additionally, compensation expense for PSUs is recognized ratably over the requisite service period if it is probable the performance target related to the PSUs will be achieved and subsequently adjusted if this probability assessment changes.

The following table reflects the changes in share-settled RSUs and share-settled PSUs for the three months ended March 31, 2022:

	Share-Settled RSUs			Share-Settled PSUs
	Units	Weighted Avg. Grant Date Fair Value		Units	Weighted Avg. Grant Date Fair Value
Nonvested balance at beginning of period	3,117,058	$	13.94	328,296	$	24.72
Granted	2,501,847	10.52		—	—
Vested	(1,184,081)	18.46		(276,316)	24.72
Forfeited	(52,428)	15.07		(51,980)	24.72
Nonvested balance at end of period	4,382,396	$	10.41	—	$	—

At March 31, 2022, $39 million in unrecognized costs on the share-settled awards is expected to be recognized over a weighted average period of approximately two years.

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Shareholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Shareholders' Equity

13. Shareholders’ Equity

Common Stock

Common Stock Outstanding

The Company has authorized 175,000,000 shares ($0.01 par value) of Class A Voting Common Stock (“Class A Common Stock”) at March 31, 2022 and December 31, 2021. The Company has authorized 25,000,000 shares ($0.01 par value) of Class B Non-Voting Common Stock (“Class B Common Stock”) at March 31, 2022 and December 31, 2021.

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

	Class A Common Stock		Class B Common Stock
	Three Months Ended March 31,		Three Months Ended March 31,
	2022	2021	2022	2021
Shares issued at beginning of period	96,713,188	75,714,163	—	20,308,454
Issued pursuant to benefit plans	1,611,497	786,575	—	—
Withheld for taxes pursuant to benefit plans	(357,772)	(247,508)	—	—
Class B common stock converted to Class A common stock	—	17,232,791	—	(17,232,791)
Shares issued at end of period	97,966,913	93,486,021	—	3,075,663
Treasury stock	14,592,888	14,592,888	—	—
Total shares outstanding	83,374,025	78,893,133	—	3,075,663

Class B Common Stock Conversion

During the first quarter of 2021, Icahn Enterprises L.P. (“IEP”) and its affiliates converted 17,232,791 shares of the Company’s Class B Common Stock into 17,232,791 shares of Class A Common Stock. During the second quarter of 2021, IEP and its affiliates converted the remaining 3,075,663 shares of the Company’s Class B Common Stock outstanding at March 31, 2021 into 3,075,663 shares of Class A Common Stock.

Preferred Stock

The Company had 50,000,000 shares of preferred stock ($0.01 par value) authorized at March 31, 2022 and December 31, 2021. 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:

	Three Months Ended March 31,
	2022		2021
Foreign currency translation adjustments:
Balance at beginning of period	$	(471)	$	(395)
Other comprehensive income (loss) before reclassifications adjustments	—		(46)
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		—
Balance at end of period	(471)		(441)
Defined benefit plans:
Balance at beginning of period	(126)		(353)
Other comprehensive income (loss) before reclassifications	—		4
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		(1)
Balance at end of period	(126)		(350)
Cash flow hedges:
Balance at beginning of period	2		4
Other comprehensive income (loss) before reclassifications	6		2
Reclassification from other comprehensive income (loss)	(2)		(4)
Income tax benefit (provision)	—		—
Balance at end of period	6		2
Accumulated other comprehensive loss at end of period	$	(591)	$	(789)
Other comprehensive income (loss) attributable to noncontrolling interests, net of tax	$	(3)	$	(6)

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Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

14. Segment Information

Tenneco consists of four operating segments: Motorparts, Performance Solutions, Clean Air, and Powertrain. 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 (“CODM”) in allocating resources and assessing performance.

EBITDA including noncontrolling interests should not be considered a substitute for results prepared in accordance with U.S. 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 U.S. GAAP. EBITDA including noncontrolling interests, as determined and measured by the Company, should not be compared to similarly titled measures reported by other companies.

Segment results are as follows:

	Reportable Segments
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total		Reclass & Elims		Total
Three Months Ended March 31, 2022
Revenues from external customers	$	722	$	793	$	2,103	$	1,031	$	4,649	$	—	$	4,649
Intersegment revenues	$	11	$	22	$	5	$	46	$	84	$	(84)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	4	$	(1)	$	—	$	9	$	12	$	—	$	12
Three Months Ended March 31, 2021
Revenues from external customers	$	719	$	787	$	2,124	$	1,101	$	4,731	$	—	$	4,731
Intersegment revenues	$	9	$	26	$	6	$	47	$	88	$	(88)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	3	$	1	$	—	$	18	$	22	$	—	$	22

Segment EBITDA including noncontrolling interests and the reconciliation to earnings (loss) before interest expense, income taxes, and noncontrolling interests are as follows:

	Three Months Ended March 31,
	2022		2021
EBITDA including noncontrolling interests by segment:
Motorparts	$	86	$	102
Performance Solutions	15		43
Clean Air	106		149
Powertrain	66		115
Total reportable segments	273		409
Corporate	(50)		(50)
Depreciation and amortization	(146)		(155)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204
Interest expense	(66)		(70)
Income tax (expense) benefit	(30)		(47)
Net income (loss)	$	(19)	$	87

Disaggregated Revenue

Original Equipment

Value-Added Sales

OE revenue is generated from providing OE manufacturers and servicers with products for automotive, commercial truck, off-highway, and industrial applications. Supply relationships typically extend over the life of the related vehicle, subject to interim design and technical specification revisions, and do not require the customer to purchase a minimum quantity.

Substrate/Passthrough Sales

Generally, in connection with the sale of exhaust systems to certain OE manufacturers, the Company purchases catalytic converters and diesel particulate filters or components thereof including precious metals (“substrates”) on behalf of its customers which are used in the assembled system. These substrates are included in inventory and are “passed through” to the customer at cost, plus a small margin. Since the Company takes title to the substrate inventory and has responsibility for both the delivery and quality of the finished product including the substrates, the revenues and related expenses are recorded at gross amounts.

Aftermarket

Aftermarket revenue is generated from providing products for the global vehicle aftermarket to a wide range of warehouse distributors, retail parts stores, and mass merchants that distribute these products to customers ranging from professional service providers to “do-it-yourself” consumers.

