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þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
76-0515284
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
500 North Field Drive, Lake Forest, Illinois
|
|
60045
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
þ
|
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
|
Smaller reporting company
¨
|
|
(Do not check if a smaller reporting company)
|
|
|
|
Emerging growth company
¨
|
|
|
Page
|
Part I — Financial Information
|
|
|
Item 1.
|
||
|
Tenneco Inc. and Consolidated Subsidiaries —
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
Part II — Other Information
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
Defaults Upon Senior Securities
|
*
|
Item 4.
|
Mine Safety Disclosures
|
*
|
Item 5.
|
Other Information
|
*
|
Item 6.
|
*
|
No response to this item is included herein for the reason that it is inapplicable or the answer to such item is negative.
|
•
|
general economic, business and market conditions;
|
•
|
our ability to source and procure needed materials, components and other products and services in accordance with customer demand and at competitive prices;
|
•
|
the cost and outcome of existing and any future claims, legal proceedings or investigations, including, but not limited to, any of the foregoing arising in connection with the ongoing global antitrust investigation, product performance, product safety or intellectual property rights;
|
•
|
changes in capital availability or costs, including increases in our cost of borrowing (i.e., interest rate increases), the amount of our debt, our ability to access capital markets at favorable rates, and the credit ratings of our debt;
|
•
|
changes in consumer demand, prices and our ability to have our products included on top selling vehicles, including any shifts in consumer preferences away from light trucks, which tend to be higher margin products for our customers and us, to other lower margin vehicles, for which we may or may not have supply arrangements;
|
•
|
changes in consumer demand for our automotive, commercial or aftermarket products, or changes in automotive and commercial vehicle manufacturers’ production rates and their actual and forecasted requirements for our products, due to difficult economic conditions and/or regulatory or legal changes affecting internal combustion engines;
|
•
|
new technologies that reduce the demand for certain of our products or otherwise render them obsolete;
|
•
|
our ability to introduce new products and technologies that satisfy customers' needs in a timely fashion;
|
•
|
the overall highly competitive nature of the automobile 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 loss of any of our large original equipment manufacturer (“OEM”) customers (on whom we depend for a substantial portion of our revenues), or the loss of market shares by these customers if we are unable to achieve increased sales to other OEMs or any change in customer demand due to delays in the adoption or enforcement of worldwide emissions regulations;
|
•
|
our ability to successfully execute cash management and other cost reduction plans, and to realize the anticipated benefits from these plans;
|
•
|
risks inherent in operating a multi-national company, including economic conditions, such as currency exchange and inflation rates, and political conditions in the countries where we operate or sell our products, adverse changes in trade agreements, tariffs, immigration policies, political stability, and tax and other laws, and potential disruptions of production and supply;
|
•
|
industrywide strikes, labor disruptions at our facilities or any labor or other economic disruptions at any of our significant customers or suppliers or any of our customers’ other suppliers;
|
•
|
increases in the costs of raw materials, including our ability to successfully reduce the impact of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery and other methods;
|
•
|
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;
|
•
|
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;
|
•
|
costs related to product warranties and other customer satisfaction actions;
|
•
|
the failure or breach of our information technology systems, including the consequences of any misappropriation, exposure or corruption of sensitive information stored on such systems and the interruption to our business that such failure or breach may cause;
|
•
|
the impact of consolidation among vehicle parts suppliers and customers on our ability to compete;
|
•
|
changes in distribution channels or competitive conditions in the markets and countries where we operate, including the impact of increasing competition from lower cost, private-label products on our aftermarket business;
|
•
|
customer acceptance of new products;
|
•
|
our ability to realize our business strategy of improving operating performance;
|
•
|
our ability to successfully integrate, and benefit from, any acquisitions that we complete and effectively manage our joint ventures and other third-party relationships;
|
•
|
changes by the Financial Accounting Standards Board or the Securities and Exchange Commission of authoritative generally accepted accounting principles or policies;
|
•
|
changes in accounting estimates and assumptions, including changes based on additional information;
|
•
|
any changes by the International Organization for Standardization (ISO) or other such committees in their certification protocols for processes and products, which may have the effect of delaying or hindering our ability to bring new products to market;
|
•
|
the 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;
|
•
|
the potential impairment in the carrying value of our long-lived assets and goodwill or our deferred tax assets;
|
•
|
potential volatility in our effective tax rate;
|
•
|
disasters, such as fires, earthquakes and flooding, and any resultant disruptions in the supply or production of goods or services to us or by us, in demand by our customers or in the operation of our system, disaster recovery capabilities or business continuity capabilities;
|
•
|
acts of war and/or terrorism, as well as actions taken or to be taken by the United States and other governments as a result of further acts or threats of terrorism, and the impact of these acts on economic, financial and social conditions in the countries where we operate; and
|
•
|
the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control.
|
•
|
the risk that the transaction with Federal-Mogul pursuant to the Membership Interest Purchase Agreement by and among the Company, Federal-Mogul, American Entertainment Properties Corp., and Icahn Enterprises L.P., may not be completed in a timely manner or at all;
|
•
|
the risk that the benefits of the acquisition of Federal-Mogul, including synergies, may not be fully realized or may take longer to realize than expected; and
|
•
|
the risk that, following the acquisition of Federal-Mogul, the combined company may not complete a separation of its powertrain technology business and its aftermarket & ride performance business (or achieve some or all of the anticipated benefits of such a separation).
|
/s/ PricewaterhouseCoopers LLP
|
Milwaukee, Wisconsin
|
August 7, 2018
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Millions Except Share and Per Share Amounts)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net sales and operating revenues
|
$
|
2,537
|
|
|
$
|
2,317
|
|
|
$
|
5,111
|
|
|
$
|
4,609
|
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
2,159
|
|
|
1,949
|
|
|
4,357
|
|
|
3,878
|
|
||||
Engineering, research, and development
|
42
|
|
|
36
|
|
|
83
|
|
|
75
|
|
||||
Selling, general, and administrative
|
156
|
|
|
252
|
|
|
309
|
|
|
393
|
|
||||
Depreciation and amortization of other intangibles
|
59
|
|
|
55
|
|
|
118
|
|
|
107
|
|
||||
|
2,416
|
|
|
2,292
|
|
|
4,867
|
|
|
4,453
|
|
||||
Other (expense) income
|
|
|
|
|
|
|
|
||||||||
Loss on sale of receivables
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(2
|
)
|
||||
Other (expense) income
|
(6
|
)
|
|
3
|
|
|
(9
|
)
|
|
(6
|
)
|
||||
|
(8
|
)
|
|
2
|
|
|
(14
|
)
|
|
(8
|
)
|
||||
Earnings before interest expense, income taxes, and noncontrolling interests
|
113
|
|
|
27
|
|
|
230
|
|
|
148
|
|
||||
Interest expense
|
20
|
|
|
20
|
|
|
40
|
|
|
35
|
|
||||
Earnings before income taxes and noncontrolling interests
|
93
|
|
|
7
|
|
|
190
|
|
|
113
|
|
||||
Income tax expense (benefit)
|
27
|
|
|
(8
|
)
|
|
52
|
|
|
25
|
|
||||
Net income
|
66
|
|
|
15
|
|
|
138
|
|
|
88
|
|
||||
Less: Net income attributable to noncontrolling interests
|
16
|
|
|
18
|
|
|
30
|
|
|
32
|
|
||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
50
|
|
|
$
|
(3
|
)
|
|
$
|
108
|
|
|
$
|
56
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding —
|
|
|
|
|
|
|
|
||||||||
Basic
|
51,258,668
|
|
|
53,505,341
|
|
|
51,232,639
|
|
|
53,662,375
|
|
||||
Diluted
|
51,607,224
|
|
|
53,505,341
|
|
|
51,546,015
|
|
|
53,952,918
|
|
||||
Basic earnings (loss) per share of common stock
|
$
|
0.98
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.12
|
|
|
$
|
1.05
|
|
Diluted earnings (loss) per share of common stock
|
$
|
0.98
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.10
|
|
|
$
|
1.05
|
|
Cash dividends declared
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Tenneco Inc.
|
|
Noncontrolling Interests
|
|
Total
|
||||||||||||||||||
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Net Income
|
|
|
$
|
50
|
|
|
|
|
$
|
16
|
|
|
|
|
$
|
66
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance April 1
|
$
|
(222
|
)
|
|
|
|
$
|
5
|
|
|
|
|
$
|
(217
|
)
|
|
|
||||||
Translation of foreign currency statements
|
(93
|
)
|
|
(93
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
(100
|
)
|
|
(100
|
)
|
||||||
Balance June 30
|
(315
|
)
|
|
|
|
(2
|
)
|
|
|
|
(317
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance April 1
|
(297
|
)
|
|
|
|
—
|
|
|
|
|
(297
|
)
|
|
|
|||||||||
Additional liability for pension and postretirement benefits, net of tax
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Balance June 30
|
(293
|
)
|
|
|
|
—
|
|
|
|
|
(293
|
)
|
|
|
|||||||||
Balance June 30
|
$
|
(608
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(610
|
)
|
|
|
||||||
Other Comprehensive Loss
|
|
|
(89
|
)
|
|
|
|
(7
|
)
|
|
|
|
(96
|
)
|
|||||||||
Comprehensive (Loss) Income
|
|
|
$
|
(39
|
)
|
|
|
|
$
|
9
|
|
|
|
|
$
|
(30
|
)
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Tenneco Inc.
|
|
Noncontrolling Interests
|
|
Total
|
||||||||||||||||||
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income |
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Net (Loss) Income
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
18
|
|
|
|
|
$
|
15
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance April 1
|
$
|
(317
|
)
|
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
(321
|
)
|
|
|
||||||
Translation of foreign currency statements
|
32
|
|
|
32
|
|
|
2
|
|
|
2
|
|
|
34
|
|
|
34
|
|
||||||
Balance June 30
|
(285
|
)
|
|
|
|
(2
|
)
|
|
|
|
(287
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance April 1
|
(320
|
)
|
|
|
|
—
|
|
|
|
|
(320
|
)
|
|
|
|||||||||
Additional liability for pension and postretirement benefits, net of tax
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Balance June 30
|
(316
|
)
|
|
|
|
—
|
|
|
|
|
(316
|
)
|
|
|
|||||||||
Balance June 30
|
$
|
(601
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(603
|
)
|
|
|
||||||
Other Comprehensive Income
|
|
|
36
|
|
|
|
|
2
|
|
|
|
|
38
|
|
|||||||||
Comprehensive Income
|
|
|
$
|
33
|
|
|
|
|
$
|
20
|
|
|
|
|
$
|
53
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Tenneco Inc.
|
|
Noncontrolling Interests
|
|
Total
|
||||||||||||||||||
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Net Income
|
|
|
$
|
108
|
|
|
|
|
$
|
30
|
|
|
|
|
$
|
138
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
$
|
(241
|
)
|
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
(244
|
)
|
|
|
||||||
Translation of foreign currency statements
|
(74
|
)
|
|
(74
|
)
|
|
1
|
|
|
1
|
|
|
(73
|
)
|
|
(73
|
)
|
||||||
Balance June 30
|
(315
|
)
|
|
|
|
(2
|
)
|
|
|
|
(317
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
(300
|
)
|
|
|
|
—
|
|
|
|
|
(300
|
)
|
|
|
|||||||||
Additional liability for pension and postretirement benefits, net of tax
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||||
Balance June 30
|
(293
|
)
|
|
|
|
—
|
|
|
|
|
(293
|
)
|
|
|
|||||||||
Balance June 30
|
$
|
(608
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(610
|
)
|
|
|
||||||
Other Comprehensive (Loss) Income
|
|
|
(67
|
)
|
|
|
|
1
|
|
|
|
|
(66
|
)
|
|||||||||
Comprehensive Income
|
|
|
$
|
41
|
|
|
|
|
$
|
31
|
|
|
|
|
$
|
72
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Tenneco Inc.