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	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
OE - Substrate	$	—	$	—	$	1,090	$	—	$	1,090
OE - Value add	—		771		1,013		1,031		2,815
Aftermarket	722		22		—		—		744
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
OE - Substrate	$	—	$	—	$	1,088	$	—	$	1,088
OE - Value add	—		768		1,036		1,101		2,905
Aftermarket	719		19		—		—		738
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

	Reportable Segments
By Geography	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
North America	$	444	$	250	$	867	$	334	$	1,895
Europe, Middle East, Africa and South America	223		333		662		523		1,741
Asia Pacific	55		210		574		174		1,013
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
North America	$	454	$	240	$	851	$	328	$	1,873
Europe, Middle East, Africa and South America	212		355		682		563		1,812
Asia Pacific	53		192		591		210		1,046
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

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Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

15. Related Party Transactions

IEP no longer owns 5% or more of the Company’s Class A Common Stock. During the second quarter of 2021, IEP and its subsidiaries, including Icahn Automotive Group LLC, were no longer considered related parties of the Company. The Company’s net sales with Icahn Automotive Group LLC, which represent net sales with IEH Auto Parts LLC and Pep Boys—Manny, Moe & Jack, were $31 million for the three months ended March 31, 2021. The Company also had royalty and other income (expense) with Icahn Automotive Group LLC and PSC Metals of $2 million for the three months ended March 31, 2021.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation — Interim Financial Statements

Basis of Presentation — Interim Financial StatementsCertain 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, 2021, which was filed with the Securities and Exchange Commission on February 24, 2022 (the “2021 Form 10-K”). Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

Redeemable noncontrolling interests

Redeemable noncontrolling interestsThe Company has noncontrolling interests with redemption features. These redemption features could require the Company to make an offer to purchase the noncontrolling interests in the event of a change in control of Tenneco Inc. or certain of its subsidiaries or the passage of time.

Earnings (loss) Per Share

Earnings (loss) per shareBasic 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.

Assets Held for Sale and Divestitures

Assets Held for Sale and Divestitures

At March 31, 2022 and December 31, 2021, the Company had $14 million and $22 million of assets held for sale, which primarily consists of land and buildings, and non-core machinery and equipment across multiple segments that are expected to be sold in the next twelve months, as well as $8 million and $9 million in related environmental and asset retirement obligation liabilities. The Company recognized $2 million of impairment charges on assets as held for sale during the three months ended March 31, 2022.

In the first quarter of 2022, the Company closed on the sale of a non-core business for cash proceeds of $3 million and recognized a loss on the sale of $2 million. The Company received $1 million of the purchase price in the first quarter of 2022, with the remaining $2 million expected to be received through the fourth quarter of 2022.

The assets and liabilities held for sale are recorded in “Prepayments and other current assets” and “Accrued expenses and other current liabilities” in the consolidated balance sheets at March 31, 2022 and December 31, 2021.

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Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Redeemable Noncontrolling Interests

The following is a rollforward of activities in the Company’s redeemable noncontrolling interests:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	91	$	78
Net income (loss) attributable to redeemable noncontrolling interests	4		7
Other comprehensive (loss) income	(2)		(3)
Redemption value measurement adjustments	8		5
Dividends declared to noncontrolling interests	(11)		—
Balance at end of period	$	90	$	87

Schedule of Earnings (Loss) Per Share, Basic and Diluted

Actual weighted average shares outstanding used in calculating earnings (loss) per share were as follows:

	Three Months Ended March 31,
	2022	2021
Weighted average shares of common stock outstanding	83,132,797	81,953,133
Effect of dilutive securities:
RSUs and PSUs	—	570,996
Weighted average shares of common stock outstanding including dilutive securities	83,132,797	82,524,129
Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share	3,919,083	2,075,446

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Restructuring Charges, Net and Asset Impairments (Tables)

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring

Restructuring charges, net and asset impairments by segment are as follows:

Three Months Ended March 31, 2022

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	—	$	1	$	4	$	2	$	2	$	9
Other non-restructuring asset impairments	2		—		—		—		—		2
Impairment of assets held for sale	—		—		—		2		—		2
Total asset impairment charges	2		—		—		2		—		4
Total restructuring charges, net and asset impairments	$	2	$	1	$	4	$	4	$	2	$	13

Three Months Ended March 31, 2021

	Three Months Ended March 31, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	2	$	4	$	9	$	10	$	—	$	25
Total restructuring charges, net and asset impairments	$	2	$	4	$	9	$	10	$	—	$	25

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, 2022						Three Months Ended March 31, 2021
	Employee Costs		Facility Closure and Other Costs		Total		Employee Costs		Facility Closure and Other Costs		Total
Balance at beginning of period	$	63	$	—	$	63	$	99	$	1	$	100
Provisions	10		1		11		31		3		34
Revisions to estimates	(2)		—		(2)		(9)		—		(9)
Payments	(17)		(1)		(18)		(21)		(4)		(25)
Foreign currency	—		—		—		(1)		—		(1)
Balance at end of period	$	54	$	—	$	54	$	99	$	—	$	99

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Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory by major classification was as follows:

	March 31, 2022		December 31, 2021
Finished goods	$	840	$	747
Work in process	595		508
Raw materials	538		510
Materials and supplies	76		81
Total inventories	$	2,049	$	1,846

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The Company’s goodwill consists of the following:

	Three Months Ended March 31, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Gross carrying amount at beginning of period	$	623	$	546	$	22	$	59	$	1,250
Foreign exchange	—		(1)		—		—		(1)
Gross carrying amount at end of period	623		545		22		59		1,249
Accumulated impairment loss at beginning of period	(310)		(374)		—		(59)		(743)
Foreign exchange	—		1		—		—		1
Accumulated impairment loss at end of period	(310)		(373)		—		(59)		(742)
Net carrying value at end of period	$	313	$	172	$	22	$	—	$	507

Schedule of Indefinite-Lived Intangible Assets

The Company’s intangible assets consist of the following:

		March 31, 2022						December 31, 2021
	Useful Lives (in Years)	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	$	991	$	(396)	$	595	$	993	$	(374)	$	619
Customer contract	10	8		(7)		1		8		(7)		1
Patents	10 to 17	1		(1)		—		1		(1)		—
Technology rights	10 to 30	133		(63)		70		135		(62)		73
Packaged kits know-how	10	54		(19)		35		54		(18)		36
Catalogs	10	47		(16)		31		47		(15)		32
Licensing agreements	3 to 5	63		(49)		14		64		(47)		17
Land use rights	28 to 46	51		(6)		45		51		(6)		45
		$	1,348	$	(557)	791		$	1,353	$	(530)	823
Indefinite-lived intangible assets:
Trade names and trademarks						231						233
Total						$	1,022					$	1,056

Schedule of Finite-Lived Intangible Assets

The Company’s intangible assets consist of the following:

		March 31, 2022						December 31, 2021
	Useful Lives (in Years)	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	$	991	$	(396)	$	595	$	993	$	(374)	$	619
Customer contract	10	8		(7)		1		8		(7)		1
Patents	10 to 17	1		(1)		—		1		(1)		—
Technology rights	10 to 30	133		(63)		70		135		(62)		73
Packaged kits know-how	10	54		(19)		35		54		(18)		36
Catalogs	10	47		(16)		31		47		(15)		32
Licensing agreements	3 to 5	63		(49)		14		64		(47)		17
Land use rights	28 to 46	51		(6)		45		51		(6)		45
		$	1,348	$	(557)	791		$	1,353	$	(530)	823
Indefinite-lived intangible assets:
Trade names and trademarks						231						233
Total						$	1,022					$	1,056