|
|
Noncontrolling Interests
|
|
Total
|
||||||||||||||||||
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income (Loss) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Comprehensive
Income |
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Net Income
|
|
|
$
|
56
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
88
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
$
|
(338
|
)
|
|
|
|
$
|
(5
|
)
|
|
|
|
$
|
(343
|
)
|
|
|
||||||
Translation of foreign currency statements
|
53
|
|
|
53
|
|
|
3
|
|
|
3
|
|
|
56
|
|
|
56
|
|
||||||
Balance June 30
|
(285
|
)
|
|
|
|
(2
|
)
|
|
|
|
(287
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
(327
|
)
|
|
|
|
—
|
|
|
|
|
(327
|
)
|
|
|
|||||||||
Additional liability for pension and postretirement benefits, net of tax
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||||
Balance June 30
|
(316
|
)
|
|
|
|
—
|
|
|
|
|
(316
|
)
|
|
|
|||||||||
Balance June 30
|
$
|
(601
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(603
|
)
|
|
|
||||||
Other Comprehensive Income
|
|
|
64
|
|
|
|
|
3
|
|
|
|
|
67
|
|
|||||||||
Comprehensive Income
|
|
|
$
|
120
|
|
|
|
|
$
|
35
|
|
|
|
|
$
|
155
|
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
(Millions)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
235
|
|
|
$
|
315
|
|
Restricted cash
|
2
|
|
|
3
|
|
||
Receivables —
|
|
|
|
||||
Customer notes and accounts, net
|
1,418
|
|
|
1,294
|
|
||
Other
|
24
|
|
|
27
|
|
||
Inventories —
|
|
|
|
||||
Finished goods
|
348
|
|
|
349
|
|
||
Work in process
|
282
|
|
|
268
|
|
||
Raw materials
|
190
|
|
|
178
|
|
||
Materials and supplies
|
78
|
|
|
74
|
|
||
Prepayments and other
|
348
|
|
|
291
|
|
||
Total current assets
|
2,925
|
|
|
2,799
|
|
||
Other assets:
|
|
|
|
||||
Long-term receivables, net
|
12
|
|
|
9
|
|
||
Goodwill
|
47
|
|
|
49
|
|
||
Intangibles, net
|
21
|
|
|
22
|
|
||
Deferred income taxes
|
215
|
|
|
204
|
|
||
Other
|
158
|
|
|
144
|
|
||
|
453
|
|
|
428
|
|
||
Plant, property, and equipment, at cost
|
4,027
|
|
|
4,008
|
|
||
Less — Accumulated depreciation and amortization
|
(2,402
|
)
|
|
(2,393
|
)
|
||
|
1,625
|
|
|
1,615
|
|
||
Total Assets
|
$
|
5,003
|
|
|
$
|
4,842
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Short-term debt (including current maturities of long-term debt)
|
$
|
78
|
|
|
$
|
83
|
|
Accounts payable
|
1,813
|
|
|
1,705
|
|
||
Accrued taxes
|
42
|
|
|
45
|
|
||
Accrued interest
|
14
|
|
|
14
|
|
||
Accrued liabilities
|
326
|
|
|
287
|
|
||
Other
|
125
|
|
|
132
|
|
||
Total current liabilities
|
2,398
|
|
|
2,266
|
|
||
Long-term debt
|
1,381
|
|
|
1,358
|
|
||
Deferred income taxes
|
11
|
|
|
11
|
|
||
Pension and postretirement benefits
|
261
|
|
|
268
|
|
||
Deferred credits and other liabilities
|
153
|
|
|
155
|
|
||
Commitments and contingencies (Note 8)
|
—
|
|
|
—
|
|
||
Total liabilities
|
4,204
|
|
|
4,058
|
|
||
Redeemable noncontrolling interests
|
38
|
|
|
42
|
|
||
Tenneco Inc. Shareholders’ equity:
|
|
|
|
||||
Common stock
|
1
|
|
|
1
|
|
||
Premium on common stock and other capital surplus
|
3,118
|
|
|
3,112
|
|
||
Accumulated other comprehensive loss
|
(608
|
)
|
|
(541
|
)
|
||
Retained earnings (accumulated deficit)
|
(864
|
)
|
|
(946
|
)
|
||
|
1,647
|
|
|
1,626
|
|
||
Less — Shares held as treasury stock, at cost
|
930
|
|
|
930
|
|
||
Total Tenneco Inc. shareholders’ equity
|
717
|
|
|
696
|
|
||
Noncontrolling interests
|
44
|
|
|
46
|
|
||
Total equity
|
761
|
|
|
742
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
5,003
|
|
|
$
|
4,842
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Operating Activities
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
66
|
|
|
$
|
15
|
|
|
$
|
138
|
|
|
$
|
88
|
|
Adjustments to reconcile net income to cash provided by operating activities —
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of other intangibles
|
59
|
|
|
55
|
|
|
118
|
|
|
107
|
|
||||
Deferred income taxes
|
(8
|
)
|
|
(7
|
)
|
|
(9
|
)
|
|
—
|
|
||||
Stock-based compensation
|
2
|
|
|
2
|
|
|
7
|
|
|
11
|
|
||||
Loss on sale of assets
|
2
|
|
|
—
|
|
|
5
|
|
|
1
|
|
||||
Changes in components of working capital —
|
|
|
|
|
|
|
|
||||||||
Increase in receivables
|
(16
|
)
|
|
(66
|
)
|
|
(239
|
)
|
|
(225
|
)
|
||||
Increase in inventories
|
(19
|
)
|
|
(15
|
)
|
|
(53
|
)
|
|
(60
|
)
|
||||
Increase in prepayments and other current assets
|
(25
|
)
|
|
(11
|
)
|
|
(70
|
)
|
|
(68
|
)
|
||||
(Decrease) increase in payables
|
(22
|
)
|
|
(7
|
)
|
|
167
|
|
|
86
|
|
||||
Decrease in accrued taxes
|
—
|
|
|
(41
|
)
|
|
(3
|
)
|
|
(38
|
)
|
||||
Increase (decrease) in accrued interest
|
3
|
|
|
3
|
|
|
—
|
|
|
(2
|
)
|
||||
Increase in other current liabilities
|
33
|
|
|
160
|
|
|
30
|
|
|
152
|
|
||||
Changes in long-term assets
|
(5
|
)
|
|
1
|
|
|
(14
|
)
|
|
—
|
|
||||
Changes in long-term liabilities
|
8
|
|
|
2
|
|
|
1
|
|
|
7
|
|
||||
Other
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
Net cash provided by operating activities
|
78
|
|
|
92
|
|
|
78
|
|
|
61
|
|
||||
Investing Activities
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of assets
|
3
|
|
|
3
|
|
|
5
|
|
|
6
|
|
||||
Proceeds from sale of equity interest
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Cash payments for plant, property, and equipment
|
(80
|
)
|
|
(90
|
)
|
|
(164
|
)
|
|
(193
|
)
|
||||
Cash payments for software related intangible assets
|
(5
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
(12
|
)
|
||||
Proceeds from deferred purchase price of factored receivables
|
32
|
|
|
27
|
|
|
66
|
|
|
49
|
|
||||
Other
|
2
|
|
|
(4
|
)
|
|
2
|
|
|
(4
|
)
|
||||
Net cash used by investing activities
|
(48
|
)
|
|
(61
|
)
|
|
(101
|
)
|
|
(145
|
)
|
||||
Financing Activities
|
|
|
|
|
|
|
|
||||||||
Issuance (repurchase) of common shares under employee stock plans
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
||||
Cash dividends
|
(12
|
)
|
|
(13
|
)
|
|
(25
|
)
|
|
(26
|
)
|
||||
Retirement of long-term debt
|
(6
|
)
|
|
(2
|
)
|
|
(12
|
)
|
|
(8
|
)
|
||||
Issuance of long-term debt - net
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
||||
Debt issuance cost for long-term debt
|
(2
|
)
|
|
(8
|
)
|
|
(2
|
)
|
|
(8
|
)
|
||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(60
|
)
|
||||
Net decrease in bank overdrafts
|
(3
|
)
|
|
(12
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||
Net (decrease) increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable
|
(29
|
)
|
|
(57
|
)
|
|
48
|
|
|
60
|
|
||||
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
10
|
|
|
—
|
|
|
(20
|
)
|
|
20
|
|
||||
Distributions to noncontrolling interest partners
|
(28
|
)
|
|
(33
|
)
|
|
(28
|
)
|
|
(33
|
)
|
||||
Net cash (used) provided by financing activities
|
(69
|
)
|
|
(33
|
)
|
|
(47
|
)
|
|
69
|
|
||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
(14
|
)
|
|
(7
|
)
|
|
(11
|
)
|
|
1
|
|
||||
Decrease in cash, cash equivalents and restricted cash
|
(53
|
)
|
|
(9
|
)
|
|
(81
|
)
|
|
(14
|
)
|
||||
Cash, cash equivalents and restricted cash, beginning of period
|
290
|
|
|
344
|
|
|
318
|
|
|
349
|
|
||||
Cash, cash equivalents and restricted cash, end of period (Note)
|
$
|
237
|
|
|
$
|
335
|
|
|
$
|
237
|
|
|
$
|
335
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
|
|
||||||||
Cash paid during the period for interest (net of interest capitalized)
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
40
|
|
|
$
|
38
|
|
Cash paid during the period for income taxes (net of refunds)
|
31
|
|
|
28
|
|
|
56
|
|
|
43
|
|
||||
Non-cash Investing and Financing Activities
|
|
|
|
|
|
|
|
||||||||
Period end balance of trade payables for plant, property, and equipment
|
$
|
54
|
|
|
$
|
51
|
|
|
$
|
54
|
|
|
$
|
51
|
|
Deferred purchase price of receivables factored in the period
|
34
|
|
|
27
|
|
|
71
|
|
|
53
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||
|
(Millions Except Share Amounts)
|
||||||||||||
Tenneco Inc. Shareholders:
|
|
|
|
|
|
|
|
||||||
Common Stock
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
66,033,509
|
|
|
$
|
1
|
|
|
65,891,930
|
|
|
$
|
1
|
|
Issued (repurchased) pursuant to benefit plans
|
(15,837
|
)
|
|
—
|
|
|
35,502
|
|
|
—
|
|
||
Restricted shares forfeited
|
(7,254
|
)
|
|
—
|
|
|
(104,668
|
)
|
|
—
|
|
||
Stock options exercised
|
4,779
|
|
|
—
|
|
|
168,105
|
|
|
—
|
|
||
Balance June 30
|
66,015,197
|
|
|
1
|
|
|
65,990,869
|
|
|
1
|
|
||
Premium on Common Stock and Other Capital Surplus
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
3,112
|
|
|
|
|
3,098
|
|
||||
Premium on common stock issued pursuant to benefit plans
|
|
|
6
|
|
|
|
|
8
|
|
||||
Balance June 30
|
|
|
3,118
|
|
|
|
|
3,106
|
|
||||
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
(541
|
)
|
|
|
|
(665
|
)
|
||||
Other comprehensive (loss) income
|
|
|
(67
|
)
|
|
|
|
64
|
|
||||
Balance June 30
|
|
|
(608
|
)
|
|
|
|
(601
|
)
|
||||
Retained Earnings (Accumulated Deficit)
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
(946
|
)
|
|
|
|
(1,100
|
)
|
||||
Net income attributable to Tenneco Inc.
|
|
|
108
|
|
|
|
|
56
|
|
||||
Cash dividends declared
|
|
|
(25
|
)
|
|
|
|
(26
|
)
|
||||
Adjustments to adopt new accounting standards
|
|
|
|
|
|
|
|
||||||
Revenue recognition (Notes 12 and 15)
|
|
|
1
|
|
|
|
|
—
|
|
||||
Tax accounting for intra-entity asset transfers (Note 12)
|
|
|
(2
|
)
|
|
|
|
—
|
|
||||
Balance June 30
|
|
|
(864
|
)
|
|
|
|
(1,070
|
)
|
||||
Less — Common Stock Held as Treasury Stock at Cost
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
14,592,888
|
|
|
930
|
|
|
11,655,938
|
|
|
761
|
|
||
Purchase of common stock through stock repurchase program
|
—
|
|
|
—
|
|
|
1,023,800
|
|
|
60
|
|
||
Balance June 30
|
14,592,888
|
|
|
930
|
|
|
12,679,738
|
|
|
821
|
|
||
Total Tenneco Inc. shareholders’ equity
|
|
|
$
|
717
|
|
|
|
|
$
|
615
|
|
||
Noncontrolling Interests:
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
$
|
46
|
|
|
|
|
$
|
47
|
|
||
Net income
|
|
|
14
|
|
|
|
|
14
|
|
||||
Other comprehensive income
|
|
|
2
|
|
|
|
|
1
|
|
||||
Dividends declared
|
|
|
(18
|
)
|
|
|
|
(20
|
)
|
||||
Balance June 30
|
|
|
$
|
44
|
|
|
|
|
$
|
42
|
|
||
Total equity
|
|
|
$
|
761
|
|
|
|
|
$
|
657
|
|
(1)
|
Consolidation and Presentation
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Balance January 1
|
$
|
42
|
|
|
$
|
40
|
|
Net income attributable to redeemable noncontrolling interests
|
16
|
|
|
19
|
|
||
Other comprehensive (loss) income
|
(1
|
)
|
|
1
|
|
||
Dividends declared
|
(19
|
)
|
|
(35
|
)
|
||
Balance June 30
|
$
|
38
|
|
|
$
|
25
|
|
(2)
|
Pending Acquisition of Federal-Mogul
|
(3)
|
Financial Instruments
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Net Carrying
Amount
|
|
Fair
Value
|
|
Net Carrying
Amount
|
|
Fair
Value
|
||||||||
|
(Millions)
|
||||||||||||||
Long-term debt (including current maturities)
|
$
|
1,385
|
|
|
$
|
1,335
|
|
|
$
|
1,361
|
|
|
$
|
1,398
|
|
Equity swap agreement and foreign currency forward contracts:
|
|
|
|
|
|
|
|
||||||||
Asset derivative contracts (a)
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
Level 1
|
—
|
Quoted prices in active markets for identical assets or liabilities.
|
|
|
|
Level 2
|
—
|
Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
|
|
|
|
Level 3
|
—
|
Unobservable inputs based on our own assumptions.
|
|
|
Notional Amount
in Foreign Currency
|
|
|
|
(Millions)
|
|
Canadian dollars
|
—Sell
|
(2
|
)
|
Chinese yuan
|
—Purchase
|
3
|
|
U.S. dollars
|
—Purchase
|
2
|
|
(4)
|
Debt and Other Financing Arrangements
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Principal
|
|
Carrying Amount
(1)
|
|
Principal
|
|
Carrying Amount
(1)
|
||||||||
|
(Millions)
|
||||||||||||||
Tenneco Inc. —
|
|
|
|
|
|
|
|
||||||||
Revolver borrowings due 2022
|
$
|
278
|
|
|
$
|
278
|
|
|
$
|
244
|
|
|
$
|
244
|
|
Senior Tranche A Term Loan due 2022
|
380
|
|
|
378
|
|
|
390
|
|
|
388
|
|
||||
5 3/8% Senior Notes due 2024
|
225
|
|
|
222
|
|
|
225
|
|
|
222
|
|
||||
5% Senior Notes due 2026
|
500
|
|
|
493
|
|
|
500
|
|
|
492
|
|
||||
Other subsidiaries —
|
|
|
|
|
|
|
|
||||||||
Other long-term debt due in 2020
|
6
|
|
|
6
|
|
|
5
|
|
|
5
|
|
||||
Notes due 2018 through 2028
|
10
|
|
|
8
|
|
|
12
|
|
|
10
|
|
||||
|
1,399
|
|
|
1,385
|
|
|
1,376
|
|
|
1,361
|
|
||||
Less — maturities classified as current
|
4
|
|
|
4
|
|
|
3
|
|
|
3
|
|
||||
Total long-term debt
|
$
|
1,395
|
|
|
$
|
1,381
|
|
|
$
|
1,373
|
|
|
$
|
1,358
|
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
(Millions)
|
||||||
Maturities classified as current
|
$
|
4
|
|
|
$
|
3
|
|
Short-term borrowings
|
74
|
|
|
80
|
|
||
Total short-term debt
|
$
|
78
|
|
|
$
|
83
|
|
|
Quarter Ended
|
||||||||||
|
June 30, 2018
|
|
March 31, 2018
|
||||||||
|
Required
|
|
Actual
|
|
Required
|
|
Actual
|
||||
Leverage Ratio (maximum)
|
3.50
|
|
|
1.79
|
|
|
3.50
|
|
|
2.09
|
|
Interest Coverage Ratio (minimum)
|
2.75
|
|
|
10.84
|
|
|
2.75
|
|
|
9.87
|
|
(5)
|
Income Taxes
|
(6)
|
Accounts Receivable Securitization and Factoring Programs
|
(7)
|
Restructuring and Other Charges
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Millions)
|
||||||||||||||
Cost of sales
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
32
|
|
|
$
|
23
|
|
Engineering, research, and development
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Selling, general and administrative
|
8
|
|
|
4
|
|
|
10
|
|
|
7
|
|
||||
Depreciation and amortization of other intangibles
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
|
$
|
31
|
|
|
$
|
17
|
|
|
$
|
43
|
|
|
$
|
32
|
|
|
December 31,
2017 Restructuring Reserve |
|
2018
Expenses |
|
2018
Cash Payments |
|
Impact of Exchange Rates
|
|
June 30, 2018
Restructuring Reserve |
||||||||||
|
(Millions)
|
||||||||||||||||||
Employee severance, termination benefits and other related costs
|
$
|
25
|
|
|
$
|
41
|
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
35
|
|
(8)
|
Environmental Matters, Legal Proceedings and Product Warranties
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Beginning Balance January 1,
|
$
|
26
|
|
|
$
|
20
|
|
Accruals related to product warranties
|
8
|
|
|
11
|
|
||
Reductions for payments made
|
(5
|
)
|
|
(4
|
)
|
||
Ending Balance June 30,
|
$
|
29
|
|
|
$
|
27
|
|
(9)
|
Earnings Per Share
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Millions Except Share and Per Share Amounts)
|
||||||||||||||
Basic earnings (loss) per share —
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
50
|
|
|
$
|
(3
|
)
|
|
$
|
108
|
|
|
$
|
56
|
|
Weighted Average shares of common stock outstanding
|
51,258,668
|
|
|
53,505,341
|
|
|
51,232,639
|
|
|
53,662,375
|
|
||||
Earnings (loss) per share of common stock
|
$
|
0.98
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.12
|
|
|
$
|
1.05
|
|
Diluted earnings (loss) per share —
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
50
|
|
|
$
|
(3
|
)
|
|
$
|
108
|
|
|
$
|
56
|
|
Weighted Average shares of common stock outstanding
|
51,258,668
|
|
|
53,505,341
|
|
|
51,232,639
|
|
|
53,662,375
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted stock
|
298,826
|
|
|
—
|
|
|
251,971
|
|
|
111,459
|
|
||||
Stock options
|
49,730
|
|
|
—
|
|
|
61,405
|
|
|
179,084
|
|
||||
Weighted Average shares of common stock outstanding including dilutive securities
|
51,607,224
|
|
|
53,505,341
|
|
|
51,546,015
|
|
|
53,952,918
|
|
||||
Earnings (loss) per share of common stock
|
$
|
0.98
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.10
|
|
|
$
|
1.05
|
|
(10)
|
Common Stock
|
|
Six Months Ended June 30, 2018
|
|||||||||||
|
Shares
Under
Option
|
|
Weighted Avg.
Exercise
Prices
|
|
Weighted Avg.
Remaining
Life in Years
|
|
Aggregate
Intrinsic
Value
|
|||||
|
|
|
|
|
|
|
(Millions)
|
|||||
Outstanding Stock Options
|
|
|
|
|
|
|
|
|||||
Outstanding, January 1, 2018
|
318,016
|
|
|
$
|
43.60
|
|
|
2.6
|
|
$
|
5
|
|
Exercised
|
(4,607
|
)
|
|
26.78
|
|
|
|
|
—
|
|
||
Outstanding, March 31, 2018
|
313,409
|
|
|
43.84
|
|
|
2.1
|
|
4
|
|
||
Forfeited
|
(2,368
|
)
|
|
54.34
|
|
|
|
|
—
|
|
||
Outstanding, June 30, 2018
|
311,041
|
|
|
$
|
43.76
|
|
|
1.8
|
|
$
|
2
|
|
|
Six Months Ended June 30, 2018
|
|||||
|
Shares
|
|
Weighted Avg.