Finite-lived Intangible Assets Amortization Expense

The amortization expense associated with definite-lived intangible assets is as follows:

	Three Months Ended March 31,
	2022		2021
Amortization expense	$	31	$	32

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

	2022		2023		2024		2025		2026		2027 and thereafter		Total
Expected amortization expense	$	92	$	121	$	114	$	114	$	114	$	236	$	791

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Investment in Nonconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following table is a summary of transactions with the Company’s nonconsolidated affiliates:

	Three Months Ended March 31,
	2022		2021
Net sales	$	16	$	20
Purchases	$	107	$	115
Royalty and other income (expense)	$	2	$	4

The following table is a summary of amounts due to and from the Company’s nonconsolidated affiliates:

	March 31, 2022		December 31, 2021
Receivables	$	9	$	10
Payables and accruals	$	82	$	69

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Financial Instruments and Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

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 at March 31, 2022, all of which mature in the next twelve months:

	Notional Amount
Long positions	$	415
Short positions	$	411

Cash-Settled Awards

The share equivalents outstanding related to cash-settled share-based awards are as follows:

	March 31, 2022	December 31, 2021
Restricted Stock Units (RSUs)	1,224,513	1,451,422
Performance Share Units (PSUs)	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the number of cash-settled share-based units outstanding:

	March 31, 2022	December 31, 2021
RSUs	1,224,513	1,451,422
PSUs	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the cash-settled share-based liabilities:

	March 31, 2022		December 31, 2021
Cash-settled share-based RSU liability	$	9	$	6
Cash-settled share-based PSU liability	23		10
	$	32	$	16

Carrying and Estimated Fair Value

The estimated fair value of these financial instruments is as follows:

	Balance sheet classification	March 31, 2022		December 31, 2021
Other financial instruments in asset positions(a)	Prepayments and other current assets	$	59	$	35

(a) There is a cash premium of $3 million at March 31, 2022 associated with one of these financial instruments, which is included in “Prepayments and other current assets” in the condensed consolidated balance sheets, and none at December 31, 2021.

Schedule of Derivative Instruments

The following table represents the amount of gain (loss) recognized in accumulated other comprehensive income (loss) before any reclassifications into net income (loss) for derivative and non-derivative instruments designated as hedges:

	Three Months Ended March 31,
	2022		2021
Commodity price hedge contracts designated as cash flow hedges	$	6	$	2
Foreign currency borrowings designated as a net investment hedge	$	—	$	11

Carrying and Estimated Fair Value of Debt Instruments

The estimated fair value of the Company’s outstanding debt is as follows:

		March 31, 2022				December 31, 2021
	Fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt (including current maturities):
Term loans and senior notes	Level 2	$	4,956	$	5,018	$	4,998	$	5,060

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Debt and Other Financing Arrangements (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Summary of Long-term Debt Obligations

A summary of the Company’s long-term debt obligations is set forth in the following table:

	March 31, 2022				December 31, 2021
	Principal		Carrying Amount (a)		Principal		Carrying Amount (a)
Credit Facilities
Revolver Borrowings
Due 2023	$	—	$	—	$	—	$	—
Term Loans
LIBOR plus 2.00% Term Loan A due 2019 through 2023(b)	1,360		1,355		1,403		1,396
LIBOR plus 3.00% Term Loan B due 2019 through 2025	1,645		1,604		1,649		1,606
Senior Unsecured Notes
$225 million of 5.375% Senior Notes due 2024	225		223		225		223
$500 million of 5.000% Senior Notes due 2026	500		496		500		496
Senior Secured Notes
$500 million of 7.875% Senior Secured Notes due 2029	500		490		500		490
$800 million of 5.125% Senior Secured Notes due 2029	800		788		800		787
Other debt, primarily foreign instruments	27		27		26		26
			4,983				5,024
Less - maturities classified as current			7				6
Total long-term debt			$	4,976			$	5,018

(a)Carrying amount is net of unamortized debt issuance costs and debt discounts of $74 million and $79 million at March 31, 2022 and December 31, 2021.

(b)The interest rate on Term Loan A at December 31, 2021 was LIBOR plus 1.75%.

Schedule of Short-term Debt

The Company’s short-term debt consists of the following:

	March 31, 2022		December 31, 2021
Maturities classified as current	$	7	$	6
Short-term borrowings(a)	34		51
Total short-term debt	$	41	$	57

(a)Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements.

Financing Arrangements

Financing Arrangements

The table below shows the Company’s borrowing capacity on committed credit facilities at March 31, 2022 (in billions):

	March 31, 2022
	Term	Available(b)
Tenneco Inc. revolving credit facility(a)	2023	$	1.4
Tenneco Inc. Term Loan A	2023	—
Tenneco Inc. Term Loan B	2025	—
Subsidiaries’ credit agreements	2022 - 2028	—
		$	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)At March 31, 2022, the Company had $69 million of outstanding letters of credit under the revolving credit facility, which reduces the available borrowings under the revolving credit facility. The Company also had $68 million of outstanding letters of credit under uncommitted facilities at March 31, 2022.

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Pension Plans, Postretirement and Other Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

Components of net periodic benefit costs (credits) are as follows:

	Three Months Ended March 31,
	Pension Benefits								Other Postretirement Benefits
	2022				2021
	U.S.		Non-U.S.		U.S.		Non-U.S.		2022		2021
Service cost	$	—	$	7	$	—	$	7	$	—	$	—
Interest cost	9		5		8		4		1		1
Expected return on plan assets	(14)		(4)		(16)		(4)		—		—
Net amortization:
Actuarial loss	2		1		3		2		—		1
Prior service cost (credit)	—		—		—		—		(3)		(2)
Net pension and postretirement costs (credits)	$	(3)	$	9	$	(5)	$	9	$	(2)	$	—

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Environmental Loss Contingencies

The Company’s estimated share of environmental remediation costs for all these sites is recognized in the condensed consolidated balance sheets as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities	$	8	$	8
Deferred credits and other liabilities	23		23
	$	31	$	31

Schedule of Asset Retirement Obligations

The Company’s ARO liabilities in the condensed consolidated balance sheets are as follows:

	March 31, 2022		December 31, 2021
Accrued expenses and other current liabilities(a)	$	12	$	10
Deferred credits and other liabilities	4		4
	$	16	$	14

(a) Includes liabilities held for sale for $8 million and $9 million at March 31, 2022 and December 31, 2021. Refer to Note 2, “Basis of Presentation”, for additional information on assets and liabilities held for sale.

Warranty Accrual Table

The following represents the changes in the Company’s warranty accrual accounts:

	Three Months Ended March 31,
	2022		2021
Balance at beginning of period	$	69	$	62
Accruals and revisions to estimates	14		14
Settlements	(12)		(8)
Foreign currency	—		(1)
Balance at end of period	$	71	$	67

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-based Compensation

Total share-based compensation expense is as follows:

	Three Months Ended March 31,
	2022		2021
Cash-settled share-based compensation expense	$	20	$	4
Share-settled share-based compensation expense	6		5
	$	26	$	9

Cash-Settled Awards

The share equivalents outstanding related to cash-settled share-based awards are as follows:

	March 31, 2022	December 31, 2021
Restricted Stock Units (RSUs)	1,224,513	1,451,422
Performance Share Units (PSUs)	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the number of cash-settled share-based units outstanding:

	March 31, 2022	December 31, 2021
RSUs	1,224,513	1,451,422
PSUs	4,376,689	2,951,316
	5,601,202	4,402,738

The following table reflects the cash-settled share-based liabilities:

	March 31, 2022		December 31, 2021
Cash-settled share-based RSU liability	$	9	$	6
Cash-settled share-based PSU liability	23		10
	$	32	$	16

Unvested Restricted Shares

The following table reflects the changes in share-settled RSUs and share-settled PSUs for the three months ended March 31, 2022:

	Share-Settled RSUs			Share-Settled PSUs
	Units	Weighted Avg. Grant Date Fair Value		Units	Weighted Avg. Grant Date Fair Value
Nonvested balance at beginning of period	3,117,058	$	13.94	328,296	$	24.72
Granted	2,501,847	10.52		—	—
Vested	(1,184,081)	18.46		(276,316)	24.72
Forfeited	(52,428)	15.07		(51,980)	24.72
Nonvested balance at end of period	4,382,396	$	10.41	—	$	—

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

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 Ended March 31,		Three Months Ended March 31,
	2022	2021	2022	2021
Shares issued at beginning of period	96,713,188	75,714,163	—	20,308,454
Issued pursuant to benefit plans	1,611,497	786,575	—	—
Withheld for taxes pursuant to benefit plans	(357,772)	(247,508)	—	—
Class B common stock converted to Class A common stock	—	17,232,791	—	(17,232,791)
Shares issued at end of period	97,966,913	93,486,021	—	3,075,663
Treasury stock	14,592,888	14,592,888	—	—
Total shares outstanding	83,374,025	78,893,133	—	3,075,663

Schedule of AOCI

The following represents the Company’s changes in accumulated other comprehensive income (loss) by component:

	Three Months Ended March 31,
	2022		2021
Foreign currency translation adjustments:
Balance at beginning of period	$	(471)	$	(395)
Other comprehensive income (loss) before reclassifications adjustments	—		(46)
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		—
Balance at end of period	(471)		(441)
Defined benefit plans:
Balance at beginning of period	(126)		(353)
Other comprehensive income (loss) before reclassifications	—		4
Reclassification from other comprehensive income (loss)	—		—
Income tax benefit (provision)	—		(1)
Balance at end of period	(126)		(350)
Cash flow hedges:
Balance at beginning of period	2		4
Other comprehensive income (loss) before reclassifications	6		2
Reclassification from other comprehensive income (loss)	(2)		(4)
Income tax benefit (provision)	—		—
Balance at end of period	6		2
Accumulated other comprehensive loss at end of period	$	(591)	$	(789)
Other comprehensive income (loss) attributable to noncontrolling interests, net of tax	$	(3)	$	(6)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment results are as follows:

	Reportable Segments
	Motorparts		Performance Solutions		Clean Air		Powertrain		Total		Reclass & Elims		Total
Three Months Ended March 31, 2022
Revenues from external customers	$	722	$	793	$	2,103	$	1,031	$	4,649	$	—	$	4,649
Intersegment revenues	$	11	$	22	$	5	$	46	$	84	$	(84)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	4	$	(1)	$	—	$	9	$	12	$	—	$	12
Three Months Ended March 31, 2021
Revenues from external customers	$	719	$	787	$	2,124	$	1,101	$	4,731	$	—	$	4,731
Intersegment revenues	$	9	$	26	$	6	$	47	$	88	$	(88)	$	—
Equity in earnings (losses) of nonconsolidated affiliates, net of tax	$	3	$	1	$	—	$	18	$	22	$	—	$	22

Segment EBITDA including noncontrolling interests and the reconciliation to earnings (loss) before interest expense, income taxes, and noncontrolling interests are as follows:

	Three Months Ended March 31,
	2022		2021
EBITDA including noncontrolling interests by segment:
Motorparts	$	86	$	102
Performance Solutions	15		43
Clean Air	106		149
Powertrain	66		115
Total reportable segments	273		409
Corporate	(50)		(50)
Depreciation and amortization	(146)		(155)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77		204
Interest expense	(66)		(70)
Income tax (expense) benefit	(30)		(47)
Net income (loss)	$	(19)	$	87

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	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
OE - Substrate	$	—	$	—	$	1,090	$	—	$	1,090
OE - Value add	—		771		1,013		1,031		2,815
Aftermarket	722		22		—		—		744
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
OE - Substrate	$	—	$	—	$	1,088	$	—	$	1,088
OE - Value add	—		768		1,036		1,101		2,905
Aftermarket	719		19		—		—		738
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

	Reportable Segments
By Geography	Motorparts		Performance Solutions		Clean Air		Powertrain		Total
Three Months Ended March 31, 2022
North America	$	444	$	250	$	867	$	334	$	1,895
Europe, Middle East, Africa and South America	223		333		662		523		1,741
Asia Pacific	55		210		574		174		1,013
Total	$	722	$	793	$	2,103	$	1,031	$	4,649
Three Months Ended March 31, 2021
North America	$	454	$	240	$	851	$	328	$	1,873
Europe, Middle East, Africa and South America	212		355		682		563		1,812
Asia Pacific	53		192		591		210		1,046
Total	$	719	$	787	$	2,124	$	1,101	$	4,731

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Description of Business (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Feb. 22, 2022 USD ($) $ / shares	Mar. 31, 2022 USD ($) Segment
Business Acquisition [Line Items]
Number of operating segments | Segment		4
Merger Agreement
Business Acquisition [Line Items]
Right to receive cash (in dollars per share) | $ / shares	$ 20.00
Merger termination fee	$ 54
Merger termination fee other		$ 108

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Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Redeemable Noncontrolling Interest [Line Items]
Redeemable noncontrolling interest, not currently redeemable	$ 41			$ 50
Redeemable noncontrolling interest, redemption value	49			41
Impairment of assets held for sale	2
Proceeds from sale of assets	5	$ 7
Held-for-sale
Redeemable Noncontrolling Interest [Line Items]
Liabilities held for sale	8			9
Held-for-sale | Land, Buildings, And Non-Core Machinery And Equipment
Redeemable Noncontrolling Interest [Line Items]
Assets held for sale	14			22
Liabilities held for sale	8			$ 9
Held-for-sale | Non Core Business And Related Assets
Redeemable Noncontrolling Interest [Line Items]
Assets held for sale	3
Recognized a loss on the sale	2
Proceeds from sale of assets	$ 1
Held-for-sale | Non Core Business And Related Assets | Forecast
Redeemable Noncontrolling Interest [Line Items]
Proceeds from sale of assets			$ 2
Öhlins Intressenter AB | K Öhlin Holding AB
Redeemable Noncontrolling Interest [Line Items]
Ownership percentage	9.50%