Grant Date
Fair Value
|
|||
Nonvested Restricted Shares
|
|
|
|
|||
Nonvested balance at January 1, 2018
|
410,251
|
|
|
$
|
49.95
|
|
Granted
|
17,440
|
|
|
55.05
|
|
|
Vested
|
(168,409
|
)
|
|
47.08
|
|
|
Forfeited
|
(5,108
|
)
|
|
48.68
|
|
|
Nonvested balance at March 31, 2018
|
254,174
|
|
|
52.23
|
|
|
Granted
|
1,573
|
|
|
47.97
|
|
|
Vested
|
(60,434
|
)
|
|
49.89
|
|
|
Forfeited
|
(2,482
|
)
|
|
57.15
|
|
|
Nonvested balance at June 30, 2018
|
192,831
|
|
|
$
|
53.14
|
|
(11)
|
Pension Plans, Postretirement and Other Employee Benefits
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
Pension
|
|
Postretirement
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
|
US
|
|
Foreign
|
|
US
|
|
Foreign
|
|
US
|
|
US
|
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost (a)
|
2
|
|
|
3
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|
2
|
|
||||||
Expected return on plan assets (a)
|
(3
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
||||||
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss (a)
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|
2
|
|
||||||
Prior service credit (a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Net pension and postretirement costs
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
Pension
|
|
Postretirement
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
|
US
|
|
Foreign
|
|
US
|
|
Foreign
|
|
US
|
|
US
|
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost (a)
|
5
|
|
|
6
|
|
|
5
|
|
|
6
|
|
|
3
|
|
|
3
|
|
||||||
Expected return on plan assets (a)
|
(7
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlement loss (a)
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss (a)
|
2
|
|
|
4
|
|
|
3
|
|
|
5
|
|
|
4
|
|
|
3
|
|
||||||
Prior service credit (a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Net pension and postretirement costs
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Before-Tax
Amount
|
|
Tax
Benefit
|
|
Net-of-Tax
Amount
|
|
Before-
Tax
Amount
|
|
Tax
Benefit
|
|
Net-of-Tax
Amount
|
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Defined benefit pension and postretirement plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of prior service cost included in net periodic pension and postretirement cost
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Amortization of actuarial loss included in net periodic pension and postretirement cost
|
6
|
|
|
(1
|
)
|
|
5
|
|
|
7
|
|
|
(2
|
)
|
|
5
|
|
||||||
Other comprehensive income (loss) – pension benefits
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Before-Tax
Amount |
|
Tax
Benefit |
|
Net-of-Tax
Amount |
|
Before-
Tax Amount |
|
Tax
Benefit |
|
Net-of-Tax
Amount |
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Defined benefit pension and postretirement plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of prior service cost included in net periodic pension and postretirement cost
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Amortization of actuarial loss included in net periodic pension and postretirement cost
|
10
|
|
|
(2
|
)
|
|
8
|
|
|
11
|
|
|
(3
|
)
|
|
8
|
|
||||||
Settlement charge
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(2
|
)
|
|
4
|
|
||||||
Other comprehensive income (loss) – pension benefits
|
$
|
9
|
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
$
|
16
|
|
|
$
|
(5
|
)
|
|
$
|
11
|
|
(12)
|
New Accounting Pronouncements
|
(13)
|
Segment Information
|
|
Segments
|
|
|
|
|
|
|
||||||||||||||||||||
|
Clean Air
|
|
Ride Performance
|
|
Aftermarket
|
|
Total
|
|
Other
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||
|
(Millions)
|
||||||||||||||||||||||||||
At June 30, 2018 and for the Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues from external customers
|
$
|
1,694
|
|
|
$
|
506
|
|
|
$
|
337
|
|
|
$
|
2,537
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,537
|
|
Intersegment revenues
|
13
|
|
|
14
|
|
|
13
|
|
|
40
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
105
|
|
|
5
|
|
|
50
|
|
|
160
|
|
|
(47
|
)
|
|
—
|
|
|
113
|
|
|||||||
Total assets
|
2,957
|
|
|
1,094
|
|
|
896
|
|
|
4,947
|
|
|
—
|
|
|
56
|
|
|
5,003
|
|
|||||||
At June 30, 2017 and for the Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues from external customers
|
$
|
1,539
|
|
|
$
|
442
|
|
|
$
|
336
|
|
|
$
|
2,317
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,317
|
|
Intersegment revenues
|
17
|
|
|
13
|
|
|
10
|
|
|
40
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
106
|
|
|
18
|
|
|
54
|
|
|
178
|
|
|
(151
|
)
|
|
—
|
|
|
27
|
|
|||||||
Total assets
|
2,907
|
|
|
1,075
|
|
|
872
|
|
|
4,854
|
|
|
—
|
|
|
27
|
|
|
4,881
|
|
|||||||
At June 30, 2018 and for the Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues from external customers
|
$
|
3,450
|
|
|
$
|
1,019
|
|
|
$
|
642
|
|
|
$
|
5,111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,111
|
|
Intersegment revenues
|
28
|
|
|
29
|
|
|
23
|
|
|
80
|
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
|||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
224
|
|
|
13
|
|
|
85
|
|
|
322
|
|
|
(92
|
)
|
|
—
|
|
|
230
|
|
|||||||
Total assets
|
2,957
|
|
|
1,094
|
|
|
896
|
|
|
4,947
|
|
|
—
|
|
|
56
|
|
|
5,003
|
|
|||||||
At June 30, 2017 and for the Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues from external customers
|
$
|
3,094
|
|
|
$
|
870
|
|
|
$
|
645
|
|
|
$
|
4,609
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,609
|
|
Intersegment revenues
|
42
|
|
|
28
|
|
|
21
|
|
|
91
|
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
200
|
|
|
45
|
|
|
96
|
|
|
341
|
|
|
(193
|
)
|
|
—
|
|
|
148
|
|
|||||||
Total assets
|
2,907
|
|
|
1,075
|
|
|
872
|
|
|
4,854
|
|
|
—
|
|
|
27
|
|
|
4,881
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
1,028
|
|
|
$
|
1,509
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,537
|
|
Affiliated companies
|
134
|
|
|
156
|
|
|
—
|
|
|
(290
|
)
|
|
—
|
|
|||||
|
1,162
|
|
|
1,665
|
|
|
—
|
|
|
(290
|
)
|
|
2,537
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
986
|
|
|
1,463
|
|
|
—
|
|
|
(290
|
)
|
|
2,159
|
|
|||||
Engineering, research, and development
|
19
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Selling, general, and administrative
|
81
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|||||
Depreciation and amortization of other intangibles
|
22
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
|
1,108
|
|
|
1,598
|
|
|
—
|
|
|
(290
|
)
|
|
2,416
|
|
|||||
Other (expense) income
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Other (expense) income
|
(18
|
)
|
|
22
|
|
|
—
|
|
|
(10
|
)
|
|
(6
|
)
|
|||||
|
(20
|
)
|
|
22
|
|
|
—
|
|
|
(10
|
)
|
|
(8
|
)
|
|||||
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
34
|
|
|
89
|
|
|
—
|
|
|
(10
|
)
|
|
113
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
8
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
20
|
|
|||||
Affiliated companies (net of interest income)
|
(4
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests,
and equity in net income from affiliated companies
|
30
|
|
|
86
|
|
|
(13
|
)
|
|
(10
|
)
|
|
93
|
|
|||||
Income tax (benefit) expense
|
(2
|
)
|
|
29
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
Equity in net income from affiliated companies
|
39
|
|
|
—
|
|
|
63
|
|
|
(102
|
)
|
|
—
|
|
|||||
Net income
|
71
|
|
|
57
|
|
|
50
|
|
|
(112
|
)
|
|
66
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Net income attributable to Tenneco Inc.
|
$
|
71
|
|
|
$
|
41
|
|
|
$
|
50
|
|
|
$
|
(112
|
)
|
|
$
|
50
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
71
|
|
|
$
|
41
|
|
|
$
|
(39
|
)
|
|
$
|
(112
|
)
|
|
$
|
(39
|
)
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
1,023
|
|
|
$
|
1,294
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,317
|
|
Affiliated companies
|
141
|
|
|
172
|
|
|
—
|
|
|
(313
|
)
|
|
—
|
|
|||||
|
1,164
|
|
|
1,466
|
|
|
—
|
|
|
(313
|
)
|
|
2,317
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
986
|
|
|
1,276
|
|
|
—
|
|
|
(313
|
)
|
|
1,949
|
|
|||||
Engineering, research, and development
|
19
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Selling, general, and administrative
|
183
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
252
|
|
|||||
Depreciation and amortization of other intangibles
|
21
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|||||
|
1,209
|
|
|
1,396
|
|
|
—
|
|
|
(313
|
)
|
|
2,292
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other income
|
5
|
|
|
13
|
|
|
—
|
|
|
(15
|
)
|
|
3
|
|
|||||
|
4
|
|
|
13
|
|
|
—
|
|
|
(15
|
)
|
|
2
|
|
|||||
(Loss) earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
(41
|
)
|
|
83
|
|
|
—
|
|
|
(15
|
)
|
|
27
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
3
|
|
|
2
|
|
|
15
|
|
|
—
|
|
|
20
|
|
|||||
Affiliated companies (net of interest income)
|
(4
|
)
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|||||
(Loss) earnings before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
(40
|
)
|
|
79
|
|
|
(17
|
)
|
|
(15
|
)
|
|
7
|
|
|||||
Income tax expense (benefit)
|
3
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Equity in net income from affiliated companies
|
60
|
|
|
—
|
|
|
14
|
|
|
(74
|
)
|
|
—
|
|
|||||
Net income (loss)
|
17
|
|
|
90
|
|
|
(3
|
)
|
|
(89
|
)
|
|
15
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
17
|
|
|
$
|
72
|
|
|
$
|
(3
|
)
|
|
$
|
(89
|
)
|
|
$
|
(3
|
)
|
Comprehensive income attributable to Tenneco Inc.
|
$
|
17
|
|
|
$
|
72
|
|
|
$
|
33
|
|
|
$
|
(89
|
)
|
|
$
|
33
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass &
Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
2,060
|
|
|
$
|
3,051
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,111
|
|
Affiliated companies
|
257
|
|
|
312
|
|
|
—
|
|
|
(569
|
)
|
|
—
|
|
|||||
|
2,317
|
|
|
3,363
|
|
|
—
|
|
|
(569
|
)
|
|
5,111
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
1,994
|
|
|
2,932
|
|
|
—
|
|
|
(569
|
)
|
|
4,357
|
|
|||||
Engineering, research, and development
|
37
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||
Selling, general, and administrative
|
155
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|||||
Depreciation and amortization of other intangibles
|
44
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|||||
|
2,230
|
|
|
3,206
|
|
|
—
|
|
|
(569
|
)
|
|
4,867
|
|
|||||
Other (expense) income
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Other (expense) income
|
(30
|
)
|
|
31
|
|
|
—
|
|
|
(10
|
)
|
|
(9
|
)
|
|||||
|
(34
|
)
|
|
30
|
|
|
—
|
|
|
(10
|
)
|
|
(14
|
)
|
|||||
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
53
|
|
|
187
|
|
|
—
|
|
|
(10
|
)
|
|
230
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
16
|
|
|
5
|
|
|
19
|
|
|
—
|
|
|
40
|
|
|||||
Affiliated companies (net of interest income)
|
(7
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
44
|
|
|
182
|
|
|
(26
|
)
|
|
(10
|
)
|
|
190
|
|
|||||
Income tax (benefit) expense
|
(1
|
)
|
|
53
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|||||
Equity in net income from affiliated companies
|
84
|
|
|
—
|
|
|
134
|
|
|
(218
|
)
|
|
—
|
|
|||||
Net income
|
129
|
|
|
129
|
|
|
108
|
|
|
(228
|
)
|
|
138
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||
Net income attributable to Tenneco Inc.
|
$
|
129
|
|
|
$
|
99
|
|
|
$
|
108
|
|
|
$
|
(228
|
)
|
|
$
|
108
|
|
Comprehensive income attributable to Tenneco Inc.