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Basis of Presentation - Redeemable Non Controlling Interest (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Redeemable Noncontrolling Interest [Roll Forward]
Balance at beginning of period	$ 91	$ 78
Net income (loss) attributable to redeemable noncontrolling interests	4	7
Other comprehensive (loss) income	(2)	(3)
Redemption value measurement adjustments	8	5
Dividends declared to noncontrolling interests	(11)	0
Balance at end of period	$ 90	$ 87

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Basis of Presentation - Earnings (Loss) Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average shares of common stock outstanding (in shares)	83,132,797	81,953,133
Weighted average shares of common stock outstanding including dilutive securities (in shares)	83,132,797	82,524,129
Weighted average number of antidilutive stock-based awards excluded from the calculation of diluted earnings per share (in shares)	3,919,083	2,075,446
RSUs and PSUs
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities (in shares)	0	570,996

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Restructuring Charges, Net and Asset Impairments - Incurred Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	$ 9	$ 25
Other non-restructuring asset impairments	2
Impairment of assets held for sale	2
Total asset impairment charges	4
Total restructuring charges, net and asset impairments	13	25
Total Reportable Segments | Motorparts
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	0	2
Other non-restructuring asset impairments	2
Impairment of assets held for sale	0
Total asset impairment charges	2
Total restructuring charges, net and asset impairments	2	2
Total Reportable Segments | Performance Solutions
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	1	4
Other non-restructuring asset impairments	0
Impairment of assets held for sale	0
Total asset impairment charges	0
Total restructuring charges, net and asset impairments	1	4
Total Reportable Segments | Clean Air
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	4	9
Other non-restructuring asset impairments	0
Impairment of assets held for sale	0
Total asset impairment charges	0
Total restructuring charges, net and asset impairments	4	9
Total Reportable Segments | Powertrain
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	2	10
Other non-restructuring asset impairments	0
Impairment of assets held for sale	2
Total asset impairment charges	2
Total restructuring charges, net and asset impairments	4	10
Corporate
Restructuring Cost and Reserve [Line Items]
Severance and other charges, net	2	0
Other non-restructuring asset impairments	0
Impairment of assets held for sale	0
Total asset impairment charges	0
Total restructuring charges, net and asset impairments	$ 2	$ 0

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Restructuring Charges, Net and Asset Impairments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 11	$ 34
Revisions to estimates	(2)	(9)
Employee Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	10	31
Revisions to estimates	(2)	(9)
Employee Costs | Powertrain | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges	23
Project Accelerate | Clean Air
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Project Accelerate | Employee Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3
Cost Reduction Programs | Performance Solutions | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges		4
Cost Reduction Programs | Employee Costs | Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring costs	2
Cost Reduction Programs | Employee Costs | Clean Air
Restructuring Cost and Reserve [Line Items]
Restructuring charges		15
Cost Reduction Programs | Employee Costs | Clean Air | Europe
Restructuring Cost and Reserve [Line Items]
Revisions to estimates		5
Cost Reduction Programs | Employee Costs | Powertrain | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	1
Cost Reduction Programs | Employee Costs | Powertrain | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2
Cost Reduction Programs | Other restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5	17
Plant Consolidations, Relocations And Closures | Motorparts | Operating Segments
Restructuring Cost and Reserve [Line Items]
Impairment of property, plant and equipment	2
Plant Consolidations, Relocations And Closures | Performance Solutions | North America
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1
Plant Consolidations, Relocations And Closures | Clean Air | North America And Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring charges		2
Plant Consolidations, Relocations And Closures | Powertrain | Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1
Plant Consolidations, Relocations And Closures | Powertrain | Europe And North America
Restructuring Cost and Reserve [Line Items]
Restructuring charges		9
Plant Consolidations, Relocations And Closures | Employee Costs | Clean Air | North America And Asia Pacific
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4
Plant Consolidations, Relocations And Closures | Other restructuring
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6	11
Voluntary Termination Program | Powertrain | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring costs	3	2
Voluntary Termination Program | Employee Costs | Powertrain | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges	18
Restructuring costs	$ 36
Supply Chain Rationalization | Motorparts | North America
Restructuring Cost and Reserve [Line Items]
Restructuring charges		2
Distribution Network | Motorparts | North America
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 2

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Restructuring Charges, Net and Asset Impairments - Roll Forward of Restructuring Reserve (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 63	$ 100
Provisions	11	34
Revisions to estimates	(2)	(9)
Payments	(18)	(25)
Foreign currency	0	(1)
Balance at end of period	54	99
Employee Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	63	99
Provisions	10	31
Revisions to estimates	(2)	(9)
Payments	(17)	(21)
Foreign currency	0	(1)
Balance at end of period	54	99
Facility Closure and Other Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0	1
Provisions	1	3
Revisions to estimates	0	0
Payments	(1)	(4)
Foreign currency	0	0
Balance at end of period	$ 0	$ 0

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Inventories- Schedule of Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 840	$ 747
Work in process	595	508
Raw materials	538	510
Materials and supplies	76	81
Total inventories	$ 2,049	$ 1,846

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Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	$ 1,250
Foreign exchange	(1)
Gross carrying amount at end of period	1,249
Accumulated impairment loss, beginning balance	(743)
Foreign exchange	1
Accumulated impairment loss, ending balance	(742)
Net carrying value at end of period	507	$ 507
Motorparts
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	623
Foreign exchange	0
Gross carrying amount at end of period	623
Accumulated impairment loss, beginning balance	(310)
Foreign exchange	0
Accumulated impairment loss, ending balance	(310)
Net carrying value at end of period	313
Performance Solutions
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	546
Foreign exchange	(1)
Gross carrying amount at end of period	545
Accumulated impairment loss, beginning balance	(374)
Foreign exchange	1
Accumulated impairment loss, ending balance	(373)
Net carrying value at end of period	172
Clean Air
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	22
Foreign exchange	0
Gross carrying amount at end of period	22
Accumulated impairment loss, beginning balance	0
Foreign exchange	0
Accumulated impairment loss, ending balance	0
Net carrying value at end of period	22
Powertrain
Goodwill [Roll Forward]
Gross carrying amount at beginning of period	59
Foreign exchange	0
Gross carrying amount at end of period	59
Accumulated impairment loss, beginning balance	(59)
Foreign exchange	0
Accumulated impairment loss, ending balance	(59)
Net carrying value at end of period	$ 0

XML

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 1,348	$ 1,353
Accumulated Amortization	(557)	(530)
Net Carrying Value	791	823
Trade names and trademarks	231	233
Total	$ 1,022	1,056
Customer relationships and platforms
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	10 years
Gross Carrying Value	$ 991	993
Accumulated Amortization	(396)	(374)
Net Carrying Value	$ 595	619
Customer contract
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	10 years
Gross Carrying Value	$ 8	8
Accumulated Amortization	(7)	(7)
Net Carrying Value	1	1
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]
Useful Lives (in Years)	10 years
Patents | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	17 years
Technology rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 133	135
Accumulated Amortization	(63)	(62)
Net Carrying Value	$ 70	73
Technology rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	10 years
Technology rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	30 years
Packaged kits know-how
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	10 years
Gross Carrying Value	$ 54	54
Accumulated Amortization	(19)	(18)
Net Carrying Value	$ 35	36
Catalogs
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	10 years
Gross Carrying Value	$ 47	47
Accumulated Amortization	(16)	(15)
Net Carrying Value	31	32
Licensing agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	63	64
Accumulated Amortization	(49)	(47)
Net Carrying Value	$ 14	17
Licensing agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	3 years
Licensing agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	5 years
Land use rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 51	51
Accumulated Amortization	(6)	(6)
Net Carrying Value	$ 45	$ 45
Land use rights | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	28 years
Land use rights | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Lives (in Years)	46 years

XML

Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 31	$ 32
2022	92
2023	121
2024	114
2025	114
2026	114
2027 and thereafter	236
Net Carrying Value	$ 791		$ 823

XML

Investment in Nonconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Difference between carrying amount and underlying net assets	$ 207	$ 258

XML

Investment in Nonconsolidated Affiliates - Summarized Financial Data (Details) - Equity Method Investment, Nonconsolidated - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Net sales	$ 16	$ 20
Purchases	107	115
Royalty and other income (expense)	2	$ 4
Receivables	9		$ 10
Payables and accruals	$ 82		$ 69

XML

Financial Instruments and Fair Value - Summarization for Foreign Currency Forward Purchase and Sale Contracts (Details) - Foreign exchange forward $ in Millions	Mar. 31, 2022 USD ($)
Long positions
Derivative [Line Items]
Notional amount	$ 415
Short positions
Derivative [Line Items]
Notional amount	$ 411

XML

Financial Instruments and Fair Value - Cash-Settled Award (Details) - shares	Mar. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	5,601,202	4,402,738
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	1,224,513	1,451,422
Performance Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	4,376,689	2,951,316

XML

Financial Instruments and Fair Value - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Financial Instruments [Line Items]
Long-term debt	$ 4,976,000,000	$ 5,018,000,000
Stockholders' equity, including portion attributable to noncontrolling interest	357,000,000	396,000,000
Cash flow hedges:
Financial Instruments [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	6,000,000	2,000,000	$ 2,000,000	$ 4,000,000
Other debt, primarily foreign instruments
Financial Instruments [Line Items]
Fair value of long term debt	$ 61,000,000	77,000,000
Debt term	1 year
Net investment hedging
Financial Instruments [Line Items]
Long-term debt		$ 0
Swap agreements
Financial Instruments [Line Items]
Notional amount (in shares)	3,100,000	3,100,000
Commodity contract
Financial Instruments [Line Items]
Notional amount	$ 26,000,000	$ 34,000,000
Term of derivative	1 year

XML

Financial Instruments and Fair Value - Estimated Fair Value of Financial Instruments (Details) - Prepayments and other current assets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateral amount	$ 3,000,000	$ 0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other financial instruments in asset positions(a)	$ 59,000,000	$ 35,000,000

XML

Financial Instruments and Fair Value - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Commodity contract | Commodity price hedge contracts designated as cash flow hedges
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion)	$ 6	$ 2
Foreign currency | Foreign currency borrowings designated as a net investment hedge
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion)	$ 0	$ 11

XML

Financial Instruments and Fair Value - Fair Value of Long Term Debt (Details) - Level 2 - Term loans and senior notes - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long term debt	$ 4,956	$ 4,998
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of long term debt	$ 5,018	$ 5,060

XML

Debt and Other Financing Arrangements - Summary of Long-Term Debt Obligations (Details)	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Mar. 17, 2021
Debt Instrument [Line Items]
Carrying amount	$ 4,983,000,000		$ 5,024,000,000
Less - maturities classified as current	7,000,000		6,000,000
Total long-term debt	4,976,000,000		5,018,000,000
Unamortized debt issuance costs	74,000,000		79,000,000
Revolver Borrowings | Due 2023
Debt Instrument [Line Items]
Principal	0		0
Carrying amount	0		0
Term Loans | 1.75% Term Loan A Due 2019 Through 2023
Debt Instrument [Line Items]
Principal	1,360,000,000		1,403,000,000
Carrying amount	$ 1,355,000,000		$ 1,396,000,000
Stated rate	2.00%	2.00%
Term Loans | 1.75% Term Loan A Due 2019 Through 2023 | LIBOR
Debt Instrument [Line Items]
Stated rate			1.75%
Term Loans | 3.00% Term Loan B Due 2019 Through 2025
Debt Instrument [Line Items]
Principal	$ 1,645,000,000		$ 1,649,000,000
Carrying amount	$ 1,604,000,000		1,606,000,000
Stated rate	3.00%	3.00%
Senior Notes | 5.375% Senior Notes due 2024
Debt Instrument [Line Items]
Principal	$ 225,000,000	€ 225,000,000	225,000,000
Carrying amount	$ 223,000,000		223,000,000
Stated rate	5.375%	5.375%
Senior Notes | 5.000% Senior Notes due 2026
Debt Instrument [Line Items]
Principal	$ 500,000,000	€ 500,000,000	500,000,000
Carrying amount	$ 496,000,000		496,000,000
Stated rate	5.00%	5.00%
Senior Notes | 7.875% Senior Secured Notes Due 2029
Debt Instrument [Line Items]
Principal	$ 500,000,000		500,000,000
Carrying amount	$ 490,000,000		490,000,000
Stated rate	7.875%	7.875%
Senior Notes | 5.125% Senior Secured Notes Due 2029
Debt Instrument [Line Items]
Principal	$ 800,000,000		800,000,000
Carrying amount	$ 788,000,000		787,000,000
Stated rate	5.125%	5.125%		5.125%
Other debt, primarily foreign instruments
Debt Instrument [Line Items]
Principal	$ 27,000,000		26,000,000
Carrying amount	$ 27,000,000		$ 26,000,000

XML

Debt and Other Financing Arrangements - Term Loans (Details) $ in Billions	Oct. 01, 2018 USD ($)
Revolver Borrowings
Line of Credit Facility [Line Items]
Borrowing capacity	$ 4.9
Revolving Credit Facility | Revolver Borrowings
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.5
Debt term	5 years
Term Loan A Facility | Term Loans
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.7
Debt term	5 years
Term Loan B Facility | Term Loans
Line of Credit Facility [Line Items]
Borrowing capacity	$ 1.7
Debt term	7 years

XML

Debt and Other Financing Arrangements - Short Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Maturities classified as current	$ 7	$ 6
Short-term borrowings	34	51
Total short-term debt	$ 41	$ 57