|
$
|
129
|
|
|
$
|
99
|
|
|
$
|
41
|
|
|
$
|
(228
|
)
|
|
$
|
41
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass &
Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
2,041
|
|
|
$
|
2,568
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,609
|
|
Affiliated companies
|
285
|
|
|
354
|
|
|
—
|
|
|
(639
|
)
|
|
—
|
|
|||||
|
2,326
|
|
|
2,922
|
|
|
—
|
|
|
(639
|
)
|
|
4,609
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
1,978
|
|
|
2,539
|
|
|
—
|
|
|
(639
|
)
|
|
3,878
|
|
|||||
Engineering, research, and development
|
39
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
Selling, general, and administrative
|
251
|
|
|
142
|
|
|
—
|
|
|
—
|
|
|
393
|
|
|||||
Depreciation and amortization of other intangibles
|
42
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|||||
|
2,310
|
|
|
2,782
|
|
|
—
|
|
|
(639
|
)
|
|
4,453
|
|
|||||
Other (expense) income
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Other (expense) income
|
(12
|
)
|
|
21
|
|
|
—
|
|
|
(15
|
)
|
|
(6
|
)
|
|||||
|
(13
|
)
|
|
20
|
|
|
—
|
|
|
(15
|
)
|
|
(8
|
)
|
|||||
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
3
|
|
|
160
|
|
|
—
|
|
|
(15
|
)
|
|
148
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
3
|
|
|
2
|
|
|
30
|
|
|
—
|
|
|
35
|
|
|||||
Affiliated companies (net of interest income)
|
(7
|
)
|
|
3
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
7
|
|
|
155
|
|
|
(34
|
)
|
|
(15
|
)
|
|
113
|
|
|||||
Income tax expense
|
11
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Equity in net income from affiliated companies
|
88
|
|
|
—
|
|
|
90
|
|
|
(178
|
)
|
|
—
|
|
|||||
Net income
|
84
|
|
|
141
|
|
|
56
|
|
|
(193
|
)
|
|
88
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
Net income attributable to Tenneco Inc.
|
$
|
84
|
|
|
$
|
109
|
|
|
$
|
56
|
|
|
$
|
(193
|
)
|
|
$
|
56
|
|
Comprehensive income attributable to Tenneco Inc.
|
$
|
84
|
|
|
$
|
109
|
|
|
$
|
120
|
|
|
$
|
(193
|
)
|
|
$
|
120
|
|
|
June 30, 2018
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
233
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
235
|
|
Restricted cash
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Receivables, net
|
456
|
|
|
1,664
|
|
|
—
|
|
|
(678
|
)
|
|
1,442
|
|
|||||
Inventories
|
391
|
|
|
507
|
|
|
—
|
|
|
—
|
|
|
898
|
|
|||||
Prepayments and other
|
128
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
348
|
|
|||||
Total current assets
|
977
|
|
|
2,626
|
|
|
—
|
|
|
(678
|
)
|
|
2,925
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in affiliated companies
|
1,403
|
|
|
—
|
|
|
1,318
|
|
|
(2,721
|
)
|
|
—
|
|
|||||
Notes and advances receivable from affiliates
|
801
|
|
|
20,311
|
|
|
3,944
|
|
|
(25,056
|
)
|
|
—
|
|
|||||
Long-term receivables, net
|
11
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Goodwill
|
21
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||
Intangibles, net
|
5
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|||||
Deferred income taxes
|
170
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
215
|
|
|||||
Other
|
70
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|||||
|
2,481
|
|
|
20,487
|
|
|
5,262
|
|
|
(27,777
|
)
|
|
453
|
|
|||||
Plant, property, and equipment, at cost
|
1,534
|
|
|
2,493
|
|
|
—
|
|
|
—
|
|
|
4,027
|
|
|||||
Less — Accumulated depreciation and amortization
|
(959
|
)
|
|
(1,443
|
)
|
|
—
|
|
|
—
|
|
|
(2,402
|
)
|
|||||
|
575
|
|
|
1,050
|
|
|
—
|
|
|
—
|
|
|
1,625
|
|
|||||
Total assets
|
$
|
4,033
|
|
|
$
|
24,163
|
|
|
$
|
5,262
|
|
|
$
|
(28,455
|
)
|
|
$
|
5,003
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt (including current maturities of long-term debt)
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt — non-affiliated
|
$
|
—
|
|
|
$
|
63
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
78
|
|
Short-term debt — affiliated
|
396
|
|
|
155
|
|
|
—
|
|
|
(551
|
)
|
|
—
|
|
|||||
Accounts payable
|
689
|
|
|
1,245
|
|
|
—
|
|
|
(121
|
)
|
|
1,813
|
|
|||||
Accrued taxes
|
5
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Other
|
217
|
|
|
242
|
|
|
12
|
|
|
(6
|
)
|
|
465
|
|
|||||
Total current liabilities
|
1,307
|
|
|
1,742
|
|
|
27
|
|
|
(678
|
)
|
|
2,398
|
|
|||||
Long-term debt — non-affiliated
|
657
|
|
|
9
|
|
|
715
|
|
|
—
|
|
|
1,381
|
|
|||||
Long-term debt — affiliated
|
1,082
|
|
|
20,171
|
|
|
3,803
|
|
|
(25,056
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Pension and postretirement benefits and other liabilities
|
290
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
414
|
|
|||||
Total liabilities
|
3,336
|
|
|
22,057
|
|
|
4,545
|
|
|
(25,734
|
)
|
|
4,204
|
|
|||||
Redeemable noncontrolling interests
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Tenneco Inc. shareholders’ equity
|
697
|
|
|
2,024
|
|
|
717
|
|
|
(2,721
|
)
|
|
717
|
|
|||||
Noncontrolling interests
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|||||
Total equity
|
697
|
|
|
2,068
|
|
|
717
|
|
|
(2,721
|
)
|
|
761
|
|
|||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
4,033
|
|
|
$
|
24,163
|
|
|
$
|
5,262
|
|
|
$
|
(28,455
|
)
|
|
$
|
5,003
|
|
|
December 31, 2017
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
7
|
|
|
$
|
308
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
315
|
|
Restricted cash
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Receivables, net
|
402
|
|
|
1,567
|
|
|
—
|
|
|
(648
|
)
|
|
1,321
|
|
|||||
Inventories
|
383
|
|
|
486
|
|
|
—
|
|
|
—
|
|
|
869
|
|
|||||
Prepayments and other
|
99
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
291
|
|
|||||
Total current assets
|
891
|
|
|
2,556
|
|
|
—
|
|
|
(648
|
)
|
|
2,799
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in affiliated companies
|
1,389
|
|
|
—
|
|
|
1,258
|
|
|
(2,647
|
)
|
|
—
|
|
|||||
Notes and advances receivable from affiliates
|
791
|
|
|
19,119
|
|
|
3,967
|
|
|
(23,877
|
)
|
|
—
|
|
|||||
Long-term receivables, net
|
8
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Goodwill
|
22
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|||||
Intangibles, net
|
5
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Deferred income taxes
|
161
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
204
|
|
|||||
Other
|
66
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|||||
|
2,442
|
|
|
19,285
|
|
|
5,225
|
|
|
(26,524
|
)
|
|
428
|
|
|||||
Plant, property, and equipment, at cost
|
1,478
|
|
|
2,530
|
|
|
—
|
|
|
—
|
|
|
4,008
|
|
|||||
Less — Accumulated depreciation and amortization
|
(934
|
)
|
|
(1,459
|
)
|
|
—
|
|
|
—
|
|
|
(2,393
|
)
|
|||||
|
544
|
|
|
1,071
|
|
|
—
|
|
|
—
|
|
|
1,615
|
|
|||||
Total assets
|
$
|
3,877
|
|
|
$
|
22,912
|
|
|
$
|
5,225
|
|
|
$
|
(27,172
|
)
|
|
$
|
4,842
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt (including current maturities of long-term debt)
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt — non-affiliated
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83
|
|
Short-term debt — affiliated
|
408
|
|
|
148
|
|
|
—
|
|
|
(556
|
)
|
|
—
|
|
|||||
Accounts payable
|
562
|
|
|
1,232
|
|
|
—
|
|
|
(89
|
)
|
|
1,705
|
|
|||||
Accrued taxes
|
8
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Other
|
203
|
|
|
221
|
|
|
12
|
|
|
(3
|
)
|
|
433
|
|
|||||
Total current liabilities
|
1,181
|
|
|
1,721
|
|
|
12
|
|
|
(648
|
)
|
|
2,266
|
|
|||||
Long-term debt — non-affiliated
|
632
|
|
|
12
|
|
|
714
|
|
|
—
|
|
|
1,358
|
|
|||||
Long-term debt — affiliated
|
1,093
|
|
|
18,981
|
|
|
3,803
|
|
|
(23,877
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
Pension and postretirement benefits and other liabilities
|
296
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
423
|
|
|||||
Total liabilities
|
3,202
|
|
|
20,852
|
|
|
4,529
|
|
|
(24,525
|
)
|
|
4,058
|
|
|||||
Redeemable noncontrolling interests
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Tenneco Inc. shareholders’ equity
|
675
|
|
|
1,972
|
|
|
696
|
|
|
(2,647
|
)
|
|
696
|
|
|||||
Noncontrolling interests
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
Total equity
|
675
|
|
|
2,018
|
|
|
696
|
|
|
(2,647
|
)
|
|
742
|
|
|||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
3,877
|
|
|
$
|
22,912
|
|
|
$
|
5,225
|
|
|
$
|
(27,172
|
)
|
|
$
|
4,842
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
106
|
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
78
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Cash payments for plant, property, and equipment
|
(33
|
)
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
|||||
Cash payments for software related intangible assets
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Proceeds from deferred purchase price of factored receivables
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Net cash used by investing activities
|
(34
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common shares
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Cash dividends
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Retirement of long-term debt - net
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Debt issuance cost for long-term debt
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Net (decrease) increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
(43
|
)
|
|
15
|
|
|
(1
|
)
|
|
—
|
|
|
(29
|
)
|
|||||
Net increase in short-term borrowings secured by account receivables
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Intercompany dividend payments and net (decrease) increase in intercompany obligations
|
(35
|
)
|
|
13
|
|
|
13
|
|
|
9
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
Net cash (used) provided by financing activities
|
(74
|
)
|
|
(5
|
)
|
|
1
|
|
|
9
|
|
|
(69
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|||||
(Decrease) increase in cash and cash equivalents and restricted cash
|
(2
|
)
|
|
(52
|
)
|
|
1
|
|
|
—
|
|
|
(53
|
)
|
|||||
Cash, cash equivalents and restricted cash, April 1
|
5
|
|
|
286
|
|
|
(1
|
)
|
|
—
|
|
|
290
|
|
|||||
Cash, cash equivalents and restricted cash, June 30 (Note)
|
$
|
3
|
|
|
$
|
234
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
237
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
104
|
|
|
$
|
2
|
|
|
$
|
(7
|
)
|
|
$
|
(7
|
)
|
|
$
|
92
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Proceeds from sale of equity interest
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Cash payments for plant, property, and equipment
|
(39
|
)
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|||||
Cash payments for software related intangible assets
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Proceeds from deferred purchase price of factored receivables
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
Other
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash used by investing activities
|
(46
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|||||
Retirement of long-term debt - net
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Issuance of long-term debt - net
|
400
|