XML

Debt and Other Financing Arrangements - Financing Arrangements (Details)	Mar. 31, 2022 USD ($)	Mar. 31, 2022 MXN ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 MXN ($)
Debt Instrument [Line Items]
Available	$ 1,400,000,000
Liquidity	2,100,000,000
Cash	641,000,000
Long-term debt	4,976,000,000		$ 5,018,000,000
Unamortized debt issuance costs	74,000,000		79,000,000
Surety Bond
Debt Instrument [Line Items]
Borrowing capacity	29,000,000			$ 600,000,000
Letters of credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount	69,000,000
Borrowing capacity			42,000,000
Letters of credit | Surety Bond
Debt Instrument [Line Items]
Borrowing capacity	85,000,000	$ 1,700,000,000
Uncommitted Letters of Credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount	68,000,000
Other assets
Debt Instrument [Line Items]
Unamortized debt issuance costs	9,000,000		$ 11,000,000
Tenneco Inc. revolving credit agreement
Debt Instrument [Line Items]
Available	1,400,000,000
Long-term debt	0
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	$ 0

XML

Debt and Other Financing Arrangements - New Credit Facility (Details)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Tenneco Inc. Term Loan A | Term Loans
Line of Credit Facility [Line Items]
Stated rate	2.00%
LIBOR | Tenneco Inc. Term Loan A | Term Loans
Line of Credit Facility [Line Items]
Stated rate		1.75%
Minimum | LIBOR | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Revolving Credit Facility
Line of Credit Facility [Line Items]
Consolidated net leverage ratio	3.00
Maximum | LIBOR | Term Loan A, New Credit Facility, Third Amendment, Scenario 2 | Revolving Credit Facility
Line of Credit Facility [Line Items]
Consolidated net leverage ratio	4.50

XML

Debt and Other Financing Arrangements - Senior Notes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 17, 2021	Mar. 03, 2021
Debt Instrument [Line Items]
Gain on extinguishment of debt	$ 0	$ 8
Senior Notes | 5.000% Euro Fixed Rate Notes due 2024
Debt Instrument [Line Items]
Stated rate				5.00%
Senior Notes | 5.125% Senior Secured Notes Due 2029
Debt Instrument [Line Items]
Stated rate	5.125%		5.125%

XML

Debt and Other Financing Arrangements - Accounts Receivable Securitization (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Accounts receivable outstanding and derecognized	$ 1,100		$ 1,000
Cash proceeds received for assets derecognized, amount	600		500
Deferred purchase price receivable	68		$ 51
Proceeds from factoring qualifying as sales	1,500	$ 1,300
Proceeds from factoring qualifying as draft amount	1,200	1,100
Interest Expense
Debt Instrument [Line Items]
Loss on sale of receivables	$ 6	$ 4

XML

Pension Plans, Postretirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0
Interest cost	1	1
Expected return on plan assets	0	0
Net amortization:
Actuarial loss	0	1
Prior service cost (credit)	(3)	(2)
Net pension and postretirement costs (credits)	(2)	0
U.S. | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0
Interest cost	9	8
Expected return on plan assets	(14)	(16)
Net amortization:
Actuarial loss	2	3
Prior service cost (credit)	0	0
Net pension and postretirement costs (credits)	(3)	(5)
Non-U.S. | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	7	7
Interest cost	5	4
Expected return on plan assets	(4)	(4)
Net amortization:
Actuarial loss	1	2
Prior service cost (credit)	0	0
Net pension and postretirement costs (credits)	$ 9	$ 9

XML

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 30	$ 47
Earnings (loss) before income taxes and noncontrolling interests	11	134
Non-cash charge to adjust the estimated annual tax rate	$ 7
Decrease in UTB that is reasonably possible		$ 43

XML

Commitments and Contingencies - Environmental Matters (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Accrued expenses and other current liabilities	$ 8	$ 8
Deferred credits and other liabilities	23	23
Environmental remediation accrual, discounted basis	$ 31	$ 31

XML

Commitments and Contingencies - Other Legal Proceedings, Claims and Investigations (Details)	3 Months Ended
	Mar. 31, 2022 case
United states
Loss Contingencies [Line Items]
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories	500
Europe
Loss Contingencies [Line Items]
Current docket of active and inactive cases nationwide relating to alleged exposure to asbestos from our product categories	50
Minimum
Loss Contingencies [Line Items]
Warranty term	1 year

XML

Commitments and Contingencies - Asset Retirement Obligations (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Asset retirement obligation	$ 16	$ 14
Held-for-sale
Loss Contingencies [Line Items]
Liabilities held for sale	8	9
Accrued expenses and other current liabilities(a)
Loss Contingencies [Line Items]
Asset retirement obligation	12	10
Deferred credits and other liabilities
Loss Contingencies [Line Items]
Asset retirement obligation	$ 4	$ 4

XML

Commitments and Contingencies - Warranty Accrual (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 69	$ 62
Accruals and revisions to estimates	14	14
Settlements	(12)	(8)
Foreign currency	0	(1)
Balance at end of period	$ 71	$ 67

XML

Share-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	$ 26	$ 9
Cash-settled share-based compensation expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	20	4
Share-Settled awards
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Compensation expense	$ 6	$ 5

XML

Share-Based Compensation - Cash-Settled Awards (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	5,601,202	4,402,738
Share-based compensation liability	$ 32	$ 16
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	1,224,513	1,451,422
Share-based compensation liability	$ 9	$ 6
Performance Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-settled share based units (in shares)	4,376,689	2,951,316
Share-based compensation liability	$ 23	$ 10
Performance Share Units (PSUs) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential pay out, cash-settled award base on performance	0.00%
Performance Share Units (PSUs) | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential pay out, cash-settled award base on performance	200.00%
Cash-settled share-based compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 66
Unrecognized compensation costs, not yet recognized	2 years

XML

Share-Based Compensation - Share Settled Awards (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Share-Settled RSUs
Nonvested Restricted Shares
Unvested, beginning balance (in shares) | shares	3,117,058
Granted (in shares) | shares	2,501,847
Vested (in shares) | shares	(1,184,081)
Forfeited (in shares) | shares	(52,428)
Unvested, ending balance (in shares) | shares	4,382,396
Weighted Avg. Grant Date Fair Value
Unvested, beginning balance (in dollars per share) | $ / shares	$ 13.94
Granted (in dollars per share) | $ / shares	10.52
Vested (in dollars per share) | $ / shares	18.46
Forfeited (in dollars per share) | $ / shares	15.07
Unvested, ending balance (in dollars per share) | $ / shares	$ 10.41
Unrecognized compensation costs | $	$ 39
Unrecognized compensation costs, not yet recognized	2 years
Share-Settled PSUs
Nonvested Restricted Shares
Unvested, beginning balance (in shares) | shares	328,296
Granted (in shares) | shares	0
Vested (in shares) | shares	(276,316)
Forfeited (in shares) | shares	(51,980)
Unvested, ending balance (in shares) | shares	0
Weighted Avg. Grant Date Fair Value
Unvested, beginning balance (in dollars per share) | $ / shares	$ 24.72
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	24.72
Forfeited (in dollars per share) | $ / shares	24.72
Unvested, ending balance (in dollars per share) | $ / shares	$ 0

XML

Shareholders' Equity - Shares Outstanding (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
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
Preferred stock, shares issued (in shares)	0		0
Preferred stock, shares outstanding (in shares)	0		0
Class A
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	175,000,000		175,000,000
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)	96,713,188	75,714,163
Issued pursuant to benefit plans (in shares)	1,611,497	786,575
Withheld for taxes pursuant to benefit plans (in shares)	(357,772)	(247,508)
Class B common stock converted to Class A common stock (in shares)	0	17,232,791
Shares issued at end of period (in shares)	97,966,913	93,486,021
Treasury stock (in shares)	14,592,888	14,592,888
Total shares outstanding (in shares)	83,374,025	78,893,133
Class B
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	25,000,000		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)	0	20,308,454
Issued pursuant to benefit plans (in shares)	0	0
Withheld for taxes pursuant to benefit plans (in shares)	0	0
Class B common stock converted to Class A common stock (in shares)	0	(17,232,791)
Shares issued at end of period (in shares)	0	3,075,663
Treasury stock (in shares)	0	0
Total shares outstanding (in shares)	0	3,075,663

XML

Shareholders' Equity - Share Conversion (Details) - shares	3 Months Ended
	Jun. 30, 2021	Mar. 31, 2021
Class B
Conversion of Stock [Line Items]
Shares converted (in shares)	(3,075,663)	17,232,791
Class A
Conversion of Stock [Line Items]
Shares converted (in shares)	3,075,663	17,232,791

XML

Shareholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	$ 396
Balance at end of period	357
Other comprehensive income (loss) attributable to noncontrolling interests, net of tax	(3)	$ (6)
Accumulated Other Comprehensive Income (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(595)	(744)
Balance at end of period	(591)	(789)
Foreign currency translation adjustments:
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(471)	(395)
Other comprehensive income (loss) before reclassifications adjustments	0	(46)
Reclassification from other comprehensive income (loss)	0	0
Income tax benefit (provision)	0	0
Balance at end of period	(471)	(441)
Defined benefit plans:
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	(126)	(353)
Other comprehensive income (loss) before reclassifications adjustments	0	4
Reclassification from other comprehensive income (loss)	0	0
Income tax benefit (provision)	0	(1)
Balance at end of period	(126)	(350)
Cash flow hedges:
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance at beginning of period	2	4
Other comprehensive income (loss) before reclassifications adjustments	6	2
Reclassification from other comprehensive income (loss)	(2)	(4)
Income tax benefit (provision)	0	0
Balance at end of period	$ 6	$ 2

XML

Segment Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 Segment
Segment Reporting [Abstract]
Number of operating segments	4

XML

Segment Information - Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting [Line Items]
Net sales and operating revenues	$ 4,649	$ 4,731
Equity in earnings of nonconsolidated affiliates, net of tax	12	22
Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	4,649	4,731
Equity in earnings of nonconsolidated affiliates, net of tax	12	22
Motorparts
Segment Reporting [Line Items]
Net sales and operating revenues	722	719
Motorparts | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	722	719
Equity in earnings of nonconsolidated affiliates, net of tax	4	3
Performance Solutions
Segment Reporting [Line Items]
Net sales and operating revenues	793	787
Performance Solutions | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	793	787
Equity in earnings of nonconsolidated affiliates, net of tax	(1)	1
Clean Air
Segment Reporting [Line Items]
Net sales and operating revenues	2,103	2,124
Clean Air | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	2,103	2,124
Equity in earnings of nonconsolidated affiliates, net of tax	0	0
Powertrain
Segment Reporting [Line Items]
Net sales and operating revenues	1,031	1,101
Powertrain | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	1,031	1,101
Equity in earnings of nonconsolidated affiliates, net of tax	9	18
Intersegment Revenues
Segment Reporting [Line Items]
Net sales and operating revenues	0	0
Intersegment Revenues | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	(84)	(88)
Intersegment Revenues | Reclass & Elims
Segment Reporting [Line Items]
Net sales and operating revenues	84	88
Intersegment Revenues | Motorparts | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	(11)	(9)
Intersegment Revenues | Performance Solutions | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	(22)	(26)
Intersegment Revenues | Clean Air | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	(5)	(6)
Intersegment Revenues | Powertrain | Operating Segments
Segment Reporting [Line Items]
Net sales and operating revenues	$ (46)	$ (47)

XML

Segment Information - Segment Adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Depreciation and amortization	$ (146)	$ (155)
Earnings (loss) before interest expense, income taxes, and noncontrolling interests	77	204
Interest expense	(66)	(70)
Income tax (expense) benefit	(30)	(47)
Net income (loss)	(19)	87
Total Reportable Segments
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	273	409
Total Reportable Segments | Motorparts
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	86	102
Total Reportable Segments | Performance Solutions
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	15	43
Total Reportable Segments | Clean Air
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	106	149
Total Reportable Segments | Powertrain
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	66	115
Corporate
Segment Reporting Information [Line Items]
EBITDA including noncontrolling interests	$ (50)	$ (50)

XML

Segment Information - Segment Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	$ 4,649	$ 4,731
Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	722	719
Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	793	787
Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	2,103	2,124
Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,031	1,101
North America
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,895	1,873
North America | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	444	454
North America | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	250	240
North America | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	867	851
North America | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	334	328
Europe, Middle East, Africa and South America
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,741	1,812
Europe, Middle East, Africa and South America | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	223	212
Europe, Middle East, Africa and South America | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	333	355
Europe, Middle East, Africa and South America | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	662	682
Europe, Middle East, Africa and South America | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	523	563
Asia Pacific
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,013	1,046
Asia Pacific | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	55	53
Asia Pacific | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	210	192
Asia Pacific | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	574	591
Asia Pacific | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	174	210
OE - Substrate
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,090	1,088
OE - Substrate | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Substrate | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Substrate | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,090	1,088
OE - Substrate | Powertrain
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	2,815	2,905
OE - Value add | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	0	0
OE - Value add | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	771	768
OE - Value add | Clean Air
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,013	1,036
OE - Value add | Powertrain
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	1,031	1,101
Aftermarket
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	744	738
Aftermarket | Motorparts
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	722	719
Aftermarket | Performance Solutions
Disaggregation of Revenue [Line Items]
Net sales and operating revenues	22	19
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

XML

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Jun. 30, 2021
Tenneco | Class A
Related Party Transaction [Line Items]
Ownership percentage		5.00%
Icahn Enterprises L.P.
Related Party Transaction [Line Items]
Net sales	$ 31
Royalty and other income (expense)	2
PSC Metals, Inc
Related Party Transaction [Line Items]
Royalty and other income (expense)	$ 2