|
|
—
|
|
|
(264
|
)
|
|
—
|
|
|
136
|
|
|||||
Debt issuance cost for long-term debt
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
369
|
|
|
(6
|
)
|
|
(420
|
)
|
|
—
|
|
|
(57
|
)
|
|||||
Intercompany dividend payments and net (decrease) increase in intercompany obligations
|
(821
|
)
|
|
66
|
|
|
748
|
|
|
7
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
Net cash (used) provided by financing activities
|
(60
|
)
|
|
13
|
|
|
7
|
|
|
7
|
|
|
(33
|
)
|
|||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Decrease in cash, cash equivalents and restricted cash
|
(2
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Cash, cash equivalents and restricted cash, April 1
|
6
|
|
|
338
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|||||
Cash, cash equivalents and restricted cash, June 30 (Note)
|
$
|
4
|
|
|
$
|
331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
335
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
79
|
|
|
$
|
13
|
|
|
$
|
(5
|
)
|
|
$
|
(9
|
)
|
|
$
|
78
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
1
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Cash payments for plant, property, and equipment
|
(71
|
)
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
(164
|
)
|
|||||
Cash payments for software related intangible assets
|
(6
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Proceeds from deferred purchase price of factored receivables
|
—
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Net cash used by investing activities
|
(74
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(101
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Cash dividends
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
|||||
Retirement of long-term debt - net
|
(9
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||
Debt issuance cost for long-term debt
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
54
|
|
|
(20
|
)
|
|
14
|
|
|
—
|
|
|
48
|
|
|||||
Net decrease in short-term borrowings secured by accounts receivables
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|||||
Intercompany dividend payments and net (decrease) increase in intercompany obligations
|
(32
|
)
|
|
6
|
|
|
17
|
|
|
9
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
Net cash (used) provided by financing activities
|
(9
|
)
|
|
(52
|
)
|
|
5
|
|
|
9
|
|
|
(47
|
)
|
|||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Decrease in cash, cash equivalents and restricted cash
|
(4
|
)
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
(81
|
)
|
|||||
Cash, cash equivalents and restricted cash, January 1
|
7
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|||||
Cash, cash equivalents and restricted cash, June 30 (Note)
|
$
|
3
|
|
|
$
|
234
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
237
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
63
|
|
|
$
|
26
|
|
|
$
|
(21
|
)
|
|
$
|
(7
|
)
|
|
$
|
61
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Proceeds from sale of equity interest
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Cash payments for plant, property, and equipment
|
(81
|
)
|
|
(112
|
)
|
|
—
|
|
|
—
|
|
|
(193
|
)
|
|||||
Cash payments for software related intangible assets
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|||||
Proceeds from deferred purchase price of factored receivables
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|||||
Other
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Net cash used by investing activities
|
(88
|
)
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Repurchase of common shares
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Cash dividends
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Retirement of long-term debt - net
|
—
|
|
|
(2
|
)
|
|
(6
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Issuance of long-term debt - net
|
400
|
|
|
—
|
|
|
(264
|
)
|
|
—
|
|
|
136
|
|
|||||
Debt issuance cost for long-term debt
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
369
|
|
|
14
|
|
|
(323
|
)
|
|
—
|
|
|
60
|
|
|||||
Net increase in short-term borrowings secured by accounts receivables
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||
Intercompany dividend payments and net (decrease) increase in intercompany obligations
|
(741
|
)
|
|
51
|
|
|
683
|
|
|
7
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
Net cash provided by financing activities
|
20
|
|
|
21
|
|
|
21
|
|
|
7
|
|
|
69
|
|
|||||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Decrease in cash, cash equivalents and restricted cash
|
(5
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|||||
Cash, cash equivalents and restricted cash, January 1
|
9
|
|
|
340
|
|
|
—
|
|
|
—
|
|
|
349
|
|
|||||
Cash, cash equivalents and restricted cash, June 30 (Note)
|
$
|
4
|
|
|
$
|
331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
335
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
(15)
|
Revenue
|
|
Balance at December 31, 2017
|
|
Adjustments Due to ASU 2014-09
|
|
Adjustments Due to ASU 2016-16 (a)
|
|
Balance at January 1, 2018
|
||||||||
|
(Millions)
|
||||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Inventory
|
$
|
869
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
864
|
|
Prepayments and other (including contract assets)
|
291
|
|
|
6
|
|
|
—
|
|
|
297
|
|
||||
Equity
|
|
|
|
|
|
|
|
||||||||
Retained earnings (accumulated deficit)
|
(946
|
)
|
|
1
|
|
|
(2
|
)
|
|
(947
|
)
|
|
Three Months Ended June 30, 2018
|
||||||||||
|
|
|
Substrate
|
|
Value-add
|
||||||
|
Total Revenues
|
|
Sales
|
|
Revenues
|
||||||
|
(Millions)
|
||||||||||
Clean Air
|
$
|
1,694
|
|
|
$
|
621
|
|
|
$
|
1,073
|
|
Ride Performance
|
506
|
|
|
—
|
|
|
506
|
|
|||
Aftermarket
|
337
|
|
|
—
|
|
|
337
|
|
|||
Total Tenneco Inc.
|
$
|
2,537
|
|
|
$
|
621
|
|
|
$
|
1,916
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
|
|
Substrate
|
|
Value-add
|
||||||
|
Total Revenues
|
|
Sales
|
|
Revenues
|
||||||
|
(Millions)
|
||||||||||
Clean Air
|
$
|
3,450
|
|
|
$
|
1,273
|
|
|
$
|
2,177
|
|
Ride Performance
|
1,019
|
|
|
—
|
|
|
1,019
|
|
|||
Aftermarket
|
642
|
|
|
—
|
|
|
642
|
|
|||
Total Tenneco Inc.
|
$
|
5,111
|
|
|
$
|
1,273
|
|
|
$
|
3,838
|
|
|
For the Three Months Ended June 30, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of ASC Topic 606
|
|
Effect of Change Higher/(Lower)
|
||||||
|
|
|
(Millions)
|
|
|
||||||
Income Statement
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
||||||
Net sales and operating revenues
|
$
|
2,537
|
|
|
$
|
2,537
|
|
|
$
|
—
|
|
Cost and expenses
|
|
|
|
|
|
||||||
Cost of sales (exclusive of depreciation and amortization)
|
2,159
|
|
|
2,159
|
|
|
—
|
|
|
For the Six Months Ended June 30, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of ASC Topic 606
|
|
Effect of Change Higher/(Lower)
|
||||||
|
|
|
(Millions)
|
|
|
||||||
Income Statement
|
|
|
|
|
|
||||||
Revenues
|
|
|
|
|
|
||||||
Net sales and operating revenues
|
$
|
5,111
|
|
|
$
|
5,109
|
|
|
$
|
2
|
|
Cost and expenses
|
|
|
|
|
|
||||||
Cost of sales (exclusive of depreciation and amortization)
|
4,357
|
|
|
4,355
|
|
|
2
|
|
|
June 30, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of ASC Topic 606
|
|
Effect of Change Higher/(Lower)
|
||||||
|
|
|
(Millions)
|
|
|
||||||
Balance Sheet
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
||||||
Inventory
|
$
|
898
|
|
|
$
|
906
|
|
|
$
|
(8
|
)
|
Prepayments and other (including contract assets)
|
348
|
|
|
328
|
|
|
20
|
|
|||
Liabilities
|
|
|
|
|
|
||||||
Accrued Liabilities
|
326
|
|
|
315
|
|
|
11
|
|
|||
Equity
|
|
|
|
|
|
||||||
Retained earnings (accumulated deficit)
|
(864
|
)
|
|
(865
|
)
|
|
1
|
|
|
For the Three Months Ended June 30, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of ASC Topic 606
|
|
Effect of Change Higher/(Lower)
|
||||||
|
|
|
(Millions)
|
|
|
||||||
Cash Flows
|
|
|
|
|
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Increase in inventories
|
$
|
19
|
|
|
$
|
27
|
|
|
$
|
(8
|
)
|
Increase in prepayments and other current assets
|
25
|
|
|
5
|
|
|
20
|
|
|||
Increase in other current liabilities
|
33
|
|
|
22
|
|
|
11
|
|
|
For the Six Months Ended June 30, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of ASC Topic 606
|
|
Effect of Change Higher/(Lower)
|
||||||
|
|
|
(Millions)
|
|
|
||||||
Cash Flows
|
|
|
|
|
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Increase in inventories
|
$
|
53
|
|
|
$
|
61
|
|
|
$
|
(8
|
)
|
Increase in prepayments and other current assets
|
70
|
|
|
50
|
|
|
20
|
|
|||
Increase in other current liabilities
|
30
|
|
|
19
|
|
|
11
|
|
Quarter ended June 30, 2017
|
$
|
1,949
|
|
Volume and mix
|
176
|
|
|
Currency exchange rates
|
31
|
|
|
Restructuring and other charges
|
11
|
|
|
Other costs
|
(8
|
)
|
|
Quarter ended June 30, 2018
|
$
|
2,159
|
|
Six months ended June 30, 2017
|
$
|
3,878
|
|
Volume and mix
|
321
|
|
|
Material
|
1
|
|
|
Currency exchange rates
|
147
|
|
|
Restructuring and other charges
|
9
|
|
|
Other costs
|
1
|
|
|
Six months ended June 30, 2018
|
$
|
4,357
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air
|
$
|
1,694
|
|
|
$
|
621
|
|
|
$
|
1,073
|
|
|
$
|
23
|
|
|
$
|
1,050
|
|
Ride Performance
|
506
|
|
|
—
|
|
|
506
|
|
|
7
|
|
|
499
|
|
|||||
Aftermarket
|
337
|
|
|
—
|
|
|
337
|
|
|
(3
|
)
|
|
340
|
|
|||||
Total Tenneco Inc.
|
$
|
2,537
|
|
|
$
|
621
|
|
|
$
|
1,916
|
|
|
$
|
27
|
|
|
$
|
1,889
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air
|
$
|
1,539
|
|
|
$
|
541
|
|
|
$
|
998
|
|
|
$
|
—
|
|
|
$
|
998
|
|
Ride Performance
|
442
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
442
|
|
|||||
Aftermarket
|
336
|
|
|
—
|
|
|
336
|
|
|
—
|
|
|
336
|
|
|||||
Total Tenneco Inc.
|
$
|
2,317
|
|
|
$
|
541
|
|
|
$
|
1,776
|
|
|
$
|
—
|
|
|
$
|
1,776
|
|
|
Three Months Ended June 30, 2018
Versus Three Months Ended June 30, 2017 Dollar and Percent Increase (Decrease) |
||||||||||||
|
Revenues
|
|
Percent
|
|
Value-add Revenues excluding Currency
|
|
Percent
|
||||||
|
(Millions Except Percent Amounts)
|
||||||||||||
Clean Air
|
$
|
155
|
|
|
10
|
%
|
|
$
|
52
|
|
|
5
|
%
|
Ride Performance
|
64
|
|
|
14
|
%
|
|
57
|
|
|
13
|
%
|
||
Aftermarket
|
1
|
|
|
—
|
%
|
|
4
|
|
|
1
|
%
|
||
Total Tenneco Inc.
|
$
|
220
|
|
|
9
|
%
|
|
$
|
113
|
|
|
6
|
%
|
|
Three Months Ended June 30,
|
||||||||||
|
2018
|
|
2017
|
|
Increase
(Decrease) |
|
% Increase
(Decrease) |
||||
|
(Number of Vehicles in Thousands)
|
||||||||||
North America
|
4,345
|
|
|
4,457
|
|
|
(112
|
)
|
|
(3
|
)%
|
Europe
|
5,974
|
|
|
5,739
|
|
|
235
|
|
|
4
|
%
|
South America
|
881
|
|
|
799
|
|
|
82
|
|
|
10
|
%
|
China
|
6,571
|
|
|
6,045
|
|
|
526
|
|
|
9
|
%
|
India
|
1,187
|
|
|
1,041
|
|
|
146
|
|
|
14
|
%
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air
|
$
|
3,450
|
|
|
$
|
1,273
|
|
|
$
|
2,177
|
|
|
$
|
87
|
|
|
$
|
2,090
|
|
Ride Performance
|
1,019
|
|
|
—
|
|
|
1,019
|
|
|
38
|
|
|
981
|
|
|||||
Aftermarket
|
642
|
|
|
—
|
|
|
642
|
|
|
2
|
|
|
640
|
|
|||||
Total Tenneco Inc.
|
$
|
5,111
|
|
|
$
|
1,273
|
|
|
$
|
3,838
|
|
|
$
|
127
|
|
|
$
|
3,711
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air
|
$
|
3,094
|
|
|
$
|
1,088
|
|
|
$
|
2,006
|
|
|
$
|
—
|
|
|
$
|
2,006
|
|
Ride Performance
|
870
|
|
|
—
|
|
|
870
|
|
|
—
|
|
|
870
|
|
|||||
Aftermarket
|
645
|
|
|
—
|
|
|
645
|
|
|
—
|
|
|
645
|
|
|||||
Total Tenneco Inc.
|
$
|
4,609
|
|
|
$
|
1,088
|
|
|
$
|
3,521
|
|
|
$
|
—
|
|
|
$
|
3,521
|
|
|
Six Months Ended June 30, 2018
Versus Six Months Ended June 30, 2017 Dollar and Percent Increase (Decrease) |
||||||||||||
|
Revenues
|
|
Percent
|
|
Value-add Revenues excluding Currency
|
|
Percent
|
||||||
|
(Millions Except Percent Amounts)
|
||||||||||||
Clean Air
|
$
|
356
|
|
|
12
|
%
|
|
$
|
84
|
|
|
4
|
%
|
Ride Performance
|
149
|
|
|
17
|
%
|
|
111
|
|
|
13
|
%
|
||
Aftermarket
|
(3
|
)
|
|
—
|
%
|
|
(5
|
)
|
|
(1
|
)%
|
||
Total Tenneco Inc.
|
$
|
502
|
|
|
11
|
%
|
|
$
|
190
|
|
|
5
|
%
|
|
Six Months Ended June 30,
|
||||||||||
|
2018
|
|
2017
|
|
Increase
(Decrease) |
|
% Increase
(Decrease) |
||||
|
(Number of Vehicles in Thousands)
|
||||||||||
North America
|
8,726
|
|
|
8,985
|
|
|
(259
|
)
|
|
(3
|
)%
|
Europe
|
11,852
|
|
|
11,600
|
|
|
252
|
|
|
2
|
%
|
South America
|
1,701
|
|
|
1,537
|
|
|
164
|
|
|
11
|
%
|
China
|
13,266
|
|
|
12,884
|
|
|
382
|
|
|
3
|
%
|
India
|
2,433
|
|
|
2,177
|
|
|
256
|
|
|
12
|
%
|
|
Three Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
|
(Millions)
|
||||||||||
Clean Air
|
$
|
105
|
|
|
$
|
106
|
|
|
$
|
(1
|
)
|
Ride Performance
|
5
|
|
|
18
|
|
|
(13
|
)
|
|||
Aftermarket
|
50
|
|
|
54
|
|
|
(4
|
)
|
|||
Other
|
(47
|
)
|
|
(151
|
)
|
|
104
|
|
|||
Total Tenneco Inc.
|
$
|
113
|
|
|
$
|
27
|
|
|
$
|
86
|
|
|
Three Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Clean Air:
|
|
|
|
||||
Restructuring and related expenses
|
$
|
11
|
|
|
$
|
12
|
|
Pre-closing structural cost reductions (1)
|
6
|
|
|
—
|
|
||
Ride Performance
|
|
|
|
||||
Restructuring and related expenses
|
18
|
|
|
2
|
|
||
Warranty settlement (2)
|
—
|
|
|
7
|
|
||
Aftermarket:
|
|
|
|
||||
Restructuring and related expenses
|
2
|
|
|
1
|
|
||
Pre-closing structural cost reductions (1)
|
1
|
|
|
—
|
|
||
Other:
|
|
|
|
||||
Restructuring and related expenses
|
—
|
|
|
2
|
|
||
Antitrust settlement accrual (3)
|
—
|
|
|
132
|
|
||
Gain on sale of unconsolidated JV
|
—
|
|
|
(5
|
)
|
||
Acquisition advisory costs (4)
|
18
|
|
|
—
|
|
||
Pre-closing structural cost reductions (1)
|
2
|
|
|
—
|
|
||
Environmental charge (5)
|
4
|
|
|
—
|
|
||
Total Tenneco Inc.
|
$
|
62
|
|
|
$
|
151
|
|
|
|||||
|
Three Months Ended June 30,
|
||||
|
2018
|
|
2017
|
||
Clean Air
|
6
|
%
|
|
7
|
%
|
Ride Performance
|
1
|
%
|
|
4
|
%
|
Aftermarket
|
15
|
%
|
|
16
|
%
|
Total Tenneco Inc.
|
4
|
%
|
|
1
|
%
|
|
Six Months Ended June 30,
|
|
Change
|
||||||||
|
2018
|
|
2017
|
|
|||||||
|
(Millions)
|
||||||||||
Clean Air
|
$
|
224
|
|
|
$
|
200
|
|
|
$
|
24
|
|
Ride Performance
|
13
|
|
|
45
|
|
|
(32
|
)
|
|||
Aftermarket
|
85
|
|
|
96
|
|
|
(11
|
)
|
|||
Other
|
(92
|
)
|
|
(193
|
)
|
|
101
|
|
|||
Total Tenneco Inc.
|
$
|
230
|
|
|
$
|
148
|
|
|
$
|
82
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Clean Air:
|
|
|
|
|
|
||
Restructuring and related expenses
|
$
|
12
|
|
|
$
|
21
|
|
Pre-closing structural cost reductions (1)
|
6
|
|
|
—
|
|
||
Ride Performance:
|
|
|
|
|
|
||
Restructuring and related expenses
|
27
|
|
|
5
|
|
||
Warranty settlement (2)
|
—
|
|
|
7
|
|
||
Warranty charge (3)
|
5
|
|
|
—
|
|
||
Aftermarket:
|
|
|
|
|
|
||
Restructuring and related expenses
|
4
|
|
|
3
|
|
||
Pre-closing structural cost reductions (1)
|
1
|
|
|
—
|
|
||
Other:
|
|
|
|
|
|
||
Restructuring and related expenses
|
—
|
|
|
3
|
|
||
Pension charges / Stock vesting (4)
|
—
|
|
|
11
|
|
||
Antitrust settlement accrual (5)
|
—
|
|
|
132
|
|
||
Gain on sale of unconsolidated JV
|
—
|
|
|
(5
|
)
|
||
Acquisition advisory costs (6)
|
31
|
|
|
—
|
|
||
Pre-closing structural cost reductions (1)
|
2
|
|
|
—
|
|
||
Environmental charge (7)
|
4
|
|
|
—
|
|
||
Total Tenneco Inc.
|
$
|
92
|
|
|
$
|
177
|
|
|
Six Months Ended June 30,
|
||||
|
2018
|
|
2017
|
||
Clean Air
|
6
|
%
|
|
6
|
%
|
Ride Performance
|
1
|
%
|
|
5
|
%
|
Aftermarket
|
13
|
%
|
|
15
|
%
|
Total Tenneco Inc.
|
5
|
%
|
|
3
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Millions)
|
||||||||||||||
Cost of sales
|
$
|
23
|
|
|
$
|
12
|
|
|
$
|
32
|
|
|
$
|
23
|
|
Engineering, research, and development
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Selling, general and administrative
|
8
|
|
|
4
|
|
|
10
|
|
|
7
|
|
||||
Depreciation and amortization of other intangibles
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||
|
$
|
31
|
|
|
$
|
17
|
|
|
$
|
43
|
|
|
$
|
32
|
|
|
December 31,
2017 Restructuring Reserve |
|
2018
Expenses |
|
2018
Cash Payments |
|
Impact of Exchange Rates
|
|
June 30, 2018
Restructuring Reserve |
||||||||||
|
(Millions)
|
||||||||||||||||||
Employee severance, termination benefits and other related costs
|
$
|
25
|
|
|
$
|
41
|
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
35
|
|
|
Three Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Cash provided (used) by:
|
|
|
|
||||
Operating activities
|
$
|
78
|
|
|
$
|
92
|
|
Investing activities
|
(48
|
)
|
|
(61
|
)
|
||
Financing activities
|
(69
|
)
|
|
(33
|
)
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Millions)
|
||||||
Cash provided (used) by:
|
|
|
|
||||
Operating activities
|
$
|
78
|
|
|
$
|
61
|
|
Investing activities
|
(101
|
)
|
|
(145
|
)
|
||
Financing activities
|
(47
|
)
|
|
69
|
|
|
June 30,
2018 |
|
December 31, 2017
|
|
% Change
|
|||||
|
(Millions)
|
|
|
|||||||
Short-term debt and maturities classified as current
|
$
|
78
|
|
|
$
|
83
|
|
|
(6
|
)%
|
Long-term debt
|
1,381
|
|
|
1,358
|
|
|
2
|
|
||
Total debt
|
1,459
|
|
|
1,441
|
|
|
1
|
|
||
Total redeemable noncontrolling interests
|
38
|
|
|
42
|
|
|
(10
|
)
|
||
Total other noncontrolling interests
|
44
|
|
|
46
|
|
|
(4
|
)
|
||
Tenneco Inc. shareholders’ equity
|
717
|
|
|
696
|
|
|
3
|
|
||
Total equity
|
761
|
|
|
742
|
|
|
3
|
|
||
Total capitalization
|
$
|
2,258
|
|
|
$
|
2,225
|
|
|
1
|
%
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Principal
|
|
Carrying Amount
(1)
|
|
Principal
|
|
Carrying Amount
(1)
|
||||||||
|
(Millions)
|
||||||||||||||
Tenneco Inc. —
|
|
|
|
|
|
|
|
||||||||
Revolver borrowings due 2022
|
$
|
278
|
|
|
$
|
278
|
|
|
$
|
244
|
|
|
$
|
244
|
|
Senior Tranche A Term Loan due 2022
|
380
|
|
|
378
|
|
|
390
|
|
|
388
|
|
||||
5 3/8% Senior Notes due 2024
|
225
|
|
|
222
|
|
|
225
|
|
|
222
|
|
||||
5% Senior Notes due 2026
|
500
|
|
|
493
|
|
|
500
|
|
|
492
|
|
||||
Other subsidiaries —
|
|
|
|
|
|
|
|
||||||||
Other long-term debt due in 2020
|
6
|
|
|
6
|
|
|
5
|
|
|
5
|
|
||||
Notes due 2018 through 2028
|
10
|
|
|
8
|
|
|
12
|
|
|
10
|
|
||||
|
1,399
|
|
|
1,385
|
|
|
1,376
|
|
|
1,361
|
|
||||
Less — maturities classified as current
|
4
|
|
|
4
|
|
|
3
|
|
|
3
|
|
||||
Total long-term debt
|
$
|
1,395
|
|
|
$
|
1,381
|
|
|
$
|
1,373
|
|
|
$
|
1,358
|
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
(Millions)
|
||||||
Maturities classified as current
|
$
|
4
|
|
|
$
|
3
|
|
Short-term borrowings
|
74
|
|
|
80
|
|
||
Total short-term debt
|
$
|
78
|
|
|
$
|
83
|
|
|
Quarter Ended
|
||||
|
June 30, 2018
|
||||
|
Required
|
|
Actual
|
||
Leverage Ratio (maximum)
|
3.50
|
|
|
1.79
|
|
Interest Coverage Ratio (minimum)
|
2.75
|
|
|
10.84
|
|
Pro forma Consolidated Leverage Ratio
|
Aggregate Senior
Note Maximum Amount |
||
|
(Millions)
|
||
Greater than or equal to 3.25x
|
$
|
20
|
|
Greater than or equal to 3.0x
|
$
|
100
|
|
Greater than or equal to 2.5x
|
$
|
225
|
|
Less than 2.5x
|
no limit
|
|
|
|
June 30, 2018
|
|
|
|
Notional Amount
in Foreign Currency
|
|
|
|
(Millions)
|
|
Canadian dollars
|
—Sell
|
(2
|
)
|
Chinese yuan
|
—Purchase
|
3
|
|
U.S. dollars
|
—Purchase
|
2
|
|
•
|
diversion of management’s attention to integration matters;
|
•
|
difficulties in achieving anticipated cost savings, synergies, business opportunities and growth prospects from the Transaction;
|
•
|
difficulties in the integration of operations and systems;
|
•
|
difficulties in conforming standards, controls, procedures and accounting and other policies, business cultures and compensation structures;
|
•
|
difficulties in the assimilation of employees;
|
•
|
difficulties in managing the expanded operations of a significantly larger and more complex company;
|
•
|
challenges in attracting and retaining key personnel;
|
•
|
the impact of potential liabilities Tenneco may be inheriting from Federal-Mogul; and
|
•
|
coordinating a geographically dispersed organization.
|
Period
|
Total Number of
Shares Purchased (1) |
|
Average
Price Paid |
|
Maximum Value of
Shares That May Yet be Purchased Under These Plans or Programs (Millions) |
|||||
April 2018
|
—
|
|
|
$
|
—
|
|
|
$
|
231
|
|
May 2018
|
1,743
|
|
|
47.14
|
|
|
231
|
|
||
June 2018
|
2,148
|
|
|
44.69
|
|
|
231
|
|
||
Total
|
3,891
|
|
|
$
|
45.79
|
|
|
$
|
231
|
|
(1)
|
Includes shares withheld upon vesting of restricted stock in the amount of 1,743 in May 2018 and 2,148 in June 2018.
|
Exhibit
Number
|
|
Description
|
|
|
|
—
|
Membership Interest Purchase Agreement, dated as of April 10, 2018 by and among the Company, Federal-Mogul LLC, American Entertainment Properties Corp. and Icahn Enterprises L.P. (incorporated herein by reference to Exhibit 2.1 of the registrant’s Current Report on Form 8-K filed April 10, 2018. File No. 1-12387).
|
|
|
|
|
*
12
|
—
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
*
15.1
|
—
|
Letter of PricewaterhouseCoopers LLP regarding interim financial information.
|
|
|
|
*
31.1
|
—
|
Certification of Brian J. Kesseler under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
*
31.2
|
—
|
Certification of Jason M. Hollar under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
*
32.1
|
—
|
Certification of Brian J. Kesseler and Jason M. Hollar under Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
*101.INS
|
—
|
XBRL Instance Document.
|
|
|
|
*101.SCH
|
—
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
*101.CAL
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
*101.DEF
|
—
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
*101.LAB
|
—
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
*101.PRE
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith.
|
TENNECO INC.
|
|
|
|
By:
|
/s/ AUDREY A. SMITH
|
|
Audrey A. Smith
|
|
Vice President and Controller
|
|
(Principal Accounting Officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Ms. Sutherland has served as Executive Vice President, Government Affairs, General Counsel and Corporate Secretary at Phillips 66 Company (Phillips 66), a Fortune 50 diversified energy manufacturing and logistics company, since February 2022. Prior to her role at Phillips 66, Ms. Sutherland was Executive Vice President and Chief Legal Officer for Norfolk Southern Corporation (Norfolk Southern), a rail transportation and logistics company, from March 2020 through January 2022, having previously served in other executive roles with Norfolk Southern from June 2018 to March 2020. She also previously served in senior legal counsel roles for Altria Group, Inc. and Digex, Inc. | |||
Susan N. Story INDEPENDENT LEAD DIRECTOR Age: 65 Director Since: 2017 Retired President and CEO, American Water Works Company, Inc. | |||
In determining the independence of Mr. Jibson, the NGS Committee considered the employment of Mr. Jibson’s adult, financially independent son by Dominion Energy. During part of 2024, Mr. Jibson’s son was employed by Dominion Energy Wexpro Services Company, a former subsidiary of Dominion Energy that was sold to Enbridge in June 2024, as a manager of joint operations and regulatory affairs. Mr. Jibson’s son was not an executive officer of Dominion Energy or any of its subsidiaries and received compensation in accordance with the company’s compensation practices applicable to employees of equivalent qualifications, experiences and responsibilities. The NGS Committee recommended to the Board and the Board determined that the employment of Mr. Jibson’s son did not affect Mr. Jibson’s independence. | |||
Robert H. Spilman, Jr. INDEPENDENT Age: 68 Director Since: 2009 Chairman, President and CEO, Bassett Furniture Industries, Inc. | |||
Paul M. Dabbar INDEPENDENT Age: 57 Director Since: 2023 Co-founder, Bohr Quantum Technology Corp. | |||
Pamela J. Royal, M.D. INDEPENDENT Age: 62 Director Since: 2013 President, Royal Dermatology and Aesthetic Skin Care, Inc. | |||
Based on the NYSE’s and Dominion Energy’s independence standards, and considering all relevant facts and circumstances, the Board affirmatively determined that the following director nominees are independent: Messrs. Bennett, Dabbar, Hagood, Kington, Rigby and Spilman, Dr. Royal and Mses. Lovejoy, Story and Sutherland. Although they retired from the Board at last year’s Annual Meeting, the Board also affirmatively determined that Messrs. Ronald W. Jibson and Michael E. Szymanczyk were independent during their service as directors from January to May 2024. | |||
Mr. Hagood chairs the board of directors of the Lamb Institute, a non-profit organization based in Charleston, South Carolina. The Lamb Institute funds several ministries in Honduras providing funding, volunteer resources and support to schools, an orphanage and various other programs. He also serves on the board of Bravo Services, LLC, a consortium of 12 North American flooring companies representing over $2 billion in annual sales of floor covering and related supply products. | |||
Mark J. Kington INDEPENDENT Age: 65 Director Since: 2005 Managing Director, Kington Management, LP | |||
Ms. Lovejoy is a recognized thought leader in the fields of technology, risk management, resilience, compliance and governance. Ms. Lovejoy’s cybersecurity experience is invaluable to a utility company such as Dominion Energy, which must maintain the security of the electric grid and prevent interruptions in service due to cyberattacks. | |||
Mr. Rigby served as Chairman, President and Chief Executive Officer of Pepco Holdings, Inc. (PHI), an energy delivery company serving the mid-Atlantic region, from May 2009 to March 2016. Prior to that, Mr. Rigby held other executive officer positions with PHI and its subsidiaries, including chief operating officer and chief financial officer. He served as non-executive Chairman of South Jersey Industries, Inc. (South Jersey), an energy delivery company headquartered in Folsom, New Jersey, from 2020 to February 2025, including through South Jersey’s private acquisition in 2023. | |||
James A. Bennett INDEPENDENT Age: 63 Director Since: 2019 Executive Director of External Affairs, First-Citizens Bank & Trust Company |
Name and Principal Position |
Year |
Salary |
|
Bonus |
|
Stock
|
|
Non-Equity
|
|
Change in
|
|
All Other
|
|
SEC Total |
|
|
Realized Pay
|
|
||||||||
Robert M. Blue |
2024 |
$ |
1,225,000 |
|
|
|
$ |
8,526,987 |
|
$ |
2,189,990 |
|
$ |
795,805 |
|
$ |
166,843 |
|
$ |
12,904,625 |
|
|
$ |
6,510,494 |
|
|
Chair, President and |
2023 |
|
1,225,000 |
|
|
|
|
2,084,904 |
|
|
1,528,800 |
|
|
1,250,219 |
|
|
189,912 |
|
|
6,278,835 |
|
|
|
5,988,985 |
|
|
Chief Executive Officer |
2022 |
|
1,225,000 |
|
|
|
|
3,320,036 |
|
|
2,023,514 |
|
|
10,107 |
|
|
216,328 |
|
|
6,794,985 |
|
|
|
4,426,266 |
|
|
Steven D. Ridge |
2024 |
|
747,500 |
|
|
|
|
1,713,871 |
|
|
740,025 |
|
|
3,242 |
|
|
102,508 |
|
|
3,307,146 |
|
|
|
1,810,170 |
|
|
Executive Vice President |
2023 |
|
641,667 |
|
|
|
|
1,033,958 |
|
|
436,800 |
|
|
3,621 |
|
|
204,776 |
|
|
2,320,822 |
|
|
|
1,485,595 |
|
|
and Chief Financial Officer |
2022 |
|
331,137 |
|
$ |
375,000 |
|
|
610,096 |
|
|
423,696 |
|
|
5,604 |
|
|
125,915 |
|
|
1,871,448 |
|
|
|
1,440,049 |
|
Diane Leopold |
2024 |
|
958,604 |
|
|
|
|
2,285,158 |
|
|
1,059,623 |
|
|
610,562 |
|
|
93,324 |
|
|
5,007,271 |
|
|
|
3,378,387 |
|
|
Executive Vice President, |
2023 |
|
928,066 |
|
|
|
|
800,038 |
|
|
1,318,394 |
|
|
1,184,938 |
|
|
101,700 |
|
|
4,333,136 |
|
|
|
4,833,231 |
|
|
Chief Operating Officer and |
2022 |
|
897,388 |
|
|
|
|
800,070 |
|
|
1,235,731 |
|
|
0 |
|
|
90,276 |
|
|
3,023,464 |
|
|
|
4,054,066 |
|
|
President – Contracted Energy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Carlos M. Brown |
2024 |
|
747,500 |
|
|
|
|
1,713,871 |
|
|
779,625 |
|
|
240,514 |
|
|
54,191 |
|
|
3,535,701 |
|
|
|
2,117,090 |
|
|
President – Dominion Energy |
2023 |
|
641,748 |
|
|
|
|
400,049 |
|
|
436,800 |
|
|
367,930 |
|
|
39,987 |
|
|
1,886,514 |
|
|
|
1,744,832 |
|
|
Services and Executive Vice |
2022 |
|
591,392 |
|
|
|
|
300,016 |
|
|
424,042 |
|
|
0 |
|
|
51,862 |
|
|
1,367,312 |
|
|
|
1,455,017 |
|
|
President, Chief Legal Officer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
and Corporate Secretary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Edward H. Baine |
2024 |
|
576,170 |
|
|
|
|
1,028,311 |
|
|
476,876 |
|
|
344,914 |
|
|
37,143 |
|
|
2,463,414 |
|
|
|
1,599,183 |
|
|
President – Dominion Energy Virginia |
2023 |
|
528,852 |
|
|
|
|
260,011 |
|
|
485,403 |
|
|
600,260 |
|
|
38,583 |
|
|
1,913,109 |
|
|
|
1,810,469 |
|
No Customers Found
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
BLUE ROBERT M | - | 176,240 | 4,017 |
Leopold Diane | - | 88,126 | 3,474 |
Baine Edward H | - | 43,627 | 4,870 |
Brown Carlos M | - | 38,416 | 28 |
Baine Edward H | - | 31,031 | 4,394 |
Ridge Steven D | - | 28,781 | 0 |
STORY SUSAN N | - | 22,162 | 13,346 |
Ridge Steven D | - | 12,673 | 0 |
BENNETT JAMES A | - | 8,970 | 23,281 |
RIGBY JOSEPH M | - | 8,417 | 22,232 |
Sutherland Vanessa Allen | - | 475 | 8,572 |